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<SEC-DOCUMENT>0000950134-05-022496.txt : 20051202
<SEC-HEADER>0000950134-05-022496.hdr.sgml : 20051202
<ACCEPTANCE-DATETIME>20051201202444
ACCESSION NUMBER:		0000950134-05-022496
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		88
CONFORMED PERIOD OF REPORT:	20050102
FILED AS OF DATE:		20051202
DATE AS OF CHANGE:		20051201

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LAKES ENTERTAINMENT INC
		CENTRAL INDEX KEY:			0001071255
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
		IRS NUMBER:				411913991
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24993
		FILM NUMBER:		051238821

	BUSINESS ADDRESS:	
		STREET 1:		130 CHESHIERE LANE
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55305
		BUSINESS PHONE:		6124499092

	MAIL ADDRESS:	
		STREET 1:		130 CHESHIRE LANE
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55305

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LAKES GAMING INC
		DATE OF NAME CHANGE:	19980929
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>c92713e10vk.htm
<DESCRIPTION>FORM 10-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 2pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 3pt;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 4pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt;">
<B>Washington,&nbsp;D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 26%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Form&nbsp;10-K</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 12pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="83%">&nbsp;</TD>
</TR>

<TR style="font-size: 10pt;">
    <TD align="center" nowrap>(Mark One)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <FONT face="wingdings">&#254;
    </FONT></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>ANNUAL REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>For the fiscal year ended January&nbsp;2, 2005</B></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <B>or</B></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B><FONT face="wingdings">&#111;</FONT></B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>TRANSITION REPORT PURSUANT TO SECTION&nbsp;13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934</B></TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <B>For the transition period
    from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to</B></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Commission File No.&nbsp;0-24993</B>
</DIV>

<DIV align="center" style="font-size: 24pt;">
<B>LAKES ENTERTAINMENT, INC.</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Exact name of registrant as specified in its charter)</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Minnesota</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <B>41-1913991</B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <I>(State or other jurisdiction of<BR>
    incorporation or organization)</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    <I>(I.R.S., Employer<BR>
    Identification No.)</I></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>130 Cheshire Lane, Suite&nbsp;101, Minnetonka, Minnesota
55305</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Address of principal executive offices)</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>(952)&nbsp;449-9092</B>
</DIV>

<DIV align="center" style="font-size: 8pt;">
<I>(Registrant&#146;s telephone number, including area code)</I>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Securities registered pursuant to Section&nbsp;12(b) of the
Act:</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>None.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Securities registered pursuant to Section&nbsp;12(g) of the
Act:</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Title of Each Class</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Name of Each Exchange on Which Registered</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common Stock, $0.01&nbsp;par value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    NASDAQ National Market</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule&nbsp;405 of the Securities
Act.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#254;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark if the registrant is not required to file
reports pursuant to Section&nbsp;13 or Section&nbsp;15(d) of the
Act.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#254;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark whether the registrant (1)&nbsp;has filed
all reports required to be filed by Section&nbsp;13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12&nbsp;months (or for such shorter period that the registrant
was required to file such reports) and (2)&nbsp;has been subject
to such filing requirements for the past
90&nbsp;days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#254;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark if disclosure of delinquent filers
pursuant to Item&nbsp;405 of Regulation&nbsp;S-K is not
contained herein, and will not be contained, to the best of the
Registrant&#146;s knowledge, in definitive proxy or information
statements incorporated by reference in Part&nbsp;III of this
Form&nbsp;10-K or any amendment to this
Form&nbsp;10-K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark whether the registrant is an accelerated
filer (as defined in Rule&nbsp;12b-2 of the
Act).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#111;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indicate by check mark whether the registrant is a shell company
(as defined in Rule&nbsp;12b-2 of the
Act).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;<FONT face="wingdings">&#254;
</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of October&nbsp;17, 2005, 22,299,909&nbsp;shares of the
Registrant&#146;s Common Stock were outstanding. Based upon the
last sale price of the Common Stock as reported on the NASDAQ
National Market on July&nbsp;1, 2005 (the last business day of
the Registrant&#146;s most recently completed second quarter),
the aggregate market value of the Common Stock held by
non-affiliates of the Registrant as of such date was
$249.5&nbsp;million. For purposes of these computations,
affiliates of the Registrant are deemed only to be the
Registrant&#146;s executive officers and directors. All share
and per share data for periods prior to May&nbsp;3, 2004 have
been retroactively restated to give effect to a two-for-one
stock split (the &#147;Stock Split&#148;) in the form of a 100%
stock dividend paid on May&nbsp;3, 2004 to shareholders of
record on April&nbsp;26, 2004.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Documents Incorporated by Reference</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 8pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 100%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 4pt;">
<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Private Securities Litigation Reform Act</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Private Securities Litigation Reform Act of 1995 provides a
&#147;safe harbor&#148; for forward-looking statements. Certain
information included in this Annual Report on Form&nbsp;10-K and
other materials filed or to be filed by the Company with the
United States Securities and Exchange Commission
(&#147;SEC&#148;)&nbsp;as well as information included in oral
statements or other written statements made or to be made by the
Company contain statements that are forward-looking, such as
plans for future expansion and other business development
activities as well as other statements regarding capital
spending, financing sources and the effects of regulation
(including gaming and tax regulation) and competition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Such forward looking information involves important risks and
uncertainties that could significantly affect the anticipated
results in the future and, accordingly, actual results may
differ materially from those expressed in any forward-looking
statements made by or on behalf of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These risks and uncertainties include, but are not limited to,
those relating to the inability to complete or possible delays
in completion of Lakes&#146; casino projects, including various
regulatory approvals and numerous other conditions which must be
satisfied before completion of these projects; possible
termination or adverse modification of consultant or management
contracts; Lakes operates in a highly competitive industry;
possible changes in regulations; reliance on continued positive
relationships with Indian tribes and repayment of amounts owed
to Lakes by Indian tribes; possible need for future financing to
meet Lakes&#146; expansion goals; risks of entry into new
businesses; reliance on Lakes&#146; management; re-listing of
Lakes&#146; common stock on the Nasdaq National Market; and the
lack of assurance that Lakes will be able to realize value from
its ownership of WPT Enterprises, Inc. (Nasdaq: WPTE)
(&#147;WPTE&#148;) common stock equal to the current or future
market value of such stock. Because Lakes&#146; consolidated
results of operations include the results of WPTE operations,
Lakes is also subject to risks and uncertainties relating to
WPTE that may have a material effect on the Company&#146;s
consolidated results of operations or the market value of the
WPTE shares held by the Company, including inability to achieve
financial results from the contemplated business expansion of
WPTE; WPTE&#146;s relatively short operating history; reliance
on the agreement with the Travel Channel, LLC (&#147;TRV&#148;)
for most of Lakes&#146; consolidated revenues; possible
inability of WPTE&#146;s programming to maintain a sufficient
audience and exposure to adverse trends in the television
production business generally; possible increases in production
expenses, compared to fixed license revenues for related
episodes; risk of inability to protect WPTE&#146;s proprietary
rights or preserve the value of WPTE&#146;s brands; dependence
on WPTE&#146;s relationships with member casinos and strategic
partners; and reliance on Lakes&#146; and WPTE&#146;s
management. For further information regarding the risks and
uncertainties, see the &#147;Risk Factors&#148; section in
Item&nbsp;1A of this Annual Report on Form&nbsp;10-K.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;I</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;1.</B></TD>
    <TD>
    <B><I>BUSINESS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Business Overview</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes Entertainment, Inc., a Minnesota corporation
(&#147;Lakes&#148; or the &#147;Company&#148;), has development
agreements for various Indian-owned casino properties and
intends to manage such casinos when applicable regulatory
approvals have been received and other contingencies have been
satisfied. Lakes is also involved in other businesses, including
development of a Company owned casino and the purchase/license
or development of new table game concepts for licensing to other
casinos. In addition, as of January&nbsp;2, 2005, Lakes owned
approximately 64% of WPTE, a separate publicly held media and
entertainment company principally engaged in the development,
production and marketing of gaming themed televised programming,
the licensing and sale of branded products and the sale of
corporate sponsorships. Lakes&#146; consolidated financial
statements include the results of operations of WPTE, and in
recent periods, all of Lakes&#146; revenues have been derived
from WPTE&#146;s business.
</DIV>

<P align="center" style="font-size: 10pt;">2

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Indian Casino Business</U></I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; primary business is to develop and manage
Indian-owned casino properties that offer the opportunity for
long-term development of related entertainment facilities,
including hotels, golf courses, theaters, recreational vehicle
parks and other complementary amenities. Lakes currently has
development and management agreements with five separate tribes
that include one new casino operation in Michigan, two new
casino operations in California, and three new casino operations
and two existing casino operations in Oklahoma. Lakes, through
various subsidiaries, has entered into the following contracts
for the development, and management of new casino operations,
all of which are subject to various regulatory approvals and in
some cases resolution of legal proceedings:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Lakes has contracts to develop and manage The Foothill Oaks
    Casino, to be built on the Rancheria of the Shingle Springs Band
    of Miwok Indians (&#147;Shingle Springs Tribe&#148;) in El
    Dorado County, California, adjacent to U.S.&nbsp;Highway 50,
    approximately 30&nbsp;miles east of Sacramento, California (the
    &#147;Shingle Springs Casino&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Lakes has contracts to develop and manage the Four Winds Casino
    resort to be built on land to be placed into trust for the
    Pokagon Band of Potawatomi Indians (&#147;Pokagon Band&#148;) in
    New Buffalo Township, Michigan near State Highway 94. The casino
    location will be near the first Interstate 94 exit in
    southwestern Michigan and approximately 75&nbsp;miles east of
    Chicago (the &#147;Pokagon Casino&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Lakes has contracts to develop and manage a casino to be built
    on the Rancheria of the Jamul Indian Village located on
    Interstate 94, approximately 20&nbsp;miles east of
    San&nbsp;Diego, California (the &#147;Jamul Casino&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Lakes has consulting agreements and management contracts with
    three wholly-owned subsidiaries of the Pawnee Tribal Development
    Corporation (&#147;Pawnee TDC&#148; referred to collectively as
    the &#147;Pawnee Nation&#148;) in connection with assisting the
    Pawnee Nation in developing, equipping and managing three
    separate casino destinations.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Lakes has consulting agreements and management contracts with
    the Iowa Tribe of Oklahoma (the &#147;Iowa Tribe&#148;) in
    connection with developing, equipping and managing a new casino
    and the Tribe&#146;s existing Cimarron casino.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Lakes has also explored, and is continuing to explore, numerous
    other development projects with Indian tribes.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Lakes entered into consulting agreements and management
contracts with the Kickapoo Traditional Tribe of Texas (the
&#147;Kickapoo Tribe&#148;) effective as of January 2005 to
improve the performance of the Kickapoo Tribe&#146;s existing
Lucky Eagle Casino in Eagle Pass, Texas, located approximately
140&nbsp;miles southwest of San&nbsp;Antonio. During the third
quarter of fiscal 2005 the Company&#146;s relationship with the
Kickapoo Tribe deteriorated and in November 2005, Lakes and the
Kickapoo Tribe terminated their business relationship.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><U>Non-Indian Casinos</U>.</I> Lakes also explores
opportunities to develop and operate casinos that are not owned
by Indian tribes. Lakes has received various regulatory
approvals to develop a Company-owned casino near Vicksburg,
Mississippi and continues to proceed with development plans for
this casino.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><U>WPT Enterprises, Inc.</U> </I> WPTE creates
internationally branded entertainment and consumer products
driven by the development, production, and marketing of
televised programming based on gaming themes. WPTE is the
creator of the World Poker Tour<B>&#174;</B>, a television show
based on a series of high-stakes poker tournaments that airs on
the Travel Channel in the United States and more than 60 markets
globally. WPTE currently licenses its brand to companies in the
business of poker equipment and instruction, apparel,
publishing, electronic and wireless entertainment, DVD/home
entertainment, casino games, and giftware. Through its three
business segments, WPT Studios, WPT Consumer Products and WPT
Corporate Alliances,
</DIV>

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<DIV align="left" style="font-size: 10pt;">
WPTE plans to continue building the World Poker Tour concept
into a highly-recognizable brand from which it can generate
revenues through license fees, host fees, corporate
sponsorships, retail sales, and other sources:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>WPT Studios.</I> Through its multi-media entertainment
    business, WPT Studios generates revenue through the domestic and
    international licensing of broadcast rights and membership fees
    from casinos and card rooms that host the televised World Poker
    Tour events. The vast majority of WPT Studios&#146; historical
    revenue (and approximately 76% of WPTE&#146;s total historical
    revenue) has resulted from the licensing of the World Poker Tour
    television series episodes to the Travel Channel for
    distribution in the United States. In October 2004, WPTE
    announced the formation of the Professional Poker Tour
    (&#147;PPT&#148;). The PPT is an invitation only tournament
    restricted to poker&#146;s professional elite, including
    champions from WPT and other major poker competitions. The PPT
    currently includes five major stops: Foxwoods, Bellagio,
    Goldstrike Casino, Commerce Casino and Mirage. WPTE will produce
    these five episodes and contribute certain allocated amounts to
    the event fees. WPTE intends to license the series for network
    broadcast or cable telecast.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>WPT Consumer Products.</I> Through its branded consumer
    products business, WPT Consumer Products generates revenue
    through the licensing of its brand to companies seeking to use
    the World Poker Tour brand and logo in the retail sales of their
    consumer products and through its sale of company-produced
    merchandise featuring its World Poker Tour brand.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>WPT Corporate Alliances.</I> Through its corporate
    promotional business, WPT Corporate Alliances generates revenue
    through sales of corporate sponsorships that include elements of
    on-air visibility, corporate live event sponsorship, promotional
    sponsorships and corporate hospitality events.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Online Gaming</I><U>.</U> On February&nbsp;3, 2005, WPTE
    finalized its agreement with WagerWorks to develop a WPT-branded
    real-money gaming website. The site, WPTonline.com, went live in
    the second quarter of fiscal 2005. WPTonline.com prohibits bets
    from players in the U.S. and other jurisdictions where online
    gaming is prohibited. WPTonline.com showcases a WPT-branded
    poker room featuring ring games, Sit and Gos, and multi-table
    tournaments for poker games including Texas Hold&#146;Em, Omaha,
    7 Card Stud, and 7 Card Hi-Lo. Additionally, the site features
    an online casino with a broad selection of slots and table games
    including WagerWorks&#146; exclusive online titles
    Monopoly<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant:SMALL-CAPS">tm</FONT></SUP>,
    Wheel of Fortune&#174;, and The Price is
    Right<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant:SMALL-CAPS">tm.</FONT></SUP>
    On-air promotion of WPTonline.com via international World Poker
    Tour television broadcasts will be a primary marketing tool for
    driving poker players to the site.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><U>Development and Marketing of Table Games.</U></I> Lakes
has recently created a new division to buy, patent and license
rights for new table game concepts to market/distribute and
license to casinos. The Company is currently testing and
marketing a number of new games including, World Poker Tour All
In Hold&#146;Em, Rainbow Poker, Pyramid Poker and Bonus Craps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><U>Real Estate Holdings.</U></I> As successor to the Grand
Casinos, Inc. (&#147;Grand Casinos&#148;) business as described
under &#147;History&#148; below, Lakes has held several parcels
of land for development or sale since the spin-off of Lakes to
the shareholders of Grand Casinos in 1998, including properties
in Las Vegas, Nevada and California. All of such properties have
been sold since that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>History</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes is a Minnesota corporation formed in 1998 under the name
of GCI Lakes, Inc, which was changed to Lakes Gaming, Inc. in
August 1998 and to Lakes Entertainment, Inc. during fiscal 2002.
Lakes is the successor to the Indian gaming business of Grand
Casinos and became a public company through a spin-off
transaction in which shares of Lakes common stock were
distributed to the shareholders of Grand Casinos. Before the
spin-off, Grand Casinos had management contracts for Grand
Casino Hinckley and Grand Casino Mille Lacs, both Indian-owned
casinos in Minnesota. Those contracts expired before the
spin-off. After the spin-off, Lakes managed two Indian-owned
casinos in Louisiana previously managed by Grand Casinos. Lakes
managed the largest casino resort in Louisiana, Grand Casino
Coushatta, until the management contract expired on
January&nbsp;16, 2002. Lakes also had a management contract for
Grand Casino Avoyelles, which was terminated through an early
buyout of the contract effective March&nbsp;31, 2000.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Indian Casino Business</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Development and Management of Shingle Springs Casino.</I>
Plans for the Shingle Springs Casino include an approximately
238,000&nbsp;square-foot facility (including approximately
80,000&nbsp;square feet of casino space) to be located adjacent
to the planned Shingle Springs Rancheria exit, approximately
35&nbsp;miles east of downtown Sacramento, on U.S.&nbsp;Highway
50 on the Shingle Springs Rancheria site. The Shingle Springs
Casino is currently planned to feature approximately 2,000 slot
machines and approximately 100 table games, as well as
restaurants, enclosed parking and other facilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2000, California voters approved an amendment to the State
Constitution, which allows for Nevada-style gaming on Indian
land and ratifies the agreement between the State and the Indian
Tribe (Tribal Compact). Lakes acquired its initial interest in
the development agreement and management contract for the
Shingle Springs Casino from Kean Argovitz resorts in 1999 and
formed a joint venture, in which the contracts were held,
between Lakes and Kean Argovitz Resorts&nbsp;&#151; Shingle
Springs, LLC (&#147;KAR&nbsp;&#151; Shingle Springs&#148;). On
January&nbsp;30, 2003, Lakes purchased the remaining
KAR&nbsp;&#151; Shingle Springs&#146; partnership interest in
the joint venture. In connection with the purchase transaction,
Lakes entered into separate agreements with Kevin M. Kean and
Jerry A. Argovitz, the individual owners of KAR&nbsp;&#151;
Shingle Springs (see &#147;Agreements With Owners of KAR
Entities&#148; below). During July 2004, the National Indian
Gaming Commission (&#147;NIGC&#148;) notified Lakes that it
approved the Development and Management Contract between the
Shingle Springs Tribe and Lakes, allowing Lakes to manage a
Class&nbsp;II and Class&nbsp;III casino.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development agreement provides for Lakes to make certain
pre-construction advances to the Shingle Springs Tribe in the
form of a transition loan and land loan up to a maximum amount
of $50.0&nbsp;million. Lakes is not required to fund these
amounts; however, if Lakes discontinued the funding prior to
fulfilling the obligation, Lakes would forfeit its rights under
the management contract. The principal balance of the transition
loan to the Shingle Springs Tribe as of January&nbsp;2, 2005 is
$33.1&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The agreement also provides for Lakes to arrange for financing
or, in its discretion, loan to the Shingle Springs Tribe in the
form of a facility loan funds for the costs of construction and
initial costs of operation up to a maximum of $300&nbsp;million.
In addition, Lakes will assist in the design, development and
construction of the facility as well as manage the pre-opening,
opening and continued operations of the casino and related
amenities for a period of seven years. As compensation for its
management services, Lakes will receive a management fee between
21% and 30% of net income of the operations annually for the
first five years, with a declining percentage in years six and
seven, as defined by the management contract. Lakes&#146;
management fee will be subordinated to senior indebtedness of
the Shingle Springs Casino and the minimum guaranteed payment to
the Shingle Springs Tribe. Generally, the order of priority of
payments from the Shingle Springs Casino&#146;s cash flows is as
follows: a certain minimum monthly guaranteed payment to the
Shingle Springs Tribe, repayment of various debt with interest
accrued thereon, management fee to Lakes, and other obligations,
with the remaining funds distributed to the Shingle Springs
Tribe. The management contract includes provisions that allow
the Shingle Springs Tribe to buyout the management contract
after four years from the opening date. The buyout amount is
calculated based upon the previous twelve months of management
fees earned multiplied by the remaining number of years under
the contract, discounted back to the present value at the time
the buyout occurs. If the Shingle Springs Tribe elects to buy
out the contract, all outstanding amounts owed to Lakes become
payable. The Shingle Springs Tribe may terminate the agreement
after five years from the opening of the casino if any of
certain required elements of the project have not been developed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Development of the casino resort will begin as soon as various
regulatory approvals are received and pending litigation is
resolved. The Shingle Springs Tribe received regulatory approval
of new interchange construction for access to the tribal land of
the Shingle Springs Tribe. El Dorado County (the county in which
the reservation is located) and another local group commenced
litigation in federal and state courts against the California
regulatory agencies, attempting to block the approval of the
interchange. The federal lawsuit filed by the County challenged
the validity of the Environmental Assessment prepared under the
National Environmental Protection Act by the NIGC, as required
for the approval of the management contract and as required by
the Bureau of Indian Affairs for construction of the road which
would allow access to the Shingle
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Springs Rancheria and site of the proposed casino project. The
federal lawsuit also challenged the validity of the Shingle
Springs Tribe and the qualification of the Shingle Springs
Rancheria as Indian lands which would allow gaming. In January
2005, Lakes announced that the United&nbsp;States District Court
for the Eastern District of California issued a favorable ruling
on all federal issues with respect to the casino development
planned by the Shingle Springs Tribe. El Dorado County and the
local opposition group are appealing the federal favorable
ruling related to the project. Lakes expects the courts&#146;
rulings to be upheld based on consultation with third-party
advisors and their interpretation of the law. A separate
California State court case regarding the project is pending.
See Item&nbsp;3&nbsp;&#151; &#147;Legal Proceedings.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Development and Management of Pokagon Casino.</I> The Pokagon
Casino is planned to be developed on approximately
675&nbsp;acres of land owned by the Pokagon Band in New Buffalo
Township, Michigan, near the first Interstate 94 exit in
southwestern Michigan and approximately 75&nbsp;miles east of
Chicago. The facility will feature approximately 3,000 slot
machines and approximately 100 table games as well as multiple
restaurants and bars, a parking garage and other facilities. In
1999, Lakes and the Pokagon Band executed a development
agreement and management contract, amended in 2005, governing
their relationship during the development, construction and
management of the casino.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development agreement provides for Lakes to advance up to
approximately $73.0&nbsp;million for the purchase of land and
for the initial development phase of the project. The
development agreement for the Pokagon project also provides that
to the extent the Pokagon Band is unable to raise additional
funding from third parties at an interest rate not to exceed
13%, Lakes will be required to provide additional financing of
up to approximately $54.0&nbsp;million. Based on extensive
discussions with prospective lenders, it appears that
third-party financing will be available for this project;
however, there can be no assurance that third-party financing
will be available at the time the project begins construction.
Lakes is not required to fund these amounts; however, if Lakes
discontinued the funding prior to fulfilling the obligation,
Lakes would forfeit its rights under the management contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The principal balance of the loan to the Pokagon Band as of
January&nbsp;2, 2005, is $44.5&nbsp;million. The management
contract is subject to the approval of the NIGC and is for a
term of five years from the opening of the casino and may be for
seven years under certain circumstances. Lakes will receive 24%
of net income up to a certain threshold and 19% on net income
over that threshold, as a management fee. Lakes&#146; management
fee will be subordinated to senior indebtedness of the Pokagon
Casino and is subject to a minimum guaranteed monthly payment to
the Pokagon Band. Generally, the order of priority of payments
from the Pokagon Casino&#146;s cash flows is as follows: a
certain minimum monthly guaranteed payment to the Pokagon Band,
repayment of various debt with interest accrued thereon,
management fee to Lakes, and other obligations, with the
remaining funds distributed to the Pokagon Band. The Pokagon
Band may terminate the management contract after five years from
the opening of the casino if any of certain required elements of
the project have not been developed or certain financial
commitments to the Pokagon Band have not exceeded certain
levels. The Pokagon Band may also buyout the management contract
after two years from the opening date. The buyout amount is
calculated based upon the previous twelve months of management
fees earned multiplied by the remaining number of years under
the management contract, discounted back to the present value at
the time the buyout occurs. If the Pokagon Band elects to buyout
the contract, all outstanding amounts owed to Lakes become
payable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Various regulatory approvals are needed prior to commencement of
development activities. The United&nbsp;States Department of the
Interior issued a Finding of No Significant Impact
(&#147;FONSI&#148;)&nbsp;in January 2001 and filed a legal
notice of its intent to place into trust 675&nbsp;acres near New
Buffalo, Michigan on behalf of the Pokagon Band. Under federal
law, a 30-day waiting period was required for public comments to
be made before the land in trust process could be finalized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the 30-day waiting period, a lawsuit was filed against
the federal government in the District Court of Columbia by a
Michigan-based group called &#147;Taxpayers of Michigan Against
Casinos&#148; (&#147;TOMAC&#148;)&nbsp;to stop the
U.S.&nbsp;Department of Interior from placing into trust the
land for the casino site. Lakes and the Pokagon Band continued
to provide support for this case and believed it would be
resolved in favor of the Pokagon Band. The first hearing before
the federal judge took place in December 2001. In March 2002, the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
judge eliminated several of TOMAC&#146;s assertions and
continued to review the remaining issues. In January 2003, the
judge dismissed all remaining issues except for one and
requested additional information from the federal government
(BIA)&nbsp;to support their conclusions on that one issue. The
BIA submitted the additional information in August 2004, and in
March 2005 the federal judge dismissed the last remaining issue
filed by TOMAC making it possible for the land to be taken into
trust for the gaming project. During the required 60-day waiting
period, TOMAC filed for an appeal. An agreement has been reached
between the Department of Justice and TOMAC to not take the land
into trust during the appeal process in exchange for TOMAC
agreeing to a &#147;fast track&#148; hearing process. The appeal
hearing is scheduled for December&nbsp;8, 2005. Nevertheless,
the appeal could delay the land in trust decision by eight to
ten months. While the outcome of the suit cannot be predicted at
this time, Lakes&#146; management believes that this hurdle will
be successfully overcome and the casino development will be
approved. Casino construction is not planned to start until land
is accepted into trust by the Secretary of the Interior and the
development agreement and management contract are approved by
the Chairman of the NIGC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Development and Management of Jamul Casino.</I> Lakes has a
contract to develop and manage a casino resort facility with the
Jamul Indian Village (&#147;Jamul Tribe&#148;) on land owned by
the Jamul Tribe near San&nbsp;Diego, California. Lakes acquired
its initial interest in the development agreement and management
contract for the Jamul Casino from Kean Argovitz Resorts in 1999
and formed a joint venture in which the contracts were held
between Lakes and Kean Argovitz Resorts&nbsp;&#151; Jamul, LLC
(&#147;KAR&nbsp;&#151; Jamul&#148;). On January&nbsp;30, 2003,
Lakes purchased the remaining KAR&nbsp;&#151; Jamul&#146;s
partnership interest in the joint venture. In connection with
the purchase transaction, Lakes entered into separate agreements
with the two individual owners of KAR&nbsp;&#151; Jamul. See
&#147;Agreements With Owners of KAR Entities&#148; below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development agreement provides for Lakes to make certain
pre-construction advances to the Jamul Tribe up to
$30&nbsp;million. Lakes is not required to fund these amounts;
however, if Lakes discontinued the funding prior to fulfilling
the obligation, Lakes would forfeit its rights under the
management contract. The principal balance of the loan to the
Jamul Tribe is $14.5&nbsp;million as of January&nbsp;2, 2005.
Lakes will receive a management fee between 18% and 30% of the
net income of the operations annually for seven years, subject
to regulatory approval of the management contract and subject to
a minimum guaranteed monthly payment to the Jamul Tribe.
Generally, the order of priority of payments from the Jamul
Casino&#146;s cash flows is as follows: a certain minimum
monthly guaranteed payment to the Jamul Tribe, repayment of
various debt with interest accrued thereon, management fee to
Lakes, and other obligations, with the remaining funds
distributed to the Jamul Tribe. The management contract includes
provisions that allow the Jamul Tribe to buyout the management
contract after four years from the opening date. The buyout
amount is calculated based upon the previous twelve months of
management fees earned multiplied by the remaining number of
years under the contract, discounted back to the present value
at the time the buyout occurs. If the Jamul Tribe elects to
buyout the contract all outstanding amounts owed to Lakes become
payable. The Jamul Tribe may terminate the management contract
after five years from the opening date of the casino if any of
certain required elements of the project have not been developed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2000, California voters approved an amendment to the State
Constitution, which allows for Nevada-style gaming on Indian
land and ratifies the Tribal Compact. Development of the casino
resort to be located on State Highway 94, approximately
20&nbsp;miles east of downtown San&nbsp;Diego, will begin once
various regulatory approvals are received. The Jamul Tribe has
an approximate 6-acre reservation on which the casino will be
built. The reservation is located near San&nbsp;Diego,
California. Lakes has also acquired 101&nbsp;acres of land
contiguous to the 6-acres of Rancheria land of which
82&nbsp;acres could be used for the casino support facilities if
the land is taken into trust. If such land is not taken into
trust the 6-acre reservation will be the site of the casino and
support facilities. The land will be transferred to the Jamul
Tribe at cost once all approvals are received. Plans for the
casino include approximately, 2,000 slot machines and
approximately 85 table games along with various restaurants and
related amenities. Additional plans include hotel rooms and an
event center. The management contract is subject to the approval
of the NIGC and is for a term of seven years from the opening of
the casino.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Consulting Agreement and Management Contract with the
Kickapoo Tribe.</I> As of November&nbsp;10, 2005, Lakes and the
Kickapoo Tribe terminated their business relationship. The
relationship between Lakes and the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Kickapoo Tribe had begun to deteriorate during the third quarter
of fiscal 2005 and ended with a decision to terminate the
business relationship due to different ideas on how to proceed
with the project. Lakes was assisting the Kickapoo Tribe with
improving the performance of the Kickapoo Tribe&#146;s gaming
operations conducted at the Kickapoo Tribe&#146;s existing Lucky
Eagle Casino in Eagle Pass, Texas (located approximately
140&nbsp;miles southwest of San&nbsp;Antonio) under the terms of
a gaming operations consulting agreement. Lakes and the Kickapoo
Tribe entered into the gaming operations consulting agreement
and a separate management contract in December 2004, as amended
and restated in March 2005, effective as of January&nbsp;19,
2005. For its consulting services, Lakes was to receive
$100&nbsp;per month for 84&nbsp;months, payment of which was
deferred for one year. Subject to regulatory approval, Lakes had
planned to manage the existing casino under the management
contract in exchange for approximately 30% of total net profits
of the project in excess of $12.0&nbsp;million for each
12&nbsp;month period over a seven-year term. Lakes also
committed to provide advances to the Kickapoo Tribe of up to
$2.0&nbsp;million for business improvement purposes. As of
November&nbsp;15, 2005, Lakes had advanced approximately
$1.4&nbsp;million to the Kickapoo Tribe. Additionally, unpaid
invoices related to the project total approximately
$4&nbsp;million, some or all of which Lakes may be required to
pay. As a result of the terminated business relationship with
the Kickapoo Tribe, Lakes expects that it will work with the
Kickapoo Tribe to reach an agreement to resolve all of the
financial terms of the contracts, including repayment of the
advances and payment of the unpaid invoices, and to formally
terminate the gaming operations consulting agreement, management
contract and related ancillary agreements relating to the
project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Arrangement with Consultant.</I> Lakes has executed an
agreement stipulating that Kevin Kean will be compensated for
his consulting services (relating to the Kickapoo Tribe)
rendered to Lakes. Under this arrangement, subject to
Mr.&nbsp;Kean obtaining certain regulatory approvals,
Mr.&nbsp;Kean will receive 20&nbsp;percent of Lakes&#146; fee
compensation, earned under the gaming operations consulting
agreement and the management contract with the Kickapoo Tribe
(i.e., six percent of the incremental total net income, which is
paid by the Company out of its 30&nbsp;percent share). This
agreement provides that payments will be due to Mr.&nbsp;Kean if
Lakes is paid by the Kickapoo Tribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Gaming Development Consulting Agreements and Management
Contracts with three wholly-owned subsidiaries of the Pawnee
Tribal Development Corporation (&#147;Pawnee TDC)&#148; referred
to collectively as the &#147;Pawnee Nation&#148;.</I> In January
2005, Lakes entered into three gaming development and consulting
agreements (collectively &#147;Pawnee Development and Consulting
Agreements&#148;) and three separate management contracts
(collectively &#147;Pawnee Management Contracts&#148;) with
wholly-owned subsidiaries of Pawnee TDC in connection with
assisting the Pawnee Nation in developing, equipping and
managing three separate casino destinations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The largest of the casino resort developments will be located on
approximately 800&nbsp;acres of Indian gaming land owned by the
Pawnee Nation in northern Oklahoma near the Kansas border. This
project is planned to include a large first class casino, hotel
and meeting space, multiple restaurants and bar venues, an
entertainment and event center, a golf course and various other
casino resort amenities. The first phase of the project is
planned to include approximately 1,200 gaming devices, 24 table
games, a poker room, various restaurants and bars, a 150-room
hotel and parking.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Pawnee Nation currently operates a &#147;Travel Plaza&#148;
at the intersection of U.S.&nbsp;Highway 412 and State
Highway&nbsp;18, approximately 25&nbsp;miles from Stillwater,
Oklahoma. The Pawnee Nation intends to expand the Travel Plaza
to include gaming and has engaged Lakes to assist with this
project. When expanded, the planned project will open with
approximately 150 gaming devices, four table games, and a full
service restaurant and bar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As compensation for the performance of its obligations under the
management contract for each of these two locations, Lakes is
entitled to receive a fee of 30% of net income of the respective
casino (as defined in the contract) for a period of five to
seven years, depending on the scope of the facilities, less any
amounts earned by any Company affiliate for consulting on the
two projects. The management contracts are subject to approval
of the NIGC and certain other conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Pawnee Nation also operates its &#147;Trading Post&#148;
Casino, which currently includes approximately 66&nbsp;gaming
devices along with a retail convenience store and gas station in
the town of Pawnee, Oklahoma.
</DIV>

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<DIV align="left" style="font-size: 10pt;">
Lakes will assist in the management of this project and in its
expansion if the Pawnee Nation decides to expand the casino. As
compensation for its management services on this project, Lakes
will receive a management fee of approximately 30% of net
income, as defined in the agreement, based on the incremental
net income produced at this location during the length of the
management contract, expected to be from five to seven years,
less any amounts earned by any Company affiliate for consulting
services performed at the Trading Post, subject to regulatory
approval and certain other conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to the approval of the Pawnee Management Contracts by the
NIGC, Lakes will provide services under the Pawnee Development
Consulting Agreements to each of the three Pawnee casino
projects. Under these agreements Lakes plans to provide advances
to the Pawnee Nation, if needed, from time to time to each
particular project for preliminary development costs as agreed
to by Lakes and the Pawnee Nation. Any advances made will accrue
interest at prime plus two percent and be repayable in 24 equal
monthly installments beginning on the
25<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&nbsp;day
following the opening date for the project if the loan has not
previously been repaid through the project permanent financing.
The Pawnee Development Consulting Agreements are for
12&nbsp;years from the effective date of the agreements or until
the project development fees and the project preliminary
development loans have been fully paid, whichever date is later,
subject to early termination. In addition to interest earned on
the project preliminary development loan, Lakes will receive a
development fixed fee equal to three percent of project costs at
each location and a monthly consulting flat fee for each of the
three projects of $5,000 for the Trading Post location, $25,000
for the Travel Plaza location and $250,000 for the new casino
per month for 120&nbsp;months. The above development fixed fees
shall be paid on the opening date of each of the projects. No
monthly consulting fixed fee is earned or paid prior to the
opening date of the project. After the opening date of the
project the monthly consulting fixed fee shall be due and paid
commencing on the 25th&nbsp;day of the following calendar month
and each successive month.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Pawnee Development and Consulting Agreements and Pawnee
Management Contracts are subject to NIGC review and include
provisions for an early buyout of the Pawnee Development and
Consulting Agreements and the Pawnee Management Contracts by the
Pawnee Nation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Arrangement with Consultant.</I> The Company has executed an
agreement stipulating that Kevin Kean will be compensated for
his consulting services (relating to the Pawnee Nation) rendered
to the Company. Under this arrangement, subject to Mr.&nbsp;Kean
obtaining certain regulatory approvals, Mr.&nbsp;Kean will
receive 20&nbsp;percent of the Company&#146;s fee compensation,
earned under the Pawnee Development and Consulting Agreements
and Pawnee Management Contracts with the Pawnee Nation (i.e.,
six percent of the incremental total net income or
20&nbsp;percent of the Company&#146;s 30&nbsp;percent share).
This agreement provides that payments will be due to
Mr.&nbsp;Kean when the Company is paid by the Pawnee Nation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Consulting Agreements and Management Contracts with the Iowa
Tribe of Oklahoma.</I> On March&nbsp;15, 2005, the Company,
through its wholly-owned subsidiaries, entered into consulting
agreements and management contracts with the Iowa Tribe of
Oklahoma, a federally recognized Indian Tribe, and the Iowa
Tribe of Oklahoma, a federally-chartered corporation
(collectively, the &#147;Iowa Tribe&#148;). The agreements are
effective as of January&nbsp;27, 2005. The Company will provide
consulting services to assist the Iowa Tribe with two separate
casino destinations in Oklahoma including (i)&nbsp;assisting in
developing a new first class casino and ancillary amenities and
facilities to be located on Indian land approximately
25&nbsp;miles northeast of Oklahoma City along Route 66 (the
&#147;Development Project&#148;); and (ii)&nbsp;consulting on
the refurbishment of and operational efforts at the Iowa
Tribe&#146;s existing Cimarron Casino, located in Perkins,
Oklahoma (the &#147;Cimarron Casino&#148;). The Company will
also provide management services for the Iowa Tribe&#146;s
casino operations at each location subject to regulatory
approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each of the projects has a gaming consulting agreement
(&#147;Iowa Consulting Agreement&#148;) and a management
contract (&#147;Iowa Management Contract&#148;), independent of
the other project. Key terms relating to the agreements for the
projects are as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>The Development Project.</I> For its gaming development
consulting services under the Iowa Consulting Agreement related
to the Development Project, the Company will receive a
development fee of two percent of the project costs of the
Development Project, paid upon the opening of the Development
Project, and a flat
</DIV>

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<DIV align="left" style="font-size: 10pt;">
monthly fee of $500,000 for a period of 120&nbsp;months
commencing upon the opening of the Development Project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has agreed to make advances to the Iowa Tribe,
subject to a project budget to be agreed upon by the Company and
the Iowa Tribe and certain other conditions. The development
loan will be for preliminary development costs under the
Development Project budget. The Company has also agreed to use
reasonable efforts to assist the Iowa Tribe in obtaining
permanent financing for any projects developed under the Iowa
Consulting Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Iowa Management Contract for the Development Project is
subject to the approval of the NIGC and certain other
conditions. For its performance under the Iowa Management
Contract, the Company will be entitled to receive management
fees of approximately 30% of net income, as defined in the
agreement, for each month during the term of the Iowa Management
Contract, less any amounts earned by any Company affiliate for
consulting on the Development Project. The Iowa Management
Contract term is seven years from the first day that the Company
is able to commence management of the Development Project&#146;s
gaming operations under all legal and regulatory requirements
(the &#147;Commencement Date&#148;), provided that the Iowa
Tribe has the right to buyout the remaining term of the Iowa
Management Contract after the Development Project has been in
continuous operation for 60&nbsp;months, for an amount based on
the then present value of estimated future management fees. If
the Iowa Tribe elects to buyout the contract, all outstanding
amounts owed to Lakes become payable if not already paid.
Subject to certain conditions, the Company agrees to make
advances for the Development Project&#146;s working capital
requirements, if needed, during the first six months after the
Commencement Date. The advances are to be repaid through an
operating note payable from revenues generated by future
operations of the Development Project bearing interest at two
percent over the prime rate. The Company also agrees to fund any
shortfall in certain minimum monthly Development Project
payments to the Iowa Tribe by means of non-interest bearing
advances under the same operating note.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Cimarron Casino.</I> The Company has entered into a separate
gaming consulting agreement (&#147;Cimarron Consulting
Agreement&#148;) and management contract (&#147;Cimarron
Management Contract&#148;) with the Iowa Tribe with respect to
the Cimarron Casino. Many of the material provisions of these
two agreements are similar to those for the Development Project,
except that: (i)&nbsp;the Cimarron Consulting Agreement is
primarily for services related to the existing operations (with
the possibility of further development); (ii)&nbsp;the Company
will provide up to a $1&nbsp;million business improvement loan
rather than a preliminary development loan; (iii)&nbsp;the fee
under the Cimarron Consulting Agreement will consist entirely of
a limited flat monthly fee of $50,000; and (iv)&nbsp;the annual
fee under the Cimarron Management Contract will be 30% of net
income in excess of $4&nbsp;million (reduced by any amounts
earned by any Company affiliate for consulting services under
the Cimarron Consulting Agreement).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Arrangement with Consultant.</I> The Company has executed an
agreement stipulating that Kevin Kean will be compensated for
his consulting services (relating to the Iowa Tribe) rendered to
the Company. Under this arrangement, subject to Mr.&nbsp;Kean
obtaining certain regulatory approvals, Mr.&nbsp;Kean will
receive 20&nbsp;percent of the Company&#146;s fee compensation
that is received under the Iowa Consulting Agreement, Cimarron
Consulting Agreement, Iowa Management Contract and Cimarron
Management Contract with the Iowa Tribe (i.e., six percent of
the incremental total net income or 20&nbsp;percent of the
Company&#146;s 30&nbsp;percent share). This agreement provides
that payments will be due to Mr.&nbsp;Kean when the Company is
paid by the Iowa Tribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Agreements With Owners of KAR Entities.</I> The joint venture
entities that hold the management contracts for the Jamul and
Shingle Springs Casino resorts were previously jointly owned by
KAR&nbsp;&#151; California and KAR&nbsp;&#151; Shingle Springs
(together, the &#147;KAR Entities&#148;), respectively. Lakes
advanced $0.97&nbsp;million to each of the KAR Entities pursuant
to promissory notes dated May&nbsp;25, 1999 and July&nbsp;29,
1999 (collectively, the &#147;1999 Notes&#148;). At the time,
the KAR Entities held rights in development and management
contracts for the Jamul and Shingle Springs Casino projects. The
loans were part of overall transactions in which Lakes acquired
interests in those casino projects by entering into joint
ventures with the KAR Entities. Under the joint venture
arrangements, Lakes and the KAR Entities jointly formed the
companies to develop the casinos (&#147;Project Companies&#148;)
and the KAR Entities assigned their rights in the development and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
management contracts to the Project Companies. As such, the
business purpose for the loans by Lakes was to acquire interests
in the subject casino projects, as the loans were a condition to
entering into the joint ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;30, 2003, Lakes purchased the respective joint
venture interests of the KAR Entities. At the time of the
purchase, the KAR Entities owed Lakes $1.9&nbsp;million under
the 1999 Notes. As consideration for the purchase of the KAR
Entities&#146; partnership interest in Jamul and Shingle
Springs, Lakes forgave the amounts owed under the 1999 Notes of
$1.9&nbsp;million. In connection with the purchase transactions,
Lakes entered into separate agreements with Kevin M. Kean and
Jerry A. Argovitz, the two individual owners of the KAR Entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreement with Mr.&nbsp;Kean, Mr.&nbsp;Kean may elect
to serve as a consultant to Lakes during the term of each casino
management contract if he is found suitable by relevant gaming
regulatory authorities. In such event, Mr.&nbsp;Kean will be
entitled to receive annual consulting fees equal to 20% of the
management fees received by Lakes from the Jamul Casino
operations and 15% of the management fees received by Lakes from
the Shingle Springs Casino operations, less certain costs of
these operations. If Mr.&nbsp;Kean is found suitable by relevant
gaming regulatory authorities and elects to serve as a
consultant, he will be obligated to repay 50% of the notes
receivable from the KAR Entities. If Mr.&nbsp;Kean is not found
suitable by relevant gaming regulatory authorities or otherwise
elects not to serve as a consultant, he will be entitled to
receive annual payments of $1&nbsp;million from each of the
Jamul and Shingle Springs Casino projects during the term of the
respective casino management contracts (but not during any
renewal term of such management contracts).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreement with Mr.&nbsp;Argovitz, if he is found
suitable by relevant gaming regulatory authorities, he may elect
to re-purchase his respective original equity interests in the
Lakes&#146; Subsidiaries and he will be entitled to obtain a 20%
equity interest in Lakes&#146; management contract with the
Jamul Casino and a 15% equity interest in Lakes&#146; management
contract with the Shingle Springs Casino. Upon obtaining this
interest, Mr.&nbsp;Argovitz will become obligated to repay 50%
of the 1999 Notes. If he is not found suitable or does not elect
to purchase equity interests in the Lakes Subsidiaries,
Mr.&nbsp;Argovitz may elect to receive annual payments of
$1&nbsp;million from each of the Jamul and Shingle Springs
Casino projects from the date of election through the term of
the respective casino management contracts (but not during any
renewal term of such management contracts).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, Mr.&nbsp;Kean owes Lakes $1.8&nbsp;million, which
resulted from Lakes&#146; guaranty of a second mortgage on
Mr.&nbsp;Kean&#146;s personal residential property. This
guaranty was originally an obligation of Grand Casinos
(Lakes&#146; predecessor) that was assumed by Lakes in
connection with its December&nbsp;31, 1998 spin-off from Grand
Casinos. In connection with the guaranty, Lakes took a
subordinated security position in the residential property.
Additionally, in October 1999, Lakes entered into an Agreement
for Indemnification with Mr.&nbsp;Kean wherein Lakes
acknowledged that it guaranteed the loan between Mr.&nbsp;Kean
and the bank. Pursuant to the guarantee agreement, if Lakes
performed under the guarantee, Lakes would be entitled to
receive and retain all monies otherwise payable to Mr.&nbsp;Kean
with respect to his interest in the KAR&nbsp;&#151; Jamul and
KAR&nbsp;&#151; Shingle Springs projects until Lakes has been
reimbursed for all monies it might pay to the bank in repayment
of or to purchase the Kean loan. In 2001, Mr.&nbsp;Kean
defaulted on his payment obligations under the mortgage, Lakes
paid off the mortgage pursuant to its guaranty obligations, and
Lakes succeeded to the bank&#146;s second mortgage position and
to the bank&#146;s security interest in Kean&#146;s shares of
common stock in another company (the value associated with the
shares of common stock is currently minimal). Lakes subsequently
foreclosed on the property and effected a sheriff&#146;s sale,
which netted enough proceeds to pay the first mortgage on the
house and apply some proceeds toward Mr.&nbsp;Kean&#146;s
obligation to Lakes under the second mortgage. As a result of
these transactions, the resulting net balance due from
Mr.&nbsp;Kean was approximately $1.8&nbsp;million and Lakes
recorded a note receivable in that amount in 2001. The note
receivable is carried on the consolidated balance sheet and
included in other long-term assets. Lakes has executed a Loan
and Security Agreement with Mr.&nbsp;Kean and his obligation is
secured by his interest in the Jamul and Shingle Springs Casino
projects or any other source of income due Mr.&nbsp;Kean by a
Lakes entity. Based on our evaluation that it is probable that
each of these projects will be successfully completed and given
Mr.&nbsp;Kean&#146;s involvement in those and other projects, we
believe the note will be repaid.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has loaned Mr.&nbsp;Kean amounts in 2004, which are
secured by the future operations of certain casino projects, as
discussed above. The outstanding amount of this loan was
$0.2&nbsp;million at January&nbsp;2, 2005. No amounts were
outstanding at December&nbsp;28, 2003. Mr.&nbsp;Kean has agreed
that 50% of the consulting fees or other payments payable to him
under the agreements with Lakes and its subsidiaries shall be
applied toward repayment of his indebtedness to Lakes from these
advances. In the event of a default under the agreements, 100%
of the fees and payments will be applied toward repayment of his
indebtedness to Lakes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, Lakes has an outstanding note receivable of
$0.25&nbsp;million at January&nbsp;2, 2005 and December&nbsp;28,
2003, respectively, from Mr.&nbsp;Kean. The majority of this
note was repaid in January 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Company-owned Casino Business</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As part of the Company&#146;s business strategy, Lakes also
seeks opportunities to develop and operate Company-owned casinos
where applicable laws permit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February 2005, Lakes announced that its request for gaming
site approval with respect to its proposed casino location in
Vicksburg, Mississippi had been granted by the Mississippi
Gaming Commission. The site, on the Mississippi River, contains
approximately 160&nbsp;acres located on Magnolia Road in
Vicksburg, Warren County, Mississippi. Lakes holds land purchase
options for this site. During July 2005, Lakes received approval
from the Mississippi Gaming Commission of its development plan
for an approximately $225&nbsp;million gaming project, to be
built on this site. Lakes&#146; approved plan allows for an
operation consisting of a 60,000&nbsp;square foot casino floor
which would include multiple bars, live entertainment, various
restaurants, 1,200 to 1,500 slot machines, table games, poker
room, valet parking and hotel rooms. This plan allows for
expanded gaming, additional hotel rooms, a Kid&#146;s Quest, a
nightclub, cigar lounge, banquet rooms, and an event center.
Lakes is working to complete the site development process and
intends to secure financing as needed during 2006. The project
could be completed by the end of 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Table Games</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 2004, Lakes created a new division to buy, patent and license
rights for new table game concepts to market and distribute to
casinos. Lakes is currently testing and marketing a number of
new games, including World Poker Tour All In Hold&#146;Em,
Rainbow Poker, Pyramid Poker and Bonus Craps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Competition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The gaming industry is highly competitive. Gaming activities
include traditional land-based casinos; river boat and dockside
gaming; casino gaming on Indian land; state-sponsored video
lottery and video poker in restaurants, bars and hotels;
pari-mutuel betting on horse racing and dog racing; sports
bookmaking; and card rooms. The casinos to be managed or owned
by Lakes compete with all of these forms of gaming, and will
compete with any new forms of gaming that may be legalized in
additional jurisdictions, as well as with other types of
entertainment. Lakes also competes with other gaming companies
for opportunities to acquire legal gaming sites in emerging
gaming jurisdictions and for the opportunity to manage casinos
on Indian land. Some of the competitors of Lakes have more
personnel and greater financial and other resources than Lakes.
Further expansion of gaming could also significantly affect
Lakes&#146; business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In California, Michigan and Oklahoma, the key areas targeted in
the near-term by Lakes, Indian gaming is very well-developed and
continues to flourish. California has by far the largest Indian
gaming industry of any state, generating an estimated
$5.3&nbsp;billion in gaming revenues in 2004, which represents
approximately one-fourth of all Indian gaming revenue in the
United States. There were 56 Indian gaming facilities in
California in 2004, with a total of approximately 59,000 slot
machines and approximately 1,800 table games.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indian gaming facilities in Michigan can offer all forms of
Class&nbsp;III gaming with the exception of sports wagering. The
Michigan Indian gaming facility will compete primarily with the
riverboats that operate in northern Indiana. There were five
riverboats in northern Indiana in 2004 generating over
$1.2&nbsp;billion in gaming revenue with a total of 8,976 slot
machines and 272 table games.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2004, the State of Oklahoma approved a state gaming
compact that allows participating tribes to operate various
forms of Class&nbsp;II and Class&nbsp;III gaming devices and non
house-banked card games.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
According to the NIGC&nbsp;tribal data reports, from the end of
2001 through 2004, the number of Indian gaming operations has
increased by 38, or 11.6%, to 367 operations nationwide. During
this same period, tribal gaming revenues increased
$6.6&nbsp;billion, or 51%, to $19.4&nbsp;billion in the United
States. The NIGC reports gaming revenues on a regional basis and
Region&nbsp;V, which contains Kansas, Oklahoma and Texas, showed
the largest revenue increase of 185%. This was followed by
Region&nbsp;II, which contains California and Northern Nevada,
which increased 100% to $5.8&nbsp;billion in 2004 and is now the
highest grossing region. These increases are due largely to the
emergence of compacted casinos in California and the
introduction and market acceptance of more sophisticated
Class&nbsp;II electronic gaming devices.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes also intends to develop and open a Company-owned casino in
Vicksburg, Mississippi, where it will compete with four other
established casinos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the market for televised poker tournaments, World Poker Tour
competes with producers of several poker-related programs,
including the &#147;World Series of Poker&#148;, an annual event
hosted by the Horseshoe Casino in Las Vegas that airs on ESPN.
&#147;Celebrity Poker Showdown&#148;, which airs on Bravo and
showcases the appearances of celebrities more than it does the
game of poker, and &#147;Late Night Poker&#148;, a U.K. based
program that airs on Fox. Fox also broadcasts &#147;Poker
Superstars,&#148; a series of events featuring well-known
professional poker players. These and other producers of
poker-related programming may be well established and may have
significantly greater resources than Lakes does. At this time,
all programs that currently compete with the World Poker Tour
series revolve around special events. The World Poker Tour
series differentiates its programming schedule from competing
shows by airing the World Poker Tour series in prime time
television during the same time slot each week. Lakes believes
that this type of &#147;appointment&#148; television helps build
a following among viewers. In addition to other poker-related
programs, the World Poker Tour series also competes with
televised sporting events, reality-based television programming
and other televised programming that airs during the same
timeslot.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Regulation</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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    <TD width="3%"></TD>
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</TR>

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    <TD></TD>
    <TD>
    <B><I>Gaming Regulation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The ownership, management, and operation of gaming facilities
are subject to extensive federal, state, provincial, tribal
and/or local laws, regulations and ordinances, which are
administered by the relevant regulatory agency or agencies in
each jurisdiction (the &#147;Regulatory Authorities&#148;).
These laws, regulations and ordinances vary from jurisdiction to
jurisdiction, but generally concern the responsibility,
financial stability and character of the owners and managers of
gaming operations as well as persons financially interested or
involved in gaming operations. Certain basic provisions that are
currently applicable to Lakes in its management, development and
financing activities are described below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neither Lakes nor any subsidiary may own, manage or operate a
gaming facility unless proper licenses, permits and approvals
are obtained. An application for a license, permit or approval
may be denied for any cause that the Regulatory Authorities deem
reasonable. Most Regulatory Authorities also have the right to
license, investigate, and determine the suitability of any
person who has a material relationship with Lakes or any of its
subsidiaries, including officers, directors, employees, and
security holders of Lakes or its subsidiaries. In the event a
Regulatory Authority were to find a security holder to be
unsuitable, Lakes may be sanctioned, and may lose its licenses
and approvals if Lakes recognizes any rights in any entity with
such unsuitable person in connection with such securities. Lakes
may be required to repurchase its securities at fair market
value from security holders that the Regulatory Authorities deem
unsuitable. Lakes&#146; Articles of Incorporation authorize
Lakes to redeem securities held by persons whose status as a
security holder, in the opinion of the Lakes&#146; Board of
Directors, jeopardizes gaming licenses or approvals of Lakes or
its subsidiaries. Once obtained, licenses, permits, and
approvals must be periodically renewed and generally are not
transferable. The Regulatory Authorities may at any time revoke,
suspend, condition, limit, or restrict a license for any cause
they deem reasonable.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fines for violations may be levied against the holder of a
license, and in certain jurisdictions, gaming operation revenues
can be forfeited to the state under certain circumstances. No
assurance can be given that any licenses, permits, or approvals
will be obtained by Lakes or its subsidiaries, or if obtained,
will be renewed or not revoked in the future. In addition, the
rejection or termination of a license, permit, or approval of
Lakes or any of its employees or security holders in any
jurisdiction may have adverse consequences in other
jurisdictions. Certain jurisdictions require gaming operators
licensed therein to seek approval from the state before
conducting gaming in other jurisdictions. Lakes and its
subsidiaries may be required to submit detailed financial and
operating reports to Regulatory Authorities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The political and regulatory environment for gaming is dynamic
and rapidly changing. The laws, regulations, and procedures
pertaining to gaming are subject to the interpretation of the
Regulatory Authorities and may be amended. Any changes in such
laws, regulations, or their interpretations could have a
material adverse effect on Lakes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certain specific provisions to which Lakes is currently subject
are described below.
</DIV>

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    <TD width="3%"></TD>
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    <TD></TD>
    <TD>
    <B><I>Indian Gaming</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The terms and conditions of management contracts for the
operation of Indian-owned casinos, and of all gaming on Indian
land in the United States, are subject to the Indian Gaming
Regulatory Authority (&#147;IGRA&#148;), which is administered
by NIGC, and also are subject to the provisions of statutes
relating to contracts with Indian tribes, which are administered
by the Secretary of the Interior (the &#147;Secretary&#148;) and
the Bureau of Indian Affairs (&#147;BIA&#148;). The regulations
and guidelines under which NIGC will administer the IGRA are
evolving. The IGRA and those regulations and guidelines are
subject to interpretation by the Secretary and NIGC and may be
subject to judicial and legislative clarification or amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes may need to provide the BIA or NIGC with background
information on each of its directors and each shareholder who
holds five percent or more of Lakes&#146; stock (&#147;5%
Shareholders&#148;), including a complete financial statement, a
description of such person&#146;s gaming experience, and a list
of jurisdictions in which such person holds gaming licenses.
Background investigations of key employees also may be required.
Lakes&#146; Articles of Incorporation contain provisions
requiring directors and 5% Shareholders to provide such
information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The IGRA currently requires NIGC to approve management contracts
and certain collateral agreements for Indian-owned casinos.
Prior to NIGC assuming its management contract approval
responsibility, management contracts and other agreements were
approved by the BIA. The NIGC may review any of Lakes&#146;
management contracts and collateral agreements for compliance
with the IGRA at any time in the future. The NIGC will not
approve a management contract if a director or a 5% Shareholder
of the management company (i)&nbsp;is an elected member of the
Indian tribal government that owns the facility purchasing or
leasing the games; (ii)&nbsp;has been or is convicted of a
felony gaming offense; (iii)&nbsp;has knowingly and willfully
provided materially false information to the NIGC or the tribe;
(iv)&nbsp;has refused to respond to questions from the NIGC; or
(v)&nbsp;is a person whose prior history, reputation and
associations pose a threat to the public interest or to
effective gaming regulation and control, or create or enhance
the chance of unsuitable activities in gaming or the business
and financial arrangements incidental thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the NIGC will not approve a management contract if
the management company or any of its agents have attempted to
unduly influence any decision or process of tribal government
relating to gaming, or if the management company has materially
breached the terms of the management contract or the
tribe&#146;s gaming ordinance, or a trustee, exercising due
diligence, would not approve such management contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A management contract can be approved only after NIGC determines
that the contract provides, among other things, for
(i)&nbsp;adequate accounting procedures and verifiable financial
reports, which must be furnished to the tribe; (ii)&nbsp;tribal
access to the daily operations of the gaming enterprise,
including the right to verify daily gross revenues and income;
(iii)&nbsp;minimum guaranteed payments to the tribe, which must
have priority over the retirement of development and
construction costs; (iv)&nbsp;a ceiling on the repayment of such
development and construction costs; and (v)&nbsp;a contract term
not exceeding five years and a management fee not exceeding
</DIV>

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<DIV align="left" style="font-size: 10pt;">
30% of profits; provided that the NIGC may approve up to a
seven-year term if NIGC is satisfied that the capital investment
required, the risk exposure, and the income projections for the
particular gaming activity justify the longer term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The IGRA established three separate classes of tribal
gaming&nbsp;&#151; Class&nbsp;I, Class&nbsp;II, and
Class&nbsp;III. Class&nbsp;I includes all traditional or social
games played by a tribe in connection with celebrations or
ceremonies. Class&nbsp;II gaming includes games such as bingo,
pull-tabs, punch boards, instant bingo and card games that are
not played against the house. Class&nbsp;III gaming includes
casino-style gaming including table games such as blackjack,
craps and roulette, as well as gaming machines such as slots,
video poker, lotteries, and pari-mutuel wagering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The IGRA prohibits substantially all forms of Class&nbsp;III
gaming unless the tribe has entered into a written agreement
with the state in which the casino is located that specifically
authorizes the types of commercial gaming the tribe may offer (a
&#147;tribal-state compact&#148;). The IGRA requires states to
negotiate in good faith with tribes that seek tribal-state
compacts, and grants Indian tribes the right to seek a federal
court order to compel such negotiations. Many states have
refused to enter into such negotiations. Tribes in several
states have sought federal court orders to compel such
negotiations under the IGRA; however, the Supreme Court of the
United States held in 1996 that the Eleventh Amendment to the
United States Constitution immunizes states from suit by Indian
tribes in federal court without the states&#146; consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because Indian tribes are currently unable to compel states to
negotiate tribal-state compacts, Lakes may not be able to
develop and manage casinos in states that refuse to enter into,
or renew, tribal-state compacts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the IGRA, tribal-owned gaming facilities on
Indian land are subject to a number of other federal statutes.
The operation of gaming on Indian land is dependent upon whether
the law of the state in which the casino is located permits
gaming by non-Indian entities, which may change over time. Any
such changes in state law may have a material adverse effect on
the casinos managed by Lakes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Title&nbsp;25, Section&nbsp;81 of the United States Code states
that &#147;no agreement shall be made by any person with any
tribe of Indians, or individual Indians not citizens of the
United States, for the payment or delivery of any money or other
thing of value .&nbsp;.&nbsp;. in consideration of services for
said Indians relative to their lands .&nbsp;.&nbsp;. unless such
contract or agreement be executed and approved&#148; by the
Secretary or his or her designee. An agreement or contract for
services relative to Indian lands that fails to conform with the
requirements of Section&nbsp;81 will be void and unenforceable.
Any money or other thing of value paid to any person by any
Indian or tribe for or on his or their behalf, on account of
such services, in excess of any amount approved by the Secretary
or his or her authorized representative will be subject to
forfeiture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Indian Trader Licensing Act, Title&nbsp;25,
Section&nbsp;261-64 of the United States Code (&#147;ITLA&#148;)
states that &#147;any person other than an Indian of the full
blood who shall attempt to reside in the Indian country, or on
any Indian reservation, as a trader, or to introduce goods, or
to trade therein, without such license, shall forfeit all
merchandise offered for sale to the Indians or found in his
possession, and shall moreover be liable to a penalty of
$500.&nbsp;.&nbsp;.&#148; No such licenses have been issued to
Lakes to date. The applicability of the ITLA to Indian gaming
management contracts is unclear. Lakes believes that the ITLA is
not applicable to its management contracts, under which Lakes
provides services rather than goods to Indian tribes. Lakes
further believes that the ITLA has been superseded by the IGRA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indian tribes are sovereign nations with their own governmental
systems, which have primary regulatory authority over gaming on
land within the tribe&#146;s jurisdiction. Because of their
sovereign status, Indian tribes possess immunity from lawsuits
to which the tribes have not otherwise consented or otherwise
waived their sovereign immunity defense. Therefore, no
contractual obligations undertaken by tribes to Lakes would be
enforceable by Lakes unless the tribe has expressly waived its
sovereign immunity as to such obligations. Courts strictly
construe such waivers. Lakes has obtained immunity waivers from
each of the tribes to enforce the terms of its management
agreements, however, the scope of those waivers has never been
tested in court, and may be subject to dispute. Additionally,
persons engaged in gaming activities, including Lakes, are
subject to the provisions of tribal ordinances and regulations
on gaming. These ordinances are subject to review by NIGC under
certain standards established by the IGRA.
</DIV>

<P align="center" style="font-size: 10pt;">15

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Non-gaming Regulations</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company and its subsidiaries are subject to certain federal,
state, and local safety and health laws, regulations and
ordinances that apply to non-gaming businesses generally, such
as the Clean Air Act, Clean Water Act, Occupational Safety and
Health Act, Resource Conservation Recovery Act and the
Comprehensive Environmental Response, Compensation and Liability
Act. The Company believes that it is currently in material
compliance with such regulations. The coverage and attendant
compliance costs associated with such laws, regulations and
ordinances may result in future additional cost to the
Company&#146;s operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Intellectual Property</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Trademarks</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has several pending applications for registration of marks
used in connection with casino table games, but intends to
pursue registration under only two applications relating to the
mark FOUR THE
MONEY<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant:SMALL-CAPS">tm</FONT></SUP>,
filed on September&nbsp;10, 2004 and November&nbsp;18, 2004. On
August&nbsp;1, 2005, Lakes filed an application for registration
of the service mark CARLOS
SOPRANO&#146;S<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant:SMALL-CAPS">tm</FONT></SUP>
to be used in connection with restaurant and related
entertainment services.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Patents</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes owns several United States patents for various casino
games sold by the Company. These patents expire at various times
over the next 10 to 20&nbsp;years. Lakes also owns three pending
patent applications for games.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Licenses</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes entered into a license agreement with Sklansky Games, LLC,
dated May&nbsp;17, 2004 under which the Company acquired an
option to obtain an exclusive worldwide, royalty-bearing license
to all patent, copyright and other intellectual property rights
related to a casino table game developed by Sklansky Games, LLC,
subject to certain marketing restrictions. This option also
includes the right to use the trademark ALL-IN HOLD&#146;EM
POKER<SUP style="font-size: 85%; vertical-align: text-top"><FONT style="font-variant:SMALL-CAPS">tm.</FONT></SUP>
During the fourth quarter of 2004, Lakes exercised its option by
paying $25,000 to Sklansky Games, LLC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes entered into a license agreement with WPTE, dated
May&nbsp;17, 2004, which gives the Company exclusive worldwide,
royalty-bearing license to use the name &#147;World Poker
Tour&#148;, a tutorial video and the trademark WORLD POKER TOUR
and Design in connection with any casino table game or
video-enhanced table game used in any legal commercial gaming
establishment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Both agreements will remain in effect as long as Lakes pays
minimum annual performance royalty payments, as defined in the
agreements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Real Estate Holdings</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes formed a joint venture with another company to develop
approximately 2000&nbsp;acres owned by the joint venture in
Eastern San&nbsp;Diego County. This land was sold during the
first quarter of fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has held several parcels of land in Las Vegas. In 2001,
the Company transferred title and ownership obligations of the
Polo Plaza shopping center property to Metroflag Polo, LLC. In
conjunction with this transaction, Lakes transferred to
Metroflag BP, LLC, rights to and obligations of the adjacent
Travelodge property. These transactions have been restructured
since the transfer. Lakes received final payments related to
these transactions during July 2005. See Notes&nbsp;7 and 8 to
the Consolidated Financial Statements included in Item&nbsp;8.
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Employees</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At November&nbsp;15, 2005, Lakes had approximately
39&nbsp;full-time employees. WPTE had approximately
79&nbsp;full-time employees. Lakes believes its relations with
employees are satisfactory.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has assembled a strong team of gaming industry
experts, well-versed in all aspects of casino development,
construction and management, many of whom were involved with the
success of Grand Casinos. The Lakes&#146; team has individual
specialists on staff that mirrors each of the functional areas
found in a casino, including the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Gaming Operations</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Construction&nbsp;&#38; Development</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Finance/ Accounting</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Legal/ Regulatory</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Security</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Systems/ IT</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Food&nbsp;&#38; Beverage</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Retail</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Marketing</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Human Resources</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; management believes this team represents a valuable
asset that provides a competitive advantage in creating and
enhancing relationships with Indian tribes in the Indian casino
business and in the pursuit of non-Indian casino opportunities.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Website and Available Information</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our website is located at <U>www.lakesentertainment.com.</U>
Information on the website does not constitute part of the
Annual Report on Form&nbsp;10-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We make available, free of charge, our Annual Reports on
Form&nbsp;10-K, our Quarterly Reports on Form&nbsp;10-Q, our
Current Reports on Form&nbsp;8-K and amendments to such reports
filed or furnished pursuant to Section&nbsp;13(a) or 15(d) of
the Securities and Exchange Act of 1934 as soon as reasonably
practicable after such forms are filed with or furnished to the
SEC. Copies of these documents are available to our shareholders
at our website or upon written request to our Chief Financial
Officer at 130 Cheshire Lane, Suite&nbsp;101, Minnetonka, MN
55305.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM 1A.</B></TD>
    <TD>
    <B><I>RISK FACTORS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>In addition to factors discussed elsewhere in this Annual
Report on Form&nbsp;10-K, the following are important factors
that could cause actual results or events to differ materially
from those contained in any forward-looking statement made by or
on behalf of us.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Our common stock was delisted from the Nasdaq National Market
effective August&nbsp;10, 2005 and there is no assurance that
our common stock will be re-listed.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We received a Nasdaq Staff Determination letter on
April&nbsp;20, 2005, indicating that we were not compliant with
Nasdaq listing standards because we did not timely file our
Annual Report on Form&nbsp;10-K for the year ended
January&nbsp;2, 2005 and our Quarterly Report on Form&nbsp;10-Q
for the fiscal quarter ended April&nbsp;3, 2005 with the United
States Securities and Exchange Commission, referred to as the
SEC. As a result, our common stock was subject to delisting from
the Nasdaq National Market. The delisting notification is
standard procedure when a Nasdaq listed company fails to
complete a required filing in a timely manner. On August&nbsp;9,
2005, we received notice from the Nasdaq Stock Market Listing
Qualifications Department that the Nasdaq Listing Qualifications
Panel determined to delist our common stock from the Nasdaq
National Market effective as of the opening of business on
August&nbsp;10, 2005.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will apply for re-listing of our common stock with the Nasdaq
Stock Market Listing Qualifications Department once we become
current with the Nasdaq Marketplace
Rule&nbsp;No.&nbsp;4310(c)(14). There can be no assurance that
the Panel will grant our request for re-listing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The completion of our planned Indian and non-Indian casino
development projects may be significantly delayed or prevented
due to a variety of factors, many of which are beyond our
control.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although we and certain members of our management team have
experience developing and managing casinos owned by Indian
tribes and located on Indian land, neither we nor any of these
individuals has developed or managed a casino in the States of
California, Michigan, or Oklahoma. In addition, the gaming
industry in each of the locations where we plan to develop and
manage casinos has a limited operating history and faces several
legal and procedural challenges that will need to be resolved
prior to the commencement of our development activities and the
opening and operation of the respective casinos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The opening of each of our proposed facilities will be
contingent upon, among other things, the completion of
construction, hiring and training of sufficient personnel and
receipt of all regulatory licenses, permits, allocations and
authorizations. The scope of the approvals required to construct
and open these facilities will be extensive, and the failure to
obtain such approvals could prevent or delay the completion of
construction or opening of all or part of such facilities or
otherwise affect the design and features of the proposed casinos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No assurances can be given that once a schedule for such
construction and development activities is established, such
development activities will begin or will be completed on time,
or any other time, or that the budget for these projects will
not be exceeded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the regulatory approvals necessary for the
construction and operation of casinos are often challenged in
litigation brought by government entities, citizens groups and
other organizations and individuals. Such litigation can
significantly delay the construction and opening of casinos.
Certain of our casino projects have been significantly delayed
as a result of such litigation, and there is no assurance that
the litigation can be successfully resolved or that our casino
projects will not experience further significant delays before
resolution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Major construction projects entail significant risks, including
shortages of materials or skilled labor, unforeseen engineering,
environmental and/or geological problems, work stoppages,
weather interference, unanticipated cost increases and
non-availability of construction equipment. These factors or
delays or difficulties in obtaining any of the requisite
licenses, permits, allocations and authorizations from
regulatory authorities could increase the total cost, delay or
prevent the construction or opening of any of these planned
casino developments or otherwise affect their design. In
addition, once developed, no assurances can be given that we
will be able to manage these casinos on a profitable basis or to
attract a sufficient number of guests, gaming customers and
other visitors to make the various operations profitable
independently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With each project we are subject to the risk that our investment
may be lost if the project cannot obtain adequate financing to
complete development and open the casino successfully. In some
cases, we may be forced to provide more financing than we
originally planned in order to complete development, increasing
the risk to us in the event of a default by the casino.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Any significant delay in, or non-completion of, our planned
Indian and non-Indian casino development projects could have a
material adverse effect on our profitability.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Since the expiration of our management contract for Grand Casino
Coushatta (the last remaining Indian-owned casino managed by us)
on January&nbsp;16, 2002, we have generated no revenue from our
casino management activities. Given the absence of current
casino management-related operating revenue with which to offset
the investment costs associated with our current or future
casino development projects, delays in the completion of our
current development projects, or the failure of such projects to
be completed at all, may cause our operating results to
fluctuate significantly and may adversely affect our
profitability. In addition, because our future growth in
revenues and our ability to generate profits will depend to a
large extent on our ability to increase the number of our
managed casinos or develop new business opportunities, the
delays in the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
completion or the non-completion of our current development
projects may adversely affect our ability to realize future
growth in revenues and future profits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The termination of our management contracts and consulting
agreements with Indian tribes may have a material adverse effect
on our results of operations and financial condition.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The terms of our current management contracts and consulting
agreements provide that such contracts may be terminated under
certain circumstances, including without limitation, upon the
failure to obtain NIGC approval for the project, the loss of
requisite gaming licenses, or an exercise by a tribe of its
buyout option. Without the realization of new business
opportunities or new management contracts or consulting
agreements, management contract or consulting agreement
terminations could have a material adverse effect on our results
of operations and financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>If our current casino development projects are not completed
or fail to successfully compete once completed, we may lack the
funds to compete for and develop future gaming or other business
opportunities which may have a material adverse effect on our
results of operations.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The gaming industry is highly competitive. Gaming activities
include traditional land-based casinos; river boat and dockside
gaming; casino gaming on Indian land; state-sponsored lotteries
and video poker in restaurants, bars and hotels; pari-mutuel
betting on horse racing and dog racing; sports bookmaking; and
card rooms. The casinos to be managed or owned by us compete,
and will in the future compete, with all these forms of gaming,
and will compete with any new forms of gaming that may be
legalized in additional jurisdictions, as well as with other
types of entertainment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We also compete with other gaming companies for opportunities to
acquire legal gaming sites in emerging and established gaming
jurisdictions and for the opportunity to manage casinos on
Indian land. Many of our competitors have more personnel and may
have greater financial and other resources than us. Such
competition in the gaming industry could adversely affect our
ability to attract customers which would adversely affect our
operating results. In addition, further expansion of gaming into
new jurisdictions could also adversely affect our business by
diverting customers from our managed casinos to competitors in
such jurisdictions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>We could be prevented from completing our current casino
development projects or pursuing future development projects due
to changes in the laws, regulations and ordinances (including
tribal or local laws) that apply to gaming facilities or the
inability of us or our key personnel, significant shareholders
or joint venture partners to obtain or retain gaming regulatory
licenses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The ownership, management and operation of gaming facilities are
subject to extensive federal, state, provincial, tribal and/or
local laws, regulations and ordinances, which are administered
by the relevant regulatory agency or agencies in each
jurisdiction. These laws, regulations and ordinances vary from
jurisdiction to jurisdiction, but generally concern the
responsibility, financial stability and character of the owners
and managers of gaming operations as well as persons financially
interested or involved in gaming operations, and often require
such parties to obtain certain licenses, permits and approvals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The rapidly-changing political and regulatory environment
governing the gaming industry (including gaming operations which
are conducted on Indian land) makes it impossible for us to
accurately predict the effects that an adoption of or changes in
the gaming laws, regulations and ordinances will have on us.
However, the failure of us, or any of our key personnel,
significant shareholders or joint venture partners, to obtain or
retain required gaming regulatory licenses could prevent us from
expanding into new markets, prohibit us from generating revenues
in certain jurisdictions, and subject us to sanctions and fines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The political and regulatory environment in which we operate,
including with respect to gaming activities on Indian land, is
discussed in greater detail in this Annual Report on
Form&nbsp;10-K under the caption &#147;Business-Regulation&#148;
in Item&nbsp;1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>If the NIGC elects to modify the terms of our management
contracts with Indian tribes or void such contracts altogether,
our revenues from management contracts may be reduced or
eliminated.</B>
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The NIGC has the power to require modifications to Indian
management contracts under certain circumstances or to void such
contracts or ancillary agreements including loan agreements if
the management company fails to obtain requisite approvals or to
comply with applicable laws and regulations. The NIGC has the
right to review each contract and has the authority to reduce
the term of a management contract or the management fee or
otherwise require modification of the contract, which could have
an adverse effect on us. Currently, only the Shingle Springs
management contract has been approved by the NIGC. The other
management contracts have not received final approval by the
NIGC and may require modification prior to receiving approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>If Indian tribes default on their repayment obligations or
wrongfully terminate their management contracts with us, we may
be unable to collect the amounts due.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have made, and may make, substantial loans to tribes for the
construction, development, equipment and operations of casinos
managed by us. Our only recourse for collection of indebtedness
from a tribe or money damages for breach or wrongful termination
of a management contract is from revenues, if any, from casino
operations. We have subordinated, and may in the future
subordinate, the repayment of loans made to a tribe and other
distributions due from a tribe (including management fees) in
favor of other obligations of the tribe to other parties related
to the casino operations. Accordingly, in the event of a default
by a tribe under such obligations, our loans and other claims
against the tribe will not be repaid until such default has been
cured or the tribe&#146;s senior casino-related creditors have
been repaid in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>A deterioration of our relationship with an Indian tribe
could cause delays in the completion of a casino development
project with that tribe or even force us to abandon a casino
development project altogether.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Good personal and professional relationships with Indian tribes
and their officials are critical to our proposed and future
Indian-related gaming operations and activities, including our
ability to obtain, develop and effectuate management and other
agreements. As sovereign nations, Indian tribes establish their
own governmental systems under which tribal officials or bodies
representing a tribe may be replaced by appointment or election
or become subject to policy changes. Replacements of tribe
officials or administrations, changes in policies to which a
tribe is subject, or other factors that may lead to the
deterioration of our relationship with a tribe may cause delays
in the completion of a development project with that tribe or
prevent the project&#146;s completion altogether, which may have
an adverse effect on the results of our operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>If funds from our operations are insufficient to support our
cash requirements and we are unable to obtain additional
financing in order to satisfy these requirements we may be
forced to delay, scale back or eliminate some of our expansion
and development goals, or cease our operations entirely.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will require additional capital through either public or
private financings to meet operating expenses during the
remainder of 2005 and 2006 and we are currently considering
various financing alternatives. We will also need additional
financing to meet our obligations related to our casino projects
as soon as regulatory approvals are received and construction
can begin. Such financings may not be available when needed on
terms acceptable to us or at all. Moreover, any additional
equity financings may be dilutive to our shareholders, and any
debt financing may involve additional restrictive covenants. An
inability to raise such funds when needed might require us to
delay, scale back or eliminate some of our expansion and
development goals, or might require us to cease our operations
entirely. Our financial condition and resources are discussed in
greater detail in Item&nbsp;7 &#147;Management&#146;s Discussion
and Analysis of Financial Condition and Results of
Operations&#148; of this Annual Report on Form&nbsp;10-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the construction of our Indian casino projects may
depend on the ability of the tribes to obtain financing for the
projects. If such financing cannot be obtained on acceptable
terms, it may not be possible to complete these projects. In
order to assist the tribes, we may be required to guarantee the
tribes&#146; debt financing or otherwise provide support for the
tribes&#146; obligations. Any guarantees by us or similar
off-balance sheet liabilities, if any, will increase our
potential exposure in the event of a default by any of these
tribes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the Pokagon Casino project, we have agreed to finance all
phases of the project entirely from our own funds if financing
at an interest rate of 13% or less is not available from the
capital markets. If this occurs and
</DIV>

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<DIV align="left" style="font-size: 10pt;">
we are required to provide all financing, this would be an
additional commitment of up to approximately $54&nbsp;million.
While it currently appears that third-party financing will be
available for this project, there can be no assurance
third-party financing will be available and that we will not be
required to provide this additional financing.
</DIV>

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<B>If one or more of our Indian casino projects fail to open,
the recorded assets related to those projects will be impaired
and there will be a material adverse impact on our financial
results.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We record assets related to Indian casino projects on our
consolidated balance sheet as long-term assets related to Indian
casino projects. The majority of our long-term assets related to
Indian casino projects are in the form of loans to the tribes
pursuant to our financing agreements with varying degrees of
collection risk, and with repayment often dependent on the
operating performance of each gaming property. These loans are
included as notes receivable on the consolidated balance sheet,
under the category &#147;long-term assets related to Indian
casino projects&#148;. At January&nbsp;2, 2005, we had
$125.6&nbsp;million in long-term assets related to Indian casino
projects, of which $67.1&nbsp;million was in the form of notes
receivable which are recorded at fair value on the consolidated
balance sheet. The notes receivable represented approximately
32% of our total assets. See Note&nbsp;5 to the Consolidated
Financial Statements included in Item&nbsp;8 of this Annual
Report on Form&nbsp;10-K. The loans are made to Indian tribes
for pre-construction financing related to gaming properties
being developed by us. All of the loans are subject to varying
degrees of collection risk and there is no established market.
For the loans representing indebtedness of Indian tribes, the
repayment terms are specific to each tribe and are largely
dependent upon the operating performance of each gaming
property. Repayments of such loans are required to be made only
if distributable profits are available from the operation of the
related casinos. Repayments are also the subject of certain
distribution priorities specified in the management contracts.
In addition, repayment to us of the loans and the manager&#146;s
fees under our management contracts are subordinated to certain
other financial obligations of the respective tribes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in long-term assets related to Indian casino projects
are intangible assets related to the acquisition of the
management contract, land held for development and other costs
incurred in connection with opening the casino of
$41.1&nbsp;million, $15.4&nbsp;million and $2.0&nbsp;million,
respectively, at January&nbsp;2, 2005. It is possible that one
or more of our Indian casino projects will fail to open, which
will render the majority of the assets related to the Indian
casino project impaired. See accounting policy within
Note&nbsp;1 of the Consolidated Financial Statements included in
Item&nbsp;8 of the Annual Report on Form&nbsp;10-K. During the
second quarter of fiscal 2004, related to our decision to
discontinue funding the Nipmuc Nation project in Massachusetts,
we recorded an impairment charge of $5.8&nbsp;million related to
long-term assets related to the Nipmuc Nation project. We also
recorded an unrealized loss on notes receivable of
$0.8&nbsp;million as a result of determining the fair value of
the note receivable from the Nipmuc Nation to be $0. The
impairment and unrealized loss was recorded as a result of the
BIA, in June 2004, denying the Nipmuc Nation status as an Indian
Tribe and sovereign government within the meaning of federal
law. See Item&nbsp;7 &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of
Operations&nbsp;&#151; Description of each Indian casino project
and evaluation of critical milestones &#151; Nipmuc
Nation.&#148; If there are significant losses in the future
relating to impairment of value of the long-term assets related
to Indian casino projects, this could have a material adverse
effect on our results of operations and financial condition. As
our existing casino projects continue development or we enter
into new business arrangements, we expect to make additional
loans to Indian tribes and other parties in the future, which
will be subject to the risks described above.
</DIV>

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<B>During September 2005, legislation was proposed to amend the
Gambling Devices Act of 1962 which could negatively affect
projected management/consulting fees from the Shingle Springs
and Jamul Casino projects.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During September 2005, the Department of Justice proposed
legislation that would amend the Gambling Devices Act of 1962
(commonly referred to as the Johnson Act). The proposal seeks to
clarify the difference between Class&nbsp;II and Class&nbsp;III
machines. It prohibits tribes from operating games that resemble
slot machines without a tribal-state compact. The legislation
proposes to amend the Johnson Act in three significant ways.
First, the definition of &#147;gaming device&#148; in
Section&nbsp;1171 of the Johnson Act would be amended to clarify
how the element of chance can be provided in a gaming device.
Second, Section&nbsp;1172 of the Johnson Act would be
</DIV>

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<DIV align="left" style="font-size: 10pt;">
amended to clarify that certain &#147;qualifying&#148;
technologic aids could be transported and used in Indian
country. Third, a new Section&nbsp;(d)&nbsp;would be added to
Section&nbsp;1175 of the Johnson Act to provide an express
exception to allow technological devices to be used in
Class&nbsp;II gaming.
</DIV>

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This is only proposed legislation, but if passed it could affect
our planned casino operations for the Shingle Springs Tribe and
the Jamul Tribe and distributable management fees to us.
Class&nbsp;II machines are planned to be used at the Shingle
Springs and Jamul Casinos. If the legislation were passed there
is no assurance that substitute allowable Class&nbsp;II machines
would result in the same projected operating results as the
Class&nbsp;II machines currently planned to be used and in use
by the above-mentioned projects. If this were to occur it could
have a material adverse effect on our results of operations and
financial conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Our entry into new businesses may result in future losses.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have announced that part of our strategy involves
diversifying into other businesses such as developing and owning
our own casino and the development and marketing of our own
table games. Such businesses involve business risks separate
from the risks involved in casino development and these
investments may result in future losses to us. These risks
include but are not limited to negative cash flow, initial high
development costs of new products and/or services without
corresponding sales pending receipt of corporate and regulatory
approvals, market introduction and acceptance of new products
and/or services, and obtaining regulatory approvals required to
conduct the new businesses. There is no assurance that
diversification activities will successfully add to our future
revenues and income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>We cannot guarantee the financial results of the expansion of
the World Poker Tour business, which may negatively impact our
financial results.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005, we, through our subsidiary Lakes
Poker Tour, LLC, owned approximately 64% of the outstanding
common stock of WPT Enterprises, Inc., referred to as WPTE. As a
result, our consolidated results include WPTE operations. In
fiscal 2003 and fiscal 2004, all of our consolidated revenues of
$4.3&nbsp;million and $17.6&nbsp;million, respectively, were
derived entirely from the WPTE business, mainly from license
fees for United States telecast of World Poker Tour television
episodes. WPTE has an agreement for a third season with the TRV,
for broadcast of the World Poker Tour series on cable television
which began airing in the fourth quarter of 2004 and continued
airing in 2005. TRV exercised its option for Season Four in
March 2005 and has options for three additional seasons.
WPTE&#146;s revenues were $12.8&nbsp;million for the nine months
ended October&nbsp;2, 2005 from the delivery of thirteen Season
Three episodes and one Season Four episode, international
television licensing of the World Poker Tour&#146;s Season One
and Two and product licensing fees. However, we can provide no
assurance that WPTE will achieve its forecasted revenues, that
WPTE will be able to expand its business, or that WPTE&#146;s
operations will positively impact our financial results because
WPTE&#146;s business is subject to many risks and uncertainties.
The risks include, but are not limited to, WPTE&#146;s short
operating history, WPTE&#146;s dependence on its agreements with
TRV, continued public acceptance of the World Poker Tour
programming and brand, protection of WPTE&#146;s intellectual
property rights, and WPTE&#146;s ability to successfully expand
into new and complementary business, including internet gaming.
</DIV>

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<B>We are dependent on the ongoing services of our Chairman and
Chief Executive Officer, Lyle Berman, and the loss of his
services could have a detrimental effect on the pursuit of our
business objectives, profitability and the price of our common
stock.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our success will depend largely on the efforts and abilities of
our senior corporate management, particularly Lyle Berman, our
Chairman and Chief Executive Officer. The loss of the services
of Mr.&nbsp;Berman or other members of senior corporate
management could have a material adverse effect on us. We do not
have an employment agreement with Mr.&nbsp;Berman or a key man
life insurance policy on him.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Our Articles of Incorporation and Bylaws may discourage
lawsuits and other claims against our directors.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Articles of Incorporation and Bylaws provide, to the fullest
extent permitted by Minnesota law, that our directors shall have
no personal liability for breaches of their fiduciary duties to
us. In addition, our Bylaws
</DIV>

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<DIV align="left" style="font-size: 10pt;">
provide for mandatory indemnification of directors and officers
to the fullest extent permitted by Minnesota law. These
provisions reduce the likelihood of derivative litigation
against our directors and may discourage shareholders from
bringing a lawsuit against directors for a breach of their duty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Our Articles of Incorporation contain provisions that could
discourage or prevent a potential takeover, even if the
transaction would be beneficial to our shareholders.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Articles of Incorporation authorize our Board of Directors
to issue up to 200&nbsp;million shares of capital stock, the
terms of which may be determined at the time of issuance by the
Board of Directors, without further action by our shareholders.
The Board of Directors may authorize additional classes or
series of shares that may include voting rights, preferences as
to dividends and liquidation, conversion and redemptive rights
and sinking fund provisions that could adversely affect the
rights of holders of our common stock and reduce the value of
our common stock. If our Board of Directors authorize the
issuance of preferred stock in the future, this authorization
could make it more difficult for a third party to acquire us,
even if a majority of our holders of common stock approved of
such acquisition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The price of our common stock may be adversely affected by
significant price fluctuations due to a number of factors, many
of which are beyond our control.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The market price of our common stock has experienced significant
fluctuations and may continue to fluctuate in the future. The
market price of our common stock may be significantly affected
by many factors, including:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    obtaining all necessary regulatory approvals for our casino
    development projects;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    litigation surrounding one or more of our casino developments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in requirements or demands for our services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    the announcement of new products or product enhancements by us
    or our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    technological innovations by us or our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    quarterly variations in our or our competitors&#146; operating
    results;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in prices of our or our competitors&#146; products and
    services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in our revenue and revenue growth rates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    changes in earnings or (loss) per share estimates by market
    analysts or speculation in the press or analyst
    community;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    general market conditions or market conditions specific to
    particular industries.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>We have issued numerous options to acquire our common stock
that could have a dilutive effect on our common stock.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005, we had options outstanding to
acquire 5.2&nbsp;million shares of our common stock, exercisable
at prices ranging from $3.27 to $11.04&nbsp;per share, with a
weighted average exercise price of approximately $5.72&nbsp;per
share. During the terms of these options, the holders will have
the opportunity to profit from an increase in the market price
of our common stock with resulting dilution to the holders of
shares who purchased shares for a price higher than the
respective exercise or conversion price. In addition, the
increase in the outstanding shares of our common stock as a
result of the exercise or conversion of these options could
result in a significant decrease in the percentage ownership of
our common stock by the purchasers of its common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>The market price of our common stock may be reduced by future
sales of our common stock in the public market.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sales of substantial amounts of our common stock in the public
market that are not currently freely tradable, or even the
potential for such sales, could have an adverse effect on the
market price for shares of our common stock and could impair the
ability of purchasers of our common stock to recoup their
investment or
</DIV>

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<DIV align="left" style="font-size: 10pt;">
make a profit. As of January&nbsp;2, 2005, these shares consist
of approximately 6.2&nbsp;million shares beneficially owned by
our executive officers and directors.
</DIV>

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<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM 1B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>UNRESOLVED STAFF COMMENTS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;2.</B></TD>
    <TD>
    <B><I>PROPERTIES</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Corporate Office Facility</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;2, 2002, as per the terms of an agreement with
Grand Casinos, Lakes purchased the corporate office building for
$6.4&nbsp;million, which is included as part of property and
equipment on the accompanying consolidated balance sheets as of
January&nbsp;2, 2005 and December&nbsp;28, 2003. Lakes occupies
approximately 22,000&nbsp;square feet of the 65,000&nbsp;square
foot building and has leased the remaining space to outside
tenants.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;3.</B></TD>
    <TD>
    <B><I>LEGAL PROCEEDINGS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Slot Machine Litigation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1994, William H. Poulos filed a class-action lawsuit in the
United States District Court for the Middle District of Florida
against various parties, including Lakes&#146; predecessor,
Grand Casinos, and numerous other parties alleged to be casino
operators or slot machine manufacturers. This lawsuit was
followed by several additional lawsuits of the same nature
against the same, as well as additional defendants, all of which
were subsequently consolidated into a single class-action
pending in the United States District Court for the District of
Nevada. Following a court order dismissing all pending pleadings
and allowing the plaintiffs to re-file a single complaint, a
complaint has been filed containing substantially identical
claims, alleging that the defendants fraudulently marketed and
operated casino video poker machines and electronic slot
machines, and asserting common law fraud and deceit, unjust
enrichment and negligent misrepresentation and claims under the
federal Racketeering-Influenced and Corrupt Organizations Act.
Various motions were filed by the defendants seeking to have
this new complaint dismissed or otherwise limited. In December
1997, the Court, in general, ruled on all motions in favor of
the plaintiffs. The plaintiffs then filed a motion seeking class
certification and the defendants opposed it. In June 2002, the
District Court entered an order denying class certification. On
August&nbsp;10, 2004, the Ninth Circuit Court of Appeals
affirmed the District Court&#146;s denial of class
certification. On September&nbsp;14, 2005, the United States
District Court for the District of Nevada granted the
defendants&#146; motions for summary judgment, and judgment was
entered against the plaintiffs on that same day. The defendants
have also filed motions seeking the payment of costs and
attorney fees and defendants have until November&nbsp;28, 2005
to complete their briefing on the motions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has not recorded any liability for this matter as
currently an estimate of any possible loss cannot be made.
Management currently believes the final outcome of this matter
is not likely to have a material adverse effect upon the
Company&#146;s consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Willard Eugene Smith Litigation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On October&nbsp;24, 2003, Lakes announced that it had been named
as one of a number of defendants in a counterclaim filed in
state court in Harris County, Texas by Willard Eugene Smith
involving Kean Argovitz Resorts, LLC (KAR)&nbsp;and related
persons and entities. In the counterclaim, Smith asserted that,
under an alleged oral agreement with Kevin Kean, he is entitled
to a percentage of fees to be received by the KAR Entities or
their principals relating to the Shingle Springs and Jamul
Casinos that Lakes&#146; subsidiaries are developing in
California. Smith also sought recovery of damages through the
remedy of either attachment of the management fees generated
from the projects or avoidance of buyout agreements between
Lakes and KAR based on their conduct with respect to the alleged
agreement. Trial for the above litigation commenced in April
2005. In May 2005, the jury in the state court case reached a
verdict in favor of Lakes and the other defendants. The jury in
the case found that there was no agreement with Smith relating
to the ongoing
</DIV>

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<DIV align="left" style="font-size: 10pt;">
monthly payments or the percentage of management fees. The jury
also found that Smith was not entitled to damages. As a result
of the verdict against Smith, a second phase of the trial, which
would have sought to recover from Lakes any damages awarded,
will not be necessary. Smith filed a Motion for a Partial
Retrial on the issue of damages which was denied automatically
by operation of law. Smith failed to timely file an appeal to
the Texas Court of Appeals, so the judgement has become final.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>El Dorado County, California Litigation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;3, 2003, El Dorado County filed an action in the
Superior Court of the State of California, seeking to prevent
the construction of a highway interchange that was approved by a
California state agency. The action, which was consolidated with
a similar action brought by Voices for Rural Living and others,
does not seek relief directly against Lakes. However, the
interchange is necessary to permit the construction of a casino
to be developed and managed by Lakes through a joint venture.
The casino will be owned by the Shingle Springs Tribe. The
matter was tried to the court on August&nbsp;22, 2003. On
January&nbsp;2, 2004, Judge Lloyd G. Connelly, Judge of the
Superior Court of the State of California, issued his ruling on
the matter denying the petition in all respects except one. As
to the one exception, the court sought clarification as to
whether the transportation conformity determination used to
determine the significance of the air quality impact of the
interchange operations considered the impact on attainment of
the state ambient air quality standard for ozone. The California
Department of Transportation (CalTrans) prepared and filed the
clarification addendum sought by the court. Prior to the
court&#146;s determination of the adequacy of the clarification,
El Dorado County and Voices for Rural Living appealed Judge
Connelly&#146;s ruling to the California Court of Appeals on all
of the remaining issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A ruling with respect to the addendum was issued June&nbsp;21,
2004 by the Superior Court of the State of California, County of
Sacramento. The ruling indicated that the addendum provided to
the court by CalTrans did not provide a quantitative showing to
satisfy the court&#146;s earlier request for a clarification on
meeting the state ambient ozone standard. The court recognized
that the information provided by CalTrans does qualitatively
show that the project may comply with the state standard, but
concluded that a quantitative analysis is necessary even though
the court recognized that the methodology for that analysis
&#147;is not readily apparent&#148;. In addition, the ruling
specifically stated, &#147;Moreover, such methodology appears
necessary for the CEQA analysis of transportation projects
throughout the state, including transportation projects for
which respondents (i.e., CalTrans) have approval
authority.&#148; CalTrans, the Shingle Springs Tribe and Lakes
responded to the court with a revised submission in August 2004.
Representatives of the California Air Resources Board and the
Sacramento Area Council of Governments filed declarations
supporting the revised submission to the court. Opposition to
that revised submission was filed, a hearing on the revised
submission took place on August&nbsp;20, 2004 and the court
again found the revised submission of CalTrans, the Shingle
Springs Tribe and Lakes to be inadequate. That ruling was
separately appealed to the California Court of Appeals (the
&#147;Court&#148;) and an oral argument for these appeals and
the appeals of El Dorado County and Voices of Rural Living was
held before the Court on August&nbsp;29, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Court issued its decision on the appeals on November&nbsp;8,
2005. The Court ruled in favor of CalTrans&#146; appeal,
rejecting the El Dorado County&#146;s argument that the
transportation conformity analysis did not conform to state
standards. The Court also rejected all but two of the legal
claims asserted in the appeal by El&nbsp;Dorado County and
Voices for Rural Living against the environmental impact report
(&#147;EIR&#148;) prepared by CalTrans for the interchange that
will connect Highway 50 to the Shingle Springs Rancheria. For
the remaining two issues, the Court held that CalTrans must
supplement its environmental analysis by adding some discussion
to the air quality chapter to further explain the project&#146;s
contribution to overall vehicular emissions in the region, and
that CalTrans also must evaluate whether a smaller casino and
hotel would reduce environmental impacts. The Court acknowledged
CalTrans lacks jurisdiction to require the Shingle Springs Tribe
to develop a smaller casino, but nevertheless required some
discussion of this alternative in the interchange EIR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has not recorded any liability for this matter as
management currently believes that the Court&#146;s rulings will
ultimately allow the project to commence. However, there can be
no assurance that the
</DIV>

<P align="center" style="font-size: 10pt;">25

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<DIV align="left" style="font-size: 10pt;">
final outcome of this matter is not likely to have a material
adverse effect upon the Company&#146;s consolidated financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Grand Casinos, Inc. Litigation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the establishment of Lakes as a public
corporation on December&nbsp;31, 1998, via a distribution of its
common stock to the shareholders of Grand Casinos, the Company
and Grand Casinos entered into an agreement governing the
sharing or allocation of tax benefits accruing to Grand Casinos
and certain affiliated companies of Grand Casinos. Lakes
asserted claims against Grand Casinos for amounts to which Lakes
believed it was entitled under the tax sharing agreement. On
December&nbsp;1, 2004, Lakes entered into a settlement agreement
with Grand Casinos and its parent company, Park Place
Entertainment Corporation (now known as &#147;Caesars
Entertainment, Inc.&#148; or &#147;Caesars&#148;), pursuant to
which Lakes received $11.3&nbsp;million in December 2004 in
satisfaction of its prior claim and its future rights to the tax
benefits that were the subject of the dispute. Lakes will be
required to provide reimbursement for its share of the
disallowed benefits. This settlement income has been recorded as
other income in the consolidated statement of earnings (loss)
for the year ended January&nbsp;2, 2005. Lakes has not recorded
any tax related to the settlement payment of $11.3&nbsp;million,
as Lakes believes this settlement is not taxable to Lakes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Louisiana Department of Revenue Litigation Tax Matter</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Louisiana Department of Revenue maintains a position that
Lakes owes additional Louisiana corporation income tax for the
period ended January&nbsp;3, 1999 and the tax years ended
December&nbsp;31, 1999 through December&nbsp;31, 2001 and
additional Louisiana corporation franchise tax for the tax years
ended December&nbsp;31, 2000 through December&nbsp;31, 2002.
This determination is the result of an audit of Louisiana tax
returns filed by Lakes for the tax periods at issue and relates
to the reporting of income earned by Lakes in connection with
the managing of two Louisiana-based casinos. On
December&nbsp;20, 2004, the Secretary of the Department of
Revenue of the State of Louisiana filed a petition to collect
taxes in the amount of $8.6&nbsp;million, excluding interest,
against Lakes in the
19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>&nbsp;Judicial
District Court, East Baton Rouge Parish, Louisiana, Docket
No.&nbsp;527596, Section&nbsp;23. In the petition to collect
taxes the Department of Revenue of the state of Louisiana
asserts that additional corporation income tax and corporation
franchise tax are due by Lakes for the taxable periods set forth
above. Lakes maintains that it has remitted the proper Louisiana
corporation income tax and Louisiana corporation franchise tax
for the taxable periods at issue. On February&nbsp;14, 2005,
Lakes filed an answer to the petition to collect taxes asserting
all proper defenses and maintaining that no additional taxes are
owed and that the petition to collect taxes should be dismissed.
Management intends to vigorously contest this action by the
Louisiana Department of Revenue. Lakes may be required to pay up
to the $8.6&nbsp;million assessment plus interest if Lakes is
not successful in this matter. The Company has recorded a
reserve related to this examination which is reflected as part
of income taxes payable on the Company&#146;s consolidated
balance sheets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WPTE litigation with TRV</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;19, 2005, WPTE filed suit in the California
Superior Court seeking to keep the Travel Channel from
interfering with WPTE&#146;s prospective contractual
relationship with third party networks in connection with the
sale of the broadcast rights to the PPT, and to clarify and
enforce WPTE&#146;s rights with respect to the WPT. Under
WPTE&#146;s existing agreement with TRV for the World Poker Tour
program (the &#147;WPT Agreements&#148;), TRV is afforded the
right to negotiate exclusively with WPTE with respect to certain
types of programming developed by WPTE during a 60&nbsp;day
period. Pursuant to the WPT Agreements, WPTE submitted the PPT
to TRV and began negotiations but failed to reach an agreement
with TRV within the allotted negotiation window. Consequently,
WPTE began discussions with other networks. While WPTE later
revived its attempts to reach a deal with TRV after TRV&#146;s
exclusive bargaining window had ended, WPTE ultimately received
an offer from ESPN. WPTE submitted this offer to TRV pursuant to
TRV&#146;s contractual last right to match the deal as specified
under the WPT Agreements. Thereafter, TRV sent letters to WPTE
and ESPN asserting, among other things, that WPTE was not
entitled to complete a deal for the PPT with a third party.
Following TRV&#146;s letters, WPTE filed suit on
September&nbsp;19, 2005, alleging that TRV breached the
</DIV>

<P align="center" style="font-size: 10pt;">26

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<DIV align="left" style="font-size: 10pt;">
WPT Agreements and interfered with WPTE&#146;s prospective
contractual relationship with ESPN, and seeking a judicial
declaration of WPTE&#146;s rights under the WPT Agreements to
produce non-World Poker Tour branded programs covering poker
tournaments. Subsequent to WPTE filing, ESPN withdrew its offer
to WPTE to acquire the broadcast rights to the PPT. On
September&nbsp;22, 2005, TRV and Discovery Communications, Inc.
filed an answer and cross-complaint and subsequently filed a
motion for judgment on the pleadings and an
&#147;anti-SLAPP&#148; motion, both of which were denied on
November&nbsp;10, 2005. Despite WPTE&#146;s dispute with TRV,
WPTE remains committed to fulfilling its obligations to TRV in
connection with the World Poker Tour series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Other Litigation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes and its subsidiaries are involved in various other
inquiries, administrative proceedings, and litigation relating
to contracts and other matters arising in the normal course of
business. While any proceeding or litigation has an element of
uncertainty, management currently believes that the final
outcome of these matters, including the matters discussed above,
is not likely to have a material adverse effect upon the
Company&#146;s consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;4.</B></TD>
    <TD>
    <B><I>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;II</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;5.</B></TD>
    <TD>
    <B><I>MARKET FOR REGISTRANT&#146;S COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes became a publicly held company effective December&nbsp;31,
1998. The common stock began trading on the Nasdaq National
Market under the symbol LACO on January&nbsp;4, 1999.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes received a Nasdaq Staff Determination letter on
April&nbsp;20, 2005, indicating that the Company was not
compliant with Nasdaq listing standards because Lakes did not
timely file its Annual Report on Form&nbsp;10-K for the year
ended January&nbsp;2, 2005 and its Quarterly Report on
Form&nbsp;10-Q for the fiscal quarter ended April&nbsp;3, 2005
with the SEC. As a result, Lakes&#146; common stock was subject
to delisting from the Nasdaq National Market. The delisting
notification is standard procedure when a Nasdaq listed company
fails to complete a required filing in a timely manner. On
August&nbsp;9, 2005, Lakes received notice from the Nasdaq Stock
Market Listing Qualifications Department that the Nasdaq Listing
Qualifications Panel determined to delist Lakes&#146; common
stock from the Nasdaq National Market effective as of the
opening of business on August&nbsp;10, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes will apply for re-listing of its common stock with the
Nasdaq Stock Market Listing Qualifications Department once Lakes
has become current with the Nasdaq Marketplace
Rule&nbsp;No.&nbsp;4310(c)(14). There can be no assurance that
the Panel will grant Lakes&#146; request for re-listing.
Subsequent to Lakes&#146; delisting from the Nasdaq National
Market quotations for Lakes&#146; common stock appear on the
Pink Sheets (a quotation service for subscribing market makers)
under the symbol LACO.
</DIV>

<P align="center" style="font-size: 10pt;">27

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The high and low sales prices per share of the Company&#146;s
common stock for each full quarterly period within the two most
recent fiscal years are indicated below, as reported on the
Nasdaq National Market:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>First</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Second</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Third</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fourth</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year Ended January&nbsp;2, 2005:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    High</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16.75</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Low</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Year Ended December&nbsp;28, 2003:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    High</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7.69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Low</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.58</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On November&nbsp;22, 2005, the last reported sale price for the
common stock was $8.05&nbsp;per share. As of October&nbsp;17,
2005, the Company had approximately 900&nbsp;shareholders of
record.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During April of 2004, the Company&#146;s Board of Directors
declared a two-for-one stock split, payable in the form of a
100% stock dividend on Lakes&#146; outstanding common stock. The
stock dividend was paid on May&nbsp;3, 2004 to shareholders of
record as of April&nbsp;26, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a result of the stock split, shareholders received one
additional share of common stock for every share they held on
the record date. Upon completion of the split, the number of
common shares outstanding was approximately 22.2&nbsp;million.
In connection with the stock split, the Company introduced a
direct registration program to provide for uncertified shares
through Wells Fargo Shareowner Services, the Company&#146;s
transfer agent and registrar. As a result, the additional shares
were issued in &#147;book-entry&#148; form without stock
certificates and are registered on the books of the Company
maintained by Wells Fargo Shareowner Services. All share and per
share data for periods prior to May&nbsp;3, 2004 have been
retroactively restated to give effect to the stock split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has never paid any cash dividends with respect to
its common stock and the current policy of the Board of
Directors is to retain any earnings to provide for the growth of
the Company. During the period Lakes was required to indemnify
Grand Casinos, as a subsidiary of Caesars, for certain specified
liabilities, Lakes agreed that it would not declare or pay any
dividends, make any distribution on account of Lakes&#146;
equity interests or otherwise purchase, redeem, defease or
retire for value any equity interest in Lakes without the
written consent of Caesars. This obligation terminated on
December&nbsp;28, 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The payment of cash dividends in the future, if any, will be at
the discretion of the Board of Directors and will depend upon
such factors as earnings levels, capital requirements, the
Company&#146;s overall financial condition and any other factors
deemed relevant by the Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No repurchases of Lakes&#146; common stock were made during the
fourth quarter of Lakes&#146; fiscal year ended January&nbsp;2,
2005.
</DIV>

<P align="center" style="font-size: 10pt;">28

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;6.</B></TD>
    <TD>
    <B><I>SELECTED FINANCIAL DATA</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Selected Financial Data presented below should be read in
conjunction with the Consolidated Financial Statements and notes
thereto included elsewhere in this Annual Report on
Form&nbsp;10-K, and in conjunction with &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations&#148; included in Item&nbsp;7 of this Annual Report
on Form&nbsp;10-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The selected consolidated statement of operations data of the
Company and the balance sheet data of the Company are derived
from the Company&#146;s Consolidated Financial Statements, as
revised to reflect the restatement as more fully discussed in
Note&nbsp;2 to the Consolidated Financial Statements
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Fiscal Years Ended or as of:</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jan.&nbsp;2,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dec.&nbsp;28,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dec.&nbsp;29,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dec.&nbsp;30,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Dec.&nbsp;31,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003*</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002*</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2001*</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2000*</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>(In millions, except per share amounts)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Results of Operations:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total operating income (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(13</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>47</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net earnings (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net earnings (loss) per share&nbsp;&#151; basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.18</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.71</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net earnings (loss) per share&nbsp;&#151; diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.18</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.09</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.71</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Balance Sheet:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents&nbsp;&#151; unrestricted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>209</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>212</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total debt</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shareholders&#146; equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>163</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>175</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    As restated, see discussion in Note&nbsp;2 to the Consolidated
    Financial Statements.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;7.</B></TD>
    <TD>
    <B><I>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations reflect the
adjustments relating to the restatement described in Note&nbsp;2
in the consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Overview</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes develops Indian-owned casino properties and intends to
manage such casinos when applicable regulatory approvals have
been received and we have satisfied other contingencies. Lakes
currently has development and management agreements with five
separate tribes for one new casino operation in Michigan, two in
California and with two tribes in Oklahoma for five various
casino projects. Lakes is also involved in other businesses,
including development of a non-Indian casino and the development
of new table games for licensing to casinos. In addition, as of
January&nbsp;2, 2005, Lakes owned approximately 64% of WPTE, a
separate publicly held media and entertainment company
principally engaged in the development, production and marketing
of gaming-themed televised programming, the licensing and sale
of branded products and the sale of corporate sponsorships.
Lakes&#146; consolidated financial statements include the
results of operations of WPTE, and in recent periods, all of
Lakes&#146; revenues have been derived from WPTE&#146;s business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Financial Overview</U></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In fiscal 2003 and fiscal 2004, all of Lakes&#146; consolidated
revenues have been derived from the WPTE business, mainly from
license fees for United States telecast of World Poker Tour
television episodes. License fees have depended on the number of
episodes delivered to TRV in a particular period. Revenues from
other parts of the WPTE business are relatively small but
continue to grow.
</DIV>

<P align="center" style="font-size: 10pt;">29

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; principal costs and expenses in each of those fiscal
years consisted of the following categories:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>WPTE-related costs and expenses.</I> WPTE production costs
    are generally deferred and matched with revenues from completed
    episodes. WPTE&#146;s gross margins were approximately 42% in
    2004 and 37% in the 2003 period. WPTE was formed in 2002 but did
    not begin to earn revenues until 2003. WPTE-related selling,
    general and administrative expenses increased significantly in
    2004 due to business development and costs of WPTE becoming an
    independent public company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Selling, general and administrative expenses from Lakes&#146;
    business activities.</I> These expenses have generally been
    flat, with fluctuations due primarily to litigation expenses.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Lakes&#146; impairment charges/write-downs.</I> Lakes has
    recorded net impairment charges/write-downs of
    $6.2&nbsp;million, $1.0&nbsp;million and $9.1&nbsp;million in
    2004, 2003 and 2002, respectively. These impairment
    charges/write-downs related to its long-term assets related to
    Indian casino projects and several real estate holdings that
    carried over from its spin-off from Grand Casinos on
    December&nbsp;31, 1998.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Currently, one uncertainty Lakes is facing is the timing of the
opening of the various casinos that Lakes has contracted with
Indian tribes to develop and manage. Each casino development
project faces unique challenges, including required regulatory
approvals and, in some cases, litigation and other challenges
brought by opposition groups to block development. Lakes will
not receive revenues from any project until these challenges are
overcome for that project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Critical Accounting Policies</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The significant accounting policies that Lakes believes are the
most critical to aid in fully understanding and evaluating its
reported financial results include the following: revenue
recognition, long-term assets related to Indian casino projects
and income taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Revenue recognition:</I> Revenue from the management of
Indian-owned casino gaming facilities is recognized in
accordance with our policy described below under the caption,
&#147;Accounting for long-term assets related to Indian casino
projects&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE domestic and international television license fee revenues
are recognized as earned in accordance with the American
Institute of Certified Public Accountants Statement of Position
(&#147;SOP&#148;) No.&nbsp;00-2, <I>Accounting by Producers or
Distributors of Films.</I> Revenue is recognized upon receipt
and acceptance of episodes by the ultimate customer once the
license period has begun. Currently, for international
television license fees, WPTE does not consider collectibility
to be reasonably assured until the distributor has received
payment. WPTE presents international distribution license fee
revenues net of the distributor&#146;s fees, as the distributor
is the primary obligor in the transaction with the ultimate
customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Product licensing revenues are recognized when the underlying
royalties from the sales of the related products are earned.
WPTE recognizes minimum revenue guarantees ratably over the term
of the license or as earned royalties based on actual sales of
the related products, if greater.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Host fee revenues paid by host casinos are recognized as
episodes are aired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sponsorship revenues are recognized as episodes are aired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Deferred Television Costs:</I> WPTE accounts for television
costs pursuant to SOP No.&nbsp;00-2. Television costs related to
WPTE&#146;s production of the World Poker Tour television series
are included in &#147;other current assets&#148; on the
Company&#146;s consolidated balance sheet. Television costs
include capitalizable direct costs, production overhead and
development costs and are stated at the lower of cost or net
realizable value based on anticipated revenue generated by the
episode once it has been delivered and accepted. WPTE has not
currently anticipated any revenues in excess of those subject to
existing contractual relationships. Capitalized television
production costs for each episode are expensed as revenues are
recognized upon delivery and acceptance of the completed episode.
</DIV>

<P align="center" style="font-size: 10pt;">30

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Accounting for long-term assets related to Indian casino
projects</U>:</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Notes&nbsp;Receivable</U>:</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes is involved as the exclusive developer and manager of
Indian-owned casino projects, all of which are in the
development phase as of January&nbsp;2, 2005. The Company has
formal procedures governing its evaluation of opportunities for
potential development projects that it follows before entering
into agreements to provide financial support for the development
of these properties. Lakes determines that there is probable
future economic benefit prior to recording any asset related to
the Indian casino project. No asset related to an Indian casino
project is recognized unless it is considered probable that the
project will be built and result in an economic benefit to Lakes
sufficient to recover the asset. Lakes initially evaluates the
following six factors involving critical milestones that affect
the probability of developing and operating a casino:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the U.S.&nbsp;Government&#146;s Bureau of Indian Affairs
    federally recognized the tribe as a tribe?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Does the tribe hold or have the right to acquire land to be
    used for the casino site?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the Department of the Interior put the land into trust
    for purposes of being used as a casino site?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the tribe entered into a gaming agreement with the state
    in which the land is located, if required by the state?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the tribe obtained approval by the National Indian Gaming
    Commission of the management agreement?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Do other legal and political obstacles exist that could block
    development of the project and, if so, what is the likelihood of
    the tribe successfully prevailing?</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above factors, Lakes also considers economic
and qualitative factors affecting Lakes&#146; future economic
benefits from the project, including the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>An evaluation by Company management of the financial
    projections of the project given the project&#146;s geographic
    location and the feasibility of the project&#146;s success given
    such location;</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>The structure and stability of the tribal government;</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>The scope of the proposed project, including the physical
    scope of the contemplated facility and the expected financial
    scope of the related development;</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>An evaluation of the proposed project&#146;s ability to be
    built as contemplated and the likelihood that financing will be
    available; and</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>The nature of the business opportunity to Lakes, including
    whether the project would be a financing, development and/or
    management opportunity.</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development phase of each relationship commences with the
signing of the respective contracts and continues until the
casinos open for business; thereafter, the management phase of
the relationship, governed by the management contract, continues
for a period of up to seven years. Lakes, as developer and
manager, has the exclusive right and obligation to develop,
manage, operate and maintain the casino and to train tribal
members and others in the operation and maintenance of the
casino during the term of the contract. The Company also makes
advances to the tribes to fund certain portions of the projects,
which bear interest generally at prime plus 1% or 2%. Repayment
of the advances and accrued interest is only required if the
casino is successfully opened and distributable profits are
available from the casino operations. Under the management
contract Lakes typically earns a management fee calculated as a
percentage of the net income of the operations. In addition,
repayment of the loans and the manager&#146;s fees under the
management contracts are subordinated to certain other financial
obligations of the respective operations. Generally, the order
of priority of payments from the casinos&#146; cash flows is as
follows: a certain minimum monthly priority payment to the
tribe, repayment of various senior debt associated with
construction and equipping of the casino with interest accrued
thereon, repayment of various debt with interest accrued thereon
due to Lakes, management fee to Lakes, and other obligations,
with the remaining funds distributed to the tribe.
</DIV>

<P align="center" style="font-size: 10pt;">31

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for its advances to the tribes and its
management contracts as separate elements. The advances made to
the tribes are accounted for as structured notes in accordance
with the guidance contained in Emerging Issues Task Force
Consensus No.&nbsp;96-12 <I>Recognition of Interest Income and
Balance Sheet Classification of Structured Notes </I>(EITF
No.&nbsp;96-12). Because repayment of the notes is required only
if a casino is successfully opened, Lakes&#146; advances may be
at risk to not be repaid for reasons other than failure of the
borrower to pay the contractual amounts due because if the
casinos are not built the notes will not become contractually
due. Accordingly, pursuant to the guidance in EITF
No.&nbsp;96-12, Lakes records its advances to tribes at fair
value. Because the stated rate of the notes receivable alone is
not commensurate with the risk inherent in these projects, the
fair value of the notes receivable is generally less than the
amount advanced. At the date of each advance, the difference
between the fair value of the note receivable and the actual
amount advanced is recorded as an intangible asset related to
the acquisition of the management contract. Subsequent to the
initial recording, the two assets are accounted for separately.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsequent to its initial recording at fair value, the note
receivable portion of the advance is adjusted to its current
fair value at each balance sheet date based on current
assumptions related to the projects. The notes receivable are
not adjusted to an amount in excess of the face value of the
note plus accrued interest. Changes in fair value are recorded
as unrealized gains or losses on notes receivable in the
Company&#146;s statement of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The determination of fair value requires that assumptions be
made and judgments be applied regarding casino opening dates,
interest rates, discount rates and probabilities of the projects
opening based on a review of critical milestones. If casino
opening dates, interest rates, discount rates or the
probabilities of the projects opening change significantly the
Company could experience unrealized gains or losses that could
be material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon opening of the casino Lakes may conclude that it is no
longer reasonably possible that the advances to Indian tribes
would be at risk to not be repaid for reasons other than failure
of the borrower to pay the contractual amounts due. In such
situations, the notes receivable will be accounted for under the
effective interest method upon opening of the casino and will no
longer be adjusted to fair value at each balance sheet date. Any
difference between the then fair value of the advances and the
amount contractually due under the notes will be amortized into
income using the effective interest method over the remaining
term of the note. Such notes would then be evaluated for
impairment pursuant to Statement of Financial Accounting
Standards No.&nbsp;114 <I>&#147;Accounting by Creditors for
Impairment of a Loan.&#148;</I>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Intangible Assets Related to Acquisition of Management
    Contracts:</U></I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets related to the acquisition of the management
contracts are accounted for using the guidance in Statement of
Financial Accounting Standards No.&nbsp;142 <I>Goodwill and
Other Intangible Assets </I>(FASB No.&nbsp;142). Pursuant to
that guidance, the assets are periodically evaluated for
impairment based on the estimated cash flows from the management
contract on an undiscounted basis. In the event the carrying
value of the intangible assets, in combination with the carrying
value of land held for development and other assets associated
with the Indian casino projects described below, were to exceed
the undiscounted cash flow, an impairment would be recorded.
Such an impairment would be measured based on the difference
between the fair value and carrying value of the assets. Lakes,
in accordance with FASB No.&nbsp;142, will amortize the
intangible assets related to the acquisition of the management
contracts under the straight-line method over the lives of the
contracts which will commence when the related casinos open. In
addition to the intangible asset associated with the cash
advances to tribes described above, these assets include actual
costs incurred to acquire Lakes&#146; interest in the projects
from third parties.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Land Held for Development</U></I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in land held for development is land held for possible
transfer to Indian tribes for use in certain of the future
casino resort projects. In the event that this land is not
transferred to the tribes, the Company can sell it. Lakes
evaluates these assets for impairment in combination with
intangible assets related to acquisition of management contracts
and other assets related to the Indian casino projects as
discussed above.
</DIV>

<P align="center" style="font-size: 10pt;">32

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Other</U></I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in this category are costs incurred related to the
Indian casino projects, which have not yet been included as part
of the notes receivable because of timing of the payment of
these costs. These amounts will ultimately be allocated between
notes receivable and intangible assets related to the
acquisition of management contracts and will be evaluated for
changes in fair value or impairment, respectively, as described
above. These amounts vary from period to period due to timing of
payment of these costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, Lakes incurs certain costs related to the projects
that are not included in notes receivable, which are expensed as
incurred. These costs include salaries, travel and certain legal
costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The consolidated balance sheets as of January&nbsp;2, 2005 and
December&nbsp;28, 2003 include long-term assets related to
Indian casino projects of $125.6&nbsp;million and
$113.1&nbsp;million, respectively, primarily related to three
separate projects. The amounts are as follows by project (in
thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>January&nbsp;2, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pokagon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jamul</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Band</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Tribe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Tribe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes receivable, at fair value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>35,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>67,066</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets related to acquisition of management contracts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,096</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land held for development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,433</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,315</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,024</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>53,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>48,560</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>23,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>125,619</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>December&nbsp;28, 2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shingle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pokagon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jamul</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nipmuc</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Band</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Tribe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Tribe</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes receivable, at fair value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>32,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,800</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets related to acquisition of management contracts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land held for development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,361</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>494</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,455</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,057</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>49,073</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>36,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,841</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>113,058</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The key assumptions used to value the notes receivable at fair
value are estimated casino opening date, projected interest
rates, discount rates and probability of projects opening. The
estimated casino opening date is based upon the weighted average
of three scenarios: a base case (which is based on the
Company&#146;s forecasted casino opening date) and one and two
years out from the base case. The projected interest rates are
based upon the one year U.S Treasury Bill spot yield curve per
Bloomberg and the specific assumptions on contract term, stated
interest rate and casino opening date. The discount rate for the
projects is based on the yields available on certain financial
instruments at the valuation date, the risk level of equity
investments in general, and the specific operating risks
associated with open and operating gaming enterprises similar to
each of the projects. In estimating this discount rate, market
data of other public gaming related companies was considered.
The probability applied to each project is based upon a
weighting of four different scenarios with the fourth scenario
assuming the casino never opens. The first three scenarios
assume the casino opens but apply different opening dates as
discussed above. The probability weighting applied to each
scenario captures the element of risk in these projects and is
based upon the status of each project, review of the critical
milestones and likelihood of achieving the milestones.
</DIV>

<P align="center" style="font-size: 10pt;">33

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table provides the key assumptions used to value
the notes receivable at fair value (dollars in thousands):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pokagon Band:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $55,747<BR>
    ($44,550 principal and $11,197<BR>
    interest)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $50,054<BR>
    ($41,729 principal and $8,325<BR>
    interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated months until casino opens (weighted average of three
    scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    33&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    34&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    6.8%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    6.4%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    8.2%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    9.0%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    15%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    15%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayment terms of note</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    60&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    60&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening (weighting of four scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    75%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    70%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A portion of the notes due from the Pokagon Band includes funds
advanced of approximately $24.1&nbsp;million by the Company for
the Pokagon Band&#146;s purchase of land. The Company has a
first deed of trust against substantially all of this property,
which will be relinquished when the BIA places the land into
trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The probability rate was increased from 70% to 75% in fiscal
2004 due to an evaluation of all critical milestones as of
January&nbsp;2, 2005 and due to the anticipated favorable
federal judge ruling which was received in March 2005 that will
allow the land to be taken into trust by the Federal Government.
Subsequently the Taxpayers of Michigan Against Casinos
(&#147;TOMAC&#148;) filed for an appeal. The appeal hearing date
has been set for December&nbsp;8, 2005. Due to the delay related
to this litigation the estimated casino opening date was
extended from November 2006 to October 2007 during the year
ended January&nbsp;2, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
TOMAC commenced the litigation against the Federal Government in
2001 after the U.S.&nbsp;Department of Interior issued a finding
of no significant impact and recommended that land be taken into
trust on behalf of the Pokagon Band. The land in trust issue has
been the most significant critical milestone delaying the
opening of the casino.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See further discussion included below under &#147;<U>Description
of each Indian casino project and evaluation of critical
milestones&nbsp;&#151; Pokagon.</U>&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shingle Springs Tribe:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $38,156<BR>
    ($33,076 principal and $5,080<BR>
    interest)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $27,252<BR>
    ($24,428 principal and $2,824<BR>
    interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated months until casino opens (weighted average of three
    scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    36&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    37&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    7.9%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    7.6%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    8.7%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    9.6%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    15%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    15%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected repayment terms of note*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    24&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    24&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening (weighting of four scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    70%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    65%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Payable in varying monthly installments based on contract terms
    subsequent to the casino opening.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">34

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The probability rate was increased from 65% to 70% due to an
evaluation of the status of all critical milestones as of
January&nbsp;2, 2005. The most significant milestone yet to be
achieved for this project is commercial access to the
reservation on which the casino will be built. The Shingle
Springs Tribe received state regulatory approval of a necessary
interchange to access the tribal land during 2002. Neighboring
El&nbsp;Dorado County and another local group commenced
litigation in Federal and State Courts against the California
regulatory agencies attempting to block the approval of the
interchange. During January of 2004, the California Superior
Court ruled in favor of California Department of Transportation
(&#147;CalTrans&#148;) on all of El Dorado County&#146;s claims
challenging CalTrans&#146; environmental review of the proposed
casino project except that the court asked for clarification on
one issue. The one remaining issue in the state case questions
the state standards for ozone requirements of all of CalTrans
projects throughout California. El Dorado County, Voices for
Rural Living, CalTrans and the Shingle Springs Tribe filed an
appeal and oral arguments on these appeals were heard in August
2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In November 2005, the California Court of Appeal
(&#147;Court&#148;) issued its decision on these appeals. The
Court ruled in favor of CalTrans&#146; appeal, rejecting the El
Dorado County&#146;s argument that the transportation conformity
analysis did not conform to state standards. The Court also
rejected all but two of the legal claims asserted in the appeal
by El Dorado County and Voices for Rural Living against the
environmental impact report (&#147;EIR&#148;) prepared by
CalTrans for the interchange that will connect Highway 50 to the
Shingle Springs Rancheria. For the remaining two issues, the
Court held that CalTrans must supplement its environmental
analysis by adding some discussion to the air quality chapter to
further explain the project&#146;s contribution to overall
vehicular emissions in the region, and that CalTrans also must
evaluate whether a smaller casino and hotel would reduce
environmental impacts. The Court acknowledged CalTrans lacks
jurisdiction to require the Tribe to develop a smaller casino,
but nevertheless required some discussion of this alternative in
the interchange EIR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In January 2005, Lakes received a favorable ruling from the
federal court on all federal issues with respect to the casino
development planned by the Shingle Springs Tribe. The federal
favorable ruling related to the project is being appealed by El
Dorado County.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to delays related to the litigation discussed above, the
estimated casino opening date was extended from February 2007 to
January 2008 during the year ended January&nbsp;2, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See further discussion included below under &#147;<U>Description
of each Indian casino project and evaluation of critical
milestones&nbsp;&#151; Shingle Springs.</U>&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Jamul Tribe:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $17,306<BR>
    ($14,467 principal and $2,839<BR>
    interest)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $14,163<BR>
    ($12,236 principal and $1,927<BR>
    interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated months until casino opens (weighted average of three
    scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    36&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    36&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    7.9%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    7.6%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    8.7%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    9.6%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    15%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    15%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayment terms of note*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    84&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    12&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening (weighting of four scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    75%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    75%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    The contract was amended in October 2004, which changed the
    repayment terms of the notes to seven years.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">35

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to delays related to getting land contiguous to the
reservation placed into trust, the casino opening date was
extended from January 2007 to January 2008 during the year ended
January&nbsp;2, 2005. Because of the slow process, during August
of 2005, the Jamul Tribe and Lakes formally announced plans to
build the casino on the approximately 6&nbsp;acres of
reservation land held by the Jamul Tribe. Reservation land
qualifies for gaming without going through a land in trust
process.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nipmuc Tribe:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="43%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and<BR>
    interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $6,513<BR>
    ($5,461 principal and $1,052 interest)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $5,295<BR>
    ($4,634 principal and $661<BR>
    interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Months until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    72&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    8.7%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    10.8%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    33%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayment terms of note</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    60&nbsp;months</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    65%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the second quarter of fiscal 2004 the notes receivable
and other assets related to the Nipmuc Nation project were
written-off. See further discussion included below under
&#147;<U>Description of each Indian casino project and
evaluation of critical milestones&nbsp;&#151; Nipmuc
Nation.</U>&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair value calculation requires that assumptions be made and
judgments be applied regarding estimated casino opening dates,
projected interest rates, discount rates and probabilities of
the projects opening. If the assumptions used in the fair value
calculation change significantly the Company could experience
unrealized gains or losses that could be material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table represents a sensitivity analysis prepared
by the Company of the notes receivable from the Jamul Tribe,
Pokagon Band and Shingle Springs Tribe, based upon a change in
the probability rate of the casino opening by five percentage
points and the estimated casino opening date by one year:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Sensitivity Analysis</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5% Less</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>One Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5% Increased</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>One Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Notes Receivable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Probable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Delay</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Both</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Probability</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sooner</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Both</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pokagon</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>35,931,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>33,957,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>33,825,802</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>29,583,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>37,904,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>38,197,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>40,321,591</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shingle Springs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,775,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,252,095</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,453,118</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>19,024,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>23,297,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>23,184,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,807,821</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jamul</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,345,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,734,015</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,776,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,203,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,955,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,950,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,602,146</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>67,051,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>62,944,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>63,055,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>56,811,384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>71,157,979</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>71,332,440</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>75,731,558</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Sensitivity Analysis</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5% Less</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>One Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5% Increased</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>One Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Notes Receivable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Probable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Delay</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Both</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Probability</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Sooner</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Both</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pokagon</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>32,370,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30,592,920</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30,515,921</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,870,347</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>34,149,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>34,375,453</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>36,296,708</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shingle Springs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,599,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,517,483</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,690,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,678,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,680,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,570,123</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,726,341</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jamul</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,810,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,244,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,262,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,733,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,375,318</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,395,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,000,074</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>55,779,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>52,355,085</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>52,468,674</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>49,282,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>59,204,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>59,341,284</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>63,023,123</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The assumption changes used in the sensitivity analysis above
are hypothetical. The effect of the variation in the probability
assumption and estimated opening date on the fair value of the
notes receivable from Indian tribes was calculated without
changing any other assumptions; in reality, changes in these
factors may result in
</DIV>

<P align="center" style="font-size: 10pt;">36

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
changes in another (for example, the change in probability could
be associated with a change in discount rate), which might
magnify or counteract the sensitivities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following represents the nature of the advances to the
tribes. The table represents the total amount of advances, which
represent the principal amount of the notes receivable, as of
January&nbsp;2, 2005 and December&nbsp;28, 2003. The notes
receivable are carried on the consolidated balance sheet at
January&nbsp;2, 2005 and December&nbsp;28, 2003 at their fair
value of $67.1&nbsp;million and $56.8&nbsp;million, respectively.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Balance at January&nbsp;2, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shingle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Advances Principal Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pokagon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jamul</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable Pre-construction</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    <B>(a)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>33,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>67,042</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable Non&nbsp;&#151; Gaming Land</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    <B>(b)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,176</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,176</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable Land</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    <B>(b)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,875</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable&nbsp;&#151; Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>44,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>33,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,467</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>92,113</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>Balance at December&nbsp;28, 2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shingle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="15">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Advances&nbsp;&#151; Principal Balance</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pokagon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jamul</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nipmuc</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable Pre-construction</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    <B>(a)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,633</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,386</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>58,081</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable Non&nbsp;&#151; Gaming Land</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    <B>(b)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,172</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,172</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable Gaming Land</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">
    <B>(b)</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>950</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,874</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Note&nbsp;Receivable&nbsp;&#151; Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>914</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>41,729</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>84,041</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    Lakes advances funds to the tribes, which relate to certain
    costs incurred to develop the casino project. These costs relate
    to construction costs, legal fees in connection with various
    regulatory approvals and litigation, environmental costs and
    design consulting, and Lakes, in order to obtain the development
    agreement and management contract, agrees to advance a monthly
    amount used by the tribe for a variety of tribal expenses.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    (b)</TD>
    <TD></TD>
    <TD valign="top">
    Lakes has purchased land to be used and transferred to the tribe
    in connection with the casino project. At Pokagon, a portion of
    the land will be used by the tribe separate from the casino
    project land.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The notes receivable pre-construction advances consist of the
following principal amounts advanced to the tribes at
January&nbsp;2, 2005 and December&nbsp;28, 2003 (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;2,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>December&nbsp;28,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Pokagon</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Monthly stipend</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8,125</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,625</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Construction</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,535</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,379</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,300</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Environmental</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>531</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Design</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,720</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,642</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total principal amount of pre-construction advances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,633</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">37

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;2,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>December&nbsp;28,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Shingle Springs</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Monthly stipend</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,980</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,140</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Construction</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,605</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,485</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,043</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Environmental</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,433</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Design</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,364</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gaming license</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,026</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lobbyist</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,937</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total principal amount of pre-construction advances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>33,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>24,428</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;2,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>December&nbsp;28,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Jamul</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Monthly stipend</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,700</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Construction</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>153</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,625</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Environmental</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,534</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Design</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,560</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Gaming license</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>429</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>330</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lobbyist</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,736</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,484</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total principal amount of pre-construction advances</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,386</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Lakes&#146; evaluation of impairment related to
    Lakes&#146; long-term assets related to Indian casino projects,
    excluding the notes receivable, which are valued at fair
    value:</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company evaluates for impairment the intangible assets, land
held for development and other costs associated with each of the
projects. The assets are periodically evaluated for impairment
based on the estimated cash flows from the management contract
on an undiscounted basis. In the event the carrying value of the
intangible assets, in combination with the carrying value of
land held for development and other assets associated with the
Indian casino projects were to exceed the undiscounted cash
flow, an impairment would be recorded. Such an impairment would
be measured based on the difference between the fair value and
carrying value of the assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The financial models prepared by management for each project are
based upon the scope of each of the projects, which are
supported by a feasibility study as well as a market analysis
where the casino will be built. The Company (as its predecessor
Grand Casinos, Inc.) began developing Indian casino projects in
1990 and demonstrated success from the day the first Indian
casino opened in 1991 through the expiration of its Coushatta
management contract in 2002. This success legitimizes many of
the key assumptions supporting the financial models.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Projections for each applicable casino development were
developed based on analysis of published information pertaining
to the particular markets in which the Company&#146;s Indian
casinos will be located. In addition, Lakes has many years of
casino operations experience within the Company which provides a
basis for its revenue expectations. The projections were
prepared by Lakes not for purposes of the valuation at hand but
rather for purposes of Lakes&#146; and the tribes&#146; business
planning.
</DIV>

<P align="center" style="font-size: 10pt;">38

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary assumptions included within management&#146;s
financial model for each Indian casino project is as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Pokagon Band</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="29%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Class&nbsp;III slot machines</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    3,000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    3,000</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Table games</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    100</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Poker tables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    20</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    20</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Win/ Class&nbsp;III slot machine/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $275</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $275</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Win/ Table game/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st &nbsp;</SUP>year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,300</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,100</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Win/ Poker game/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st &nbsp;</SUP>year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,000</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected increase (decrease) in management fee cash flows</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 2&nbsp;&#151; (6.4)% (decrease due to repayment of senior
    debt)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 2&nbsp;&#151; (7.7)% (decrease due to repayment of senior
    debt)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 3&nbsp;&#151; 1.9%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 3&nbsp;&#151; 0.7%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 4&nbsp;&#151; 3.6%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 4&nbsp;&#151; 3.2%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 5&nbsp;&#151; 2.8%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 5&nbsp;&#151; 2.5%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
With regard to the Pokagon Casino project in southwest Michigan,
the competitive market consists primarily of five Northern
Indiana riverboats. The state of Indiana publicly reports
certain results from these riverboat casinos which supports the
underlying assumptions in our projections. Specifically, the
Northern Indiana trailing twelve months market average for slot
machine revenue has consistently been above $300 win per unit
per day or greater than $105,000&nbsp;per machine per year which
exceeds the $275 win per unit per day that we used in our
Pokagon Casino projections. Of the five casinos in the market,
two locations produced a win per unit less than our projections
with three casinos producing win per unit revenue amounts
greater than our forecast. The closest casino to our location
consistently produces approximately $330 win per unit per day.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Jamul Tribe</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Class&nbsp;III slot machines</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    349</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    349</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Class&nbsp;II slot machines</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    1,651</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    1,651</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Table games</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    65</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    65</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Poker tables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    10</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Win/ Class&nbsp;III slot machine/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $285</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $285</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Win/ Class&nbsp;II slot machine/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $200</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Win/ Table game/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,100</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Win/ Poker table/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $650</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $650</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Expected increase (decrease)<BR>
    in management fee cash flows</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 2&nbsp;&#151; (8.8)% (decrease due to repayment of senior
    debt)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 2&nbsp;&#151; (8.8)% (decrease due to repayment of senior
    debt)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 3&nbsp;&#151; 2.8%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 3&nbsp;&#151; 2.8%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 4&nbsp;&#151; 2.9%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 4&nbsp;&#151; 2.9%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 5&nbsp;&#151; 1.9%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 5&nbsp;&#151; 1.9%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 6&nbsp;&#151; 2.8%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 6&nbsp;&#151; 2.8%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 7&nbsp;&#151; 1.5%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 7&nbsp;&#151; 1.5%</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">39

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The San&nbsp;Diego market contains other Indian-owned casinos in
the surrounding area, each of which is self-managed. Because of
the proprietary nature of those operations no public information
is readily attainable. However, based on the apparent successful
nature of their operations (large casinos which continually
expand, new hotel developments, new golf courses, etc.) coupled
with our knowledge of their operations, we feel that our
forecast of operations is within the revenue metrics of the
market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Shingle Springs Tribe</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Class&nbsp;III slot machines</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    349</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    349</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Class&nbsp;II slot machines</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    1,651</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    1,651</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Table games</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    65</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    No. of Poker tables</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    20</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    10</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Win/ Class&nbsp;III slot machine/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $350</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $400</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Win/ Class&nbsp;II slot machine/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $250</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $250</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Win/ Table game/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $1,275</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $1,275</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Win/ Poker table/day&nbsp;&#151;
    1<SUP style="font-size: 85%; vertical-align: text-top">st&nbsp;</SUP>year</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    $624</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    $624</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    Expected increase (decrease) in management fee cash flows</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 2&nbsp;&#151; (8.9)% (decrease due to repayment of senior
    debt)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Year 2&nbsp;&#151; (12.4)% (decrease due to repayment of senior
    debt)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    Year 3&nbsp;&#151; 3.6%<BR>
    Year 4&nbsp;&#151; 3%<BR>
    Year 5&nbsp;&#151; 5.1%<BR>
    Year 6&nbsp;&#151; (17)% (management</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Year 3&nbsp;&#151; 1.8%<BR>
    Year 4&nbsp;&#151; 1.7%<BR>
    Year 5&nbsp;&#151; 4.0%<BR>
    Year 6&nbsp;&#151; 1.2%</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">
    fees were reduced in years six and seven)<BR>
    Year 7&nbsp;&#151; 10.8%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Year 7&nbsp;&#151; 0.9%</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the Shingle Springs Sacramento market, there is one other
Indian casino that is managed by another public company.
Management took into consideration available information related
to this other Indian casino when projecting management fees from
the Shingle Springs Casino. Based on the apparent successful
nature of their operations coupled with our knowledge of their
operations, we feel that our forecast of operations is within
the revenue metrics of the market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005 and December&nbsp;28, 2003 no
impairment was recognized on the Pokagon, Shingle Springs or
Jamul projects. During the second quarter of 2004, the BIA
issued its final determination denying the Nipmuc Nation&#146;s
application for federal recognition. At that time, Lakes
recorded an impairment charge of $5.8&nbsp;million related to
long-term assets related to the Nipmuc Nation project.
Additionally, in 2002, Lakes recorded an impairment charge of
$1.1&nbsp;million on Lakes&#146; intangible assets related to
the acquisition of the development agreement for the Cloverdale
Indian casino project. In 2002 the Company&#146;s relationship
with the Cloverdale Rancheria deteriorated, which resulted in
Lakes recognizing an impairment of the intangible asset.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Description of each Indian casino project and evaluation
of critical milestones</U>:</B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Pokagon Band</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Business arrangement</U>:</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes, in July 1999, entered into a development agreement and
management contract with the Pokagon Band, a federally
recognized tribe with a compact with the State of Michigan, to
develop and manage a casino on approximately 675&nbsp;acres in
southwest Michigan. The first phase of the casino is planned to
include approximately 3,000 slot machines, 100 table games,
various restaurant and bar venues, enclosed parking, a childcare
facility and arcade, and various other resort amenities.
</DIV>

<P align="center" style="font-size: 10pt;">40

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development agreement provides for Lakes to advance up to
approximately $73.0&nbsp;million for purchase of land and for
the initial development phase of the project. The development
agreement for the Pokagon project also provides that to the
extent the Pokagon Band is unable to raise additional funding
from third parties at an interest rate not to exceed 13%, Lakes
will be required to provide additional financing of up to
approximately $54.0&nbsp;million. Based on extensive discussions
with prospective lenders, it appears that third party financing
will be available for this project; however, there can be no
assurance that third party financing will be available at the
time construction for the project begins. Lakes is not required
to fund these amounts; however, if Lakes discontinued the
funding prior to fulfilling the obligation, Lakes would forfeit
the rights under the management contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes will receive approximately 24% of net income up to a
certain level and 19% of the net income over that level, as a
management fee. The term of the management contract is currently
planned for five years beginning when the casino opens to the
public and may extend for a total of seven years under certain
circumstances. Payment of Lakes&#146; management fee will be
subordinated to senior indebtedness of the Pokagon casino. The
Pokagon Band may terminate the management contract after five
years from the opening of the casino if any of certain required
elements of the project have not been developed or certain
financial commitments to the Pokagon Band have not been met. The
Pokagon Band may also buy out the management contract provisions
after two years from the opening date. The buyout amount is
calculated based upon the previous 12&nbsp;months of management
fees earned multiplied by the remaining number of years under
the management contract, discounted back to the present value at
the time the buyout occurs. The management fee and length of
contract are subject to regulatory approval. Assuming the land
is taken into trust in 2006, the project is planned to open in
2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will be obligated to pay an amount to an unrelated
third party once the Pokagon Casino is open and Lakes is the
manager of the casino. The amount is payable quarterly for five
years and is only payable if Lakes is the manager of the casino.
The payment is part of a settlement and release agreement
associated with Lakes obtaining the management contract with the
Pokagon Band. The maximum liability over the five-year period is
approximately $11&nbsp;million.
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; evaluation of critical milestones:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table outlines the status of each of the following
primary milestones necessary to complete the Pokagon project as
of the end of each fiscal year 2002, 2003 and 2004. Both the
positive and negative evidence was reviewed during Lakes&#146;
evaluation of the critical milestones.
</DIV>

<CENTER>
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    <TD width="23%">&nbsp;</TD>
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    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Federal recognition of the tribe</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Possession of usable land corresponding with needs based on
    the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable land placed in trust by Federal government</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No&nbsp;&#151; In January 2001, the U.S Department of Interior
    issued a finding of no significant impact (&#147;FONSI&#148;),
    recommending the land be placed into trust. During the 30-day
    required waiting period a lawsuit was filed by opposing groups
    against the casino.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No&nbsp;&#151; The Pokagon Band and Lakes continued to provide
    support for the case and in January 2003 the federal judge
    dismissed all issues except for the final issue and requested
    additional information from the BIA.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No&nbsp;&#151; The additional information was submitted by the
    BIA in August 2004 and the lawsuit was still pending resolution
    as of January&nbsp;2, 2005. Subsequently in March 2005 the
    federal judge dismissed the last remaining issue filed by TOMAC
    and ruled in favor of the Pokagon</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">41

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
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    <TD width="23%">&nbsp;</TD>
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    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
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    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Band allowing the land to be placed into trust by the BIA.
    During the required 60-day waiting period, TOMAC filed for an
    appeal. An agreement has been reached between the Department of
    Justice and TOMAC to not take the land into trust during the
    appeal process in exchange for TOMAC agreeing to a &#147;fast
    track&#148; hearing process. The appeal hearing date has been
    set for December&nbsp;8, 2005.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable county agreement, if applicable</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable state compact that allows for gaming consistent with
    that outlined in the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>NIGC approval of management contract in current and desired
    form</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted to the NIGC for review in 2000.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted to the NIGC for review in 2000.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted to the NIGC for review in 2000 and approval is
    expected at approximately the same time the land is being placed
    into trust by the BIA.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Resolution of all litigation and legal obstacles</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, pending litigation regarding land in trust&nbsp;&#151; see
    below.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, pending litigation regarding land in trust&nbsp;&#151; see
    below.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, pending litigation regarding land in trust&nbsp;&#151; see
    below.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Financing for construction</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No; however, the Pokagon Band engaged an investment banker to
    assist with obtaining financing.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No; however, the Pokagon Band engaged an investment banker to
    assist with obtaining financing.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Any other significant project milestones or contingencies,
    the outcome of which could have a material affect on the
    probability of project completion as planned</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">42

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; evaluation and conclusion regarding the above
    critical milestones and progress:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Pokagon Band became a federally recognized tribe through an
act of Congress prior to them entering into any agreements with
Lakes. As part of this congressional action the Federal
Government mandated that the Pokagon Band &#147;shall&#148; have
land taken into trust on their behalf.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1999, Lakes entered into a development agreement and
management contract with the Pokagon Band. At that time the
Pokagon Band was federally recognized and they had a compact
with the State of Michigan. During 1999 and 2000, Lakes
purchased land on behalf of the Pokagon Band.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In January 2001, the U.S.&nbsp;Department of Interior issued a
finding of no significant impact and recommended that land be
taken into trust on behalf of the Pokagon Band. During the
required 30-day waiting period a lawsuit was filed by the TOMAC
against the federal government to stop the land in trust
process. Lakes and the Pokagon Band continued to provide support
for this case and believed it would be resolved in favor of the
Band. The first hearing before the federal judge took place on
December 2001. In March 2002, the judge eliminated several of
TOMAC&#146;s assertions and continued to review the remaining
issues. In January 2003, the Judge dismissed all remaining
issues except for one and requested additional information from
the federal government (&#147;BIA&#148;) to support their
conclusions on that one issue. Due to the fact that all issues
except for one had been dismissed, Lakes continued to believe
that it was probable that the land would be taken into trust and
that the casino would open. The BIA submitted the additional
information in August 2004; and in March 2005, the federal judge
dismissed the last remaining issue filed by TOMAC making it
possible for the land to be taken into trust for the gaming
project. During the required 60-day waiting period, TOMAC filed
for an appeal. An agreement has been reached between the
Department of Justice and TOMAC to not take the land into trust
during the appeal process in exchange for TOMAC agreeing to a
&#147;fast track&#148; hearing process. The appeal hearing date
has been set for December&nbsp;8, 2005. The federal lawsuit has
been the most significant item delaying the opening of the
casino. Lakes believes the outcome of this appeal will be
favorable because of the sequence of events that have occurred
in favor of the project to date, the existing state of the law
and most recently, the March 2005 dismissal of the last
remaining item in the lawsuit by the federal judge. The federal
judge dismissed claims that the BIA had not completed a
sufficient environmental assessment of the proposed casino site.
Lakes believes this decision will be upheld during the appeal
process because the evidence provided to the federal judge
(including legal arguments), which was the federal judge&#146;s
basis for his favorable decision as to the sufficiency of the
environmental assessment as it relates to the Pokagon project,
has been reviewed by third-party advisors of both the Pokagon
Band and Lakes, and we and our advisors continue to believe the
environmental assessment that has been performed meets all
necessary requirements for the land to be taken into trust. We
expect approval of the management contract by the NIGC at
approximately the same time the land is taken into trust by the
BIA. Once the land is taken into trust, Lakes will help the
Pokagon Band build and manage their casino development.
Construction of the project could begin in mid to late 2006 with
an expected opening date twelve months following the start of
construction, or mid to late 2007.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Shingle Springs</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Business arrangement:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Plans for the Shingle Springs Casino project include an
approximately 238,000&nbsp;square-foot facility (including
approximately 80,000&nbsp;square feet of casino space) to be
located adjacent to the planned Shingle Springs Rancheria exit,
approximately 35&nbsp;miles east of downtown Sacramento, on
U.S.&nbsp;Highway 50. The Shingle Springs Casino is currently
planned to feature approximately 2,000 gaming devices and
approximately 100 table games, as well as restaurants, enclosed
parking and other facilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes acquired its initial interest in the development and
management contracts for the Shingle Springs Casino from
KAR&nbsp;&#151; Shingle Springs in 1999 and formed a joint
venture, in which the contracts were held, between Lakes and KAR
&#150; Shingle Springs. On January&nbsp;30, 2003, Lakes
purchased the remaining KAR&nbsp;&#151; Shingle Springs&#146;
partnership interest in the joint venture. In connection with
the purchase transaction, Lakes entered into separate agreements
with the two individual owners of KAR&nbsp;&#151; Shingle
Springs (Kevin M. Kean and Jerry A. Argovitz). Under the
agreement with Mr.&nbsp;Kean, Mr.&nbsp;Kean may elect to serve
as a consultant to
</DIV>

<P align="center" style="font-size: 10pt;">43

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<DIV align="left" style="font-size: 10pt;">
Lakes during the term of the casino management contract if he is
found suitable by relevant gaming regulatory authorities. In
such event, Mr.&nbsp;Kean will be entitled to receive annual
consulting fees equal to 15% of the management fees received by
Lakes from the Shingle Springs Casino operations, less certain
costs of these operations. If Mr.&nbsp;Kean is not found
suitable by relevant gaming regulatory authorities or otherwise
elects not to serve as a consultant, he will be entitled to
receive annual payments of $1&nbsp;million from the Shingle
Springs Casino project during the term of the respective casino
management contract (but not during any renewal term of such
management contract).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreement with Mr.&nbsp;Argovitz, if he is found
suitable by relevant gaming regulatory authorities he may elect
to re-purchase his respective original equity interest in the
Lakes&#146; subsidiary and then be entitled to obtain a 15%
equity interest in Lakes&#146; management contract with the
Shingle Springs Casino. If he is not found suitable or does not
elect to purchase equity interests in the Lakes&#146;
subsidiary, Mr.&nbsp;Argovitz would receive annual payments of
$1&nbsp;million from the Shingle Springs Casino project from the
date of election through the term of the respective casino
management contract (but not during any renewal term of such
management contract).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development agreement provides for Lakes to make certain
pre-construction advances to the Shingle Springs Tribe in the
form of a transition loan and land loan up to a maximum amount
of $50.0&nbsp;million. Lakes is not required to fund these
amounts; however, if Lakes discontinued the funding prior to
fulfilling the obligation, Lakes would forfeit the rights under
the management contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The agreement provides for Lakes to arrange for financing or, in
its discretion, loan to the Shingle Springs Tribe in the form of
a facility loan, funds for the costs of construction and initial
costs of operation up to a maximum currently of
$300&nbsp;million. In addition, Lakes will assist in the design,
development and construction of the facility as well as manage
the pre-opening, opening and continued operations of the casino
and related amenities for a period of seven years. As
compensation for its management services, Lakes will receive a
management fee between 21% and 30% of net income of the
operations annually for the first five years, with a declining
percentage in years six and seven, as that term is defined by
the management contract. Payment of Lakes&#146; management fee
will be subordinated to senior indebtedness of the Shingle
Springs Casino and minimum priority payment to the Shingle
Springs Tribe. The Shingle Springs Tribe may terminate the
agreement after five years from the opening of the casino if any
of certain required elements of the project have not been
developed. The management contract includes provisions that
allow the Shingle Springs Tribe to buy out the management
contract after four years from the opening date. The buyout
amount is calculated based upon the previous twelve months of
management fees earned multiplied by the remaining number of
years under the contract, discounted back to the present value
at the time the buyout occurs.
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; Evaluation of the Critical Milestones:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table outlines the status of each of the following
primary milestones necessary to complete the Shingle Springs
project as of the end of each fiscal year 2002, 2003 and 2004.
Both the positive and negative evidence was reviewed during
Lakes&#146; evaluation of the critical milestones.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Federal recognition of the tribe</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="3" style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="3" style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Possession of usable land corresponding with needs based on
    the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable land placed in trust by Federal government</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, Not necessary, as land is reservation land.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, Not necessary, as land is reservation land.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, Not necessary, as land is reservation land.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable county agreement, if applicable</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">44

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<CENTER>
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    <TD width="2%">&nbsp;</TD>
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    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
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    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable state compact that allows for gaming consistent with
    that outlined in the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>NIGC approval of management contract in current and desired
    form</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted to the NIGC for review in 2000.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted to the NIGC for review in 2000.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes&nbsp;&#151; approval received in 2004.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Resolution of all litigation and legal obstacles</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, federal and state litigation regarding approval of highway
    interchange, environmental issues and other issues.<BR>
    <BR>
    &#151;&nbsp;See below.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, federal and state litigation regarding approval of highway
    interchange, environmental issues and other issues.<BR>
    <BR>
    &#151;&nbsp;See below.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, federal and state litigation regarding approval of highway
    interchange, environmental issues and other issues.<BR>
    <BR>
    &#151;&nbsp;See below.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Financing for construction</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No; however, the Shingle Springs Tribe has engaged investment
    banks to assist with obtaining financing.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No; however, the Shingle Springs Tribe has engaged investment
    banks to assist with obtaining financing.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Any other significant project milestones or contingencies,
    the outcome of which could have a material affect on the
    probability of project completion as planned</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; evaluation and conclusion regarding the above
    critical milestones and progress:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Shingle Springs Tribe is a federally recognized tribe, has a
compact with the State of California and owns approximately
160&nbsp;acres of reservation land on which the casino can be
built. During July 2004, Lakes received notification from the
NIGC that the development and management contract between the
Shingle Springs Tribe and Lakes, allowing Lakes to manage a
Class&nbsp;II and Class&nbsp;III casino, was approved by the
NIGC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The most significant milestone yet to be achieved for this
project is commercial access to the reservation on which the
casino will be built. The Shingle Springs Tribe received state
regulatory approval of a necessary interchange to access the
tribal land during 2002. Neighboring El Dorado County and
another local group commenced litigation in federal and state
courts against the California regulatory agencies attempting to
block the approval of the interchange. During January of 2004,
the California Superior Court ruled in favor of CalTrans on all
of El Dorado County&#146;s claims challenging CalTrans&#146;
environmental review of the proposed casino project except that
the court asked for clarification on one issue. The one
remaining issue in the state case questions the state standards
for ozone requirements of all of CalTrans projects throughout
California. El&nbsp;Dorado County, Voices for Rural Living,
CalTrans and the Shingle Springs Tribe filed an appeal and oral
arguments on these appeals was heard in August 2005. In November
2005, the California Court of Appeal (&#147;Court&#148;) issued
its decision on these appeals. The Court ruled in favor of
CalTrans&#146; appeal, rejecting the El&nbsp;Dorado
County&#146;s argument that the transportation conformity
analysis did not conform to state standards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Court also rejected all but two of the legal claims asserted
in the appeal by El Dorado County and Voices for Rural Living
against the environmental impact report (&#147;EIR&#148;)
prepared by CalTrans for the interchange that will connect
Highway 50 to the Shingle Springs Rancheria. For the remaining
two issues, the Court held that CalTrans must supplement its
environmental analysis by adding some discussion to the air
quality chapter
</DIV>

<P align="center" style="font-size: 10pt;">45

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<DIV align="left" style="font-size: 10pt;">
to further explain the project&#146;s contribution to overall
vehicular emissions in the region, and that CalTrans also must
evaluate whether a smaller casino and hotel would reduce
environmental impacts. The Court acknowledged CalTrans lacks
jurisdiction to require the Shingle Springs Tribe to develop a
smaller casino, but nevertheless required some discussion of
this alternative in the interchange EIR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In January 2005, Lakes received a favorable ruling from the
federal court on all federal issues with respect to the casino
development planned by the Shingle Springs Tribe. Lakes has
monitored the lawsuit in California state court closely, and
Lakes believes it is likely that the state court action will be
ultimately resolved in favor of the project because the current
ruling not only jeopardizes a significant amount of other
transportation projects in the state of California, but also
because it is contrary to California law. Under state and
federal environmental rules, if just one project is stopped or
postponed as a result of an environmental ruling similar to the
one in this matter, all other ongoing and planned transportation
projects likely would be required to satisfy the same air
quality requirements imposed by the trial court in order to
proceed and they could not do so, resulting in the loss of
funding for such projects. Lakes believes that this final issue
in state court will ultimately be overcome because the trial
court ruling is not only without precedent, but it is contrary
to existing case and statutory law. Accordingly, and in light of
the trial court ruling&#146;s far-reaching and devastating
impact on ongoing road projects, Lakes expects the trial
court&#146;s ruling will be reversed on appeal, meaning this
project and other road projects in the area will be allowed to
move forward. The federal favorable ruling related to the
project is being appealed by El Dorado County. Construction of
the interchange and casino could begin as early as the third
quarter of 2006 with an estimated opening date approximately
14&nbsp;months after the start of the construction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the form of tribal-state compact first signed by the State
of California with both the Jamul and Shingle Springs tribes in
1999, each tribe is allowed to operate up to 350 Class&nbsp;III
slot machines without licenses from the state. This form of
compact allows tribes to operate up to an additional 1,650
Class&nbsp;III slot machines by obtaining licenses for the
devices from the state. Under these tribal-state compacts, there
is a state-wide limitation on the aggregate number of
Class&nbsp;III slot machine licenses that are available. Tribes
who have entered into new tribal-state compacts or amendments to
the 1999 form of tribal-state compact in general are allowed to
operate an unlimited number of Class&nbsp;III slot machines
without the need for obtaining additional licenses, subject to
the payment of additional fees to the state, including, in
recent cases, fees based on a percentage of slot &#147;net
win.&#148; Currently, neither the Jamul Tribe nor the Shingle
Springs Tribe have amended their tribal-state compacts. If the
compacts are not renegotiated and amended, the tribes could
operate under their existing compacts which allows for up to 350
Class&nbsp;III gaming devices and an unlimited number of
Class&nbsp;II gaming devices. Management believes that this
number of gaming devices is adequate to equip the planned
developments. Therefore, Lakes believes the availability of
additional slot licenses is not an issue that could prevent the
projects from progressing. The Shingle Springs project is
currently planned to open with 349 Class&nbsp;III slot machines
and approximate 1,650 Class&nbsp;II devices.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Jamul Tribe</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Business arrangement</U>:</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Jamul Tribe has an approximate 6-acre reservation on which
the casino project is currently planned to be built. The
reservation is located near San&nbsp;Diego, California. Plans
for the casino include approximately 2,000 gaming devices and
approximately 85 table games along with various restaurants and
related amenities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes acquired its initial interest in the development agreement
and management contracts for the Jamul casino from
KAR&nbsp;&#151; Jamul in 1999 and formed a joint venture in
which the contracts were held between Lakes and KAR&nbsp;&#151;
Jamul. On January&nbsp;30, 2003, Lakes purchased the remaining
KAR&nbsp;&#151; Jamul&#146;s partnership interest in the joint
venture. In connection with the purchase transaction, Lakes
entered into separate agreements with the two individual owners
of KAR&nbsp;&#151; Jamul (Mr.&nbsp;Kean and Mr.&nbsp;Argovitz).
The term of the contract is expected to be five or seven years.
Under the agreement with Mr.&nbsp;Kean, Mr.&nbsp;Kean may elect
to serve as a consultant to Lakes during the term of the casino
management contract if he is found suitable by relevant gaming
regulatory authorities. In such event, Mr.&nbsp;Kean will be
entitled to receive annual consulting fees equal to 20% of the
management fees received by Lakes from the Jamul Casino
operations, less certain
</DIV>

<P align="center" style="font-size: 10pt;">46

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<DIV align="left" style="font-size: 10pt;">
costs of these operations. If Mr.&nbsp;Kean is not found
suitable by relevant gaming regulatory authorities or otherwise
elects not to serve as a consultant, he will be entitled to
receive annual payments of $1&nbsp;million from the Jamul Casino
project during the term of the respective casino management
contract (but not during any renewal term of such management
contract).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreement with Mr.&nbsp;Argovitz, if he is found
suitable by relevant gaming regulatory authorities he may elect
to re-purchase his respective original equity interest in the
Lakes&#146; subsidiary and then be entitled to obtain a 20%
equity interest in Lakes&#146; management contract with the
Jamul Tribe. If he is not found suitable or does not elect to
purchase equity interests in the Lakes&#146; subsidiary,
Mr.&nbsp;Argovitz may elect to receive annual payments of
$1&nbsp;million from the Jamul Casino project from the date of
election through the term of the respective casino management
contract (but not during any renewal term of such management
contract).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development agreement provides for Lakes to make certain
pre-construction advances to the Jamul Tribe of up to
$30&nbsp;million. Lakes is not required to fund these amounts;
however, if Lakes discontinued the funding prior to fulfilling
the obligation, Lakes would forfeit the rights under the
management contract. Lakes will receive a management fee between
18% and 30% of net income of the operations annually for seven
years, subject to regulatory approval of the management contract
and subject to a minimum priority monthly payment to the Jamul
Tribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Jamul Tribe may terminate the management contract after five
years from the opening date of the casino if any of certain
required elements of the project have not been developed. The
management contract includes provisions that allow the Jamul
Tribe to buy out the management contract after four years from
the opening date. The buyout amount is calculated based upon the
previous 12&nbsp;months of management fees earned multiplied by
the remaining number of years under the contract, discounted
back to the present value at the time the buyout occurs.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; Evaluation of the Critical Milestones</U>:</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table outlines the status of each of the following
primary milestones necessary to complete the Jamul project as of
the end of each fiscal year 2002, 2003 and 2004. Both the
positive and negative evidence was reviewed during Lakes&#146;
evaluation of the critical milestones.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="23%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Federal recognition of the tribe</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Possession of usable land corresponding with needs based on
    the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable land placed in trust by Federal government</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, 6&nbsp;acres is reservation land held by the Jamul Tribe on
    which the casino will be built. There is an additional
    82&nbsp;acres contiguous to the reservation land pending BIA
    approval to be placed into trust that could be used for
    additional development of the project. The Jamul Tribe and Lakes
    were in the process of</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, 6&nbsp;acres is reservation land held by the Jamul Tribe on
    which the casino will be built. There is an additional
    82&nbsp;acres contiguous to the reservation land pending BIA
    approval to be placed into trust that could be used for
    additional development of the project. The Jamul Tribe and Lakes
    were in the process of</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, 6&nbsp;acres is reservation land held by the Jamul Tribe on
    which the casino will be built. There is an additional
    82&nbsp;acres contiguous to the reservation land pending BIA
    approval to be placed into trust that could be used for
    additional development of the project. The Jamul Tribe and Lakes
    prepared an EIS and</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">47

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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    <TD width="23%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
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<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>January&nbsp;2, 2005</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    preparing an EIS, as described below.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    preparing an EIS, as described below and completing the land in
    trust application.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    trust application, which has been submitted to, reviewed and
    recommended for approval by the regional office of the BIA. The
    Washington,&nbsp;D.C. office of the BIA is currently reviewing
    the submission.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable county agreement, if applicable</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable state compact that allows for gaming consistent with
    that outlined in the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>NIGC approval of management contract in current and desired
    form</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted for approval by the NIGC in 2000 and should occur
    at approximately the same time the land is being placed into
    trust by the BIA.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted for approval by the NIGC in 2000 and approval is
    not expected to occur until the process to place land in trust
    by the BIA is complete.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, submitted for approval by the NIGC in 2000. We are in
    communication with the NIGC and have responded to initial
    comments. Approval is not expected until the process to place
    land in trust by the BIA is complete.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Resolution of all litigation and legal obstacles</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, there has been some local opposition regarding the project,
    although no formal legal action has been taken.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, there has been some local opposition regarding the project,
    although no formal legal action has been taken.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, there has been some local opposition regarding the project,
    although no formal legal action has been taken.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Financing for construction</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, however, preliminary discussions with investment bankers
    regarding assisting in obtaining financing have taken place.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Any other significant project milestones or contingencies,
    the outcome of which could have a material affect on the
    probability of project completion as planned</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; evaluation and conclusion regarding the above
    critical milestones and progress:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Jamul Indian Village is a federally recognized tribe with a
compact with the State of California and has an approximate
6-acre reservation on which the casino is planned to be built.
The primary effort in this project has been to place
approximately 82&nbsp;acres of land contiguous to the
reservation into trust for gaming. Lakes acquired 101&nbsp;acres
of land contiguous to the 6&nbsp;acres of reservation land of
which 19&nbsp;acres relate to land with certain easements, which
will not be accepted into trust. The trust application,
including an Environmen-
</DIV>

<P align="center" style="font-size: 10pt;">48

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<DIV align="left" style="font-size: 10pt;">
tal Impact Statement (&#147;EIS&#148;), has been prepared,
submitted to, reviewed and recommended for approval by the
regional office of the BIA. The Washington,&nbsp;D.C. office of
the BIA is currently reviewing the submission to determine if
the land should be taken into trust. There has been some local
opposition regarding the project. An EIS is more rigorous to
complete than a more typical EA (Environmental Assessment). The
EIS was more intense and took longer to prepare but is
considered a better method to address all potential
environmental concerns and to mitigate potential future
opposition that may delay the project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The process of getting the land contiguous to the reservation
placed into trust has been slow. Therefore, during August of
2005, the Jamul Tribe and Lakes formally announced plans to
build the casino on the approximately 6&nbsp;acres of
reservation land held by the Jamul Tribe. Reservation land
qualifies for gaming without going through a land in trust
process. The approximate size of the casino and related guest
amenities will not change in total, as the casino was always
planned to be built on the reservation land. The approximate
6-acre project would be built on various levels to accommodate
essentially all of the same amenities that were planned for the
project on the larger parcel of land. Therefore, the design of
the project would change significantly from a complex of
lower-level buildings spread out over a larger area to a
multi-level resort built on a smaller parcel of land. Total
square footage, nature or cost of the project are not expected
to change significantly as it will be primarily the same project
being built on a smaller footprint.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has consulted with third-party advisors as to the
architectural feasibility of the alternative plan and has been
assured that the project can be successfully built on the
reservation land. The Company has completed economic models for
each alternative and concluded that either would result in a
successful operation assuming that adequate financing can be
obtained. Therefore, the Company believes this project will be
successfully completed. The development agreement and management
contract is subject to approval by the NIGC and is currently in
the review process. A consulting agreement with the Jamul Tribe
is also under consideration. Construction of the casino could
begin in early 2007 with an estimated opening date of the casino
12&nbsp;months thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the form of tribal-state compact first signed by the State
of California with both the Jamul and Shingle Springs tribes in
1999, each tribe is allowed to operate up to 350 Class&nbsp;III
slot machines without licenses from the state. This form of
compact allows tribes to operate up to an additional 1,650
Class&nbsp;III slot machines by obtaining licenses for the
devices from the state. Under these tribal-state compacts, there
is a state-wide limitation on the aggregate number of
Class&nbsp;III slot machine licenses that are available to
tribes. Certain tribes have entered into new tribal-state
compacts or amendments to the 1999 form of tribal-state compact
that allow them to operate an unlimited number of Class&nbsp;III
slot machines without the need for obtaining additional
licenses, subject to the payment of additional fees to the
state, including in recent cases, fees based on a percentage of
slot &#147;net win.&#148; Currently, neither the Jamul tribe nor
the Shingle Springs tribe have amended their tribal-state
compacts. If the compacts are not renegotiated and amended the
tribes could operate under their existing compacts which allow
for up to 350 Class&nbsp;III gaming devices and an unlimited
number of Class&nbsp;II gaming devices. This number of gaming
devices is adequate to equip the planned developments.
Therefore, Lakes believes the availability of additional slot
licenses is not an issue that could prevent the projects from
progressing. The Jamul project is currently planned to open with
349 Class&nbsp;III slot machines and approximate 1,650
Class&nbsp;II devices.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Other active projects</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has entered into consulting agreements and management
contracts with two other tribes. Lakes will assist these tribes
in refurbishing two existing casinos and building three new
casinos. As of January&nbsp;2, 2005 the aggregate long-term
assets in these casino projects is less than $0.1&nbsp;million.
In early 2005, the management contracts with each tribe were
submitted to the NIGC for approval. Lakes and the tribes expect
the majority of the construction necessary for these projects to
be funded by third parties. Lakes&#146; current aggregate
financial commitment related to the projects is approximately
$2.1&nbsp;million.
</DIV>

<P align="center" style="font-size: 10pt;">49

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Nipmuc Nation</I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Business arrangement</U>:</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In July 2001, Lakes entered into development and management
agreements with the Nipmuc Nation of Massachusetts (&#147;Nipmuc
Nation&#148;) for a potential future casino resort in the
eastern United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nipmuc Nation is a state-recognized tribe. In January 2001,
the Nipmuc Nation received a draft, preliminary factual finding
from the Assistant Secretary&nbsp;&#151; Indian Affairs
(&#147;AS&#150;IA&#148;) indicating that the Nipmuc Nation was
entitled to federal recognition. Based on these facts, as well
as the Company&#146;s evaluation of the project&#146;s
geographic location and the feasibility of the project&#146;s
success given such location, the structure and stability of the
tribal government, the scope of the proposed project, including
the physical scope of the contemplated facility and the expected
financial scope of the related development, and the nature of
the business opportunity, Lakes entered into a development and
management contract with the Nipmuc Nation in July 2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table represents the status of each of the
critical milestones as of December&nbsp;29, 2002 and
December&nbsp;28, 2003. Both the positive and negative evidence
was reviewed during Lakes&#146; evaluation of the critical
milestones. During the second quarter of 2004, the BIA issued
its final determination denying the Nipmuc Nation&#146;s
application for federal recognition. At that time, Lakes
recorded an impairment charge of $5.8&nbsp;million related to
long-term assets related to the Nipmuc Nation project. Lakes
also recorded a realized loss on notes receivable of
$0.8&nbsp;million related to the fair value of the note
receivable from the Nipmuc Nation.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Federal recognition of the tribe</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, see discussion below.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, see discussion below.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Possession of usable land corresponding with needs based on
    the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, Lakes had land options where the casino could be built
    pending BIA approval and placement into trust by the federal
    government.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, Lakes had land options where the casino could be built
    pending BIA approval and placement into trust by the federal
    government.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable land placed in trust by Federal government</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, Lakes had purchased land options on behalf of the Nipmuc
    Nation where the casino would be built pending BIA approval and
    placement into trust by the federal government. This process
    would occur after the pending resolution of federal recognition
    of the tribe.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, Lakes had land options on behalf of the Nipmuc Nation where
    the casino would be built pending BIA approval and placement
    into trust by the federal government. This process would occur
    after the pending resolution of federal recognition of the tribe</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable county agreement, if applicable</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable state compact that allows for gaming consistent with
    that outlined in the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, The Nipmuc Nation did not have a compact with the state. The
    process for receiving a state compact would occur after
    resolution of federal recognition</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, The Nipmuc Nation did not have a compact with the state. The
    process for receiving a state compact would occur after
    resolution of federal recognition</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>NIGC approval of management contract in current and desired
    form</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, The process of receiving NIGC approval of the management
    contract would occur after the Nipmuc Nation received federal
    recognition, usable land was placed into trust with the federal
    government and a state compact was signed.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, The process of receiving NIGC approval of the management
    contract would occur after the Nipmuc Nation received federal
    recognition, usable land was placed into trust with the federal
    government and a state compact was signed.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">50

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Resolution of all litigation and legal obstacles</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    None</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    None</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Financing for construction</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Any other significant project milestones or contingencies,
    the outcome of which could have a material affect on the
    probability of project completion as planned</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No others known at this time by Lakes.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; evaluation and conclusion regarding the above
    critical milestones and progress:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Nipmuc Nation is a state recognized tribe. In January 2001,
the Nipmuc Nation received a draft, preliminary factual finding
from the AS&#150;IA indicating that the Nipmuc Nation was
entitled to federal recognition. This finding, however, did not
have the approval of the Office of the Solicitor of the
Department of Indian Affairs, as required, and in fact, the
Office of the Solicitor had approved the recommendation of the
BIA, which recommended a proposed negative finding. In September
2001, the Nipmuc Nation received the official proposed negative
finding, as evidenced by its publication in the October&nbsp;1,
2001 Federal Register. As required under law, the Nipmuc Nation
was permitted to challenge the proposed negative finding, which
the Nipmuc Nation chose to do. The Nipmuc Nation engaged
consultants and advisors, including the former Senior Historian
for the BIA Branch of Acknowledgement and Research to assist
them in submitting a formal response in September 2002. The
response was organized in a manner to address the four remaining
deficiencies outlined in the BIA&#146;s published proposed
negative finding. Indications to Lakes from the Nipmuc Nation
and its consultants and advisors throughout the process of
preparing the response were very positive about obtaining a
reversal of the proposed negative finding. During 2002 and 2003,
Lakes continued to believe it was probable the Nipmuc Nation
would become a federally recognized tribe because Lakes received
advice from independent third-party consultants and advisors
that supported a favorable ruling. As a result of this analysis,
Lakes believed that, notwithstanding the proposed negative
finding, it was probable that the Nipmuc Nation would likely be
granted federal recognition based on additional genealogical
data and other information submitted by the Nipmuc Nation to the
BIA for reconsideration. During the second quarter of 2004,
however, the BIA issued its final determination denying the
Nipmuc Nation&#146;s application for federal recognition.
Although the Nipmuc Nation is appealing the determination with
the BIA, Lakes made a decision to discontinue funding the
project in the second quarter of 2004. At that time, as
discussed above, Lakes wrote-off its long-term assets related to
the Nipmuc Nation project. Should the Nipmuc Nation become
federally recognized and open a successful casino operation
(with or without Lakes&#146; assistance) Lakes is entitled to
receive payment in full of its notes receivable and deferred
interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The other critical milestones relating to the project were
pending the above federal recognition issue discussed above but
Lakes believed it was probable the Nipmuc Nation would
eventually be successful in obtaining a compact with the State
if necessary, NIGC approval of the development and management
contract, land placed into trust by the BIA and third party
financing.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Cloverdale Rancheria</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On August&nbsp;10, 2000, the Company entered into a joint
venture for the purpose of financing and developing gaming
facilities on Indian-owned land in California. Under the
agreement, Lakes formed a joint venture limited liability
company with MRD Gaming, a limited liability company
(&#147;MRD&#148;). The venture between Lakes and MRD holds the
contract to finance casino facilities with the Cloverdale
Rancheria of Pomo Indians (&#147;Cloverdale Rancheria&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The planned site for the potential new casino development is
located on Highway 101 in Cloverdale, California, approximately
60&nbsp;miles north of San&nbsp;Francisco.
</DIV>

<P align="center" style="font-size: 10pt;">51

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table represents the status of each of the
critical milestones as of December&nbsp;29, 2002 and
December&nbsp;28, 2003. Both the positive and negative evidence
was reviewed during Lakes&#146; evaluation of the critical
milestones. During the fourth quarter of 2004, Lakes wrote-off
its long-term assets related to the Cloverdale project after
determining that it was not probable that the casino project
would open.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>Federal recognition of the tribe</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Possession of usable land corresponding with needs based on
    the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No; However, the Cloverdale Rancheria had reached an agreement
    with a member of the tribe, to lease 12&nbsp;acres of Indian
    land for the purpose of conducting gaming. The tribe had the
    authority to conduct gaming on the site; however, the lease was
    subject to approval by the Secretary of the Interior.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No; However, the Cloverdale Rancheria had reached an agreement
    with a member of the tribe, to lease 12&nbsp;acres of Indian
    land for the purpose of conducting gaming. The tribe had the
    authority to conduct gaming on the site; however, the lease was
    subject to approval by the Secretary of the Interior.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable land placed in trust by Federal government</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, the land had not yet been put into trust. In a decision in
    1999, the Board of Indian Appeals in the Department of the
    Interior had held that the Secretary of the Interior had an
    obligation to accept title to the tribal members property in the
    name of the United States in trust for the tribal member,
    subject to the tribal member being able to convey marketable
    title to the United States. The process was delayed as a result
    of price negotiation between the tribe and the individual tribal
    member.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, the land had not yet been put into trust. In a decision in
    1999, the Board of Indian Appeals in the Department of the
    Interior had held that the Secretary of the Interior had an
    obligation to accept title to the tribal members property in the
    name of the United States in trust for the tribal member,
    subject to the tribal member being able to convey marketable
    title to the United States. The process was delayed as a result
    of price negotiation between the tribe and the individual tribal
    member.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable county agreement, if applicable</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Usable state compact that allows for gaming consistent with
    that outlined in the Company&#146;s project plan</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, according to the legal opinion, the Cloverdale Rancheria had
    not yet entered into a gaming compact with the State of
    California. However, the tribe intended to submit a request for
    a Class&nbsp;III gaming compact identical in all material
    respects to compacts entered into in 1999 by approximately 57
    Indian tribes and subsequently ratified by the State of
    California. Therefore, we believed that the compact was likely
    to be approved. Indian tribes have the right to operate
    Class&nbsp;II gaming operations without a compact with the state.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No, according to the legal opinion, the Cloverdale Rancheria had
    not yet entered into a gaming compact with the State of
    California. However, the tribe intended to submit a request for
    a Class&nbsp;III gaming compact identical in all material
    respects to compacts entered into in 1999 by approximately 57
    Indian tribes and subsequently ratified by the State of
    California. Therefore, we believed that the compact was likely
    to be approved. Indian tribes have the right to operate
    Class&nbsp;II gaming operations without a compact with the state.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">52

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<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="31%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- Right VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>&nbsp;Critical Milestone</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;29, 2002</B></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>December&nbsp;28, 2003</B></TD>
</TR>


<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I>NIGC approval of management contract in current and desired
    form</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, there was no management agreement between the Company and
    the Cloverdale Rancheria.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    N/A, there was no management agreement between the Company and
    the Cloverdale Rancheria.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Resolution of all litigation and legal obstacles</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    None</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    None</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Financing for construction</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    No</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <I>Any other significant project milestones or contingencies,
    the outcome of which could have a material affect on the
    probability of project completion as planned</I></TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, the form of the agreement between the joint venture and the
    tribe received a &#147;declination&#148; letter from the NIGC
    thus allowing the project to go forward in accordance with the
    agreement.</TD>
    <TD style="border-right:1.5pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Yes, the form of the agreement between the joint venture and the
    tribe received a &#147;declination&#148; letter from the NIGC
    thus allowing the project to go forward in accordance with the
    agreement.</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Lakes&#146; evaluation and conclusion regarding the above
    critical milestones and progress:</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
After further evaluation of the site, Lakes proposed to the
Cloverdale Rancheria that the agreements be changed to include a
management contract to assist the Cloverdale Rancheria with a
bigger and better project. The Cloverdale Rancheria offered a
counter proposal. Lakes and the Cloverdale Rancheria could not
reach agreement on a new management contract. The Cloverdale
Rancheria then notified the venture between Lakes and MRD during
2002 that the Cloverdale Rancheria wished to terminate the
relationship between the two parties. The partnership advised
the Cloverdale Rancheria that the partnership believed the
contract to be enforceable. In a written response, the
Cloverdale Rancheria acknowledged that although the partnership
loaned the Cloverdale Rancheria money and that it would endeavor
to repay the money in a timely manner, it believed there was no
valid, enforceable contract. Subsequently, the Cloverdale
Rancheria refused to respond to a formal confirmation request of
the money owed to Lakes and the Cloverdale Rancheria&#146;s
sovereign status makes enforcement of Lakes&#146; asserted
contractual rights difficult and uncertain.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of December&nbsp;28, 2003 and December&nbsp;29, 2002, Lakes
had an outstanding note receivable of $0.3&nbsp;million.
Additionally, Lakes had recorded an accrued expense of
$0.6&nbsp;million, which was on the consolidated balance sheet
as of December&nbsp;28, 2003 and December&nbsp;29, 2002. The
accrual represented a potential liability of Lakes to an
unrelated third party which was payable upon the opening of the
casino. During the fourth quarter of 2004 Lakes determined
successful completion of the casino development was not likely
given increased local opposition to the planned casino project.
Specifically the County Board of Supervisors voted in February
2005 to oppose any casino project in their County. Therefore, in
2004 the Company recorded an unrealized loss on notes receivable
of $0.3&nbsp;million related to the fair value of its note
receivable from the Cloverdale Rancheria. Lakes also wrote-off
of an accrued liability related to the project of
$0.6&nbsp;million which was only payable if the casino opened.
Additionally, in 2002, Lakes recorded an impairment charge of
$1.1&nbsp;million on Lakes&#146; intangible assets related to
the acquisition of the development agreement for the Cloverdale
Indian casino project. In 2002 the Company&#146;s relationship
with the Cloverdale Rancheria deteriorated, which resulted in
Lakes recognizing an impairment of the intangible asset.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Kickapoo Tribe</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes entered into consulting agreements and management
contracts with the Kickapoo Traditional Tribe of Texas (the
&#147;Kickapoo Tribe&#148;) effective January 2005 to improve
the performance of the gaming operations conducted at the
Kickapoo Tribe&#146;s existing Lucky Eagle Casino in Eagle Pass,
Texas, located approximately 140&nbsp;miles southwest of
San&nbsp;Antonio. During the third quarter of fiscal 2005 the
Company&#146;s relationship with the Kickapoo Tribe deteriorated
and in November 2005, Lakes and the Kickapoo Tribe terminated
their business relationship. Lakes committed to provide advances
to the Kickapoo Tribe of up to $2.0&nbsp;million for business
improvement purposes. As of November&nbsp;15, 2005, Lakes had
advanced approximately $1.4&nbsp;million to the Kickapoo Tribe.
Additionally, unpaid invoices related to the project total
</DIV>

<P align="center" style="font-size: 10pt;">53

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<DIV align="left" style="font-size: 10pt;">
approximately $4&nbsp;million, some or all of which Lakes may be
required to pay. As a result of the terminated business
relationship with the Kickapoo Tribe, Lakes intends to negotiate
with the Kickapoo Tribe to reach an agreement to resolve all of
the financial terms of the contracts including repayment of the
advances and payment of the unpaid invoices, and to formally
terminate the gaming operations consulting agreement, management
contract, and related ancillary agreements relating to the
project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Income Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for income taxes under the provisions of
Statement of Financial Accounting Standards No.&nbsp;109,
<I>Accounting for Income Taxes.</I> Under this method, the
Company determines deferred tax assets and liabilities based
upon the difference between the financial statement and tax
bases of assets and liabilities using enacted tax rates in
effect for the year in which the differences are expected to
affect taxable income. The tax consequences of most events
recognized in the current year&#146;s consolidated financial
statements are included in determining income taxes currently
payable. However, because tax laws and financial accounting
standards differ in their recognition and measurement of assets,
liabilities, equity, revenue, expenses, gains and losses,
differences arise between the amount of taxable income and
pretax financial income for a year and between the tax bases of
assets or liabilities and their reported amounts in the
consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because it is assumed that the reported amounts of assets and
liabilities will be recovered and settled, respectively, a
difference between the tax basis of an asset or a liability and
its reported amount in the balance sheet will result in a
taxable or a deductible amount in some future years when the
related liabilities are settled or the reported amounts of the
assets are recovered, hence giving rise to deferred tax assets
and liabilities. The Company must then assess the likelihood
that deferred tax assets will be recovered from future taxable
income and to the extent management believes that recovery is
not likely, they must establish a valuation allowance. The
Company recorded a 100&nbsp;percent valuation allowance against
all deferred income tax assets as of January&nbsp;2, 2005 except
for deferred tax assets related to unrealized investment losses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Recent Accounting Pronouncements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued Statement of Financial
Accounting Standards No.&nbsp;153, <I>Exchanges of Non-Monetary
Assets</I>&nbsp;&#151; An Amendment of APB Opinion No.&nbsp;29,
<I>Accounting for Non-monetary Transactions.</I>
SFAS&nbsp;No.&nbsp;153 eliminates the exception from fair value
measurement for non-monetary exchanges of similar productive
assets in paragraph&nbsp;21(b) of APB Opinion No.&nbsp;29, and
replaces it with an exception for exchanges that do not have
commercial substance. SFAS&nbsp;No.&nbsp;153 is effective for
fiscal periods beginning after June&nbsp;15, 2005. The Company
does not expect SFAS&nbsp;No.&nbsp;153 to have a material impact
on the Company&#146;s financial condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued Statement of Financial
Accounting Standards No.&nbsp;123 (revised 2004),
&#147;Share-Based Payment&#148; (SFAS&nbsp;No.&nbsp;123(R)),
which amends FASB Statement Nos. 123 and 95.
SFAS&nbsp;No.&nbsp;123(R) requires all companies to measure
compensation expense for all share-based payments (including
employee stock options) at fair value and recognize the expense
over the related service period. Additionally, excess tax
benefits, as defined in SFAS&nbsp;No.&nbsp;123(R), will be
recognized as an addition to paid-in capital and will be
reclassified from operating cash flows to financing cash flows
in the Consolidated Statements of Cash Flows.
SFAS&nbsp;No.&nbsp;123(R) will be effective January&nbsp;1,
2006. We are currently evaluating the effect that
SFAS&nbsp;No.&nbsp;123(R) will have on our financial position,
results of operations and operating cash flows. We have included
information regarding the effect on net loss and net loss per
common share had we applied the fair value expense recognition
provisions of the original SFAS&nbsp;No.&nbsp;123 in Note&nbsp;1
to the Consolidated Financial Statements included in Item&nbsp;8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Results of Operations</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following discussion and analysis should be read in
conjunction with the consolidated financial statements and notes
thereto included elsewhere in this Annual Report on
Form&nbsp;10-K for the year ended January&nbsp;2, 2005.
</DIV>

<P align="center" style="font-size: 10pt;">54

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fiscal Year Ended January&nbsp;2, 2005 Compared to Fiscal
Year Ended December&nbsp;28, 2003</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Revenues.</I> Total revenues were $17.6&nbsp;million for the
fiscal year ended January&nbsp;2, 2005 (&#147;2004&#148;)
compared to $4.3&nbsp;million for the fiscal year ended
December&nbsp;28, 2003 (&#147;2003&#148;). Revenues for both
years were derived from WPTE operations, primarily from
television license fees related to the World Poker Tour
television series. WPTE receives fixed license payments from TRV
subject to satisfaction of production milestones and other
conditions. The increase in revenue is primarily due to
increased license fees relating to a greater number of Season
Two and Three episodes delivered to TRV during 2004, compared to
the license fees resulting from the Season One and Two episodes
delivered to TRV during 2003. In April 2004, TRV exercised its
option to broadcast Season Three and in March 2005, TRV
exercised its option for Season Four. TRV has options for three
additional seasons. WPTE began delivering Season Three episodes
in the fourth quarter of 2004 with the remaining episodes
delivered in the first and second quarter of fiscal 2005. Also
contributing to the increase is revenue of approximately
$1.8&nbsp;million related to WPTE host fees, sponsorship and
other revenue compared to $0.4&nbsp;million in 2003 due to
growth in these areas in 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Selling, general and administrative expense.</I> Selling,
general and administrative expenses were $16.4&nbsp;million in
2004 compared to $6.9&nbsp;million in 2003. The increase of
$9.5&nbsp;million was primarily due to an increase of
approximately $4.7&nbsp;million related to WPTE increased
headcount costs, professional service fees related to the public
offering of WPTE in 2004 and product licensing commissions. The
remaining increase of approximately $4.8&nbsp;million in 2004 is
due primarily to an increase in Lakes&#146; professional fees of
approximately $2.9&nbsp;million and approximately
$0.6&nbsp;million in additional rent expense related to an
expected deficiency in the guaranteed residual value of the
aircraft the Company leases. The increase in professional fees
is due to a reversal of an unused litigation accrual of
approximately $3.2&nbsp;million in 2003 related to the
Company&#146;s prior agreement to indemnify Grand Casinos in
connection with the Stratosphere litigation matters. The
remaining approximately, $1.3&nbsp;million increase primarily
related to increased travel in 2004 to support Lakes&#146;
business development initiatives.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,130</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reversal of legal accrual</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,212</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,918</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Production costs.</I> Production costs were
$10.2&nbsp;million in 2004 compared to $2.7&nbsp;million in
2003. WPTE production costs increased $7.5&nbsp;million as
compared to 2003. WPTE production costs and related episode
revenues are recognized in the period the relative episode is
delivered to TRV. The increase is due to a greater number of
episodes being delivered to TRV during 2004 as compared to 2003.
The gross profit percentage increased in 2004 to 42% compared to
37% in 2003. The increased gross margin is primarily due to WPTE
selling more international television licensing and product
licensing as compared to 2003, which are at higher margins.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Impairment losses.</I> Net impairment losses were
$6.2&nbsp;million in 2004 compared to $1.0&nbsp;million in 2003.
In 2004, Lakes recognized a $5.8&nbsp;million impairment charge
related to long-term assets related to the Nipmuc Nation
project. Lakes also recorded an unrealized loss on notes
receivable of $0.8&nbsp;million related to the fair value of the
note receivable from the Nipmuc Nation. In June 2004, the BIA
issued its final determination denying the Nipmuc Nation&#146;s
application for federal recognition. Although the Nipmuc Nation
is appealing the determination with the BIA, Lakes made a
decision to discontinue funding the project in the second
quarter of 2004. At that time, Lakes recorded the impairment
charge as an unrealized loss on notes receivable. Should the
Nipmuc Nation become federally recognized and successfully open
a casino operation (with or without Lakes&#146; assistance)
Lakes is entitled to receive payment in full of its advances and
deferred interest. Additionally in 2004, Lakes recognized a net
impairment charge of $1.0&nbsp;million related to the sale of
property in Las Vegas, Nevada and a gain of $0.6&nbsp;million
related to the write-off of an accrued liability related to the
Cloverdale project of $0.6&nbsp;million which was only payable
if the casino opened. The Company also recorded an unrealized
loss on notes receivable of $0.3&nbsp;million related to the
fair value of its note receivable from the
</DIV>

<P align="center" style="font-size: 10pt;">55

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<DIV align="left" style="font-size: 10pt;">
Cloverdale Rancheria. In 2003, Lakes recognized an impairment
charge of $1.0&nbsp;million related to the sale of property in
Las Vegas, Nevada.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net unrealized gain on notes receivable.</I> Net unrealized
gain on notes receivable was $3.1&nbsp;million and
$3.5&nbsp;million for 2004 and 2003, respectively, related to
the adjustment to fair value of the Company&#146;s notes
receivable from Indian tribes. These fair value calculations are
determined based on current assumptions related to the projects
as discussed above under &#147;<U>Accounting for long-term
assets related to Indian casino projects.</U>&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Loss from operations.</I> The loss from operations was
$12.9&nbsp;million in 2004 compared to $3.4&nbsp;million in
2003. The increase in the loss from operations of
$9.5&nbsp;million in 2004 is due primarily to a net increase of
$5.2&nbsp;million related to impairment charges, an increase in
selling, general and administrative costs of $4.8&nbsp;million
related to Lakes, partially offset by a $1&nbsp;million
improvement in the operating results of WPTE. The net unrealized
gain on notes receivable decreased by $0.4&nbsp;million in 2004
compared to 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Other income.</I> Other income was $12.1&nbsp;million in 2004
compared to $0.8&nbsp;million in 2003. Other income in 2004
included an $11.3&nbsp;million settlement received in December
2004 related to a tax sharing agreement entered into in 1998
with Grand Casinos, a subsidiary of Park Place Entertainment,
which was renamed Caesars Entertainment, Inc.
(&#147;Caesars&#148;). Under the terms of its tax sharing
agreement with Grand Casinos, any further tax benefits
subsequent to 1998 relating to capital losses resulting from the
write-off of its investment in Stratosphere would be shared
equally by Lakes and Grand Casinos, up to a benefit of
approximately $12.0&nbsp;million to Lakes. The investment in
Stratosphere was prior to Lakes&#146; spin-off from Grand
Casinos in December 1998. On December&nbsp;1, 2004, Lakes
entered into a settlement agreement with Grand Casinos. Lakes
received a cash payment of $11.3&nbsp;million in settlement of
the dispute, which was recorded as other income in the
consolidated statement of loss for the year ended
January&nbsp;2, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Taxes.</I> The Company recorded a tax provision of
$4.0&nbsp;million as of January&nbsp;2, 2005 compared to a tax
benefit of $1.0&nbsp;million as of December&nbsp;28, 2003. The
loss before income taxes, equity in earnings (loss) of
investments and minority interest was $0.9&nbsp;million for the
period ended January&nbsp;2, 2005 compared to a loss of
$2.6&nbsp;million for the period ended December&nbsp;28, 2003.
Included in the loss before income taxes in 2004 is the
settlement of $11.3&nbsp;million related to the tax sharing
agreement with Grand Casinos. Lakes has not recorded any tax
related to the settlement payment of $11.3&nbsp;million, as
Lakes believes this settlement is not taxable to Lakes.
Additionally, in accordance with Statement of Financial
Accounting Standards No.&nbsp;109, <I>Accounting for Income
Taxes (SFAS&nbsp;No.&nbsp;109)</I>, Lakes evaluated the ability
to utilize deferred tax assets arising from net operating loss
carry forwards, net deferred tax assets relating to Lakes&#146;
accounting for advances made to Indian tribes and other ordinary
items and determined that a valuation allowance was appropriate
at January&nbsp;2, 2005. Lakes evaluated all evidence and
determined the negative evidence relating to net losses
generated over the past three years outweighed the current
positive evidence that the Company believes exists surrounding
its ability to generate significant income from its long-term
assets related to Indian casino projects. The Company recorded a
100% valuation allowance against these items at January&nbsp;2,
2005. In addition, the Company recognized a deferred tax asset
for capital losses related to asset impairment charges. The
realization of these benefits is dependent on the generation of
capital gains. The Company believes it will have sufficient
capital gains in the future to utilize these benefits. As a
result, Lakes increased its net valuation allowance by
approximately $6.5&nbsp;million in 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Equity in earnings (loss) of investments, net of tax.</I>
Lakes recognized equity in earnings of investments, net of tax
of $0.7&nbsp;million, which is primarily due to a gain
recognized by its 50% ownership interest in 2022 Ranch, LLC. The
entity sold land in 2004, and Lakes&#146; share of the gain was
$0.7&nbsp;million, net of tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Losses Per Common Share and Net Losses.</I> For the fiscal
year ended January&nbsp;2, 2005, basic and diluted losses per
common share were $0.18, compared to basic and diluted losses of
$0.08&nbsp;per common share for the same period in the prior
year. Net losses for the fiscal year ended January&nbsp;2, 2005
increased $2.2&nbsp;million to $4.0&nbsp;million, compared to
$1.8&nbsp;million for the prior year. This increase in net
losses is due to two primary reasons. First, the loss from
operations increased $9.5&nbsp;million. This increase in the
loss from operations was offset by an increase of
$11.3&nbsp;million in other income. Secondly, the net
improvement in the loss before income taxes, equity in earnings
(loss) of investments and minority interest of $1.8&nbsp;million
in 2004 over 2003
</DIV>

<P align="center" style="font-size: 10pt;">56
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<DIV align="left" style="font-size: 10pt;">
was offset by an increase in the tax provision of
$5.1&nbsp;million in 2004 compared to 2003 due primarily to an
increase in the Company&#146;s valuation allowance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Outlook.</I> It is currently contemplated that there will be
minimal operating revenues for 2005 from existing casino
development projects. The majority of Lakes&#146; revenues are
expected to come from WPTE in 2005. Besides domestic television
licensing revenues from WPTE&#146;s delivery of Seasons Three
and Four of the World Poker Tour, other sources of expected
revenues include international television licensing revenues
resulting from the distribution of the World Poker Tour&#146;s
Seasons One and Two and product licensing fees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fiscal Year Ended December&nbsp;28, 2003 Compared to Fiscal
Year Ended December&nbsp;29, 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Revenues.</I> Total revenues were $4.3&nbsp;million for the
fiscal year ended December&nbsp;28, 2003, compared to
$1.5&nbsp;million in the prior year. Revenues for 2003 were
derived from license fees related to the World Poker Tour
series, which airs on the Travel Channel. Revenues for the prior
year were derived from fees related to the management of Grand
Casino Coushatta through January&nbsp;16, 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Costs and Expenses.</I>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>10,130</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>7,985</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reversal of legal accrual</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,212</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,985</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,004</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total costs and expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>11,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>18,582</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total costs and expenses decreased $7.4&nbsp;million, to
$11.2&nbsp;million for the year ended December&nbsp;28, 2003,
from $18.6&nbsp;million for the prior year. Selling, general and
administrative expenses included an increase from
$8.0&nbsp;million for 2002 to $10.1&nbsp;million for 2003,
principally due to costs associated with property sales in
Las&nbsp;Vegas, Nevada, as well as an increase in costs
associated with WPTE during 2003 and the reversal of a legal
accrual of $3.2&nbsp;million. Included in selling, general and
administrative expenses were payroll and related taxes and
benefits of $4.3&nbsp;million and $3.5&nbsp;million and
professional fees of $2.9&nbsp;million and $1.7&nbsp;million,
respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Production costs increased $1.7&nbsp;million to
$2.7&nbsp;million for the year ended December&nbsp;28, 2003,
from $1.0&nbsp;million for the prior year. This increase
corresponds with the increase in revenues related to WPTE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Impairment losses decreased by $8.1&nbsp;million in 2003
compared to 2002. The year ended December&nbsp;28, 2003 included
a $1.0&nbsp;million impairment charge taken on the Polo Plaza
property in Las Vegas, Nevada. The year ended December&nbsp;29,
2002 included $9.1&nbsp;million of such charges. Of this amount,
an impairment charge of $3.0&nbsp;million related to the
carrying value of the Polo Plaza and Travelodge properties in
Las Vegas. These properties were owned by Grand Casinos at the
time of the spin-off in 1998. The Company contracted to sell
these properties to Metroflag. The impairment charges were
related to the re-negotiation of the payment amounts and terms.
In 2002, Lakes wrote-off a $4.0&nbsp;million note receivable
from Living Benefits Financial Services as management determined
the note was not likely to be collected due to increased
competition in the Viatical business and restrictions on ability
to make further policy acquisitions. The write-off of the note
receivable was reflected as an impairment charge. In 2002, Lakes
recorded an impairment charge of $1.0&nbsp;million related to
Shark Club property held in Las Vegas, Nevada, which was
ultimately sold in 2003 at its adjusted carrying value.
Additionally, in 2002 Lakes recorded an impairment charge of
$1.1&nbsp;million on Lakes&#146; intangible assets related to
the acquisition of the management contract for the Cloverdale
Indian casino project. In 2002 the Cloverdale Rancheria
terminated the management contract with Lakes, which resulted in
Lakes recognizing an impairment of the intangible asset.
</DIV>

<P align="center" style="font-size: 10pt;">57

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Depreciation expenses remained constant at $0.5&nbsp;million for
the years ended December&nbsp;28, 2003 and December&nbsp;29,
2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Net unrealized gain on notes receivable.</I> Net unrealized
gain on notes receivable was $3.5&nbsp;million and
$0.7&nbsp;million for 2003 and 2002, respectively, related to
the adjustment to fair value of the Company&#146;s notes
receivable from Indian tribes. These fair value calculations are
determined based on current assumptions related to the projects
as discussed above under &#147;<U>Accounting for long-term
assets related to Indian casino projects.&#148;</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Taxes.</I> Benefit for income taxes was $1.0&nbsp;million for
the year ended December&nbsp;28, 2003, compared to
$4.4&nbsp;million for the prior year. The effective tax rates
for 2003 and 2002 were 38.5% and 29.1%, respectively. The 2002
effective rate was lower due to the provision of additional
valuation allowances for tax benefits not expected to be
realized related to an impairment of capital assets recognized
during 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Loss per Common Share and Net Loss.</I> For the year ended
December&nbsp;28, 2003, basic and diluted losses per common
share were $0.08. This compares to basic and diluted losses per
common share of $0.51 for the fiscal year ended
December&nbsp;29, 2002. The net loss decreased from
$10.9&nbsp;million for the year ended December&nbsp;29, 2002, to
$1.8&nbsp;million for the year ended December&nbsp;28, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Financial Condition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;2, 2005, Lakes&#146; consolidated balance sheet
included unrestricted cash and cash equivalents and short-term
investment balances of $57.6&nbsp;million. Included in this
amount was Lakes&#146; cash of $24.2&nbsp;million and
Lakes&#146; short-term investments of $1.1&nbsp;million. Also
included is WPTE cash of $4.5&nbsp;million and WPTE short-term
investments of $27.8&nbsp;million. WPTE cash and investments are
intended to be used in WPTE&#146;s business and not used in
Lakes&#146; business. As of January&nbsp;2, 2005, Lakes had no
operating revenues from casino operations and has had none since
the expiration of the management contract with the Coushatta
Tribe in January 2002. In 2003, WPTE had revenues of
$4.3&nbsp;million and a net loss of $0.5&nbsp;million. In 2004,
WPTE had revenues of $17.6&nbsp;million and net earnings of
$0.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August and September 2004, WPTE raised a total of
approximately $32.4&nbsp;million in cash proceeds from its
initial public offering, net of underwriting discounts and
estimated offering expenses. WPTE&#146;s cash resources are
expected to be used for WPTE&#146;s business and will not be
available for the Company&#146;s casino projects or other
non-WPTE businesses. The initial public offering resulted in the
termination of Lakes&#146; obligation to fund WPTE operations
under a limited revolving note receivable. As of January&nbsp;2,
2005, Lakes holds 12.5&nbsp;million shares or approximately 64%
of WPTE&#146;s common stock. Lakes&#146; is subject to
Rule&nbsp;144 regarding volume limitations for sales of WPTE
common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s primary source of cash for its development of
casino projects during the past two years has been from the
planned sale of assets. During 2004, the 2022 Ranch land, which
was owned by Lakes and its joint venture partner Land Baron
West, LLC, was sold. Lakes received cash in the amount of
approximately $2.5&nbsp;million related to the sale of the land
as well as through the settlement of a title dispute. Lakes also
received proceeds of $5.9&nbsp;million and $16.8&nbsp;million in
2004 and 2003, respectively, in connection with the sale of the
Polo Plaza and adjacent Travelodge property. Also during 2003,
Lakes received $16.0&nbsp;million related to the sale of the
Shark Club property in Las Vegas, Nevada. We expect that
proceeds from the sale of assets and proceeds from legal
settlements will decrease in future periods. Additionally in
December 2004, Lakes received $11.3&nbsp;million in settlement
of a tax sharing agreement with Grand Casinos.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our management contracts with our tribal partners require that
we provide financial support for project development in the form
of loans. These loans are interest-bearing; however, the loans
and related interest are not due until the casino is built and
has established profitable operations. In the event that the
casinos are not built, our only recourse is to attempt to
liquidate assets of the development, if any, excluding any land
in trust. A portion of the advances due from the Pokagon Band in
the approximate amount of $24.1&nbsp;million resulted from funds
advanced by the Company for the Pokagon Band&#146;s purchase of
land. The Company has a first deed of trust against this
property, which will be relinquished when the BIA places the
land into trust.
</DIV>

<P align="center" style="font-size: 10pt;">58

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We currently believe that our existing casino development
projects included in the table below will be constructed and
achieve profitable operations; however, no assurance can be made
that this will occur. If this does not occur, it is likely that
Lakes would incur substantial or complete losses on its notes
receivable from Indian tribes and related intangible assets
associated with the acquisition of the management contracts. In
addition, if Lakes&#146; current casino development projects are
not completed or, upon completion, fail to successfully compete
in the highly competitive market for gaming activities, Lakes
may lack the funds to compete for and develop future gaming or
other business opportunities and Lakes&#146; business could be
adversely affected to the extent that it may be forced to cease
its operations entirely.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Following is a table summarizing remaining maximum contractual
obligations as of January&nbsp;2, 2005 (in millions) which
reflects the amendment to the airplane lease entered into on
May&nbsp;1, 2005 and an amendment to the Shingle Springs
commitment in April 2005:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap><B>Payment Due by Period</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="18" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Less Than</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>More Than</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Contractual Obligations</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1&nbsp;Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>1-3&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>3-5&nbsp;Years</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>5&nbsp;Years</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Remaining Casino Development Commitment(1)(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jamul Tribe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shingle Springs Tribe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pokagon Band(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kickapoo Tribe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating Leases(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    WPTE Operating Leases(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    WPTE Purchase Obligations(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    WPTE Employee Obligations(7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>57.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>38.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Lakes anticipates that it will require additional capital
    through either public or private financings to meet the maximum
    casino development commitments. See table below detailing tribal
    casino development commitments.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    For the Pokagon Casino project, the Company has agreed to
    provide additional financing from its own funds if financing at
    an interest rate not to exceed 13% is not available from third
    parties. If this occurs and Lakes is required to provide all
    financing, this would be an additional commitment of up to
    approximately $54&nbsp;million. Currently, it appears that
    third-party financing will be available for this project.
    However, there can be no assurance that third-party financing
    will be available and that Lakes will not be required to provide
    this additional financing. The Company will be obligated to pay
    an amount to an unrelated third party once the Pokagon Casino is
    open and Lakes is the manager of the casino. The amount is
    payable quarterly for five years and is only payable if Lakes is
    the manager of the casino. The payment is part of a settlement
    and release agreement associated with Lakes obtaining the
    management contract with the Pokagon Band. The maximum liability
    over the five-year period is approximately $11&nbsp;million.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Lakes may be required to provide a guarantee of tribal debt
    financing or otherwise provide support for the tribal
    obligations related to any one or more of the projects. Any
    guarantees by Lakes or similar off-balance sheet liabilities
    will increase Lakes&#146; potential exposure in the event of a
    default by any of these tribes. No such guarantees or similar
    off-balance sheet liabilities existed at January&nbsp;2, 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    The Company leases an airplane, under a non-cancelable operating
    lease expiring April&nbsp;30, 2005. The lease was amended on
    May&nbsp;1, 2005. The new term is for a period of up to three
    years.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Through April 2005, WPTE had a month-to-month lease for office
    space. The monthly lease payment fluctuated from month-to-month
    based on the amount of space it utilized. The average amount
    paid per month under the lease was approximately $21,000. WPTE
    signed a new lease and moved into the new</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">59

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    office space in April 2005 where the monthly lease payments
    started at approximately $38,000 and will escalate up to
    approximately $45,000. The amount set forth in the table above
    assumes monthly lease payments through May 2011.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    Purchase obligations include the following: One-time development
    and hardware and software infrastructure fees of $400,000 and
    annual licensing fee of $135,000, required by the Alderney
    Gaming Control Commission, payable to WagerWorks; monthly
    retainer of $7,500 payable to Integrated Corporate Relations
    through July 2005.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    Employee obligation includes the base salaries payable to Steven
    Lipscomb, Audrey Kania and Robyn Moder under their respective
    employment agreements.</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Casino Development Advances/ Commitments</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>As of January&nbsp;2, 2005</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Commitments in</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Lakes&#146; Cash</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Excess of Available</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pre-</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Land Held</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Remaining</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>and</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cash and</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Construction</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>for</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Funding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Funding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Short-term</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Short-term</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Advances</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Development</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Funded</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Commitment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Commitment</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investments</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Investments</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="26" align="center" nowrap><B>(In millions)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jamul Tribe(a)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>30.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shingle Springs Tribe(b)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pokagon Band(c)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>73.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kickapoo Tribe(d)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>92.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>107.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>155.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>47.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>22.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(a)&nbsp;</TD>
    <TD align="left">
    Lakes plans to continue making advances on the remaining
    commitment to the Jamul Tribe on a monthly basis until the
    casino opens. Lakes plans to make advances of $3.0&nbsp;million
    and $5.9&nbsp;million during 2005 and 2006, respectively, to
    fulfill its remaining commitment to the Jamul Tribe.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR>
    <TD valign="top">
    (b)</TD>
    <TD></TD>
    <TD valign="top">
    Lakes plans to continue making advances on the remaining
    commitment to the Shingle Springs Tribe on a monthly basis until
    the casino opens. Lakes plans to make advances of
    $5.0&nbsp;million and $3.1&nbsp;million during 2005 and 2006,
    respectively, to fulfill its remaining commitment to the Shingle
    Springs Tribe. As of January&nbsp;2, 2005, $41.9&nbsp;million
    had been advanced related to the Shingle Springs Casino project.
    The Company, in April 2005, amended Shingle Springs project
    notes increasing the Company&#146;s total commitment to
    $50&nbsp;million. It is anticipated this increase will be
    adequate to cover pre-construction and land commitments over the
    next two years.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (c)</TD>
    <TD></TD>
    <TD valign="top">
    Lakes plans to continue making advances on the remaining
    commitment to the Pokagon Tribe on a monthly basis until the
    casino opens. Lakes plans to make advances of $2.7&nbsp;million,
    $15.0&nbsp;million and $10.8&nbsp;million during 2005, 2006 and
    2007, respectively, to fulfill its remaining commitment to the
    Pokagon Tribe.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top">
    (d)</TD>
    <TD></TD>
    <TD valign="top">
    Lakes entered into consulting agreements and management
    contracts with the Kickapoo Traditional Tribe of Texas (the
    &#147;Kickapoo Tribe&#148;) effective January 2005 to improve
    the performance of the gaming operations conducted at the
    Kickapoo Tribe&#146;s existing Lucky Eagle Casino in Eagle Pass,
    Texas, located approximately 140&nbsp;miles southwest of
    San&nbsp;Antonio. During the third quarter of fiscal 2005 the
    Company&#146;s relationship with the Kickapoo Tribe deteriorated
    and in November 2005, Lakes and the Kickapoo Tribe terminated
    their business relationship. As of November&nbsp;15, 2005, Lakes
    had advanced approximately $1.4&nbsp;million to the Kickapoo
    Tribe. Additionally, unpaid invoices related to the project
    total approximately $4&nbsp;million, some or all of which Lakes
    may be required to pay. As a result of the terminated business
    relationship with the Kickapoo Tribe, Lakes intends to negotiate
    with the Kickapoo Tribe to reach an agreement to resolve all of
    the financial terms of the contracts including repayment of the
    advances and payment of the unpaid invoices, and to formally
    terminate the gaming operations consulting agreement, management
    contract, and related ancillary agreements relating to the
    project.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">60

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 2005 Lakes corporate costs, excluding WPTE, which is not
expected to require additional capital from Lakes, will
approximate $12.5&nbsp;million. Development project-related
costs are expected to approximate $24.0&nbsp;million during
2005. Lakes&#146; unaudited cash balance, excluding WPTE cash
was approximately $7&nbsp;million as of November&nbsp;18, 2005.
Lakes&#146; on-going quarterly corporate costs are expected to
approximate $3.5&nbsp;million and on-going quarterly development
project-related costs are expected to approximate
$3.5&nbsp;million, however, a portion of these costs are
discretionary and could be deferred if necessary. Additionally,
the Company may be required to pay taxes, ranging from $0 to
approximately $12&nbsp;million plus interest and penalties, in
2006 related to two tax matters. It is anticipated that Lakes
will require additional capital through either public or private
financings to meet operating expenses and development
project-related costs during the remainder of 2005 and 2006 and
the Company is currently considering various financing
alternatives. The Company believes the assets of Lakes provide
sufficient collateral to obtain the necessary financing. The
assets of Lakes include common shares of WPTE that have an
estimated fair value of over $80&nbsp;million as of
November&nbsp;18, 2005. This estimated value is based on the
public trading price, which may not be indicative of what Lakes
could realize in a sale of its shares. The Company believes the
shares of WPTE could be the source or part of the collateral for
the additional financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our major use of cash over the past three years has been
pre-construction financing provided to our tribal partners.
Lakes also anticipates that it may incur additional
pre-construction costs which would require the Company to obtain
additional sources of financing. These development costs do not
include construction-related costs that would be incurred if any
of the projects were to begin construction during the next
twelve months. The Company anticipates that it will be necessary
to raise additional capital when any of the projects begin
construction and believes such financing will be available based
on preliminary discussions with prospective lenders. However,
such financings may not be available when needed on terms
acceptable to Lakes or at all. Moreover, any additional equity
financings may be dilutive to Lakes&#146; shareholders, and any
debt financing may involve additional restrictive covenants. An
inability to raise such funds when needed might require Lakes to
delay, scale back or eliminate some of its expansion and
development goals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the construction of the Company&#146;s Indian
casino projects may depend on the ability of the tribes to
obtain financing for the projects. If such financing cannot be
obtained on acceptable terms, it may not be possible to complete
these projects, which could have a material adverse effect on
Lakes&#146; results of operations and financial condition. In
order to assist the tribes, Lakes may be required to guarantee
the tribes&#146; debt financing or otherwise provide support for
the tribes&#146; obligations. Any guarantees by Lakes or similar
off-balance sheet liabilities, if any, will increase Lakes&#146;
potential exposure in the event of a default by any of these
tribes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the Pokagon Casino project, the Company has agreed to
finance all phases of the project entirely from its own funds if
financing at an interest rate of 13% or less is not available
from the capital markets. If this occurs and Lakes is required
to provide all financing, this would be an additional commitment
of up to approximately $54&nbsp;million. Currently, it appears
that third-party financing will be available for this project.
However, there can be no assurance third-party financing will be
available and that Lakes will not be required to provide this
additional financing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a part of the transaction establishing Lakes as a separate
public company on December&nbsp;31, 1998, the Company agreed to
indemnify Grand Casinos through December&nbsp;28, 2004 against
all costs, expenses and liabilities incurred in connection with
or arising out of certain pending and threatened claims and
legal proceedings against Grand Casinos and to pay all related
settlements and judgments. The indemnification period expired
December&nbsp;28, 2004 and Lakes does not have any further
obligations. Lakes incurred no costs related to this matter in
2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Seasonality</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company believes that the operations of all casinos to be
managed by the Company will be affected by seasonal factors,
including holidays, weather and travel conditions. WPTE&#146;s
license revenues are affected by the timetable for delivery of
episodes to TRV.
</DIV>

<P align="center" style="font-size: 10pt;">61

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Regulation and Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is subject to extensive regulation by state gaming
authorities. The Company will also be subject to regulation,
which may or may not be similar to current state regulations, by
the appropriate authorities in any jurisdiction where it may
conduct gaming activities in the future. Changes in applicable
laws or regulations could have an adverse effect on the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The gaming industry represents a significant source of tax
revenues. From time to time, various federal legislators and
officials have proposed changes in tax law, or in the
administration of such law, affecting the gaming industry. It is
not possible to determine the likelihood of possible changes in
tax law or in the administration of such law. Such changes, if
adopted, could have a material adverse effect on the
Company&#146;s results of operations and financial results.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Off-Balance Sheet Arrangements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has no off-balance sheet arrangements that have or
are reasonably likely to have a current or future effect on its
financial condition, changes in financial condition, revenues or
expenses, results of operations, liquidity, capital expenditures
or capital resources that is material to investors, except for
the financing commitments previously discussed.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;7A.</B></TD>
    <TD>
    <B><I>QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET
    RISK</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s financial instruments include cash and cash
equivalents and marketable securities. The Company&#146;s main
investment objectives are the preservation of investment capital
and the maximization of after-tax returns on its investment
portfolio. Consequently, the Company invests with only
high-credit-quality issuers and limits the amount of credit
exposure to any one issuer. The Company does not use derivative
instruments for speculative or investment purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s cash and cash equivalents are not subject to
significant interest rate risk due to the short maturities of
these instruments. As of January&nbsp;2, 2005, the carrying
value of the Company&#146;s cash and cash equivalents
approximates fair value. The Company also holds short-term
investments consisting of marketable debt securities
(principally consisting of commercial paper, corporate bonds,
and government securities) having a weighted average duration of
one year or less. Consequently, such securities are not subject
to significant interest rate risk.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s primary exposure to market risk associated
with changes in interest rates involves the Company&#146;s
long-term assets related to Indian casino projects in the form
of notes receivable due from its tribal partners for the
development and construction of Indian-owned casinos. The loans
earn interest based upon a defined reference rate. The floating
interest rate will generate more or less interest income if
interest rates rise or fall.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; notes receivable from Indian tribes related to
properties under development bear interest generally at prime
plus one percent or two percent, however, the interest is only
payable if the casino is successfully opened and distributable
profits are available from casino operations. Lakes records its
notes receivable at fair value and subsequent changes in fair
value are recorded as income or expense in the Company&#146;s
consolidated statement of operations. As of January&nbsp;2,
2005, Lakes had $67.2&nbsp;million of notes receivable, at fair
value with a floating interest rate. Based on the applicable
current reference rates and assuming all other factors remain
constant, interest income for a twelve month period would be
approximately $5.7&nbsp;million. A reference rate increase of
100&nbsp;basis points would result in an increase in interest
income of $0.9&nbsp;million. A 100&nbsp;basis point decrease in
the reference rate would result in a decrease of
$0.9&nbsp;million in interest income over the same twelve-month
period.
</DIV>

<P align="center" style="font-size: 10pt;">62

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<DIV align="left" style="font-size: 10pt;">

</DIV>

<DIV align="left" style="font-size: 10pt;">
<!-- TOC -->
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;8.</B></TD>
    <TD>
    <B><I>FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA</I></B></TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#300'>Report of Independent Registered Public
    Accounting Firm</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#301'>Consolidated Balance Sheets as of
    January&nbsp;2, 2005 and December&nbsp;28, 2003 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#302'>Consolidated Statements of Loss for the
    fiscal years ended January&nbsp;2, 2005, December&nbsp;28, 2003
    (restated)&nbsp;and December&nbsp;29, 2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#303'>Consolidated Statements of Comprehensive
    Loss for the fiscal years ended January&nbsp;2, 2005,
    December&nbsp;28, 2003 (restated)&nbsp;and December&nbsp;29,
    2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#304'>Consolidated Statements of
    Shareholders&#146; Equity for the fiscal years ended
    January&nbsp;2, 2005, December&nbsp;28, 2003 (restated)&nbsp;and
    December&nbsp;29, 2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#305'>Consolidated Statements of Cash Flows for
    the fiscal years ended January&nbsp;2, 2005, December&nbsp;28,
    2003 (restated)&nbsp;and December&nbsp;29, 2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#306'>Notes to Consolidated Financial
    Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w67.htm">Settlement Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w68.htm">Letter Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w69.txt">Second Amended/Restated Management Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w70.txt">Second Amended/Restated Development Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w71.txt">Second Amended/Restated Lakes Development Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w72.txt">Second Amended/Restated Transition Loan Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w73.txt">Lakes Facility Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w74.txt">Lakes Working Capital Advance Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w75.txt">Lakes Minimum Payments Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w76.txt">Second Amended/Restated Non-Gaming Land Acquitition Line of Credit</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w77.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w78.txt">Second Amendment to Account Control Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w79.txt">First Amendment to Assignment and Assumption Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w80.txt">Reaffirmation of Guaranties and Mortgages</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w81.txt">Second Amendment to Pledge and Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w82.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w83.txt">First Amendment to Unlimited Guaranty</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w84.txt">Second Amended/Restated Indemnity Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w85.txt">Tribal Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w86.txt">Tribal Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w87.txt">Gaming Development Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w88.txt">Pawnee Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w89.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w90.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w91.txt">Management Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w92.txt">Operating Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w93.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w94.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w95.txt">Indemnity Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w96.txt">Gaming Development Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w97.txt">Pawnee Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w98.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w99.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w100.txt">Management Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w101.txt">Operating Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w102.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w103.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w104.txt">Indemnity Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w105.txt">Gaming Development Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w106.txt">Pawnee Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w107.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w108.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w109.txt">Management Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w110.txt">Operating Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w111.txt">Dominion Account Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w112.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w113.txt">Indemnity Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w114.txt">Gaming Operatings Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w115.txt">Tribal Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w116.txt">KTTT Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w117.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w118.txt">Tribal Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w119.txt">Management Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w120.txt">Operating Note</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w121.txt">Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w122.txt">Gaming Development Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w123.txt">Iowa Corp Note (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w124.txt">Dominion Account Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w125.txt">Security Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w126.txt">Tribal Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w127.txt">Management Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w128.txt">Operating Note (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w129.txt">Dominion Account Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w130.txt">Security Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w131.txt">Indemnity Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w132.txt">Tribal Agreement (Cimarron Casino)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w133.txt">Gaming Development Consulting Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w134.txt">Iowa Corp Note (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w135.txt">Dominion Account Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w136.txt">Security Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w137.txt">Tribal Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w138.txt">Management Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w139.txt">Operating Note (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w140.txt">Dominion Account Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w141.txt">Security Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w142.txt">Indemnity Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w143.txt">Tribal Agreement (New Project)</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w144.htm">Letter Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w145.txt">First Amendment to Loan and Security Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w146.txt">Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w147.txt">Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv10w148.txt">Consulting Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv21.txt">Subsidiaries of the Company</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv23.txt">Consent of Independent Registered Public Accounting Firm</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv31w1.htm">Certification of CEO Under Section 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv31w2.htm">Certification of CFO Under Section 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="c92713exv32w1.htm">Certification of CEO and CFO Under Section 906</A></FONT></TD></TR>
</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt;">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt;">63

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='300'></A>
</DIV>

<!-- link1 "Report of Independent Registered Public Accounting Firm" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Report of Independent Registered Public Accounting Firm</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
To the Board of Directors and Shareholders of Lakes
Entertainment, Inc.:
</DIV>

<DIV align="left" style="font-size: 10pt;">
Minnetonka, Minnesota
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited the accompanying consolidated balance sheets of
Lakes Entertainment, Inc. and subsidiaries (the
&#147;Company&#148;) as of January&nbsp;2, 2005 and
December&nbsp;28, 2003, and the related consolidated statements
of loss, comprehensive loss, shareholders&#146; equity, and cash
flows for each of the three years in the period ended
January&nbsp;2, 2005. These financial statements are the
responsibility of the Company&#146;s management. Our
responsibility is to express an opinion on these financial
statements based on our audits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of
Lakes Entertainment Inc. and subsidiaries as of January&nbsp;2,
2005 and December&nbsp;28, 2003, and the results of their
operations and their cash flows for each of the three years in
the period ended January&nbsp;2, 2005 in conformity with
accounting principles generally accepted in the United States of
America.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
effectiveness of the Company&#146;s internal control over
financial reporting as of January&nbsp;2, 2005, based on the
criteria established in Internal Control&nbsp;&#151; Integrated
Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission and our report dated November&nbsp;30,
2005 expressed an adverse opinion on management&#146;s
assessment of the effectiveness of the Company&#146;s internal
control over financial reporting and an adverse opinion on the
effectiveness of the Company&#146;s internal control over
financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As discussed in Note&nbsp;2, the accompanying 2003 and 2002
consolidated financial statements have been restated.
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    DELOITTE&nbsp;&#38; TOUCHE LLP</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Minneapolis, Minnesota
</DIV>

<DIV align="left" style="font-size: 10pt;">
November&nbsp;30, 2005
</DIV>

<P align="center" style="font-size: 10pt;">64

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='301'></A>
</DIV>

<!-- link1 "Consolidated Balance Sheets" -->

<DIV align="center" style="font-size: 10pt;">
<B>Consolidated Balance Sheets</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>January&nbsp;2, 2005 and December&nbsp;28, 2003</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="62%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>January&nbsp;2,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>December&nbsp;28,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="10" align="center" valign="top">
    <B>ASSETS</B></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Assets:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,340</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (balance includes $4.5&nbsp;million and $0 of WPT Enterprises,
    Inc. cash)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,930</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (balance includes $27.8&nbsp;million and $0 of WPT Enterprises,
    Inc. short-term investments)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts receivable, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,038</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,038</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax asset</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,385</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaid expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,233</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>408</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,159</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,645</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>62,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,816</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and Equipment-Net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,492</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term assets related to Indian casino projects:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes receivable from Indian tribes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67,066</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,800</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land held for development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,433</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,455</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets related to acquisition of management
    contracts, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41,096</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,024</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,057</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total long-term assets related to Indian casino projects</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>125,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113,058</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land held under contract for sale</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,612</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,818</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,717</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax asset</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,365</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,838</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total Assets</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>209,089</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>174,463</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="10">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="10" align="center" valign="top">
    <B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current Liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,906</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,215</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accrued payroll and related costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>497</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>505</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other accrued expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,513</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total current liabilities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,636</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total Liabilities</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,636</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Commitments and Contingencies</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Common shares issued by subsidiary subject to repurchase</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority Interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shareholders&#146; Equity:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capital stock, $.01&nbsp;par value; authorized
    200,000&nbsp;shares; 22,253 and 21,474 common shares issued and
    outstanding at January&nbsp;2, 2005, and December&nbsp;28, 2003,
    respectively</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional paid-in-capital</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>157,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,291</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Retained earnings</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,321</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accumulated other comprehensive loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Shareholders&#146; Equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>183,392</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,827</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Total Liabilities and Shareholders&#146; Equity</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>209,089</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>174,463</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these
consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">65

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='302'></A>
</DIV>

<!-- link1 "Consolidated Statements of Loss" -->

<DIV align="center" style="font-size: 10pt;">
<B>Consolidated Statements of Loss</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years ended January&nbsp;2, 2005, December&nbsp;28, 2003 and
December&nbsp;29, 2002</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(In thousands, except per share data)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Revenues:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    License fee income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Host fees, sponsorship and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>384</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Management fee income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,502</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,557</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,502</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Costs and Expenses:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Selling, general and administrative</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,447</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,918</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,985</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Production costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,004</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Costs and Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,582</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net unrealized gain on notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Loss From Operations</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12,922</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,432</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,368</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other Income (Expense):</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>632</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,424</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(90</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal settlement received</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total other income, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>790</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,334</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss before income taxes, equity in earnings (loss) of
    investments and minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(857</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,642</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,034</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision (benefit) for income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,017</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,379</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss before equity in earnings (loss) of investments and
    minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,899</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,625</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,655</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in earnings (loss) of investments, net of tax</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(144</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(271</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss before minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,151</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>110</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Net Loss</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,041</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Basic Loss per Share</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.18</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Diluted Loss per Share</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.18</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Weighted Average Common Shares Outstanding&nbsp;&#151; Basic
    and Diluted</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,109</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,314</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,276</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these
consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">66

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='303'></A>
</DIV>

<!-- link1 "Consolidated Statements of Comprehensive Loss" -->

<DIV align="center" style="font-size: 10pt;">
<B>Consolidated Statements of Comprehensive Loss</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years ended January&nbsp;2, 2005, December&nbsp;28, 2003 and
December&nbsp;29, 2002</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="53%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Net Loss</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,041</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Other comprehensive earnings (loss), net of tax:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized gains (losses) on securities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized holding gains (losses) during the period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Reclassification adjustment for losses included in net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Comprehensive Loss</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,047</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(10,866</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these
consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">67

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='304'></A>
</DIV>

<!-- link1 "Consolidated Statements of Shareholders&#146; Equity" -->

<DIV align="center" style="font-size: 10pt;">
<B>Consolidated Statements of Shareholders&#146; Equity</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years ended January&nbsp;2, 2005, December&nbsp;28, 2003 and
December&nbsp;29, 2002</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Accumulated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Common Stock</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Additional</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Retained</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Comprehensive</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shareholders&#146;</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amount</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Paid-in-Capital</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Earnings</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Earnings(Loss)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Equity</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance, December&nbsp;30, 2001&nbsp;&#151; (as previously
    reported)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>131,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>40,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>171,991</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prior period adjustment&nbsp;&#151; (see Note&nbsp;2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,596</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance, December&nbsp;30, 2001&nbsp;&#151; (as restated, see
    Note&nbsp;2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(60</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173,587</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive earnings, net of tax</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss&nbsp;&#151; (as restated, see Note&nbsp;2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance, December&nbsp;29, 2002&nbsp;&#151; (as restated, see
    Note&nbsp;2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>131,418</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>31,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>162,721</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issuance of stock on options exercised&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>567</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>569</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax benefits from exercise of common stock options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>306</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss&nbsp;&#151; (as restated, see Note&nbsp;2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance, December&nbsp;28, 2003&nbsp;&#151; (as restated, see
    Note&nbsp;2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21,474</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>215</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>132,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>161,827</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other comprehensive loss, net of tax</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Issuance of stock on options exercised&nbsp;&#151; net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>779</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,576</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,584</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subsidiary stock options issued to consultants and employees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,574</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net proceeds from issuance of common stock by subsidiary</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,454</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,454</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,041</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,041</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance, January&nbsp;2, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>22,253</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>223</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>157,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,280</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>183,392</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these
consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">68

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>LAKES ENTERTAINMENT, INC. AND SUBSIDIARIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<A name='305'></A>
</DIV>

<!-- link1 "Consolidated Statements of Cash Flows" -->

<DIV align="center" style="font-size: 10pt;">
<B>Consolidated Statements of Cash Flows</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Years ended January&nbsp;2, 2005, December&nbsp;28, 2003 and
December&nbsp;29, 2002</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 9pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(As restated,</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>see Note&nbsp;2)</B></TD><TD></TD>
</TR>


<TR style="font-size: 7pt;">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(In thousands)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>OPERATING ACTIVITIES:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,041</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Adjustments to reconcile net loss to net cash provided by (used
    in) operating activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>547</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>481</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stock-based compensation expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,366</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net impairments losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net unrealized gains on notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,054</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,452</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(712</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(110</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity in (earnings)&nbsp;loss of investments</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,207</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>459</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(555</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,492</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in valuation allowance related to deferred income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,455</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,374</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in operating assets and liabilities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,025</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(922</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,485</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaid expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(825</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,584</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>657</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other current assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,633</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,758</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>970</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,658</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accounts payable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(80</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>193</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>88</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other accrued expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,294</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(62</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Cash Provided by (Used in) Operating Activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,775</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,122</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>INVESTING ACTIVITIES:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term investments, purchases</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29,936</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term investments, sales/maturities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,130</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments received for land held under contract for sale</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments made for land held under contract for sale</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,273</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,006</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments received for land held for development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances on long-term assets related to Indian casino projects,
    net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,386</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(18,446</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(23,578</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from repayment of notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Investments in unconsolidated affiliates</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(577</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(859</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(345</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from unconsolidated affiliates</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,683</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    (Payments) proceeds from restricted cash, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(244</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,906</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>875</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Advances for other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(283</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(363</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(615</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments for property and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(886</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(77</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,143</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Cash Provided by (Used in) Investing Activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(40,017</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>19,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(23,615</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>FINANCING ACTIVITIES:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds from issuance of common stock</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net proceeds from issuance of common stock by subsidiary</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments on long-term debt and capital lease obligations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,039</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Cash Provided by (Used in) Financing Activities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>874</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,039</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net increase (decrease) in cash and cash equivalents</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(28,532</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash and cash equivalents&nbsp;&#151; beginning of period</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>25,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42,638</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>Cash and cash equivalents&nbsp;&#151; end of period</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,717</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>25,340</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14,106</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="4">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    <B>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</B></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Cash paid during the period for:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>256</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Noncash investing and financing activities:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Capitalized television costs related to subsidiary stock options
    issued to consultants</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>208</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Amounts within accounts payable and advances on long-term assets
    related to Indian casino projects until paid</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,047</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,487</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="center" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The accompanying notes are an integral part of these
consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">69

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt;">
<A name='306'></A>
</DIV>

<!-- link1 "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>January&nbsp;2, 2005, December&nbsp;28, 2003 and
December&nbsp;29, 2002</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>1.</B></TD>
    <TD>
    <B>Nature of Business and Summary of Significant Accounting
    Policies:</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes Entertainment, Inc., a Minnesota corporation
(&#147;Lakes&#148; or the &#147;Company&#148;), was established
as a public corporation on December&nbsp;31, 1998, via a
distribution (the &#147;Distribution&#148;) of its common stock,
par value $.01&nbsp;per share (the &#147;Common Stock&#148;) to
the shareholders of Grand Casinos, Inc. (&#147;Grand
Casinos&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; primary business is to develop and manage Indian and
Company-owned casino properties that offer the opportunity for
long-term development of related entertainment facilities,
including hotels, theaters, recreational vehicle parks and other
complementary amenities designed to enhance the customers&#146;
total entertainment experience and to differentiate facilities
managed by Lakes from its competitors. Lakes provides corporate
and casino management and develops and implements a wide scale
of marketing programs. In conjunction with this part of
Lakes&#146; business strategy, Lakes has entered into
development and management agreements relating to one casino
project in Michigan with the Pokagon Band of Potawatomi Indians
(&#147;Pokagon Band&#148;) and two casino projects in
California, one with the Shingle Springs Band of Miwok Indians
(&#147;Shingle Springs Tribe&#148;) and the other with the Jamul
Indian Village (&#147;Jamul Tribe&#148;) with development of
each subject to regulatory approvals. Additionally, Lakes
entered into a consulting and development agreement and a
management contract with the Kickapoo Traditional Tribe of Texas
(&#147;Kickapoo Tribe&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has also explored, and intends to continue to explore
other possible casino development projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2002, World Poker Tour, LLC, a majority-owned
subsidiary of Lakes, created a circuit of previously established
poker tournaments affiliated under the &#147;World Poker
Tour&#148; name, and produced the World Poker Tour television
series. During August 2004, WPT Enterprises, Inc.
(WPTE)&nbsp;became a separate public company as a result of the
completion of an initial public offering. Lakes remains a
majority shareholder of WPTE, owning approximately 64% of the
outstanding common stock as of January&nbsp;2, 2005. As a
result, Lakes&#146; consolidated results continue to include
WPTE operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has created a new division to buy, patent and license
rights for new table game concepts to market and distribute to
casinos. The Company is currently testing and marketing a number
of new games, including World Poker Tour All In Hold&#147;Em,
Rainbow Poker, Pyramid Poker and Bonus Craps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Use of Estimates</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. During the reporting
period, the most significant estimates relate to revenue
recognition, realizability of long-term assets related to Indian
casino projects, income taxes and realization of other long-term
assets. Actual results could differ from those estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Year End</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has a 52- or 53-week accounting period ending on the
Sunday closest to December&nbsp;31 of each year. The
Company&#146;s fiscal years for the periods shown on the
accompanying consolidated statements of earnings ended on
January&nbsp;2, 2005 (2004), December&nbsp;28, 2003
(2003)&nbsp;and December&nbsp;29, 2002 (2002).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Basis of Presentation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accompanying consolidated financial statements include the
accounts of Lakes and its wholly owned and majority-owned
subsidiaries. Investments representing 50% or less of voting
interests are accounted for on the equity method. All
significant intercompany balances and transactions have been
eliminated in consolidation.
</DIV>

<P align="center" style="font-size: 10pt;">70

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Revenue Recognition</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><U>License fee income</U> </I></B>includes the following
sources of WPTE revenue:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Domestic Television:</I> Revenue from the distribution of the
World Poker Tour domestic television series is recognized as
earned under the following criteria established by the American
Institute of Certified Public Accountants Statement of Position
(&#147;SOP&#148;) No.&nbsp;00-2, <I>Accounting by Producers or
Distributors of Films:</I>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Persuasive evidence of an arrangement exists</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The show/episode is complete and, in accordance with the terms
    of the arrangement, has been delivered or is available for
    immediate and unconditional delivery</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The license period has begun and the customer can begin its
    exploitation, exhibition or sale</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    The seller&#146;s price to the buyer is fixed and determinable</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    Collectibility is reasonably assured.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Revenue is recognized upon receipt and acceptance of completed
episodes in accordance with the terms of the contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>International Television:</I> Revenue for international
distribution of the television series is recognized as earned
under the criteria of SOP 00-2, which is noted above.
International license fee revenues are presented net of the
distributor&#146;s fees, as the distributor is the primary
obligor in the transaction with the ultimate customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Product Licensing:</I> Product licensing revenues are
recognized when the underlying royalties from the sales of the
related products are earned. WPTE recognizes minimum revenue
guarantees ratably over the term of the license or as earned
royalties based on actual sales of the related products, if
greater.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Host Fees and Sponsorship Revenue:</U></I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Host Fees:</I> Host fee revenues paid by host casinos are
recognized as episodes are aired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Sponsorship:</I> Sponsorship revenues are recognized as
episodes are aired.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Management Fee Income</U>:</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Revenue from the management of Indian-owned casino gaming
facilities is recognized when earned according to the terms of
the management contracts or the consulting agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Deferred Revenue</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Licensing advances and guaranteed payments collected, but not
yet earned by WPTE, as well as host fee and sponsorship
receipts, collected prior to the airing of episodes, are
classified as deferred revenue in the accompanying balance
sheets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Minority Interest</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005, the $11.2&nbsp;million minority
interest balance on the accompanying balance sheet represents a
36% outside ownership interest in WPTE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Common Shares Subject to Repurchase</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE violated certain securities laws in connection with its
initial public offering by sending out written email
communications to individuals that did not contain all of the
information required to be in a prospectus and were not preceded
or accompanied by a prospectus meeting the requirements for a
prospectus. These violations could require WPTE to repurchase
shares sold in the offering to direct recipients of the email
</DIV>

<P align="center" style="font-size: 10pt;">71

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
communications for a period of up to one year at the offering
price plus interest. WPTE sold 75,200&nbsp;shares in the
offering that are subject to such repurchase rights, and these
shares are classified as common shares issued by subsidiary
subject to repurchase. As of August&nbsp;9, 2005, the one-year
anniversary of WPTE&#146;s initial public offering, WPTE&#146;s
repurchase obligation with respect to such shares expired, and
these shares have been reclassified as equity in the third
quarter of 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Cash and Cash Equivalents</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash and cash equivalents consist of cash on hand and in banks,
interest-bearing deposits, money market funds and other
instruments with original maturities of three months or less.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Short-Term Investments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company follows the provisions of Statement of Financial
Accounting Standards (SFAS)&nbsp;No.&nbsp;115, <I>Accounting for
Certain Investments in Debt and Equity Securities </I>and has
classified all of its short-term investments as available for
sale, whereby investments are reported at fair value with
unrealized gains and losses reported as accumulated other
comprehensive earnings (loss), net of income taxes, in the
accompanying consolidated statements of shareholders&#146;
equity. Market value is determined by the most recently traded
price of the security at the balance sheet date. Net realized
gains or losses are determined on the specific identification
cost method. Short-term investments all have original maturities
beyond three months and less than one year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Disclosures About Fair Values of Financial Instruments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Statement of Financial Accounting Standards No.&nbsp;107,
<I>Disclosures About Fair Value of Financial Instruments
(&#147;SFAS&nbsp;107&#148;)</I>, requires disclosure of fair
value information about financial instruments, whether or not
recognized on the face of the balance sheet, for which it is
practical to estimate that value. SFAS&nbsp;107 defines fair
value as the quoted market prices for those instruments that are
actively traded in financial markets. In cases where quoted
market prices are not available, fair values are estimated using
present value or other valuation techniques. The fair value
estimates are made at a specific point in time, based on
available market information and judgments about the financial
instrument, such as estimates of timing and amount of espected
future cash flows. Such estimates do not reflect any premium or
discount that could result from offering for sale at one time
the Company&#146;s entire holdings of a particual financial
instrument, nor do they consider the tax impact of the
realization of unrealized gains or losses. In many cases, the
fair value estimates cannot be substantiated by comparison to
independent markets, nor can the disclosed value be realized in
immediate settlement of the instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The carrying amounts for cash and cash equivalents approximate
fair value because of the short maturity, generally less than
three months, of these instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair values of investment securities have been determined
using values supplied by independent pricing services and are
disclosed together with carrying amounts in Note&nbsp;4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See accounting policy following under the heading
&#147;Long-Term Assets Related to Indian Casino Projects&#148;
for a description of determination of fair value of notes
receivable from Indian tribes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Deferred Television Costs</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deferred television costs include capitalizable direct costs,
production overhead and development costs and are stated at the
lower of cost or net realizable value based on anticipated
revenue to be generated by the episode once it has been
delivered and accepted. Production overhead costs include costs
that are directly related to production and are incremental
costs. These costs primarily include office facilities,
depreciation, consultant stock option expense and insurance
related to production. Production overhead office facilities and
insurance costs are determined based on percentage of headcount
and are allocated to deferred television costs
</DIV>

<P align="center" style="font-size: 10pt;">72

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
based on number of episodes. The Company has not currently
anticipated any revenues in excess of those subject to existing
contractual relationships. Capitalized television production
costs for each episode are expensed as revenues are recognized
upon delivery and acceptance of the completed episode.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Property and Equipment</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Property and equipment are stated at cost less accumulated
depreciation. Expenditures for additions, renewals, and
improvements are capitalized. Costs of repairs and maintenance
are expensed when incurred. Depreciation and amortization of
property and equipment is computed using the straight-line
method over the following estimated useful lives:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="80%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Building</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>40&nbsp;years</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Furniture and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2-10&nbsp;years</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company periodically evaluates whether events and
circumstances have occurred that may affect the recoverability
of the net book value of its long-lived assets. If such events
or circumstances indicate that the carrying amount of an asset
may not be recoverable, the Company estimates the future cash
flows expected to result from the use of the asset. If the sum
of the expected future undiscounted cash flows does not exceed
the carrying value of the asset, the Company will recognize an
impairment loss and write the asset down to its fair value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Long-Term Assets Related to Indian Casino Projects</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Notes&nbsp;Receivable:</U></I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes is involved as the exclusive developer and manager of
Indian-owned casino projects, all of which are in the
development phase as of January&nbsp;2, 2005. The Company has
formal procedures governing its evaluation of opportunities for
potential development projects that it follows before entering
into agreements to provide financial support for the development
of these properties. Lakes determines that there is probable
future economic benefit prior to recording any asset related to
the Indian casino project. No asset related to an Indian casino
project is recognized unless it is considered probable that the
project will be built and result in an economic benefit to Lakes
sufficient to recover the asset. Lakes initially evaluates the
following six factors involving critical milestones that affect
the probability of developing and operating a casino:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the U.S.&nbsp;Government&#146;s Bureau of Indian Affairs
    federally recognized the tribe as a tribe?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Does the tribe hold or have the right to acquire land to be
    used for the casino site?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the Department of the Interior put the land into trust
    for purposes of being used as a casino site?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the tribe entered into a gaming agreement with the state
    in which the land is located, if required by the state?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Has the tribe obtained approval by the National Indian Gaming
    Commission of the management agreement?</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>Do other legal and political obstacles exist that could block
    development of the project, and if so, what is the likelihood of
    the tribe successfully prevailing?</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the above factors, Lakes also considers economic
and qualitative factors affecting Lakes&#146; future economic
benefits from the project, including the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;&nbsp;</TD>
    <TD align="left">
    <I>An evaluation by Company management of the financial
    projections of the project given the project&#146;s geographic
    location and the feasibility of the project&#146;s success given
    such location;</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>The structure and stability of the tribal government;</I></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">73

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>The scope of the proposed project, including the physical
    scope of the contemplated facility and the expected financial
    scope of the related development;</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>An evaluation of the proposed project&#146;s ability to be
    built as contemplated and the likelihood that financing will be
    available; and</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><I>&#149;&nbsp;</I></TD>
    <TD align="left">
    <I>The nature of the business opportunity to Lakes, including
    whether the project would be a financing, development and/or
    management opportunity.</I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The development phase of each relationship commences with the
signing of the respective contracts and continues until the
casinos open for business; thereafter, the management phase of
the relationship, governed by the management contract, continues
for a period up to seven years. Lakes, as developer and manager,
has the exclusive right and obligation to develop, manage,
operate and maintain the casino and to train tribal members and
others in the operation and maintenance of the casino during the
term of the contract. The Company also makes advances to the
tribes to fund certain portions of the projects, which bear
interest generally at prime plus 1% or 2%. Repayment of the
advances and accrued interest is only required if the casino is
successfully opened and distributable profits are available from
the casino operations. Under the management contract Lakes
typically earns a management fee calculated as a percentage of
the net income of the operations. In addition, repayment of the
loans and the manager&#146;s fees under the management contracts
are subordinated to certain other financial obligations of the
respective operations. Generally, the order of priority of
payments from the casinos&#146; cash flows is as follows: a
certain minimum monthly priority payment to the tribe, repayment
of various senior debt associated with construction and
equipping of the casino with interest accrued thereon, repayment
of various debt with interest accrued thereon due to Lakes,
management fee to Lakes, and other obligations, with the
remaining funds distributed to the tribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for its advances to the tribes and its
management contracts as separate elements. The advances made to
the tribes are accounted for as structured notes in accordance
with the guidance contained in Emerging Issues Task Force
Consensus No.&nbsp;96-12 <I>Recognition of Interest Income and
Balance Sheet Classification of Structured Notes </I>(EITF
No.&nbsp;96-12). Because repayment of the notes is required only
if a casino is successfully opened, Lakes&#146; advances may be
at risk to not be repaid for reasons other than failure of the
borrower to pay the contractual amounts due because if the
casinos are not built the notes will not become contractually
due. Accordingly, pursuant to the guidance in EITF
No.&nbsp;96-12, Lakes records its advances to tribes at fair
value. Because the stated rate of the notes receivable alone is
not commensurate with the risk inherent in these projects, the
fair value of the notes receivable is generally less than the
amount advanced. At the date of each advance, the difference
between the fair value of the note receivable and the actual
amount advanced is recorded as an intangible asset related to
the acquisition of the management contract. Subsequent to the
initial recording, the two assets are accounted for separately.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsequent to its initial recording at fair value, the note
receivable portion of the advance is adjusted to its current
fair value at each balance sheet date based on current
assumptions related to the projects. The notes receivable are
not adjusted to an amount in excess of the face value of the
note plus accrued interest. Changes in fair value are recorded
as unrealized gains or losses on notes receivable in the
Company&#146;s statement of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The determination of fair value requires that assumptions be
made and judgments be applied regarding casino opening dates,
interest rates, discount rates and probabilities of the projects
opening based on a review of critical milestones. If casino
opening dates, interest rates, discount rates or the
probabilities of the projects opening change significantly the
Company could experience unrealized gains or losses that could
be material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon opening of the casino Lakes may conclude that it is no
longer reasonably possible that the advances to Indian tribes
would be at risk to not be repaid for reasons other than failure
of the borrower to pay the contractual amounts due. In such
situations, the notes receivable will be accounted for under the
effective interest method upon opening of the casino and will no
longer be adjusted to fair value at each balance sheet date. Any
difference between the then fair value of the advances and the
amount contractually due under the
</DIV>

<P align="center" style="font-size: 10pt;">74

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
notes will be amortized into income using the effective interest
method over the remaining term of the note. Such notes would
then be evaluated for impairment pursuant to Statement of
Financial Accounting Standards No.&nbsp;114 <I>Accounting by
Creditors for Impairment of a Loan.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Intangible Assets related
to Acquisition of Management Contracts:</U></I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Intangible assets related to the acquisition of the management
contracts are accounted for using the guidance in Statement of
Financial Accounting Standards No.&nbsp;142 <I>Goodwill and
Other Intangible Assets </I>(FASB No.&nbsp;142). Pursuant to
that guidance, the assets are periodically evaluated for
impairment based on the estimated cash flows from the management
contract on an undiscounted basis. In the event the carrying
value of the intangible assets, in combination with the carrying
value of land held for development and other assets associated
with the Indian casino projects described below, were to exceed
the undiscounted cash flow, an impairment would be recorded.
Such an impairment would be measured based on the difference
between the fair value and carrying value of the assets. Lakes,
in accordance with FASB No.&nbsp;142, will amortize the
intangible assets related to the acquisition of the management
contracts under the straight-line method over the lives of the
contracts which will commence when the related casinos open.
Intangible assets related to the acquisition of management
contracts totaled $41.1&nbsp;million and $38.7&nbsp;million as
of January&nbsp;2, 2005 and December&nbsp;28, 2003,
respectively. In addition to the intangible asset associated
with the cash advances to tribes described above, these assets
include actual costs incurred to acquire Lakes&#146; interest in
the projects from third-parties of approximately
$5.4&nbsp;million as of January&nbsp;2, 2005 and
December&nbsp;28, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Land Held for
Development</U></I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in land held for development is land held for possible
transfer to Indian tribes for use in certain of the future
casino resort projects in the amount of $15.4&nbsp;million and
$14.5&nbsp;million as of January&nbsp;2, 2005 and
December&nbsp;28, 2003, respectively. In the event that this
land is not transferred to the tribes, the Company can sell it.
Lakes evaluates these assets for impairment in combination with
intangible assets related to acquisition of management contracts
and other assets related to the Indian casino projects as
discussed above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><U>Other</U></I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in this category are costs incurred related to the
Indian casino projects, which have not yet been included as part
of the notes receivable because of timing of the payment of
these costs. These amounts will ultimately be allocated between
notes receivable and intangible assets related to the
acquisition of management contracts and will be evaluated for
changes in fair value or impairment, respectively, as described
above. These amounts vary from period to period due to timing of
payment of these costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, Lakes incurs certain costs related to the projects
that are not included in notes receivable or other assets, which
are expensed as incurred. These costs include salaries, travel
and certain legal costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stock Based Compensation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At January&nbsp;2, 2005, Lakes has two stock-based employee
compensation plans and WPTE has one stock-based employee
compensation plan, which are described in Note&nbsp;12. The
Company accounts for those plans under the recognition and
measurement principles of APB Opinion No.&nbsp;25, <I>Accounting
for Stock Issued to Employees</I>, and related Interpretations.
Compensation expense for stock option grants issued to employees
is recorded to the extent the fair market value of the stock on
the date of grant exceeds the option price. Compensation expense
for restricted stock grants is measured based on the fair market
value of the stock on the date of grant. The compensation
expense is amortized ratably over the vesting period of the
awards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for equity-based consultant compensation
according to the recognition and measurement principles of
EITF&nbsp;96-18, <I>Accounting for Equity Instruments that are
Issued to Other Than Employees for Acquiring, or in Conjunction
with Selling, Goods or Service (EITF&nbsp;96-18).</I>
Compensation
</DIV>

<P align="center" style="font-size: 10pt;">75

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
expense for stock option grants issued to consultants is
recorded at the fair market value of the options at the
measurement date, defined as the date the options vest and
services have been provided.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All stock-based consultant compensation expenses are capitalized
television costs of WPTE and are included as costs of revenue
upon delivery and acceptance of completed episodes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table illustrates the effect on net income and
earnings per share if the Company had applied the fair value
recognition provisions of Statement of Financial Accounting
Standards No.&nbsp;123, <I>Accounting for Stock-Based
Compensation (SFAS&nbsp;No.&nbsp;123)</I>, to stock-based
employee compensation (in thousands, except per share data).
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    As reported</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,041</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Add: Employee stock-based compensation expense included in
    reported net loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: Total stock-based compensation expense determined under
    the fair value method, net of related tax effects</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,361</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,652</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,702</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(6,387</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(3,421</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(12,628</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net loss:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    As reported&nbsp;&#151; Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.18</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma&nbsp;&#151; Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.29</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.59</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    As reported&nbsp;&#151; Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.18</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pro forma&nbsp;&#151; Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.29</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.16</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.59</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average fair value of Lakes&#146; options granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.06</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Weighted average fair value of WPTE options granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.63</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compensation expense of $1.4&nbsp;million related to stock
options issued to consultants has not been included in the
tables above as these options are already recorded at fair
market value under the provisions of EITF&nbsp;96-18.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Income Taxes</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company accounts for income taxes under the provisions of
Statement of Financial Accounting Standards No.&nbsp;109,
<I>Accounting for Income Taxes (SFAS&nbsp;No.&nbsp;109).</I>
Under this method, the Company determines deferred tax assets
and liabilities based upon the difference between the financial
statement and tax bases of assets and liabilities using enacted
tax rates in effect for the year in which the differences are
expected to affect taxable income. The tax consequences of
events recognized in the current year&#146;s consolidated
financial statements are included in determining income taxes
currently payable. However, because tax laws and financial
accounting standards differ in their recognition and measurement
of assets, liabilities, equity, revenue, expenses, gains and
losses, differences arise between the amount of taxable income
and pretax financial income for a year and between the tax bases
of assets or liabilities and their reported amounts in the
consolidated financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because it is assumed that the reported amounts of assets and
liabilities will be recovered and settled, respectively, a
difference between the tax basis of an asset or a liability and
its reported amount in the balance sheet will result in a
taxable or a deductible amount in some future years when the
related liabilities are settled or the reported amounts of the
assets are recovered, hence giving rise to deferred tax assets
and liabilities. The Company must then assess the likelihood
that deferred tax assets will be recovered from future taxable
income and, to the extent management believes that recovery is
not likely, they must establish a valuation allowance.
</DIV>

<P align="center" style="font-size: 10pt;">76

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The Company recorded a 100&nbsp;percent valuation allowance
against all deferred income tax assets as of January&nbsp;2,
2005 except for deferred tax assets related to unrealized
investment losses and carryovers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Interest Income</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on cash, cash equivalents and short-term investments
reflects interest income realized from investments in savings
and money market accounts and other short-term liquid
investments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During April of 2004, the Company&#146;s Board of Directors
declared a two-for-one stock split, payable in the form of a
100% stock dividend on outstanding common stock. The stock
dividend was paid on May&nbsp;3, 2004 to shareholders of record
as of April&nbsp;26, 2004. All share and per share data
reflected in the accompanying consolidated financial statements
has been retroactively restated to give effect to the stock
split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Comprehensive Loss</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the fiscal years ended January&nbsp;2, 2005 and
December&nbsp;29, 2002, comprehensive income consisted of net
income and other comprehensive income (loss) related to
unrealized gains (losses) in securities. Other comprehensive
income (loss) refers to revenues, expenses, gains and losses
that are not included in net income, but rather are recorded
directly in stockholders&#146; equity. For the year ended
December&nbsp;28, 2003 the Company had no items of other
comprehensive income (loss), and, accordingly, comprehensive
income is the same as net loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Earnings Per Share</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For all periods, basic earnings per share (EPS)&nbsp;is
calculated by dividing earnings (loss) by the weighted average
common shares outstanding. Diluted EPS reflects the effect of
all potentially dilutive common shares outstanding by dividing
net earnings (loss) by the weighted average of all common and
potentially dilutive shares outstanding. Stock options that
could potentially dilute earnings (loss) per share in the future
of 5,193,676, 4,326,602 and 5,048,258 in 2004, 2003 and 2002,
respectively, were not included in the computation of diluted
earnings (loss) per share because the effects would have been
anti-dilutive for the periods presented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Concentrations of Credit Risk</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The financial instruments that subject the Company to
concentrations of credit risk consist principally of long-term
assets related to Indian casino projects in the form of notes
receivable due from Indian tribes (See Note&nbsp;5). The notes
receivable are primarily with the Pokagon Band, the Shingle
Springs Tribe and the Jamul Tribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Derivative Instruments</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All derivatives, including those embedded in other contracts,
are recognized as either assets or liabilities and measured at
fair value. The accounting for changes in the fair value of
derivatives depends on their intended use and designation.
Management has reviewed the requirements of Statement of
Financial Accounting Standards No.&nbsp;133, <I>Accounting for
Derivative Instruments and Hedging Activities</I>, and has
determined the Company does not have any freestanding or
embedded derivatives. All contracts that contain provisions
meeting the definition of a derivative also meet the
requirements of, and have been designated as, normal purchases
or sales. The Company&#146;s policy is to not use freestanding
derivatives and to not enter into contracts with terms that
cannot be designated as normal purchases or sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Recent Accounting Pronouncements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the Financial Accounting Standards Board
(&#147;FASB&#148;) issued Statement of Financial Accounting
Standards No.&nbsp;153, <I>Exchanges of Non-Monetary
Assets&nbsp;&#151; An Amendment of APB Opinion</I>
</DIV>

<P align="center" style="font-size: 10pt;">77

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>No.&nbsp;29, Accounting for Non-Monetary Transactions.</I>
SFAS&nbsp;No.&nbsp;153 eliminates the exception from fair value
measurement for non-monetary exchanges of similar productive
assets in paragraph&nbsp;21(b) of APB Opinion No.&nbsp;29, and
replaces it with an exception for exchanges that do not have
commercial substance. SFAS&nbsp;No.&nbsp;153 is effective for
fiscal periods beginning after June&nbsp;15, 2005. The Company
does not expect the adoption of SFAS&nbsp;No.&nbsp;153 to have a
material impact on the Company&#146;s consolidated financial
condition.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2004, the FASB issued Statement of Financial
Accounting Standards No.&nbsp;123 (revised 2004), <I>Share-Based
Payment </I>(SFAS&nbsp;No.&nbsp;123(R)), which amends FASB
Statement Nos. 123 and 95. SFAS&nbsp;No.&nbsp;123(R) requires
all companies to measure compensation expense for all
share-based payments
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
(including employee stock options) at fair value and recognize
the expense over the related service period. Additionally,
excess tax benefits, as defined in SFAS&nbsp;No.&nbsp;123(R),
will be recognized as an addition to paid-in capital and will be
reclassified from operating cash flows to financing cash flows
in the Consolidated Statements of Cash Flows.
SFAS&nbsp;No.&nbsp;123(R) will be effective for the Company on
January&nbsp;1, 2006. Lakes is currently evaluating the effect
that SFAS&nbsp;No.&nbsp;123(R) will have on its consolidated
financial statements. Lakes has included information regarding
the effect on net loss and net loss per common share had it
applied the fair value expense recognition provisions of the
original SFAS&nbsp;No.&nbsp;123 within the &#147;Stock-Based
Compensation&#148; heading in this note.
SFAS&nbsp;No.&nbsp;123(R) will not apply to equity-based
consultant compensation; EITF&nbsp;96-18, <I>Accounting for
Equity Instruments that are Issued to Other Than Employees for
Acquiring, or in Conjunction with Selling, Goods or
Services</I>, is the latest guidance on equity-based consultant
compensation, and is being followed by WPTE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Reclassifications</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other accrued expenses and deferred revenue in the 2003
consolidated financial statements have been reclassified to
conform to the 2004 presentation. These reclassifications had no
effect on previously reported net loss or shareholders&#146;
equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Managements&#146; Financial Plans</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; unaudited cash balance, excluding WPTE cash was
approximately $7&nbsp;million as of November&nbsp;18, 2005.
Lakes&#146; on-going quarterly corporate costs are expected to
approximate $3.5&nbsp;million and on-going quarterly development
project-related costs are expected to approximate
$3.5&nbsp;million, however, a portion of these costs are
discretionary and may be deferred if necessary. It is
anticipated that Lakes will require additional capital through
either public or private financings to meet operating expenses
and development project-related costs during the remainder of
2005 and 2006 and the Company is currently considering various
financing alternatives. The Company believes the assets of
Lakes, provide sufficient collateral to obtain the necessary
financing. The assets of Lakes include common shares of WPTE
that have an estimated fair value of over $80&nbsp;million as of
November&nbsp;18, 2005. This estimated value is based on the
public trading price, which may not be indicative of what Lakes
could realize in a sale of its shares. The Company believes the
shares of WPTE could be the source or part of the collateral for
the additional financing.
</DIV>

<DIV style="margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>2.</B></TD>
    <TD>
    <B>Restatement</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsequent to the issuance of the 2003 consolidated financial
statements, as a result of discussions with the staff of the
Securities and Exchange Commission, the Company re-evaluated its
accounting methodology surrounding its contractual relationships
with Indian tribes and determined that it should have separately
recognized the separate elements of its development and
management agreements with the Indian tribes. Historically the
Company recorded its advances to Indian tribes as notes
receivable and deferred recognition of interest income due to
the contingent repayment terms of the notes. The Company has now
determined that as advances are made to the tribe pursuant to
the development relationship it should have given separate
recognition to the contractual notes receivable established and
the related interests in management contracts that are acquired
in conjunction with the development agreements, as discussed in
Note&nbsp;1. As a result, the
</DIV>

<P align="center" style="font-size: 10pt;">78
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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
accompanying consolidated financial statements for the years
ended December&nbsp;28, 2003 and December&nbsp;29, 2002 have
been restated from amounts previously reported.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A summary of the significant effects of the restatement is as
follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>As of December&nbsp;28, 2003:</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>(In thousands, except per</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>share data)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Balance Sheet:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Prepaid expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>408</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>84,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land held for development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,536</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred tax asset</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,634</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other long-term assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,860</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,838</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term assets related to Indian casino projects</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Notes receivable from Indian tribes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,800</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Intangible assets related to acquisition of management contract</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Land held for development</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,455</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,057</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total long-term assets related to Indian casino projects</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>113,058</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="10">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>170,060</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>174,463</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Shareholders&#146; Equity</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>157,424</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>161,827</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="37%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>For the Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>For the Year Ended</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>December&nbsp;28, 2003:</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>December&nbsp;29, 2002:</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Consolidated Statement of loss:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net impairment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(8,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(9,112</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Costs and Expenses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,373</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,582</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net unrealized gain on notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,452</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss From Operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,935</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,432</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,871</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16,368</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss before income taxes, equity in earnings (loss) of
    investments and minority interest</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,389</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,642</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,996</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(15,034</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Provision (benefit) for income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,428</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,017</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,455</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,379</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net Loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(3,961</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,769</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(11,541</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(10,926</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic loss per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.19</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.54</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted loss per share</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.19</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.54</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.51</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The restatement also resulted in an increase in retained
earnings as of December&nbsp;30, 2001 of $1,596.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>3.</B></TD>
    <TD>
    <B>WPT Enterprises, Inc. Initial Public Offering</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On August&nbsp;9, 2004, the Securities and Exchange Commission
declared effective a registration statement of WPTE that
registered the offer and sale of up to 4,000,000&nbsp;shares of
WPTE common stock, at $8.00&nbsp;per share, in WPTE&#146;s
initial public offering and an additional 600,000&nbsp;shares of
WPTE common stock that were sold by the underwriters involved in
the offering exercise related to their over-allotment option.
WPTE&#146;s
</DIV>

<P align="center" style="font-size: 10pt;">79

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
common stock was approved for trading on the Nasdaq Stock Market
and began trading on August&nbsp;10, 2004. Proceeds from the
sale of the 4,600,000&nbsp;shares were $32.4&nbsp;million, net
of estimated offering expenses and underwriting discounts. These
proceeds were used to expand WPTE&#146;s entertainment
production business and for its working capital. There were no
selling shareholders participating in the offering. Net proceeds
in excess of the amount allocated to minority interest have been
reflected as additional paid-in-capital in the Company&#146;s
financial statements. Lakes did not recognize a gain on this
transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with WPTE&#146;s initial public offering on
August&nbsp;9, 2004, WPTE issued to its lead underwriter,
Feltl&nbsp;&#38; Company, a warrant to purchase up to a total of
400,000&nbsp;shares of common stock at an exercise price of
$12.80 for a period of four years. The warrant is not
exercisable during the first year after the date of the offering
and remains outstanding. The value attributable to the warrants
was considered in the determination of net proceeds of the
offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005, Lakes&#146; consolidated balance
sheet included unrestricted cash and cash equivalents and
short-term investment balances of $57.6&nbsp;million. Included
in this amount was WPTE cash and cash equivalents and short-term
investments of $32.3&nbsp;million.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>4.</B></TD>
    <TD>
    <B>Short-term Investments</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005, the amortized cost, gross unrealized
gains and losses and fair value of short-term investments were
as follows (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="51%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Gross</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Gross</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Amortized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unrealized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unrealized</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fair</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Cost</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Gains</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Losses</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    U.S.&nbsp;Treasury and Agency Securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(23</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13,151</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Certificates of Deposit</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>154</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Short-term Municipal Bonds</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,625</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,625</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Corporate Preferred Securities</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    TOTAL</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,941</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(24</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>28,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All of the investments with unrealized losses had been in a loss
position for less than one year and are not considered to be
other-than-temporarily impaired.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes had no short-term investments at December&nbsp;28, 2003.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>5.</B></TD>
    <TD>
    <B>Long-term Assets Related to Indian Casino
    Projects&nbsp;&#151; Notes&nbsp;Receivable</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The majority of the assets related to Indian casino projects are
in the form of notes receivable due from the tribes pursuant to
the Company&#146;s development and management agreements. The
repayment terms of the loans are specific to each tribe and are
dependent upon the operating performance of each gaming
facility. Repayments of the loans are required to be made only
if distributable profits are available from the operation of the
related casinos. In addition, repayment of the loans and the
manager&#146;s fees under the management contracts are
subordinated to certain other financial obligations of the
respective operations. Generally, the order of priority of
payments from the casinos&#146; cash flows is as follows: a
certain minimum monthly priority payment to the tribe, repayment
of senior debt associated with construction and equipping of the
casino with interest accrued thereon, repayment of various debt
with interest accrued thereon due to Lakes, management fee to
Lakes, and other obligations, with the remaining funds
distributed to the tribe.
</DIV>

<P align="center" style="font-size: 10pt;">80

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information with respect to the notes receivable account
activity at fair value is summarized as follows, (in thousands):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indian casino projects under development:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shingle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pokagon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jamul</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nipmuc</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of December&nbsp;30, 2001</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>26,939</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,079</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3,721</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,063</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>36,057</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total advances during fiscal 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,504</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>17,615</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocation to intangible asset related to management contract</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,302</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,464</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,725</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,349</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,840</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in fair value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(67</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>651</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>151</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,346</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of December&nbsp;29, 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>30,194</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7,899</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>561</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45,544</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total advances during fiscal 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,319</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocation to intangible asset related to management contract</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,580</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5,075</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,148</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(712</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(8,515</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in fair value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,497</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,452</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of December&nbsp;28, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,599</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>713</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>56,800</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total advances during fiscal 2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,820</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,648</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>472</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,091</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocation to intangible asset related to management contract</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,413</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,160</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(891</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(410</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,879</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Changes in fair value</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,153</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,688</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(705</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(775</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(307</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,054</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of January&nbsp;2, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>35,931</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>21,775</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,345</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>67,066</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The key assumptions used to value the notes receivable at fair
value are estimated casino opening date, projected interest
rates, discount rate and probability of projects opening. The
estimated casino opening date is based upon the weighted average
of three scenarios: a base case (which is based on the
Company&#146;s forecasted casino opening date) and one and two
years out from the base case. The projected interest rates are
based upon the one year U.S Treasury Bill spot yield curve per
Bloomberg and the specific assumptions on contract term, stated
interest rate and casino opening date. The discount rate for the
projects is based on the yields available on financial
instruments at the valuation date, the risk level of equity
investments in general, and the specific operating risks
associated with open and operating gaming enterprises similar to
each of the projects. In estimating this discount rate, market
data of other public companies was considered. The probability
applied to each project is based upon a weighting of four
different scenarios with the fourth scenario assuming the casino
never opens. The first three scenarios assume the casino opens
but apply different opening dates as discussed above. The
probability weighting applied to each scenario captures the
element of risk in these projects and is based upon the status
of each project, review of the critical milestones and
likelihood of achieving the milestones.
</DIV>

<P align="center" style="font-size: 10pt;">81

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The terms and assumptions used to value the notes receivable at
fair value are as follows by Indian casino project (dollars in
thousands):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pokagon Band:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;29, 2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$55,747<BR>($44,550 principal and $11,197 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$50,054<BR>$(41,729 principal and $8,325 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$45,335<BR>$(39,470 principal and $5,865 interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stated interest rate, not to exceed 10% (prime plus 1%)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.25%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.0%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.25%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated months until casino opens (weighted average of three
    scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>33&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>34&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>35&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.8%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.4%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.5%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.2%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.0%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.0%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayment terms of note</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>60&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>60&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>60&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening (weighting of four scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70%</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A portion of the notes due from the Pokagon Band include funds
advanced of approximately $24.1&nbsp;million by the Company for
the Pokagon Band&#146;s purchase of land. The Company has a
first deed of trust against substantially all of this property,
which will be relinquished when the BIA places the land into
trust.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The probability rate was increased from 70% to 75% in fiscal
2004 due to an evaluation of all critical milestones as of
January&nbsp;2, 2005 and due to the anticipated favorable
federal judge ruling which was received in March 2005 that will
allow the land to be taken into trust by the Federal Government.
Subsequently the Taxpayers of Michigan Against Casinos
(TOMAC)&nbsp;filed for an appeal. The appeal hearing date has
been set for December&nbsp;8, 2005. Due to the delay related to
this litigation the estimated casino opening date was extended
from November 2006 to October 2007 during the year ended
January&nbsp;2, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
TOMAC commenced the litigation against the Federal Government in
2001 after the U.S.&nbsp;Department of Interior issued a finding
of no significant impact and recommended that land be taken into
trust on behalf of the Pokagon Band. The land in trust issue has
been the most significant critical milestone delaying the
opening of the casino.
</DIV>

<P align="center" style="font-size: 10pt;">82

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shingle Springs Tribe:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;29, 2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$38,156<BR>$(33,076 principal and $5,080 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$27,252<BR>($24,428 principal and $2,824 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$15,571<BR>$(14,035 principal and $1,536 interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stated interest rate (prime plus 2%)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.25%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.0%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.25%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated months until casino opens (weighted average of three
    scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>36&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>37&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>39&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.9%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.7%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.6%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.2%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected repayment terms of note*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>24&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>24&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>24&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening (weighting of four scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65%</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Payable in varying monthly installments based on contract terms
    subsequent to the casino opening.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The probability rate was increased from 65% to 70% due to an
evaluation of the status of all critical milestones as of
January&nbsp;2, 2005. The most significant milestone yet to be
achieved for this project is commercial access to the
reservation on which the casino will be built. The Shingle
Springs Tribe received state regulatory approval of a necessary
interchange to access the tribal land during 2002. Neighboring
El Dorado County and another local group commenced litigation in
Federal and State Courts against the California regulatory
agencies attempting to block the approval of the interchange.
During January of 2004, the California Superior Court ruled in
favor of California Department of Transportation
(&#147;CalTrans&#148;) on all of El Dorado County&#146;s claims
challenging CalTrans&#146; environmental review of the proposed
casino project except that the court asked for clarification on
one issue. The one remaining issue in the state case questions
the state standards for ozone requirements of all of CalTrans
projects throughout California. El Dorado County, Voices for
Rural Living, CalTrans and the Shingle Springs Tribe filed an
appeal and oral arguments on these appeals was heard in August
2005. In November 2005, the California Court of Appeal
(&#147;Court&#148;) issued its decision on these appeals. The
Court ruled in favor of CalTrans&#146; appeal, rejecting the El
Dorado County&#146;s argument that the transportation conformity
analysis did not conform to state standards. The Court also
rejected all but two of the legal claims asserted in the appeal
by El Dorado County and Voices for Rural Living against the
environmental impact report (&#147;EIR&#148;) prepared by
CalTrans for the interchange that will connect Highway 50 to the
Shingle Springs Rancheria. For the remaining two issues, the
Court held that CalTrans must supplement its environmental
analysis by adding some discussion to the air quality chapter to
further explain the project&#146;s contribution to overall
vehicular emissions in the region, and that CalTrans also must
evaluate whether a smaller casino and hotel would reduce
environmental impacts. The Court acknowledged CalTrans lacks
jurisdiction to require the Shingle Springs Tribe to develop a
smaller casino, but nevertheless required some discussion of
this alternative in the interchange EIR.
</DIV>

<P align="center" style="font-size: 10pt;">83

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In January 2005, Lakes received a favorable ruling from the
federal court on all federal issues with respect to the casino
development planned by the Shingle Springs Tribe. The federal
favorable ruling related to the project is being appealed by El
Dorado County.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to delays related to the litigation discussed above, the
estimated casino opening date was extended from February 2007 to
January 2008 during the year ended January&nbsp;2, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Jamul Tribe:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;29, 2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$17,306<BR>$(14,467 principal and $2,839 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$14,163<BR>$(12,236 principal and $1,927 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$10,549<BR>($9,492 principal and $1,057 interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stated interest rate (prime plus 2%)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.25%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.0%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.25%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estimated months until casino opens (weighted average of three
    scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>36&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>36&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>36&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.9%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.6%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.5%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.7%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.6%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.1%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayment terms of note*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>84&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>12&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>12&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening (weighting of four scenarios)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75%</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    The contract was amended in October 2004, which changed the
    repayment terms of the notes to seven years.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to delays related to getting land contiguous to the
reservation placed into trust, the casino opening date was
extended from January 2007 to January 2008 during the year ended
January&nbsp;2, 2005. Because of the slow process, during August
of 2005, the Jamul Tribe and Lakes formally announced plans to
build the casino on the approximately 6&nbsp;acres of
reservation land held by the Jamul Tribe. Reservation land
qualifies for gaming without going through a land in trust
process.
</DIV>

<P align="center" style="font-size: 10pt;">84

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nipmuc Tribe:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="26%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of January&nbsp;2, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;28, 2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As of December&nbsp;29, 2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Face value of note (principal and interest)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$6,513<BR>($5,461 principal and $1,052 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$5,295<BR>($4,634 principal and $661 interest)</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left" valign="bottom">$4,188<BR>($3,814 principal and $374 interest)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Stated interest rate (prime plus 2%)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.25%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.0%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.25%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Months until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>72&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>72&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate until casino opens</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.7%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.6%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Projected interest rate during the loan repayment term</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10.8%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.0%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Discount rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33%</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Repayment terms of note</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>60&nbsp;months</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom" nowrap>60&nbsp;months</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Probability rate of casino opening</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65%</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the second quarter of 2004, the BIA issued its final
determination denying the Nipmuc Nation&#146;s application for
federal recognition. Although the Nipmuc Nation is appealing the
determination with the BIA, Lakes made a decision to discontinue
funding the project. Lakes recorded an unrealized loss on notes
receivable of $0.8&nbsp;million during the second quarter of
2004 related to the fair value of the note receivable from the
Nipmuc Nation. Lakes also recorded an impairment charge of
$5.8&nbsp;million during the second quarter of 2004 related to
other long-term assets related to the Nipmuc Nation Indian
casino project. As further background, the Nipmuc Nation is a
state-recognized tribe. In January 2001, the Nipmuc Nation
received a draft, preliminary factual finding from the Assistant
Secretary&nbsp;&#151; Indian Affairs (&#147;AS-IA&#148;) that
the Nipmuc Nation was entitled to federal recognition. Based on
these facts, as well as the Company&#146;s evaluation of the
project&#146;s geographic location and the feasibility of the
project&#146;s success given such location, the structure and
stability of the tribal government, the scope of the proposed
project, including the physical scope of the contemplated
facility and the expected financial scope of the related
development, and the nature of the business opportunity, Lakes
entered into a development and management contract with the
Nipmuc Nation in July 2001. The January 2001 draft, preliminary
factual finding from the AS&nbsp;&#151; IA indicated that the
Nipmuc Nation was entitled to federal recognition, however, it
did not have the approval of the Office of the Solicitor of the
Department of Indian Affairs, as required, and the Office of the
Solicitor had approved the recommendation of the BIA, which
recommended a proposed negative finding. In September 2001, the
Nipmuc Nation received the official proposed negative finding,
as evidenced by its publication in the October&nbsp;1, 2001
Federal Register. As required under law, the Nipmuc Nation was
permitted to challenge the proposed negative finding, which the
Nipmuc Nation chose to do. The Nipmuc Nation engaged consultants
and advisors, including the former Senior Historian for the BIA
Branch of Acknowledgement and Research to assist them in
submitting a formal response in September 2002. The response was
organized in a manner to address the four remaining deficiencies
outlined in the BIA&#146;s published proposed negative finding.
Indications to Lakes from the Nipmuc Nation and its consultants
and advisors throughout the process of preparing the response
were positive about obtaining a reversal of the proposed
negative finding. Based on this analysis, the Company believed
that, notwithstanding the proposed negative finding, the Nipmuc
Nation would likely be granted federal recognition based on
additional genealogical data and other information submitted by
the tribe to the BIA for reconsideration. During the second
quarter of 2004, however, the BIA issued its final determination
denying the Nipmuc Nation&#146;s application for federal
recognition. Should the Nipmuc Nation become federally
recognized and open and operate a casino successfully (with or
without Lakes&#146; assistance) Lakes is entitled to receive
payment in full of its notes receivable and deferred interest.
</DIV>

<P align="center" style="font-size: 10pt;">85

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Other notes receivable primarily relate to a note with the
Cloverdale Rancheria to finance and develop a gaming facility on
Indian owned land in California. During 2002, Lakes and the
Cloverdale Rancheria could not reach agreement on a new
management contract. The Cloverdale Rancheria notified the
Company during 2002 that the Cloverdale Rancheria wished to
terminate the relationship between the two parties. As a result
the Company recognized an unrealized loss of $1.3&nbsp;million
during fiscal 2002. During the fourth quarter of 2004 Lakes
determined successful completion of the casino development was
not likely given increased local opposition to the planned
casino project. Specifically the County Board of Supervisors
voted in February 2005 to oppose any casino project in their
County. Therefore in 2004, the Company recorded an unrealized
loss on notes receivable of $0.3&nbsp;million related to the
fair value of its note receivable from the Cloverdale Rancheria.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although various litigation and regulatory issues have caused
delays to the Company&#146;s remaining development projects,
management believes it is probable that these pending projects
will ultimately be completed and no additional impairments have
been recorded.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>6.</B></TD>
    <TD>
    <B>Long-term Assets Related to Indian Casino
    Projects&nbsp;&#151; Intangible Assets Related to the
    Acquisition of Management Contract</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These intangible assets are related to the acquisition of the
management contracts and are periodically evaluated for
impairment after they are initially recorded as described in
Note&nbsp;1. They include portions of advances to tribes
allocated to these management contracts and approximately
$5.4&nbsp;million of additional costs incurred to acquire
Lakes&#146; interest in the management contracts from third
parties as of January&nbsp;2, 2005 and December&nbsp;28, 2003.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information with respect to the intangible assets related to the
acquisition of management contracts account activity by project
is summarized as follows, (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shingle</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pokagon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Springs</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Jamul</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Nipmuc</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of December&nbsp;30, 2001</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>12,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,058</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>20,407</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments to third parties for acquisition of management contract
    and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocation of advances made to Indian tribes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,302</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,725</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,349</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,840</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,112</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,112</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of December&nbsp;29, 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,462</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28,170</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments to third parties for acquisition of management contract
    and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,061</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocation of advances made to Indian tribes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,580</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,075</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,148</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>712</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,515</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of December&nbsp;28, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>16,191</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>12,538</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,746</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Payments to third parties for acquisition of management contract
    and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Allocation of advances made to Indian tribes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>410</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,879</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Impairment loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,529</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,529</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance as of January&nbsp;2, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17,604</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>16,698</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>41,096</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">86

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes, in accordance with FASB No.&nbsp;142 will amortize the
intangible assets related to the acquisition of the management
contracts under the straight-line method over the lives of the
contracts which will commence when the related casinos open.
There has been no amortization expense to date related to these
intangible assets. Based on current estimates of project opening
dates and estimated length of management contracts, the Company
expects to recognize amortization expense of $0, $0,
$0.9&nbsp;million, $6.9&nbsp;million and $6.9&nbsp;million
during 2005, 2006, 2007, 2008 and 2009, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 2004, Lakes recognized a $4.5&nbsp;million impairment
charge related to its intangible asset related to the
acquisition of the management contract with the Nipmuc Nation
which was part of a total impairment charge of $5.8&nbsp;million
related to Nipmuc Nation project. See Note&nbsp;5 for a
description of the 2004 write-off of all assets related to the
Nimpuc Nation. Additionally, in 2002, Lakes recorded an
impairment charge of $1.1&nbsp;million on Lakes&#146; intangible
assets related to the acquisition of the development agreement
for the Cloverdale Indian casino project.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>7.</B></TD>
    <TD>
    <B>Land Held Under Contract for Sale</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in land held under contract for sale at
December&nbsp;28, 2003 is $4.6&nbsp;million related to the sale
of the Travelodge property located in Las Vegas to Metroflag BP,
LLC. In 2003, an impairment of $1.0&nbsp;million was recorded
due to an anticipated renegotiation of the agreement that
ultimately did not occur. On December&nbsp;21, 2004 Metroflag
BP, LLC paid all amounts owed, including interest, of
approximately $5.9&nbsp;million. As a result of full payment in
accordance with the agreement, Lakes recorded a
$1.0&nbsp;million gain which is included in the net impairment
losses on the consolidated statement of loss.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>8.</B></TD>
    <TD>
    <B>Membership Interest in Metroflag Polo, LLC</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Included in long term investments on the consolidated balance
sheets is an investment in property located in Las Vegas. This
investment is carried at its estimated net realizable value of
$5.0&nbsp;million and $7.0&nbsp;million at January&nbsp;2, 2005
and December&nbsp;28, 2003, respectively. This investment
relates to land sold by Lakes to Metroflag Polo, LLC
(&#147;Metroflag&#148;) in 2001.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The land was sold for $25.8&nbsp;million of which Lakes received
cash of $17.8&nbsp;million between 2001 and 2003 and a
membership interest of $8.0&nbsp;million in Metroflag
representing the remaining contracted amounts due Lakes. The
membership interest is carried at its estimated net realizable
value of $5.0&nbsp;million and $7.0&nbsp;million at
January&nbsp;2, 2005 and December&nbsp;28, 2003, respectively.
The investment was reduced to $7.0&nbsp;million in 2002, as an
amendment was made to the agreement in that year which allowed
for a $1.0&nbsp;million discount related to an early payment
option. During March 2005, Lakes entered into an option
agreement with Metroflag, which provided Metroflag with the
ability to exercise an option allowing a discount for early
payment of its obligation to Lakes. As such an impairment charge
of $2.0&nbsp;million was recognized in 2004. Metroflag exercised
this option and made the final payment of $5&nbsp;million on
July&nbsp;15, 2005, which represented full satisfaction of the
membership interests.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><B>9.</B></TD>
    <TD>
    <B>Deferred Television Costs</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Capitalized television costs at January&nbsp;2, 2005 and
December&nbsp;28, 2003 consist of the following and are included
in other current assets (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Television Costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    In-production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>911</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,559</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Development and pre-production</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total television costs</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>917</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,613</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">87

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Overhead costs of $189,000 were included in total capitalized
television costs of $917,000 at January&nbsp;2, 2005 and
$104,000 at December&nbsp;28, 2003. Based upon management&#146;s
estimates as of January&nbsp;2, 2005, approximately 100% of
capitalized television costs are expected to be recognized
during fiscal 2005.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>10.</B></TD>
    <TD>
    <B>Property and Equipment</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes the components of property and
equipment at cost (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Building</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,406</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Furniture and equipment</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,469</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,532</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,938</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Less: Accumulated depreciation</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,081</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,446</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Property and equipment, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,492</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>11.</B></TD>
    <TD>
    <B>Income Taxes</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The provision (benefit) for income taxes attributable to
earnings/losses for 2004, 2003 and 2002 consisted of the
following (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Years Ended</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Federal</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>132</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(3,777</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(2,268</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>173</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(3,777</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(2,268</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,869</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,760</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,111</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(1,017</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(4,379</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Reconciliations of the statutory federal income tax rate to the
Company&#146;s actual rate based on losses before income taxes
for 2004, 2003 and 2002 are summarized as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="69%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Year Ended</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Statutory federal tax rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35.0</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35.0</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(35.0</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    State income taxes, net of federal income taxes</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(164.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.8</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax exempt income</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>984.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Change in state tax rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>123.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Legal settlement received</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(459.5</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other, net</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>23.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.7</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>471.6</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(38.5</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(29.1</TD>
    <TD align="left" valign="bottom" nowrap>)%</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">88

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s deferred income tax liabilities and assets
are as follows (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="74%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Current deferred tax asset:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Subsidiary stock option expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>541</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Accruals, reserves and other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>776</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,385</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,180</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2"><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>137</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,385</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Non-current deferred taxes:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized investment losses</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,949</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deferred interest on notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,784</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6,246</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Unrealized gains on notes receivable</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(4,083</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,210</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net operating loss carryforwards</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>894</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Valuation allowance</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,224</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,949</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net non-current deferred tax asset</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,930</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In accordance with SFAS&nbsp;No.&nbsp;109, Lakes annually
evaluates its ability to utilize deferred tax assets arising
from net operating loss carry forwards, deferred tax assets and
other ordinary items. In the fourth quarter of the year ended
January&nbsp;2, 2005, Lakes determined that a valuation
allowance was appropriate at January&nbsp;2, 2005. Lakes
evaluated all evidence and determined the negative evidence
relating to delays in casino projects and net losses generated
over the past three years outweighed the current positive
evidence that the Company believes exists surrounding its
ability to generate significant income from its long-term assets
related to Indian casino projects. The Company recorded a 100%
valuation allowance against these items at January&nbsp;2, 2005.
In addition, the Company recognized a deferred tax asset related
to capital losses during 2001 through 2004. The realization of
these benefits is dependant on the generation of capital gains.
The Company believes it will have sufficient capital gains in
the future to utilize these benefits due to significant
appreciation in its investment in WPTE. The Company owns
approximately 12.5&nbsp;million shares of WPTE common stock
valued at approximately $83.9&nbsp;million as of
November&nbsp;14, 2005 based upon the closing stock price as
reported by Nasdaq on November&nbsp;14, 2005 of $6.72.
Lakes&#146; basis in the WPTE common stock is minimal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is currently under examination for income and
franchise tax matters. See Note&nbsp;15 regarding the IRS Tax
Audit and the Louisiana Department of Revenue Litigation Tax
Matter.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>12.</B></TD>
    <TD>
    <B>Stock Options:</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Lakes Stock Option Plans</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has a Stock Option and Compensation Plan and a Director
Stock Option Plan which was carried forward from Lakes&#146;
predecessor Grand Casinos, Inc. These plans granted
non-qualified stock options to officers, directors and employees
of Lakes. No options have been granted under these plans since
December&nbsp;31, 1998, the date of the spin-off from Grand
Casinos, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additionally, Lakes has a 1998 Stock Option and Compensation
Plan and a 1998&nbsp;Director Stock Option Plan which are
approved to grant up to an aggregate of 5.0&nbsp;million shares
and 0.5&nbsp;million shares, respectively, of incentive and
non-qualified stock options to officers, directors, and
employees.
</DIV>

<P align="center" style="font-size: 10pt;">89

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information with respect to the Lakes stock option plans is
summarized as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="38%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Number of Common Shares</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Lakes</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Available</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Ave. Exercise</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>for Grant</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at December&nbsp;30, 2001</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,972,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,838,686</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,900,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>168,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(168,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Canceled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(92,428</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.89</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at December&nbsp;29, 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,048,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,429,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,732,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>60,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(60,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.18</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Canceled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(583,688</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>149,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.16</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(197,968</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at December&nbsp;28, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,326,602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,317,402</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,821,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,655,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,655,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.35</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Additional shares authorized</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Canceled</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(9,400</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(778,526</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at January&nbsp;2, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,193,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,591,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>266,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.72</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Options Exercisable at</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Options Outstanding at January&nbsp;2, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;2, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Remaining</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted-Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted-Average</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Range of Exercises Prices</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Contractual Life</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $(1.66 - &nbsp;3.31)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>139,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.0&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>38,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>3.27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;(3.31 - &nbsp;4.97)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,691,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.4&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,507,600</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.23</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;(4.97 - &nbsp;6.62)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>640,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.4&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>640,126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;(6.62 - &nbsp;8.28)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,595,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.0&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>404,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.09</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;(9.93 - 11.59)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.8&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>11.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.00</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,193,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.6&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,591,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.90</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The SFAS&nbsp;No.&nbsp;123 method of accounting has not been
applied to options granted prior to January&nbsp;1, 1995, thus
the resulting pro forma compensation cost may not be
representative of that to be expected in future years. The fair
value of each award under the option plans is estimated on the
date of grant using the Black-Scholes option-pricing model. The
following assumptions were used to estimate the fair value of
options:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="61%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Risk-free interest rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.24</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.27</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.98</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected life</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10&nbsp;years</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Volatility</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67.66</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>42.47</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.31</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dividend yield</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information regarding the effect on net loss and net loss per
common share had the fair value expense recognition provisions
of SFAS&nbsp;No.&nbsp;123 been applied is included in
Note&nbsp;1.
</DIV>

<P align="center" style="font-size: 10pt;">90

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>WPTE Stock Option Plan</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
World Poker Tour, LLC, a majority-owned subsidiary of Lakes and
predecessor entity of WPTE, adopted the 2002 Option Plan (the
2002 Plan) which was approved to issue up to an aggregate of
1.12&nbsp;million shares in connection with option grants to
employees and consultants. The options become exercisable in
quarterly installments on each of the first four anniversaries
of the date of the grant and expire six years after being
exercisable. The employee must be employed by WPTE on the
anniversary date in order to vest in any shares that year. If
the employee is terminated (voluntarily or involuntarily) prior
to vesting of any unit option, any options remaining to vest as
of the date of termination will be forfeited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the conversion to a corporation, WPTE adopted
the 2004 Stock Incentive Plan that is authorized to grant stock
awards to purchase up to 3.12&nbsp;million shares of common
stock, including the options to purchase up to 1.12&nbsp;million
shares of common stock issued to employees and consultants that
were previously outstanding under the 2002 Plan at the time of
conversion. Under the 2004 Plan, the options vest in equal
installments over a three year period, beginning on the first
anniversary of the date of each grant and will continue on each
subsequent anniversary date until the option is fully vested.
The employee must be employed by WPTE on the anniversary date in
order to vest in any shares that year. If the employee is
terminated (voluntarily or involuntarily) prior to vesting of
any stock option, any options remaining to vest as of the date
of termination will be forfeited. To the extent options are
vested, the option shall be exercisable for ten years from the
date of grant. WPTE has 19.5&nbsp;million shares of common stock
issued and outstanding at January&nbsp;2, 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information with respect to WPTE&#146;s stock option plans is
summarized as follows:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="42%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Number of Common Shares</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>WPTE</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Available for</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Avg. Exercise</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Grant</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at December&nbsp;30, 2001</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0049</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at December&nbsp;29, 2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0049</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at December&nbsp;28, 2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>280,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0049</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Authorized</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Granted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,441,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,441,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.18</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Exercised</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Balance at January&nbsp;2, 2005</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,561,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>560,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>559,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.61</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Options Exercisable at</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Options Outstanding at January&nbsp;2, 2005</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>January&nbsp;2, 2005</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted Avg.</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Remaining</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted Avg.</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Avg.</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Range of Exercise Prices</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Contractual Life</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise Price</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $0.0049</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,120,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0049</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>560,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0049</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $(8.00-9.92)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,412,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $14.51</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>14.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    $(.0049-14.51)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,561,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>7.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>560,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.0049</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">91

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For stock options issued to employees, deferred stock
compensation for the options is measured at the stock&#146;s
intrinsic value in excess of the exercise price on the date of
grant and is being amortized over the vesting period of four
years. In connection with these grants, WPTE recorded deferred
compensation of $2,500, as options granted under the 2002 plan
had an exercise price less than the fair value of the underlying
share on the date of grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The fair value of each award under the option plans is estimated
on the date of grant using the Black-Scholes option-pricing
model. The following assumptions were used to estimate the fair
value of the options granted during 2002 and 2004 under the
SFAS&nbsp;No.&nbsp;123, <I>Accounting for Stock-Based
Compensation,</I> method of accounting for the purpose of the
pro forma expense disclosure:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Risk-free interest rate</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.05</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4.49</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Expected life</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5&nbsp;years</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5&nbsp;years</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Volatility</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>46.13</TD>
    <TD align="left" valign="bottom" nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Dividend yield</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For options issued to consultants, compensation expense is
measured at the option&#146;s fair value. Fair value is measured
when the options vest in annual installments on each of the
first four anniversaries of the date of the grant. Compensation
expense is estimated in periods prior to vesting based on the
then current fair value. Changes in the estimated fair value of
unvested options are recorded in the periods the change occurs.
Compensation expense for options issued to consultants was
$1.4&nbsp;million in 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The number of shares issued to the consultants and the value of
such shares were based on negotiation between WPTE&#146;s
management and Lakes. After determining that Lakes would receive
a 78% fully-diluted equity interest in the WPTE in exchange for
an initial investment of $0.1&nbsp;million, the remaining 22%
equity interest was valued at $28,000, which management believes
was appropriate since all of these instruments were issued at
approximately the same time. This remaining 22% equity interest
was issued in the form of restricted shares and unit options and
was allocated to five key individuals (three employees and two
consultants) involved in WPTE&#146;s formation and/or initial
operations based on the individuals&#146; relative perceived
value to the enterprise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Information regarding the effect on net loss and net loss per
share had the fair value expense recognition provisions of
SFAS&nbsp;No.&nbsp;123 been applied is included in Note&nbsp;1.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Restricted Shares Issued</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;4, 2002, WPTE granted 2.4&nbsp;million shares to
its president under a management agreement. The shares vest in
four equal installments annually beginning February&nbsp;25,
2003. If there is a change of control all non-vested shares vest
immediately. In connection with this grant, WPTE recorded
deferred compensation of $19,200. WPTE recognized nominal
compensation expense in each of the years 2004, 2003 and 2002
for shares earned based upon services provided under the
management agreement.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>13.</B></TD>
    <TD>
    <B>Concentrations</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE has entered into agreements with the Travel Channel, LLC
(&#147;TRV&#148;) pursuant to which it granted TRV an exclusive
license to broadcast and telecast its programs on television in
the United States during seasons one and two of the World Poker
Tour television series and options to acquire similar licenses
for the episodes comprising each of the seasons three through
seven, which will not be completed until 2009. In May 2004 and
March 2005, TRV exercised its options with respect to seasons
three and four, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreements, WPTE is required to deliver each episode
of the World Poker Tour television series by a specific delivery
date. If WPTE fails to timely deliver an episode, TRV has the
right to reject that episode and be reimbursed for the related
per-episode license fee. As a result, untimely delivery of one
or more
</DIV>

<P align="center" style="font-size: 10pt;">92

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
episodes by WPTE may have a material adverse effect on
WPTE&#146;s financial condition, results of operations and cash
flow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
TRV&#146;s decision to exercise its options may be affected by,
among other things, WPTE&#146;s ability to deliver episodes in a
timely manner, as well as the quality of the programming and its
continued acceptance by the viewing public. Since the revenue
from the TRV has represented approximately 76% of total
historical WPTE revenue, a decision by TRV not to exercise its
options for future seasons would have a material adverse effect
on WPTE&#146;s financial condition, results of operations and
cash flow, especially if this decision were made prior to the
material growth of other WPTE revenue streams (for example, from
the sale of branded merchandise). Even following the growth of
other revenue streams, the failure to maintain a broadcast
license agreement would be detrimental to the visibility and
viability of the World Poker Tour brand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
See Note&nbsp;20 regarding the lawsuit filed by WPTE against TRV.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>14.</B></TD>
    <TD>
    <B>Employee Retirement Plan:</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has a section&nbsp;401(k) employee savings plan for all
full-time employees. The savings plan allows participants to
defer, on a pre-tax basis, a portion of their salary and
accumulate tax-deferred earnings as a retirement fund.
Eligibility is based on years of service and minimum age
requirements. Contributions are invested, at the direction of
the employee, in one or more available funds. Lakes matches
employee contributions up to a maximum of 4% of participating
employees&#146; gross wages. The Company contributed
$0.10&nbsp;million, $0.11&nbsp;million and $0.10&nbsp;million
during 2004, 2003, and 2002, respectively. Company contributions
are vested over a period of five years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE (after conversion to a corporation in July 2004)
established a section&nbsp;401(k) employee savings plan for all
full-time employees. The savings plan allows participants to
defer, on a pre-tax basis, a portion of their salary and
accumulate tax-deferred earnings as a retirement fund.
Eligibility is based on years of service and minimum age
requirements. Contributions are invested, at the direction of
the employee, in one or more available funds. WPTE has the
ability, at management&#146;s sole discretion, to match employee
contributions. WPTE made no matching contribution during 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>15.</B></TD>
    <TD>
    <B>Commitments and Contingencies:</B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><U>Lakes&#146; Commitments and Contingencies</U></I></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Operating Leases</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company leases certain property and equipment, including an
airplane, under non-cancelable operating leases. The
Company&#146;s airplane lease contains a residual value
guarantee of $7.5&nbsp;million. Rent expense, under
non-cancelable operating leases, exclusive of real estate taxes,
insurance, and maintenance expense was $1.1&nbsp;million,
$0.6&nbsp;million and $0.6&nbsp;million for 2004, 2003 and 2002,
respectively. During 2004, the Company determined that the value
of the aircraft had decreased to $6.1&nbsp;million. Therefore,
the Company began accruing the expected deficiency over the
remaining term of the lease. This resulted in additional expense
of $0.6&nbsp;million in 2004. At the end of the lease term in
April 2005 a determination of the actual deficiency was made and
based on that determination a payment of $1.4&nbsp;million was
made during August 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The airplane lease was amended on May&nbsp;1, 2005, which allows
for a base term of one year and two one-year renewal terms.
Approximate future minimum lease payments due under this lease
are $2.0&nbsp;million, of which $0.4&nbsp;million,
$0.7&nbsp;million, $0.7&nbsp;million and $0.2&nbsp;million are
payable in 2005, 2006, 2007 and 2008, respectively. Under the
lease agreement, the Company has the option of renewing the
lease, purchasing the airplane at amounts which range from
approximately $5.2&nbsp;million to $5.8&nbsp;million or
facilitating the sale of the aircraft at the end of each term
included in the up to three year lease term; however at the
conclusion of the lease, the Company is required to purchase the
airplane or facilitate the sale of the airplane. The
Company&#146;s airplane lease contains a residual value
guarantee of $5.2&nbsp;million at the end of the three year
lease term.
</DIV>

<P align="center" style="font-size: 10pt;">93

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Indemnification Agreement</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a part of the transaction establishing Lakes as a separate
public company on December&nbsp;31, 1998, the Company had agreed
to indemnify Grand Casinos through December&nbsp;28, 2004
against all costs, expenses and liabilities incurred in
connection with or arising out of certain pending and threatened
claims and legal proceedings against Grand Casinos and to pay
all related settlements and judgments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the indemnification period, Lakes agreed not to declare
or pay any dividends, make any distribution on account of
Lakes&#146; equity interests, or otherwise purchase, redeem,
defease or retire for value any equity interests in Lakes
without written consent of Caesars Entertainment, Inc. (parent
company of Grand Casinos). The indemnification period expired on
December&nbsp;28, 2004.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>IRS Tax Audit</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is under audit by the Internal Revenue Service
(&#147;IRS&#148;) for the fiscal years ended 2001 and 2000. The
IRS is challenging the treatment of income categorized as a
capital gain. If the Company is unsuccessful in sustaining its
position the Company may be required to pay up to approximately
$3.2&nbsp;million plus accrued interest and penalties related to
tax on ordinary income. The Company originally carried back
capital losses to offset the capital gain. If the Company were
unsuccessful in sustaining its capital gain position related to
this income the Company could use the capital losses in the
future to offset future capital gains, if any, prior to their
expiration. Management believes that the final outcome of this
matter is not likely to have a material adverse effect upon the
Company&#146;s consolidated balance sheet or statement of loss.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Tribal Commitments</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s management contracts with its tribal partners
require the Company to provide financial support related to
project development, in the form of loans.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Tribal Casino Development Advances/ Commitments</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>As of January&nbsp;2, 2005</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="50%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Pre-construction</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Land Held for</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Remaining</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Advances</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Development</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Commitment</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>(In millions)</B></TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Jamul Tribe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Shingle Springs Tribe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>33.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Pokagon Band</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>28.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Kickapoo Tribe</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.0</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of January&nbsp;2, 2005, $41.9&nbsp;million had been advanced
related to the Shingle Springs project. The Company, in April
2005 amended the Shingle Springs&#146; project notes increasing
the Company&#146;s total commitment to $50&nbsp;million. The
Company anticipates this increase will be adequate to cover
pre-construction and land commitments over the next two years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the Pokagon Casino project, the Company has agreed to
provide additional financing from its own funds if financing to
the Pokagon Band at an interest rate not to exceed 13% is not
available from third parties. If this occurs and Lakes is
required to provide all financing, this would be an additional
commitment of up to approximately $54&nbsp;million. Based on
discussions with prospective lenders the Company presently
believes that third-party financing will be available for this
project. However, there can be no assurance that third-party
financing will be available at the time the project begins
construction. Lakes is not required to fund these amounts;
however, if Lakes discontinued the funding prior to fulfilling
the obligation, Lakes would forfeit the rights under the
management contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company will be obligated to pay an amount to an unrelated
third party once the Pokagon Casino is open and Lakes is the
manager of the casino. The amount is payable quarterly for five
years and is only
</DIV>

<P align="center" style="font-size: 10pt;">94

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
payable if Lakes is the manager of the casino. The payment is
part of a settlement and release agreement associated with Lakes
obtaining the management contract with the Pokagon Band. The
maximum liability over the five-year period is approximately
$11&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes may be required to provide a guarantee of tribal debt
financing or otherwise provide support for the tribal
obligations related to any of the projects. Any guarantees by
Lakes or similar off-balance sheet liabilities will increase
Lakes&#146; potential exposure in the event of a default by any
of these tribes.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>Employment Agreements</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has entered into employment agreements with certain key
employees of the Company. The agreements provide for certain
benefits to the employee as well as severance if the employee is
terminated without cause. The severance amounts range from
twelve months to two years of base salary plus twelve months
bonus calculated as the average bonus earned in the previous two
years. If such termination occurs within two years of a change
of control as defined in the agreements, the employee will
receive a lump sum payment equal to two times the annual base
salary and bonus/incentive compensation along with insurance
costs, 401k matching contributions and certain other benefits.
All unvested stock options vest at the date of termination and
remain exercisable for two years. The agreements provide for a
base salary, bonus, stock options and other customary benefits.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <I><U>WPTE Commitments</U></I></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;4, 2002, World Poker Tour, LLC (&#147;WPT
LLC&#148;), entered into a written employment agreement with
Steven Lipscomb pursuant to which he served as Chief Executive
Officer. In connection with entering into the agreement, WPT LLC
issued 2.4&nbsp;million restricted shares to Mr.&nbsp;Lipscomb
that are subject to forfeiture restrictions which lapse in equal
installments over four years, subject to acceleration in the
event Mr.&nbsp;Lipscomb&#146;s employment is terminated without
&#147;Cause&#148; or there is a &#147;Change of Control&#148;
(each as defined). Until the restrictions have lapsed with
respect to any portion of Mr.&nbsp;Lipscomb&#146;s restricted
shares, the restricted shares will be immediately forfeited to
WPTE if Mr.&nbsp;Lipscomb&#146;s employment is terminated for
&#147;Cause&#148; (as defined) or a gaming authority determines
that Mr.&nbsp;Lipscomb is unsuitable or unqualified to be
associated with Lakes or a subsidiary of Lakes. At the time WPTE
became a public corporation in August 2004, the forfeiture
restrictions had lapsed on 1,200,000&nbsp;shares. The forfeiture
restrictions on the remaining 1,200,000&nbsp;shares will lapse
in 600,000&nbsp;share installments on February&nbsp;25, 2005 and
February&nbsp;25, 2006, respectively. See also Note&nbsp;1 and
Note&nbsp;9.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE has an employment agreement with Steven Lipscomb under
which WPTE has agreed to pay an annualized base salary of
$500,000 commencing as of December&nbsp;29, 2003 and
Mr.&nbsp;Lipscomb will be eligible to participate in WPTE&#146;s
bonus plan and an additional bonus equal to a percentage of
WPTE&#146;s annual net profits above certain levels. The
agreement is for a term of three years commencing on
December&nbsp;29, 2003. WPTE also granted Mr.&nbsp;Lipscomb
options to purchase&nbsp;600,000&nbsp;shares of WPTE&#146;s
common stock at $8.00&nbsp;per share on August&nbsp;9, 2004,
which options will vest in equal installments over three years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Through April 2005, WPTE had a month-to-month lease for office
space. The monthly lease payment fluctuated from month-to-month
based on the amount of space it utilized. The average amount
paid per month under the lease was approximately $21,000. WPTE
signed a new lease and moved into the new office space in April
2005 where the monthly lease payments started at approximately
$38,000 and will escalate up to approximately $45,000 through
May 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE also has the following purchase obligations at
January&nbsp;2, 2005: one-time development and hardware and
software infrastructure fees of $400,000 and annual licensing
fee of $135,000, required by the Alderney Gaming Control
Commission and a monthly retainer of $7,500 payable to
Integrated Corporate Relations through July 2005.
</DIV>

<P align="center" style="font-size: 10pt;">95

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B><U>Legal Proceedings</U></B>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Slot Machine Litigation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1994, William H. Poulos filed a class-action lawsuit in the
United States District Court for the Middle District of Florida
against various parties, including Lakes&#146; predecessor Grand
Casinos and numerous other parties alleged to be casino
operators or slot machine manufacturers. This lawsuit was
followed by several additional lawsuits of the same nature
against the same, as well as additional defendants, all of which
were subsequently consolidated into a single class-action
pending in the United States District Court for the District of
Nevada. Following a court order dismissing all pending pleadings
and allowing the plaintiffs to re-file a single complaint, a
complaint has been filed containing substantially identical
claims, alleging that the defendants fraudulently marketed and
operated casino video poker machines and electronic slot
machines, and asserting common law fraud and deceit, unjust
enrichment and negligent misrepresentation and claims under the
federal Racketeering-Influenced and Corrupt Organizations Act.
Various motions were filed by the defendants seeking to have
this new complaint dismissed or otherwise limited. In December
1997, the Court, in general, ruled on all motions in favor of
the plaintiffs. The plaintiffs then filed a motion seeking class
certification and the defendants opposed it. In June 2002, the
Court entered an order denying class certification. On
August&nbsp;10, 2004, the Ninth Circuit Court of Appeals
affirmed the District Court&#146;s denial of class
certification. On September&nbsp;14, 2005, the United States
District Court for the District of Nevada granted the
defendants&#146; motions for summary judgment, and judgment was
entered against the plaintiffs on that same day. The defendants
have also filed motions seeking the payment of costs and
attorney fees and defendants have until November&nbsp;28, 2005
to complete their briefing on the motions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has not recorded any liability for this matter as
currently an estimate of any possible loss cannot be made.
Management currently believes that the final outcome of this
matter is not likely to have a material adverse effect upon the
Company&#146;s consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Willard Eugene Smith Litigation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On October&nbsp;24, 2003, Lakes announced that it had been named
as one of a number of defendants in a counterclaim filed in
state court in Harris County, Texas by Willard Eugene Smith
involving Kean Argovitz Resorts, LLC (KAR)&nbsp;and related
persons and entities. In the counterclaim, Smith asserted that,
under an alleged oral agreement with Kevin Kean, he is entitled
to a percentage of fees to be received by the KAR Entities or
their principals relating to the Shingle Springs and Jamul
Casinos that Lakes&#146; subsidiaries are developing in
California. Smith also sought recovery of damages through the
remedy of either attachment of the management fees generated
from the projects or avoidance of buyout agreements between
Lakes and KAR based on their conduct with respect to the alleged
agreement. Trial for the above litigation commenced in April
2005. In May 2005, the jury in the state court case reached a
verdict in favor of Lakes and the other defendants. The jury in
the case found that there was no agreement with Smith relating
to the ongoing monthly payments for the percentage of management
fees. The jury also found that Smith was not entitled to
damages. As a result of the verdict against Smith, a second
phase of the trial, which would have sought to recover from
Lakes any damages awarded, will not be necessary. Smith filed a
Motion for a Partial Retrial on the issue of damages which was
denied automatically by operation of law. Smith failed to timely
file an appeal to the Texas Court of Appeals, so the judgement
has become final.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>El Dorado County, California Litigation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;3, 2003, El Dorado County filed an action in the
Superior Court of the State of California, seeking to prevent
the construction of a highway interchange that was approved by a
California state agency. The action, which was consolidated with
a similar action brought by Voices for Rural Living and others,
does not seek relief directly against Lakes. However, the
interchange is necessary to permit the construction of a casino
to be developed and managed by Lakes through a joint venture.
</DIV>

<P align="center" style="font-size: 10pt;">96

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The casino will be owned by the Shingle Springs Tribe. The
matter was tried to the court on August&nbsp;22, 2003. On
January&nbsp;2, 2004, Judge Lloyd G. Connelly, Judge of the
Superior Court for the State of California, issued his ruling on
the matter denying the petition in all respects except one. As
to the one exception, the court sought clarification as to
whether the transportation conformity determination used to
determine the significance of the air quality impact of the
interchange operations considered the impact on attainment of
the state ambient air quality standard for ozone. The California
Department of Transportation (CalTrans) prepared and filed the
clarification addendum sought by the court. Prior to the
court&#146;s determination of the adequacy of the clarification,
El Dorado County and Voices for Rural Living appealed Judge
Connelly&#146;s ruling to the California Court of Appeals on all
of the remaining issues.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A ruling with respect to the addendum was issued June&nbsp;21,
2004 by the Superior Court of California, County of Sacramento.
The ruling indicated that the addendum provided to the court by
CalTrans did not provide a quantitative showing to satisfy the
court&#146;s earlier request for a clarification on meeting the
state ambient ozone standard. The court recognized that the
information provided by CalTrans does qualitatively show that
the project may comply with the state standard, but concluded
that a quantitative analysis is necessary even though the court
recognized that the methodology for that analysis &#147;is not
readily apparent&#148;. In addition, the ruling specifically
stated, &#147;Moreover such methodology appears necessary for
the CEQA analysis of transportation projects throughout the
state, including transportation projects for which respondents
(i.e. CalTrans) have approval authority.&#148; CalTrans, the
Shingle Springs Tribe and Lakes responded to the court with a
revised submission in August 2004. Representatives of the
California Air Resources Board and the Sacramento Area Council
of Governments filed declarations supporting the revised
submission to the court. Opposition to that revised submission
was filed, a hearing on the revised submission took place on
August&nbsp;20, 2004, and the court again found the revised
submission of CalTrans, the Shingle Springs Tribe and Lakes to
be inadequate. That ruling has been separately appealed to the
California Court of Appeals (the &#147;Court&#148;) and oral
argument for these appeals and the appeals of El Dorado County
and Voices of Rural Living was held before the Court on
August&nbsp;29, 2005. The Court issued its decision on these
appeals on November&nbsp;8, 2005. The Court ruled in favor of
CalTrans&#146; appeal, rejecting the El Dorado County&#146;s
argument that the transportation conformity analysis did not
conform to state standards. The Court also rejected all but two
of the legal claims asserted in the appeal by El Dorado County
and Voices for Rural Living against the environmental impact
report (&#147;EIR&#148;) prepared by CalTrans for the
interchange that will connect Highway 50 to the Shingle Springs
Rancheria. For the remaining two issues, the Court held that
CalTrans must supplement its environmental analysis by adding
some discussion to the air quality chapter to further explain
the project&#146;s contribution to overall vehicular emissions
in the region, and that CalTrans also must evaluate whether a
smaller casino and hotel would reduce environmental impacts. The
Court acknowledged CalTrans lacks jurisdiction to require the
Tribe to develop a smaller casino, but nevertheless required
some discussion of this alternative in the interchange EIR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company has not recorded any liability for this matter as
management currently believes that the Courts&#146; rulings will
ultimately allow the project to commence. However, there can be
no assurance that the final outcome of this matter is not likely
to have a material adverse effect upon the Company&#146;s
consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Grand Casinos, Inc. Litigation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the establishment of Lakes as a public
corporation on December&nbsp;31, 1998, via a distribution of its
common stock to the shareholders of Grand Casinos, the Company
and Grand Casinos entered into an agreement governing the
sharing or allocation of tax benefits accruing to Grand Casinos
and certain affiliated companies of Grand Casinos. Lakes
asserted claims against Grand Casinos for amounts to which Lakes
believed it was entitled under the tax sharing agreement. On
December&nbsp;1, 2004, Lakes entered into a settlement agreement
with Grand Casinos and its parent company, Park Place
Entertainment Corporation (now known as Caesars Entertainment,
Inc.), pursuant to which Lakes received $11.3&nbsp;million in
December 2004 in satisfaction of its prior claim and its future
rights to the tax benefits that were the subject of
</DIV>

<P align="center" style="font-size: 10pt;">97

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
the dispute. Lakes will be required to provide reimbursement for
its share of the disallowed benefits. This settlement income has
been recorded as other income in the consolidated statement of
earnings (loss) for the year ended January&nbsp;2, 2005. Lakes
has not recorded any tax related to the settlement payment of
$11.3&nbsp;million, as Lakes believes this settlement is not
taxable to Lakes.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Louisiana Department of Revenue Litigation Tax
    Matter</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Louisiana Department of Revenue maintains a position that
Lakes owes additional Louisiana corporation income tax for the
period ended January&nbsp;3, 1999 and the tax years ended
December&nbsp;31, 1999 through December&nbsp;31, 2001 and
additional Louisiana corporation franchise tax for the tax years
ended December&nbsp;31, 2000 through December&nbsp;31, 2002.
This determination is the result of an audit of Louisiana tax
returns filed by Lakes for the tax periods at issue and relates
to the reporting of income earned by Lakes in connection with
the managing of two Louisiana-based casinos. On
December&nbsp;20, 2004, the Secretary of the Department of
Revenue of the State of Louisiana filed a petition to collect
taxes against Lakes in the 19th&nbsp;Judicial District Court,
East Baton Rouge Parish, Louisiana, Docket No.&nbsp;527596,
Section&nbsp;23. In the petition to collect taxes the Department
of Revenue of the State of Louisiana asserts that additional
corporation income tax and corporation franchise tax in the
amount of $8.6&nbsp;million, excluding interest, are due by
Lakes for the taxable periods set forth above. Lakes maintains
that it has remitted the proper Louisiana corporation income tax
and Louisiana corporation franchise tax for the taxable periods
at issue. On February&nbsp;14, 2005, Lakes filed an answer to
the petition to collect taxes asserting all proper defenses and
maintaining that no additional taxes are owed and that the
petition to collect taxes should be dismissed. Management
intends to vigorously contest this action by the Louisiana
Department of Revenue. However, Lakes may be required to pay up
to the $8.6&nbsp;million assessment plus interest if Lakes is
not successful in this matter. The Company has recorded a
reserve related to this examination which is reflected as part
of income taxes payable on the Company&#146;s consolidated
balance sheets.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Other Litigation</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes is involved in various other inquiries, administrative
proceedings, and litigation relating to contracts and other
matters arising in the normal course of business. While any
proceeding or litigation has an element of uncertainty,
management currently believes that the final outcome of these
matters, including matters discussed above, is not likely to
have a material adverse effect upon the Company&#146;s
consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>16.</B></TD>
    <TD>
    <B>Selected Quarterly Financial Information (Unaudited):</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Year ended January&nbsp;2, 2005 (in thousands, except per share
amounts):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>First</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Second</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Third</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>First</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Second</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Third</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fourth</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4,718</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,974</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,725</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Loss from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,735</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,147</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,639</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,100</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,841</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,039</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,636</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net earnings (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(760</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(392</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(7,158</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6,602</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,718</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,215</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,168</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Earnings (loss) per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.03</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.02</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.32</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.30</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.03</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.02</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.32</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.30</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.08</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.17</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">98

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Year ended December&nbsp;28, 2003 (in thousands, except per
share amounts):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>First</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Second</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Third</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fourth</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>First</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Second</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Third</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fourth</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Quarter</B></TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>As Previously</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 7pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Reported</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Restated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net revenues</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,954</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,954</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>377</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>387</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>387</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Earnings (loss) from operations</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,557</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,072</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,085</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,677</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,262</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,653</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3,201</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,384</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net earnings (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,327</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,021</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,302</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(919</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2,121</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(990</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Earnings (loss) per share:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Basic</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.06</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.06</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Diluted</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.06</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.05</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.04</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.06</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.11</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.04</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>17.</B></TD>
    <TD>
    <B>Related Party Transactions</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes, through its subsidiaries Lakes Jamul, Inc. and Lakes
Shingle Springs, Inc. respectively, advanced $0.97&nbsp;million
to each of KAR-California and KAR-Shingle Springs (the &#147;KAR
Entities&#148;) pursuant to promissory notes dated May&nbsp;25,
1999 and July&nbsp;29, 1999 (collectively, the &#147;1999
Notes&#148;). At the time, the KAR Entities held rights in
development and management contracts for the Jamul and Shingle
Springs casino projects. The loans were part of overall
transactions in which Lakes acquired interests in those casino
projects by entering into joint ventures with the KAR Entities.
Under the joint venture arrangements, Lakes and the KAR Entities
jointly formed the companies to develop the casinos
(&#147;Project Companies&#148;) and the KAR Entities assigned
their rights in the development and management contracts to the
Project Companies. As such, the business purpose for the loans
by Lakes was to acquire interests in the subject casinos
projects, as the loans were a condition to entering into the
joint ventures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;30, 2003, Lakes purchased the respective joint
venture interests of the KAR Entities. At the time of the
purchase, the KAR Entities owed Lakes $1.9&nbsp;million under
the 1999 Notes. As consideration for the purchase of the KAR
Entities&#146; partnership interest in Jamul and Shingle
Springs, Lakes forgave the amounts owed under the 1999 Notes of
$1.9&nbsp;million. Lakes recorded the $1.9&nbsp;million as part
of its long-term assets related to the Jamul and Shingle Springs
Indian casino projects described in Note&nbsp;1. In connection
with the purchase transactions, Lakes entered into separate
agreements with Kevin M. Kean and Jerry A. Argovitz, the two
individual owners of the KAR Entities. Under these agreements,
Lakes forgave the notes receivable from the KAR Entities,
subject to the agreements of Messrs.&nbsp;Kean and/or Argovitz
to assume the obligations under the notes in certain
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreement with Mr.&nbsp;Kean, Mr.&nbsp;Kean may elect
to serve as a consultant to Lakes during the term of each casino
management contract if he is found suitable by relevant gaming
regulatory authorities. In such event, Mr.&nbsp;Kean will be
entitled to receive annual consulting fees equal to 20% of the
management fees received by Lakes from the Jamul casino
operations and 15% of the management fees received by Lakes from
the Shingle Springs casino operations, less certain costs of
these operations. If Mr.&nbsp;Kean is found suitable by relevant
gaming regulatory authorities and elects to serve as a
consultant, he will be obligated to repay 50% of the notes
receivable from the KAR Entities. If Mr.&nbsp;Kean is not found
suitable by relevant gaming regulatory authorities or otherwise
elects not to serve as a consultant, he will be entitled to
receive annual payments of $1&nbsp;million from each of the
Jamul and Shingle Springs casino projects during the term of the
respective casino management contracts (but not during any
renewal term of such management contracts).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the agreement with Mr.&nbsp;Argovitz, if Mr.&nbsp;Argovitz
is found suitable by relevant gaming regulatory authorities, he
may elect to re-purchase his respective original equity interest
in the Lakes&#146; Subsidiaries and he will be entitled to
obtain a 20% equity interest in Lakes&#146; management contract
with the Jamul casino and a 15% equity interest in Lakes&#146;
management contract with the Shingle Springs casino. Upon
obtaining this
</DIV>

<P align="center" style="font-size: 10pt;">99

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
interest, Mr.&nbsp;Argovitz will become obligated to repay 50%
of the 1999 Notes. If he is not found suitable or does not elect
to purchase equity interests in the Lakes Subsidiaries,
Mr.&nbsp;Argovitz may elect to receive annual payments of
$1&nbsp;million from each of the Jamul and Shingle Springs
casino projects from the date of election through the term of
the respective casino management contracts (but not during any
renewal term of such management contracts).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the KAR Entities owe Lakes $1.3&nbsp;million and
$0.8&nbsp;million as of January&nbsp;2, 2005 and
December&nbsp;28, 2003, respectively. These amounts represent
the KAR Entities&#146; portion of non-reimbursed costs related
to the Jamul and Shingle Springs projects. The partners of the
KAR Entities will repay these amounts from future revenues
earned from the projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes guaranteed a loan of $2&nbsp;million to Kevin Kean and
received collateral, which included a subordinated interest in
Mr.&nbsp;Kean&#146;s personal residence and shares of common
stock. This guaranty was originally an obligation of Grand
Casinos, Inc. (Lakes&#146; predecessor) that was assumed by
Lakes in connection with its December&nbsp;31, 1998 spin-off
from Grand Casinos. In addition, Lakes received collateral from
Kevin Kean consisting of Mr.&nbsp;Kean&#146;s economic interest
in the Shingle Springs and Jamul projects of 15% and 20%,
respectively. In January 2001, Mr.&nbsp;Kean defaulted under the
loan. On March&nbsp;26, 2001 Lakes paid $2.2&nbsp;million in
full repayment of Mr.&nbsp;Kean&#146;s loan. In September 2001,
Lakes foreclosed on Mr.&nbsp;Kean&#146;s personal residence and
effected a sheriff&#146;s sale. As a result of these
transactions, the resulting net balance due from Mr.&nbsp;Kean
was approximately $1.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company determined that Mr.&nbsp;Kean&#146;s obligation to
Lakes is similar to a collateral dependent loan and that the
asset impairment assessment guidance in SFAS&nbsp;No.&nbsp;114
is appropriate. At the time of the default, the present value of
expected future cash flows of Mr.&nbsp;Kean&#146;s collateral
discounted for the inherent risks in those future cash flows
exceeded the amount of Mr.&nbsp;Kean&#146;s $1.8&nbsp;million
obligation. Therefore, no impairment was recorded at the time of
default.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company calculated the fair value of this collateral by
determining the present value of expected future cash flows of
Mr.&nbsp;Kean&#146;s collateral discounted for the inherent
risks in those future cash flows. This calculation resulted in a
fair value of the collateral, which exceeded
Mr.&nbsp;Kean&#146;s obligation of $1.8&nbsp;million as of
January&nbsp;2, 2005 and December&nbsp;28, 2003. Therefore, no
impairment has been recorded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes continues to monitor the collectibility of this note on a
quarterly basis and as of January&nbsp;2, 2005 and
December&nbsp;28, 2003 concluded that repayment was probable
based upon Mr.&nbsp;Kean&#146;s remaining economic interests in
the Jamul and Shingle Springs projects. Lakes also advanced
Mr.&nbsp;Kean $0.2&nbsp;million in 2004 as consideration for
assisting Lakes in obtaining and entering into development and
management contracts for new casino projects. These amounts are
included as part of Lakes&#146; long-term assets related to
Indian casino projects. The advances are evidenced by a loan,
which is secured by the future operations of certain casino
projects, which Mr.&nbsp;Kean is directly involved in. The
outstanding amount of this loan was $0.2&nbsp;million at
January&nbsp;2, 2005. Mr.&nbsp;Kean has agreed that 50% of the
consulting fees or other payments payable to him under the
agreements with Lakes and its subsidiaries shall be applied
toward repayment of his indebtedness to Lakes. In the event of a
default under the agreements, 100% of the fees and payments will
be applied toward repayment of his indebtedness to Lakes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, Lakes has an outstanding note from Kevin Kean of
$0.25&nbsp;million at January&nbsp;2, 2005 and December&nbsp;28,
2003, respectively. The majority of this note was repaid in
January 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes has entered into a license agreement with Sklansky Games,
LLC (&#147;Sklansky&#148;) pursuant to which Lakes is developing
a World Poker Tour No Limit Texas Hold&#145;Em casino table game
that uses certain of Sklansky&#146;s intellectual property
rights. Lakes had also entered into a license agreement with
WPTE pursuant to which Lakes has obtained a license to utilize
the World Poker Tour name and logo in connection with a casino
table game. Under the terms of this agreement, if Lakes elects
to proceed with its development of the casino table game, Lakes
will be required to pay WPTE a specified minimum annual royalty
payment of 10% of gross revenues, and Sklansky a specified
minimum annual royalty payment of 30% of the gross revenue
</DIV>

<P align="center" style="font-size: 10pt;">100

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Lakes receives from its sale or lease of the game. Also, Lakes,
through one of its wholly owned subsidiaries, holds an indirect
majority ownership in WPTE. Lyle Berman and his son, Bradley
Berman, own 28% and 44% equity interests in Sklansky,
respectively. Lyle Berman also serves as Chairman and Chief
Executive Officer of WPTE, and Bradley Berman is a member of
WPTE&#146;s Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective as of February&nbsp;24, 2004, WPTE entered into a
non-exclusive license agreement with G-III Apparel Group. Ltd.
(&#147;G-III&#148;). Morris Goldfarb, a Lakes director, is a
director, Co-Chairman of the Board and Chief Executive Officer
of G-III. Under the agreement, G-III licenses the World Poker
Tour name, logo and trademark from WPTE in connection with
G-III&#146;s production of certain types of apparel for
distribution in authorized channels within the United States,
its territories and possessions and in certain circumstances,
Canada. As consideration for this non-exclusive license, G-III
pays royalties and certain other fees to WPTE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE loaned Pokertek, a start-up manufacturer and distributor of
electronic poker tables, approximately $0.2&nbsp;million at an
annual interest rate equal to the lowest applicable federal
rate. In exchange for making the loan, WPTE will be repaid their
loan amount and received 15% of the common equity of the
company. Lyle and Bradley Berman then made personal investments
in Pokertek, and as of January&nbsp;2, 2005, held a combined
ownership of approximately three percent of Pokertek. Lyle
Berman agreed to serve as Chairman of the Board of Pokertek and
received 200,000 stock options in the company. Also see
Note&nbsp;20.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>18.</B></TD>
    <TD>
    <B>Segment Information</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes&#146; principal business is the development and management
of gaming-related properties. Additionally, the Company is the
majority owner of WPTE (see Note&nbsp;1). Substantially all of
Lakes&#146; and WPTE&#146;s operations are conducted in the
United States. Episodes of the World Poker series are
distributed internationally by a third party distributor.
Lakes&#146; segments reported below (in millions) are the
segments of the Company for which separate financial information
is available and for which operating results are evaluated by
the chief operating decision-maker in deciding how to allocate
resources and in assessing
</DIV>

<P align="center" style="font-size: 10pt;">101

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
performance. The amounts in Corporate and Eliminations below
have not been allocated to the other segments because these
costs are not easily allocable and to do so would not be
practical.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap><B>Industry Segments</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Indian Casino</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>World Poker</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Corporate&nbsp;&#38;</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Total</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Projects</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Tour</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Eliminations</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Consolidated</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2004</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>17.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net impairment charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>6.2</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating earnings (loss)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.7</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(10.2</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(12.9</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>127.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>37.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>44.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>209.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2003</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>4.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net impairment charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.0</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(6.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(3.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>118.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53.6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>174.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="17">&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    2002</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Revenue</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Net impairment charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Operating loss</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(0.3</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(2.1</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(14.0</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(16.4</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total assets</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>94.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.2</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>83.5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>178.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Depreciation expense</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.4</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0.5</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>19.</B></TD>
    <TD>
    <B>Net impairment Charges</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net impairment charges of $6.2&nbsp;million, $1.0&nbsp;million
and $9.1&nbsp;million were recognized during 2004, 2003 and
2002, respectively. The net impairment losses related to the
following (in thousands):
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="68%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2003</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>2002</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Long-term assets related to the Nipmuc Nation Indian casino
    project (see Note&nbsp;5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5,832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sale of land in Las Vegas (see Note&nbsp;7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(1,000</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Sale of land in Las Vegas (see Note&nbsp;8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD align="left" valign="bottom" nowrap>**</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Other</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>(588</TD>
    <TD align="left" valign="bottom" nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Write-off of notes receivable from Living Benefits Financial
    Services*</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Net Impairment Charges</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>6,244</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>1,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>9,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="1%"></TD>
    <TD width="2%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>*&nbsp;</TD>
    <TD align="left">
    In 2002, Lakes wrote-off the $4&nbsp;million note receivable
    from Living Benefits Financial Services as management determined
    the note was not likely to be collected due to increased
    competition in the Viatical business and restrictions on ability
    to make further policy acquisitions.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    In 2002, Lakes recorded an impairment charge of
    $1.0&nbsp;million related to Shark Club property held in Las
    Vegas, Nevada, which was ultimately sold in 2003 at its adjusted
    carrying value. Additionally $3&nbsp;million related to the
    write-down of the carrying values of the Polo Plaza and
    Travelodge properties in Las Vegas.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">102

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    The Company contracted to sell these properties to Metroflag.
    The impairment charges were related to the re-negotiation of the
    payment amounts and terms.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="5%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD><B>20.</B></TD>
    <TD>
    <B>Subsequent Events</B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On January&nbsp;12, 2005, Lakes, through its wholly-owned
subsidiary, entered into three gaming development consulting
agreements and management contracts with three wholly-owned
subsidiaries of the Pawnee Tribal Development Corporation
(&#147;Pawnee TDC&#148; referred to collectively as the
&#147;Pawnee Nation&#148;), a federally recognized Indian Tribe.
The Company will provide consulting and development services to
assist the Pawnee Nation in developing and equipping three
separate casino destinations in Oklahoma including:
1)&nbsp;development of a casino and ancillary amenities and
facilities in northern Oklahoma near the Kansas border (the
&#147;Chilocco Project&#148;); 2)&nbsp;expansion of the Pawnee
Nation&#146;s existing travel plaza at the intersection of
U.S.&nbsp;Highway 412 and State Highway&nbsp;18, approximately
25 miles from Stillwater, Oklahoma (the &#147;Travel
Plaza&#148;); and 3)&nbsp;operational consulting (with the
possibility of expansion) in conjunction with the Pawnee
Nation&#146;s existing casino facility, currently operating
approximately 65 gaming devices along with a retail convenience
store and gas station in Pawnee, Oklahoma (the &#147;Trading
Post&#148;). The Company will also provide management services
for the Pawnee Nation&#146;s casino operations at each location
subject to regulatory approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In February 2005, Lakes received gaming site approval by the
Mississippi Gaming Commission with respect to its proposed
casino location in Vicksburg, Mississippi. Lakes plans to
develop the project on an approximately 160&nbsp;acre site on
the Mississippi River, located on Magnolia Road in Vicksburg,
Warren County, Mississippi, for which Lakes holds land purchase
options. In connection with the planned development of the
casino, Lakes has recorded $0.2&nbsp;million related to land
options, which are carried on the consolidated balance sheet in
other long-term assets. During July 2005, Lakes received
approval from the Mississippi Gaming Commission of its
development plan for an approximately $225&nbsp;million gaming
project to be built on this site.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On March&nbsp;15, 2005, the Company, through its wholly-owned
subsidiaries, entered into consulting agreements and management
contracts with the Iowa Tribe of Oklahoma, a federally
recognized Indian Tribe and the Iowa Tribe of Oklahoma, a
federally-chartered corporation (collectively, the &#147;Iowa
Tribe&#148;). The agreements are effective as of
January&nbsp;27, 2005. The Company will provide consulting
services to assist the Iowa Tribe with two separate casino
destinations in Oklahoma including (i)&nbsp;assisting in
developing a new casino and ancillary amenities and facilities
to be located on Indian land approximately 25&nbsp;miles
northeast of Oklahoma City along Route 66; and
(ii)&nbsp;assisting with operational efforts at the Iowa
Tribe&#146;s existing Cimarron Casino, located in Perkins
Oklahoma. The Company will also provide management services for
the Iowa Tribe&#146;s casino operations at each location subject
to regulatory approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2005, Lakes entered into a development agreement, with
an independent third party for the development of an
&#147;Automated System For Playing Live Casino Table
Games.&#148; Under the terms of the agreement Lakes is required
to fund up to $0.5&nbsp;million for the development of the game.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Lakes entered into consulting agreements and management
contracts with the Kickapoo Traditional Tribe of Texas (the
&#147;Kickapoo Tribe&#148;) effective January 2005 to improve
the performance of the gaming operations conducted at the
Kickapoo Tribe&#146;s existing Lucky Eagle Casino in Eagle Pass,
Texas, located approximately 140&nbsp;miles southwest of
San&nbsp;Antonio. In November 2005, Lakes and the Kickapoo Tribe
terminated their business relationship. As of November&nbsp;15,
2005, Lakes had advanced approximately $1.4&nbsp;million to the
Kickapoo Tribe. Additionally, unpaid invoices related to the
project total approximately $4&nbsp;million, some or all of
which Lakes may be required to pay. As a result of the
terminated business relationship with the Kickapoo Tribe, Lakes
intends to negotiate with the Kickapoo Tribe to reach an
agreement to resolve all of the financial terms of the contracts
including repayment of the advances and payment of the unpaid
invoices, and to formally terminate the gaming operations
consulting agreement, management contract, and related ancillary
agreements relating to the project.
</DIV>

<P align="center" style="font-size: 10pt;">103

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<DIV align="center" style="font-size: 10pt;">
<B>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
At October&nbsp;2, 2005, WPTE had a nominal investment,
consisting of a 15% ownership interest in (carried at cost), and
a loan receivable from PokerTek, a company that offers an
electronic poker table called the PokerPro system that provides
a fully automated poker room environment to tribal and
commercial casinos and card clubs. On October&nbsp;14, 2005,
PokerTek announced a public offering of 2,000,000&nbsp;shares of
common stock at a price of $11&nbsp;per share. Concurrently with
the public offering, WPTE&#146;s ownership interest was diluted
to 11.7% (1,080,000&nbsp;shares), and PokerTek repaid WPTE the
outstanding loan amount at its maturity value of $185,000.
WPTE&#146;s shares in PokerTek are restricted, thus prohibiting
any sale of such shares in the market for six months.
Nevertheless, in accordance with Statement of Financial
Accounting Standards (SFAS)&nbsp;No.&nbsp;115, <I>Accounting for
Certain Investments in Debt and Equity Securities</I>, WPTE will
adjust its investment to fair market value and classify it as
&#147;available for sale&#148; in the fourth quarter of 2005,
since WPTE does not expect to have any cash needs or plans to
sell these shares in the foreseeable future. Accordingly, WPTE
will record net unrealized gains and losses from this investment
in a separate component of shareholder&#146;s equity
(<I>i.e.</I> within the &#147;accumulated other comprehensive
earnings&#148; line item in the stockholders&#146; equity
section of the balance sheet) beginning in the fourth quarter of
2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;19, 2005, WPTE filed suit in the California
Superior Court seeking to keep the Travel Channel from
interfering with WPTE&#146;s prospective contractual
relationship with third party networks in connection with the
sale of the broadcast rights to the Professional Poker Tour
(&#147;PPT&#148;), and to clarify and enforce WPTE&#146;s rights
with respect to the WPT. Under WPTE&#146;s existing agreement
with TRV for the World Poker Tour program (the &#147;WPT
Agreements&#148;), TRV is afforded the right to negotiate
exclusively with WPTE with respect to certain types of
programming developed by WPTE during a 60&nbsp;day period.
Pursuant to the WPT Agreements, WPTE submitted the PPT to TRV
and began negotiations but failed to reach an agreement with TRV
within the allotted negotiation window. Consequently, WPTE began
discussions with other networks. While WPTE later revived its
attempts to reach a deal with TRV after TRV&#146;s exclusive
bargaining window had ended, WPTE ultimately received an offer
from ESPN. WPTE submitted this offer to TRV pursuant to
TRV&#146;s contractual last right to match the deal as specified
under the WPT Agreements. Thereafter, TRV sent letters to WPTE
and ESPN asserting, among other things, that WPTE was not
entitled to complete a deal for the PPT with a third party.
Following TRV&#146;s letters, WPTE filed suit on
September&nbsp;19, 2005, alleging that TRV breached the WPT
Agreements and interfered with WPTE&#146;s prospective
contractual relationship with ESPN, and seeking a judicial
declaration of WPTE&#146;s rights under the WPT Agreements to
produce non-World Poker Tour branded programs covering poker
tournaments. Subsequent to WPTE filing, ESPN withdrew its offer
to WPTE to acquire the broadcast rights to the PPT. On
September&nbsp;22, 2005, TRV and Discovery Communications, Inc.
filed an answer and cross-complaint and subsequently filed a
motion for judgment on the pleadings and an
&#147;anti-SLAPP&#148; motion, both of which were denied on
November&nbsp;10, 2005. Despite WPTE&#146;s dispute with TRV,
WPTE remains committed to fulfilling its obligations to TRV in
connection with the World Poker Tour series.
</DIV>

<P align="center" style="font-size: 10pt;">104

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;9.</B></TD>
    <TD>
    <B><I>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deloitte&nbsp;&#38; Touche LLP (&#147;Deloitte&#148;) has been
serving as our independent registered public accounting firm. On
June&nbsp;30, 2005 Deloitte advised Lakes that Deloitte will
decline to stand for reappointment as Lakes&#146; independent
registered public accounting firm for fiscal 2005, and that, as
a result, our client-auditor relationship with Deloitte will
cease upon completion of the audit of our consolidated financial
statements for fiscal 2004 and the filing of our Annual Report
on Form&nbsp;10-K for fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reports of Deloitte on our consolidated financial statements
for each of fiscal 2004, 2003 and 2002 did not contain an
adverse opinion or disclaimer of opinion, nor were such
consolidated financial statements qualified or modified as to
uncertainty, audit scope or accounting principles. The report of
Deloitte on internal control over financial reporting as of
January&nbsp;2, 2005, contained adverse opinions regarding
Lakes&#146; internal control over financial reporting and
management&#146;s assessment of internal control over financial
reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal 2004 and fiscal 2003, and through
November&nbsp;30, 2005, there were (i)&nbsp;no disagreements
with Deloitte on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or
procedure which, if not resolved to the satisfaction of
Deloitte, would have caused Deloitte to make reference to the
subject matter in connection with their opinion on our
consolidated financial statements for such years; and
(ii)&nbsp;there were no reportable events as defined in
Item&nbsp;304(a)(1)(v) of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deloitte had previously resigned as the independent public
accounting firm for Lakes&#146; consolidated subsidiary, WPTE.
WPTE&#146;s business represents a significant portion of
Lakes&#146; consolidated operations, therefore Deloitte advised
Lakes that Deloitte would not stand for reappointment as
Lakes&#146; independent public accounting firm. Deloitte&#146;s
decision to resign as WPTE&#146;s independent public accounting
firm resulted from WPTE&#146;s involvement in an online gaming
venture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On September&nbsp;13, 2005, the Audit Committee of the Board of
Directors of Lakes engaged Piercy Bowler Taylor&nbsp;&#38; Kern
(&#147;PBTK&#148;)&nbsp;to audit Lakes&#146; consolidated
financial statements for the 2005 fiscal year. During
Lakes&#146; two most recent fiscal years Lakes (i)&nbsp;did not
engage PBTK to act as either the principal accountant to audit
the Company&#146;s financial statements or as an independent
accountant to audit a significant subsidiary of the Company,
(ii)&nbsp;did not consult with PBTK on the application of
accounting principles to a specified transaction, either
completed or proposed or the type of audit opinion that might be
rendered on the Company&#146;s financial statements within the
meaning of Item&nbsp;304(a)(2)(i) of Regulation&nbsp;S-K; and
(iii)&nbsp;did not consult with PBTK on any matter that was
either the subject of a disagreement, as that term is defined in
Item&nbsp;304(a)(1)(iv) of Regulation&nbsp;S-K and the related
instruction to Item&nbsp;304 of Regulation&nbsp;S-K, or a
reportable event, as that term is defined in
Item&nbsp;304(a)(1)(v) of Regulation&nbsp;S-K.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;9A.</B></TD>
    <TD>
    <B><I>CONTROLS AND PROCEDURES</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Disclosure Controls and Procedures</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the supervision and with the participation of our
management, including our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of our disclosure
controls and procedures, as such term is defined under
Rules&nbsp;13a-15(e) or 15d-15(e) promulgated under the
Securities Exchange Act of 1934, as amended (the &#147;Exchange
Act&#148;), as of the end of the period covered by this report.
Based on this evaluation, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and
procedures are effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Management&#146;s Annual Report on Internal Control over
Financial Reporting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our management is responsible for establishing and maintaining
adequate internal control over financial reporting (as defined
in Rules&nbsp;13a-15(f) and 15d&nbsp;&#151; 5(f) under the
Exchange Act). Our management assessed the effectiveness of our
internal control over financial reporting as of January&nbsp;2,
2005. In making this assessment, our management used the
criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (&#147;COSO&#148;) in Internal
Control-Integrated Framework. Our management has concluded that,
as of January&nbsp;2, 2005, our internal control over financial
reporting is effective based on these
</DIV>

<P align="center" style="font-size: 10pt;">105
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<DIV align="left" style="font-size: 10pt;">
criteria. Deloitte&nbsp;&#38; Touche, LLP, the independent
registered public accounting firm that audited the consolidated
financial statements included in this Annual Report on
Form&nbsp;10-K has issued an attestation
</DIV>

<P align="center" style="font-size: 10pt;">105.1
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<DIV align="left" style="font-size: 10pt;">
report on management&#146;s assessment of our internal control
over financial reporting, which is included in this Annual
Report on Form&nbsp;10-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our management, including our Chief Executive Officer and Chief
Financial Officer, does not expect that our internal control
over financial reporting will prevent all error and all fraud. A
control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of
a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in
all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of
fraud, if any, within Lakes have been detected. Lakes&#146;
internal control over financial reporting, however, are designed
to provide reasonable assurance that the objectives of internal
control over financial reporting are met.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Changes in Internal Control Over Financial Reporting</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There were no changes in our internal control over financial
reporting during our most recently-completed fiscal quarter (the
fourth quarter of fiscal 2004) that have materially affected, or
are reasonably likely to materially affect, our internal
controls over financial reporting.
</DIV>

<P align="center" style="font-size: 10pt;">106

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
To the Board of Directors and Shareholders of Lakes
Entertainment, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt;">
Minnetonka, Minnesota
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have audited management&#146;s assessment, included in the
accompanying Management&#146;s Annual Report on Internal Control
over Financial Reporting, that Lakes Entertainment, Inc. and
subsidiaries (the &#147;Company&#148;) maintained effective
internal control over financial reporting as of January&nbsp;2,
2005, based on criteria established in <I>Internal
Control&nbsp;&#151; Integrated Framework </I>issued by the
Committee of Sponsoring Organizations of the Treadway
Commission. The Company&#146;s management is responsible for
maintaining effective internal control over financial reporting
and for its assessment of the effectiveness of internal control
over financial reporting. Our responsibility is to express an
opinion on management&#146;s assessment and an opinion on the
effectiveness of the Company&#146;s internal control over
financial reporting based on our audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control
over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of
internal control over financial reporting, evaluating
management&#146;s assessment, testing and evaluating the design
and operating effectiveness of internal control, and performing
such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable
basis for our opinions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A company&#146;s internal control over financial reporting is a
process designed by, or under the supervision of, the
company&#146;s principal executive and principal financial
officers, or persons performing similar functions, and effected
by the company&#146;s board of directors, management, and other
personnel to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. A company&#146;s
internal control over financial reporting includes those
policies and procedures that (1)&nbsp;pertain to the maintenance
of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the
company; (2)&nbsp;provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company
are being made only in accordance with authorizations of
management and directors of the company; and (3)&nbsp;provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the
company&#146;s assets that could have a material effect on the
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because of the inherent limitations of internal control over
financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements
due to error or fraud may not be prevented or detected on a
timely basis. Also, projections of any evaluation of the
effectiveness of the internal control over financial reporting
to future periods are subject to the risk that the controls may
become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may
deteriorate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A material weakness is a significant deficiency, or combination
of significant deficiencies, that results in more than a remote
likelihood that a material misstatement of the annual or interim
financial statements will not be prevented or detected. We have
identified the following material weakness that has not been
identified as a material weakness in management&#146;s
assessment:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There were ineffective control procedures to identify the
appropriate application of complex accounting standards to its
contractual relationships with Indian tribes. As a result of
this material weakness, material adjustments were necessary to
present the 2004 financial statements in accordance with
generally accepted accounting principles. This material weakness
also resulted in the restatement of the 2003 and 2002
consolidated financial statements as described more fully in
Note&nbsp;2 to the accompanying consolidated financial
statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This material weakness was considered in determining the nature,
timing, and extent of audit tests applied in our audit of the
consolidated financial statements as of and for the year ended
January&nbsp;2, 2005, of the Company and this report does not
affect our report on such financial statements.
</DIV>

<P align="center" style="font-size: 10pt;">107

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In our opinion, because of the omission of the material weakness
described above from management&#146;s assessment,
management&#146;s assessment that the Company maintained
effective internal control over financial reporting as of
January&nbsp;2, 2005, is not fairly stated, in all material
respects, based on the criteria established in <I>Internal
Control&nbsp;&#151; Integrated Framework </I>issued by the
Committee of Sponsoring Organizations of the Treadway
Commission. Also in our opinion, because of the effect of the
material weakness described above on the achievement of the
objectives of the control criteria, the Company has not
maintained, in all material respects, effective internal control
over financial reporting as of January&nbsp;2, 2005, based on
the criteria established in <I>Internal Control&nbsp;&#151;
Integrated Framework </I>issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
consolidated financial statements as of and for the year ended
January&nbsp;2, 2005, of the Company and our report dated
November&nbsp;30, 2005 expressed an unqualified opinion on those
consolidated financial statements.
</DIV>

<DIV style="margin-top: 17pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    DELOITTE&nbsp;&#38; TOUCHE LLP</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Minneapolis, Minnesota
</DIV>

<DIV align="left" style="font-size: 10pt;">
November&nbsp;30, 2005
</DIV>

<P align="center" style="font-size: 10pt;">108

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM 9B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>
    <B><I>OTHER INFORMATION</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;III</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;10.</B></TD>
    <TD>
    <B><I>DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIRECTORS OF LAKES ENTERTAINMENT, INC.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our Board of Directors currently consists of six
(6)&nbsp;directors. The names and ages of our directors as of
January&nbsp;2, 2005, and their principal occupations and tenure
as directors, which are set forth below, are based upon
information furnished to us by each director.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name and Age of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Director and/or</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Occupation, Business Experience</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Nominee</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>for Past Five Years and Directorships of Public Companies</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Since</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    Lyle Berman<BR>
    Age&nbsp;63</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman of the Board and Chief Executive Officer of Lakes
    Entertainment, Inc. since January 1999 and Chairman of the Board
    of Directors of Grand Casinos, Inc. (the predecessor to Lakes
    Entertainment) from October 1991 through December of 1998.
    Mr.&nbsp;Berman served as President of Lakes Entertainment from
    November 1999 until May 2003. Mr.&nbsp;Berman has also served as
    the Chairman of the Board of WPT Enterprises, Inc., a company in
    which Lakes Entertainment owns a majority interest, since its
    inception in February 2002, and had served as its Chief
    Executive Officer from February&nbsp;25, 2004 until
    April&nbsp;1, 2005. Mr.&nbsp;Berman is also Chairman of the
    Board of PokerTek, Inc. since January 2005 and Mr.&nbsp;Berman
    served as Chief Executive Officer of Rainforest Cafe, Inc. from
    February 1993 until December 2000.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    Timothy J. Cope<BR>
    Age&nbsp;53</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President of Lakes Entertainment, Inc. since May&nbsp;12, 2003
    and Chief Financial Officer, Treasurer, Secretary, and a
    director of Lakes Entertainment since June 1998. Mr.&nbsp;Cope
    also serves as a director of WPT Enterprises, Inc. Mr.&nbsp;Cope
    served as an Executive Vice President of Lakes Entertainment
    from June 1998 until May&nbsp;11, 2003.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    Morris Goldfarb<BR>
    Age&nbsp;54</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Lakes Entertainment, Inc. since June 1998.
    Mr.&nbsp;Goldfarb is a director, Chairman of the Board, and
    Chief Executive Officer of G-III Apparel Group Ltd.
    Mr.&nbsp;Goldfarb has served as either the President or Vice
    President of G-III and its predecessors since its formation in
    1974. Mr.&nbsp;Goldfarb is President and a director of The
    Leather Apparel Association, a non-profit leather trade
    association.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1998</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    Ronald J. Kramer<BR>
    Age&nbsp;46</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Lakes Entertainment, Inc. since June 1998.
    Mr.&nbsp;Kramer is President of Wynn Resorts and has been
    employed in that capacity since April 2002. Mr.&nbsp;Kramer
    previously served as a Managing Director at the investment
    banking firm of Dresdner Kleinwort Wasserstein beginning in July
    1999. Mr.&nbsp;Kramer is also a director of Wynn Resorts, Ltd.,
    Griffon Corporation, a publicly held manufacturing company, New
    Valley Corporation Limited, a publicly held real estate company,
    and Monster Worldwide Inc., a publicly held company of a leading
    on-line careers subsidiary and owner of one of the world&#146;s
    largest recruitment advertising agency networks.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1998</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">109

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<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="17%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name and Age of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Director and/or</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Principal Occupation, Business Experience</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Director</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="center" nowrap><B>Nominee</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>for Past Five Years and Directorships of Public Companies</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Since</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    Ray Moberg<BR>
    Age&nbsp;56</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Lakes Entertainment, Inc. since December 2003.
    Mr.&nbsp;Moberg retired from Ernst&nbsp;&#38; Young in 2003
    after serving for 33&nbsp;years, including as managing partner
    of its Reno office from 1987 until his retirement.
    Mr.&nbsp;Moberg also serves as a director of WPT Enterprises,
    Inc.&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2003</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="7">&nbsp;</TD>
</TR>

<TR>
    <TD align="center" valign="top">
    Neil I. Sell<BR>
    Age&nbsp;63</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Director of Lakes Entertainment, Inc. since June 1998. Since
    1968, Mr.&nbsp;Sell has been engaged in the practice of law in
    Minneapolis, Minnesota with the firm of Maslon Edelman
    Borman&nbsp;&#38; Brand, LLP, which has rendered legal services
    to Lakes Entertainment.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>1998</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXECUTIVE OFFICERS OF LAKES ENTERTAINMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our executive officers as of January&nbsp;2, 2005 are:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="43%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Age</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Position(s) with Lakes Entertainment</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyle Berman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    See &#147;Directors of Lakes Entertainment,
    Inc.&#148;&nbsp;&#151; above.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Timothy J. Cope</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    See &#147;Directors of Lakes Entertainment,
    Inc.&#148;&nbsp;&#151; above.</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Joseph Galvin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice President since January 1999. Mr.&nbsp;Galvin
    previously served as Chief Operating Officer of Lakes from
    January 1999 to January 2005, and Chief Administrative Officer
    of Grand Casinos, Inc. from November 1996 through December 1998,
    and, prior thereto, Vice President of Security of Grand.
    Mr.&nbsp;Galvin passed away in September 2005.</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>AUDIT COMMITTEE OF THE BOARD OF DIRECTORS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has a three-member separately designated
standing audit committee established in accordance with
Section&nbsp;3(a)(58)(A) of the Exchange Act that consists of
Messrs.&nbsp;Morris Goldfarb, Ronald J. Kramer and Ray Moberg,
who is the chairperson of the audit committee. The audit
committee operates under a written charter adopted by the Board
of Directors, which charter was attached as Appendix&nbsp;C to
the proxy statement for our Annual Meeting of Shareholders held
June&nbsp;11, 2003. The primary functions of the audit committee
are (i)&nbsp;to serve as an independent and objective party to
monitor our financial reporting process and internal control
system, (ii)&nbsp;to review and appraise the audit efforts of
our independent auditors, and (iii)&nbsp;to provide an open
avenue of communication among the independent auditors,
financial and senior management and the Board of Directors. The
charter also requires that the audit committee (or designated
members of the audit committee) review and pre-approve the
performance of all audit and non-audit accounting services to be
performed by our independent auditors, other than certain
de&nbsp;minimus exceptions permitted by Section&nbsp;202 of the
Sarbanes-Oxley Act of 2002. The Board of Directors has
determined that at least one member of the audit committee, Ray
Moberg, is an &#147;audit committee financial expert&#148; as
that term is defined in Item&nbsp;401(h)(2) of
Regulation&nbsp;S-K promulgated under the Exchange Act, as
amended. In addition, each member of the audit committee
satisfies the audit committee independence standard under
Rule&nbsp;10A-3(b)(1) of the Exchange Act and the definition of
&#147;independence&#148; set forth in the NASDAQ Marketplace
Rules. The Board of Directors has also determined that each of
the audit committee members is able to read and understand
fundamental financial statements and that at least one member of
the audit committee has past employment experience in finance or
accounting.
</DIV>

<P align="center" style="font-size: 10pt;">110

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SECTION&nbsp;16(a) BENEFICIAL REPORTING COMPLIANCE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;16(a) of the Exchange Act requires our officers and
directors, and persons who own more than ten percent of a
registered class of our equity securities, to file reports of
ownership and changes in ownership with the SEC and while
Lakes&#146; common stock was listed on The Nasdaq Stock Market,
with the NASDAQ National Market. Officers, directors and greater
than ten percent shareholders are required by SEC regulation to
furnish us with copies of all Section&nbsp;16(a) forms they file.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based solely upon a review of the copies of such forms furnished
to us and other information available to us, we believe that
each of Lyle Berman and Timothy J. Cope failed to timely file a
Form&nbsp;4 to report a grant of options in January 2004 and
Morris Goldberg failed to timely file three Forms&nbsp;4 to
report transactions in May 2004 and September 2004 and a grant
of options in January 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CODE OF CONDUCT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have adopted a code of ethics that applies to our principal
executive, financial and accounting officers and persons
performing similar functions. Upon request, we will deliver a
copy of this code of ethics free of charge. Requests for a copy
of this code of ethics should be submitted in writing to our
Secretary at our headquarters address; 130 Cheshire Lane,
Suite&nbsp;101, Minnetonka, Minnesota 55305.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;11.</B></TD>
    <TD>
    <B><I>EXECUTIVE COMPENSATION</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the cash and non-cash
compensation for each of the last three fiscal years awarded to
or earned by (i)&nbsp;each individual that served as our Chief
Executive Officer during fiscal 2004; and (ii)&nbsp;each
individual who served as an executive officer at the end of
fiscal 2004 who received in excess of $100,000 in salary and
bonus during fiscal 2004 (the Chief Executive Officer and the
other executive officers are collectively referred to herein as
the &#147;Named Executive Officers&#148;.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Summary Compensation Table</B>
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap><B>Annual Compensation</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="10" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Other Annual</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>All Other</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Name and Principal Position</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Year</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Salary ($)(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Bonus ($)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation ($)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation ($)(3)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyle Berman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>133,500</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,942</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Chairman, Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>151,100</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,742</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD><FONT style="font-size: 10pt">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>116,100</TD>
    <TD align="left" valign="bottom" nowrap>(2)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,707</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Timothy J. Cope</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,061</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President, Chief Financial Officer,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>100,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,861</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Treasurer and Secretary</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>50,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,813</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Joseph Galvin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>10,011</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Executive Vice</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2003</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,811</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>225,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>9,775</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes cash compensation deferred at the election of the
    executive officer under the terms of the Company&#146;s 401(k)
    Savings Incentive Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Amount represents the variable cost to the Company arising from
    Mr.&nbsp;Berman&#146;s personal use of the Company&#146;s
    corporate jet for the period from July&nbsp;1 to
    December&nbsp;31 of 2002, 2003 or 2004, as applicable. The
    amounts reflect a change in valuation methodology from prior
    years in which the cost of the personal use of the corporate jet
    had been calculated using the Standard Industrial Fare Level
    (SIFL)&nbsp;tables found in the tax regulations.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Amounts shown in this column represent matching contributions by
    the Company under the Company&#146;s 401(k) Savings Incentive
    Plan and payment by the Company of term life insurance premiums.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">111

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Aggregated Option Exercises in the Last Fiscal Year And</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>Fiscal Year End Option Values</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes information with respect to
options held by the Named Executive Officers, and the value of
the options held by such persons at the end of fiscal 2004. All
numbers reflect a 2-for-1 split of our common stock, effective
as of May&nbsp;3, 2004.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="24%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Number of Securities</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Value of Unexercised</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Underlying Unexercised</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>In-the-Money</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Options at FY-End (#)(1)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap><B>Options at FY-End ($)(1)</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Acquired on</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Value</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise (#)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Realized ($)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unexercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercisable</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Unexercisable</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyle Berman</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,600,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>18,229,050</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,448,750</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Timothy J. Cope</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>510,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>150,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,893,124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,224,375</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Joseph Galvin</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>2,362,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>183,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>75,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,983,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>612,187</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    The closing sale price of the Company&#146;s common stock on
    December&nbsp;31, 2004, the last trading day prior to the end of
    the Company&#146;s fiscal year, was $16.29.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EMPLOYMENT AGREEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Effective February&nbsp;21, 2002, we entered into an executive
employment agreement for an indefinite term with each of Timothy
J. Cope, our President, Chief Financial Officer, Treasurer, and
Secretary, and Joseph Galvin, our Executive Vice President, each
subject to early termination by either party for any reason or
no reason. The employment agreements provide for annual base
salaries of $250,000 and $225,000 to Messrs.&nbsp;Cope and
Galvin, respectively, or such higher amount as determined by our
Board of Directors. In addition, we pay each executive an
additional $600&nbsp;per month to cover travel and other
expenses and provide the executives with customary benefits. The
employment agreements provide that if we terminate either
executive without &#147;cause&#148; or if either executive
resigns for &#147;good reason,&#148; such executive will
continue to receive his base salary and the two-year average of
his bonus/incentive compensation for a period of twelve months.
If such termination occurs within two years following a
&#147;change of control,&#148; as defined in the employment
agreements, the executive will instead be entitled to a lump-sum
severance payment equal to twice his annual base salary and
bonus/incentive compensation along with insurance costs, 401k
matching contributions and certain other benefits. In either
case, all options to purchase shares of our common stock held by
the executive at the time of his termination will immediately
vest in their entirety and remain exercisable for a period of
two years thereafter. The employment agreements provide that
neither executive will compete with us for two years after the
termination of his employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We have not entered into employment agreements with any of our
other Named Executive Officers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>DIRECTOR COMPENSATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We pay an annual fee of $24,000 to each of our directors who is
not otherwise employed by us or our subsidiaries (a
&#147;Non-Employee Director&#148;). We also pay each
Non-Employee Director a fee of $1,000 for each meeting of the
Board of Directors attended and $1,000 for each committee
meeting of the Board of Directors attended. We also pay the
Chairman of our Audit Committee an additional annual fee of
$3,000 for serving in such capacity. In February 2005, the
director compensation annual fee was increased to $50,000 and
the Chairman of our Audit Committee annual fee increased to
$10,000. On February&nbsp;15, 2005, the Board of Directors
granted options to purchase&nbsp;10,000&nbsp;shares of common
stock to each of the four non-employee directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition, the Lakes Entertainment, Inc. 1998&nbsp;Director
Stock Option Plan (the &#147;Director Plan&#148;) provides that
each Non-Employee Director who was in office at the time of our
inception, and each subsequent Non-Employee Director at the time
of his or her initial election to the Board of Directors,
receives a non-qualified stock option to purchase up to
25,000&nbsp;shares of our common stock at an option exercise
price equal to the fair market value of the shares on the grant
date. Each option will have a ten-year term and will
</DIV>

<P align="center" style="font-size: 10pt;">112

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<DIV align="left" style="font-size: 10pt;">
generally become exercisable in four or five equal installments
commencing on the first anniversary of the grant date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the initial option grants, Non-Employee Directors
may be granted, at the discretion of the Board of Directors,
additional options to purchase our common stock. These
additional options, if granted, will contain such terms and
provisions as the Board of Directors determines at the time of
the grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During fiscal 2004 options were granted to the following
Non-Employee Directors:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="57%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Date Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B># of Shares</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Granted</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Price</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Morris Goldfarb</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>01/01/2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.1275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ronald J. Kramer</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>01/01/2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.1275</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Neil I. Sell</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>01/01/2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>20,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>8.1275</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All of the options granted to Non-Employee Directors in fiscal
2004 are currently vested as to 5,000&nbsp;shares, with the
option vesting for an additional 5,000&nbsp;shares on each of
January&nbsp;1, 2006, January&nbsp;1, 2007 and January&nbsp;1,
2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Members of the Board who are also employees of the Company
receive no stock options or performance shares for their
services as directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Compensation Committee Interlocks and Insider
Participation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Morris Goldfarb and Ronald J. Kramer served as the members of
the Compensation Committee for fiscal year 2004. There are no
relationships among members of the compensation committee,
members of the Board of Directors or executive officers of Lakes
that require disclosure under Item&nbsp;402(j) of
Regulation&nbsp;S-K promulgated under the Exchange Act.
</DIV>

<P align="center" style="font-size: 10pt;">113

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<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;12.</B></TD>
    <TD>
    <B><I>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED STOCKHOLDER MATTERS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth, as of October&nbsp;17, 2005,
certain information regarding the beneficial ownership of our
common stock by (i)&nbsp;all persons known by us to be the owner
(or deemed to be the owner pursuant to the rules and regulations
of the SEC), of record or beneficially, of more than 5% of our
outstanding common stock, (ii)&nbsp;each of the directors,
(iii)&nbsp;each Named Executive Officer, and (iv)&nbsp;all
directors and executive officers as a group, in each case based
upon beneficial ownership reporting of our common stock as of
such date. Except as otherwise indicated, the address of each
shareholder is 130 Cheshire Lane, Minnetonka, Minnesota 55305,
and each shareholder has sole voting and investment power with
respect to the shares beneficially owned.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Shares of Common</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Percentage of Common</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD align="left" nowrap><B>Name and Address</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Beneficially Owned</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Stock Outstanding</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Lyle Berman(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,144,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>21.5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Timothy J. Cope(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>520,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2.3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Estate of Joseph Galvin(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>255,004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1.1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Morris Goldfarb(4)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>152,660</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ronald J. Kramer(5)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>29,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Ray M. Moberg(6)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>*</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Neil I. Sell(7)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>1,973,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8.8</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Lakes Entertainment, Inc. Directors and Executive Officers
    as a Group (7 people including the foregoing)(8)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>8,089,934</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>32.6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Deephaven Capital Management LLC(9)<BR>
    130 Cheshire Lane Suite&nbsp;102<BR>
    Minnetonka, MN 55305</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>3,497,951</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>15.7</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>*</TD>
    <TD align="left">
    Less than one percent.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Includes 422,806&nbsp;shares held by Berman Consulting
    Corporation, a corporation wholly owned by Mr.&nbsp;Berman and
    323,000&nbsp;shares owned by Mr.&nbsp;Berman through a Berman
    Consulting Corporation profit sharing plan. Also includes
    options to purchase&nbsp;1,600,000&nbsp;shares that are
    currently exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Includes options to purchase&nbsp;487,500&nbsp;shares that are
    currently exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    Includes options to purchase&nbsp;243,500&nbsp;shares that are
    currently exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(4)&nbsp;</TD>
    <TD align="left">
    Includes options to purchase&nbsp;78,000&nbsp;shares that are
    currently exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(5)&nbsp;</TD>
    <TD align="left">
    Includes options to purchase&nbsp;29,000&nbsp;shares that are
    currently exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(6)&nbsp;</TD>
    <TD align="left">
    Includes options to purchase&nbsp;15,000&nbsp;shares that are
    currently exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(7)&nbsp;</TD>
    <TD align="left">
    Includes an aggregate of 1,936,200&nbsp;shares held by four
    irrevocable trusts for the benefit of Lyle Berman&#146;s
    children with respect to which Mr.&nbsp;Sell has shared voting
    and dispositive powers as a co-trustee. Mr.&nbsp;Sell has
    disclaimed beneficial ownership of such shares. Also includes
    options to purchase&nbsp;29,000&nbsp;shares that are currently
    exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(8)&nbsp;</TD>
    <TD align="left">
    Includes shares held by corporations controlled by such officers
    and directors and shares held by trusts of which such officers
    and directors are trustees. Also includes options to
    purchase&nbsp;2,482,000&nbsp;shares that are currently
    exercisable.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(9)&nbsp;</TD>
    <TD align="left">
    Based upon the report for the quarter ended June&nbsp;30, 2005
    on Schedule&nbsp;13F-HR on file with the Securities and Exchange
    Commission.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The foregoing footnotes are provided for informational purposes
only and each person disclaims beneficial ownership of shares
owned by any member of his or her family or held in trust for
any other person, including family members.
</DIV>

<P align="center" style="font-size: 10pt;">114

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EQUITY COMPENSATION PLAN INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Lakes Entertainment, Inc. 1998 Stock Option and Compensation
Plan (the&#147;Employee Plan&#148;) and the Director Plan permit
the grant of up to a maximum of 5,000,000&nbsp;shares and
500,000&nbsp;shares of common stock, respectively, as of the end
of fiscal 2004.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Employee Plan is designed to integrate compensation of our
executives (including officers and directors but excluding
directors who are not also full-time employees) with our
long-term interests and those of our shareholders and to assist
in the retention of executives and other key personnel. Under
the Director Plan, we may issue equity awards to members of our
Board of Directors, who are not also our employees or employees
of our subsidiaries. The Employee Plan and the Director Plan
have each been approved by our shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with our establishment as a public corporation,
which occurred pursuant to a distribution of our common stock to
the then shareholders of Grand Casinos (the
&#147;Distribution&#148;), we issued options to purchase our
common stock to the holders of then-outstanding options to
purchase common stock of Grand Casinos. These
Distribution-related options were treated as awards granted
outside of the Employee Plan and the Director Plan, and we did
not seek shareholder approval for the Distribution-related
option grants apart from the approval obtained from the
shareholders of Grand Casinos for the overall public
distribution of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth certain information as of
January&nbsp;2, 2005 with respect to the Employee Plan, the
Director Plan and the options related to the Distribution:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="3%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Remaining</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Available for</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Number of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Future Issuances</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities to be</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Under Equity</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Issued Upon</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Weighted-Average</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Compensation</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Exercise Price of</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Plans (Excluding</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Outstanding</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Securities Reflected</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Options</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>in Column</B></TD><TD></TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="2" align="left" nowrap><B>Plan Category</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(A)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(B)</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>(A)</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity Compensation Plans Approved By Security Holders:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    1998 Stock Option and Compensation Plan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,219,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>151,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    1998&nbsp;Director Stock Option Plan</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>277,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.54</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>115,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>4,496,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>266,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Equity Compensation Plans Not Approved By Security Holders:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Distribution-related Stock Options</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>697,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    TOTAL:</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>5,193,676</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>5.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>266,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;13.</B></TD>
    <TD>
    <B><I>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Park Place Entertainment Corporation</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Mr.&nbsp;Berman entered into an employment agreement with Park
Place Entertainment, Inc. as of January&nbsp;1, 1999, pursuant
to which he served as a part-time employee of Park Place. The
agreement contained a noncompetition covenant under which
Mr.&nbsp;Berman was prohibited, subject to certain exceptions,
from participating in the ownership, management or control of
any business engaged in a gaming enterprise that competed with
Park Place. Additionally, Mr.&nbsp;Berman was required to give
Park Place a right of first offer on all gaming opportunities
and projects, subject to certain exceptions. These covenants
substantially limited the number and scope of opportunities that
Lakes was able to consider and pursue. The agreement, which
originally had a four-year term ending January&nbsp;1, 2003 and
was renewed for an additional one-year term, expired on
January&nbsp;1, 2004.
</DIV>

<P align="center" style="font-size: 10pt;">115

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Loans to ViatiCare Financial Services, LLC; Living Benefits
Financial Services, LLC</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 2000 and 2001, we made a total of $4.0&nbsp;million in
unsecured loans to ViatiCare Financial Services, LLC
(&#147;ViatiCare&#148;), which has since been acquired by Living
Benefits Financial Services, LLC (&#147;Living Benefits&#148;).
In connection with the Living Benefits&#146; acquisition of
Viaticare, Living Benefits provided an unsecured guarantee of
ViatiCare&#146;s obligations to Lakes. In March 2001, our Board
of Directors determined not to make further loans to ViatiCare.
Due to our management&#146;s determination that repayment of the
$4.0&nbsp;million loan was not likely to occur, we recorded a
$4.0&nbsp;million reserve in the financial results for the
quarter ended June&nbsp;30, 2002.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subsequent to our decision not to make further loans to
ViatiCare, Mr.&nbsp;Berman and LB Acquisitions LLC, a limited
liability company wholly owned by Mr.&nbsp;Berman, have made
loans or other advances to Living Benefits from time to time
totaling approximately $7.43&nbsp;million. As an incentive to
make an initial $5.6&nbsp;million loan, LB Acquisitions was
granted a nine percent voting interest in Living Benefits and
was given an option (the &#147;LB Option&#148;) to convert the
$5.6&nbsp;million loan balance into an additional
46&nbsp;percent of the voting interest in Living Benefits. To
secure the repayment of the LB Acquisitions loans, which become
due commencing in 2005, Living Benefits granted LB Acquisitions
a security interest in its personal property, including the
right of Living Benefits to receive payments from profits on
life insurance policies acquired by Living Benefits on or after
June&nbsp;15, 2001. LB Acquisitions made an additional loan of
approximately $400,000 to Living Benefits in May 2002. On
July&nbsp;1, 2002, Mr.&nbsp;Berman advanced an additional
$763,000 to Living Benefits in exchange for a portion of Living
Benefits&#146; rights in 50% of a trust holding the distribution
rights from certain life insurance policies (the
&#147;Trust&#148;), which Mr.&nbsp;Berman later transferred to
LB Acquisitions. As an inducement for this further advance,
Living Benefits agreed to amend the LB Option to permit the
exercise thereof by LB Acquisitions for $1.00 rather than
requiring LB Acquisitions to convert $5.6&nbsp;million of its
loan amounts. Between October 2002 and February 2003,
Mr.&nbsp;Berman and LB Acquisitions made additional loans to
Living Benefits totaling approximately $350,000 and acquired
approximately $230,000 in existing debt previously held by other
investors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On April&nbsp;7, 2003, Living Benefits transferred its entire
interest in the Trust (which constitutes the substantial
majority of Living Benefits&#146; assets) to LB Acquisitions in
exchange for the forgiveness by LB&nbsp;Acquisitions of
$6.9&nbsp;million of Living Benefits&#146; debt obligations.
Formal transfer to LB Acquisitions of certificates evidencing
the Trust interests is subject to the consent of the third party
holding the remaining 50% Trust interest.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Transactions with Sklansky Games, LLC and WPT Enterprises,
Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On May&nbsp;17, 2004, we entered into a license agreement with
Sklansky Games, LLC (&#147;Sklansky&#148;) and WPT Enterprises,
Inc. (&#147;WPTE&#148;) pursuant to which we agreed to develop a
casino table game jointly with Sklansky utilizing WPTE&#146;s
World Poker Tour brand name. In addition to our indirect
ownership of a majority of WPTE&#146;s common stock through
Lakes Poker Tour, LLC, one of our wholly owned subsidiaries,
Lyle&nbsp;Berman, our Chief Executive Officer and a director,
and his son, Brad Berman, each own an equity interest in
Sklansky.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Loan Agreement with WPT Enterprises, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As of March&nbsp;4, 2002, Lakes Poker Tour, LLC, one of our
wholly owned subsidiaries, entered into a Loan Agreement (the
&#147;Loan Agreement&#148;) with WPTE. Pursuant to the Loan
Agreement, WPTE was allowed to borrow up to $4,000,000 pursuant
to a promissory note. The note accrued interest at an annual
rate of 6.2%. The note matured and was payable in full on
March&nbsp;4, 2005. The note was paid in full on July&nbsp;28,
2004, and no further obligations remain under the note or the
Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 15pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Interests in PokerTek</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE has a 15% ownership interest in PokerTek, Inc.
(&#147;PokerTek&#148;), a start-up manufacturer and distributor
of electronic poker tables. This interest was obtained by WPTE
loaning PokerTek approximately
</DIV>

<P align="center" style="font-size: 10pt;">116

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<DIV align="left" style="font-size: 10pt;">
$0.2&nbsp;million at an annual interest rate equal to the lowest
applicable federal rate. Lyle Berman, our Chief Executive
Officer and a director, who serves as Executive Chairman of
WPTE&#146;s Board, along with his son Bradley Berman, who is an
employee of Lakes and sits on WPTE&#146;s Board, made personal
investments in PokerTek and currently hold a combined ownership
of approximately three percent of PokerTek. Lyle Berman agreed
to serve as Chairman of the Board of PokerTek and received an
option to purchase&nbsp;200,000&nbsp;shares of common stock in
that company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>WPTE Agreement with G-III Apparel Group, Ltd.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
WPTE entered into a non-exclusive license agreement with G-III
Apparel Group Ltd. (&#147;G-III&#148;), effective as of
February&nbsp;24, 2004. Morris Goldfarb, a member of our Board,
is Co-Chairman of the Board and Chief Executive Officer of
G-III. Under the agreement, G-III licenses the World Poker Tour
name, logo and trademark from WPTE in connection with
G-III&#146;s production of certain types of apparel for
distribution in authorized channels within the U.S., its
territories and possessions and, in certain circumstances,
Canada. As consideration for this non-exclusive license, G-III
pays royalties and certain other fees to WPTE.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Legal Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Neil I. Sell, a member of our Board, is a partner in the law
firm of Maslon Edelman Borman&nbsp;&#38; Brand, LLP, which
renders legal services to us from time to time.
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;14.</B></TD>
    <TD>
    <B><I>PRINCIPAL ACCOUNTANT FEES AND SERVICES</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Fees billed to Company by Its Independent Auditors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table presents fees for professional audit and
other services rendered by Deloitte&nbsp;&#38; Touche LLP during
fiscal 2004 and fiscal 2003.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="64%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fees for 2004</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Fees for 2003</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit Fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>203,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>104,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Audit-Related Fees(1)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Tax Fees(2)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>162,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>266,870</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    All Other Fees(3)</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>66,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>120,324</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Total Fees</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>431,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>491,194</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" style="border-top: 3pt double #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>

</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>(1)&nbsp;</TD>
    <TD align="left">
    Audit-Related Fees consist principally of assurance and related
    services that are reasonably related to the performance of the
    audit or review of the Company&#146;s financial statements but
    not reported under the caption <I>Audit Fees</I> above.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(2)&nbsp;</TD>
    <TD align="left">
    Tax Fees consist of fees for tax compliance, tax advice, and tax
    planning.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(3)&nbsp;</TD>
    <TD align="left">
    All Other Fees in fiscal 2004 and 2003 consist of fees for
    permitted non-audit products and services provided which
    included transaction-related consultation.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee of the Board of Directors has reviewed the
fees billed by Deloitte&nbsp;&#38; Touche LLP during fiscal year
2004 and, after consideration, has determined that the receipt
of these fees by Deloitte&nbsp;&#38; Touche LLP is compatible
with the provision of independent audit services. The Audit
Committee discussed these services and fees with
Deloitte&nbsp;&#38; Touche LLP and our management to determine
that they are permitted under the rules and regulations
concerning auditor independence promulgated by the SEC to
implement the Sarbanes-Oxley Act of 2002, as well as the
American Institute of Certified Public Accountants.
</DIV>

<P align="center" style="font-size: 10pt;">117

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Pre-Approval of Services by Independent Auditors</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As permitted under applicable law, our Audit Committee may
pre-approve from time to time certain types of services,
including tax services, to be provided by our independent
auditors. As provided in the charter of the Audit Committee, and
in order to maintain control and oversight over the services
provided by our independent auditors, it is the policy of the
Audit Committee to pre-approve all audit and non-audit services
to be provided by the independent auditors (other than with
respect to de&nbsp;minimus exceptions permitted by the
Sarbanes-Oxley Act of 2002), and not to engage the independent
auditors to provide any non-audit services prohibited by law or
regulation. For administrative convenience, the Audit Committee
may delegate pre-approval authority to Audit Committee members
who are also independent members of the Board of Directors, but
any decision by such a member on pre-approval must be reported
to the full Audit Committee at its next regularly scheduled
meeting. All services provided by our Independent auditors were
pre-approved by our Audit Committee in fiscal 2004.
</DIV>

<P align="center" style="font-size: 10pt;">118

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>PART&nbsp;IV</B>
</DIV>

<DIV style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD><B>ITEM&nbsp;15.</B></TD>
    <TD>
    <B><I>EXHIBITS AND FINANCIAL STATEMENT SCHEDULES</I></B></TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)(1) Consolidated Financial Statements:
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 12pt; ">

<TR style="font-size: 1pt;">
    <TD width="75%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Page</B></TD><TD></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD><TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#300'>Report of Independent Registered Public
    Accounting Firm</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#301'>Consolidated Balance Sheets as of
    January&nbsp;2, 2005 and December&nbsp;28, 2003 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>65</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#302'>Consolidated Statements of Loss for the
    fiscal years ended January&nbsp;2, 2005, December&nbsp;28, 2003
    (restated)&nbsp;and December&nbsp;29, 2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>66</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#303'>Consolidated Statements of Comprehensive
    Loss for the fiscal years ended January&nbsp;2, 2005,
    December&nbsp;28, 2003 (restated)&nbsp;and December&nbsp;29,
    2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#304'>Consolidated Statements of
    Shareholders&#146; Equity for the fiscal years ended
    January&nbsp;2, 2005, December&nbsp;28, 2003 (restated)&nbsp;and
    December&nbsp;29, 2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#305'>Consolidated Statements of Cash Flows for
    the fiscal years ended January&nbsp;2, 2005, December&nbsp;28,
    2003 (restated)&nbsp;and December&nbsp;29, 2002 (restated)</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#306'>Notes to Consolidated Financial
    Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>70</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>(a)(2)&nbsp;</TD>
    <TD align="left">
    None.</TD>
</TR>

<TR>
    <TD style="font-size: 3pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>(a)(3)&nbsp;</TD>
    <TD align="left">
    Exhibits:</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">119

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>2</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Agreement and Plan of Merger by and among Hilton, Park Place
    Entertainment Corporation, Gaming Acquisition Corporation, Lakes
    Gaming, Inc., and Grand Casinos, Inc. dated as of June&nbsp;30,
    1998. (Incorporated herein by reference to Exhibit&nbsp;2.2 to
    Lakes&#146; Form&nbsp;10 Registration Statement as filed with
    the Securities and Exchange Commission (the
    &#147;Commission&#148;) on October&nbsp;23, 1998 (the
    &#147;Lakes Form&nbsp;10&#148;)).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Articles of Incorporation of Lakes Entertainment, Inc. (as
    amended through May&nbsp;4, 2004). (Incorporated herein by
    reference to Exhibit&nbsp;3.1 to Lakes&#146; Report on
    Form&nbsp;10-Q for the fiscal quarter ended April&nbsp;4, 2004.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>3</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    By-laws of Lakes Gaming, Inc. (Incorporated herein by reference
    to Exhibit&nbsp;3.2 to the Lakes Form&nbsp;10.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>4</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Rights Agreement, dated as of May&nbsp;12, 2000, between Lakes
    Gaming, Inc. and Norwest Bank Minnesota, National Association,
    as Rights Agent. (Incorporated herein by reference to
    Exhibit&nbsp;4.1 to Lakes&#146; Form&nbsp;8-K filed May&nbsp;16,
    2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Distribution Agreement by and between Grand Casinos, Inc. and
    Lakes Gaming, Inc., dated as of December&nbsp;31, 1998.
    (Incorporated herein by reference to Exhibit&nbsp;10.1 to
    Lakes&#146; Form&nbsp;8-K filed January&nbsp;8, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Employee Benefits and Other Employment Matters Allocation
    Agreement by and between Grand Casinos, Inc. and Lakes Gaming,
    Inc., dated as of December&nbsp;31, 1998. (Incorporated herein
    by reference to Exhibit&nbsp;10.2 to Lakes&#146; Form&nbsp;8-K
    filed January&nbsp;8, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.3</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Intellectual Property License Agreement by and between Grand
    Casinos, Inc. and Lakes Gaming, Inc., dated as of
    December&nbsp;31, 1998. (Incorporated herein by reference to
    Exhibit&nbsp;10.5 to Lakes&#146; Form&nbsp;8-K filed
    January&nbsp;8, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.4</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tax Allocation and Indemnity Agreement by and between Grand
    Casinos, Inc. and Lakes Gaming, Inc., dated as of
    December&nbsp;31, 1998. (Incorporated herein by reference to
    Exhibit&nbsp;10.3 to Lakes&#146; Form&nbsp;8-K filed
    January&nbsp;8, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.5</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tax Escrow Agreement by and among Grand Casinos, Inc., Lakes
    Gaming, Inc., and First Union National Bank as Escrow Agent,
    dated as of December&nbsp;31, 1998. (Incorporated herein by
    reference to Exhibit&nbsp;10.4 to Lakes&#146; Form&nbsp;8-K
    filed January&nbsp;8, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.6</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Trust&nbsp;Agreement dated as of December&nbsp;31, 1998 entered
    into by and among Lakes Gaming, Inc., Grand Casinos, Inc. and
    First Union National Bank, as Trustee. (Incorporated herein by
    reference to Exhibit&nbsp;10.7 to Lakes&#146; Form&nbsp;10-K for
    the fiscal year ended January&nbsp;3, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.7</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pledge and Security Agreement dated as of December&nbsp;31, 1998
    entered into by and among Lakes Gaming, Inc., as Debtor and
    First Union National Bank (the &#147;Trustee&#148;) pursuant to
    the Trust&nbsp;Agreement executed in favor of Grand Casinos,
    Inc. (the &#147;Secured Party&#148;). (Incorporated herein by
    reference to Exhibit&nbsp;10.8 to Lakes&#146; Form&nbsp;10-K
    dated for the fiscal year ended January&nbsp;3, 1999.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.8</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lakes Gaming, Inc. 1998 Stock Option and Compensation Plan.
    (Incorporated herein by reference to Annex&nbsp;G to the Joint
    Proxy Statement/ Prospectus of Hilton Hotels Corporation and
    Grand dated and filed with the Commission on October&nbsp;14,
    1998 (the &#147;Joint Proxy Statement&#148;) which is attached
    to the Lakes Form&nbsp;10 as Annex&nbsp;A.) *</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.9</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lakes Gaming, Inc. 1998&nbsp;Director Stock Option Plan.
    (Incorporated herein by reference to Annex&nbsp;H to the Joint
    Proxy Statement which is attached to the Lakes Form&nbsp;10 as
    Annex&nbsp;A.) *</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.10</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indemnification Agreement, dated as of December&nbsp;31, 1997,
    by and between Grand Casinos, Inc. and Lyle Berman.
    (Incorporated herein by reference to Exhibit&nbsp;10.79 to
    Grand&#146;s Report on Form&nbsp;10-K for the fiscal year ended
    December&nbsp;28, 1997.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.11</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development Agreement dated as of the 8th&nbsp;day of July, 1999
    by and between the Pokagon Band of Potawatomi Indians and Lakes
    Gaming, Inc., a Minnesota corporation. (Incorporated herein by
    reference to Exhibit&nbsp;10.61 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.12</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement dated as of July&nbsp;8, 1999, by and
    between the Pokagon Band of Potawatomi Indians and Lakes Gaming,
    Inc., a Minnesota corporation. (Incorporated herein by reference
    to Exhibit&nbsp;10.62 to Lakes&#146; Report on Form&nbsp;10-K
    for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">120

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.13</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note (the &#147;Lakes Note&#148;) dated as of
    July&nbsp;8, 1999, by and among the Pokagon Band of Potawatomi
    Indians and Lakes Gaming, Inc., a Minnesota corporation.
    (Incorporated herein by reference to Exhibit&nbsp;10.63 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.14</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Non-Gaming Land Acquisition Line of Credit Agreement dated as of
    the
    8<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of July, 1999, by and between the Pokagon Band of Potawatomi
    Indians and Lakes Gaming, Inc., a Minnesota corporation.
    (Incorporated herein by reference to Exhibit&nbsp;10.64 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.15</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note (the &#147;Transition Loan Note&#148;) dated as
    of July&nbsp;8, 1999, by and among the Pokagon Band of
    Potawatomi Indians and Lakes Gaming, Inc., a Minnesota
    corporation. (Incorporated herein by reference to
    Exhibit&nbsp;10.65 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.16</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Account&nbsp;Control Agreement dated as of July&nbsp;8, 1999, by
    and among the Pokagon Band of Potawatomi Indians and Lakes
    Gaming, Inc., a Minnesota corporation. (Incorporated herein by
    reference to Exhibit&nbsp;10.66 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.17</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pledge and Security Agreement dated as of July&nbsp;8, 1999, by
    and among the Pokagon Band of Potawatomi Indians and Lakes
    Gaming, Inc., a Minnesota corporation. (Incorporated herein by
    reference to Exhibit&nbsp;10.67 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.18</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Memorandum of Agreement Regarding Gaming Development and
    Management Agreements dated as of the 15th&nbsp;day of February,
    2000, by and between the Jamul Indian Village and Lakes
    KAR&nbsp;&#151; California, LLC, a Delaware limited liability
    company. (Incorporated herein by reference to Exhibit&nbsp;10.68
    to Lakes&#146; Report on Form&nbsp;10-K for the fiscal year
    ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.19</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Agreement of Lakes Kean Argovitz Resorts&nbsp;&#151;
    California, LLC dated as of the
    25<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of May, 1999, by and between Lakes Jamul, Inc. and Kean Argovitz
    Resorts&nbsp;&#151; Jamul, LLC. (Incorporated herein by
    reference to Exhibit&nbsp;10.69 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.20</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note dated as of the
    15<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of February, 2000, by and among the Jamul Indian Village and
    Lakes KAR&nbsp;&#151; California, LLC, a Delaware limited
    liability company. (Incorporated herein by reference to
    Exhibit&nbsp;10.70 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.21</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement dated as of the
    25<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of May, 1999, by and between Lakes Jamul, Inc., a Minnesota
    corporation and Lakes Kean Argovitz Resorts&nbsp;&#151;
    California, LLC, a Delaware limited liability company.
    (Incorporated herein by reference to Exhibit&nbsp;10.71 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.22</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement between the Shingle Springs Band of Miwok
    Indians and Kean Argovitz Resorts&nbsp;&#151; Shingle Springs,
    LLC, dated as of the
    11<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of June, 1999. (Incorporated herein by reference to
    Exhibit&nbsp;10.72 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.23</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Development Agreement between the Shingle Springs Band of Miwok
    Indians and Kean Argovitz Resorts&nbsp;&#151; Shingle Springs,
    LLC, dated as of the
    11<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of June, 1999. (Incorporated herein by reference to
    Exhibit&nbsp;10.73 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.24</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement dated as of the
    29<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of July, 1999, by and among Lakes Shingle Springs, Inc., a
    Minnesota corporation and Lakes KAR &#150; Shingle Springs, LLC,
    a Delaware limited liability company. (Incorporated herein by
    reference to Exhibit&nbsp;10.74 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.25</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Agreement of Lakes KAR&nbsp;&#151; Shingle Springs,
    LLC dated as of the
    29<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of July, 1999, by Lakes Shingle Springs, Inc. and Kean Argovitz
    Resorts&nbsp;&#151; Shingle Springs, LLC. (Incorporated herein
    by reference to Exhibit&nbsp;10.75 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.26</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Assignment and Assumption Agreement between Kean Argovitz
    Resorts&nbsp;&#151; Shingle Springs, LLC, a Nevada limited
    liability company, and Lakes KAR &#150; Shingle Springs, LLC, a
    Delaware limited liability company, dated as of the
    11<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of June, 1999. (Incorporated herein by reference to
    Exhibit&nbsp;10.76 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">121

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.27</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Assignment and Assumption Agreement and Consent to Assignment
    and Assumption, by and between Lakes Gaming, Inc., a Minnesota
    corporation, and Kean Argovitz Resorts&nbsp;&#151; Shingle
    Springs, LLC, a Nevada limited liability company, dated as of
    the
    11<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of June, 1999. (Incorporated herein by reference to
    Exhibit&nbsp;10.77 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.28</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement dated as of the
    29<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of July, 1999, by and between Lakes Shingle Springs, Inc., a
    Minnesota corporation, and Lakes KAR&nbsp;&#151; Shingle
    Springs, LLC, a Delaware limited liability company.
    (Incorporated herein by reference to Exhibit&nbsp;10.78 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.29</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note dated as of the
    29<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of July, 1999, by and among Kean Argovitz Resorts&nbsp;&#151;
    Shingle Springs, LLC, a Nevada limited liability company, and
    Lakes Shingle Springs, Inc., a Minnesota corporation.
    (Incorporated herein by reference to Exhibit&nbsp;10.79 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.30</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pledge Agreement dated as of the
    29<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of July, 1999, by and between Kean Argovitz Resorts&nbsp;&#151;
    Shingle Springs, LLC, a Nevada limited liability company and
    Lakes Shingle Springs, Inc., a Minnesota corporation.
    (Incorporated herein by reference to Exhibit&nbsp;10.80 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    January&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.31</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Member Control Agreement of Metroplex-Lakes, LLC, by and between
    Grand Casinos Nevada&nbsp;I, Inc., Metroplex, LLC, and
    Metroplex-Lakes, LLC dated as of April&nbsp;25, 2000.
    (Incorporated herein by reference to Exhibit&nbsp;10.2 to
    Lakes&#146; Report on Form&nbsp;10-Q for the fiscal quarter
    ended July&nbsp;2, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.32</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Member Control Agreement of Pacific Coast Gaming&nbsp;&#151;
    Santa Rosa, LLC. (Incorporated herein by reference to
    Exhibit&nbsp;10.4 to Lakes&#146; Report on Form&nbsp;10-Q for
    the fiscal quarter ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.33</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note, dated as of October&nbsp;12, 2000, by and
    between Pacific Coast Gaming&nbsp;&#151; Santa Rosa, LLC, a
    Minnesota limited liability company, and Lakes Cloverdale, LLC,
    a Minnesota limited liability company. (Incorporated herein by
    reference to Exhibit&nbsp;10.6 to Lakes&#146; Report on
    Form&nbsp;10-Q for the fiscal quarter ended October&nbsp;1,
    2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.34</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Assignment and Assumption Agreement, dated as of
    October&nbsp;16, 2000, by and among Great Lakes of Michigan,
    LLC, a Minnesota limited liability company, Lakes Gaming, Inc.,
    a Minnesota corporation, and Pokagon Band of Potawatomi Indians.
    (Incorporated herein by reference to Exhibit&nbsp;10.7 to
    Lakes&#146; Report on Form&nbsp;10-Q for the fiscal quarter
    ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.35</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amended and Restated Development Agreement, dated as of
    October&nbsp;16, 2000, by and between the Pokagon Band of
    Potawatomi Indians and Great Lakes Gaming of Michigan, LLC, a
    Minnesota limited liability company (f/k/a Great Lakes of
    Michigan, LLC). (Incorporated herein by reference to
    Exhibit&nbsp;10.8 to Lakes&#146; Report on Form&nbsp;10-Q for
    the fiscal quarter ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.36</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amended and Restated Management Agreement, dated as of
    October&nbsp;16, 2000, by and between the Pokagon Band of
    Potawatomi Indians and Great Lakes Gaming of Michigan, LLC, a
    Minnesota limited liability company (f/k/a Great Lakes of
    Michigan, LLC). (Incorporated herein by reference to
    Exhibit&nbsp;10.9 to Lakes&#146; Report on Form&nbsp;10-Q for
    the fiscal quarter ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.37</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amended and Restated Lakes Note, dated as of
    October&nbsp;16, 2000, by and between the Pokagon Band of
    Potawatomi Indians and Great Lakes of Michigan, LLC, a Minnesota
    limited liability company. (Incorporated herein by reference to
    Exhibit&nbsp;10.10 to Lakes&#146; Report on Form&nbsp;10-Q for
    the fiscal quarter ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.38</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amended and Restated Non-Gaming Land Acquisition Line of
    Credit, dated as of October&nbsp;16, 2000, by and between the
    Pokagon Band of Potawatomi Indians and Great Lakes of Michigan,
    LLC, a Minnesota limited liability company. (Incorporated herein
    by reference to Exhibit&nbsp;10.11 to Lakes&#146; Report on
    Form&nbsp;10-Q for the fiscal quarter ended October&nbsp;1,
    2000.)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">122

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.39</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amended and Restated Transition Loan Note, dated as of
    October&nbsp;16, 2000, by and between the Pokagon Band of
    Potawatomi Indians and Great Lakes of Michigan, LLC, a Minnesota
    limited liability company. (Incorporated herein by reference to
    Exhibit&nbsp;10.12 to Lakes&#146; Report on Form&nbsp;10-Q for
    the fiscal quarter ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.40</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment to Account&nbsp;Control Agreement, dated as of
    October&nbsp;16, 2000, by and among Great Lakes of Michigan,
    LLC, a Minnesota limited liability company, Lakes Gaming, Inc.,
    a Minnesota corporation, the Pokagon Band of Potawatomi Indians,
    and Firstar Bank, N.A. f/k/a Firstar Bank of Minnesota, N.A.
    (Incorporated herein by reference to Exhibit&nbsp;10.13 to
    Lakes&#146; Report on Form&nbsp;10-Q for the fiscal quarter
    ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.41</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Unlimited Guaranty, dated as of October&nbsp;16, 2000, from
    Lakes Gaming, Inc., a Minnesota corporation, and Great Lakes of
    Michigan, LLC, a Minnesota limited liability company, to the
    Pokagon Band of Potawatomi Indians. (Incorporated herein by
    reference to Exhibit&nbsp;10.14 to Lakes&#146; Report on
    Form&nbsp;10-Q for the fiscal quarter ended October&nbsp;1,
    2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.42</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment to Pledge and Security Agreement, dated as of
    October&nbsp;16, 2000, by and among the Great Lakes of Michigan,
    LLC, a Minnesota limited liability company, Lakes Gaming, Inc.,
    a Minnesota corporation, and the Pokagon Band of Potawatomi
    Indians. (Incorporated herein by reference to Exhibit&nbsp;10.15
    to Lakes&#146; Report on Form&nbsp;10-Q for the fiscal quarter
    ended October&nbsp;1, 2000.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.43</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase Agreement, dated as of December&nbsp;28, 2001, by and
    among Grand Casinos Nevada&nbsp;I, Inc., a Minnesota
    corporation, and Metroflag Polo, LLC, a Nevada limited liability
    company. (Incorporated herein by reference to Exhibit&nbsp;10.56
    to Lakes&#146; Report on Form&nbsp;10-K for the fiscal year
    ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.44</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note dated as of the
    28<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of December 2001, by and among Metroflag Polo, LLC, a Nevada
    limited liability company, and Grand Casinos Nevada&nbsp;I,
    Inc., a Minnesota corporation. (Incorporated herein by reference
    to Exhibit&nbsp;10.57 to Lakes&#146; Report on Form&nbsp;10-K
    for the fiscal year ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.45</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Deed of Trust, Assignment of Leases and Rents and Security
    Agreement, dated December&nbsp;28, 2001, by and among Metroflag
    Polo, LLC, Lawyers Title of Nevada, Inc. as trusted, and Grand
    Casinos Nevada&nbsp;I, Inc. as beneficiary. (Incorporated herein
    by reference to Exhibit&nbsp;10.58 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.46</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Purchase Agreement, dated as of December&nbsp;28, 2001, by and
    among Grand Casinos Nevada&nbsp;I, Inc., a Minnesota
    corporation, and Metroflag BP, LLC, a Nevada limited liability
    company. (Incorporated herein by reference to Exhibit&nbsp;10.59
    to Lakes&#146; Report on Form&nbsp;10-K for the fiscal year
    ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.47</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note dated as of the
    28<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of December 2001, by and among Metroflag BP, LLC, a Nevada
    limited liability company and Grand Casinos Nevada&nbsp;I, Inc.,
    a Minnesota corporation. (Incorporated herein by reference to
    Exhibit&nbsp;10.60 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.48</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Promissory Note dated as of the
    28<SUP style="font-size: 85%; vertical-align: text-top">th&nbsp;</SUP>day
    of December 2001, by and among Metroflag BP, LLC, a Nevada
    limited liability company, and Grand Casinos Nevada&nbsp;I,
    Inc., a Minnesota corporation. (Incorporated herein by reference
    to Exhibit&nbsp;10.61 to Lakes&#146; Report on Form&nbsp;10-K
    for the fiscal year ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.49</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leasehold Deed of Trust, Assignment of Leases and Rents and
    Security Agreement, dated December&nbsp;28, 2001, by and among
    Metroflag BP, LLC, Lawyers Title of Nevada, Inc. as trustee, and
    Grand Casinos Nevada&nbsp;I, Inc. and Grand Casinos, Inc. as
    beneficiaries. (Incorporated herein by reference to
    Exhibit&nbsp;10.62 to Lakes&#146; Report on Form&nbsp;10-K for
    the fiscal year ended December&nbsp;30, 2001.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.50</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Leasehold Deed of Trust, Assignment of Leases and Rents and
    Security Agreement, dated December&nbsp;28, 2001 by and among
    Metroflag BP, LLC, Lawyers Title of Nevada, Inc. as trustee, and
    Grand Casinos Nevada&nbsp;I, Inc. as beneficiary. (Incorporated
    herein by reference to Exhibit&nbsp;10.63 to Lakes&#146; Report
    on Form&nbsp;10-K for the fiscal year ended December&nbsp;30,
    2001.)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">123

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.51</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Buyout and Release Agreement (Shingle Springs Project) dated as
    of January&nbsp;30, 2003, by and among Kean Argovitz
    Resorts&nbsp;&#151; Shingle Springs, L.L.C., Lakes
    KAR&nbsp;&#151; Shingle Springs, L.L.C., Lakes Entertainment,
    Inc., a Minnesota corporation, and Lakes Shingle Springs, Inc.
    (Incorporated herein by reference to Exhibit&nbsp;10.64 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.52</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent and Agreement to Buyout and Release
    (Argovitz&nbsp;&#151; Shingle Springs Project) dated as of
    January&nbsp;30, 2003, by and among Jerry A. Argovitz, Lakes
    KAR&nbsp;&#151; Shingle Springs, L.L.C., Lakes Entertainment,
    Inc. and Lakes Shingle Springs, Inc. (Incorporated herein by
    reference to Exhibit&nbsp;10.65 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.53</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent and Agreement to Buyout and Release (Kean&nbsp;&#151;
    Shingle Springs Project) dated as of January&nbsp;30, 2003, by
    and among Kevin M. Kean, Lakes KAR&nbsp;&#151; Shingle Springs,
    L.L.C., Lakes Entertainment, Inc. and Lakes Shingle Springs,
    Inc. (Incorporated herein by reference to Exhibit&nbsp;10.66 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.54</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Shingle Springs Consulting Agreement dated as of
    January&nbsp;30, 2003, by and between Kevin M. Kean and Lakes
    KAR&nbsp;&#151; Shingle Springs, L.L.C. (Incorporated herein by
    reference to Exhibit&nbsp;10.67 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.55</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Buyout and Release Agreement (Jamul Project) dated as of
    January&nbsp;30, 2003, by and among Kean Argovitz
    Resorts&nbsp;&#151; Jamul, L.L.C., Lakes Kean Argovitz
    Resorts&nbsp;&#151; California, L.L.C., Lakes Entertainment,
    Inc., a Minnesota corporation, and Lakes Jamul, Inc.
    (Incorporated herein by reference to Exhibit&nbsp;10.68 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.56</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent and Agreement to Buyout and Release
    (Argovitz&nbsp;&#151; Jamul Project) dated as of
    January&nbsp;30, 2003, by and among Jerry A. Argovitz, Lakes
    Kean Argovitz Resorts&nbsp;&#151; California, L.L.C., Lakes
    Entertainment, Inc., a Minnesota corporation, and Lakes Jamul,
    Inc. (Incorporated herein by reference to Exhibit&nbsp;10.69 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.57</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent and Agreement to Buyout and Release (Kean&nbsp;&#151;
    Jamul Project) dated as of January&nbsp;30, 2003, by and among
    Kevin M. Kean, Lakes Kean Argovitz Resorts&nbsp;&#151;
    California, L.L.C., Lakes Entertainment, Inc., a Minnesota
    corporation, and Lakes Jamul, Inc. (Incorporated herein by
    reference to Exhibit&nbsp;10.70 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.58</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Jamul Consulting Agreement dated as of January&nbsp;30, 2003, by
    and between Kevin M. Kean and Lakes Kean Argovitz
    Resorts&nbsp;&#151; California, L.L.C. (Incorporated herein by
    reference to Exhibit&nbsp;10.71 to Lakes&#146; Report on
    Form&nbsp;10-K for the fiscal year ended December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.59</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Loan and Security Agreement dated as of January&nbsp;30, 2003,
    by and among Lakes California Land Development, Inc., Lakes
    Entertainment, Inc., Lakes Shingle Springs, Inc., Lakes Jamul,
    Inc., Lakes KAR Shingle Springs, L.L.C., Lakes Kean Argovitz
    Resorts&nbsp;&#151; California, L.L.C. and Kevin M. Kean.
    (Incorporated herein by reference to Exhibit&nbsp;10.72 to
    Lakes&#146; Report on Form&nbsp;10-K for the fiscal year ended
    December&nbsp;29, 2002.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.60</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Acquisition Master Agreement dated January&nbsp;22, 2003, by and
    between The Travel Channel, L.L.C. and World Poker Tour, L.L.C.
    (portions of this exhibit have been omitted pursuant to a
    request for confidential treatment and have been filed
    separately with the Commission pursuant to Rule&nbsp;24b-2 of
    the Securities Exchange Act of 1934). (Incorporated herein by
    reference to Exhibit&nbsp;10.1 to Lakes&#146; report on
    Form&nbsp;10-Q for the fiscal quarter ended March&nbsp;30, 2003.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.61</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment to Member Control Agreement of Pacific Coast
    Gaming&nbsp;&#151; Santa Rosa, LLC (Incorporated herein by
    reference to Exhibit&nbsp;10.2 to Lakes&#146; Report on
    Form&nbsp;10-Q for the fiscal quarter ended March&nbsp;30, 2003.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.62</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment dated July&nbsp;25, 2003 to Acquisition Master
    Agreement dated January&nbsp;22, 2003, by and between The Travel
    Channel, LLC and World Poker Tour, LLC (portions of this exhibit
    have been omitted pursuant to a request for confidential
    treatment and have been filed separately with the Commission
    pursuant to Rule&nbsp;24b-2 of the Securities Exchange Act of
    1934) (Incorporated herein by reference to Exhibit&nbsp;10.1 to
    Lakes&#146; Report on Form&nbsp;10-Q for the fiscal quarter
    ended September&nbsp;28, 2003.)</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">124

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.63</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Master Agreement, dated as of August&nbsp;22, 2003, by and
    between World Poker Tour, LLC and the Travel Channel, LLC
    (incorporated by reference to Exhibit&nbsp;10.2 to the
    registration statement on Form&nbsp;S-1 of WPT Enterprises, Inc.
    filed with the Commission on April&nbsp;15, 2004.) **</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.64</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter dated as of April&nbsp;12, 2004, from the Travel Channel,
    LLC to World Poker Tour, LLC (incorporated by reference to
    Exhibit&nbsp;10.3 to the registration statement on Form&nbsp;S-1
    of WPT Enterprises, Inc. filed with the Commission on
    April&nbsp;15, 2004.)**</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.65</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amended and Restated Memorandum of Agreement Regarding
    Gaming Development and Management Agreement between Shingle
    Springs Band of Miwok Indians, a Federally Recognized Tribe and
    Lakes KAR Shingle Springs, LLC, a Delaware Limited Liability
    Company, dated October&nbsp;13, 2003, as amended June&nbsp;16,
    2004, as approved by the National Indian Gaming Commission on
    July&nbsp;19, 2004. (Incorporated herein by reference to
    Exhibit&nbsp;10.1 to Lakes&#146; Report on Form&nbsp;10-Q for
    the fiscal quarter ended October&nbsp;3, 2004.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.66</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Amendment No.&nbsp;5 dated August&nbsp;18, 2004 to Acquisition
    Master Agreement dated August&nbsp;22, 2003, by and between The
    Travel Channel, LLC and WPT Enterprises, Inc. (f/k/a World Poker
    Tour, LLC) (incorporated by reference from Exhibit&nbsp;10.2 to
    Form&nbsp;10-Q of WPT Enterprises, Inc. for the fiscal quarter
    ended October&nbsp;3, 2004 (portions of this exhibit have been
    omitted pursuant to a request for confidential treatment and
    have been filed separately with the Commission pursuant to
    Rule&nbsp;24b-2 of the Securities Exchange Act of 1934.)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.67</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Settlement Agreement by and between Lakes Entertainment, Inc.
    and Grand Casinos, Inc. and Park Place Entertainment Corporation
    (now known as Caesar&#146;s Entertainment, Inc.) dated
    December&nbsp;1, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.68</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter agreement by and between Metroflag Polo, LLC and Grand
    Casinos Nevada&nbsp;I, Inc., dated December&nbsp;14, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.69</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amended and Restated Management Agreement by and between
    the Pokagon Band of Potawatomi Indians and Great Lakes Gaming of
    Michigan, LLC, a Minnesota limited liability company (F/ K/ A
    Great Lakes of Michigan, LLC), dated as of December&nbsp;22,
    2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.70</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amended and Restated Development Agreement by and between
    the Pokagon Band of Potawatomi Indians and Great Lakes Gaming of
    Michigan, LLC, a Minnesota limited liability company (F/ K/ A
    Great Lakes of Michigan, LLC), dated as of December&nbsp;22,
    2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.71</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amended and Restated Lakes Development Note by the
    Pokagon Band of Potawatomi Indians in favor of Great Lakes
    Gaming of Michigan, LLC, a Minnesota limited liability company
    (F/ K/ A Great Lakes of Michigan, LLC), dated as of
    December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.72</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amended and Restated Transition Loan Note by the Pokagon
    Band of Potawatomi Indians in favor of Great Lakes Gaming of
    Michigan, LLC, a Minnesota limited liability company (F/ K/ A
    Great Lakes of Michigan, LLC), dated as of December&nbsp;22,
    2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.73</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lakes Facility Note by the Pokagon Band of Potawatomi Indians in
    favor of Great Lakes Gaming of Michigan, LLC, a Minnesota
    limited liability company (F/ K/ A Great Lakes of Michigan,
    LLC), dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.74</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lakes Working Capital Advance Note by the Pokagon Band of
    Potawatomi Indians in favor of Great Lakes Gaming of Michigan,
    LLC, a Minnesota limited liability company (F/ K/ A Great Lakes
    of Michigan, LLC), dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.75</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Lakes Minimum Payments Note by the Pokagon Band of Potawatomi
    Indians in favor of Great Lakes Gaming of Michigan, LLC, a
    Minnesota limited liability company (F/ K/ A Great Lakes of
    Michigan, LLC), dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.76</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amended and Restated Non-Gaming Land Acquisition Line of
    Credit by and between the Pokagon Band of Potawatomi Indians and
    Great Lakes Gaming of Michigan, LLC, a Minnesota limited
    liability company (F/ K/ A Great Lakes of Michigan, LLC), dated
    as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.77</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pokagon Band
    of Potawatomi Indians and Great Lakes Gaming of Michigan, LLC, a
    Minnesota limited liability company (F/ K/ A Great Lakes of
    Michigan, LLC), dated as of December&nbsp;22, 2004.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">125

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.78</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amendment to Account&nbsp;Control Agreement by and among
    the Pokagon Band of Potawatomi Indians and Great Lakes Gaming of
    Michigan, LLC, a Minnesota limited liability company (F/ K/ A
    Great Lakes of Michigan, LLC), and U.S.&nbsp;Bank National
    Association, F/ K/ A Firstar Bank, N.A., dated as of
    December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.79</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amendment to Assignment and Assumption Agreement by and
    among the Pokagon Band of Potawatomi Indians and Great Lakes
    Gaming of Michigan, LLC, a Minnesota limited liability company
    (F/ K/ A Great Lakes of Michigan, LLC), dated as of
    December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.80</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Reaffirmation of Guaranties and Mortgages by and among Pokagon
    Properties, LLC, a Delaware limited liability company and
    Filbert Land Development, LLC, an Indiana limited liability
    company and Great Lakes Gaming of Michigan, LLC, a Minnesota
    limited liability company (F/ K/ A Great Lakes of Michigan,
    LLC), dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.81</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amendment to Pledge and Security Agreement by and among
    Great Lakes Gaming of Michigan, LLC, a Minnesota limited
    liability company, Lakes Entertainment, Inc., f/k/a Lakes
    Gaming, Inc., a Minnesota corporation, and the Pokagon Band of
    Potawatomi Indians dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.82</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pokagon Band of Potawatomi
    Indians and Great Lakes Gaming of Michigan, LLC, a Minnesota
    limited liability company (F/ K/ A Great Lakes of Michigan,
    LLC), dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.83</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amendment to Unlimited Guaranty by and among Lakes
    Entertainment, Inc., f/k/a Lakes Gaming, Inc., a Minnesota
    corporation and Lakes Gaming and Resorts, LLC, a Minnesota
    limited liability company, and the Pokagon Band of Potawatomi
    Indians dated as of December&nbsp;22, 2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.84</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Second Amended and Restated Indemnity Agreement by and between
    the Pokagon Band of Potawatomi Indians and Great Lakes Gaming of
    Michigan, LLC, a Minnesota limited liability company (F/ K/ A
    Great Lakes of Michigan, LLC), dated as of December&nbsp;22,
    2004.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.85</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement by and among the Pawnee Nation of Oklahoma, a
    federally recognized Indian Tribe, the Pawnee Tribal Development
    Corporation, a tribally-chartered corporation, and Lakes Pawnee
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.86</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement by and among the Pawnee Nation of Oklahoma, a
    federally recognized Indian Tribe, the Pawnee Tribal Development
    Corporation, a tribally-charted corporation, and Lakes Pawnee
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.87</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Gaming Development Consulting Agreement by and between the
    Pawnee Trading Post Gaming Corporation, a wholly-owned
    subsidiary of the Pawnee Tribal Development Corporation, and
    Lakes Pawnee Consulting, LLC, a Minnesota limited liability
    company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.88</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pawnee Note by the Pawnee Trading Post Gaming Corporation, a
    wholly-owned subsidiary of the Pawnee Tribal Development
    Corporation, in favor of Lakes Pawnee Consulting, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.89</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pawnee
    Trading Post Gaming Corporation, a wholly-owned subsidiary of
    the Pawnee Tribal Development Corporation, and Lakes Pawnee
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.90</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pawnee Trading Post Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Consulting, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.91</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement for a Gaming Facility and Related Ancillary
    Facilities by and between the Pawnee Trading Post Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, each created under the Constitution of
    and a governmental subdivision of the Pawnee Nation of Oklahoma,
    a federally recognized Indian Tribe, and Lakes Pawnee
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.92</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Note by the Pawnee Trading Post Gaming Corporation, a
    wholly-owned subsidiary of the Pawnee Tribal Development
    Corporation, in favor of Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">126

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.93</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pawnee
    Trading Post Gaming Corporation, a wholly-owned subsidiary of
    the Pawnee Tribal Development Corporation, and Lakes Pawnee
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.94</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pawnee Trading Post Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.95</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indemnity Agreement by and between the Pawnee Trading Post
    Gaming Corporation, a wholly-owned subsidiary of the Pawnee
    Tribal Development Corporation, and Lakes Pawnee Management,
    LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.96</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Gaming Development Consulting Agreement by and between the
    Pawnee Travel Plaza Gaming Corporation, a wholly-owned
    subsidiary of the Pawnee Tribal Development Corporation, and
    Lakes Pawnee Consulting, LLC, a Minnesota limited liability
    company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.97</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pawnee Note by the Pawnee Travel Plaza Gaming Corporation, a
    wholly-owned subsidiary of the Pawnee Tribal Development
    Corporation, in favor of Lakes Pawnee Consulting, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.98</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pawnee Travel
    Plaza Gaming Corporation, a wholly-owned subsidiary of the
    Pawnee Tribal Development Corporation, and Lakes Pawnee
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pawnee Travel Plaza Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Consulting, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.100</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement for a Gaming Facility and Related Ancillary
    Facilities by and between the Pawnee Travel Plaza Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, each created under the Constitution of
    and a governmental subdivision of the Pawnee Nation of Oklahoma,
    a federally recognized Indian Tribe, and Lakes Pawnee
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.101</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Note by the Pawnee Travel Plaza Gaming Corporation, a
    wholly-owned subsidiary of the Pawnee Tribal Development
    Corporation, in favor of Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.102</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pawnee Travel
    Plaza Gaming Corporation, a wholly-owned subsidiary of the
    Pawnee Tribal Development Corporation, and Lakes Pawnee
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.103</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pawnee Travel Plaza Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.104</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indemnity Agreement by and between the Pawnee Travel Plaza
    Gaming Corporation, a wholly-owned subsidiary of the Pawnee
    Tribal Development Corporation, and Lakes Pawnee Management,
    LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.105</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Gaming Development Consulting Agreement by and between the
    Pawnee Chilocco Gaming Corporation, a wholly-owned subsidiary of
    the Pawnee Tribal Development Corporation, and Lakes Pawnee
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.106</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Pawnee Note by the Pawnee Chilocco Gaming Corporation, a
    wholly-owned subsidiary of the Pawnee Tribal Development
    Corporation, in favor of Lakes Pawnee Consulting, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.107</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pawnee
    Chilocco Gaming Corporation, a wholly-owned subsidiary of the
    Pawnee Tribal Development Corporation, and Lakes Pawnee
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.108</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pawnee Chilocco Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Consulting, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">127

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.109</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement for a Gaming Facility and Related Ancillary
    Facilities by and between the Pawnee Chilocco Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, a governmental subdivision of the
    Pawnee Nation of Oklahoma, a federally recognized Indian Tribe,
    and Lakes Pawnee Management, LLC, a Minnesota limited liability
    company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.110</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Note by the Pawnee Chilocco Gaming Corporation, a
    wholly-owned subsidiary of the Pawnee Tribal Development
    Corporation, in favor of Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.111</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement by and between the Pawnee
    Chilocco Gaming corporation, a wholly-owned subsidiary of the
    Pawnee Tribal Development Corporation, and Lakes Pawnee
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.112</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between the Pawnee Chilocco Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.113</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indemnity Agreement by and between the Pawnee Chilocco Gaming
    Corporation, a wholly-owned subsidiary of the Pawnee Tribal
    Development Corporation, and Lakes Pawnee Management, LLC, a
    Minnesota limited liability company, dated January&nbsp;12, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.114</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Gaming Operations Consulting Agreement by and between KTTT
    Enterprises, a wholly-owned subsidiary of and a governmental
    instrument of the Kickapoo Traditional Tribe of Texas, a
    federally-recognized Indian Tribe, and Lakes Kickapoo
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.115</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement by and between Kickapoo Traditional Tribe of
    Texas, a federally-recognized Indian Tribe, and Lakes Kickapoo
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.116</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    KTTT Note by KTTT Enterprises, a wholly-owned subsidiary of and
    a governmental instrument of the Kickapoo Traditional Tribe of
    Texas, a federally recognized Indian Tribe, in favor of Lakes
    Kickapoo Consulting, LLC, a Minnesota limited liability company,
    dated January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.117</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between KTTT Enterprises, a
    wholly-owned subsidiary of and a governmental instrument of the
    Kickapoo Traditional Tribe of Texas, a federally-recognized
    Indian Tribe, and Lakes Kickapoo Consulting, LLC, a Minnesota
    limited liability company, dated January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.118</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement by and between Kickapoo Traditional Tribe of
    Texas, a federally-recognized Indian Tribe, and Lakes Kickapoo
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.119</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement for a Gaming Facility and Related Ancillary
    Facilities by and between KTTT Enterprises, a wholly-owned
    subsidiary of and a governmental instrument of the Kickapoo
    Traditional Tribe of Texas, a federally-recognized Tribe, in
    favor of Lakes Kickapoo Management, LLC, a Minnesota limited
    liability company, dated January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.120</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Note by KTTT Enterprises, a wholly-owned subsidiary of
    and a governmental instrument of the Kickapoo Traditional Tribe
    of Texas, a federally-recognized Indian Tribe, in favor of Lakes
    Kickapoo Management, LLC, a Minnesota limited liability company,
    dated January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.121</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement by and between KTTT Enterprises, a
    wholly-owned subsidiary of and a governmental instrument of the
    Kickapoo Traditional Tribe of Texas, a federally-recognized
    Indian Tribe, and Lakes Kickapoo Management, LLC, a Minnesota
    limited liability company, dated January&nbsp;19, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.122</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Gaming Development Consulting Agreement (Cimarron Casino) by and
    among the Iowa Tribe of Oklahoma, a federally-chartered
    corporation, the Iowa Tribe of Oklahoma, a federally-recognized
    Indian tribe, and Lakes Iowa Consulting, LLC, a Minnesota
    limited liability company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.123</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Iowa Corp Note (Cimarron Casino) by the Iowa Tribe of Oklahoma,
    a federally-chartered corporation, and Lakes Iowa Consulting,
    LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">128

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.124</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement (Cimarron Casino) by and between
    the Iowa Tribe of Oklahoma, a federally-chartered corporation,
    and Lakes Iowa Consulting, LLC, a Minnesota limited liability
    company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.125</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement (Cimarron Casino) by and among the Iowa Tribe
    of Oklahoma, a federally-chartered corporation, the Iowa Tribe
    of Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.126</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement (Cimarron Casino) by and between the Iowa Tribe
    of Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.127</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement for a Gaming Facility and Related Ancillary
    Facilities (Cimarron Casino) by and among the Iowa Tribe of
    Oklahoma, a federally-chartered corporation, the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.128</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Note (Cimarron Casino) by the Iowa Tribe of Oklahoma,
    a federally-chartered corporation, in favor of Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.129</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement (Cimarron Casino) by and between
    the Iowa Tribe of Oklahoma, a federally-chartered corporation,
    and Lakes Iowa Managment, LLC, a Minnesota limited liability
    company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.130</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement (Cimarron Casino) by and among the Iowa Tribe
    of Oklahoma, a federally-chartered corporation, the Iowa Tribe
    of Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.131</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indemnity Agreement (Cimarron Casino) by and among the Iowa
    Tribe of Oklahoma, a federally-chartered corporation, the Iowa
    Tribe of Oklahoma, a federally-recognized Indian tribe, and
    Lakes Iowa Management, LLC, a Minnesota limited liability
    company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.132</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement (Cimarron Casino) by and between the Iowa Tribe
    of Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.133</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Gaming Development Consulting Agreement (New Project) by and
    among the Iowa Tribe of Oklahoma, a federally-chartered
    corporation, the Iowa Tribe of Oklahoma, a federally-recognized
    Indian tribe, and Lakes Iowa Consulting, LLC, a Minnesota
    limited liability company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.134</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Iowa Corp Note (New Project) by the Iowa Tribe of Oklahoma, a
    federally-chartered corporation, in favor of Lakes Iowa
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.135</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement (New Project) by and between the
    Iowa Tribe of Oklahoma, a federally-chartered corporation, and
    Lakes Iowa Consulting, LLC, a Minnesota limited liability
    company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.136</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement (New Project) by and among the Iowa Tribe of
    Oklahoma, a federally-chartered corporation, the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.137</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement (New Project) by and between the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Consulting, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.138</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Management Agreement for a Gaming Facility and Related Ancillary
    Facilities (New Project) by and among the Iowa Tribe of
    Oklahoma, a federally-chartered corporation, the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.139</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Operating Note (New Project) by the Iowa Tribe of Oklahoma, a
    federally-chartered corporation, in favor of Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">129

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; ">

<TR style="font-size: 1pt;">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Exhibits</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Description</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.140</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Dominion Account&nbsp;Agreement (New Project) by and between the
    Iowa Tribe of Oklahoma, a federally-chartered corporation, and
    Lakes Iowa Management, LLC, a Minnesota limited liability
    company, dated January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.141</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Security Agreement (New Project) by and among the Iowa Tribe of
    Oklahoma, a federally-chartered corporation, the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.142</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Indemnity Agreement (New Project) by and among the Iowa Tribe of
    Oklahoma, a federally-chartered corporation, the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.143</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Tribal Agreement (New Project) by and between the Iowa Tribe of
    Oklahoma, a federally-recognized Indian tribe, and Lakes Iowa
    Management, LLC, a Minnesota limited liability company, dated
    January&nbsp;27, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.144</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Letter agreement by and between Metroflag Polo, LLC and Grand
    Casinos Nevada&nbsp;I, Inc., dated March&nbsp;17, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.145</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    First Amendment to Loan and Security Agreement by and among
    Lakes California Land Development, Inc., Lakes Entertainment,
    Inc., Lakes Shingle Springs, Inc., Lakes Jamul, Inc., Lakes KAR
    Shingle Springs, LLC, Lakes Kean Argovitz Resorts-California,
    LLC and collectively, Lakes Pawnee Consulting, LLC, Lakes Pawnee
    Management, LLC, Lakes Kickapoo Consulting, LLC, Lakes Kickapoo
    Management, LLC, Lakes Iowa Consulting, LLC, Lakes Iowa
    Management, LLC, and Kevin Kean, a resident of the state of
    Nevada, dated June&nbsp;2, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.146</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consulting Agreement by and among Kevin M. Kean, Lakes Kickapoo
    Consulting, LLC, a Minnesota limited liability company and Lakes
    Kickapoo Management, LLC, a Minnesota limited liability company,
    dated June&nbsp;2, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.147</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consulting Agreement by and among Kevin M. Kean, Lakes Pawnee
    Consulting, LLC a Minnesota limited liability company, and Lakes
    Pawnee Management, LLC, a Minnesota limited liability company,
    dated June&nbsp;2, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>10</TD>
    <TD align="left" valign="top" nowrap>.148</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consulting Agreement by and among Kevin M. Kean, Lakes Iowa
    Consulting, LLC, a Minnesota limited liability company, and
    Lakes Iowa Management, LLC, a Minnesota limited liability
    company, dated June&nbsp;2, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Subsidiaries of the Company.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Consent of Independent Registered Public Accounting Firm dated
    November&nbsp;30, 2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>31</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of Chief Executive Officer under Section&nbsp;302
    of the Sarbanes-Oxley Act</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>31</TD>
    <TD align="left" valign="top" nowrap>.2</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of Chief Financial Officer under Section&nbsp;302
    of the Sarbanes-Oxley Act</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>32</TD>
    <TD align="left" valign="top" nowrap>.1</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
    Certification of Chief Executive Officer and Chief Financial
    Officer under Section&nbsp;906 of the Sarbanes-Oxley Act</TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left" style="font-size: 3pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<DIV style="width: 18%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top">
    <TD>*&nbsp;</TD>
    <TD align="left">
    Management Compensatory Plan or Arrangement</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>**&nbsp;</TD>
    <TD align="left">
    Confidential treatment has been requested as to certain portions
    of this exhibit pursuant to Rule&nbsp;406 of the Securities Act
    of 1933, as amended.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">130

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of Section&nbsp;13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    LAKES ENTERTAINMENT, INC.</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I>Registrant</I></TD>
</TR>

</TABLE>

<DIV style="margin-top: 48pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ LYLE BERMAN</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Name:&nbsp;Lyle Berman</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="8%"></TD>
    <TD width="52%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD align="left">
    Chairman of the Board and</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Chief Executive Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
Dated as of December&nbsp;1, 2005
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of the registrant and in the capacities indicated as
of November&nbsp;30, 2005.
</DIV>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0" style="font-size: 10pt; margin-top: 6pt; ">

<TR style="font-size: 1pt;">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="39%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>


<TR style="font-size: 8pt;">
    <TD colspan="3" align="center" nowrap><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Title</B></TD>
</TR>

<TR valign="bottom" style="font-size: 1px">
    <TD colspan="3" align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap style="border-top: 1pt solid #000000;">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Lyle Berman<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Lyle
    Berman</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chairman of the Board and Chief Executive Officer (Principal
    Executive Officer)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Timothy J. Cope<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Timothy
    J. Cope</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Chief Financial Officer and Director<BR>
    (Principal Financial and Accounting Officer)</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Morris Goldfarb<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Morris
    Goldfarb</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Ronald Kramer<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Ronald
    Kramer</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Ray Moberg<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Ray
    Moberg</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    /s/ Neil I. Sell<BR>
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt;">&nbsp;</DIV>Neil
    I. Sell</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">
    Director</TD>
</TR>

</TABLE>
</CENTER>

<P align="center" style="font-size: 10pt;">131

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="left" style="font-size: 12pt; margin-top: 9pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>SHAREHOLDER INFORMATION</B>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Corporate Headquarters</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>130 Cheshire Lane, Suite 101</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Minnetonka, MN 55305</B>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Transfer Agent and Registrar</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Wells Fargo Bank Minnesota, N.A.</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Shareowner Services</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>P.O. Box 64854</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>St. Paul, MN 55164-0854</B>
</DIV>

<DIV align="left" style="font-size: 12pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Form 10-K</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Form 10-K filed with the Securities and Exchange Commission
is available without charge upon written Request. Requests
should be sent to:</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Lakes Entertainment, Inc.</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>130 Cheshire Lane, Suite 101</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Minnetonka, MN 55305</B>
</DIV>

<DIV align="left" style="font-size: 10pt;">
<B>Attention: Chief Financial Officer</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 216pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">

</DIV>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.67
<SEQUENCE>2
<FILENAME>c92713exv10w67.htm
<DESCRIPTION>SETTLEMENT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w67</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit 10.67</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SETTLEMENT AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Settlement Agreement is dated as of December 1 &#95;&#95;&#95;, 2004 &#091;initial&#093; and is entered into by and
between Lakes Entertainment, inc. (&#147;Lakes&#148;), on the one hand, and Grand Casinos, Inc. (&#147;Grand&#148;)
and Park Place Entertainment Corporation (now known as Caesars Entertainment, Inc.) (&#147;Park
Place&#148;), on the other hand. Lakes, Grand and Park Place are collectively referred to herein as the
&#147;Parties.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Lakes and Grand entered into a Tax Allocation And Indemnity Agreement, dated
December&nbsp;31, 1998 (the &#147;Tax Allocation Agreement&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, all capitalized terms not otherwise defined herein shall have the meaning specified
by the Tax Allocation Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, on or about July&nbsp;16, 2003, Lakes filed a complaint against Grand and Park Place in
the action styled <I>Lakes Entertainment, Inc. v. Grand Casinos, Inc., Park Place Entertainment
Corporation, and John Doe Corporations 1-20, </I>No.&nbsp;03-13249, in the District Court, Fourth Judicial
District, County of Hennepin, State of Minnesota, seeking money allegedly owed to Lakes under the
Tax Allocation Agreement (the &#147;Lawsuit&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, on or about March&nbsp;22, 2004, the Parties entered into an Arbitration Agreement
wherein they agreed to dismiss the Lawsuit and submit to final, binding arbitration all claims
that had been asserted by Lakes against Grand and/or Park Place in the Lawsuit; all compulsory
counterclaims in the Lawsuit; and all other claims or defenses that relate to the sharing of the
Stratosphere Tax Benefits and/or to Lakes&#146; right to receive Income Tax Benefits resulting from the
unamortized costs associated with the original issuance of the Senior Notes or the Mortgage Notes
(the &#147;Issuance Cost Benefits&#148;) that have been or could have been asserted by Lakes, Grand and/or
Park Place in the Lawsuit (the &#147;Arbitration Claims&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, to avoid the costs and uncertainties of further litigation, and without admission by
any Party as to any wrongdoing, liability or damage or as to any validity of any claims of any
other Party, the Parties have now agreed to resolve the Arbitration Claims in their entirety;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the covenants and mutual promises set forth herein and
other good and valuable consideration, the sufficiency and receipt of which are hereby mutually
acknowledged by the Parties, and intending to be legally bound, the Parties agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Settlement payment.</U> Within ten (10)&nbsp;business days of the date of this Agreement,
Park Place shall pay Lakes the sum of Eleven Million Two Hundred Fifty Thousand Dollars
($11,250,000) by wire transfer to the following account US Bank, Minneapolis, MN, ABA # 091000022,
For Credit to Lakes Entertainment, Inc., Account # 104755886546.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Releases and Indemnity.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;<U>Lakes Release of Grand and Park Place Releasees.</U> Lakes hereby fully and
completely releases, discharges, covenants not to sue, and acquits Grand and Park Place and
each of their predecessors, successors, assigns, parents, subsidiaries, affiliates, principals,
owners, partners, shareholders, trustees, directors, officers, employees, agents and representatives
thereof (the &#147;Grand and Park Place Releasees&#148;) from the Arbitration Claims and any and all demands,
rights, obligations, liabilities, damages, losses, costs, expenses, attorneys&#146; fees and causes
of action, whether now known or unknown, suspected or unsuspected, fixed or contingent, that
Lakes ever had, now has, or hereafter can, shall or may have from the beginning of time to the
date hereof against the Grand and Park Place Releasees relating to the Arbitration Claims;
provided, however, nothing in this release shall be deemed to affect the enforceability of
this Settlement Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;<U>Grand and Park Place Release of Lake Releasees.</U> Grand and Park Place hereby
fully and completely release, discharge, covenant not to sue, and acquit Lakes and its
predecessors, successors, assigns, parents, subsidiaries, affiliates, principals, owners,
partners, shareholders, trustees, directors, officers, employees, agents and representatives thereof
(the &#147;Lakes Releasees&#148;) from the Arbitration Claims and any and all demands, rights, obligations,
liabilities, damages, losses, costs, expenses, attorneys&#146; fees and causes of action, whether
now known or unknown, suspected or unsuspected, fixed or contingent, that Grand and/or Park Place
ever had, now has, or hereafter can, shall or may have from the beginning of time to the date
hereof against the Lakes Releasees relating to the Arbitration
Claims; <U>provided</U>, <U>however</U>,
nothing in this release shall be deemed to affect the enforceability of this Settlement
Agreement, including without limitation Grand and/or Park Place&#146;s right to seek reimbursement from Lakes
pursuant to Paragraph&nbsp;3 below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Reimbursement By Lakes In The Event Of Bona Fide IRS Disallowance.</U> In the
event that there is a bona fide disallowance by the Internal Revenue Service (&#147;IRS&#148;) of any
deduction relating to the Stratosphere Tax Benefits or the Issuance Cost Benefits, Lakes
agrees that within thirty (30)&nbsp;days of being provided written notice of such disallowance it will
reimburse Grand and/or Park Place its proportionate share of the disallowed Income Tax
Benefit. For purposes of this agreement, a &#147;bona fide disallowance&#148; is a disallowance based on a Final
Determination that the specific deduction is substantively inconsistent with law, and not
based on (i)&nbsp;any purported failure by Grand and/or Park Place to seek the deduction in a timely
fashion, or (ii)&nbsp;any agreement by Grand and/or Park Place to forego or compromise the deduction in
exchange for IRS allowance of a different deduction. For purposes of determining the amount of
any such reimbursement, the Parties agree that the $11.25&nbsp;million settlement payment herein is
allocated between the Income Tax Benefits at issue as follows: (a) $8.825&nbsp;million is allocated
to the Stratosphere Tax Benefits; and (b) $2.425&nbsp;million is allocated to the Issuance Cost
Benefits. Accordingly, the Parties agree that: (a)&nbsp;for each dollar of Stratosphere Tax
Benefits-related deductions lost by Park Place/Grand due to a bona
fide disallowance, Lakes shall reimburse
Park Place 12.3 cents (up to a total of not more than $8,825,000.00); and (b)&nbsp;for each dollar of
Issuance Cost Benefits-related deductions lost by Park Place/Grand due to a bona fide
disallowance, Lakes shall reimburse Park Place 24.6 cents (up to a total of not more than
$2,425,000.00).
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Lakes&#146; Obligation To Cooperate.</U> Lakes agrees to provide documents and
continue to otherwise cooperate with Grand and Park Place, as needed, in connection with Grand
and Park Place&#146;s efforts to obtain allowance of the deductions relating to the Stratosphere
Tax Benefits or the Issuance Cost Benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Lakes&#146; Entitlement To Participate.</U> Grand and Park Place agree that Lakes shall
have all rights provided by Section 9(e) of the Tax Allocation Agreement to participate in any
Tax Authority examinations or reviews that may affect in any way the Stratosphere Tax Benefits
and/or the Issuance Cost Benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Treatment of settlement payment.</U> The settlement payment made to Lakes
pursuant to Paragraph&nbsp;1 herein shall be treated by all Parties for tax purposes as a
non-taxable capital contribution. Accordingly, neither Grand, Park Place nor any members of their
Affiliated Group shall take a tax deduction for any part of the settlement payment on their tax returns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Refund of Income Tax Benefits from Settlement Payments.</U> If Grand, Park Place
or their Affiliated Group receives any Income Tax Benefits as a result of the settlement
payment hereunder, all such Income Tax Benefits shall be paid to Lakes. Payment of such Income Tax
Benefits shall be made in accordance with the provisions of Section&nbsp;8 of the Tax Allocation
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Arbitration.</U> The Parties agree that any and all disputes with respect to this
Settlement Agreement shall be resolved in binding arbitration conducted and administered by
Richard B. Solum of Dorsey &#038; Whitney. Mr.&nbsp;Solum&#146;s arbitration decision and award shall be
final and binding and shall be subject to judicial review only in accordance with the
standards of the Minnesota Arbitration Act. A judgment may be entered on Mr.&nbsp;Solum&#146;s arbitration decision
and award by a court in Minnesota. Mr.&nbsp;Solum&#146;s arbitration fees and expenses, along with the
reasonable legal fees and expenses of the prevailing party (including all expert witness fees
and expenses), the fees and expenses of a court reporter and any expenses for a hearing room shall
be paid by the losing party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Understanding
of Agreement.</U> The Parties expressly acknowledge and represent
to each other that they are competent to execute this Settlement Agreement and have done so
voluntarily. The Parties further represent that they have read this Settlement Agreement
carefully and understand its terms and conditions without reservation. The Parties
acknowledge that they have had ample opportunity to consult with legal advisors and/or counsel of their
choice regarding this Settlement Agreement, that they have not relied on any representations
or statements of any other party or its respective counsel or advisors in connection with
entering into this Settlement Agreement and that they have been represented and advised by counsel
concerning the terms and conditions of this Settlement Agreement as well as their execution
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>Entire Agreement.</U> This Settlement Agreement sets forth the entire understanding
and agreement between the Parties with respect to the subject matter hereof and supersedes all
prior and contemporaneous agreements, arrangements and understandings related thereto.
</DIV>

<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>Written Amendments.</U> This Settlement Agreement may be amended, superseded
or canceled only by a written instrument which specifically states that it amends, supersedes
or cancels this Settlement Agreement, executed and delivered by the party to be bound.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>Interpretation of this Agreement.</U> The Parties agree that the rule of
construction that questions of interpretation of a contract will be resolved against the drafter of the
contract will have no application to questions arising with respect to terms of this Settlement
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>Authority to Bind.</U> The Parties warrant and represent that the signatories on their
behalf have the authority and power to bind them to all terms, conditions and provisions of
this Settlement Agreement. The Parties each further represent and warrant that no claims of any
kind that any of them have, may have had, or may have against the other have been assigned to any
other person or entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Binding Effect.</U> All of the provisions hereof shall be binding upon and shall inure
to the benefit of the Parties and their respective representatives, successors and permitted
assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U>Choice of Law.</U> This Settlement Agreement shall be governed and construed
under the laws of the State of Minnesota without giving effect to the choice of law rules
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;<U>Counterparts.</U> This Settlement Agreement may be executed in counterparts, each
of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same Settlement Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Parties have executed this Settlement Agreement as of the date first
above written with the intent to be legally bound hereby.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">LAKES ENTERTAINMENT, INC.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">GRAND CASINOS, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">Timothy Cope
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">Bernard Delury</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Timothy Cope
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bernard Delury</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Title:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President / CEO
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sr. Vice President</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CAESARS ENTERTAINMENT, INC.
(formerly known as PARK PLACE ENTERTAINMENT CORPORATION)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">Bernard Delury</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bernard Delury</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">4
</DIV>


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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.68
<SEQUENCE>3
<FILENAME>c92713exv10w68.htm
<DESCRIPTION>LETTER AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w68</TITLE>
</HEAD>
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit 10.68</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">December&nbsp;14, 2004
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Grand Casinos Nevada I, Inc.<BR>
c/o Lakes Entertainment, Inc.<BR>
130 Cheshire Lane<BR>
Minnetonka, MN 55305
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>RE:Metroflag Polo, LLC Operating Agreement; Option Agreements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter serves to confirm our agreement as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Delay of Special Member Subordinated Interest Repurchase</U>. Pursuant to Section
15.1(a) of the Operating Agreement of Metroflag Polo, LLC, as amended by a First Amendment dated as
of May&nbsp;15, 2003 (the &#147;Agreement&#148;), upon payment in full of the Travelodge Purchase Note or the
Travelodge Deficit Note (collectively the &#147;Notes&#148;), the Special Member Subordinated Interest
Repurchase is required to occur within sixty (60)&nbsp;days of such payment. Notwithstanding the
provisions of Section&nbsp;15.1(a) or any other provisions of the Agreement to the contrary, if the
Notes are paid in full on or before December&nbsp;31, 2004, then the closing of the Special Member
Subordinated Interest Repurchase shall occur on or before June&nbsp;30, 2005; provided, however, that if
the Company provides at least thirty (30)&nbsp;days written notice to the Special Member prior to June
30, 2005, and also pays $20,000 in cash to the Special Member before that date, the Company shall
have the absolute right to extend the time for closing of the Special Member Subordinated Interest
Repurchase to a date on or before December&nbsp;31, 2005. The Special Member Subordinated Return shall
continue to accrue until the closing of the Special Member Subordinated Interest Repurchase is
completed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Termination of 2001 Option Agreement</U>. In the event the Notes are paid in full on
or before December&nbsp;31, 2004, all rights of Lakes Entertainment, Inc. (formerly called Lakes Gaming,
Inc.) under that certain Option Agreement between Metroflag BP, LLC and Lakes Gaming, Inc. dated
December&nbsp;28, 2001, as subsequently amended (the &#147;2001 Option Agreement&#148;), shall terminate. Lakes
Entertainment, Inc. (&#147;Lakes&#148;) shall, simultaneously with such repayment of the Notes, deliver to
Metroflag BP, LLC an instrument in recordable form acknowledging the termination of the 2001 Option
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Membership Interests Purchase Option</U>. The Members acknowledge that the 2001 Option
Agreement was entered into in part as security for the timely closing of the Special Member
Subordinated Interest Repurchase. If Lakes terminates the 2001 Option Agreement pursuant to the
preceding Section&nbsp;2, Metro One, LLC and Flag Luxury Polo, LLC (as the &#147;Members&#148; under the
Agreement) each hereby grants to Lakes, or its successors and assigns, the right and option to
purchase such Member&#146;s respective Member Interest for a purchase price equal to $1.00 for each such
Member Interest, at any time during the five (5)&nbsp;year period beginning on the final due date for
the closing of the Special Member Subordinated Interest Repurchase under Section&nbsp;1 above; provided,
</DIV>

<P align="center" style="font-size: 10pt">1
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">however, that the following conditions shall have been satisfied before such purchase may be
completed:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall have breached its obligation under Section&nbsp;15.1(a) of the
Agreement to complete the Special Member Subordinated Interest Repurchase by the final due
date provided under Section&nbsp;1 above; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Lakes shall have given the Company and the Members a written notice of Lakes&#146;
intention to exercise its option to purchase their Member Interests under this Section&nbsp;3 on
a specified date at least three (3)&nbsp;months after the date the Company has received such
notice;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provided further that such Member Interests purchase option shall have no force or effect: (i)&nbsp;if
the Special Member Subordinated Interest Repurchase is completed before or during such three-month
period; and (ii)&nbsp;if the Company has also breached its obligation under the Agreement to complete
the Special Member Priority Interest Repurchase before the beginning of such three-month period,
the Special Member Priority Interest Repurchase is also completed during such three-month period.
Notwithstanding anything in the Agreement to the contrary, any failure of the Company to complete
the Special Member Subordinated Interest Repurchase shall not, solely for purposes of Section
14.3(b) of the Agreement, constitute a material breach of the Company&#146;s obligations under the
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Company&#146;s Right to Redeem Unaltered</U>. Nothing contained herein is intended to
affect the Company&#146;s right to redeem the Special Member Subordinated Interest or the Special Member
Priority Interest (at par plus the respective accrued return) at any time irrespective of whether
the Special Member shall have at such time the right to demand such redemption.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Confirmation of Agreement</U>. Except to the extent amended by this letter agreement,
the Agreement remains in full force and effect. All terms not otherwise defined herein shall have
the meanings ascribed to them in the Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;SIGNATURE PAGE FOLLOWS&#093;
</DIV>


<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby agree as set forth above.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Metro One, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">Brett Torino</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Brett Torino, Manager</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Flag Luxury Polo, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Flag Luxury Properties, LLC, its sole member</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Flag Leisure Group, LLC, its managing member</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">Paul Kanavos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paul Kanavos, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Grand Casinos Nevada I, Inc.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">Timothy Cope</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Timothy Cope, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Metroflag BP, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">Paul Kanavos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Paul Kanavos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Lakes Entertainment, Inc.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>

<TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">Timothy Cope</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Timothy Cope, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby consents to the foregoing agreement of its Members and Lakes Entertainment,
Inc.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD colspan="6" valign="top" align="left"><B>Metroflag Polo, LLC</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD colspan="6" valign="top" align="left">By its Member:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Metro One, LLC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">Brett Torino</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Brett Torino, Manager</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.69
<SEQUENCE>4
<FILENAME>c92713exv10w69.txt
<DESCRIPTION>SECOND AMENDED/RESTATED MANAGEMENT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.69

                                                               EXECUTION VERSION

                           SECOND AMENDED AND RESTATED

                              MANAGEMENT AGREEMENT

                                   BETWEEN THE

                       POKAGON BAND OF POTAWATOMI INDIANS

                                       AND

    GREAT LAKES GAMING OF MICHIGAN, LLC, (F/K/A GREAT LAKES OF MICHIGAN, LLC)

                          DATED AS OF DECEMBER 22, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>             <C>                                                           <C>
1. RECITALS ...............................................................    1
2. DEFINITIONS ............................................................    3
                Agreement .................................................    3
                Agreements ................................................    3
                Affiliate .................................................    3
                Assignment and Assumption Agreement .......................    3
                Band Event of Default .....................................    3
                Band Gaming Ordinance .....................................    3
                Band Interest Rate ........................................    3
                Band Representatives ......................................    3
                Band Working Capital Advances .............................    3
                Bank Closing ..............................................    3
                Bank Lender ...............................................    4
                Bank Loan .................................................    4
                BIA .......................................................    4
                Business Board ............................................    4
                Buy-Out Option ............................................    4
                Calculation Year ..........................................    4
                Capital Budget ............................................    4
                Capital Replacements ......................................    4
                Capital Replacement Reserve ...............................    4
                Change of Control .........................................    4
                Class II Gaming ...........................................    4
                Class III Gaming ..........................................    4
                Collateral Agreements .....................................    4
                Commencement Date .........................................    4
                Compact ...................................................    4
                Compensation ..............................................    4
                Confidential Information ..................................    5
                Constitution ..............................................    5
                Corporate Commission ......................................    5
                CRC .......................................................    5
                Development Agreement .....................................    5
                Development Expenditures ..................................    5
                Disbursement Account ......................................    5
                Dominion Account ..........................................    5
                Dominion Agreement ........................................    5
                Effective Date ............................................    5
                Emergency Condition .......................................    5
                Enterprise ................................................    5
                Enterprise Accounts .......................................    6
                Enterprise Employee .......................................    6
                Enterprise Employee Policies ..............................    6
</TABLE>


                                       ii

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
                Enterprise Investment Policy ..............................    6
                Equipment Lender ..........................................    6
                Equipment Loan ............................................    6
                Facility ..................................................    6
                Financial Support .........................................    6
                Fiscal Year ...............................................    6
                Furnishings and Equipment .................................    6
                Gaming ....................................................    7
                Gaming Regulatory Authority or GRA ........................    7
                Gaming Site ...............................................    7
                Guaranty Reserve ..........................................    7
                General Manager ...........................................    7
                Generally Accepted Accounting Principles or GAAP ..........    7
                Governmental Action .......................................    7
                Great Lakes ...............................................    7
                Gross Gaming Revenue (Win) ................................    7
                Gross Revenues ............................................    7
                House Bank ................................................    8
                IGRA ......................................................    8
                Insider ...................................................    8
                Internal Control Systems ..................................    8
                Lakes .....................................................    8
                Lakes Certification .......................................    8
                Lakes Development Loan ....................................    8
                Lakes Development Note ....................................    8
                Lakes Facility Loan .......................................    8
                Lakes Facility Note .......................................    8
                Lakes Refinancing Guaranty ................................    8
                Lakes Security Agreement ..................................    8
                Lakes Working Capital Advance Note ........................    8
                Lakes Working Capital Advances ............................    8
                Legal Requirements ........................................    9
                Limited Recourse ..........................................    9
                Loans .....................................................    9
                Local Agreement ...........................................    9
                Manager ...................................................    9
                Manager's Internal Expenses ...............................    9
                Manager's Representatives .................................   10
                Management Agreement ......................................   10
                Management Fee ............................................   10
                Manager Event of Default ..................................   10
                Managing Officer ..........................................   10
                Marks .....................................................   10
                Material Adverse Change ...................................   10
                Material Breach ...........................................   10
                Member of the Band Government .............................   10
</TABLE>


                                       iii

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
                Minimum Balance ...........................................   10
                Minimum Guaranteed Monthly Payment ........................   10
                Minimum Guaranteed Payment Advances .......................   10
                Minimum Payment Note ......................................   10
                Monthly Distribution Payment ..............................   10
                National Indian Gaming Commission or NIGC .................   11
                Net Revenues ..............................................   11
                Net Revenues (gaming) .....................................   11
                Net Revenues (other) ......................................   11
                New Pokagon Council .......................................   12
                NIGC Approval .............................................   12
                Non-Gaming Land Acquisition Line of Credit ................   12
                Operating Budget and Annual Plan ..........................   12
                Operating Expenses ........................................   12
                Operating Supplies ........................................   14
                Permitted Taxes ...........................................   14
                Plans and Specifications ..................................   14
                Pokagon Council ...........................................   14
                Pokagon Fund ..............................................   14
                Pre-Opening Budget ........................................   14
                Pre-Opening Expenses ......................................   14
                Project ...................................................   14
                Promotional Allowances ....................................   14
                Relative ..................................................   14
                Remaining Loan Availability Amount ........................   14
                Reserve Amount ............................................   14
                Restoration Act ...........................................   14
                Restricted Territory ......................................   14
                Specific Performance Restriction ..........................   14
                State .....................................................   15
                Subsequent Gaming Facility Revenues .......................   15
                Term ......................................................   15
                Transition Loan Note ......................................   15
                Tribal Distributions ......................................   15

3. ENGAGEMENT; BUSINESS BOARD; COMPLIANCE .................................   15
Section 3.1     Engagement of Manager .....................................   15
Section 3.2     Term ......................................................   15
Section 3.3     Status of Gaming Site .....................................   17
Section 3.4     Creation and Operation of Business Board ..................   17
Section 3.5     Manager Compliance with Law; Licenses .....................   18
Section 3.6     Compliance with Compact ...................................   18
Section 3.7     Fire and Safety ...........................................   18
Section 3.8     Compliance with the National Environmental Policy Act .....   18
Section 3.9     Commencement Date .........................................   18
</TABLE>


                                       iv

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
4. BUSINESS AND AFFAIRS OF THE ENTERPRISE .................................   18
Section 4.1     Manager's Authority and Responsibility ....................   18
Section 4.2     Duties of Manager .........................................   18
                Physical Duties ...........................................   18
                Compliance with Band Ordinances ...........................   19
                Required Filings ..........................................   19
                Contracts in Band's Name Doing Business as the Enterprise
                and at Arm's Length .......................................   19
                Enterprise Operating Standards ............................   19
                Security ..................................................   19
Section 4.3     Damage, Condemnation or Impossibility of the Enterprise ...   19
Section 4.4     Alcoholic Beverages and Tobacco Sales .....................   19
Section 4.5     Employees .................................................   20
                Manager's Responsibility ..................................   20
                Enterprise Employee Policies ..............................   20
                Senior Employees ..........................................   21
                Enterprise Employees ......................................   21
                Removal of Employees ......................................   21
                Band Employees ............................................   21
Section 4.6     No Manager Internal Expenses; Limitation on Manager
                Payments ..................................................   21
Section 4.7     GRA Expenses ..............................................   21
Section 4.8     Employee Background Checks ................................   22
Section 4.9     Indian Preference .........................................   22
                Indian Preference .........................................   22
                Local Preference ..........................................   23
                Final Determination .......................................   23
Section 4.10    Pre-Opening ...............................................   23
Section 4.11    Operating Budget and Annual Plan ..........................   23
                Adjustments to Operating Budget and Annual Plan and Capital
                Budget ....................................................   25
Section 4.12    Capital Budgets ...........................................   25
Section 4.13    Capital Replacements ......................................   26
Section 4.14    Capital Replacement Reserve ...............................   26
Section 4.15    Periodic Contributions to Capital Replacement Reserve .....   27
Section 4.16    Use and Allocation of Capital Replacement Reserve .........   27
Section 4.18    Internal Control Systems ..................................   27
Section 4.19    Banking and Bank Accounts .................................   28
                Enterprise Accounts .......................................   28
                Daily Deposits to Dominion Account ........................   28
                Disbursement Accounts .....................................   28
                No Cash Disbursements .....................................   29
                Transfers Between Accounts ................................   29
                Transfers from Dominion Account to Disbursement Accounts ..   29
Section 4.20    Insurance .................................................   29
Section 4.21    Accounting and Books of Account ...........................   30
                Statements ................................................   31
</TABLE>


                                        v

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
                Books of Account ..........................................   31
                Accounting Standards ......................................   31
Section 4.22    Annual Audit ..............................................   32
Section 4.23    Manager's Contractual Authority ...........................   32
Section 4.24    Retail Shops and Concessions ..............................   32
Section 4.25    Entertainment Approvals ...................................   32
Section 4.26    Litigation ................................................   32

5. MANAGEMENT FEE, DISBURSEMENTS, AND OTHER PAYMENTS BY MANAGER ...........   33
Section 5.1     Management Fee ............................................   33
Section 5.2     Fee Subordinated ..........................................   33
Section 5.3     Disbursements .............................................   33
Section 5.4     Adjustment to Bank Account ................................   34
Section 5.5     Payment of Fees and Band Disbursement .....................   34
Section 5.6     Minimum Guaranteed Monthly Payment ........................   35
Section 5.7     Payment of Net Revenues ...................................   36
Section 5.8     Harrah's Termination Agreement ............................   36
Section 5.9     Band Indemnification - Indiana Casino .....................   36
Section 5.10    Maximum Dollar Amount for Recoupment ......................   37

6. ENTERPRISE NAME; MARKS .................................................   37
Section 6.1     Enterprise Name ...........................................   37
Section 6.2     Marks .....................................................   37
Section 6.3     Signage ...................................................   37

7. TAXES ..................................................................   37
Section 7.1     State and Local Taxes .....................................   37
Section 7.2     Band Taxes ................................................   37
Section 7.3     Compliance with Internal Revenue Code .....................   38

8. BUY-OUT OPTION .........................................................   38

9. EXCLUSIVITY; NON-COMPETITION ...........................................   38
Section 9.1     Exclusivity in Michigan ...................................   38
Section 9.2     Indiana Casino ............................................   38
Section 9.3     Non-Competition ...........................................   38
Section 9.4     Permitted Assignment; Change of Control ...................   39
Section 9.5     Restrictions on Collateral Development ....................   40

10. REPRESENTATIONS, WARRANTIES AND COVENANTS .............................   40
Section 10.1    Representations and Warranties of the Band ................   40
                Due Authorization .........................................   40
                Valid and Binding .........................................   40
                Pending Litigation ........................................   40
Section 10.2    Band Covenants ............................................   41
</TABLE>


                                       vi

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
                No Impairment of Contract .................................   41
                Waiver of Sovereign Immunity ..............................   41
                Valid and Binding .........................................   41
                Legal Compliance ..........................................   41
                No Termination ............................................   41
                Title to Assets ...........................................   41
Section 10.3    Representations and Warranties of Manager and Lakes .......   42
                Due Authorization .........................................   42
                Valid and Binding .........................................   42
                Litigation ................................................   42
                Certifications ............................................   42
Section 10.4    Manager Covenants .........................................   43
                Noninterference in Band Affairs ...........................   43
                Prohibition of Payments to Members of Band Government .....   43
                Prohibition of Hiring Members of Band Government ..........   43
                Prohibition of Financial Interest in Enterprise ...........   43
                No Amendment ..............................................   43
                CRC .......................................................   43
Section 10.5    No Liens ..................................................   44
Section 10.6    Permitted Liens ...........................................   44
Section 10.7    Brokerage .................................................   45

11. DEFAULT ...............................................................   45
Section 11.1    Events of Default by the Band .............................   45
Section 11.2    Events of Default by Manager ..............................   46
Section 11.3    Material Breach; Right to Cure ............................   46

12. TERMINATION ...........................................................   47
Section 12.1    Voluntary Termination .....................................   47
Section 12.2    Termination of No NIGC Approval ...........................   47
Section 12.3    Manager Right to Terminate on Band Event of Default .......   47
Section 12.4    Band Right to Terminate on Manager Event of Default .......   47
Section 12.5    Band Right to Terminate for Material Adverse Change .......   47
Section 12.6    Termination if Manager License Withdrawn or on Conviction .   49
Section 12.7    Termination on Buy-Out ....................................   49
Section 12.8    Involuntary Termination Due to Changes in Legal
                Requirements ..............................................   49

13. DISPUTE RESOLUTIONS; LIQUIDATED DAMAGES ...............................   50
Section 13.1    Band's Waiver of Sovereign Immunity and Consent to Suit ...   50
Section 13.2    Arbitration ...............................................   50
                Choice of Law .............................................   51
                Place of Hearing ..........................................   51
                Confidentiality ...........................................   51
Section 13.3    Limitation of Actions .....................................   51
                Damages ...................................................   51
                Consents and Approvals ....................................   52
</TABLE>


                                       vii

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
                Injunctive Relief and Specific Performance ................   52
                Action to Compel Arbitration ..............................   52
Section 13.4    Damages on Termination for Failure to Obtain NIGC
                Approval ..................................................   52
Section 13.5    Liquidated Damages and Limitations on Remedies ............   52
                Liquidated Damages Payable by Manager .....................   52
                Liquidated Damages Payable by the Band ....................   52
Section 13.6    Manager Continuing Obligations ............................   52
Section 13.7    Termination of Exclusivity ................................   53
Section 13.8    Remedies ..................................................   53
Section 13.9    Band Injunctive Relief ....................................   53
Section 13.10   No Setoff Against Payments to Band ........................   53
Section 13.11   Indemnification on Termination ............................   54
Section 13.12   Fees not Damages ..........................................   54
Section 13.13   Undistributed Net Revenues ................................   54
Section 13.14   Damages for Governmental Action ...........................   54

14. CONSENTS AND APPROVALS ................................................   54
Section 14.1    Band ......................................................   54
Section 14.2    Manager ...................................................   54
Section 14.3    Business Board ............................................   54

15. DISCLOSURES ...........................................................   55
Section 15.1    Shareholders and Directors ................................   55
Section 15.2    Warranties ................................................   55
Section 15.3    Disclosure Amendments .....................................   56
Section 15.4    Breach of Manager's Warranties and Agreements .............   56

16. NO PRESENT LIEN, LEASE OF JOINT VENTURE ...............................   56

17. CONCLUSION OF THE MANAGEMENT TEAM .....................................   56

18. MISCELLANEOUS .........................................................   57
Section 18.1    Situs of the Contracts ....................................   57
Section 18.2    .Notice ...................................................   57
Section 18.3    Relationship ..............................................   58
Section 18.4    Further Actions ...........................................   58
Section 18.5    Waivers ...................................................   58
Section 18.6    Captions ..................................................   58
Section 18.7    Severability ..............................................   58
Section 18.8    Advances ..................................................   59
Section 18.9    Third Party Beneficiary ...................................   59
Section 18.10   Survival of Covenants .....................................   59
Section 18.11   Estoppel Certificate ......................................   59
Section 18.12   Periods of Time; Time of Essence ..........................   59
Section 18.13   Exhibits ..................................................   59
Section 18.14   Successors and Assigns ....................................   59
</TABLE>


                                      viii

<PAGE>

<TABLE>
<S>             <C>                                                           <C>
Section 18.15   Confidential and Proprietary Information ..................   59
Section 18.16   Patron Dispute Resolution .................................   60
Section 18.17   Modification ..............................................   60
Section 18.18   Entire Agreement ..........................................   60
Section 18.19   Government Savings Clause .................................   61
Section 18.20   Preparation of Agreement ..................................   62
Section 18.21   Consents ..................................................   62
Section 18.22   Execution .................................................   62
Section 18.23   Limited Joinder ...........................................   62
</TABLE>


                                       ix

<PAGE>

                                LIST OF EXHIBITS

Exhibit A Gaming Site

Exhibit B Pending Band Litigation


                                       X

<PAGE>

                SECOND AMENDED AND RESTATED MANAGEMENT AGREEMENT

     THIS SECOND AMENDED AND RESTATED MANAGEMENT AGREEMENT has been entered into
as of December 22, 2004, by and between the POKAGON BAND OF POTAWATOMI (the
"Band"), and GREAT LAKES GAMING OF MICHIGAN, LLC, a Minnesota limited liability
company (f/k/a Great Lakes of Michigan, LLC) ("Manager" or "Great Lakes") for
the operation of a gaming facility in the State of Michigan.

1.   RECITALS

1.1. The Band, pursuant to 25 U.S.C. Sections 1300j et seq. (the "Restoration
     Act"), is a federally recognized Indian tribe recognized as eligible by the
     Secretary of the Interior for the special programs and services provided by
     the United States to Indians because of their status as Indians and is
     recognized as possessing powers of self-government.

1.2. As authorized by the Restoration Act, the Band intends to acquire the
     Gaming Site in the State of Michigan, to be held by the federal government
     in trust for the Band, on which the Band intends to construct and operate a
     permanent Class III gaming facility (the "Facility"); and the Band will
     possess sovereign governmental powers over the Gaming Site pursuant to the
     Band's recognized powers of self government, and the Band desires to use
     the Gaming Site to improve the economic conditions of its members.

1.3. Upon the transfer of the Gaming Site to the United States in trust for the
     Band, the Band will possess sovereign powers over the Gaming Site pursuant
     to the Band's recognized powers of self-government.

1.4. The Band desires to use the Gaming Site and the Facility to improve the
     economic conditions of its members, to enable it to serve the social,
     economic, educational and health needs of the Band, to increase the
     revenues of the Band and to enhance the Band's economic self sufficiency
     and self determination.

1.5. The Band wishes to establish an Enterprise, as hereinafter defined, to
     conduct Class II and Class III Gaming as hereinafter defined on the Gaming
     Site. This Agreement sets forth the manner in which the Enterprise will be
     managed.

1.6. Manager has agreed to certain terms and has represented to the Band that it
     has the managerial and financial capacity to provide and to secure
     financing for the funds necessary to develop and construct the Facility, as
     defined herein, and to commence the operation of the Enterprise on the
     Gaming Site.

1.7. The Band is seeking technical experience and expertise for the operation of
     the Enterprise and instruction for members of the Band in the operation of
     the Enterprise. Manager is willing, and has represented to the Band that it
     is able, to provide such experience, expertise and instruction.

1.8. The Band desires to grant Manager the exclusive right and obligation to
     develop, manage, operate and maintain the Enterprise as described in this
     Agreement and to train

<PAGE>

     Band members and others in the operation and maintenance of the Enterprise
     during the term of this Agreement. Manager wishes to perform these
     functions for the Band.

1.9. The Band and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc. ("Lakes")
     entered into a Management Agreement dated as of July 8, 1999 (the
     "Management Agreement").

1.10. Lakes has assigned its rights and obligations under the Management
     Agreement to Great Lakes pursuant to an Assignment and Assumption Agreement
     dated as of October 16, 2000, subject to certain terms and conditions.

1.11. Great Lakes and the Band entered into a First Amended and Restated
     Management Agreement dated as of October 16, 2000 (the "First Amended
     Management Agreement").

1.12. Pursuant to a Second Amended and Restated Development Agreement of near or
     even date, Great Lakes has agreed to furnish certain additional financing
     and to provide certain other assistance with regard to the Facility. For
     example:

     -    The cost of developing, constructing and equipping the Initial Phase
          of the Project is now understood as totaling approximately
          $197,000,000, which will be financed as follows: the Lakes Development
          Loan in the amount of $46,000,000, and an additional $151,000,000 to
          be provided by an Equipment Loan and a Bank Loan. To the extent that
          the Band is unable to raise additional funding of $151,000,000 from
          third parties at an interest rate not to exceed 13% (the "151MM
          Shortfall"), Great Lakes shall provide $54,000,000 (or such lesser
          amount as may be necessary to make up the 151MM Shortfall) through, at
          its option, a direct loan, third party loans enabled by credit
          enhancements provided by Great Lakes, or third-party loans with
          interest subsidies provided by Great Lakes, in each case an interest
          rate not to exceed 13%, such $54,000,000 loan and the Lakes
          Development Loan to be subordinated to certain other third-party
          financing. Great Lakes shall not have any other responsibility to
          fund, or provide credit enhancements or interest subsidies for, the
          151MM Shortfall (if any); and

     -    Great Lakes has funded under the Lakes Development Loan approximately
          $4,500,000 for long-lead-time items and to permit the Band to start
          preliminary site work that can be done now under local and/or county
          or state permits and, to the extent necessary, permits from the Band
          or the federal government.

     Great Lakes and the Band have agreed that the term of this Agreement shall
     begin on the date this Agreement, the Development Agreement (if required)
     and the Lakes Development Note (if required) are approved by the Chairman
     of the NIGC, and/or the BIA (if required), and continue until, unless
     earlier terminated in accordance with its terms, seven (7) years from
     commencement of Gaming at the Initial Phase of the Facility, provided that
     the Term of the Management Agreement will be five (5) years from the
     Commencement Date if (a) the Development Expenditures of the Initial Phase
     of the Facility are equal to or more than $138,000,000, and (b) Lakes'
     Financial Support for such Initial Phase has not exceeded $46,000,000, as
     provided in Section 3.2 of this Agreement.


                                       2

<PAGE>

1.13. This Agreement is entered into pursuant to the Indian Gaming Regulatory
     Act of 1988, PL 100-497, 25 U.S.C. Section 2701 et seq. (the "IGRA") as
     that statute may be amended. All gaming conducted at the Facility will at
     all times comply with the IGRA, applicable Band law and the Compact.

1.14. This Second Amended and Restated Management Agreement incorporates certain
     amendments to the First Amended Management Agreement agreed to by the
     parties and is intended to conform this Agreement to the requirements of
     the National Indian Gaming Commission.

2.   DEFINITIONS

As they are used in this Agreement, the terms listed below shall have the
meaning assigned to them in this Section:

     "AGREEMENT" shall mean this Management Agreement.

     "AGREEMENTS" shall mean this Agreement and the Development Agreement.

     "AFFILIATE" means as to Manager or Lakes, any corporation, partnership,
limited liability company, joint venture, trust department or agency or
individual controlled by, under common control with, or which directly or
indirectly controls, Manager or Lakes; and as to the Band, any corporation,
partnership, limited liability company, joint venture, trust department or
agency or individual controlled by, under common control with, or which directly
or indirectly controls, the Band.

     "ASSIGNMENT AND ASSUMPTION AGREEMENT" means the Assignment and Assumption
Agreement among Manager, Lakes and the Band dated as of October 16, 2000, as
amended by First Amendment dated as of December 22, 2004.

     "BAND EVENT OF DEFAULT" has the meaning described in Section 11.1.

     "BAND GAMING ORDINANCE" shall mean the ordinance and any amendments thereto
to be enacted by the Band, which authorizes and regulates Class II and Class III
Gaming on Indian lands subject to the governmental power of the Band.

     "BAND INTEREST RATE" shall mean the lesser of (a) Wall Street Journal prime
rate as of the Bank Closing plus 1%, or (b) 10%.

     "BAND REPRESENTATIVES" shall mean the persons designated by the Pokagon
Council to sit on the Business Board.

     "BAND WORKING CAPITAL ADVANCES" shall have the meaning set out in Section
5.3.2 below.

     "BANK CLOSING" means the closing on the Bank Loan.


                                        3

<PAGE>

     "BANK LENDER" shall mean one or more financial institutions agreed upon by
the parties to provide certain funding necessary to design, construct, and equip
the Facility, and provide start-up capital for the Enterprise.

     "BANK LOAN" shall have the meaning defined in the Development Agreement.

     "BIA" shall mean the Bureau of Indian Affairs of the Department of the
Interior of the United States of America.

     "BUSINESS BOARD" shall mean the decision making body created pursuant to
Section 3.4 of this Agreement.

     "BUY-OUT OPTION" shall mean the Band's option to buy out this Agreement
under Section 8.

     "CALCULATION YEAR" shall mean the twelve (12) month period commencing on
the Commencement Date and each successive twelve (12) month period.

     "CAPITAL BUDGET" shall mean the capital budget described in Section 4.12.

     "CAPITAL REPLACEMENT(S)" shall mean any alteration or rebuilding or
renovation of the Facility, and any replacement of Furnishings and Equipment,
the cost of which is capitalized and depreciated rather than being expensed
under GAAP.

     "CAPITAL REPLACEMENT RESERVE" shall mean the reserve described in Section
4.14, into which periodic contributions are paid pursuant to Section 4.15.

     "CHANGE OF CONTROL" shall have the meaning set out in Section 9.4.3.

     "CLASS II GAMING" shall mean Class II Gaming as defined in the IGRA.

     "CLASS III GAMING" shall mean Class III Gaming as defined in the IGRA.

     "COLLATERAL AGREEMENTS" shall mean any agreements defined as collateral
agreements under 25 USC Section 2711(a)(3) and regulations issued thereto at 25
C.F.R. Section 502.5.

     "COMMENCEMENT DATE" shall mean the first date that Gaming is conducted
pursuant to the terms of the Management Agreement in a Facility, including
Gaming conducted on completion of the Initial Phase of the Facility.

     "COMPACT" shall mean the Compact between the Band and the State dated
December 3, 1998 and approved in 64 Fed. Reg. No. 32, Thursday, February 18,
1999, at 8111, as the same may, from time to time, be amended; or such other
compact or consent decree that may be substituted therefor.

     "COMPENSATION" shall mean the direct salaries and wages paid to, or accrued
for the benefit of, any employee, including incentive compensation, together
with all fringe benefits


                                        4

<PAGE>

payable to or accrued for the benefit of such executive or other employee,
including employer's contribution under F.I.C.A., unemployment compensation or
other employment taxes, pension fund contributions, workers' compensation, group
life, accident and health insurance premiums and costs, and profit sharing,
severance, retirement, disability, relocation, housing and other similar
benefits.

     "CONFIDENTIAL INFORMATION" shall mean the information described in Section
18.15.

     "CONSTITUTION" shall mean the document or documents which govern the
actions of the Band and, upon enactment, the Constitution of the Pokagon Band of
Potawatomi Indians as ultimately approved by the Band and approved by the
Secretary of the Interior.

     "CORPORATE COMMISSION" shall mean a body corporate and politic established,
at the Band's discretion, by the Pokagon Council to own the Enterprise and such
other businesses and assets as the Band may deem appropriate.

     "CRC" means Casino Resource Corporation, a Minnesota corporation and its
Insiders.

     "DEVELOPMENT AGREEMENT" shall mean the agreement dated as of July 8, 1999
between Lakes and the Band, as assumed by Manager under the Assignment and
Assumption Agreement and as amended and restated by First Amended and Restated
Development Agreement dated as of October 16, 2000 and by Second Amended and
Restated Development Agreement of near or even date.

     "DEVELOPMENT EXPENDITURES" shall have the meaning defined in the
Development Agreement.

     "DISBURSEMENT ACCOUNTS" shall mean the bank account or accounts described
in Section 4.19.3.

     "DOMINION ACCOUNT" means the collateral account in favor of Great Lakes
established under Section 4.19.2.

     "DOMINION AGREEMENT" shall have the meaning defined in the Development
Agreement.

     "EFFECTIVE DATE" shall have the meaning provided in Section 18.22.

     "EMERGENCY CONDITION" shall have the meaning set forth in Section 4.13.

     "ENTERPRISE" shall mean the enterprise of the Band created by the Band to
engage in Class II and Class III Gaming at the Facility, and which shall include
all gaming at the Facility and any other lawful commercial activity allowed in
the Facility, including but not limited to the sale of alcohol, tobacco, gifts
and souvenirs; provided, however, the Enterprise shall only include any hotel
operated by the Band, ancillary non-Gaming activity within the Facility, or
other commercial enterprise conducted by the Band which is not generally related
to Class II or Class III Gaming if such hotel, non-Gaming activity or other
commercial enterprise (a) is financed by,


                                        5

<PAGE>

or through the guaranty of, Manager, (b) is specifically included within the
Initial Scope of Work or the Final Scope of Work or is not a material expansion
of the Initial Scope of Work or the Final Scope of Work, or (c) is specified by
the Business Board and the Pokagon Council as being included in the Enterprise,
in which case depreciation and other expenses relating to such hotel, non-Gaming
activity or other commercial enterprise shall be an Operating Expense, all
related revenues shall be included in Gross Revenues, and interest on all
related financing shall be paid by the Enterprise; and provided further that the
Enterprise shall not include a tribal gift/craft business which the Band may
elect to operate, rent free, on an area of about 2,400 square feet at the
Facility. The design and operation of such gift/craft shop shall be consistent
with the theme and quality of the Facility, and the location of such gift/craft
shop shall be approved by the Business Board.

     "ENTERPRISE ACCOUNTS" shall mean those accounts described in Section
4.19.1.

     "ENTERPRISE EMPLOYEE" shall mean all employees who work at the Facility.

     "ENTERPRISE EMPLOYEE POLICIES" shall mean those employee policies described
in Section 4.5.2.

     "ENTERPRISE INVESTMENT POLICY" shall have the meaning described in Section
4.19.1.

     "EQUIPMENT LENDER" shall mean the entity making the Equipment Loan.

     "EQUIPMENT LOAN" shall have the meaning provided in the Development
Agreement.

     "FACILITY" shall mean all buildings, structures, and improvements located
on the Gaming Site and all fixtures, Furnishings and Equipment attached to,
forming a part of, or necessary for the operation of the Enterprise.

     "FINANCIAL SUPPORT" shall have he meaning described in Section 3.2.1.

     "FISCAL YEAR" shall mean commencing as of the Commencement Date, each
twelve (12) month period or portion thereof ending on September 30 of each year
as currently used by the Band as the fiscal year for its financial statements.

     "FURNISHINGS AND EQUIPMENT" shall mean all furniture, furnishings and
equipment required for the operation of the Enterprise in accordance with the
standards set forth in this Agreement, including, without limitation:

     (i)  cashier, money sorting and money counting equipment, surveillance and
          communication equipment, and security equipment;

     (ii) slot machines, video games of chance, table games, keno equipment and
          other gaming equipment;

     (iii) office furnishings and equipment;


                                        6

<PAGE>

     (iv) hotel equipment (to the extent a hotel is included in the Enterprise);

     (v)  specialized equipment necessary for the operation of any portion of
          the Enterprise for accessory purposes, including equipment for
          kitchens, laundries, dry cleaning, cocktail lounges, restaurants,
          public rooms, commercial and parking spaces, and recreational
          facilities; and

     (vi) all other furnishings and equipment hereafter located and installed in
          or about the Facility which are used in the operation of the
          Enterprise in accordance with the standards set forth in this
          Agreement.

     "GAMING" shall mean any and all activities defined as Class II and Class
III Gaming.

     "GAMING REGULATORY AUTHORITY" or "GRA' shall mean the Band body created
pursuant to the Band Gaming Ordinance to regulate the Class II and Class III
Gaming of the Band in accordance with the Compact, the IGRA and the Band Gaming
Ordinance.

     "GAMING SITE" shall mean the parcels of land in New Buffalo, Michigan
described on the attached Exhibit A.

     "GUARANTY RESERVE" shall have the meaning described in Section
9.2.1(a)((ii)(A) of the Development Agreement.

     "GENERAL MANAGER" shall mean the person employed by the Band to direct the
operation of the Enterprise.

     "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" or "GAAP" shall mean the
principles defined by the Financial Accounting Standards Board.

     "GOVERNMENTAL ACTION" means any resolution, ordinance, statute, regulation,
order or decision of the Band or any instrumentality or agency of the Band,
regardless of how constituted, that has the force of law.

     "GREAT LAKES" means Great Lakes Gaming of Michigan, LLC, a Minnesota
limited liability company (f/k/a Great Lakes of Michigan, LLC).

     "GROSS GAMING REVENUE (WIN)" shall mean the net win from gaming activities
which is the difference between gaming wins and losses before deducting costs
and expenses.

     "GROSS REVENUES" shall mean all revenues of any nature derived directly or
indirectly from the Enterprise including, without limitation, Gross Gaming
Revenue (Win), food and beverage sales and other rental or other receipts from
lessees, sublessees, licensees and concessionaires (but not the gross receipts
of such lessees, sublessees, licensees and concessionaires provided that such
lessees, sublessees, licensees and concessionaires are not


                                       7

<PAGE>

Affiliates or Insiders of Manager or Lakes), and revenue recorded from
Promotional Allowances, but excluding any Permitted Taxes.

     "HOUSE BANK" shall mean the amount of cash, chips, tokens and plaques that
Manager from time to time determines necessary to have at the Facility daily to
meet its cash needs.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, PL 100-497, 25
U.S.C.Section 2701 et seq. as it may from time to time be amended.

     "INSIDER" has the meaning defined in 11 U.S.C. Section 101(31), assuming
Manager and Lakes were both the debtor in that definition, and shall include
persons or entities that become Insiders after the date of this Agreement,
whether as the result of a merger, acquisition, restructuring or otherwise.

     "INTERNAL CONTROL SYSTEMS" shall mean the systems described in Section
4.18.

     "LAKES" shall mean both Lakes Entertainment, Inc., f/k/a Lakes Gaming,
Inc., a Minnesota corporation, and Lakes Gaming and Resorts, LLC, a Minnesota
limited liability company.

     "LAKES CERTIFICATION" has the meaning defined in Section 15.1 of this
Agreement.

     "LAKES DEVELOPMENT LOAN" shall have the meaning defined in the Development
Agreement.

     "LAKES DEVELOPMENT NOTE" shall have the meaning defined in the Development
Agreement.

     "LAKES FACILITY LOAN" shall mean the Loan to be made by Great Lakes to the
Band pursuant to Section 9.2.4 of the Development Agreement. The Lakes Facility
Loan shall not include any loan to the extent it is subject to a Lakes
Refinancing Guaranty.

     "LAKES FACILITY NOTE" shall have the meaning defined in the Development
Agreement.

     "LAKES REFINANCING GUARANTY" shall have the meaning defined in the
Development Agreement.

     "LAKES SECURITY AGREEMENT" shall have the meaning defined in the
Development Agreement.

     "LAKES WORKING CAPITAL ADVANCE NOTE" shall have the meaning defined in the
Development Agreement.

     "LAKES WORKING CAPITAL ADVANCES" shall have the meaning set out in Section
5.3.1 below.


                                       8

<PAGE>

     "LEGAL REQUIREMENTS" shall mean any and all present and future judicial,
administrative, and tribal rulings or decisions, and any and all present and
future federal, state, local and tribal laws, ordinances, rules, regulations,
permits, licenses and certificates, in any way applicable to the Band, Manager,
the Gaming Site, the Facility and the Enterprise, including without limitation,
the IGRA, the Compact, and the Band Gaming Ordinance.

     "LIMITED RECOURSE" shall mean that all Loans and all liabilities of the
Band under or related to the Agreements and the other Transaction Documents, the
Enterprise or the Gaming Regulatory Authority, and any related awards, judgments
or decrees, shall be payable solely out of undistributed or future Net Revenues
of the Enterprise and shall be a limited recourse obligation of the Band, with
no recourse to tribal assets other than such Net Revenues (except (i), as to the
Equipment Loan, a security interest in the Furnishings and Equipment purchased
with Equipment Loan proceeds, (ii) a security interest in the Furnishings and
Equipment to the extent proceeds of the Lakes Development Loan or the Lakes
Facility Loan were used to fund acquisition of Furnishings and Equipment, and as
otherwise permitted under Section 9.2.1(j) of the Development Agreement, (iii)
if the Commencement Date does not occur, Subsequent Gaming Facility Revenues to
the extent provided in the Development Agreement, (iv) mortgages on the
Non-Gaming Lands prior to their transfer into trust, and (v) after the
Commencement Date occurs, funds on deposit in the Dominion Account to the extent
provided in Section 9.2.1(j) of the Development Agreement and the Dominion
Agreement, or in any other dominion agreement executed by the Band). In no event
shall Great Lakes, Lakes or any lender or other claimant have recourse to (a)
the physical property of the Facility (other than Furnishings and Equipment
subject to the security interest securing the Equipment Loan and the security
interest of Great Lakes, if any), (b) Tribal Distributions, (c) assets of the
Band purchased with Tribal Distributions, (d) revenues or assets of any other
gaming facility owned or operated by the Band, or (e) any other asset of the
Band (other than (i) as to the Transition Loan and the Non-Gaming Acquisition
Line of Credit, if the Commencement Date does not occur, Subsequent Gaming
Facility Revenues to the extent provided in the Development Agreement, (ii) as
to the Lakes Development Note and the Non-Gaming Acquisition Line of Credit,
mortgages on the Non-Gaming Lands prior to their transfer into trust, (iii)
funds on deposit in the Dominion Account to the extent provided in the
Agreements, the Dominion Agreement and any other dominion agreement executed by
the Band, and (iv) such Net Revenues of the Enterprise).

     "LOANS" shall mean the Lakes Development Loan, the Lakes Facility Loan, the
Lakes Working Capital Advances, the Minimum Payment Note, the Bank Loan and the
Equipment Loan.

     "LOCAL AGREEMENT" shall mean the agreement among the Band, the City of New
Buffalo and the Township of New Buffalo dated as of February 15, 2000.

     "MANAGER" shall mean Great Lakes Gaming of Michigan, LLC.

     "MANAGER'S INTERNAL EXPENSES" shall mean Manager's and Lakes' corporate
overhead, including without limitation salaries or benefits of any of Manager's
and Lakes' officers and employees, whether or not they perform services for the
Project or the Enterprise, and any travel or other expenses of Manager's and
Lakes' employees.


                                       9

<PAGE>

     "MANAGER'S REPRESENTATIVES" shall mean the persons designated by Manager to
sit on the Business Board.

     "MANAGEMENT AGREEMENT" shall mean this Agreement and may be referred to
herein as the "Agreement".

     "MANAGEMENT FEE" shall mean the management fee described in Section 5.1.

     "MANAGER EVENT OF DEFAULT" has the meaning described in Section 11.2.

     "MANAGING OFFICER" shall mean the person designated by Manager to serve as
a liaison between Manager and the Band and to serve on the Business Board.

     "MARKS" means all trade names, trade marks and service marks used by the
Facility or the Enterprise.

     "MATERIAL ADVERSE CHANGE" shall mean a material adverse change in Lakes' or
Great Lakes' financial condition which materially and substantially impairs
Lakes' or Great Lakes' respective ability to perform under the Agreements and
the Guaranty.

     "MATERIAL BREACH" means a failure of any party to perform any material duty
or obligation on its part, if such party fails to (i) cure the specified default
within thirty (30) days following receipt of the notice provided under Section
11.3, or (ii) if the default is not capable of being cured within 30 days,
commences such cure within 30 days, proceeds diligently to complete the cure,
and completes the cure no later than 90 days after receipt of such notice.

     "MEMBER OF THE BAND GOVERNMENT" shall mean any member of the Pokagon
Council, the GRA or any independent board or body created to oversee any aspect
of Gaming and any Pokagon court official.

     "MINIMUM BALANCE" shall mean the amount described in Section 4.19.1.

     "MINIMUM GUARANTEED MONTHLY PAYMENT" shall mean the payment due the Band
each month commencing in the month after the Commencement Date occurs in
accordance with 25 U.S.C. Section 2711(b)(3) and Section 5.6 hereof.

     MINIMUM GUARANTEED PAYMENT ADVANCES" shall have the meaning set out in
Section 5.6.2 and shall be subject to repayment to the limited extent provided
in that section.

     "MINIMUM PAYMENT NOTE" shall have the meaning defined in the Development
Agreement.

     "MONTHLY DISTRIBUTION PAYMENT" shall have the meaning set forth in Section
5.5.


                                       10

<PAGE>

     "NATIONAL INDIAN GAMING COMMISSION" or "NIGC" means the commission
established pursuant to 25 U.S.C. Section 2704.

     "NET REVENUES" shall mean the sum of "NET REVENUES (GAMING)" and "NET
REVENUES (OTHER)".

     "NET REVENUES (GAMING)" shall mean the Gross Gaming Revenue (Win), of the
Enterprise from Class II or Class III gaming less all gaming related Operating
Expenses, excluding the Management Fee, and less the retail value of any
Promotional Allowances, and less the following revenues actually received by the
Enterprise and included in Gross Revenues:

     (i)  any gratuities or service charges added to a customer's bill:

     (ii) any credits or refunds made to customers, guests or patrons;

     (iii) any sums and credits received by the Enterprise for lost or damaged
          merchandise;

     (iv) any sales taxes, excise taxes, gross receipt taxes, admission taxes,
          entertainment taxes, tourist taxes or charges received from patrons
          and passed on to a governmental or quasi governmental entity,
          including without limitation any Permitted Taxes;

     (v)  any proceeds from the sale or other disposition of furnishings and
          equipment or other capital assets;

     (vi) any fire and extended coverage insurance proceeds other than for
          business interruption;

     (vii) any condemnation awards other than for temporary condemnation; and

     (viii) any proceeds of financing or refinancing.

It is intended that this provision be consistent with 25 U.S.C. Section 2703(9).

"NET REVENUES (OTHER)" shall mean all Gross Revenues of the Enterprise from all
other sources in support of Class II or Class III gaming not included in "Net
Revenues (gaming)," such as food and beverage, hotel, entertainment and retail
(in each case, only to the extent such Gross Revenues are derived from
activities included in the Enterprise, in accordance with the definition
thereof), less all Operating Expenses, excluding the Management Fee and less the
retail value of Promotional Allowances, if any, and less the following revenues
actually received by the Enterprise and included in Gross Revenues:

     (i)  any gratuities or service charges added to a customer's bill;

     (ii) any credits or refunds made to customer, guests or patrons;


                                       11

<PAGE>

     (iii) any sums and credits received by the Enterprise for lost or damaged
          merchandise;

     (iv) any sales taxes, excise taxes, gross receipt taxes, admission taxes,
          entertainment taxes, tourist taxes or charges received from patrons
          and passed on to a governmental or quasi governmental entity,
          including without limitation any Permitted Taxes;

     (v)  any proceeds from the sale or other disposition of furnishing and
          equipment or other capital assets;

     (vi) any fire and extended coverage insurance proceeds other than for
          business interruption;

     (vii) any condemnation awards other than for temporary condemnation; and

     (viii) any proceeds of financing or refinancing.

It is intended that this provision be consistent with 25 U.S.C. Section 2703(9).

     "NIGC APPROVAL" means the written approval by the NIGC of this Agreement.

     "NON-GAMING LAND ACQUISITION LINE OF CREDIT" shall have the meaning defined
in the Development Agreement.

     "OPERATING BUDGET AND ANNUAL PLAN" shall mean the operating budget and plan
described in Section 4.11.

     "OPERATING EXPENSES" shall mean all expenses of the operation of the
Enterprise (but, as to hotels and other non-casino activities, only to the
extent such Operating Expenses are incurred in activities included in the
Enterprise, in accordance with the definition thereof), pursuant to GAAP,
including but not limited to the following:

     (i)  the Compensation of Enterprise Employees;

     (ii) Operating Supplies for the Enterprise;

     (iii) utilities;

     (iv) repairs and maintenance of the Facility (excluding Capital
          Replacements)

     (v)  interest on the Loans and all other loans or capital leases pertaining
          to the Facility and the Enterprise, including interest on the
          Non-Gaming Land Acquisition Line of Credit and the Transition Loan;

     (vi) interest on installment contract purchases or other interest charges
          on debt approved by the Business Board;


                                       12

<PAGE>

     (vii) insurance and bonding;

     (viii) advertising and marketing, including busing and transportation of
          patrons to the Facility;

     (ix) accounting, audit, legal and other professional fees;

     (x)  security costs;

     (xi) operating lease payments for Furnishings and Equipment to the extent
          approved by the Business Board, and capital lease payments to the
          extent approved by the Business Board and properly expensed under
          GAAP;

     (xiii) trash removal;

     (xiv) cost of goods sold;

     (xv) other expenses designated as Operating Expenses in accordance with the
          accounting standards as referred to in Section 4.21.3;

     (xvi) expenses specifically designated as Operating Expenses in this
          Agreement;

     (xvii) depreciation and amortization of the Facility based on an assumed 30
          year life, and depreciation and amortization of all other assets in
          accordance with GAAP;

     (xviii) recruiting and training expenses;

     (xix) fees due to the NIGC under the IGRA;

     (xx) any required payments to or on behalf of the State, any local
          governments or the Pokagon Fund made by or on behalf of the Enterprise
          or the Band pursuant to the Compact or any related consent decree, or
          pursuant to the Local Agreement;

     (xxi) any budgeted charitable contributions by the Enterprise for the
          benefit of charities located or providing services in the vicinity of
          the Gaming Site which are approved by the Business Board;

     (xxii) Pre-opening expenses shall be capitalized and treated as an expense
          during the first year after opening; and

     (xxiii) charges, assessments, fines or fees imposed by governmental
          entities of the Band which are reasonably related to the cost of
          Tribal governmental regulation of public health, safety or welfare, or
          the integrity of Tribal gaming operations.


                                       13

<PAGE>

but Operating Expenses shall not include any portion of Manager's Internal
Expenses or Permitted Taxes (other than as described in clause xxiii above).

     "OPERATING SUPPLIES" shall mean food and beverages (alcoholic and
nonalcoholic) and other consumable items used in the operation of a casino, such
as playing cards, tokens, chips, plaques, dice, fuel, soap, cleaning materials,
matches, paper goods, stationary and all other similar items.

     "PERMITTED TAXES" shall mean taxes, fees, assessments or other charges
imposed by the Band that are permitted under Section 7.2.

     "PLANS AND SPECIFICATIONS" shall mean the final Plans and Specifications
approved for the Facility as described in the Development Agreement.

     "POKAGON COUNCIL" shall mean the duly elected, governing legislative body
of the Band described pursuant to Public Law 102-323 or, at the option of the
Band, a designee committee or council created pursuant to resolution or
ordinance of the Pokagon Council.

     "POKAGON FUND" shall mean the non-profit corporation established pursuant
to the Local Agreement.

     "PRE-OPENING BUDGET" shall have the meaning described in Section 4.10.

     "PRE-OPENING EXPENSES" shall have the meaning described in Section 4.10.

     "PROJECT" shall have the meaning described in Section 4.1 of the
Development Agreement.

     "PROMOTIONAL ALLOWANCES" shall mean the retail value of complimentary food,
beverages, merchandise, and tokens for gaming, provided to patrons as
promotional items.

     "RELATIVE" shall mean an individual residing in the same household who is
related as a spouse, father, mother, son or daughter.

     "REMAINING LOAN AVAILABILITY AMOUNT" shall have the meaning described in
Section 9.2.1(a)((ii)(A) of the Development Agreement.

     "RESERVE AMOUNT" shall have the meaning described in Section
9.2.1(a)((ii)(A) of the Development Agreement.

     "RESTORATION ACT" shall mean 25 U.S.C. Sections 1300j et seq.

     "RESTRICTED TERRITORY" shall mean the States of Ohio, Illinois, Indiana and
Michigan.

     "SPECIFIC PERFORMANCE RESTRICTION" shall mean that no arbitrator or court
shall have the power to compel, overturn, negate or in any manner modify any
Governmental Action; but such restriction shall not prevent an arbitrator from
determining that the taking of any Governmental


                                       14

<PAGE>

Action or the failure to take any Governmental Action, which is not caused by a
breach of Great Lakes or Lakes' obligations under the Agreements or the
Guaranty, constitutes a breach of this Agreement by the Band or the impairment
of rights of Great Lakes under this Agreement; and which therefore results in
liability on the part of the Band for damages in favor of Great Lakes as
provided in this Agreement and enforcement of the obligations of the Band to
Great Lakes, including any security agreements and collateral instruments, in
accordance with their terms.

     "STATE" shall refer to the State of Michigan.

     "SUBSEQUENT GAMING FACILITY REVENUES" means gaming revenues from a gaming
facility (including the Facility) owned or operated by the Band in Michigan, but
only to the following extent: (i) all Class III Gaming Net Revenue, and (ii)
Class II Gaming Net Revenue to the extent that such Class II Net Revenue exceeds
$1,000,000.

     "TERM" shall mean the term of this Agreement as described in Section 3.2.

     "TRANSITION LOAN NOTE" shall have the meaning defined in the Development
Agreement.

     "TRIBAL DISTRIBUTIONS" shall mean Monthly Distribution Payments, Minimum
Guaranteed Monthly Payments and any other payments received by the Band from the
Enterprise pursuant to or in connection this Agreement.

2.1. Terms defined in the Development Agreement not otherwise defined in this
     Agreement shall have the same meaning herein as therein.

3.   ENGAGEMENT; BUSINESS BOARD; COMPLIANCE

In consideration of the mutual covenants contained in this Agreement, the
parties agree and covenant as follows:

3.1. Engagement of Manager. The Band hereby retains and engages Manager as the
     exclusive manager of the Enterprise pursuant to the terms and conditions of
     this Agreement, and Manager hereby accepts such retention and engagement,
     subject to receipt of all necessary regulatory approvals.

3.2. Term. The term of this Agreement shall begin on the date this Agreement,
     the Development Agreement (if required) and the Lakes Development Note (if
     required) are approved by the Chairman of the NIGC, and/or the BIA if
     required, and continue until, unless earlier terminated in accordance with
     its terms, seven (7) years from commencement of Gaming at the Initial Phase
     of the Facility, provided that the Term of the Management Agreement will be
     five (5) years from the Commencement Date if (i) the Development
     Expenditures of the Initial Phase of the Facility are equal to or more than
     $138,000,000, and (ii) Lakes' Financial Support for such Initial Phase has
     not exceeded $46,000,000.

     3.2.1. "Financial Support" shall be defined for purposes of this subsection
          as the sum of


                                       15

<PAGE>

          the following:

          (a)  the maximum amount of principal outstanding under the Lakes
               Development Loan and the Lakes Facility Loan (if provided
               directly by Great Lakes) as of the Commencement Date or any time
               prior thereto, plus the amount of any Guaranty Reserves
               established with respect thereto that are outstanding as of the
               Commencement Date, plus

          (b)  subject to the limits provided in Section 3.2.2(d), the maximum
               amount, as of the Commencement Date or any time prior thereto, of
               the greater of the principal amounts outstanding or the principal
               amounts of the commitments under any other Loans (including the
               Lakes Facility Loan if provided by a party other than Great
               Lakes) for which Great Lakes or Lakes have with the consent of
               the Band provided guaranties or other credit enhancements
               (including without limitation, any construction completion
               guaranty granted by Great Lakes or Lakes as a credit enhancement
               of the Bank Loan and/or Equipment Loan) or interest subsidies,
               excluding the portion of guarantees, credit enhancements or
               interest subsidies to the extent of the maximum amount of any
               Guaranty Reserves, as of the Commencement Date or any time prior
               thereto, that have been established under Section 9.2.1(a)(ii)(A)
               of the Development Agreement with respect thereto; plus

          (c)  subject to the limits provided in Section 3.2.2(d), if as of the
               Commencement Date, any guarantees or credit enhancements
               previously provided by Great Lakes or Lakes at the request of or
               consented to by the Band with respect to any Construction
               Documents (other than the Road Service Agreement, which the
               parties intend to terminate) remain in existence and have not
               been terminated or released in writing, the Reserve Amount (as
               defined in Section 9.2.1(a)(ii)(A) of the Development Agreement)
               as of the Commencement Date for any such guaranteed or enhanced
               obligations remaining unpaid, regardless of whether a Guaranty
               Reserve was in fact established therefor; provided that the
               amount of any Reserve Amount shall be reduced by the amount of
               cash collateral posted by Lakes or Great Lakes to secure any such
               guaranty, credit enhancement or interest subsidy, the amount
               advanced by Lakes or Great Lakes for such cash collateral being
               an advance under the Lakes Development Loan.

     3.2.2. For purposes of calculating Financial Support:

          (a)  The advances outstanding under the Lakes Development Loan shall
               be deemed to equal $46,000,000 if at the time of the Commencement
               Date the sum of advances previously made thereunder in accordance
               with the terms of the Development Agreement and the amount of any
               Guaranty Reserves established under Section 9.2.1(a)(ii)(A) of
               the Development Agreement is less than $46,000,000;


                                       16

<PAGE>

          (b)  If the Band has previously repaid any amount under the Lakes
               Development Loan and/or the Lakes Facility Loan, such calculation
               shall include any advances made on such Loan(s) by Great Lakes
               but which were repaid by the Band on or prior to the Commencement
               Date;

          (c)  Such calculation shall exclude the Non-Gaming Acquisition Line of
               Credit and the Transition Loan; interest, fees and expenses under
               any Loan; and any portion of the Bank Loan, the Equipment Loan or
               any other indebtedness related to the Enterprise to the extent of
               the amount of any Lakes Refinancing Guaranty related thereto
               (i.e. the amount of any such obligation of the Band guaranteed or
               for which a credit enhancement has been provided by Great Lakes
               or Lakes and which amount has been used to refinance any portion
               of the Lakes Development Loan, the Lakes Facility Loan and/or any
               other obligation of the Band to Great Lakes)); and

          (d)  Financial Support under or relating to guaranties or other credit
               enhancements or interest subsidies shall not exceed (i) any
               contractual limitation or cap on Lakes or Great Lakes' liability
               under such guaranties or other credit enhancements, or (ii) the
               present value of any such interest subsidy as of the closing on
               the Bank Loan or the Equipment Loan, as applicable.

3.3. Status of Gaming Site. The Band represents and covenants that it will
     acquire the Gaming Site in accordance with the terms of the Development
     Agreement, and will maintain the Gaming Site throughout the Term as land
     held in Trust by the United States of America for the benefit of the Band,
     eligible as a location upon which Class II and Class III Gaming can occur.
     The Band covenants, during the term hereof, that Manager shall and may
     peaceably have complete access to and presence in the Facility in
     accordance with the terms of this Agreement, free from molestation,
     eviction and disturbance by the Band or by any person or entity; provided,
     however, that such right of access to and presence in the Facility shall
     cease upon the termination of this Agreement pursuant to its terms.

3.4. Creation and Operation of Business Board. Manager and the Band agree to
     create a Business Board comprised of an equal number of persons
     representing and designated by the Band and the Manager. Unless otherwise
     agreed by the Band and the Manager, the Business Board shall have four (4)
     members. Any member of the Business Board may designate another person to
     exercise authority as a member by written notice signed by such Business
     Board member and given in accordance with Section 18.2 of this Agreement.
     The Business Board shall remain active during the entire term of this
     Agreement. Within thirty (30) days following the date of this Agreement,
     each party shall give the other notice of the individuals initially
     designated by each to serve on the Business Board. The Business Board shall
     have the obligations, rights and powers described in this Agreement. In
     order to be effective, any action of the Business Board must be the result
     of mutual agreement of a majority of the Business Board members or their
     designees at a meeting at which both Band Representatives (or their duly
     designated designees) are present; or, in the event of action by written
     consent, by consent signed by both Band Representatives (or their
     designees) and at least one Manager Representative (or his/her


                                       17

<PAGE>

     designee). In the event mutual agreement cannot be reached, the appropriate
     action shall be determined in the manner provided in Article 13.

3.5. Manager Compliance with Law; Licenses. Manager and Lakes each covenant that
     it will at all times comply with Legal Requirements, including the Band
     Gaming Ordinance, the IGRA, the Compact, State statutes, to the extent
     applicable, and any licenses issued under any of the foregoing. The Band
     shall not unreasonably withhold, delay, withdraw, qualify or condition such
     licenses as the Band is authorized to grant.

3.6. Compliance with Compact. The parties shall at times comply with the
     provisions of the Compact.

3.7. Fire and Safety. Manager shall ensure that the Facility shall be
     constructed and maintained in compliance with all fire and safety statutes,
     ordinances, and regulations which would be applicable if the Facility were
     located outside of the jurisdiction of the Band although those requirements
     would not otherwise apply within that jurisdiction. Nothing in this Section
     shall grant any jurisdiction to the State or any political subdivision
     thereof over the Gaming Site or the Facility. The Band shall be responsible
     for arranging fire protection and police services for the Facility.

3.8. Compliance with the National Environmental Policy Act. With the assistance
     of Manager, the Band shall supply the NIGC with all information necessary
     for the NIGC to comply with any regulations of the NIGC issued pursuant to
     the National Environmental Policy Act (NEPA).

3.9. Commencement Date. Manager shall memorialize the Commencement Date in a
     writing signed by Manager and delivered to the Band and to the Chairman of
     the NIGC.

4.   BUSINESS AND AFFAIRS OF THE ENTERPRISE

4.1. Manager's Authority and Responsibility. Manager shall conduct and direct
     all business and affairs in connection with the day-to-day operation,
     management and maintenance of the Enterprise and the Facility, including
     the establishment of operating days and hours. It is the parties' intention
     that the Enterprise be open 24 hours daily, seven days a week. Manager is
     hereby granted the necessary power and authority to act, through the
     General Manager, in order to fulfill all of its responsibilities under this
     Agreement. Nothing herein grants or is intended to grant Manager a titled
     interest to the Facility or to the Enterprise. Manager hereby accepts such
     retention and engagement. The Band shall have the sole proprietary interest
     in and ultimate responsibility for the conduct of all Gaming conducted by
     the Enterprise, subject to the rights and responsibilities of Manager under
     this Agreement.

4.2. Duties of Manager. In managing, operating, maintaining and repairing the
     Enterprise and the Facility, under this Agreement, Manager's duties shall
     include, without limitation, the following:

     4.2.1. Physical Duties. Manager shall use reasonable measures for the
          orderly physical


                                       18

<PAGE>

          administration, management, and operation of the Enterprise and the
          Facility, including without limitation cleaning, painting, decorating,
          plumbing, carpeting, grounds care and such other maintenance and
          repair work as is reasonably necessary.

     4.2.2. Compliance with Band Ordinances. Manager shall comply, and, as
          applicable, shall cause Lakes to comply, with all duly enacted
          statutes, regulations and ordinances of the Band, subject to the
          provisions of Section 10.2.1.

     4.2.3. Required Filings. Manager shall comply with all applicable
          provisions of the Internal Revenue Code including, but not limited to,
          the prompt filing of any cash transaction reports and W-2G reports
          that may be required by the Internal Revenue Service of the United
          States or under the Compact.

     4.2.4. Contracts in Band's Name Doing Business as the Enterprise and at
          Arm's Length. Contracts for the operations of the Enterprise shall be
          entered into in the name of the Band, doing business as the
          Enterprise, and signed by the General Manager. Any contract requiring
          an expenditure in any year in excess of $50,000, or such higher amount
          as may be set by the Business Board, shall be approved by the Business
          Board. No contracts, of any amount, for the supply of goods or
          services to the Enterprise shall be entered into with an Affiliate or
          Insider of the Manager unless that affiliation is disclosed to and
          approved by the Business Board, and the contract terms are no less
          favorable for the Enterprise than could be obtained from a
          nonaffiliated contractor. Nothing contained in this Section 4.2.4
          shall be deemed to be or constitute a waiver of the Band's sovereign
          immunity.

     4.2.5. Enterprise Operating Standards. Manager shall use its best efforts
          to operate the Enterprise in a proper, efficient and competitive
          manner in accordance with operating standards which are consistent
          with the highest operating standards of the casino, hospitality and
          resort industries.

     4.2.6. Security. Manager shall provide for appropriate security for the
          operation of the Enterprise. All aspects of the Facility security
          shall be the responsibility of Manager. Any security officer shall at
          the request of the Business Board be bonded and insured in an amount
          commensurate with his or her enforcement duties and obligations. The
          cost of any charge for security and increased public safety services
          will be an Operating Expense.

4.3. Damage, Condemnation or Impossibility of the Enterprise. Damage to or
     destruction or condemnation of the Facility or the Enterprise shall be
     governed by the provisions of Section 13.8 of the Development Agreement.

4.4. Alcoholic Beverages and Tobacco Sales. During the term of this Agreement
     alcoholic beverages may be served at the Facility if permissible in
     accordance with applicable law. The parties acknowledge that no enabling
     Band legislation for the sale of alcoholic beverages is now in force, and
     that such legislation would be necessary in order to serve alcoholic
     beverages at the Facility. If such legislation is subsequently enacted, and
     if


                                       19

<PAGE>

     other requisite approvals are obtained, the Band and Manager may mutually
     agree to include service of such beverages within the Enterprise. Tobacco
     may be sold at the Facility subject to and in accordance with the Band's
     licensing requirements, if any.

4.5. Employees.

     4.5.1. Manager's Responsibility. Manager shall have, subject to the terms
          of this Agreement, the exclusive responsibility and authority to
          direct the selection, control and discharge of all employees
          performing regular services for the Enterprise in connection with the
          maintenance, operation, and management of the Enterprise and the
          Facility and any activity upon the Gaming Site; and the sole
          responsibility for determining whether a prospective employee is
          qualified and the appropriate level of Compensation to be paid, except
          that the Gaming Commission shall have the exclusive right to determine
          licensing qualifications.

     4.5.2. Enterprise Employee Policies. Manager shall prepare a draft of
          personnel policies and procedures (the "Enterprise Employee
          Policies"), including a job classification system with salary levels
          and scales, which policies and procedures shall be in compliance with
          applicable Band law and subject to approval by the Business Board.
          Enterprise employees are employed on an "at-will" basis and, unless
          expressly stated otherwise, nothing contained in this Agreement or the
          Enterprise Employee Policies shall be construed to affect the
          "at-will" nature of employment with the Enterprise. The Enterprise
          Employee Policies shall include a grievance procedure in order to
          establish fair and uniform standards for the Enterprise employees,
          which will include procedures for the resolution of disputes between
          the Enterprise and Enterprise employees. At a minimum, the Enterprise
          Employee Policies shall provide for an employee grievance process
          which provides the following: A written "Board of Review" process will
          be created by the Enterprise's general manager to provide Enterprise
          employees with a procedure for bringing grievances involving
          substantial work related issues to the attention of Enterprise
          management so they may be promptly and permanently resolved in a fair
          and equitable manner. The Board of Review process will be available to
          all Enterprise employees except: (a) job applicants, temporary
          employees, and part-time employees; (b) employees at the director
          level and above; and (c) employees discharged for actions involving
          violations of tribal law, including tribal gaming regulations, or
          federal, state, or local law. Enterprise employees will be eligible to
          use the Board of Review process if they have: (i) completed an initial
          period of employment not to exceed ninety (90) work shifts; (ii)
          concluded all required preliminary procedures before seeking a Board
          of Review hearing; (iii) completed a Board of Review hearing request
          form; and (iv) submitted the hearing request form within the allotted
          time frame to the Enterprise human resources department and a copy to
          the head of their home department in the Enterprise. The Enterprise's
          human resources department shall be responsible for determining the
          composition of the hearing panel and for establishing hearing rules
          and procedures, in each case subject to the provisions of the
          Enterprise Employee Policies. The Board of Review will be empowered to
          make a range of decisions necessary to fully resolve the grievance,
          including reinstatement (with


                                       20

<PAGE>

          or without backpay) or upholding the employee's discharge. The Board
          of Review's decision on the grievance will be final and binding for
          the employee and the Enterprise, and there will be no appeal beyond
          the Board of Review except as may be expressly provided in the
          Enterprise Employee Policies. Manager shall be responsible for
          administering the Enterprise Employee Policies. Any amendments to the
          Enterprise Employee Policies must be consistent with this subsection
          and shall not be effective unless they are approved by the Business
          Board.

     4.5.3. Senior Employees. The selection of the General Manager, Chief
          Financial Officer, Casino Manager, and Human Resources Manager of the
          Enterprise, or the functionally equivalent positions, shall be subject
          to consultation between, and agreement by, Manager, the Business Board
          and the Pokagon Council. All such Employees shall be Enterprise
          Employees.

     4.5.4. Enterprise Employees. The terms of employment of all Enterprise
          Employees shall be structured as though all labor, employment, and
          unemployment insurance laws applicable in the State which would apply
          to Enterprise Employees if they were not working on an Indian
          reservation would also apply to Enterprise Employees; except that the
          Band reserves the right to by ordinance establish a workman's
          compensation trust fund and worker's compensation system instead of
          adopting Michigan workers compensation law, and to adopt other laws
          and regulations that might preempt otherwise applicable law.

     4.5.5. Removal of Employees. Manager will act in accordance with the
          Enterprise Employee Policies with respect to the discharge, demotion
          or discipline of any Enterprise Employee.

     4.5.6. Band Employees. All Enterprise Employees shall be employees of the
          Band.

4.6. No Manager Internal Expenses; Limitation on Manager Payments. No Manager
     Internal Expenses shall be paid by the Enterprise. No officer, director,
     shareholder or employee of Manager or Lakes shall be compensated by wages
     from or contract payments by the Enterprise for their efforts or for any
     work which they perform under this Agreement. Neither Manager nor Lakes
     shall receive any payments from the Enterprise other than loan repayments
     (whether under the Lakes Development Note, the Lakes Facility Note, for
     other advances in accordance with this Agreement, or as subrogee after
     paying on any Loan guarantee) and the Management Fee to be paid to Manager
     under Section 5.1. Manager Internal Expenses may be paid from Management
     Fees and loan repayments after they have been received by Manager. Nothing
     in this subsection shall restrict the ability of an employee of the
     Enterprise to purchase or hold stock in Lakes where (a) such stock is
     publicly held, and (b) such employee acquires, on a cumulative basis, less
     than five percent (5%) of the outstanding stock in the corporation.

4.7. GRA Expenses. The funding of the operation of the Gaming Regulatory
     Authority shall, prior to the Commencement Date, be a start up expense of
     the Enterprise and thereafter shall be an Operating Expense. The budget for
     the GRA shall reflect the reasonable cost


                                       21

<PAGE>

     of regulating the Enterprise. Disputes between the parties relating to GRA
     costs shall be resolved pursuant to the provisions of Article 13 of this
     Agreement. The decisions and actions of the GRA as to Manager shall be
     subject to the provisions of Article 13 hereof, including without
     limitation the Specific Performance Restriction.

4.8. Employee Background Checks. A background investigation shall be conducted
     by the GRA in compliance with all Legal Requirements, to the extent
     applicable, on each applicant for employment as soon as reasonably
     practicable. No individual whose prior activities, criminal record, if any,
     or reputation, habits and associations are known to pose a threat to the
     public interest, the effective regulation of Gaming, or to the gaming
     licenses of Manager or Lakes, or to create or enhance the dangers of
     unsuitable, unfair, or illegal practices and methods and activities in the
     conduct of Gaming, shall knowingly be employed by Manager, Lakes or the
     Band. The background investigation procedures employed by the GRA shall be
     formulated in consultation with Manager and shall satisfy all regulatory
     requirements independently applicable to Manager and Lakes. Any cost
     associated with obtaining such background investigations shall constitute
     an Operating Expense, provided, however, the costs of background
     investigations relating to Manager, Lakes and the shareholders, officers,
     directors or employees of Manager, Lakes or their Affiliates shall be borne
     solely by Manager, shall be nonrefundable, shall not be treated as part of
     the Lakes Development Loan or as Operating Expenses of the Enterprise, and
     shall not exceed $50,000.

4.9. Indian Preference. Recruiting and Training; Local Preference

     4.9.1. Indian Preference. In order to maximize benefits of the Enterprise
          to the Band, Manager shall, during the term of this Agreement, to the
          maximum extent reasonably possible under applicable law, including,
          but not limited to the Indian Civil Rights Act, 25 U.S.C. Section
          1301, et seq., give preference in recruiting, training and employment
          to qualified members of the Band, their spouses, and children in all
          job categories of the Enterprise, including senior management. Manager
          shall:

          4.9.1.1. conduct job fairs and skills assessment meetings for Band
               members;

          4.9.1.2. in consultation with and subject to the approval of the Band,
               develop a management training program for Band members or people
               selected by the Band. This program shall be structured to provide
               appropriate training for those participating to assume full
               managerial control at the conclusion of the Term of this
               Agreement; and

          4.9.1.3. within two hundred seventy (270) days of the Commencement
               Date, Manager shall develop and present to the Band for its
               approval, a training plan designed so that, by the end of the
               Term of the Agreement, all Enterprise Employees will be Band
               members or others designated by the Band.


                                       22

<PAGE>

     4.9.2. Local Preference. Manager shall also give preference to residents of
          the community in which the Gaming Site is located and in hiring and
          purchasing shall comply with Section 4 of the Local Agreement. Any
          such preference shall be junior to the Indian Preference established
          under Section 4.9.1.

     4.9.3. Final Determination. Final determination of the qualifications of
          Band members and all other persons for employment shall be made by
          Manager, subject to any licensing requirements of the Gaming
          Regulatory Authority. Not later than 90 days prior to the Commencement
          Date, Manager shall develop and present to the Band for its approval a
          training plan designed to meet the goals set out in this section.

4.10. Pre-Opening. Nine months prior to the scheduled Commencement Date, Manager
     shall commence implementation of a pre-opening program which shall include
     all activities necessary to financially and operationally prepare the
     Facility for opening. To implement the pre-opening program, Manager shall
     prepare a comprehensive pre-opening budget which shall be submitted to the
     Business Board for its approval no later than seven months prior to the
     scheduled Commencement Date ("Pre-Opening Budget"). The Pre-Opening Budget
     shall identify expenses which Manager anticipates to be necessary or
     desirable in order to prepare the Facility for the Commencement Date,
     including without limitation, cash for disbursements, Furnishings and
     Equipment and Operating Supplies, hiring, training, relocation and
     temporary lodging of employees, advertising and promotion, office overhead
     and office space (whether on or off the Gaming Site), and travel and
     business entertainment (including opening celebrations and ceremonies)
     ("Pre-Opening Expenses"). The Band recognizes that the Pre-Opening Budget
     has been prepared well in advance of Commencement and is intended only to
     be a reasonable estimate, subject to variation due to a number of factors,
     some of which will be outside of Manager's control (e.g. the time of
     completion, inflationary factors and varying conditions for the goods and
     services required). The Band agrees that the Pre-Opening Budget may be
     modified from time to time, subject to approval of the Business Board in
     accordance with the procedure established by Section 4.11 of this Agreement
     for adjustments to the Operating Budget and Annual Plan.

4.11. Operating Budget and Annual Plan. Manager shall, prior to the scheduled
     Commencement Date, submit to the Business Board for its approval a proposed
     Operating Budget and Annual Plan for the Fiscal Year commencing on the
     Commencement Date. Thereafter, Manager shall, not less than 30 days prior
     to the commencement of each full or partial Fiscal Year, submit to the
     Business Board for its approval a proposed Operating Budget and Annual Plan
     for the ensuing full or partial Fiscal Year, as the case may be. The
     Operating Budget and Annual Plan shall include a projected income
     statement, balance sheet, and projection of cash flow for the Enterprise,
     with detailed justifications explaining the assumptions used therein. The
     Operating Budget and Annual Plan shall include, without limitation, a
     schedule of repairs and maintenance (other than Capital Replacements), a
     business and marketing plan for the Fiscal Year, and the Minimum Balance
     which must remain in the Enterprise Accounts and the House Bank as of the
     end of each month during the Fiscal Year to assure sufficient monies for
     working capital purposes, and detail of other expenditures proposed


                                       23

<PAGE>

     to be authorized under the Operating Budget and Annual Plan.

     The Operating Budget and Annual Plan for the Enterprise will be comprised
     of the following:

     4.11.1. A statement of the estimated income and expenses for the coming
          Fiscal Year, including estimates as to Gross Revenues and Operating
          Expenses for such Fiscal Year, such operating budget to reflect the
          estimated results of the operation during each month of the subject
          Fiscal Year;

     4.11.2. Either as part of the statement of the estimated income and
          expenses referred to Section 4.11.1, or separately, budgets (and
          timetables and requirements of Manager) for:

          4.11.2.1. repairs and maintenance;

          4.11.2.2. Capital Replacements;

          4.11.2.3. Furnishings and Equipment;

          4.11.2.4. advertising and business promotion programs for the
               Enterprise;

          4.11.2.5. the estimated cost of Promotional Allowances; and

          4.11.2.6. a business and marketing plan for the subject Fiscal Year.

     4.11.3. The Business Board's approval of the Operating Budget and Annual
          Plan shall not be unreasonably withheld or delayed. Manager shall meet
          with the Business Board to discuss the proposed Operating Budget and
          Annual Plan and the Business Board's approval shall be deemed given
          unless a specific written objection thereto is delivered by the Band
          Representatives to Manager within thirty (30) days after Manager and
          the Business Board have met to discuss the proposed Operating Budget
          and Annual Plan. If the Band Representatives for any reason decline to
          meet with Manager to discuss a proposed Operating Budget and Annual
          Plan after not less than twenty (20) days written notice, the Band
          Representatives shall be deemed to have consented unless a specific
          written objection is delivered to Manager within thirty (30) days
          after the date of the proposed meeting. The Business Board shall
          review the Operating Budget and Annual Plan on a line-by-line basis,
          if requested by the Band Representative.

     4.11.4. If the initial proposed Operating Budget and Annual Plan contains
          disputed budget item(s), the Band Representatives on the Business
          Board and the Manager agree to cooperate with each other in good faith
          to resolve the disputed or objectionable proposed item(s). In the
          event that the Band Representatives on the Business Board and the
          Manager are not able to reach mutual agreement concerning any disputed
          or objectionable


                                       24

<PAGE>

          item(s) within a period of fifteen (15) days after the date the Band
          Representatives on the Business Board provide written notice of the
          Band's objection to Manager, either party shall be entitled to submit
          the dispute to arbitration in accordance with Article 13. If the Band
          Representatives on the Business Board and the Manager are unable to
          resolve the disputed or objectionable item(s) prior to the
          commencement of the applicable Fiscal Year, the undisputed portions of
          the proposed Operating Budget and Annual Plan shall be deemed to be
          adopted and approved and the corresponding line item(s) contained in
          the Operating Budget and Annual Plan for the preceding Fiscal Year
          shall be adjusted as set forth herein and shall be substituted in lieu
          of the disputed item(s) in the proposed Operating Budget and Annual
          Plan. Those line items which are in dispute shall be determined by
          increasing the preceding Fiscal Year's actual expense for the
          corresponding line items by an amount determined by Manager which does
          not exceed the Consumer Price Index for All Urban Consumers published
          by the Bureau of Labor Statistics of the United States Department of
          Labor, U.S. City Average, all items (1997-98 = 100) for the Fiscal
          Year prior to the Fiscal Year with respect to which the adjustment to
          the line item(s) is being calculated or any successor or replacement
          index thereto. The resulting Operating Budget and Annual Plan obtained
          in accordance with the preceding sentence shall be deemed to be the
          Operating Budget and Annual Plan in effect until such time as Manager
          and the Band Representatives on the Business Board have resolved the
          items objected to by the Band Representatives on the Business Board or
          an arbitrator has rendered his award on the dispute.

     4.11.5. Adjustments to Operating Budget and Annual Plan and Capital Budget.
          Manager may, after notice to and approval by the Business Board,
          revise the Operating Budget and Annual Plan and the Capital Budget
          from time to time, as necessary, to reflect any unpredicted
          significant changes, variables or events or to include significant,
          additional, unanticipated items of expense. Expenditures shall not
          materially vary from the approved budgets nor exceed the aggregate
          Operating Budget and Annual Plan (as approved by the Business Board,
          and revised with the reasonable approval of the Business Board) absent
          the written consent of the Business Board; provided that the Band
          recognizes that (a) the absolute amounts of expenditures may exceed
          budgeted amounts if the volume of business at the Facility exceeds
          projections, (b) the relative amounts of income and expense may vary
          from budgeted amounts if the volume of business is less than
          projected, and (c) Manager does not guarantee the economic performance
          shown in budgets. Manager shall submit a revision of the Operating
          Budget and Annual Plan to the Business Board for review on a quarterly
          or other appropriate basis.

4.12. Capital Budgets. Manager shall, not less than 30 days prior to the
     commencement of each Fiscal Year, or partial Fiscal Year, submit to the
     Business Board a recommended capital budget (the "Capital Budget")
     describing the present value, estimated useful life


                                       25

<PAGE>

     and estimated replacement costs for the ensuing full or partial year, as
     the case may be, for the physical plant, furnishings, equipment, and
     ordinary capital replacement items, all of which are defined to be any
     items, the cost of which is capitalized and depreciated, rather than
     expended, using GAAP ("Capital Replacements") as shall be required to
     operate the Enterprise in accordance with sound business practices. Capital
     Replacements in the Capital Budget in an aggregate sum equal to or less
     than the sum of the Capital Replacement Reserve for the Fiscal Year shall
     be approved by the Business Board; and any amounts in excess of the Capital
     Replacement Reserve for the Fiscal Year shall be subject to approval of the
     Pokagon Council in its sole discretion. The Pokagon Council, Business
     Board, and Manager shall meet to discuss the proposed Capital Budget and
     the Business Board and Pokagon Council shall be required to make specific
     written objections to a proposed Capital Budget in the same manner and
     within the same time periods specified in Section 4.11.4 with respect to an
     Operating Budget and Annual Plan. The Business Board and Pokagon Council
     shall not unreasonably withhold or delay its consent. Unless the Pokagon
     Council, Business Board, and Manager otherwise agree, Manager shall be
     responsible for the design and installation of Capital Replacements,
     subject to the Business Board's approval and ratification by the Pokagon
     Council and right to inspect.

4.13. Capital Replacements. The Band shall effect and expend such amounts for
     any Capital Replacements as shall be required, in the course of the
     operation of the Enterprise, to maintain, at a minimum, the Enterprise in
     compliance with any Legal Requirements and to comply with Manager's
     recommended programs for renovation, modernization and improvement intended
     to keep the Enterprise competitive in its market; or to correct any
     condition of an emergency nature, including without limitation,
     maintenance, replacements or repairs which are required to be effected by
     the Band, which in Manager's sole discretion requires immediate action to
     preserve and protect the Facility, assure its continued operation, and/or
     protect the comfort, health, safety and/or welfare of the Facility's guests
     or employees (an "Emergency Condition"); provided, however, that the Band
     shall be under no obligation to fund Capital Replacements in aggregate
     amount greater than its periodic required contributions to the Capital
     Replacement Reserve described in Section 4.15. Manager is authorized to
     take all steps and to make all expenditures from the Disbursement Accounts
     described in Section 4.19.3 (in the case of non-capitalized repairs and
     maintenance), or Capital Replacement Reserve described at Section 4.14 (in
     the case of expenditures for Capital Replacements), as it deems necessary
     to repair and correct any Emergency Condition, regardless whether such
     provisions have been made in the Capital Budget or the Operating Budget and
     Annual Plan for any such expenditures; or the cost thereof may be advanced
     by Manager and reimbursed from future revenues. Design and installation of
     Capital Replacements shall be effected in a time period and subject to such
     conditions as the Business Board may establish to minimize interference
     with or disruption of ongoing operations.

4.14. Capital Replacement Reserve. Manager shall establish a Capital Replacement
     Reserve on the books of account of the Enterprise, and the periodic
     contributions of cash required by Section 4.15 shall be deposited by the
     Enterprise into an account (the "Capital Replacement Reserve") established
     in the Band's name at a bank designated by the Business Board in accordance
     with Section 4.19.1 of this Agreement. All amounts in the Capital
     Replacement


                                       26

<PAGE>

     Reserve shall be invested in interest bearing investments in accordance
     with the Enterprise Investment Policy to the extent that availability of
     funds, when required, is not thereby impaired. Interest earned on amounts
     deposited in the Capital Replacement Reserve shall be credited to the
     Capital Replacement Reserve and shall be available for payment of
     expenditures for Capital Replacements to the Facility. Manager shall draw
     on the Capital Replacement Reserve for Capital Replacements to purchase
     those items included in the Capital Budget approved by the Business Board
     or such emergency additions, repairs or replacements as shall be required
     to correct an Emergency Condition.

4.15. Periodic Contributions to Capital Replacement Reserve. In accordance with
     Section 5.5 of this Agreement, Manager shall make monthly deposits into the
     Capital Replacement Reserve in amounts equivalent to an annual rate of 1%
     (one percent) of Gross Revenues during the first twelve (12) month period
     after the Commencement Date and equivalent to an annual rate of 3% (three
     percent) of Gross Revenues during the remainder of the Fiscal Year in which
     such twelve (12) month period ends and during each successive Fiscal Year
     over the remainder of the Term; such reserve shall be funded out of Monthly
     Distribution Payments. The cash amounts required to be so deposited shall
     be calculated and deposited into the Capital Replacement Reserve, in
     arrears, no later than the twenty-first (21st) day of the month immediately
     following the month with respect to which a deposit is made. If any
     adjustment of Gross Revenues is made as result of an audit or for other
     accounting reasons, a corresponding adjustment in the Capital Replacement
     Reserve deposit shall be made. In addition, all proceeds from the sale of
     capital items no longer needed for the operation of the Enterprise, and the
     proceeds of any insurance received in reimbursement for any items
     previously paid from the Capital Replacement Reserve, shall be deposited
     into the Capital Replacement Reserve upon receipt.

4.16. Use and Allocation of Capital Replacement Reserve. Any expenditures for
     Capital Replacements which have been budgeted and previously approved may
     be paid from the Capital Replacement Reserve without further approval from
     the Business Board. Any amounts remaining in the Capital Replacement
     Reserve at the close of any year shall be carried forward and retained in
     the Capital Replacement Reserve until fully used. If the amounts in the
     Capital Replacement Reserve at the end of any year plus the anticipated
     contributions to the Capital Replacement Reserve for the next ensuing year
     are not sufficient to pay for Capital Replacements authorized by the
     Capital Budget for such ensuing year, then additional funds, in the amount
     of the projected deficiency, may be advanced by the Manager and reimbursed
     by the Enterprise from future revenues.

4.17. [intentionally omitted]

4.18. Internal Control Systems. Manager shall install systems for monitor of all
     funds (the "Internal Control Systems"), which systems shall comply with all
     Legal Requirements, and shall be submitted to the Business Board and the
     Band Regulatory Authority for approval in advance of implementation, which
     approval shall not be unreasonably withheld. The Band shall retain the
     right to review all Internal Control Systems and any changes instituted to
     the Internal Control Systems of the Enterprise. The Band shall have the
     right to retain an auditor to review the adequacy of the Internal Control
     Systems prior


                                       27

<PAGE>

     to the Commencement Date. The cost of such review shall be a Pre-Opening
     Expense. Any significant changes in such systems after the Commencement
     Date also shall be subject to review and approval by the Gaming Regulatory
     Authority. The Gaming Regulatory Authority and Manager shall have the right
     and duty to maintain and police the Internal Control Systems in order to
     prevent any loss of proceeds from the Enterprise. The Gaming Regulatory
     Authority shall have the right to inspect and oversee the Internal Control
     System at all times. Manager shall install a closed circuit television
     system to be used for monitoring the cash handling activities of the
     Enterprise sufficient to meet all Legal Requirements.

4.19. Banking and Bank Accounts.

     4.19.1. Enterprise Accounts. The Business Board shall select, and the
          Pokagon Council shall approve, a bank or banks for the deposit and
          maintenance of funds and shall establish in such bank or banks
          accounts as Manager deems appropriate and necessary in the course of
          business and as consistent with this Agreement, including the Dominion
          Account ("Enterprise Accounts"). Establishment of any Enterprise Bank
          Account shall be subject to the approval of the Business Board. The
          sum of money agreed to by the Business Board to be maintained in the
          Enterprise Bank Account(s) to serve as working capital for Enterprise
          operations, shall include all sums needed for the House Bank, and all
          sums needed to accrue for payment of expenses not paid on a monthly
          basis (the "Minimum Balance"). Manager shall propose a policy for
          investing funds in excess of the Minimum Balance (the "Enterprise
          Investment Policy"), which shall be subject to the approval of the
          Business Board.

     4.19.2. Daily Deposits to Dominion Account. Manager shall establish for the
          benefit of the Band in the Enterprise's name a Dominion Account, which
          shall be subject to the lien and security interest of Manager to the
          extent provided in Section 9.2.1(j) of the Development Agreement and
          the Dominion Agreement. Manager shall collect all Gross Revenues and
          other proceeds connected with or arising from the operation of the
          Enterprise, the sale of all products, food and beverage, and all other
          activities of the Enterprise and deposit the related cash daily into
          the Dominion Account at least once during each 24-hour period unless
          otherwise agreed by the Business Board. All money received by the
          Enterprise on each day that it is open must be counted at the close of
          operations for that day or at least once during each 24-hour period.
          Manager agrees to obtain a bonded transportation service to effect the
          safe transportation of the daily receipts to the bank, which expense
          shall constitute an Operating Expense.

     4.19.3. Disbursement Accounts. Manager shall establish for the benefit of
          the Band in the Enterprise's name one or more Disbursement Accounts.
          Manager shall, consistent with and pursuant to the approved annual
          Operating Budget and Annual Plan and Capital Budget, have
          responsibility and authority for making all payments for Operating


                                       28

<PAGE>

          Expenses, debt service, Management Fees, and Tribal Distributions from
          the Disbursement Accounts.

     4.19.4. No Cash Disbursements. Manager shall not make any cash
          disbursements from the Enterprise Accounts except for the payment of
          cash prizes from the House Bank; and except for such cash
          disbursements from the House Bank, any and all payments or
          disbursements by the Manager shall be made by check or wire transfer
          drawn against an Enterprise Bank Account.

     4.19.5. Transfers Between Accounts. Manager has the authority to transfer
          funds from and between the Enterprise Accounts to the Disbursement
          Accounts in order to pay Operating Expenses and to pay debt service
          pursuant to the Loans, to invest funds in accordance with the
          Enterprise Investment Policy, and to pay the Management Fees and
          Tribal Distributions pursuant to this Agreement, and to make other
          payments required by Section 5.5 below.

     4.19.6. Transfers from Dominion Account to Disbursement Accounts. Manager
          agrees that, notwithstanding any provision of the Dominion Agreement
          or any Band Event of Default or any default by the Band under the
          Dominion Agreement, it shall make or permit timely transfers from the
          Dominion Account to Disbursement Accounts of all funds needed to pay
          (a) Operating Expenses; (b) the Minimum Guaranteed Monthly Payment;
          (c) all Loans, as well any other third party loans to which Manager
          has subordinated in writing; (d) deposits into the Capital Replacement
          Reserve pursuant to Section 4.15 of this Management Agreement; (e)
          maintenance of the Minimum Balance, and any other reserves approved by
          the Business Board with the written consent of Manager; and (f) claims
          of third parties granted priority over Manager under the Agreements,
          if the events occur which trigger that priority. Manager further
          agrees that, prior to any Band Event of Default, it shall make timely
          transfers to Disbursement Accounts to enable the Monthly Distribution
          Payment to be made to the Band when due, and otherwise in accordance
          with this Agreement.

4.20. Insurance. Manager, on behalf of the Band, shall arrange for, obtain and
     maintain, or cause its agents to maintain, with responsible insurance
     carriers licensed to do business in the State, insurance satisfactory to
     Manager and the Business Board covering the Facility and the operations of
     the Enterprise, naming the Band, the Enterprise and Manager as insured
     parties. Manager shall recommend to the Business Board the minimum amounts
     of insurance coverage for the Enterprise, which shall be subject to the
     reasonable approval of the Band but shall be no less than the following:

     4.20.1. Commercial General Liability Insurance, including coverage for
          incidental contracts, on an occurrence basis with minimum limits of
          liability of not less than One Million Dollars ($1,000,000) per
          occurrence


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<PAGE>

          and Two Million Dollars ($2,000,000) in the aggregate for bodily
          injury and/or property damage.

     4.20.2. Property Insurance in an amount adequate to cover the full
          replacement value of all buildings, personal property, decorations,
          trade fixtures, furnishings, equipment, alterations, leasehold
          improvements and betterments, and all other contents located or placed
          in the Facility. Coverage shall insure against those risks of loss as
          are commonly covered under the Insurance Services Offices Special
          Cause of Loss form.

     4.20.3. Boiler or Machinery Insurance covering all pressure vessels,
          boilers, air conditioning equipment or similar equipment, if any, in,
          on, adjoining, above or beneath the Facility.

     4.20.4. Business Income Insurance covering at least those risks referred to
          in subparagraph 4.20.2.

     4.20.5. Worker's Compensation Insurance including statutory coverage and
          employers liability in an amount not less than one million
          ($1,000,000) per person covering all employees as required by the laws
          of Michigan or of the United States.

     4.20.6. Crime coverage - Employee Dishonesty coverage; Loss inside/outside
          the premises coverage; Depositor's forgery coverage; Computer Fraud
          coverage. Coverage shall include any employee welfare, 401k plan or
          pension benefit as required under ERISA.

     4.20.7. Automobile liability insurance including hired and non-owned
          liability not less than One Million Dollars ($1,000,000.00) combined
          single limit for bodily injury and property damage. Such non-owned and
          hired liability insurance shall include coverage for physical damage.

     4.20.8. If liquor is to be sold or dispensed, a policy of liquor liability
          insurance with limits of not less than One Million Dollars
          ($1,000,000.00) per occurrence.

     4.20.9. Umbrella or Excess Liability insurance with limits of not less that
          Ten Million Dollars ($10,000,000.00) per occurrence and Ten Million
          Dollars ($10,000,000.00) annual aggregate providing excess limits over
          the Commercial General Liability, Employers Liability, Automobile
          Liability and Liquor Liability described above.

     4.20.10. All of the above insurance shall be written by one or more
          responsible insurance companies with an A.M. Best Ratings of A-8 or
          better.

4.21. Accounting and Books of Account.


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<PAGE>

     4.21.1. Statements. Manager shall prepare and provide to the Band on a
          monthly, quarterly, and annual basis, operating statements on behalf
          of the Enterprise. The operating statements shall comply with all
          Legal Requirements and shall include an income statement, statement of
          cash flows, and balance sheet for the Enterprise. Such statements
          shall include the Operating Budget and Annual Plan and Capital Budget
          projections as comparative statements, and, after the first full year
          of operation, will include comparative statements from the comparable
          period for the prior year; and shall reflect in accordance with GAAP
          all amounts collected and received and all expenses, deductions and
          disbursements made therefrom in connection with the Enterprise.

     4.21.2. Books of Account. Manager shall maintain full and accurate books of
          account on behalf of the Enterprise at an office in the Facility and
          at such other location as may be determined by Manager. The GRA and
          other designated representatives of the Pokagon Council shall have
          immediate access to the daily operations of the Enterprise and shall
          have the unlimited right to inspect, examine, and copy all such books
          and supporting business records. Such rights may be exercised through
          the Gaming Regulatory Authority or through an agent, employee,
          attorney, or independent accountant acting on behalf of the Band.

     4.21.3. Accounting Standards. Manager shall maintain the books and records
          on behalf of the Enterprise reflecting the operations of the
          Enterprise in accordance with Generally Accepted Accounting Principles
          consistently applied and shall adopt and follow the fiscal accounting
          periods utilized by the Enterprise in its normal course of business
          (i.e., a month, quarter and year prepared in accordance with the
          Fiscal Year). The accounting systems and procedures shall comply with
          Legal Requirements and, at a minimum:

          4.21.3.1. include an adequate system of internal accounting controls;

          4.21.3.2. permit the preparation of financial statements in accordance
               with GAAP;

          4.21.3.3. be susceptible to audit in accordance with GAAP and all
               requirements of IGRA and the NIGC:

          4.21.3.4. permit the calculation and payment of the Management Fee
               described in Section 5 below and the calculation by the Tribe and
               the NIGC of annual fees payable under 25 C.F.R. Section 514.1;
               and

          4.21.3.5. provide for the allocation of operating expenses or overhead
               expenses among the Band, the Enterprise, and any other user of
               shared facilities and services.


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<PAGE>

          4.21.3.6. All monthly internal and annual audited financial statements
               shall show separately the Net Revenue (Gaming) and related
               Operating Expenses and the Net Revenue (Other) and related
               Operating Expenses, as well as Net Revenue and Operating Expenses
               for the entire Enterprise.

4.22. Annual Audit. An independent certified public accounting firm selected by
     the Band which is a "Big Five" accounting firm with not less than five (5)
     years auditing experience with gaming enterprise operations shall perform
     an annual audit of the books and records of the Enterprise and of all
     contracts for supplies, services or concessions reflecting Operating
     Expenses, and shall provide such other services as the Business Board shall
     designate. The Band, the BIA and the NIGC shall also have the right to
     perform special audits of the Enterprise on any aspect of the Enterprise at
     any time without restriction. The costs incurred for such audits shall
     constitute an Operating Expense. Such audits shall be provided by the Band
     to all applicable federal and state agencies, as required by law, and may
     be used by Manager for reporting purposes under federal and state
     securities laws, if required. All audited financial statements shall
     conform to all requirements of IGRA and the NIGC and, to the extent
     required by Legal Requirements, shall segregate gaming revenue and expenses
     from non-gaming revenue and expenses.

4.23. Manager's Contractual Authority. Manager is authorized to make, enter into
     and perform in the name of and for the account of the Band, doing business
     as the Enterprise, such contracts deemed necessary by Manager to perform
     its obligations under this Agreement, provided such contracts comply with
     the terms and conditions of this Agreement, including, but not limited to,
     Section 4.2.4, and provided such contracts do not obligate the Enterprise
     to pay sums not approved in the Operating Budget and Annual Plan or the
     Capital Budget.

4.24. Retail Shops and Concessions. The Business Board shall approve in advance
     in writing the specific type or types of shops or concessions to be
     authorized for inclusion in the Facility.

4.25. Entertainment Approvals. The Pokagon Council may require that the Business
     Board approve in advance in writing entertainment and/or sporting events to
     provide at the Facility.

4.26. Litigation. Except for disputes between the Band and Manager, and claims
     relating to the Band's status as a Tribe or the trust status of the Gaming
     Site, Manager shall bring and/or defend and/or settle any claim or legal
     action brought against Manager, the Enterprise or the Band, individually,
     jointly or severally, or any Enterprise Employee, in connection with the
     operation of the Enterprise if the basis of such claim or legal action was
     within the scope of Manager's authority under the Agreements; except that
     bringing litigation or arbitration relating to claims in excess of $100,000
     must be approved by the Business Board and, as to claims in excess of
     $500,000, by the Pokagon Council (which consent shall not be unreasonably
     withheld); and Manager shall furnish such information regarding claims,
     litigation and arbitration as the Band may request. Subject to the


                                       32

<PAGE>

     Band's approval of legal counsel, Manager shall retain and supervise legal
     counsel, accountants and such other professionals, consultants and
     specialists as Manager deems appropriate to assert or defend any such claim
     or cause of action. All liabilities, costs and expenses, including
     reasonable attorneys' fees and disbursements incurred in defending and/or
     settling any such claim or legal action which are not covered by insurance
     and which, as to Manager, relate to acts or omissions of Manager within the
     scope of its authority under the Agreements, shall be an Operating Expense,
     or, if incurred prior to the Commencement Date, shall be a Pre-Opening
     Expense. Nothing contained herein is a grant to Manager of the right to
     waive the Band's or the Enterprise's sovereign immunity. That right is
     strictly reserved to the Band, and shall at the option of the Pokagon
     Council be asserted by the Band through its counsel (whose fees and
     expenses relating to the Enterprise shall be an Operating Expense). Any
     settlement of a third party claim or cause of action shall require approval
     of the Business Board and, as to claims in excess of $100,000 not covered
     by insurance, by the Pokagon Council (which consent shall not be
     unreasonably withheld).

5.   MANAGEMENT FEE, DISBURSEMENTS, AND OTHER PAYMENTS BY MANAGER.

5.1. Management Fee. Subject to the provisions of Section 5.5, on or before the
     twenty first (21st) day of each month after the month in which the
     Commencement Date occurs, Manager is authorized by the Band to pay itself
     from the Enterprise Bank Account(s) a fee as follows: 24% of the Net
     Revenues of the Enterprise in the period from the Commencement Date until
     the first day of the month next following the Commencement Date (which
     shall constitute the commencement of the next Fiscal Year), payable on or
     before the twenty-first day of that next month; then 24% of the Net
     Revenues of each succeeding month, payable monthly in arrears, until the
     Net Revenues in a Fiscal Year have totaled $80 million; and thereafter 19%
     of Net Revenues of each succeeding month, payable monthly in arrears, to
     the extent that aggregate Net Revenues in such Fiscal Year exceed $80
     million. To the extent that aggregate Net Revenues reach $80 million during
     a month, the fee shall be prorated.

5.2. Fee Subordinated. The Management Fee shall be subordinated to the Bank
     Loan, the Equipment Loan, any other third-party loans or equipment leases
     pertaining to the Enterprise, and the Minimum Guaranteed Monthly Payment.
     Manager agrees to execute and deliver subordination agreements evidencing
     such subordination in form reasonably acceptable to the Bank Lender, the
     Equipment Lender, or any other third-party lender or equipment lessor.

5.3. Disbursements. As and when received by the Enterprise, Gross Revenues shall
     be deposited in the Dominion Account created pursuant to Section 4.19.2 of
     this Agreement. There shall, in turn, be disbursed by Manager, on a monthly
     basis, for and on behalf of the Band, funds from the Enterprise Bank
     Account(s) in accordance with Section 4.19.6 of this Agreement to pay, to
     the extent available, Operating Expenses and, subject to the terms of
     Section 5.5, required deposits into the Capital Replacement Reserve for
     Capital Replacements. Manager will reserve funds in the Enterprise in
     amounts equal to the Minimum Balance. Additionally, to cover any operating
     cash shortfall, the Band and the


                                       33

<PAGE>

     Manager shall advance monies to the Enterprise sufficient to cover any
     operating cash shortfall, such advances being made by the Band and Manager
     as follows: all such operating cash shortfalls shall be covered by Manager
     until six months after the Commencement Date (provided that Manager shall
     not be required to make advances at any time that outstanding advances
     under this subsection total more than $2,000,000); thereafter, any such
     shortfalls shall be covered by the Band.

     5.3.1. Any advances made by Manager under this subsection (the "Lakes
          Working Capital Advances") shall be evidenced by the Lakes Working
          Capital Advance Note, shall accrue interest at an annual rate equal to
          the Band Interest Rate from the date that advances are made, and shall
          be repaid as provided in Section 5.5 below. Any amounts outstanding on
          termination of this Management Agreement on account of Lakes Working
          Capital Advances shall be payable on the same terms as the Lakes
          Development Loan under the Development Agreement. The Lakes Working
          Capital Advance Note shall be a Limited Recourse obligation of the
          Band and shall be secured by the Dominion Agreement and the Lakes
          Security Agreement.

     5.3.2. Any advances made by the Band under this subsection (the "Band
          Working Capital Advances") shall accrue interest at an annual rate
          equal to the Band Interest Rate from the date that advances are made,
          and shall be repaid as provided in Section 5.5 below.

5.4. Adjustment to Bank Account. After the disbursements pursuant to Section 5.3
     and establishment of any additional reserves for future disbursements as
     Manager deems necessary and as are approved by the Business Board, taking
     into account anticipated cash flow and Operating Costs of the Enterprise,
     any excess funds remaining in the Enterprise Bank Account(s) over the
     Minimum Balance, the Capital Replacement Reserve, and such additional
     reserves as may be approved by the Business Board shall be disbursed
     monthly in accordance with Section 5.5.

5.5. Payment of Fees and Band Disbursement. Within twenty one (21) days after
     the end of each calendar month of operations, Manager shall calculate Gross
     Revenues, Operating Expenses, and Net Revenues of the Enterprise for the
     previous month's operations and the Fiscal Year's operations to date. Such
     Net Revenues shall be disbursed from the Enterprise Bank Account(s) prior
     to a Band Event of Default to the extent available in the following order
     of priority:

     5.5.1. the Minimum Guaranteed Monthly Payment described in Section 5.6;

     5.5.2. Principal due on the Lakes Working Capital Advance Note;

     5.5.3. Principal due to the Band on account of Band Working Capital
          Advances;

     5.5.4. Principal due on the Minimum Payments Note (subject to the
          provisions of Section 5.6.2);


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<PAGE>

     5.5.5. Current principal and any other payments due on all Loans (and if
          payments are due quarterly, a reserve equal to one third of the
          scheduled quarterly payment shall be deposited in a designated
          Enterprise Bank Account for such payment, and may be invested in
          accordance with the Enterprise Investment Policies pending payment);

     5.5.6. Capital Replacement Reserve contributions as described in Section
          4.15; and

     5.5.7. The Management Fee.

     All remaining Net Revenues (the "Monthly Distribution Payment") shall be
     distributed to the Band, prior to a Band Event of Default and such notice
     as Manager may be required to give before exercising rights under the
     Dominion Agreement, at the same time the Management Fee is paid. After a
     Band Event of Default and the giving of such notice, payments shall be made
     in accordance with Section 4.19.6 above and, to the extent not inconsistent
     with that subsection, the Dominion Agreement, prior to payments of any
     remaining Net Revenues to the Band.

5.6. Minimum Guaranteed Monthly Payment.

     5.6.1. The Enterprise shall, subject to the provisions of Sections 5.6.2
          through 5.6.5, pay the Band $1,000,000 per month (the "Minimum
          Guaranteed Monthly Payment"), beginning on the Commencement Date and
          continuing for the remainder of the Term. The Minimum Guaranteed
          Monthly Payment shall be payable to the Band in arrears on the twenty
          first (21st) day of each calendar month following the month in which
          the Commencement Date occurs, which payment shall have priority over
          the Management Fee. If the Commencement Date is a date other than the
          first day of a calendar month, the first payment will be prorated from
          the Commencement Date to the end of the month. Minimum Guaranteed
          Monthly Payments shall also be prorated if gaming is conducted at the
          Facility for any other partial months.

     5.6.2. Minimum Guaranteed Monthly Payments shall be deducted from any
          Monthly Distribution Payments to be received by the Band under Section
          5.5 above in any given month; provided, however, that if the Net
          Revenues in a given month are less than $1,000,000, Manager shall pay
          the funds necessary to compensate for the deficiency from its own
          funds (the "Minimum Guaranteed Payment Advances"); and provided
          further that the Minimum Guaranteed Monthly Payments shall be reduced
          to $10,000 per month for the remaining months during each Calculation
          Year after the Band has received in such Calculation Year total Net
          Revenue distributions of $12,000,000. Pursuant to Section 5.5.4,
          Manager shall be entitled to recoup from the Band's Monthly
          Distribution Payment in succeeding months of a Calculation Year any
          Minimum Guaranteed Payment Advances made under this paragraph in that
          same Calculation Year, but in no event shall this recoupment payment
          result in the Band's receiving less than its Minimum Guaranteed
          Monthly Payment in any month. Manager shall not otherwise be entitled
          to reimbursement from the Enterprise or the Band for Minimum
          Guaranteed


                                       35

<PAGE>

          Payment Advances and shall not be entitled to charge any interest on
          any Minimum Guaranteed Payment Advances made hereunder. Minimum
          Guaranteed Monthly Payments shall have priority over retirement of
          development and construction costs. Minimum Guaranteed Payment
          Advances shall not have such priority, shall not accrue interest, and
          shall be evidenced by the Minimum Payments Note. The Minimum Payments
          Note shall be secured by Great Lakes' security interest in the
          Dominion Account, but such security interest shall not alter its
          priority of payment under Section 5.5 or the limitations on recoupment
          imposed under this Section 5.6.2.

     5.6.3. The obligation to make Minimum Guaranteed Monthly Payments shall
          cease upon termination of this Agreement, unless the Agreement is
          terminated by the Band for a Material Breach by the Manager.

     5.6.4. The Minimum Guaranteed Monthly Payment shall be reduced
          prospectively from $1,000,000 to $500,000 upon the opening, if any, of
          a casino in Indiana owned by the Band, on the same cumulative basis as
          provided in Section 5.6.2.

     5.6.5. Except as provided in this Section 5.6 with regard to cumulation of
          payments in any Calculation Year or otherwise specifically provided in
          this Agreement, Manager's obligation to pay the Band the Minimum
          Guaranteed Monthly Payment is unconditional and shall not be affected
          by the actual level of funds generated by the Enterprise. Minimum
          Guaranteed Monthly Payments shall also be prorated if gaming is
          conducted at the Facility for any partial months.

5.7. Payment of Net Revenues. The Net Revenues paid to the Band pursuant to this
     Article 5 shall be payable to the Band bank account specified by the
     Pokagon Council in a notice to Manager pursuant to Section 18.2.

5.8. Harrah's Termination Agreement. Manager shall pay out of its Management Fee
     all obligations of the Band to make payments under Sections 1.4.1 and 1.4.3
     (as it pertains to interest on payments due under Section 1.4.1) of the
     Termination Agreement dated September 12, 1998 between the Band and
     Harrah's Southwest Michigan Casino Corporation (the "Harrah's Termination
     Agreement"), and shall indemnify and hold the Band harmless against all
     loss, liability and expense relating to its liability under those sections
     of the Harrah's Termination Agreement. Such payments shall not constitute
     Operating Expenses of the Gaming Facility and shall not be reimbursed by
     the Band or the Enterprise.

5.9. Band Indemnification - Indiana Casino. The Band shall, to the extent not
     prohibited under the IGRA and NIGC regulations, indemnify Manager against
     any decrease in Management Fee caused by an Indiana casino owned or
     operated by the Band, provided that (a) the alleged reduction in fees shall
     be measured against the Management Fees actually earned by Manager in the
     12-month period preceding the date on which the Manager notifies the Band
     of the claim for indemnification under this section, without giving effect
     to any subsequent actual or projected increase in such fees over that
     level; and (b) in any arbitration relating to such a claim, Manager must
     prove its claim by clear


                                       36

<PAGE>

     and convincing evidence. The Band and Manager recognize that the NIGC has
     not approved, and will not by its approval of this Agreement approve, any
     increase in the management fee payable to Manager under this Agreement as a
     result of the indemnification provided under this section; and further
     agree that the sum of payments to Manager under this section and management
     fees paid to Manager under Section 5.1 of this Agreement shall in no event
     exceed 30% of actual Net Revenues unless an amendment of this Agreement is
     first approved by the NIGC.

5.10. Maximum Dollar Amount for Recoupment. The maximum dollar amount for
     recoupment of the development and construction costs of the Facility and
     the Enterprise shall be the aggregate amount of (a) all Loans made under
     Section 9.2 of the Development Agreement, including the Lakes Development
     Loan, the Bank Development Loan, the Lakes Facility Loan and the Equipment
     Loan, plus (b) all amounts loaned under the Minimum Payments Note, the
     Lakes Working Capital Advance Note, the Non-Gaming Land Acquisition Line of
     Credit and the Transition Loan Note, provided that such aggregate amount
     shall not exceed $379,500,000.

6.   ENTERPRISE NAME; MARKS

6.1. Enterprise Name. The Enterprise shall be operated under the name "Four
     Winds Casino Resort," or such other business name as may be approved by the
     Manager and the Band (the "Enterprise Name").

6.2. Marks. All Marks shall be approved by the Business Board and shall be
     subject to the reasonable approval of the Pokagon Council. Prior to the
     Commencement Date and from time to time during the Term hereof, Manager
     agrees to take such actions on behalf of the Band as are reasonably
     necessary to register and protect all Marks.

6.3. Signage. Manager shall erect and install in accordance with local codes and
     regulations appropriate signs in, on or about the Facility, including, but
     not limited to, signs bearing Marks as part of the Enterprise Name. The
     costs of purchasing, leasing, transporting, constructing, maintaining and
     installing the required signs and systems, and of registering and
     protecting all Marks, shall be part of the Operating Expenses.

7.   TAXES

7.1. State and Local Taxes. If the State or any local government attempts to
     impose any tax including any possessor interest tax upon any party to this
     Agreement or upon the Enterprise, the Facility or the Gaming Site, the
     Pokagon Band may direct the Enterprise, in the name of the appropriate
     party or parties in interest, to resist such attempt through legal action.
     The costs of such action and the compensation of legal counsel shall be an
     Operating Expense of the Enterprise. Any such tax shall constitute an
     Operating Expense of the Enterprise. This section shall in no manner be
     construed to imply that any party to this Agreement or the Enterprise is
     liable for any such tax.

7.2. Band Taxes. The Band agrees that neither it nor any agent, agency,
     affiliate or representative of the Band will impose any taxes, fees,
     assessments or other charges of


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<PAGE>

     any nature whatsoever on payments of any debt service on any Loan or on
     debt service on any other financing for the Facility or for the Enterprise,
     or on the revenues of the Enterprise or the Facility, or on the Management
     Fee as described in Section 5.1 of this Agreement; but the Band reserves
     the right to otherwise impose usual and customary taxes and fees on
     transactions at or in connection with the Facility or on the Facilities'
     employees, officers, directors, vendors and patrons. Without limiting the
     foregoing, the Band shall be specifically permitted to impose (a) charges,
     assessments, fines or fees imposed by governmental entities of the Band
     which are reasonably related to the cost of Tribal governmental regulation
     of public health, safety or welfare, or the integrity of Tribal gaming
     operations, and (b) other taxes, charges, assessments or fees imposed
     against the Enterprise or property of the Enterprise, or sales, use,
     excise, hotel occupancy and other similar taxes (excluding taxes, charges,
     assessments or fees against real or personal property of the Facility or on
     gaming revenues or earnings) of such types and percentage amounts not to
     exceed those imposed by any state or local government within the Restricted
     Territory.

7.3. Compliance with Internal Revenue Code. Manager shall comply with all
     applicable provisions of the Internal Revenue Code.

8.   BUY-OUT OPTION

     The Band shall have the right, beginning two years after the Commencement
Date, to buy out the remaining term of this Agreement (the "Buyout Option"),
provided that such buyout includes repayment in full of all outstanding debt
owed by the Band to Manager, including without limitation the Lakes Development
Loan, the Lakes Facility Loan (to the extent made by Manager), the Transition
Loan, the Non-Gaming Land Acquisition Line of Credit, and either repayment of
the Bank Development Loan, the Lakes Facility Loan and the Equipment Loan (to
the extent they are guaranteed by Manager or are subject to credit enhancements
furnished by Manager) or release of Manager's and Lakes' guarantees and other
credit enhancements, if any, relating to those Loans. The Buyout Option price
shall be determined by multiplying the average monthly Management Fee earned
during the 12 month period prior to exercise of the Buyout by the number of
months remaining in the term of this Agreement, and discounting future payments
at a discount rate equal to the Band Interest Rate. The Band shall not be
required in connection with its exercise of the Buyout Option to pay any
termination fee or to make any payment related to the value of gaming equipment,
amenities, or any other asset of the Facility or the Enterprise.

9.   EXCLUSIVITY; NON-COMPETITION

9.1. Exclusivity in Michigan. The Band shall deal exclusively with Manager for
     gaming development on Indian lands in Michigan from the date of execution
     of this Agreement through the earlier of five years from the Commencement
     Date or termination or buyout of the Agreements.

9.2. Indiana Casino. Manager and Lakes recognize that the Band intends to
     develop a casino in Indiana, and that the Band shall have no obligations to
     Manager or Lakes in that regard; except that the Band agrees that, if it
     decides to engage an outside manager to develop or operate an Indiana
     casino, it shall discuss contracting with Manager for such


                                       38

<PAGE>

     development or operation for 45 days before soliciting proposals from third
     parties as to management or development of that casino. No obligation to
     enter into an agreement with Manager shall be implied from this
     undertaking, and the Band shall retain full and absolute discretion in that
     regard.

9.3. Non-Competition. Manager and Lakes each agree that for five years after
     execution of the Agreements or the Term of the Agreements, whichever is
     greater, neither it nor any of their respective present or future Insiders
     will without the prior written approval of the Pokagon Council directly or
     indirectly in the Restricted Territory develop, operate, consult with
     regard to, or be in any way affiliated with any non-Indian gaming facility,
     any Class II or III Gaming facility or any other kind of gaming, or any
     hotels or other amenities related to such gaming or facility; except that
     Insiders shall not include (a) Kids Quest, Grand Casinos, Inc., or
     Innovative Gaming Corp. by reason of (i) the service of (A) Lyle Berman as
     director or employee (without management responsibility) of such entities,,
     or (ii) any stock ownership of Manager or Lakes in such entities; or (b)
     any entity because of the investment banking services of Ron Kramer, a
     director of Lakes. References in this section shall include such entity's
     successor, whether by merger, acquisition or otherwise.

9.4. Permitted Assignment; Change of Control

     9.4.1. Manager may not assign its rights under this Agreement without the
          Band's prior written consent, except that Manager may assign its
          rights under such Agreement, but not its obligations, to a wholly
          owned subsidiary of Lakes.

     9.4.2. The Band may not assign its rights under this Agreement; except that
          the Band may, without the consent of Manager, but subject to approval
          by the Secretary of the Interior or the Chairman of the NIGC or his
          authorized representative, if required, assign this Agreement and the
          assets of the Enterprise to a Corporate Commission or other
          instrumentality of the Band organized to conduct the business of the
          Project and the Enterprise for the Band that assumes all obligations
          herein. No assignment authorized hereunder shall be effective until
          all necessary governmental approvals have been obtained. No such
          assignment shall relieve the Band of any obligation hereunder, unless
          otherwise agreed by Manager or the holder of such obligation.

     9.4.3. The Band shall be entitled to terminate the Agreements if Manager or
          Lakes undergoes a Change of Control or if Great Lakes ceases to be a
          wholly-owned subsidiary of Lakes, in each case without the prior
          written consent of the Band. The Band shall not be required to prepay
          any amounts advanced by Manager, Lakes or any third party in the event
          of such termination, and such obligations shall remain payable in
          accordance with their payment terms. Manager and Lakes agree to notify
          the Band in writing within 30 days after the occurrence of any event
          described in Clauses I or II in the definition of Change of Control,
          and within 30 days of Manager's knowledge of any event described in
          Clauses III or IV of that definition.


                                       39

<PAGE>

          "Change of Control," for purposes of this provision, means (I) the
          merger, consolidation or other business combination of Manager or
          Lakes with, or acquisition of all or substantially all of the assets
          of Manager or Lakes by, any other entity, except that (A) Manager may
          merge with any other entity wholly owned by Lakes if the surviving
          entity assumes the obligations of Manager under the Agreements, and
          (B) Lakes Gaming and Resorts, LLC may merge with any other entity
          wholly owned by Lakes if the surviving entity assumes the obligations
          of Lakes Gaming and Resorts, LLC under the Guaranty, provided that in
          each case Lakes shall remain liable under the Guaranty; (II) Lyle
          Berman's ceasing to be either Chief Executive Officer or Chairman of
          the Board of Lakes (other than on account of death or disability, and
          except as provided at the end of this definition); (III) the
          acquisition by any person or affiliated group of persons not presently
          a shareholder of Manager of beneficial ownership of 30% or more in
          interest of the outstanding voting stock of Lakes, as determined under
          17 CFR Sections 240.13d-3 or 240.16a-1; or (IV) the acquisition by any
          person or affiliated group of persons not presently a shareholder of
          Lakes of beneficial ownership of 10% or more in interest of the
          outstanding voting stock of Lakes, as determined under 17 CFR Sections
          240.13d-3 or 240.16a-1, if a majority of the Board of Directors of
          Lakes is replaced within two years after such acquisition by directors
          not nominated and approved by the Board of Directors.

9.5. Restrictions on Collateral Development. Manager and Lakes each agree that
     for five years after execution of the Agreements or the Term of the
     Agreements, whichever is greater, neither it nor any of its present or
     future Insiders will directly or indirectly purchase any land or operate,
     manage, develop or have any direct or indirect interest in any commercial
     facilities or business venture located within 20 miles of the Facility
     without the prior written consent of the Band.

10.  REPRESENTATIONS, WARRANTIES, AND COVENANTS

10.1. Representations and Warranties of the Band. The Band represents and
     warrants to Manager as follows:

     10.1.1. Due Authorization. The Band's execution, delivery and performance
          of this Agreement and all other instruments and agreements executed in
          connection with this Agreement have been properly authorized by the
          Band and do not require further Band approval.

     10.1.2. Valid and Binding. This Agreement and all other instruments and
          agreements executed in connection with this Agreement have been
          properly executed, and once approved in accordance with Legal
          Requirements constitutes the Band's legal, valid and binding
          obligations, enforceable against the Band in accordance with their
          terms.

     10.1.3. Pending Litigation. There are no actions, suits or proceedings,
          pending or


                                       40

<PAGE>

          threatened, against or affecting the Band before any court or
          governmental agency that relate to the Project, the Enterprise or any
          transaction contemplated by the Transaction Documents, except as
          disclosed on Exhibit B.

10.2. Band Covenants. The Band covenants and agrees as follows:

     10.2.1. No Impairment of Contract. During the term of this Agreement and
          the Development Agreement, the Band shall enact no law impairing the
          obligations or contracts entered into in furtherance of the
          development, construction, operation and promotion of Gaming on the
          Gaming Site. Neither the Pokagon Council nor any committee, agency,
          board of any other official body, and no officer or official of the
          Band shall, by exercise of the police power or otherwise, act to
          modify, amend, or in any manner impair the obligations of contracts
          entered into by the Pokagon Council or the GRA or other parties in
          furtherance of the financing, development, construction, operation, or
          promotion of Gaming at the Gaming Site without the written consent of
          the non-tribal parties to such contracts.

     10.2.2. Waiver of Sovereign Immunity. The Band will waive sovereign
          immunity on the limited basis described in Section 13.1 with respect
          to this Agreement.

     10.2.3. Valid and Binding. This Agreement, the Development Agreement, the
          Lakes Development Note, the Lakes Facility Note, the Lakes Working
          Capital Advance Note, the Minimum Payments Note, the Transition Note
          and the Non-Gaming Land Acquisition Line of Credit, and each other
          contract contemplated by this Agreement shall, once approved in
          accordance with Legal Requirements, be enforceable in accordance with
          their terms.

     10.2.4. Legal Compliance. In its performance of this Agreement, the Band
          shall comply with all Legal Requirements.

     10.2.5. No Termination. The Band shall not act in any way whatsoever,
          directly or indirectly, to cause this Agreement to be amended,
          modified, canceled, or terminated, except pursuant to its express
          terms or with the consent of Manager.

     10.2.6. Title to Assets. During the Term of this Agreement the Band shall
          retain its interest in the title to (or the leasehold interest in) all
          Enterprise assets, including the Gross Revenues, the Gaming Site and
          any fixtures, supplies and equipment, subject to the purchase money
          security interest in equipment securing the Equipment Loan, Lakes'
          security interest in the Dominion Account and (to the extent
          applicable) in the Furnishings and Equipment (until all obligations of
          the Band to Lakes secured by that


                                       41

<PAGE>

          account and such Furnishings and Equipment are paid in full, to the
          extent provided in Section 9.2.1(j) of the Development Agreement), and
          any other liens granted in accordance with the Development Agreement.

     10.2.7. Notwithstanding the foregoing, a breach of this subsection 10.2
          shall not be a basis to overturn, negate or in any manner modify any
          Governmental Action through arbitration or other proceedings, and any
          remedy for such breach shall be subject to the Specific Performance
          Restriction. The preceding sentence does not prevent an arbitrator
          from determining that the taking of any Governmental Action or the
          failure to take any Governmental Action, which is not caused by a
          breach of Great Lakes or Lakes' obligations under the Agreements or
          the Guaranty, constitutes a breach of this Agreement by the Band,
          thereby resulting in liability on the part of the Band for damages in
          favor of the Manager as provided in this Agreement.

10.3. Representations and Warranties of Manager and Lakes. Manager and Lakes
     each represent and warrant to the Band as follows:

     10.3.1. Due Authorization. Manager's and Lakes' execution, delivery and
          performance of this Agreement, the Guaranty and all other instruments
          and agreements executed in connection with this Agreement have been
          properly authorized by and Lakes, respectively, to the extent they are
          parties thereto, and do not require further approval.

     10.3.2. Valid and Binding. This Agreement and all other instruments and
          agreements executed in connection with this Agreement have been
          properly executed and constitutes Manager's and Lakes' respective
          legal, valid and binding obligation, enforceable against Manager and
          Lakes in accordance with their terms to the extent they are parties
          thereto.

     10.3.3. Litigation. There are no actions, suits or proceedings pending or
          threatened against or affecting Manager or Lakes before any court or
          governmental agency that would in any material way affect Manager's or
          Lakes' ability to perform this Agreement and the Guaranty, to the
          extent they are parties thereto, other than litigation disclosed in
          filings by Lakes with the Securities and Exchange Commission. Manager
          and Lakes each warrant that no litigation so disclosed in any material
          way affects or will affect Managers' and Lakes' ability to perform
          under the Agreements or the Guaranty.

     10.3.4. Certifications. The certifications contained in the Respondent
          Certifications attached as Exhibit H to Manager's Proposal (the
          "Certificate") are true and correct as to Manager, Lakes and as to all
          Insiders of Manager and Lakes, as if each such Insider were the
          "undersigned respondent" on such Certificate.


                                       42

<PAGE>

10.4. Manager Covenants. Manager and Lakes each covenant and agree as follows:

     10.4.1. Noninterference in Band Affairs. Manager and Lakes each agrees not
          to interfere in or attempt to wrongfully influence the internal
          affairs or government decisions of the Band government by offering
          cash incentives, by making written or oral threats to the personal or
          financial status of any person, or by any other action, except for
          actions in the normal course of business of Manager that relate to the
          Enterprise.

     10.4.2. Prohibition of Payments to Members of Band Government. Manager and
          Lakes represent and warrant that no payments have been or will be made
          by Manager or Lakes, or any Affiliate or Insider of Manager or Lakes,
          to any Member of the Band Government, any Band official, any Relative
          of a Member of Band Government or Band official, any Band Government
          employee, any agent of the Band, or any entity known by Manager or
          Lakes to be associated with any such person, for the purpose of
          obtaining any special privilege, gain, advantage or consideration.

     10.4.3. Prohibition of Hiring Members of Band Government. No Member of the
          Band Government, Band official, Relative of a Member of the Band
          Government or Band official or employee of the Band Government may be
          employed at the Enterprise without a written waiver of this Section
          10.4.3 by the Band. For this purpose, the Band will identify all such
          persons to Manager in a writing and take reasonable steps to keep the
          list current; Manager shall not be held responsible if any person not
          on such written list is employed.

     10.4.4. Prohibition of Financial Interest in Enterprise. No Member of the
          Band Government or Relative of a Member of the Band Government shall
          have a direct or indirect financial interest in the Enterprise greater
          than the interest of any other member of the Band; provided, however,
          nothing in this subsection shall restrict the ability of a Band member
          who is not a Member of Band Government or Relative of a Member of the
          Band Government to purchase or hold stock in Lakes where (i) such
          stock is publicly held and (ii) the Band member acquires less than 5%
          of the outstanding stock in the corporation.

     10.4.5. No Amendment. Neither Manager nor Lakes shall act in any way
          whatsoever, directly or indirectly, to cause this Agreement to be
          amended, modified, canceled, or terminated, except pursuant to its
          express terms or with the consent of the Band.

     10.4.6. CRC. CRC shall not during the Term of the Management Agreement (a)
          be directly or indirectly affiliated with Manager, Lakes or the
          Facility, whether as joint venturer or otherwise, (b) be employed by
          Manager or Lakes or, to the knowledge of Manager and Lakes, any entity
          having any contractual relationship with Manager or Lakes, with regard
          to the


                                       43

<PAGE>

          Facility, or (c) directly or indirectly receive any payment or
          anything of value from Manager from or out of the Management Fee or
          any other payment made to Manager by the Band or the Facility. Manager
          agrees to indemnify the Band and its members and hold them harmless
          against all loss, liability and expense relating to claims, of
          whatever kind or nature, of CRC against any one or more of them. The
          Band consents to the execution and delivery by Lakes of a certain
          Conditional Release and Termination Agreement between Lakes and CRC
          dated May 20, 1999, as amended by Amendment dated on or about July 7,
          1999, true copies of which are attached as Exhibit M of the
          Development Agreement, provided that CRC executes and delivers to the
          Band and its members a general release in the form attached as Exhibit
          N of the Development Agreement. Manager and Lakes each warrant that it
          has no agreements or understandings with CRC in any way related to the
          Band or the Enterprise other than as set forth in Exhibit M of the
          Development Agreement. The Band further agrees that Lakes may hold
          stock of CRC as collateral for Lakes' guarantee of a loan to a third
          party, provided that on default it proceeds to liquidate such
          collateral in a reasonably prompt and orderly manner, and that Lyle
          Berman may continue to hold approximately 350,000 shares of CRC so
          long as he plays no role in the management of, and does not sit on,
          the board of directors of CRC.

10.5. No Liens. Subject to the exceptions stated in Section 10.6, the Band
     specifically warrants and represents to Manager that during the term of
     this Agreement the Band shall not act in any way whatsoever, either
     directly or indirectly, to cause any person or entity to become an
     encumbrancer or lienholder of the Gaming Site or the Facility except as
     provided under the Agreements. Except as otherwise specifically provided in
     the Agreements, Manager specifically warrants and represents to the Band
     that during the term of this Agreement Manager shall not act in any way,
     directly or indirectly, to cause any person or entity to become an
     encumbrancer or lienholder of the Gaming Site or the Facility, or to obtain
     any interest in this Agreement without the prior written consent of the
     Band, and, where applicable, the United States. The Band and Manager shall
     keep the Facility and Gaming Site free and clear of all enforceable
     mechanics' and other enforceable liens resulting from the construction of
     the Facility and all other enforceable liens which may attach to the
     Facility or the Gaming Site, which shall at all times remain the property
     of the United States in trust for the Band.

10.6. Permitted Liens. The Band shall have the right to grant the following
     liens and security interests pertaining to the Enterprise and the Facility:

     10.6.1. The purchase money security interest in Furnishings and Equipment
          granted to the Equipment Lender to secure the Equipment Loan and, to
          the extent provided in Section 9.2.1(j) of the Development Agreement,
          security interests in Furnishings and Equipment granted to Great
          Lakes;

     10.6.2. Security interests in Facility or Enterprise revenues, subordinate
          to the right of Manager to receive payment of Management Fees and
          payments


                                       44

<PAGE>

          on the Lakes Development Loan, the Lakes Facility Loan, the Lakes
          Working Capital Advance Note, the Minimum Payments Note, and any other
          amounts due to the Manager under the Agreements and related documents;

     10.6.3. Security interests in Facility or Enterprise assets, as provided in
          Section 9.2.5(b) of the Development Agreement; and

     10.6.4. Other liens and security interests in assets of the Facility and
          Enterprise with the written consent of Manager and the Bank Lender,
          which consent will not be unreasonably withheld.

     10.6.5. [intentionally omitted]

10.7. Brokerage. Manager, Lakes and the Band represent and warrant to each other
     that neither has sought the services of a broker, finder or agent in this
     transaction, and neither has employed, nor authorized, any other person to
     act in such capacity. Manager, Lakes and the Band each hereby agrees to
     indemnify and hold the other harmless from and against any and all claims,
     loss, liability, damage or expenses (including reasonable attorneys' fees)
     suffered or incurred by the other party as a result of a claim brought by a
     person or entity engaged or claiming to be engaged as a finder, broker or
     agent by the indemnifying party; subject, as to Lakes' relations with CRC,
     to the provisions of Section 10.4.6.

11.  DEFAULT

11.1. Events of Default by the Band. Each of the following shall be an event of
     default by the Band under this Agreement ("Band Event of Default"):

     11.1.1. The Band shall commit a Material Breach of any of the Band's
          obligations under this Agreement or any other Transaction Documents,
          subject to the rights to cure provided in this Agreement or in any of
          such documents.

     11.1.2. Any of the representations and warranties made by the Band in
          Section 10.1 of this Agreement or in any other Transaction Documents
          were not true in any material respect when made or would not be
          materially true if made on the date such performance would otherwise
          be due.

     11.1.3. The Band violates the provisions of Section 9.1 of this Agreement,
          subject to notice and right to cure.

     11.1.4. The Band commits any Material Breach of the Development Agreement
          which is not cured within any applicable cure period.

     If any Band Event of Default occurs, Manager may, upon written notice to
     Band, exercise the rights and remedies available to Manager provided in
     this Agreement; provided, however, that all such rights and remedies shall
     be Limited Recourse.


                                       45

<PAGE>

11.2. Events of Default by Manager. Each of the following shall be an event of
     default by Manager under this Agreement ("Manager Event of Default"):

     11.2.1. Any Minimum Guaranteed Monthly Payment, Monthly Distribution
          Payment or other payment due the Band under this Agreement is not paid
          within ten (10) days after its due date.

     11.2.2. Manager or Lakes shall commit any other Material Breach of any of
          Manager's or Lakes' obligations under this Agreement, the Guaranty, or
          any other Transaction Documents, as applicable.

     11.2.3. Any representation or warranty that Manager or Lakes has made under
          this Agreement or any other Transaction Document shall prove to have
          been untrue in any material respect when made or would not be
          materially true if made on the date such performance would otherwise
          be due.

     11.2.4. Manager or Lakes violates the provisions of Article 9 of this
          Agreement applicable to Manager or Lakes, subject to rights of notice
          and cure to the extent provided in that Article.

     11.2.5. Manager or Lakes (to the extent applicable) commits or causes any
          Material Breach of the Development Agreement which is not cured within
          any applicable cure period.

     11.2.6. [intentionally omitted]

     11.2.7. Manager violates Legal Requirements in the management of the
          Enterprise, including without limitation the Band Gaming Ordinance,
          and such violation is not cured within (a) thirty (30) days after
          notice, as to the Band Gaming Ordinance or any other gaming laws or
          regulations, or (b) within a reasonable period, not to exceed 90 days,
          as to any other Legal Requirements.

     If any Manager Event of Default occurs, the Band may, upon written notice
     to Manager, exercise the rights and remedies available to the Band provided
     in this Agreement.

11.3. Material Breach; Right to Cure.

     11.3.1. Neither Great Lakes nor the Band may terminate this Agreement,
          recover damages or foreclose on security interests on grounds of a
          potential Material Breach of this Agreement or any other Transaction
          Document unless it has provided written notice to the other party of
          its intention to terminate this Agreement, seek damages or foreclose.
          During the 30 day period after the receipt of the notice to terminate
          (as to defaults which can be cured within 30 days) or the 90 day
          period after such receipt (as to defaults which cannot be cured within
          30 days), whichever is applicable,


                                       46

<PAGE>

          the party receiving the notice may cure the alleged default and
          (without waiting for the expiration of such periods) any party may
          submit the matter to arbitration under the dispute resolution
          provisions of this Agreement set forth at Article 13. The
          discontinuance or correction of a Material Breach shall constitute a
          cure thereof. Nothing in this subsection shall affect or impair the
          obligation of any party to promptly comply with all Legal
          Requirements, or limit any sanctions that may be imposed for any
          violation thereof; nor shall this subsection prevent a party taking
          such actions within such 30 or 90 day periods as may be permitted or
          required by this Agreement, the Gaming Ordinance or NIGC regulations.
          The provisions of this subsection and the parallel provisions of
          Section 12.3 of the Development Agreement shall control over any
          conflicting provisions in any other Transaction Document.

     11.3.2. Nothing in this subsection 11.3 shall apply to termination under
          Sections 12.1, 12.2, 12.6, 12.7 or 12.8 of this Agreement.

12.  TERMINATION

12.1. Voluntary Termination. This Agreement may be terminated by mutual written
     consent.

12.2. Termination if No NIGC Approval. The Band and Manager may each
     unilaterally terminate the Agreements by written notice if NIGC Approval
     has not occurred on or before August 26, 2007.

12.3. Manager Right to Terminate on Band Event of Default. Manager shall be
     entitled to terminate the Agreements (a) upon a Band Event of Default or
     (b) as specifically provided in the Agreements, subject to right to cure
     and arbitration as provided in this Agreement.

12.4. Band Right to Terminate on Manager Event of Default. The Band shall be
     entitled to terminate the Agreements (a) upon a Manager Event of Default or
     (b) as specifically provided in the Agreements, subject to right to cure
     and arbitration as provided in this Agreement.

12.5. Band Right to Terminate for Material Adverse Change. Prior to the
     Commencement Date, the Band shall be entitled to terminate the Agreements
     in the event of a Material Adverse Change; provided that the following
     procedures shall apply:

     12.5.1. Manager shall notify the Band in the event of any Material Adverse
          Change.

     12.5.2. Manager shall cause Lakes to send to the Band copies of all filings
          by Lakes with the Securities and Exchange Commission under Forms 8K,
          10Q and 10K; shall furnish the Band with copies of such other SEC
          filings that the Band may request; and shall furnish the Band with
          such other information concerning a Material Adverse Change as the
          Band


                                       47

<PAGE>

          may reasonably request.

     12.5.3. If the Band believes that a Material Adverse Change has occurred,
          the Band shall so notify Manager and Lakes in writing and shall
          request specified further assurances of their respective continued
          ability to perform under the Agreements, the Guaranty, and all related
          agreements and instruments.

     12.5.4. Within thirty (30) days after that notification Manager shall admit
          or deny, and shall cause Lakes if applicable to admit or deny, the
          alleged Material Adverse Change, giving the specific basis for its
          response; shall state, and shall cause Lakes to state, whether it
          agrees to provide the requested further assurances; if it agrees to
          provide the requested further assurances, shall tender its performance
          in that regard; and, if it admits a Material Adverse Change but
          disputes the requested further assurances, shall tender such further
          assurances by it and Lakes as it deems sufficient to ensure its
          continued ability to perform under the Agreements, the Guaranty, and
          all related agreements and instruments.

     12.5.5. If Manager or Lakes denies the Material Adverse Change or disputes
          that the requested further assurances are reasonably required to
          assure the Band of their respective continued ability to perform under
          the Agreements, the Guaranty, and all related agreements and
          instruments, those issues shall be submitted to arbitration. The
          arbitrator shall determine whether (a) a Material Adverse Change has
          occurred; (b) the requested further assurances are reasonably required
          to assure the Band of their respective continued ability to perform
          under the Agreements, the Guaranty, and all related agreements and
          instruments; and (c) if a Material Adverse Change has occurred but the
          requested further assurances are not reasonably required to so assure
          the Band, what further assurances must be provided by Manager and
          Lakes to reasonably assure the Band of their continued ability to
          perform under the Agreements, the Guaranty, and all related agreements
          and instruments. Any further assurances required under the
          arbitrator's award must be furnished by Manager and Lakes within
          thirty (30) days after entry of the award.

     12.5.6. If Manager or Lakes admit the Material Adverse Change but does not
          furnish further assurances, or if Manager or Lakes does not timely
          provide further assurances pursuant to an arbitrator's award, the Band
          may terminate the Agreements by written notice to Manager.

     12.5.7. Manager, Lakes and the Band agree that the continuing ability of
          Manager and Lakes to make the payments and advances provided under
          this Agreement, the Guaranty, and all related agreements and
          instruments, and to ensure the Band can obtain the Loans to develop,
          construct, equip and operate the Facility provided in this Agreement,
          is an essential part of the consideration for which the Band bargained
          in entering into the


                                       48

<PAGE>

          Agreements.

12.6. Termination if Manager License Withdrawn or on Conviction. The Band may
     also terminate this Agreement immediately where Manager or Lakes has had
     its gaming license withdrawn in any jurisdiction by final administrative
     action (the finality of which shall be determined without regard to pending
     or possible judicial review or appeal), or if Manager, Lakes or an Insider
     of Manager or Lakes, has been convicted of a criminal (a) felony or (b)
     misdemeanor offense involving gaming, fraud or moral turpitude; provided,
     however, the Band may not terminate this Agreement based on a director or
     officer's conviction where Manager or Lakes terminates such individual
     within ten (10) days after receiving notice of the conviction.

12.7. Termination on Buy-Out. This Agreement shall terminate if the Band
     exercises its option to buy out the Agreement in accordance with Section 8.

12.8. Involuntary Termination Due to Changes in Legal Requirements. It is the
     understanding and intention of the parties that the development,
     construction and operation of the Enterprise shall conform to and comply
     with all Legal Requirements. If during the term of this Agreement, the
     Enterprise or any material aspect of Gaming at the Gaming Site is
     determined by the Congress of the United States, Department of the Interior
     of the United States of America, the NIGC, or the judgment of a court of
     competent jurisdiction (after expiration of the time within which appeals
     must be filed or completion of appeals, if any) to be unlawful under
     federal law, the obligations of the parties hereto shall cease and the
     Agreements shall be of no further force and effect as of the date of such
     determination; subject, however, to the following provisions as to damages:

     12.8.1. If the date of such determination is prior to the Commencement
          Date, Manager shall be entitled to damages as provided in Section 14.4
          of the Development Agreement with regard to failure to obtain NIGC
          Approval.

     12.8.2. If the date of such determination is after the Commencement Date:

          (a) The Band shall retain all fees and Monthly Payments previously
          paid or advanced to it pursuant to the Agreements, as well as all
          Tribal Distributions and Non-Gaming Lands, the Gaming Site and any
          other property transferred into trust;

          (b) Any money loaned to the Band by Lakes or Great Lakes, or owed to
          Lakes or Great Lakes under the Transaction Documents as of the date of
          such determination shall be repaid to Great Lakes or Lakes in
          accordance with the Limited Recourse terms of the Lakes Development
          Note, the Lakes Facility Note, the Lakes Working Capital Advance Note,
          the Minimum Payments Note, the Transition Loan Note, the Non-Gaming
          Acquisition Line of Credit, this Agreement and any other applicable
          Transaction Documents; and

          (c) The Band shall retain its interest in the title (and any lease) to
          all Enterprise assets, including the Gross Revenues, the Gaming Site
          and any fixtures, supplies and equipment (except, as to Surplus
          Equipment, as provided in Section 13.7(b)(iv) of


                                       49

<PAGE>

          the Development Agreement), subject to the purchase money security
          interest in Furnishings and Equipment securing the Equipment Loan,
          Manager's security interest in the Dominion Account and Furnishings
          and Equipment, if any (until all obligations of the Band to Manager
          secured by that account and Furnishings and Equipment are paid in
          full, to the extent provided in Section 9.2.1(j) of the Development
          Agreement), and any other liens granted in accordance with the
          Development Agreement; and

          (d) Any Net Revenues accruing through the date of termination shall be
          distributed in accordance with Article 5 of this Agreement.

12.9. Upon termination of this Agreement any claim of Manager or Lakes against
     the Band, or of the Band against the Manager or Lakes, shall be subject to
     their respective rights of recoupment and setoff, if any.

13.  DISPUTE RESOLUTION; LIQUIDATED DAMAGES

13.1. Band's Waiver of Sovereign Immunity and Consent to Suit. The Band
     expressly waives its sovereign immunity from suit for the purpose of
     permitting or compelling arbitration as provided in this Article 13 and
     consents to be sued in the United States District Court for the Western
     District of Michigan - Southern Division, the United States Court of
     Appeals for the Sixth Circuit, and the United States Supreme Court for the
     purpose of compelling arbitration or enforcing any arbitration award or
     judgment arising out of this Agreement, the Transition Loan Note, the Lakes
     Development Note, the Lakes Facility Note, the Lakes Working Capital
     Advance Note, the Minimum Payments Note, the Non-Gaming Land Acquisition
     Line of Credit, the Development Agreement, any mortgages granted to Manager
     securing the Lakes Development Note or, the Non-Gaming Land Acquisition
     Line of Credit, the Dominion Agreement, the Lakes Security Agreement, or
     other obligations between the parties. If the United States District Court
     lacks jurisdiction, the Band consents to be sued in the Michigan State
     Court system. The Band waives any requirement of exhaustion of tribal
     remedies. Without in any way limiting the generality of the foregoing, the
     Band expressly authorizes any governmental authorities who have the right
     and duty under applicable law to take any action authorized or ordered by
     any such court, and to take such action, including without limitation,
     repossessing or foreclosing on any real property not in trust and or on
     equipment subject to a security interest, or on the Dominion Account, or
     otherwise giving effect to any judgment entered; provided, however, that
     liability of the Band under any judgment shall always be Limited Recourse,
     and in no instance shall any enforcement of any kind whatsoever be allowed
     by Lakes or Manager against any assets of the Band other than the limited
     assets of the Band specified in Section 13.3.1 below. The Band appoints the
     Chairman of the Pokagon Council and the Secretary of the Pokagon Council as
     its agents for service of all process under or relating to the Agreements.
     The Band agrees that service in hand or by certified mail, return receipt
     requested, shall be effective for all purposes under or relating to the
     Agreements if served on such agents.

13.2. Arbitration. All disputes, controversies or claims arising out of or
     relating to this Agreement, any other Transaction Documents or other
     obligations between Lakes or


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<PAGE>

     Manager and the Band shall be settled by binding arbitration in accordance
     with the Commercial Arbitration Rules of the American Arbitration
     Association in effect on the date demand for arbitration is made, and the
     Federal Arbitration Act. The parties agree that binding arbitration shall
     be the sole remedy as to all disputes arising out of this Agreement, except
     for disputes requiring injunctive or declaratory relief. Notwithstanding
     the foregoing, an arbitrator shall not have the power to compel, overturn,
     negate or in any manner modify any Governmental Action, and any arbitration
     award or related judicial decree or judgment shall be subject to the
     Specific Performance Restriction. The preceding sentence does not prevent
     an arbitrator from determining that the taking of any Governmental Action
     or the failure to take any Governmental Action, which is not caused by a
     breach of Manager or Lakes' obligations under the Agreements or the
     Guaranty, constitutes a breach of this Agreement by the Band or the
     impairment of rights of Manager under this Agreement, thereby resulting in
     liability on the part of the Band for damages in favor of the Manager as
     provided in this Agreement and enforcement of the obligations of the Band
     to Manager, including any security agreements and collateral instruments,
     in accordance with their terms.

     13.2.1. Choice of Law. In determining any matter the Arbitrator(s) shall
          apply the terms of this Agreement, without adding to, modifying or
          changing the terms in any respect, and shall apply Michigan law.

     13.2.2. Place of Hearing. All arbitration hearings shall be held at a place
          designated by the arbitrator(s) in Kalamazoo, Michigan or at such
          other place agreed to by the parties.

     13.2.3. Confidentiality. The parties and the arbitrator(s) shall maintain
          strict confidentiality with respect to the arbitration.

13.3. Limitation of Actions. The Band's waiver of immunity from suit is
     specifically limited to the following actions and judicial remedies:

     13.3.1. Damages. The enforcement of an award of money and/or damages by
          arbitration; provided that the award of any arbitrator and/or court
          must be Limited Recourse, and no arbitrator or court shall have
          authority or jurisdiction to order execution against any assets or
          revenues of the Band except (a) undistributed or future Net Revenues
          of the Enterprise or Subsequent Gaming Facility Revenues; (b) as to
          the Equipment Loan, the Furnishings and Equipment securing that Loan;
          (c) if the Commencement Date does not occur, Subsequent Gaming
          Facility Revenues to the extent provided in this Agreement; (d) as to
          the Lakes Development Note and the Non-Gaming Acquisition Line of
          Credit, mortgages on the Non-Gaming Lands prior to their transfer into
          trust; (e) after the Commencement Date occurs, funds on deposit in the
          Dominion Account to the extent provided in Section 9.2.1(j) of the
          Development Agreement and the Dominion Agreement, or in any other
          dominion agreement executed by the Band; and (f) as to the Lakes
          Development Note, the Lakes Facility Note, the Lakes Working Capital
          Advance Note, the Non-Gaming Land


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<PAGE>

          Acquisition Line of Credit and the Transition Loan, Furnishings and
          Fixtures to the extent provided in Section 9.2.1(j) of the Development
          Agreement. In no instance shall any enforcement of any kind whatsoever
          be allowed against any assets of the Band other than the limited
          assets of the Band specified in this subsection.

     13.3.2. Consents and Approvals. The enforcement of a determination by an
          arbitrator that the Band's consent or approval has been unreasonably
          withheld contrary to the terms of this Agreement or any other
          Transaction Document, provided that such enforcement shall be subject
          to the Specific Performance Restriction.

     13.3.3. Injunctive Relief and Specific Performance. The enforcement of a
          determination by an arbitrator that prohibits the Band from taking any
          action that would prevent Manager from performing its obligations
          pursuant to the terms of this Agreement or any other Transaction
          Document, or that requires the Band to specifically perform any
          obligation under this Agreement; provided, however, that any
          injunction against the Band shall be Limited Recourse; shall be
          subject to the Specific Performance Restriction; shall not mandate,
          preclude or affect payment of any funds of the Band other than
          undistributed or future Net Revenues of the Enterprise or funds in the
          Dominion Account or Subsequent Gaming Facility Revenues; and shall not
          relate to any asset of the Band other than the Enterprise.

     13.3.4. Action to Compel Arbitration. An action to compel arbitration
          pursuant to this Article 13.

13.4. Damages on Termination for Failure to Obtain NIGC Approval. In the event
     of termination of this Agreement under Section 12.2 because NIGC Approval
     has not been obtained on or before August 26, 2007, the Band shall be
     responsible for damages as provided in Section 14.4 of the Development
     Agreement but shall not be liable for additional damages under this
     Agreement.

13.5. Liquidated Damages and Limitations on Remedies. The following liquidated
     damages and limitations on remedies apply under this Agreement, in addition
     to those provided elsewhere in this Agreement as to claims and remedies
     against the Band:

     13.5.1. Liquidated Damages Payable by Manager. In the event of a Manager
          Event of Default prior to the Commencement Date, after such notice and
          right to cure as may be provided in this Agreement, Manager shall pay
          liquidated damages as provided in Section 14.5(a) of the Development
          Agreement and shall not be liable for additional damages under this
          Agreement.

     13.5.2. Liquidated Damages Payable by the Band. In the event of a Band
          Event of Default prior to the Commencement Date, after such notice and
          right to


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<PAGE>

          cure as may be provided in this Agreement and except as provided in
          Section 13.14 as to Governmental Actions, the Band shall pay
          liquidated damages as provided in Section 14.5(b) of the Development
          Agreement and shall not be liable for additional damages under this
          Agreement.

13.6. Manager Continuing Obligations. Nothing in this Article shall affect or
     impair Manager's and Lakes' continuing obligations under Sections 9.3
     (non-competition) and 18.15 (confidentiality) of this Agreement, all of
     which shall remain enforceable for the following terms, notwithstanding the
     termination of the Agreements and payment of liquidated or other damages:
     (a) as to Section 9.3, the greater of five years after execution of the
     Agreements or one year after termination; and (b) as to Section 18.15, the
     greater of five years after execution of the Agreements or two years after
     termination.

13.7. Termination of Exclusivity. Section 9.1 (Exclusivity in Michigan) of this
     Agreement shall terminate upon any termination of the Agreements,
     notwithstanding any breach of the Agreements by the Band.

13.8. Remedies. In consideration of the agreement to liquidated damages to the
     extent provided above, the Band, Lakes and Manager each waive the right to
     actual, consequential, exemplary or punitive damages to the extent that
     liquidated damages are applicable to a default, but shall retain the right
     to injunctive relief (a) prior to termination of the Agreements, to enforce
     rights and remedies thereunder, subject to the Limited Recourse provisions
     of this Agreement as to the Band and the Band's limited waiver of sovereign
     immunity; and (b) after termination, to the extent that provisions of this
     Agreement specifically survive such termination, subject to such Limited
     Recourse provisions and limited waiver. The injured party shall, where
     liquidated damages are not applicable and damages or remedies are not
     otherwise specified, be entitled to such damages as it may be entitled to
     under applicable law, subject to such Limited Recourse provisions and
     limited waiver of the Band's sovereign immunity (which shall apply to all
     claims against the Band under or relating to the Agreements, in addition to
     all Loans).

13.9. Band Injunctive Relief. Manager, Lakes and Band acknowledge and agree that
     termination of this Agreement and payment of damages may not be a
     sufficient or appropriate remedy for breach by the Manager or Lakes, and
     further agree that the Band shall, upon breach of this Agreement by the
     Manager or Lakes, have the right to pursue such remedies (in addition to
     termination) at law or equity as it determines are best able to compensate
     it for such breach, including specifically actions to require payment of
     the Minimum Guaranteed Monthly payment and the Monthly Distribution
     Payment, and on the Guaranty. The Manager and Lakes each specifically
     acknowledge and agree that there will be irreparable harm to the Band and
     that damages will be difficult to determine if a Manager Event of Default
     occurs, and the Manager therefore further acknowledges that an injunction
     and/or other equitable relief will be an appropriate remedy for any such
     breach.

13.10. No Setoff Against Payments to Band. The Band's right to payment of the
     Minimum Guaranteed Monthly Payments until termination shall be absolute and
     not subject to setoff or recoupment by Manager or Lakes. The Band's right
     to payment of the Monthly


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<PAGE>

     Distribution Payments until termination shall be absolute and not subject
     to setoff or recoupment by Manager or Lakes, except as specifically
     provided in this Agreement, the Development Agreement, or the Dominion
     Agreement.

13.11. Indemnification on Termination. In the event of termination, (a) Manager
     shall indemnify and hold the Band harmless against all loss, liability,
     damage and expense from or arising out of any acts or omissions of Manager
     prior to termination in violation of, or beyond the scope of its authority
     under, this Agreement; and (b) the Band shall indemnify and hold Manager
     harmless against all loss, liability, damage and expense from or arising
     out of any acts of Manager prior to termination pursuant to and in
     accordance with the terms of this Agreement. This covenant shall survive
     any termination.

13.12. Fees not Damages. In no event shall fees or other non-refundable payments
     made by Manager or Lakes to Band, or Tribal Distributions, constitute
     damages to Manager or Lakes or be repayable by the Band.

13.13. Undistributed Net Revenues. If on termination the Enterprise has accrued
     Net Revenues which have not been distributed under Section 5 of this
     Agreement, Manager shall receive that Management Fee equal to the
     Management Fee it would have received for the period prior to termination
     had the distribution occurred during the term of the Management Agreement,
     subject to the Band's right of setoff and recoupment.

13.14. Damages for Governmental Action. If the Band takes a Governmental Action
     or fails to take a Governmental Action, and such action or inaction is not
     caused by a breach of Manager or Lakes' obligations under the Agreements or
     the Guaranty and constitutes a breach of this Agreement by the Band or the
     impairment of rights of Manager under this Agreement, the Band shall be
     liable for any resulting actual and consequential damages incurred by
     Manager (subject to the Limited Recourse provisions of this Agreement and
     the limited waiver of the Band's sovereign immunity).

14.  CONSENTS AND APPROVALS

14.1. Band. Where approval or consent or other action of the Band is required,
     such approval shall mean the written approval of the Pokagon Council
     evidenced by a resolution thereof, certified by a Band official as having
     been duly adopted, or such other person or entity designated by resolution
     of the Pokagon Council. Any such approval, consent or action shall not be
     unreasonably withheld or delayed; provided that the foregoing does not
     apply where a specific provision of this Agreement allows the Band an
     absolute or unilateral right to deny approval or consent or withhold
     action.

14.2. Manager. Where approval or consent or other action of Manager is required,
     such approval shall mean the written approval of the Managing Officer. Any
     such approval, consent or other action shall not be unreasonably withheld
     or delayed.

14.3. Business Board. Where approval or consent or other action of the Business
     Board is required, any such approval, consent or other action shall not be
     unreasonably delayed.


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<PAGE>

15.  DISCLOSURES

15.1. Shareholders and Directors. On the date of this Agreement Manager and
     Lakes shall each provide a written certification to the Band providing a
     true and correct certification of their respective Affiliates, directors,
     officers and shareholders owning five percent (5%) or more of the stock or
     equity interests of each of them. (the "Lakes Certification").

15.2. Warranties. Manager and Lakes further warrant and represent as follows:

     15.2.1. No officer, director or individual owner of five percent (5%) or
          more of the stock or equity interests of Manager or Lakes, or any
          Affiliate of Manager or Lakes, has been arrested, indicted for,
          convicted of, or pleaded nolo contendere to any felony or any gaming
          offense, or had any association with individuals or entities known to
          be connected with organized crime, except, as to Lyle Berman, an
          arrest prior to 1980 for a gaming offense that did not result in a
          conviction; and

     15.2.2. No person or entity listed on the Lakes Certification, including
          any officers and directors of Manager and Lakes, has been arrested,
          indicted for, convicted of, or pleaded nolo contendere to any felony
          or any gaming offense, or had any association with individuals or
          entities known to be connected with organized crime, except, as to
          Lyle Berman, an arrest prior to 1980 for a gaming offense that did not
          result in a conviction.

     15.2.3. Manager agrees that all of its and Lakes' directors and officers
          and any individual owners of five percent (5%) or more of the stock or
          equity interests of Manager or Lakes (whether or not involved in the
          Enterprise), shall:

          15.2.3.1. consent to background investigations to be conducted by the
               Band, the State, the Federal Bureau of Investigation (the "FBI")
               or any law enforcement authority to the extent required by the
               IGRA and the Compact;

          15.2.3.2. be subject to licensing requirements in accordance with Band
               law and this Agreement;

          15.2.3.3. consent to a background, criminal and credit investigation
               to be conducted by or for the NIGC, if required;

          15.2.3.4. consent to a financial and credit investigation to be
               conducted by a credit reporting or investigation agency at the
               request of the Band;

          15.2.3.5. cooperate fully with such investigations; and

          15.2.3.6. disclose any information requested by the Band which would
               facilitate the background and financial investigation.


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<PAGE>

               Any materially false or deceptive disclosures or failure to
          cooperate fully with such investigations by an employee of Manager or
          Lakes or an employee of the Band shall result in the immediate
          dismissal of such employee. The results of any such investigation may
          be disclosed by the Band to federal officials and to such other
          regulatory authorities as required by law.

15.3. Disclosure Amendments. Manager and Lakes each agree that whenever there is
     any material change in the information disclosed pursuant to this Article
     15 it shall notify the Band of such change not later than thirty (30) days
     following the change or within ten days after it becomes aware of such
     change, whichever is later. The Band shall, in turn, provide the Secretary
     of the Interior and/or the NIGC (whichever is applicable) copies of any
     such notifications. All of the warranties and agreements contained in this
     Article 15 shall apply to any person or entity who would be listed in this
     Article 15 as a result of such changes. Nothing in this Section or in this
     Agreement shall (a) limit Manager's obligation to comply with NIGC
     regulations, including without limitation 25 C.F.R. Section 537.2, or (b)
     constitute an assumption by the Band of any obligation to furnish
     information to the NIGC on Manager's behalf or otherwise fulfill any
     obligation of Manager under such regulations.

15.4. Breach of Manager's Warranties and Agreements. The material breach of any
     warranty or agreement of Manager or Lakes contained in this Article 15
     shall be grounds for immediate termination of this Agreement; provided that
     (a) if a breach of the warranties contained in Sections 15.2.2 or 15.2.3 is
     discovered, and such breach was not disclosed by any background check
     conducted by the FBI as part of the BIA or other federal approval of this
     Agreement, or was discovered by the FBI investigation but all officers and
     directors of Manager and Lakes sign sworn affidavits that they had no
     knowledge of such breach, then Manager and Lakes shall have thirty (30)
     days after notice from the Band to terminate the interest of the offending
     person or entity and if such termination takes place, this Agreement shall
     remain in full force and effect; and (b) if a breach relates to a failure
     to update changes in ownership interests, financial position or additional
     gaming related activities, then Manager and Lakes shall have thirty (30)
     days after notice from the Band to cure such default prior to termination.

16.  NO PRESENT LIEN, LEASE OR JOINT VENTURE

     The parties agree and expressly warrant that neither the Management
Agreement nor any exhibit thereto is a mortgage or lease and, consequently, does
not convey any present interest whatsoever in the Facility or the Gaming Site,
nor any proprietary interest in the Enterprise itself; except, with regard to
the Dominion Account, the security interest created by the Dominion Agreement
and, with regard to the Furnishings and Equipment, the security interest created
by the Lakes Security Agreement. The parties further agree and acknowledge that
it is not their intent, and that this Agreement shall not be construed, to
create a joint venture between the Band and Manager; rather, Manager shall be
deemed to be an independent contractor for all purposes hereunder.

17.  CONCLUSION OF THE MANAGEMENT TERM


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<PAGE>

     Upon the conclusion or the termination of this Agreement, Manager shall
take reasonable steps for the orderly transition of management of the Enterprise
to the Band or its designee pursuant to a transition plan; such transition
period shall be for a reasonable period but not less than sixty days. Manager
shall cooperate fully with the Band in that regard. No later than four months
before the expiration of the Term of this Agreement, Manager shall submit to the
Business Board and the Band a transition plan which shall be sufficient to allow
the Band to operate the Enterprise and provide for the orderly transition of the
management of the Enterprise.

18.  MISCELLANEOUS

18.1. Situs of the Contracts. This Agreement, as well as all contracts entered
     into between the Band and any person or any entity providing services to
     the Enterprise, shall be deemed entered into in Michigan, and shall be
     subject to all Legal Requirements of the Band and federal law as well as
     approval by the Chairman of the NIGC where required by the IGRA.

18.2. Notice. Any notice required to be given pursuant to this Agreement shall
     be delivered to the appropriate party by Certified Mail Return Receipt
     Requested, or by overnight mail or courier service to the following
     addresses:

          If to the Band:

          Pokagon Band of Potawatomi Indians
          58620 Sink Road
          Dowagiac, MI 49047
          Attn: Chairman, Tribal Council

          with a copy to:

          Michael Phelan, General Counsel
          Pokagon Band of Potawatomi Indians
          P.O. Box 180
          Dowagiac, MI 49047

          and

          Daniel Amory, Esq.
          Drummond Woodsum & MacMahon
          P.O. Box 9781
          Portland, ME 04104-5081

          If to Manager or Lakes:

          Great Lakes Gaming of Michigan, LLC
          Lakes Entertainment, Inc.
          130 Cheshire Lane


                                       57

<PAGE>

          Minnetonka, MN 55305

          with a copy to:

          Kevin Quigley, Esq.
          Hamilton Quigley Twait & Foley, PLC
          First National Bank Building
          Suite W1450
          332 Minnesota Street
          Saint Paul, MN 55101-1314

          and to:

          Neil Sell, Esq.
          Maslon Edelman Borman & Brand, LLP
          3300 Wells Fargo Center
          90 South Seventh Street
          Minneapolis, MN 55402

     or to such other different address(es) as Manager or the Band may specify
     in writing. Any such notice shall be deemed given three days following
     deposit in the United States mail, one day following delivery to a courier
     service or upon actual delivery, whichever first occurs.

18.3. Relationship. Manager, Lakes and the Band shall not be construed as joint
     venturers or partners of each other by reason of this Agreement and neither
     shall have the power to bind or obligate the other except as set forth in
     this Agreement.

18.4. Further Actions. The Band, Lakes and Manager agree to execute or cause to
     be executed all contracts, agreements and documents and to take all actions
     reasonably necessary to comply with the provisions of this Agreement and
     the intent hereof.

18.5. Waivers. No failure or delay by Manager or the Band to insist upon the
     strict performance of any covenant, agreement, term or condition of this
     Agreement, or to exercise any right or remedy consequent upon the breach
     thereof, shall constitute a waiver of any such breach or any subsequent
     breach of such covenant, agreement, term or condition. No covenant,
     agreement, term, or condition of this Agreement and no breach thereof shall
     be waived, altered or modified except by written instrument. No wavier of
     any breach shall affect or alter this Agreement, but each and every
     covenant, agreement, term and condition of this Agreement shall continue in
     full force and effect with respect to any other then existing or subsequent
     breach thereof.

18.6. Captions. The captions for each section and subsection are intended for
     convenience only.

18.7. Severability. If any provision, or any portion of any provision, of this
     Agreement is found to be invalid or unenforceable, such unenforceable
     provision, or unenforceable


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<PAGE>

     portion of such provision, shall be deemed severed from the remainder of
     this Agreement and shall not cause the invalidity or unenforceability of
     the remainder of this Agreement. If any provision, or any portion of any
     provision, of this Agreement is deemed invalid due to its scope or breadth,
     such provision shall be deemed valid to the extent of the scope or breadth
     permitted by law.

18.8. Advances. Except as provided in Section 5.6.2 with regard to Minimum
     Guaranteed Payment Advances or as otherwise provided in the Agreements, any
     amounts advanced by Manager or the Band related to the operation of the
     Enterprise shall accrue interest at the Band Interest Rate and shall be
     treated according to GAAP.

18.9. Third Party Beneficiary. This Agreement is exclusively for the benefit of
     the parties hereto and it may not be enforced by any party other than the
     parties to this Agreement and shall not give rise to liability to any third
     party other than the authorized successors and assigns of the parties
     hereto as such are authorized by this Agreement.

18.10. Survival of Covenants. Any covenant, term or provision of this Agreement
     which, in order to be effective, must survive the termination of this
     Agreement, shall survive any such termination.

18.11. Estoppel Certificate. Manager and the Band agree to furnish to the other
     party, from time to time upon request, an estoppel certificate in such
     reasonable form as the requesting party may request stating whether there
     have been any defaults under this Agreement known to the party furnishing
     the estoppel certificate and such other information relating to the
     Enterprise as may be reasonably requested.

18.12. Periods of Time; Time of Essence. Whenever any determination is to be
     made or action is to be taken on a date specified in this Agreement, if
     such date shall fall on a Saturday, Sunday or legal holiday under the laws
     of the Band or the State of Michigan, then in such event said date shall be
     extended to the next day which is not a Saturday, Sunday or legal holiday.
     Time is of the essence.

18.13. Exhibits. All exhibits attached hereto are incorporated herein by
     reference and made a part hereof as if fully rewritten or reproduced
     herein.

18.14. Successors and Assigns. The benefits and obligations of this Agreement
     shall inure to and be binding upon the parties hereto and their respective
     permitted successors and assigns.

18.15. Confidential and Proprietary Information. The Band, Lakes and Manager
     each agree that any information received concerning the other party during
     the performance of this Agreement, regarding the parties' organization,
     financial matters, marketing and development plans for the Enterprise, the
     Gaming Site, or other information of a proprietary nature (the
     "Confidential Information") will be treated by all parties in full
     confidence and except as required to allow Manager, Lakes and the Band to
     perform their respective covenants and obligations hereunder, or in
     response to legal process, and will not be revealed to any other persons,
     firms or organizations. This provision shall survive


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<PAGE>

     the termination of this Agreement as provided in Section 13.6. The
     obligations not to use or disclose the Confidential Information shall not
     apply to Confidential Information (a) which has been made previously
     available to the public by the Band, Lakes or Manager or becomes generally
     available to the public, unless the Confidential Information being made
     available to the public results in a breach of this Agreement; (b) which
     prior to disclosure to the Band, Lakes or Manager was already rightfully in
     any such persons' possession; (c) which is obtained by the Band, Lakes or
     Manager from a third party who is lawfully in possession of such
     Information, and not in violation of any contractual, legal or fiduciary
     obligation to the Band, Lakes or Manager, with respect to such Confidential
     Information and who does not require the Band, Lakes or Manager to refrain
     from disclosing such Confidential Information to others; or (d) by the
     Band, if such Confidential Information pertains to the Gaming Site or the
     Enterprise, in connection with the Band's development, construction and
     operation of a gaming facility after termination of the Agreements.

18.16. Patron Dispute Resolution. Manager shall submit all patron disputes
     concerning play to the Gaming Regulatory Authority pursuant to the Band
     Gaming Ordinance, and the regulations promulgated thereunder.

18.17. Modification. Any change to or modification of this Agreement must be in
     writing signed by both parties hereto and shall be effective only upon
     approval by the Chairman of the NIGC, the date of signature of the parties
     notwithstanding.

18.18. Entire Agreement.

     18.18.1. This Agreement is the entire agreement between Manager and the
          Band relating to management of the Enterprise and supersedes all prior
          management agreements and understandings, whether written or oral,
          between or among the Band, Lakes and Manager;

     18.18.2. Collateral agreements between or among the Band, Lakes and Manager
          consist of the following documents, which are not part of this
          Management Agreement:

          a.   Second Amended and Restated Development Agreement of near or even
               date;

          b.   Second Amended and Restated Lakes Development Note dated as of
               December 22, 2004;

          c.   Second Amended and Restated Transition Loan Note dated as of
               December 22, 2004;

          d.   Second Amended and Restated Non-Gaming Land Acquisition Line of
               Credit dated as of December 22, 2004;


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<PAGE>

          e.   Account Control Agreement, as amended by Amendment dated as of
               October 16, 2000 and by Second Amendment dated as of December 22,
               2004;

          f.   Pledge and Security Agreement, as amended by Amendment dated as
               of October 16, 2000 and by Second Amendment dated as of December
               22, 2004;

          g.   Assumption Agreement, as amended by First Amended Assignment and
               Assumption Agreement dated as of December 22, 2004;

          h.   Unlimited Guaranty, as amended by First Amended Unlimited
               Guaranty dated as of December 22, 2004;

          i.   Lakes Facility Note dated as of December 22, 2004;

          j.   Lakes Working Capital Advance Note dated as of December 22, 2004;

          k.   Lakes Minimum Payments Note dated as of December 22, 2004;

          l.   Security Agreement dated as of December 22, 2004;

          m.   Form of Dominion Account Agreement;

          n.   Indemnity Agreement from the Band to Great Lakes (as assignee of
               Lakes) dated as of March 9, 2000, as amended by First Amended and
               Restated Indemnity Agreement dated February 28, 2001 and Second
               Amended and Restated Indemnity Agreement dated December 22, 2004;

          o.   Reaffirmation of Guarantees and Mortgages dated as of December
               22, 2004, together with the Band Designee Guarantees and the Band
               Designee Mortgages referenced therein;

          All such collateral agreements supersede all other prior collateral
     agreements and understandings, written or oral between the parties. Lakes,
     Great Lakes and the Band each affirmatively represents that no promises
     have been made to that party which are not contained in this Agreement, the
     Development Agreement or any other Transaction Documents, and stipulates
     that no evidence of any promises not contained in this Agreement, the
     Development Agreement, or any other Transaction Documents shall be admitted
     into evidence on their behalf. This Agreement shall not be supplemented,
     amended or modified by any course of dealing, course of performance or uses
     of trade and may only be amended or modified by a written instrument duly
     executed by officers of all parties.

18.19. Government Savings Clause. The Band, Lakes and Manager each agree to
execute, deliver and, if necessary, record any and all additional instruments,
certifications,


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<PAGE>

     amendments, modifications and other documents as may be required by the
     United States Department of the Interior, Bureau of Indian Affairs, the
     office of the field Solicitor, the NIGC, or any applicable statute, rule or
     regulation in order to effectuate, complete, perfect, continue or preserve
     the respective rights, obligations, liens and interests of the parties
     hereto to the fullest extent permitted by law; provided, that any such
     additional instrument, certification, amendment, modification or other
     document shall not materially change the respective rights, remedies or
     obligations of the Band, Lakes or Manager under this Agreement, the
     Guaranty, or any other agreement or document related hereto.

18.20. Preparation of Agreement. This Agreement was drafted and entered into
     after careful review and upon the advice of competent counsel; it shall not
     be construed more strongly for or against either party.

18.21. Consents. Except where expressly indicated that an agreement or consent
     is in the sole or unilateral discretion of a party, no agreement or consent
     under this Agreement shall be unreasonably withheld or delayed.

18.22. Execution. This Agreement may be executed in four counterparts, two to be
     retained by each party. Each of the four originals is equally valid. This
     Agreement shall be binding upon both parties when properly executed and
     approved by the Chairman of the NIGC (the "Effective Date").

18.23. Limited Joinder.

     18.23.1. Lakes Entertainment, Inc. and Lakes Gaming and Resorts, LLC each
          join in this Agreement for the limited purpose of agreeing to be bound
          by the provisions of this Agreement specifically applicable to them,
          as well as the provisions of Articles 13 and 18 (as they pertain to
          such provisions of continuing applicability to them). In addition,
          Lakes Entertainment, Inc. shall have the benefit of any rights and
          remedies it had prior to the execution of the Assignment and
          Assumption Agreement as of October 16, 2000 under the following
          sections of this Agreement: 9.2, 10.2, 11.3, 12.5, 13.8 (as to
          remedies for claims for breach of its retained rights under this
          subsection), 13.11(b) (limited to claims relating to the period before
          such date of the Assignment and Assumption Agreement), 18.2, 18.3,
          18.5, 18.7, 18.9, 18.10, 18.12, 18.14, 18.15, 18.17, 18.18, 18.19,
          18.20, 18.21 and 18.22.

     18.23.2. Sections 10(a) and 10(d) of the Assignment and Assumption
          Agreement are superseded by this Agreement and the Development
          Agreement and are no longer in effect.

               [The rest of this page is intentionally left blank.
                      The next page is the signature page.]


                                       62

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

The Pokagon Band of Potawatomi          Great Lakes Gaming of Michigan LLC
Indians


By: /s/ John Miller                     By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Its: Council Chairman                   Its: President
                                             -----------------------------------


By: /s/ Dan Rapp                        Lakes Entertainment, Inc., f/k/a Lakes
    ---------------------------------   Its Gaming, Inc.
Its: Secretary

                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Its: President
                                             -----------------------------------


                                        Lakes Gaming and Resorts, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Its: President
                                             -----------------------------------


                                        APPROVED PURSUANT TO 25 U.S.C.
                                        SECTION 2711

                                        NATIONAL INDIAN GAMING COMMISSION


                                        By
                                           -------------------------------------

                                        Print Name:
                                                    ----------------------------
                                        Its: Chairperson


                                       63

<PAGE>

                                    EXHIBIT A
                                   GAMING SITE

THAT PART OF SECTION 14, THE SOUTHEAST QUARTER OF SECTION 11, THE WEST HALF OF
SECTION 13 AND THE SOUTHEAST QUARTER OF SECTION 15, TOWNSHIP 8 SOUTH, RANGE 21
WEST, NEW BUFFALO TOWNSHIP, BERRIEN COUNTY, MICHIGAN, DESCRIBED AS: BEGINNING AT
THE SOUTH QUARTER CORNER OF SAID SECTION 14; THENCE WEST ON THE SOUTH LINE OF
SAID SECTION 14 A DISTANCE OF 1997.12 FEET; THENCE NORTH 00 degrees 01' 30" EAST
ON THE EAST LINE EXTENDED OF "ASSESSOR'S PLAT OF PLUTA ACRES", BEING A
SUBDIVISION IN THE SOUTHWEST QUARTER OF SAID SECTION 14 A DISTANCE OF 40.00 FEET
TO THE SOUTHEAST CORNER OF SAID SUBDIVISION; THENCE WEST (PLATTED NORTH 89
degrees 54' 20" WEST) ON THE SOUTH LINE OF SAID SUBDIVISION AND PARALLEL WITH
SAID SOUTH SECTION LINE 632.62 FEET (PLATTED 632.51 FEET) TO THE SOUTHWEST
CORNER OF SAID SUBDIVISION; THENCE NORTH 00 degrees 04' 15" WEST (PLATTED NORTH
00 degrees 01' 40" EAST) ON THE WEST LINE OF SAID SUBDIVISION AND PARALLEL WITH
THE LINE COMMON TO SAID SECTIONS 14 AND 15 A DISTANCE OF 620.00 FEET TO THE
NORTHWEST CORNER OF SAID SUBDIVISION; THENCE WEST ON THE NORTH LINE EXTENDED OF
SAID SUBDIVISION 33.00 FEET TO THE LINE COMMON TO SAID SECTIONS 14 AND 15;
THENCE SOUTH 00 degrees 04' 15" EAST ON SAID COMMON SECTION LINE 59.49 FEET;
THENCE NORTH 89 degrees 46' 01" WEST PARALLEL WITH THE SOUTH LINE OF THE
NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 15 A DISTANCE OF
488.78 FEET TO THE EASTERLY RIGHT OF WAY LINE OF INTERSTATE 94 RAMP "D"; THENCE
NORTHWESTERLY 65.22 FEET ON A 2789.79 FOOT RADIUS CURVE TO THE RIGHT WHOSE CHORD
BEARS NORTH 24 degrees 09' 32" WEST 65.22 FEET; THENCE NORTH 23 degrees 29' 22"
WEST 222.46 FEET; THENCE NORTHERLY 152.93 FEET ON A 155.00 FOOT RADIUS CURVE TO
THE RIGHT WHOSE CHORD BEARS NORTH 04 degrees 46' 33" EAST 146.80 FEET; THENCE
NORTH 33 degrees 02' 28" EAST 201.91 FEET; THENCE NORTHERLY 423.07 FEET ON A
505.00 FOOT RADIUS CURVE TO THE LEFT WHOSE CHORD BEARS NORTH 09 degrees 02' 28"
EAST 410.81 FEET; THENCE NORTH 14 degrees 57' 32" WEST 180.69 FEET; THENCE
NORTHEASTERLY 466.00 FEET ON A 445.00 FOOT RADIUS CURVE TO THE RIGHT WHOSE CHORD
BEARS NORTH 15 degrees 02' 28" EAST 445.00 FEET; THENCE NORTH 45 degrees 02' 28"
EAST 201.89 FEET ALL ON SAID EASTERLY RIGHT OF WAY LINE OF INTERSTATE 94 RAMP
"D"; THENCE NORTH 42 degrees 09' 28" EAST ON THE EASTERLY RIGHT OF WAY LINE OF
INTERSTATE 94 A DISTANCE OF 426.11 FEET TO THE EAST AND WEST QUARTER LINE OF
SAID SECTION 14; THENCE NORTH 89 degrees 47' 21" EAST ON SAID EAST AND WEST
QUARTER LINE AND ON SAID EASTERLY RIGHT OF


                                       64

<PAGE>

WAY LINE 131.67 FEET; THENCE NORTHEASTERLY 1721.44 FEET ON A 11662.20 FOOT
RADIUS CURVE TO THE LEFT WHOSE CHORD BEARS NORTH 42 degrees 45' 47" EAST 1719.87
FEET; THENCE NORTH 40 degrees 12' 25" EAST 529.13 FEET; THENCE SOUTH 84 degrees
48' 44" EAST 258.15 FEET; THENCE NORTH 34 degrees 34' 39" EAST 302.96 FEET;
THENCE NORTH 85 degrees 51' 09" EAST 172.54 FEET; THENCE NORTH 32 degrees 07'
05" EAST 883.38 FEET ALL ON SAID EASTERLY RIGHT OF WAY LINE OF INTERSTATE 94 TO
THE LINE COMMON TO SECTIONS 11 AND 14; THENCE NORTH 89 degrees 39' 40" EAST ON
SAID COMMON SECTION LINE 1200.02 FEET TO THE WEST LINE OF THE EAST HALF OF THE
SOUTHEAST QUARTER OF SAID SECTION 11; THENCE NORTH 00 degrees 16' 16" EAST ON
SAID WEST LINE 870.83 FEET TO THE CENTERLINE OF MAUDLIN ROAD; THENCE SOUTH 59
degrees 44' 03" EAST ON SAID CENTERLINE 250.96 FEET; THENCE SOUTH 00 degrees 16'
16" WEST PARALLEL WITH SAID WEST LINE 743.06 FEET TO THE LINE COMMON TO SAID
SECTIONS 11 AND 14; THENCE NORTH 89 degrees 39' 40" EAST ON SAID COMMON SECTION
LINE 1105.81 FEET TO THE CORNER COMMON TO SECTIONS 11, 12, 13 AND 14; THENCE
SOUTH 89 degrees 58' 52" EAST ON THE NORTH LINE OF SAID SECTION 13 A DISTANCE OF
1321.09 FEET TO THE EAST LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SAID
SECTION 13; THENCE SOUTH 00 degrees 01' 03" EAST ON SAID EAST LINE 2640.34 FEET
TO THE EAST AND WEST QUARTER LINE OF SAID SECTION 13; THENCE SOUTH 00 degrees
05' 34" EAST ON THE EAST LINE OF THE WEST HALF OF THE SOUTHWEST QUARTER OF SAID
SECTION 13 A DISTANCE OF 2649.26 FEET TO THE SOUTH LINE OF SAID SECTION 13;
THENCE SOUTH 89 degrees 33' 42" WEST ON SAID SOUTH SECTION LINE 1309.49 FEET TO
THE CORNER COMMON TO SECTIONS 13, 14, 23 AND 24; THENCE NORTH 00 degrees 11' 33"
WEST ON THE LINE COMMON TO SAID SECTIONS 13 AND 14 A DISTANCE OF 2650.01 FEET TO
THE QUARTER CORNER COMMON TO SAID SECTIONS 13 AND 14; THENCE SOUTH 89 degrees
47' 52" WEST ON THE EAST AND WEST QUARTER LINE OF SAID SECTION 14 A DISTANCE OF
664.34 FEET TO THE WEST LINE OF THE EAST HALF OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF SAID SECTION 14; THENCE SOUTH 00 degrees 07' 52" EAST ON SAID WEST
LINE 1637.07 FEET TO THE SOUTH LINE OF THE NORTH 25 ACRES OF THE WEST HALF OF
THE EAST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 89
degrees 47' 52" WEST ON SAID SOUTH LINE 666.09 FEET TO THE EAST LINE OF THE WEST
HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 00 degrees 04'
12" EAST ON SAID EAST LINE 1017.75 FEET TO THE SOUTH LINE OF SAID SECTION 14;
THENCE SOUTH 89 degrees 35' 30" WEST ON SAID SOUTH SECTION LINE 667.18 FEET TO
THE WEST LINE OF THE EAST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID
SECTION 14; THENCE NORTH 00 degrees 00' 32" WEST ON SAID WEST LINE 885.75 FEET
TO THE SOUTH LINE OF THE NORTH TWO THIRDS OF THE EAST HALF OF THE WEST HALF OF
THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 89
degrees 39' 35" WEST ON SAID


                                       65

<PAGE>

SOUTH LINE 333.12 FEET TO THE WEST LINE OF THE EAST HALF OF THE WEST HALF OF THE
WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 00 degrees
01' 18" WEST ON SAID WEST LINE 886.15 FEET TO THE SOUTH LINE OF SAID SECTION 14;
THENCE SOUTH 89 degrees 35' 30" WEST ON SAID SOUTH SECTION LINE 333.59 FEET TO
THE POINT OF BEGINNING. CONTAINING 673.18 ACRES MORE OR LESS.

SUBJECT TO THE RIGHTS OF THE PUBLIC AND OF ANY GOVERNMENTAL UNIT IN ANY PART
THEREOF TAKEN, USED, OR DEEDED FOR STREET, ROAD, OR HIGHWAY PURPOSES.

THIS SURVEY WAS PERFORMED WITH AN ERROR OF CLOSURE NO GREATER THAN 1 IN 15000.

THIS SURVEY COMPLIES WITH THE REQUIREMENTS OF SECTION 3, P.A. 132 OF 1970, AS
AMENDED, EXCEPT FOR PAPER SIZE.

ASSUMED THE LINE BETWEEN THE SOUTH QUARTER CORNER AND THE SOUTHEAST CORNER OF
SAID SECTION 14 TO BEAR WEST.


                                       66

<PAGE>

                                    EXHIBIT B
                             PENDING BAND LITIGATION

Taxpayers of Michigan Against Casinos et al. v. State of Michigan. The Michigan
Supreme Court has ruled against plaintiff TOMAC's challenges to the validity of
the Compact. 471 Mich. 306, 685 N.W.2d221 (2004). TOMAC has petitioned the U.S.
Supreme Court for a writ of certiorari. Also, on remand from the Michigan
Supreme Court, in Michigan Court of Appeals Case No. 225017, TOMAC challenges
the validity of the Compact under the appropriation and separation of powers
provisions of the Michigan Constitution. The Band is not a party to these
actions, but may choose to intervene.

TOMAC v. Norton et al., U.S.D.C.D.C., Case No. 1:01CV00398-JR. The plaintiff in
that action challenges the decision of the Department of Interior to take the
Gaming Site into trust. The Band is not a party to that action, but may choose
to intervene.

Pokagon Properties, LLC v Leonard A. Kolberg, Jr.,Case No. 02-49-765-CK-B,
Circuit Court for the County of Van Buren. Claim for non-payment of rent from
crop lease. Amount of claim: approximately $36,000.00. Defendant has filed a
counterclaim seeking damages in the amount of $118,000.00. The parties have
entered into a settlement agreement which includes the Band receiving $9,000 and
a dismissal of all claims.

Pokagon Properties, LLC v Dean Anderson, Case No. 71C010205CC00602, Circuit
Court for the County of St. Joseph. Claim for non-payment of rent from crop
lease. Amount of claim: approximately $52,000.00. Defendant has filed a
counterclaim in the approximate amount of $63,000.00.


                                       67

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.70
<SEQUENCE>5
<FILENAME>c92713exv10w70.txt
<DESCRIPTION>SECOND AMENDED/RESTATED DEVELOPMENT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.70

                                                               EXECUTION VERSION

                           SECOND AMENDED AND RESTATED

                              DEVELOPMENT AGREEMENT

                                   BETWEEN THE

                       POKAGON BAND OF POTAWATOMI INDIANS

                                       AND

                      GREAT LAKES GAMING OF MICHIGAN, LLC,
                      (f/k/a GREAT LAKES OF MICHIGAN, LLC)

                          DATED AS OF DECEMBER 22, 2004

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>             <C>                                                                         <C>
RECITALS ..............................................................................     1
ARTICLE 1 DEFINITIONS AND OBJECTIVES ..................................................     3
Section 1.1     Definitions ...........................................................     3
                Account ...............................................................     3
                Accrued Expenses ......................................................     3
                Agreement .............................................................     3
                Agreements ............................................................     3
                Approved Construction Costs ...........................................     3
                Approved Development Budget ...........................................     3
                Architect .............................................................     3
                Assignment and Assumption Agreement ...................................     3
                Band Designee .........................................................     3
                Band Designee Guarantee ...............................................     3
                Band Designee Mortgage ................................................     3
                Band Event of Default .................................................     3
                Band Interest Rate ....................................................     4
                Band Mortgage .........................................................     4
                Band Security Agreement ...............................................     4
                Band Working Capital Advances .........................................     4
                Bank Closing ..........................................................     4
                Bank Lender ...........................................................     4
                Bank Loan .............................................................     4
                Bank Loan Agreement ...................................................     4
                Bank Note .............................................................     5
                BIA ...................................................................     5
                Business Board ........................................................     5
                Change of Control .....................................................     5
                Class II Gaming .......................................................     5
                Class III Gaming ......................................................     5
                Commencement Date .....................................................     5
                Compact ...............................................................     5
                Completion Date .......................................................     5
                Constitution ..........................................................     6
                Construction Costs ....................................................     6
                Construction Documents ................................................     6
                Construction Guaranty Payments ........................................     6
                Control Agreement .....................................................     6
                Corporate Commission ..................................................     6
                CRC ...................................................................     6
                Design Agreement ......................................................     6
                Design Packages .......................................................     6
                Development Expenditures ..............................................     6
</TABLE>


                                       ii

<PAGE>

<TABLE>
<S>             <C>                                                                        <C>
                Development Soft Costs ................................................     7
                Disbursement Accounts .................................................     7
                Dominion Account ......................................................     7
                Dominion Agreement ....................................................     7
                Economically Feasible .................................................     7
                Enterprise ............................................................     7
                Enterprise Accounts ...................................................     7
                Equipment Lender ......................................................     8
                Equipment Loan Agreement ..............................................     8
                Equipment Loan ........................................................     8
                Equipment Note ........................................................     8
                Facility ..............................................................     8
                Final Scope of Work ...................................................     8
                Firstar ...............................................................     8
                Force Majeure .........................................................     8
                Furnishings and Equipment .............................................     8
                Gaming ................................................................     9
                Gaming Ordinance ......................................................     9
                Gaming Regulatory Authority or GRA ....................................     9
                Gaming Site ...........................................................     9
                Gaming Site Acquisition Advances ......................................     9
                Governmental Action ...................................................     9
                Great Lakes ...........................................................     9
                Guaranty ..............................................................     9
                Guaranty Reserve ......................................................    10
                Initial Phase .........................................................    10
                Initial Scope of Work .................................................    10
                IGRA ..................................................................    10
                Insider ...............................................................    10
                Lakes .................................................................    10
                Lakes Development Loan ................................................    10
                Lakes Development Note ................................................    10
                Lakes Event of Default ................................................    10
                Lakes Facility Loan ...................................................    10
                Lakes Facility Note ...................................................    11
                Lakes' Internal Expenses ..............................................    11
                Lakes Refinancing Guaranty ............................................    11
                Lakes Security Agreement ..............................................    11
                Lakes Working Capital Advance Note ....................................    11
                Lakes Working Capital Advances ........................................    11
                Legal Requirements ....................................................    11
                Limited Recourse ......................................................    11
                Loans .................................................................    12
                Local Agreement .......................................................    12
                Management Agreement ..................................................    12
                Material Adverse Change ...............................................    12
</TABLE>


                                       iii

<PAGE>

<TABLE>
<S>             <C>                                                                        <C>
                Material Breach .......................................................    12
                Memorandum of Understanding ...........................................    12
                Minimum Payment Note ..................................................    12
                Monthly Payments ......................................................    12
                National Indian Gaming Commission .....................................    12
                Net Revenues ..........................................................    13
                NIGC Approval .........................................................    13
                NIGC Disapproval ......................................................    13
                Non-Gaming Land .......................................................    13
                Non-Gaming Land Acquisition Line of Credit ............................    13
                151MM Shortfall .......................................................    13
                Operating Expense .....................................................    13
                Plans and Specifications ..............................................    13
                Pokagon Council .......................................................    13
                Preliminary Development Budget ........................................    13
                Project ...............................................................    13
                Remaining Loan Availability Amount ....................................    14
                Reserve Amount ........................................................    14
                Restoration Act .......................................................    14
                Restricted Territory ..................................................    14
                Road Service Agreement ................................................    14
                Scholarship Program Fee ...............................................    14
                Signing Fee ...........................................................    14
                Specific Performance Restriction ......................................    14
                State .................................................................    14
                Subsequent Gaming Facility Revenues ...................................    14
                Term ..................................................................    14
                Transaction Documents .................................................    14
                Transition Loan .......................................................    14
                Transition Loan Note ..................................................    14
                Tribal Distributions ..................................................    15
                Tribal UCC Code .......................................................    15
Section 1.2     Independent Agreement .................................................    15

ARTICLE 2 ACQUISITION OF GAMING SITE AND NON-GAMING LANDS.                                 15
Section 2.1     Selection of Gaming Site ..............................................    15
Section 2.2     Purchase of Gaming Site; Funding ......................................    15
Section 2.4     Assignment of Other Options ...........................................    15
Section 2.5     Selection of Non-Gaming Lands .........................................    16
Section 2.6     Closing on Non-Gaming Lands; Funding ..................................    16
Section 2.6.1.     Funding Where Non-Gaming Land Acquired by Band Designee ............    16
Section 2.7     Mortgages Prior to Transfer into Trust ................................    17

ARTICLE 3 CONSTRUCTION PHASES .........................................................    17
Section 3.1     Initial Phase .........................................................    17
Section 3.2     Final Scope of Work ...................................................    17
</TABLE>


                                       iv

<PAGE>

<TABLE>
<S>             <C>                                                                        <C>
Section 3.3     Modification of Final Scope of Work ...................................    17
Section 3.4     Bank Loans and Equipment Loans ........................................    17

ARTICLE 4 DESIGN PHASE ................................................................    18
Section 4.1     Employment of Architect ...............................................    18
Section 4.2     Design and Construction Budgets .......................................    18
Section 4.3     Gaming Regulatory Authority Expenses ..................................    19
Section 4.4     Reserved ..............................................................    19
Section 4.5     Concept Design and Engineering ........................................    19
Section 4.6     Preliminary Program Evaluation ........................................    19
Section 4.7     Design Development ....................................................    19
Section 4.8     Plans and Specifications ..............................................    19
Section 4.9     Compliance with Construction Standards, Environmental Laws and
                Regulations ...........................................................    20
Section 4.10    Advance of Funds for Design Work, Long Lead Time Items and
                Preliminary Site Work .................................................    20

ARTICLE 5 CONSTRUCTION PHASE ..........................................................    20
Section 5.1     Selection of Contractor or Construction Manager .......................    21
Section 5.2     Vendor Preferences ....................................................    21
Section 5.3     Proposal Review .......................................................    21
Section 5.4     Contracts .............................................................    21
Section 5.5     Construction Document Provisions ......................................    21
Section 5.6     Construction Administration ...........................................    22
Section 5.7     Construction Commencement and Completion ..............................    22
Section 5.8     Determination of Approved Construction Costs; Cost Overruns ...........    22

ARTICLE 6 FURNISHINGS AND EQUIPMENT ...................................................    23
Section 6.1     Selection of Furnishings and Equipment ................................    23

ARTICLE 7 TERM ........................................................................    23
Section 7.1     Term ..................................................................    23

ARTICLE 8 PAYMENTS AND COMMITMENTS BY GREAT LAKES BEFORE APPROVAL OF MANAGEMENT
AGREEMENT .............................................................................    24
Section 8.1     Fees Payable By Great Lakes to the Band ...............................    24
                Initial Fee ...........................................................    24
                Signing Fee ...........................................................    24
                Monthly Payments ......................................................    24
Section 8.2     Deposit into the Account ..............................................    24
Section 8.3     Transition Loan .......................................................    25
Section 8.4     Advances on Lakes Development Loan ....................................    25
                   Gaming Site Acquisition Funds ......................................    26
                   Site Planning, Design Development and other Preliminary
                      Expenditures ....................................................    26
                   Advances to the Band for Gaming Ordinance ..........................    26
                   Advances to the Band for Development Soft Costs ....................    26
</TABLE>


                                        v

<PAGE>

<TABLE>
<S>             <C>                                                                        <C>
Section 8.5     Non-Gaming Land Acquisition Line of Credit ............................    26

ARTICLE 9 PAYMENTS AND COMMITMENTS BY GREAT LAKES AFTER APPROVAL OF MAANAGEMENT
AGREEMENT .............................................................................    26
Section 9.1     Scholarship Program Fee ...............................................    26
Section 9.2     Development and Equipment Loans .......................................    27
                   Lakes Development Loan .............................................    27
                   Bank Loan ..........................................................    33
                   Equipment Loan .....................................................    34
                   Lakes Facility Loan ................................................    34
                   Terms Applicable to all Loans ......................................    36

ARTICLE 10 EXCLUSIVITY; NON-COMPETITION ...............................................    39
Section 10.1    Exclusivity Regarding Facility ........................................    39
Section 10.2    Exclusivity in Michigan ...............................................    39
Section 10.3    Indiana Casino ........................................................    39
Section 10.4    Non-Competition .......................................................    39
Section 10.5    Assignment; Change of Control .........................................    39
Section 10.6    Restrictions on Collateral Development ................................    41

ARTICLE 11 REPRESENTATIONS, WARRANTIES, AND COVENANTS .................................    41
Section 11.1    Representations and Warranties of the Band ............................    41
Section 11.2    Band Covenants ........................................................    41
Section 11.3    Representations and Warranties of Lakes and Great Lakes ...............    43
Section 11.4    Covenants of Lakes and Great Lakes ....................................    44

ARTICLE 12 EVENTS OF DEFAULT ..........................................................    45
Section 12.1    Events of Default by the Band .........................................    45
Section 12.2    Events of Default by Lakes or Great Lakes .............................    46
Section 12.3    Material Breach; Right to Cure ........................................    46

ARTICLE 13 TERMINATION ................................................................    47
Section 13.1    Voluntary Termination .................................................    47
Section 13.2    Termination if No NIGC Approval .......................................    47
Section 13.3    Great Lakes Right to Terminate on Band Event of Default ...............    47
Section 13.4    Band Right to Terminate on Lakes Event of Default .....................    47
Section 13.5    Band Right to Terminate for Material Adverse Change ...................    47
Section 13.6    Termination on Buyout .................................................    49
Section 13.7    Involuntary Termination Due to Changes in Legal Requirements ..........    49
Section 13.8    Repair or Replacement .................................................    50
Section 13.9    Recoupment and Setoff .................................................    51

ARTICLE 14 DISPUTE RESOLUTION; LIQUIDATED DAMAGES .....................................    51
Section 14.1    Band's Waiver of Sovereign Immunity and Consent to Suit ...............    51
Section 14.2    Arbitration ...........................................................    51
                   Choice of Law ......................................................    52
</TABLE>


                                       vi

<PAGE>

<TABLE>
<S>             <C>                                                                        <C>
                   Place of Hearing ...................................................    52
                   Confidentiality ....................................................    52
Section 14.3    Limitation of Actions .................................................    52
                   Damages ............................................................    52
                   Consents and Approvals .............................................    53
                   Injunctive Relief and Specific Performance .........................    53
                   Action to Compel Arbitration .......................................    53
Section 14.4    Damages on Termination for Failure to Obtain NIGC Approval ............    53
Section 14.5    Liquidated Damages and Limitations on Remedies ........................    54
                   Liquidated Damages Payable by Great Lakes ..........................    54
                   Liquidated Damages Payable by the Band .............................    54
                   Limitation on Great Lakes Remedies .................................    55
Section 14.6    Lakes' and Great Lakes' Continuing Obligations ........................    55
Section 14.7    Termination of Exclusivity ............................................    55
Section 14.8    Remedies ..............................................................    55
Section 14.9    Fees not Damages ......................................................    56
Section 14.10   Damages for Governmental Action .......................................    56

ARTICLE 15 GENERAL ....................................................................    56
Section 15.1    Nature of Agreement ...................................................    56
Section 15.2    Great Lakes' Interest .................................................    56
Section 15.3    Situs of the Agreement ................................................    56
Section 15.4    Notice ................................................................    56
Section 15.5    Relationship ..........................................................    58
Section 15.6    Further Actions .......................................................    58
Section 15.7    Waivers ...............................................................    58
Section 15.8    Captions ..............................................................    58
Section 15.9    Third Party Beneficiary ...............................................    58
Section 15.10   Survival of Covenants .................................................    58
Section 15.11   Estoppel Certificate ..................................................    58
Section 15.12   Periods of Time; Time of the Essence ..................................    58
Section 15.13   Confidential and Proprietary Information ..............................    58
Section 15.14   Government Savings Clause .............................................    59
Section 15.15   Successors and Assigns ................................................    59
Section 15.16   Severability ..........................................................    59
Section 15.17   Entire Agreement ......................................................    59
Section 15.18   Consents ..............................................................    61
                   Band ...............................................................    61
                   Manager ............................................................    61
                   Business Board .....................................................    61
Section 15.20   Limited Joinder .......................................................    61
</TABLE>


                                       vii

<PAGE>

                                  EXHIBIT LIST

<TABLE>
<S>         <C>
EXHIBIT A   Second Amendment to Pledge and Security Agreement

EXHIBIT B   Second Amendment to Account Control Agreement

EXHIBIT C   Form of Dominion Account Agreement

EXHIBIT D   Description of Gaming Site

EXHIBIT E   Second Amended and Restated Lakes Development Note

EXHIBIT F   Lakes Facility Note

EXHIBIT G   Security Agreement

EXHIBIT H   Lakes Working Capital Advance Note

EXHIBIT I   Lakes Minimum Payments Note

EXHIBIT J   Second Amended and Restated Non-Gaming Land Acquisition Line of
            Credit Agreement

EXHIBIT K   Second Amended and Restated Transition Loan Note

EXHIBIT L   Band Litigation

EXHIBIT M   Conditional Release and Termination Agreement between Lakes and
            CRC dated May 20, 1999, as amended by Amendment dated on or about
            July 7, 1999, as amended by Amendment dated on or about January 2,
            2003

EXHIBIT N   General Release from CRC to the Band and its members
</TABLE>


                                      viii

<PAGE>

                SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT

This Second Amended and Restated Development Agreement is made as of the 22nd
day of December, 2004, by and between the POKAGON BAND OF POTAWATOMI INDIANS
(the "Band"), and GREAT LAKES GAMING OF MICHIGAN, LLC, a Minnesota limited
liability company (f/k/a Great Lakes of Michigan, LLC, ("Great Lakes").

                                    RECITALS

     A. The Band, pursuant to 25 U.S.C. Sections 1300j et seq. (the "Restoration
Act"), is a federally recognized Indian tribe recognized as eligible by the
Secretary of the Interior for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     B. As authorized by the Restoration Act, the Band intends to acquire the
Gaming Site in the State of Michigan, to be held by the federal government in
trust for the Band, on which the Band intends to construct and operate a
permanent Class III gaming facility (the "Facility"); and the Band will possess
sovereign governmental powers over the Gaming Site pursuant to the Band's
recognized powers of self government, and the Band desires to use the Gaming
Site to improve the economic conditions of its members.

     C. The Band and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc.
("Lakes") entered into a Development Agreement dated as of July 8, 1999 (the
"Development Agreement") which contains provisions relating to the development
of the Facility.

     D. The Band has ratified the Development Agreement on August 26, 1999, and
the Development Agreement is now in full force and effect.

     E. Lakes has assigned its rights and obligations under the Development
Agreement to Great Lakes pursuant to an Assignment and Assumption Agreement
dated as of October 16, 2000, subject to the terms and conditions set out in
that Agreement.

     F. Great Lakes and the Band entered into a First Amended and Restated
Development Agreement dated as of October 16, 2000 (the "First Amended
Development Agreement").

     G. Pursuant to the First Amended Development Agreement, Great Lakes agreed
to increase the Lakes Development Loan from $43,000,000 to $46,000,000 and the
Non-Gaming Land Acquisition Line of Credit from $10,000,000 to $15,000,000,
thereby agreeing to loan the Band an additional $8,000,000 for immediate use by
the Band in acquiring both gaming and non-gaming land. The Band and Great Lakes
agreed to construct the Facility in a phased approach, with the Initial Phase
having a then estimated cost of approximately $97,000,000. Great Lakes also
agreed, due to uncertainty in the capital markets over the availability of
financing for the Facility, to provide a greater proportion of the initial phase
of project financing from its own funds, and affirmed its commitment to finance
all phases of the project entirely from its own


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funds if financing at an interest rate of 13% or less is not available from the
capital markets. The Band in turn agreed to extend the term of the Management
Agreement from five to seven years and to enter into a Dominion Agreement
granting Great Lakes a security interest in the Dominion Account as defined in
the Management Agreement.

     H. The cost of developing, constructing and equipping the Initial Phase of
the Project is now understood as totaling approximately $197,000,000, which will
be financed as follows: the Lakes Development Loan in the amount of $46,000,000
and an additional $151,000,000 to be provided by an Equipment Loan and a Bank
Loan. To the extent that the Band is unable to raise additional funding of
$151,000,000 from third parties at an interest rate not to exceed 13% (the
"151MM Shortfall"), Great Lakes shall provide $54,000,000 (or such lesser amount
as may be necessary to make up the 151MM Shortfall) through, at its option, a
direct loan, third party loans enabled by credit enhancements provided by Great
Lakes, or third-party loans with interest subsidies provided by Great Lakes, in
each case at an interest rate not to exceed 13%, such $54,000,000 loan and the
Lakes Development Loan to be subordinated to certain other third-party
financing. Great Lakes shall not have any other responsibility to fund, or
provide credit enhancements or interest subsidies for, the 151MM Shortfall (if
any).

     I. Great Lakes and the Band have agreed that the term of this Agreement
shall begin on the date the Management Agreement, this Agreement (if required)
and the Lakes Development Note (if required) are approved by the Chairman of the
NIGC, and/or the BIA (if required), and continue until, unless earlier
terminated in accordance with its terms, seven (7) years from commencement of
Gaming at the Initial Phase of the Facility, provided that the Term of the
Management Agreement will be five (5) years from the Commencement Date if (a)
the Development Expenditures of the Initial Phase of the Facility are equal to
or more than $138,000,000, and (b) Lakes' Financial Support for such Initial
Phase has not exceeded $46,000,000, as provided in Section 3.2 of the Management
Agreement.

     J. Great Lakes has agreed to fund under the Lakes Development Loan, and has
funded, approximately $4,500,000 for long-lead-time items and to permit the Band
to start preliminary site work that can be done now under local and/or county or
state permits and, to the extent necessary, permits from the Band or the federal
government.

     K. Great Lakes and the Band have agreed that the termination date in
Section 8.1(c) of the Development Agreement, relating to the time period during
which the Monthly Payments may be required to be made by Great Lakes to the
Band, shall be extended from August 26, 2004 to August 26, 2007, and that a
corresponding change shall be made in Sections 13.2 and 14.4 of the Development
Agreement to change the August 26, 2004 date to August 26, 2007.

     L. This Second Amended and Restated Development Agreement incorporates
these agreements, as well as certain other changes to the First Amended
Development Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants, conditions and
promises herein contained, the receipt and sufficiency of which are expressly
acknowledged, the Band and Great Lakes hereby agree as follows:


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                                    ARTICLE 1
                           DEFINITIONS AND OBJECTIVES

     Section 1.1. Definitions. Capitalized terms not otherwise defined herein
shall have the meanings set forth in the Management Agreement. In addition to
other terms which are defined elsewhere in this Agreement, the following terms,
for purposes of this Agreement, shall have the meanings set forth in this
Section.

     "Account" means the account at Firstar established pursuant to Section 8.2
that is subject to the Control Agreement.

     "Accrued Expenses" shall mean the accrued unpaid development costs and
expenses relating to the Gaming Site and the Enterprise.

     "Agreement" shall mean this Development Agreement.

     "Agreements" shall mean this Agreement and the Management Agreement.

     "Approved Construction Costs" shall mean the Architect's estimate of
Construction Costs approved by the Band and Great Lakes pursuant to Section 5.8.

     "Approved Development Budget" has the meaning set out in Section 4.2.

     "Architect" shall have the meaning described in Section 4.1.

     "Assignment and Assumption Agreement" means the Assignment and Assumption
Agreement among Great Lakes, Lakes and the Band dated as of October 16, 2000, as
amended by First Amendment dated as of December 22, 2004.

     "Band Designee" shall mean Pokagon Properties, LLC, a Delaware limited
liability company, Filbert Land Development, LLC, an Indiana limited liability
company, or such other entities as may be designated by the Band in writing.

     "Band Designee Guarantee" shall mean the guarantee by the Band Designee to
Great Lakes of amounts advanced by Great Lakes under the Lakes Development Note
and the Non-Gaming Land Acquisition Line of Credit, which shall be substantially
in the form of the guaranty executed by Pokagon Properties, LLC in favor of
Lakes dated March 9, 2000.

     "Band Designee Mortgage" means, individually and collectively, each
mortgage granted by a Band Designee to Great Lakes securing the applicable Band
Designee Guarantee, which shall be substantially in the form of the mortgage
granted by Pokagon Properties, LLC to Lakes dated March 9, 2000.

     "Band Event of Default" has the meaning described in Section 12.1.


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     "Band Interest Rate" shall mean the lesser of (i) Wall Street Journal prime
rate as of the Bank Closing plus 1%, or (ii) 10%.

     "Band Mortgage" means, individually and collectively, each mortgage granted
by the Band to Great Lakes securing the Lakes Development Note and the
Non-Gaming Land Acquisition Line of Credit, which shall be substantially in the
form of the mortgage granted by Pokagon Properties, LLC to Lakes dated March 9,
2000, with appropriate changes reasonably acceptable to Great Lakes and the Band
reflecting the change to the Band as mortgagor and to Great Lakes as mortgagee.

     "Band Security Agreement" shall mean the pledge and security agreement
between Lakes and the Band granting the Band a lien and security interest in the
Account, in the form attached hereto as Exhibit A, as the same may be amended
from time to time.

     "Band Working Capital Advances" shall have the meaning defined in the
Management Agreement.

     "Bank Closing" means the closing on the Bank Loan Agreement.

     "Bank Lender" shall mean one or more financial institutions or bond
trustees described as the lender or bond trustee in the Bank Loan Agreement.

     "Bank Loan" shall mean the loan evidenced by the Bank Note.

     "Bank Loan Agreement" shall mean (a) the capital leases, loan agreements
and/or bond indentures to be entered into between the Band and the Bank Lender
for the Initial Phase in a principal amount of approximately $125,000,000,
which will, when added to the Lakes Development Loan and the Equipment Loan,
finance all Development Expenditures for the Initial Phase, provided that the
amount of the Bank Loan may be increased or decreased so long as the aggregate
amount of the Bank Loan Agreement and the Equipment Loan for the Initial Phase
shall not exceed $151,000,000; and (b) the subsequent or amended capital leases,
loan agreements and/or bond indentures in an additional approximate amount of
$76,000,000, which along with the additional Equipment Loan for the Final Scope
of Work will finance all Development Expenditures associated with the expansion
of the Facility to the Final Scope of Work; provided that the additional amount
of the Bank Loan may be increased or decreased so long as the additional
principal amount of such capital lease, loan and/or indenture, when added to the
additional Equipment Loan for that expansion, shall not exceed $95,000,000. The
amount borrowed under the Bank Loan Agreement may also be increased and the
added proceeds thereof used to refinance all or portions of the Lakes
Development Loan, provided that amounts used for such refinancing shall be in
addition to (a) the sums needed to fund Development Expenditures for the Initial
Phase (as to financing for the Initial Phase) and Final Scope of Work (as to
financing for the Final Scope of Work), in the respective maximum amounts set
out above, and (b) any sums which the Band is able to borrow without Great
Lakes' guaranty, credit enhancements or interest subsidy to expand the Initial
Scope of Work to include all or a portion of the Final Scope of Work.


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     "Bank Note" shall mean the promissory notes or bonds to be executed by the
Band pursuant to the Bank Loan Agreement.

     "BIA" shall mean the Bureau of Indian Affairs under the Department of the
Interior of the United States of America.

     "Business Board" shall mean the decision making body created pursuant to
Section 3.4 of the Management Agreement.

     "Change of Control" shall have the meaning set out in Section 10.5(c).

     "Class II Gaming" shall mean Class II Gaming as defined in the IGRA.

     "Class III Gaming" shall mean Class III Gaming as defined in the IGRA.

     "Commencement Date" shall mean the first date that Gaming is conducted
pursuant to the terms of the Management Agreement in a Facility, including
Gaming conducted on completion of the Initial Phase of the Facility.

     "Compact" shall mean the Compact between the Band and the State dated
December 3, 1998 and approved in 64 Fed. Reg. No. 32, Thursday, February 18,
1999, at 8111, as the same may, from time to time, be amended; or such other
compact or consent decree that may be substituted therefor.

     "Completion Date" shall mean the date upon which Great Lakes receives, as
to the Initial Phase or the Final Scope of Work:

               (i) an architect's certificate from the Architect chosen pursuant
               to this Agreement as having responsibility for the design and
               supervision of construction, equipping and furnishing of the
               Facility certifying that the Initial Phase or the Final Scope of
               Work, as the case may be, has been fully constructed
               substantially in accordance with the Plans and Specifications;

               (ii) certification from the division, department or designee of
               Great Lakes having responsibility to assure compliance with any
               operational standards stating that the Initial Phase or the Final
               Scope of Work, as the case may be, as completed, is in
               substantial compliance with any such standards;

               (iii) a permanent or temporary certificate of occupancy, if
               required, from the regulatory entity within the Band Government
               with authority to grant such a certificate, permitting the use
               and operation of the Initial Phase or the Final Scope of Work, as
               the case may be, in accordance with this Agreement; and


                                       5

<PAGE>

               (iv) certificates of such professional designers, inspectors or
               consultants or opinions of counsel, as Great Lakes may reasonably
               determine to be appropriate, verifying construction and
               furnishing of the Initial Phase or the Final Scope of Work, as
               the case may be, in compliance with all Legal Requirements.

     "Constitution" shall mean the document or documents which govern the
actions of the Band and, upon enactment, the Constitution of the Pokagon Band of
Potawatomi Indians as ultimately approved by the Band and approved by the
Secretary of the Interior.

     "Construction Costs" means the costs of acquiring the Gaming Site and
designing, developing, constructing, furnishing and equipping the Facility,
including all related planning and professional fees, Furnishings and Equipment,
and a contingency not to exceed 10% of such costs (excluding Furnishings and
Equipment).

     "Construction Documents" shall have the meaning described in Section 5.4.

     "Construction Guaranty Payments" shall have the meaning described in
Section 9.2.1(a)(i).

     "Control Agreement" shall mean the Account Control Agreement among Firstar,
Lakes and the Band dated July 8, 1999, as amended by Amendment to Account
Control Agreement dated October 16, 2000 and as further amended and restated by
Second Amended and Restated Control Agreement dated October __, 2003, perfecting
the Band's lien and security interest in the Account, a true copy of which is
attached as Exhibit B, as the same may be amended from time to time.

     "Corporate Commission" shall mean a body corporate and politic established,
at the Band's discretion, by the Pokagon Council to own the Enterprise and such
other businesses and assets as the Band may deem appropriate.

     "CRC" means Casino Resource Corporation, a Minnesota corporation and its
Insiders.

     "Design Agreement" shall have the meaning described in Section 4.1

     "Design Packages" shall have the meaning described in Section 4.1.

     "Development Expenditures" shall mean all Approved Construction Costs; all
other costs of equipping and opening the Facility, including but not limited to
all related planning and professional fees, costs of infrastructure, fixtures,
Furnishings and Equipment (including gaming equipment), and pre opening costs,
fees and expenses; all legal, lobbying, public relations and other professional
costs and expenses related to transferring Gaming Lands and Non-Gaming Lands
into trust and to the Compact between the Band and the State of Michigan; and
all legal, lobbying and other fees and expenses previously incurred by the Band
in obtaining, or litigating with regard to, the Compact with the State of
Michigan, not to exceed $20,000, as well as all


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<PAGE>

other such fees and expenses subsequently incurred by the Band that the Band
reasonably chooses to include in the Development Budget, together with all other
Development Soft Costs.

     "Development Soft Costs" shall mean legal, lobbying, public relations and
other professional fees and expenses for work related to the Compact, litigation
relating to transfer of the Gaming Site into trust or otherwise affecting the
Project, development of Band ordinances required under the Local Agreement or
otherwise needed for development of the Project, and other services reasonably
related to development of the Project, subject in each case to limitations, if
any, set forth in this Agreement.

     "Disbursement Accounts" shall mean those accounts described in Section
4.19.3 of the Management Agreement.

     "Dominion Account" means the collateral account in favor of Great Lakes
established under Section 4.19.2 of the Management Agreement.

     "Dominion Agreement" means the collateral agreement granting Great Lakes a
security interest in the Dominion Account and perfecting such interest, which
shall be in the form attached as Exhibit C, as the same may be amended from time
to time.

     "Economically Feasible" means for purposes of Sections 13.7 and 14.5
hereof, that the Net Revenues from any operations of the Enterprise in question
shall on a monthly basis exceed the aggregate debt service payments due and
payable during such month on each of the Loans and any other indebtedness to
which Great Lakes has subordinated its liens.

     "Enterprise" shall mean the enterprise of the Band created by the Band to
engage in Class II and Class III Gaming at the Facility, and which shall include
all gaming at the Facility and any other lawful commercial activity allowed in
the Facility, including but not limited to the sale of alcohol, tobacco, gifts
and souvenirs; provided, however, the Enterprise shall only include any hotel
operated by the Band, ancillary non-Gaming activity within the Facility, or
other commercial enterprise conducted by the Band which is not generally related
to Class II or Class III Gaming if such hotel, non-Gaming activity or other
commercial enterprise (a) is financed by, or through the guaranty of, Manager,
(b) is specifically included within the Initial Scope of Work or the Final Scope
of Work, or is not a material expansion of the Initial Scope of Work or the
Final Scope of Work, or (c) is specified by the Business Board and the Pokagon
Council as being included in the Enterprise, in which case depreciation and
other expenses relating to such hotel, non-Gaming activity or other commercial
enterprise shall be an Operating Expense, all related revenues shall be included
in Gross Revenues, and interest on all related financing shall be paid by the
Enterprise; and provided further that the Enterprise shall not include a tribal
gift/craft business which the Band may elect to operate, rent free, on an area
of about 2,400 square feet at the Facility. The design and operation of such
gift/craft shop shall be consistent with the theme and quality of the Facility,
and the location of such gift/craft shop shall be approved by the Business
Board.

     "Enterprise Accounts" shall mean those accounts described in Section 4.19.1
of the Management Agreement.


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<PAGE>

     "Equipment Lender" shall mean the financial institution described as the
lender in the Equipment Loan Agreement.

     "Equipment Loan Agreement" shall mean (a) the bond indentures, loan
agreements and/or equipment leases in a principal amount of approximately
$26,000,000 to be entered into between the Band and the Equipment Lender to
finance acquisition of the Furnishings and Equipment for the Initial Phase,
provided that the amount of the Equipment Loan may be increased or decreased so
long as the aggregate amount of the Bank Loan Agreement and the Equipment Loan
for the Initial Phase shall not exceed $151,000,000; and (b) the subsequent or
amended bond indenture, loan agreement and/or equipment lease in an additional
approximate amount of $19,000,000, which will finance the acquisition of the
Furnishings and Equipment for expansion of the Facility to the Final Scope of
Work; provided that the additional amount of the Equipment Loan may be increased
or decreased so long as the principal amount of such loan or lease, when added
to the Bank Loan for that expansion, shall not exceed $95,000,000.

     "Equipment Loan" means the loan or lease under the Equipment Loan
Agreement.

     "Equipment Note" shall mean the promissory note or bond to be executed by
the Band pursuant to the Equipment Loan Agreement.

     "Facility" shall mean the permanent buildings, structures and improvements
located on the Gaming Site and all fixtures, Furnishings and Equipment attached
to, forming a part of, or necessary for the operation of the Enterprise.

     "Final Scope of Work" means the final gaming facility and associated
amenities that the parties intend to complete, unless otherwise agreed by Great
Lakes and the Band, no later than the third anniversary of the Commencement
Date, which, together with the Initial Phase, shall include not less than
106,000 sq. ft. of gaming space, 100 gaming tables, 3,000 slot machines, a 3,100
car garage and additional surface parking for guests, oversized vehicles and
employees as needed, a 200 room hotel, expanded food and beverage facilities,
and a 2,500 seat bingo and events center, and which shall contain approximately
(excluding the hotel and bingo/events center) at least 350,000 to 370,000 sq.
ft. of space. The Final Scope of Work will include and be integrated with the
Initial Phase.

     "Firstar" shall mean Firstar Bank N.A., n/k/a U.S. Bank National
Association, and its successors in interest.

     "Force Majeure" shall mean acts of God, fire, flood, storm, earthquake,
war, civil disorder, governmental acts, regulations, orders or restrictions,
accidents not caused by a party's negligence, strikes or labor disturbances.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Enterprise in accordance with the
standards set forth in this Agreement, including, without limitation:


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               (i) cashier, money sorting and money counting equipment,
               surveillance and communication equipment, and security equipment;

               (ii) slot machines, video games of chance, table games, keno
               equipment and other gaming equipment;

               (iii) office furnishings and equipment;

               (iv) specialized equipment necessary for the operation of any
               portion of the Enterprise for accessory purposes, including
               equipment for kitchens, laundries, dry cleaning, cocktail
               lounges, restaurants, public rooms, commercial and parking
               spaces, and recreational facilities; and

               (v) hotel equipment (to the extent a hotel is included in the
               Enterprise);

               (vi) all other furnishings and equipment hereafter located and
               installed in or about the Facility which are used in the
               operation of the Enterprise in accordance with the standards set
               forth in this Agreement.

     "Gaming" shall mean any and all activities defined as Class II and Class
III Gaming pursuant to IGRA.

     "Gaming Ordinance" shall have the meaning described in Section 8.4(c).

     "Gaming Regulatory Authority" or "GRA" shall mean the Band body created
pursuant to the Band Gaming Ordinance to regulate the Class II and Class III
Gaming of the Band in accordance with the Compact, the IGRA and the Gaming
Ordinance.

     "Gaming Site" shall mean the parcels of land in New Buffalo, Michigan
described on the attached Exhibit D.

     "Gaming Site Acquisition Advances" shall mean funds advanced under the
Lakes Development Loan in such amount or amounts as are needed to option or
acquire the Gaming Site, provided that the total amount of Gaming Site
Acquisition Advances shall not exceed $11,000,000.

     "Governmental Action" means any resolution, ordinance, statute, regulation,
order or decision of the Band or any instrumentality or agency of the Band,
regardless of how constituted, that has the force of law.

     "Great Lakes" means Great Lakes Gaming of Michigan, LLC, a Minnesota
limited liability company (f/k/a Great Lakes of Michigan, LLC).

     "Guaranty" means the Unlimited Guaranty dated as of October 16, 2000 from
Lakes Gaming, Inc. and Lakes Gaming and Resorts, LLC to the Band.


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<PAGE>

     "Guaranty Reserve" shall have the meaning described in Section
9.2.1(a)((ii)(A).

     "Initial Phase" shall mean the first phase of the Facility, which shall
include the facilities described in the Initial Scope of Work. The Initial Phase
shall be designed and constructed so that it will be an integral part of the
Final Scope of Work.

     "Initial Scope of Work" means a facility including not less than 58,000 sq.
ft. of gaming space, 60 gaming tables, 2,000 slot machines, a buffet, casual
dining outlet, steakhouse, casino cafe, employee dining and a 2,100 space garage
and 500 surface parking spaces for guests, parking spaces for oversized vehicles
and approximately 500 employee spaces, and which shall contain at least 224,000
sq. ft. of space but shall not include a hotel; provided that if financing
beyond $151,000,000 is available to the Band without Great Lakes' guarantee,
credit enhancements or interest subsidy on terms acceptable to the Band, the
Initial Scope of Work may at the Band's option be increased to include all or an
additional portion of the Final Scope of Work.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, P.L. 100-497,
25 U.S.C. Section 2701 et seq. as it may from time to time be amended.

     "Insider" has the meaning defined in 11 U.S.C. Section 101(31), assuming
Lakes and Great Lakes were both the debtor in that definition, and shall include
persons or entities that become Insiders after the date of this Agreement,
whether as the result of a merger, acquisition, restructuring or otherwise.

     "Lakes" shall mean both Lakes Entertainment, Inc., f/k/a Lakes Gaming,
Inc., a Minnesota corporation, and Lakes Gaming and Resorts, LLC, a Minnesota
limited liability company.

     "Lakes Development Loan" shall mean the loan to the Band to be made by
Great Lakes under the Lakes Development Note in a principal amount of up to
$46,000,000 (which amount is subject to increase in accordance with Section
9.2.1 hereof), comprised of (a) up to $11,000,000 for Gaming Site Acquisition
Advances and (b) the balance for Development Expenditures other than acquisition
of the Gaming Site.

     "Lakes Development Note" shall mean the promissory note to be executed by
the Band to evidence the Lakes Development Loan, which shall be in the form
attached hereto as Exhibit E, together with all amendments, substitutions and
renewals thereof.

     "Lakes Event of Default" has the meaning described in Section 12.2.

     "Lakes Facility Loan" shall mean the Loan to be made by Great Lakes to the
Band, or facilitated by Great Lakes through guarantees, credit enhancements or
interest subsidies, pursuant to Section 9.2.4 of this Agreement. The Lakes
Facility Loan shall not include any loan to the extent it is subject to a Lakes
Refinancing Guaranty.


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<PAGE>

     "Lakes Facility Note" shall mean the promissory note to be executed by the
Band to evidence the Lakes Facility Loan if such Loan is made directly by Great
Lakes, which shall be in the form attached hereto as Exhibit F, together with
all amendments, substitutions and renewals thereof.

     "Lakes' Internal Expenses" shall mean Lakes's and Great Lakes' corporate
overhead, including without limitation salaries or benefits of any of Lakes's
and Great Lakes' officers and employees, whether or not they perform services
for the Project or the Enterprise, and any travel or other expenses of Lakes's
and Great Lakes' employees.

     "Lakes Refinancing Guaranty" means a guaranty of, or other credit
enhancement furnished by, Great Lakes or Lakes, to the extent that the proceeds
of the debt so guaranteed or benefited refinances all or a portion of the Lakes
Development Loan or any other obligation of the Band to Great Lakes.

     "Lakes Security Agreement" shall mean the security agreement to be executed
by the Band in favor of Great Lakes to secure the Lakes Facility Note, the Lakes
Development Note and other obligations as described in Section 9.2.1(j), which
agreement shall be in the form attached hereto as Exhibit G, as the same may be
amended from time to time.

     "Lakes Working Capital Advance Note" shall mean the promissory note to be
executed by the Band to evidence Lakes Working Capital Advances, which shall be
in the form attached hereto as Exhibit H, together with all amendments,
substitutions and renewals thereof.

     "Lakes Working Capital Advances" shall have the meaning defined in the
Management Agreement.

     "Legal Requirements" shall mean any and all present and future judicial,
administrative, and tribal rulings or decisions, and any and all present and
future federal, state, local and tribal laws, ordinances, rules, regulations,
permits, licenses and certificates, in any way applicable to the Band, Lakes,
the Gaming Site, the Facility, and the Enterprise, including without limitation,
the IGRA, the Compact, and the Band Gaming Ordinance.

     "Limited Recourse" shall mean that all Loans and all liabilities of the
Band under or related to the Agreements and the other Transaction Documents, the
Enterprise or the Gaming Regulatory Authority, and any related awards, judgments
or decrees, shall be payable solely out of undistributed or future Net Revenues
of the Enterprise and shall be a limited recourse obligation of the Band, with
no recourse to tribal assets other than such Net Revenues (except (i), as to the
Equipment Loan, a security interest in the Furnishings and Equipment purchased
with Equipment Loan proceeds, (ii) as to Great Lakes, a security interest in the
Furnishings and Equipment to the extent proceeds of the Lakes Facility Loan or
the Lakes Development Loan were used to fund acquisition of Furnishings and
Equipment, and as otherwise permitted under Section 9.2.1(j) of this Agreement,
(iii) if the Commencement Date does not occur, Subsequent Gaming Facility
Revenues to the extent provided in this Agreement, (iv) mortgages on the Gaming
Site and Non-Gaming Lands prior to their transfer into trust, and (v) after the
Commencement Date occurs, funds on deposit in the Dominion Account to the extent
provided in Section 9.2.1(j) of the


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<PAGE>

Development Agreement and the Dominion Agreement, or in any other dominion
agreement executed by the Band). In no event shall Great Lakes, Lakes or any
lender or other claimant have recourse to (a) the physical property of the
Facility (other than Furnishings and Equipment subject to the security interest
securing the Equipment Loan), (b) Tribal Distributions, (c) assets of the Band
purchased with Tribal Distributions, (d) revenues or assets of any other gaming
facility owned or operated by the Band, or (e) any other asset of the Band
(other than (i) as to Great Lakes, if the Commencement Date does not occur,
Subsequent Gaming Facility Revenues to the extent provided in this Agreement,
(ii) as to the Lakes Development Note and the Non-Gaming Acquisition Line of
Credit, mortgages on the Gaming Site and Non-Gaming Lands prior to their
transfer into trust, (iii) funds on deposit in the Dominion Account to the
extent provided in the Agreements, the Dominion Agreement and any other dominion
agreement executed by the Band, and (iv) such Net Revenues of the Enterprise).

     "Loans" shall mean the Lakes Development Loan, the Lakes Facility Loan, the
Lakes Working Capital Advances, the Minimum Payment Note, the Bank Loan and the
Equipment Loan.

     "Local Agreement" means the Local Agreement dated March 13, 2000 among the
Band, the City of New Buffalo and the Township of New Buffalo, as it may be
supplemented or amended.

     "Management Agreement" shall mean the Second Amended and Restated
Management Agreement of near or even date, pursuant to which Great Lakes shall
manage the Enterprise.

     "Material Adverse Change" shall mean a material adverse change in Lakes' or
Great Lakes' financial condition which materially and substantially impairs
Lakes' or Great Lakes' respective ability to perform under the Agreements and
the Guaranty.

     "Material Breach" means a failure of either party to perform any material
duty or obligation on its part, if such party fails to (i) cure the specified
default within thirty (30) days following receipt of the notice provided under
Section 12.3, or (ii) if the default is not capable of being cured within 30
days, commences such cure within 30 days, proceeds diligently to complete the
cure, and completes the cure no later than 90 days after receipt of such notice.

     "Memorandum of Understanding" means the Memorandum of Understanding between
the Band and the Secretary of the Interior executed on behalf of the Secretary
on January 11, 1999.

     "Minimum Payment Note" shall mean the promissory note to be executed by the
Band to evidence Minimum Guaranteed Payment Advances, which shall be in the form
attached hereto as Exhibit I, together with all amendments, substitutions and
renewals thereof..

     "Monthly Payments" shall have the meaning described in Section 8.1(c).

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to 25 U.S.C. Section 2704.


                                       12

<PAGE>

     "Net Revenues" shall have the meaning set forth in the Management
Agreement, and shall include "Net Revenues (gaming)" and "Net Revenues (other)"
as defined in the Management Agreement.

     "NIGC Approval" means the written approval by the NIGC of the Management
Agreement.

     "NIGC Disapproval" means a written determination by the NIGC that the
Management Agreement should be disapproved under 25 C.F.R. Section 533.6(c), if
within 120 days after notification of the NIGC decision Lakes and Great Lakes
have not cured the reason for such disapproval.

     "Non-Gaming Land" means any parcels of land in Michigan or Indiana (other
than the Gaming Site) which are (a) identified in a writing executed by the Band
as suitable for reservation homelands for the Band in accordance with the
Memorandum of Understanding, and (b) meet the requirements of United States of
America to be accepted in trust for the Band for Gaming or non-Gaming purposes;
provided that the Gaming Site and the Non-Gaming Land shall not exceed 4,700
acres in the aggregate.

     "Non-Gaming Land Acquisition Line of Credit" shall mean an internal line of
credit in favor of the Band established by Great Lakes in the amount of
$15,000,000, pursuant to the Second Amended and Restated Non-Gaming Land
Acquisition Line of Credit Agreement in the form attached hereto as Exhibit J,
to enable the Band to option or acquire Non-Gaming Lands.

     "151 MM Shortfall" means the difference, if any, between (a) $151,000,000
and (b) the aggregate amount of bank commitments and firm underwriting
commitments the Band obtains for the Initial Phase for the Bank Loan and the
Equipment Loan, without any guaranty, credit enhancement or interest subsidy
from Great Lakes or Lakes for such Loans (other than a Lakes Refinancing
Guaranty) and on terms not less favorable to the Band than those set out in
Sections 9.2.2, 9.2.3 and 9.2.5 with regard to those Loans.

     "Operating Expense" has the meaning provided in Section 2 of the Management
Agreement.

     "Plans and Specifications" shall mean the final Plans and Specifications
approved for the Facility as described in Section 4.8.

     "Pokagon Council" shall mean the duly elected governing legislative body of
the Band described pursuant to 25 U.S.C. Section 1300j-4(b) or, at the option of
the Band, a designed committee or council created pursuant to resolution or
ordinance of the Pokagon Council.

     "Preliminary Development Budget" shall have the meaning described in
Section 4.2.

     "Project" shall have the meaning described in Section 4.1.


                                       13

<PAGE>

     "Remaining Loan Availability Amount" shall have the meaning described in
Section 9.2.1(a)((ii)(A).

     "Reserve Amount" shall have the meaning described in Section
9.2.1(a)(ii)(A).

     "Restoration Act" shall mean 25 U.S.C. Sections 1300j et seq.

     "Restricted Territory" shall mean the States of Ohio, Illinois, Indiana and
Michigan.

     "Road Service Agreement" shall mean that certain Service, Maintenance and
Reconstruction of County Roads Agreement dated October 24, 2001 by and among the
Band, Great Lakes, Lakes and the Board of County Road Commissioners of Berrien
County, Michigan.

     "Scholarship Program Fee" shall mean the $1,000,000 non-refundable fee paid
by Lakes under Section 9.1 of this Agreement.

     "Signing Fee" shall have the meaning described in Section 8.1(b).

     "Specific Performance Restriction" shall mean that no arbitrator or court
shall have the power to compel, overturn, negate or in any manner modify any
Governmental Action; but such restriction shall not prevent an arbitrator from
determining that the taking of any Governmental Action or the failure to take
any Governmental Action, which is not caused by a breach of Great Lakes or
Lakes' obligations under the Agreements or the Guaranty, constitutes a breach of
this Agreement by the Band or the impairment of rights of Great Lakes under this
Agreement; and which therefore results in liability on the part of the Band for
damages in favor of Great Lakes as provided in this Agreement and enforcement of
the obligations of the Band to Great Lakes, including any security agreements
and collateral instruments, in accordance with their terms.

     "State" shall refer to the State of Michigan.

     "Subsequent Gaming Facility Revenues" means gaming revenues from a gaming
facility (including the Facility) owned or operated by the Band in Michigan, but
only to the following extent: (i) all Class III Gaming Net Revenue and (ii)
Class II Gaming Net Revenue, to the extent that such Net Revenue exceeds
$1,000,000 per annum.

     "Term" shall mean the term of this Agreement as described in Section 7.1.

     "Transaction Documents" shall mean, individually or collectively, as the
context may require, this Agreement, the Management Agreement, the Dominion
Account Agreement, the Band Mortgages, the Security Agreement, and any other
documents, instruments and agreements between Great Lakes and the Band
referenced therein, each as heretofore and hereafter amended.

     "Transition Loan" shall have the meaning described in Section 8.3.

     "Transition Loan Note" shall mean the promissory note to be executed by the
Band evidencing the Transition Loan, which shall be in the form attached hereto
as Exhibit K.


                                       14

<PAGE>

     "Tribal Distributions" shall mean Monthly Distribution Payments, Minimum
Guaranteed Monthly Payments and any other payments received by the Band pursuant
to or in connection with the Management Agreement.

     "Tribal UCC Code" shall have the meaning assigned to such term in Section
9.2.5(m) hereof.

     Section 1.2. Independent Agreement. The objective of the Band and Great
Lakes in entering into and performing this Agreement is to provide a legally
enforceable procedure and agreement pursuant to which Great Lakes will pay
certain fees to the Band and make certain loans to the Band, and whereby the
Band and Great Lakes can proceed as far as possible with development of the
Facility prior to the approval of the Management Agreement by the NIGC so that
the Facility can be opened to the public as soon as possible after the approval
of the Management Agreement by the NIGC; and to set forth the rights and
obligations of the parties if approval of the Management Agreement by the NIGC
does not occur or on the occurrence or non-occurrence of certain other events.
This is intended to be a legally enforceable agreement, independent of the
Management Agreement, which shall enter into effect when executed and delivered
by the parties and be enforceable between the parties regardless of whether or
not this Agreement or the Management Agreement is approved by the Chairman of
the NIGC.

                                    ARTICLE 2

                 ACQUISITION OF GAMING SITE AND NON-GAMING LANDS

     Section 2.1. Selection of Gaming Site. The parties have selected the Gaming
Site for the Facility.

     Section 2.2. Purchase of Gaming Site; Funding. The Band, through the Band
Designee, has purchased the Gaming Site using funds provided by Lakes or Great
Lakes under the Lakes Development Loan. All amounts so advanced by Lakes or
Great Lakes, together with option or acquisition payments made by Lakes or Great
Lakes prior to such purchase, are Development Expenditures and have been
advanced under the Lakes Development Note.

          2.2.1. The Band Designee has executed and delivered the Band Designee
Guarantee to Great Lakes. The Band Designee has executed and delivered to Great
Lakes a Band Designee Mortgage securing that guarantee.

     Section 2.3. [intentionally omitted]

     Section 2.4. Assignment of Other Options. Great Lakes shall at the Band's
sole and absolute discretion assign or cause to be assigned to the Band or the
Band Designee any or all options (other than the Gaming Site Option) it, or any
other nominee, Insider or agent of Lakes or Great Lakes may have on, or other
interests in, the following properties: (a) all lands acquired


                                      15

<PAGE>

by Lakes, Great Lakes or any agent or Insider of Lakes or Great Lakes relating
to the development of the Facility and related amenities, and (b) any other land
located within the 20-mile radius described in Section 10.6 below, unless the
Band consents in writing to their retention of specified options or interests
for specified purposes. Any such consent given by the Band shall be irrevocable
as to the specified property and purposes. Any such assignments shall be without
warranty or other recourse. Option payments or acquisition payments made by
Lakes or Great Lakes or Lakes' or Great Lakes' other nominees or agents prior to
such assignment shall be advances under the Non-Gaming Land Acquisition Line of
Credit and repayable in accordance with its terms.

     Section 2.5. Selection of Non-Gaming Lands. As soon as reasonably possible
after the date of this Agreement, the Pokagon Council shall select the
Non-Gaming Lands. The Band shall have sole discretion over the selection and
terms of acquisition of the Non-Gaming Lands.

     Section 2.6. Closing on Non-Gaming Lands; Funding. The Band or the Band
Designee shall thereafter proceed to purchase the Non-Gaming Lands. Such
purchase shall occur on or immediately following NIGC Approval; as may be
required to avoid expiration of options or deadlines set in purchase agreements,
as they may be extended with the consent of the owners of the proposed
Non-Gaming Lands; or as otherwise agreed by the parties. Great Lakes shall
advance funds in such amount or amounts as shall be needed to option and/or
acquire the Non-Gaming Lands, including without limitation all related fees and
transfer taxes, provided that the total amount Great Lakes shall be required to
advance shall not exceed $15,000,000. All amounts so advanced by Great Lakes
shall be advanced under the Non-Gaming Land Acquisition Line of Credit, which
shall be Limited Recourse, shall bear interest at the Band Interest Rate, and
shall be repayable in 60 equal monthly installments of principal and interest
commencing on the 15th day of the month after the month in which the
Commencement Date occurs.

          2.6.1. Funding where Non-Gaming Land Acquired by Band Designee. If the
Band opts to have the Band Designee enter into options or purchase agreements
for Non-Gaming Lands, or acquire any of the Non-Gaming Lands, the cost of
obtaining such options and agreements, and of closing under such options and
agreements, including all related fees, commissions and expenses, shall be
advanced by Great Lakes to the Band under the Non-Gaming Land Acquisition Line
of Credit, through a designee other than Great Lakes, which designee shall be
the nominee of and agent for Great Lakes. The Band shall in turn advance or
contribute such amounts to or for the benefit of the Band Designee. The Band
Designee shall execute and deliver to Great Lakes the Band Designee Guarantee.
The Band Designee shall also execute and deliver to Great Lakes' nominee a Band
Designee Mortgage securing that guarantee, or an amendment to such mortgage,
upon each closing on the Band Designee's acquisition of any such real property.
Great Lakes's Designee shall act solely as agent and nominee for Great Lakes in
advancing funds under the Non-Gaming Land Acquisition Line of Credit and holding
the Band Designee Mortgage, and shall not have any independent capacity; shall
be subject to all claims and defenses of the Band and the Band Designee against
Great Lakes and Lakes, to the same extent as if the property in question had
been acquired by the Band and mortgaged by the Band to Great Lakes or Lakes; and
shall be subject to the arbitration, limited waiver of immunity, Limited
Recourse and other provisions of Article 14 of the Development Agreement. Great
Lakes' designee shall only be entitled to enforce the Band Designee Mortgage
against the


                                      16

<PAGE>

Band Designee to the extent that, and in the same manner as, Great Lakes would
be entitled to enforce a Band Mortgage against the Band. Any Great Lakes'
designee shall execute and deliver to the Band an agency agreement reasonably
acceptable to the Band and Great Lakes.

     Section 2.7. Mortgages Prior to Transfer into Trust. Prior to transfer of
the Gaming Site or Non-Gaming Lands into trust, amounts advanced under the Lakes
Development Note and under the Non-Gaming Land Acquisition Line of Credit shall
be secured by a Band Mortgage or Band Designee Mortgage on all such properties.
Lakes and Great Lakes shall release such mortgages upon transfer of the
respective lands subject to such mortgages into trust, or as otherwise provided
in this Agreement.

                                    ARTICLE 3
                               CONSTRUCTION PHASES

     Section 3.1. Initial Phase. The Facility shall be constructed in two
phases, the Initial Phase and the Final Scope of Work. Great Lakes and the Band
agree to proceed with the Design Phase and the Construction Phase of the Initial
Phase in accordance with Articles 4 and 5, and to equip the Initial Phase of the
Facility in accordance with Article 6. The intent of the parties is to take all
steps necessary in accordance with Articles 4 and 5 to permit the Band to
commence construction of the Initial Phase immediately upon the taking into
trust of the Gaming Site and receipt of NIGC Approval, and to complete
construction of the Initial Phase, equip the Initial Phase of the Facility and
commence Gaming as soon as reasonably practicable thereafter.

     Section 3.2. Final Scope of Work. No later than six months after the
Commencement Date, Great Lakes shall submit to the Band a proposed Preliminary
Development Budget, plans and specifications for the Final Scope of Work. Upon
approval of such budget, plans and specifications, Great Lakes and the Band
shall proceed in accordance with Articles 4, 5 and 6 to design, construct and
equip the Facility in accordance with the Final Scope of Work in a timely manner
so as to permit opening of the Facility expansion no later than two years after
the Commencement Date.

     Section 3.3. Modification of Final Scope of Work. Notwithstanding any
provision of this Article, the Final Scope of Work may be reduced as follows:
The Band and Great Lakes may at any time notify the other party that it believes
that unanticipated material adverse changes in local gaming market conditions
(not including changed economic conditions, whether locally or in the economy
generally) make construction of the Facility to the Final Scope of Work not
economically feasible. In that event both parties shall negotiate in good faith
to determine what adjustments, if any, in the Final Scope of Work are
appropriate in light of the changed local gaming market conditions; provided
that such adjustments shall not result in a Facility smaller than the Initial
Phase. The Band and Great Lakes shall mutually agree upon the final budget,
plans and specifications for the Final Scope of Work.

     Section 3.4. Bank Loans and Equipment Loans. Any references in Articles 4,
5 and 6 to the Bank Loan, the Equipment Loan or the Bank Closing shall refer to
such loans or closings as they pertain to the financing of the Initial Phase or
the expansion to the Final Scope of Work, as appropriate.


                                       17

<PAGE>

                                    ARTICLE 4
                                  DESIGN PHASE

     Section 4.1. Employment of Architect. Great Lakes shall recommend to the
Band a minimum of three duly licensed architects, who shall be familiar with the
design of gaming facilities, for interview by the Pokagon Council, and the Band
shall select an architect from the group or, if none of the first group is found
acceptable to the Band, groups recommended by Great Lakes. The Band shall employ
such architect (the "Architect") for the purpose of performing certain services
in connection with the design and construction of the Facility, including site
development. The Band's agreement with the Architect shall be in the form of a
contract (the "Design Agreement") approved by Great Lakes and the Pokagon
Council. The scope of the project contemplated by this Agreement (the "Project")
shall be stated and established in the Design Agreement and shall be subject to
the mutual approval of the parties, but shall incorporate at a minimum the
Initial Phase and the Final Scope of Work (subject to the provisions of Section
3.3). The scope of design shall not include, but the design shall facilitate,
the possibility of the Band later designing and constructing phased expansions
of the hotel, theme retail space, golf course and other amenities. The Design
Agreement shall also provide for and establish appropriate design packages
("Design Packages"), each pertaining to a discrete portion or phase of the
Project. The Design Agreement shall allow Great Lakes the right and
responsibility to supervise, direct, control and administer the duties,
activities and functions of the Architect and to efficiently carry out its
covenants and obligations under this Agreement; but the Design Agreement shall
provide that the Architect will consult closely with the Band and the Band's
advisers, and that all design elements shall be subject to review and approval
by the Band.

     Section 4.2. Design and Construction Budgets. Great Lakes, with the
assistance and input of the Architect and subject to the approval of the Pokagon
Council, shall establish a preliminary Development Budget (the "Preliminary
Development Budget") for designing, constructing, furnishing and equipping the
Facility and related costs and Development Expenditures. The Preliminary
Development Budget, as approved by the Pokagon Council and as it may be amended
with the approval of the Pokagon Council, is referred to as the "Approved
Development Budget." The Approved Development Budget shall reflect the Initial
Phase and, as to the expansion to include the Final Scope of Work, the Final
Scope of Work (subject to revision as provided in Section 3.3), as well as any
other planned phasing. Great Lakes may, after notice to and approval by the
Pokagon Council, revise the aggregate Approved Development Budget from time to
time as necessary or appropriate to reflect any unpredicted changes, variables
or events or to include additional and unanticipated Project costs. Great Lakes
may, at is sole discretion after notice to and approval by the Business Board,
reallocate part or all of the amount budgeted with respect to any line item to
another line item and to make such other modifications to the Approved
Development Budget as Great Lakes deems necessary or appropriate, provided that:
(i) the cumulative modifications of the Approved Development Budget for all
Design Packages shall not, without Great Lakes's prior approval and the Pokagon
Council's prior approval, exceed the aggregate Approved Development Budget, and
(ii) any modifications shall not otherwise conflict with the terms of this
Agreement. Approved


                                       18

<PAGE>

Development Budget adjustments which otherwise vary from the terms of the
Agreement, shall, in addition to requiring Great Lakes's approval, require the
approval of the Pokagon Council. The Band acknowledges that the Approved
Development Budget is intended only to be a reasonable estimate of Project
costs, subject, however, to the provisions of Section 5.8 with regard to cost
overruns.

     Section 4.3. Gaming Regulatory Authority Expenses. The Approved Development
Budget shall include such amounts as the Band determines, after consultation
with Great Lakes, are reasonable and necessary to assure that the GRA is able to
fulfill its regulatory role in a manner that does not slow the opening of the
Facility; provided that the cost of final preparation and approval of the Gaming
Ordinance shall not exceed $20,000.

     Section 4.4. [intentionally omitted].

     Section 4.5. Concept Design and Engineering. Great Lakes, after
consultation with the Business Board and the Architect, shall prepare for the
review and approval of the Pokagon Council, a statement of requirements for the
Facility, if any, including, but not limited to, planned phasing, if any, a
program of preliminary objectives, schedule requirements, design criteria,
including assumptions regarding HVAC demands, space requirements and
relationships, special equipment and site requirements.

     Section 4.6. Preliminary Program Evaluation. Great Lakes shall prepare for
review by the Business Board and approval of the Pokagon Council, a preliminary
evaluation of the proposed Project including, but not limited to, planned
phasing, if any, schedule, Development Budget requirements, and alternative
approaches to Project design and construction. Based upon the agreed-upon
schedule, Development Budget requirements and design, the Architect shall
prepare schematic design documents consisting of drawings and other documents
illustrating the scale and relationship of the Facility and any other Enterprise
components, as well as a preliminary estimate of Enterprise costs based upon the
proposed area, size and scope of the Enterprise.

     Section 4.7. Design Development. After review by the Business Board and
upon final approval of the schematic design documents by the Pokagon Council and
Great Lakes, the Architect shall prepare design development documents consisting
of drawings and other documents to fix and describe the size and character of
the Project as to architectural, structural, mechanical and electrical systems,
materials and such other elements and/or Design Packages as may be appropriate.
Further, the Architect shall advise Great Lakes with respect to, and update, any
Development Budget estimates. Great Lakes shall submit to the Pokagon Council,
for its review and approval, finalized versions of the design development
documents prepared by the Architect and agreed to by Great Lakes.

     Section 4.8. Plans and Specifications. Based upon the approved design
development documents and any further adjustments in the scope and quality of
the Project or in the Development Budget, the Architect shall prepare for
approval by Great Lakes and the Business Board construction documents consisting
of preliminary drawings and specifications setting forth the general
requirements for construction of the Project. The Architect shall proceed with
completion of detailed plans and specifications (the "Plans and Specifications")
as they relate to


                                       19

<PAGE>

construction of portions of the Facility in the order such portions are to be
completed or in the order required for sequential completion, and shall proceed
with completion of all Plans and Specifications as soon as reasonably possible
given construction scheduling and the intended progress of Project work. The
Architect shall advise the Business Board of any adjustments to previous
Development Budget estimates. The Plans and Specifications of the Initial Phase
shall be designed to accommodate the addition of further amenities, including
without limitation a hotel, expansion of the parking garage, and a
bingo/multi-purpose entertainment hall.

     As portions of the detailed Plans and Specifications are completed for
segments of the Project, the Architect shall be required to submit duplicate
copies of those portions of the Plans and Specifications to Great Lakes and to
the Business Board (for approval prior to release of such documents to
prospective bidders for bidding and prior to commencement of construction of
such portions) and to the Pokagon Council (for information).

     Section 4.9. Compliance with Construction Standards, Environmental Laws and
Regulations. The Facility shall be designed and constructed so as to adequately
protect the environment and the public health and safety and to comply with all
requirements of IGRA and the NIGC. The design, construction and maintenance of
the Facility shall, except to the extent a particular requirement or
requirements may be waived in writing by the Pokagon Council, meet or exceed all
reasonable minimum standards pertaining to the Band and national, State and
local building codes, fire codes and safety and traffic requirements (but
excluding planning, zoning and land use laws, ordinances, regulations and
requirements), which would be imposed on the Enterprise by existing State or
Federal statutes or regulations which would be applicable if the Facility were
located outside of the jurisdictional boundaries of the Band, even though those
requirements may not apply within the Band's jurisdictional boundaries. To the
extent that the Band has adopted or may in the future adopt more stringent
requirements, those requirements shall govern. Nothing in this subsection shall
grant to the State or any political subdivision thereof any jurisdiction
(including but not limited to, jurisdiction regarding zoning or Gaming Site use)
over the Facility or Enterprise or its development, management and operation.

     Section 4.10. Advance of Funds for Design Work, Long Lead Time Items and
Preliminary Site Work. Notwithstanding any lack of approval of the Management
Agreement or this Agreement by the NIGC, Great Lakes shall advance such funds
under the Lakes Development Loan as are reasonably necessary to proceed prior to
Bank Closing with site and facility planning, architectural renderings and
plans, including payments to the Architect pursuant to the Design Agreement,
engineering and environmental services, Development Soft Costs, working drawings
and construction contract bidding documents. Great Lakes has also advanced under
the Lakes Development Loan, notwithstanding lack of such approvals, such funds
(in the approximate amount of $4,500,000) as were reasonably necessary to order
long-lead-time items and to permit the Band to begin preliminary site work. All
amounts so advanced by Great Lakes prior to NIGC Approval and Bank Closing shall
be a part of the development cost of the Enterprise and shall be advanced under
the Lakes Development Note as part of the Lakes Development Loan.

                                    ARTICLE 5


                                       20

<PAGE>

                               CONSTRUCTION PHASE

     Section 5.1. Selection of Contractor or Construction Manager. Great Lakes
shall, in consultation with the Architect and the Business Board, initiate a
pre-bid selection process in order to pre-qualify prospective general
contractors and/or construction management in connection with the construction
of the Facility. Great Lakes shall submit the list of pre-qualified general
contractors and/or construction managers to the Pokagon Council, together with
Great Lakes's recommendations, for the Pokagon Council's review, comment and
approval. Special consideration shall be given in the selection of contractors
and/or construction managers to companies with a proven history of effective
employment of Native American and local subcontractors.

     Section 5.2. Vendor Preferences. In entering contracts for the supply of
goods and services for the Enterprise, including the selection of contractors
and/or construction managers, subcontractors and suppliers, Great Lakes shall
comply with the Band's Member Preference Program adopted on August 1, 2001, as
it may be amended, the provisions of Section 4 of the Local Agreement, and the
Labor Management Cooperation Agreement between Christman Kraus-Anderson, a joint
venture, and the Michigan State Building and Construction Trades Council and the
Southwest Michigan State Building and Construction Trades Council and Michigan
Regional Council of Carpenters dated May 14, 2002, as amended. Great Lakes shall
provide written notice to the Band in advance of all such contracting,
subcontracting and construction opportunities. The Band reserves the right to
require use of union labor on some or all contracts, subject to review with
Great Lakes of any related budgetary impact.

     Section 5.3. Proposal Review. Subsequent to the pre-qualification of
prospective contractors and/or construction managers, Great Lakes shall conduct
a review of responsive proposals for the construction of the Project, and Great
Lakes shall recommend to the Band a well-qualified construction manager,
contractor and/or contractors. The recommended contractor, contractors and/or
construction manager shall be subject to the approval of the Pokagon Council,
shall be properly licensed in the State of Michigan, and shall be capable of
furnishing a payment and performance bond satisfactory to the Business Board to
cover the construction for which the contractor, contractors and/or construction
manager may be retained.

     Section 5.4. Contracts. The Band shall enter into a construction management
agreement and/or construction contract or contracts (the "Construction
Documents") with the parties selected and approved in the form negotiated by
Great Lakes and approved by the Business Board for each Construction Document.
The Construction Documents shall provide that work shall begin only after NIGC
Approval, and the Construction Documents may provide that they shall be canceled
by either party if NIGC Approval has not occurred by a specified fixed calendar
date. The selected contractor, construction manager and/or other contracting
parties shall be compensated solely from the proceeds of the Lakes Development
Loan and the Bank Loan and/or the Lakes Facility Loan, if applicable, subject
to, and in accordance with the terms, conditions and provisions of the
Construction Documents and the respective Loan Agreements.

     Section 5.5. Construction Document Provisions. The Construction Documents
shall (i) require the successful construction manager or general contractor and
all contractors to be


                                       21

<PAGE>

responsible for providing all materials, equipment and labor necessary to
construct and equip the Project as necessary including site development; (ii)
shall include appropriate provisions assuring non-payment of Michigan sales and
use tax for goods and materials in the Project (to the extent said exemption is
available for the Project); and (iii) require said construction manager or
general contractor and all contractors to construct the Project in accordance
with the Plans and Specifications, including any changes or modifications
thereto approved by the Business Board. The Band agrees to indemnify Great Lakes
against loss or liability caused by any written direction by the Pokagon Council
not to collect or remit Michigan sales tax. The Construction Documents will
provide for insurance conforming to the applicable insurance requirements of the
Management Agreement, appropriate lien waivers, and for construction schedules
by which milestones, progress payments and late penalties, if any, may be
calculated.

     Section 5.6. Construction Administration. The Construction Documents shall
provide that Great Lakes shall be responsible for all construction
administration during the construction phase of the Project. Great Lakes shall
act as the Band's designated representative and shall have full power and
complete authority to act on behalf of the Band in connection with the
Construction Documents. To the extent allowed by the Design Agreement and the
Construction Documents, Great Lakes shall have control and charge of any persons
performing work on the Project site, and shall interpret and decide on matters
concerning the performance of any requirements of the Construction Documents.
Great Lakes shall have the authority to reject work which does not conform to
the Construction Documents. Great Lakes may conduct inspections to determine the
date or dates of substantial completion and the Completion Date. Great Lakes
shall observe and evaluate or authorize the observation and evaluation of
Project work performed, review or authorize review of applications for payment
for submission to the Band and review or authorize review and certification of
the amounts due the contractors and/or construction managers.

     Section 5.7. Construction Commencement and Completion. The Construction
Documents shall contain such provisions for the protection of the Band and Great
Lakes as the Band and Great Lakes shall deem appropriate; shall provide that the
construction of the Initial Phase of the Project shall commence on NIGC
Approval, following and subject to the granting of all approvals necessary to
commence construction; and shall also provide that any contractor shall exert
its best efforts to complete construction within such time as the Band and Great
Lakes agree following the commencement of construction. If the Band decides to
proceed with an expansion to the Final Scope of Work, Great Lakes and the Band
shall proceed in good faith with construction of a permanent Facility in
accordance with the Final Scope of Work, as modified under Section 3.3, with
such construction to be completed no later than two years after the Commencement
Date unless otherwise agreed by the Band, but subject to any delay caused by the
Band's approval process. All contractors shall, at a minimum, warrant their
respective portions of the work to be performed to be free of defects for at
least one year after the Completion Date of the Initial Phase and Final Scope of
Work, respectively.

     Section 5.8. Determination of Approved Construction Costs; Cost Overruns.
Promptly upon the Band's execution of the Construction Documents, the Architect
shall submit a final estimate of Construction Costs, which estimate shall be
subject to the reasonable approval of Great Lakes and the Pokagon Council. This
estimate of Construction Costs, as so approved, is referred to as "Approved
Construction Costs." Great Lakes shall pay, without repayment from


                                       22

<PAGE>

the Enterprise or recourse to the Band, Construction Costs of the Initial Phase
to the extent they exceed the lesser of (a) such Approved Construction Costs of
the Initial Phase (including the approved contingency reserve), as such costs
may change because of change orders approved by the Band and Great Lakes or
amendments to the Approved Development Budget approved by the Band and Great
Lakes, or (b) $197,000,000, or such other amount as the Pokagon Council and
Great Lakes may agree; in each case except insofar as such overruns are caused
by Force Majeure or by acts or omissions of the Band. Construction Costs do not
include amounts advanced under the Non-Gaming Acquisition Line of Credit or the
Transition Loan, and Great Lakes' liability for cost overruns under this
subsection shall be computed without regard to any amounts advanced by Lakes or
Great Lakes under such line of credit or loan.

                                    ARTICLE 6
                            FURNISHINGS AND EQUIPMENT

     Section 6.1. Selection of Furnishings and Equipment. Great Lakes shall
submit to the Business Board, for its review and approval, the specifications
for Furnishings and Equipment. Thereafter, Great Lakes shall select and procure
vendors for purchase by the Band of Furnishings and Equipment required to
operate the Enterprise in conformity with such specifications. The cost of
Furnishings and Equipment shall be financed through the Equipment Loan.
Alternatively, in the sole discretion of the Band, Great Lakes may arrange for
the procurement of Furnishings and Equipment on lease terms consistent with the
terms provided below as to the Equipment Loan, with such changes as may be
approved by the Business Board. Any commitments for the procurement of
Furnishings and Equipment shall, however, become binding on the Band only upon
later of (a) NIGC Approval or (b) the receipt by Band of a commitment for the
Equipment Loan consistent with the terms of this Agreement (or on such modified
terms as shall be agreed to by the Band).

                                    ARTICLE 7
                                      TERM

     Section 7.1. Term. This Agreement shall enter into and remain in full force
and effect from the date of execution hereof until, unless earlier terminated in
accordance with its terms, the later of:

               (a) seven (7) years from the Commencement Date, provided that if
          the Term of the Management Agreement is reduced to five (5) years
          pursuant to Section 3.2 of the Management Agreement, the term of this
          Agreement shall be five (5) years plus the period of development and
          construction, or such earlier date as the Management Agreement shall
          have been terminated in accordance with its terms; or

               (b) the date on which all obligations owed to Great Lakes by the
          Band pursuant to this Agreement and any related notes have been
          satisfied in full or otherwise discharged.


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<PAGE>

                                    ARTICLE 8
 PAYMENTS AND COMMITMENTS BY GREAT LAKES BEFORE APPROVAL OF MANAGEMENT AGREEMENT

     Section 8.1. Fees Payable By Great Lakes to the Band. Great Lakes will pay
the following fees and advances to the Band:

               (a) Initial Fee. Lakes has paid the Band a non-refundable fee of
          $150,000 on execution of Term Sheet, the receipt of which is hereby
          acknowledged by the Band. Such payment shall be for the account of
          Great Lakes.

               (b) Signing Fee. Lakes has paid the Band a non-refundable signing
          fee of $1,000,000 (the "Signing Fee"). The Band acknowledges receipt
          of the Signing Fee, which shall be for the account of Great Lakes. Use
          and disbursement of Signing Fee monies shall be at the sole discretion
          of the Band, and Great Lakes shall have no responsibility for such
          funds after receipt thereof by the Band.

               (c) Monthly Payments. Great Lakes advanced $125,000 to the Band
          (the "Monthly Payments") on or about August 31, 1999, and shall
          thereafter advance on the 15th day of each month, beginning on
          September 15, 1999, and continuing until the date on which one of the
          following, whichever is earlier, has occurred:

               (i) the Commencement Date; or

               (ii) this Agreement and the Management Agreement have been
               terminated in accordance with their terms, and all related
               payments have been made; or

               (iii) August 26, 2007.

     Use and disbursement of the Monthly Payments, once received by the Band,
shall be at the sole discretion of the Band, and Great Lakes shall have no
responsibility for such funds after receipt thereof by the Band. All Monthly
Payments shall constitute advances under the Transition Loan pursuant to Section
8.3 of this Agreement and shall be repayable as provided in that section.

     Section 8.2. Deposit into the Account. Upon execution of the Development
Agreement Lakes deposited $20,900,000 into the Account, subject to the Security
Agreement and the Control Agreement. Such deposit shall be for the account of
Great Lakes. Great Lakes shall also deposit such further sums from time to time
as shall be necessary to maintain a minimum balance in the Account of at least
$2,000,000 at all times prior to the Commencement


                                       24

<PAGE>

Date; provided that Great Lakes shall not be required to make aggregate deposits
that exceed the total amount of fees, loans and other payments to be made by it
to or for the account of the Band under this Agreement. The Account shall:

               (a) serve as collateral for liquidated or other damages payable
          to the Band as provided in the Agreements; and

               (b) serve as a funding mechanism as provided in the Control
          Agreement, at Great Lakes' option, for Great Lakes's obligation to
          make payments to the Band (other than the Scholarship Program Fee) and
          to make advances under the Lakes Development Loan and the Lakes
          Facility Loan.

     Great Lakes agrees to execute and deliver the Security Agreement, the
Control Agreement, and such financing statements and other instruments as the
Band requests to perfect this security interest. Nothing in this section shall
limit Great Lakes's obligations to make payments as required under this
Agreement or limit the Band's remedies in the event of Great Lakes's default.
Funds in the Account shall be invested in such manner as Great Lakes reasonably
deems prudent, provided that the investment vehicles are liquid and do not
include equities, swaps, derivatives, commodities, or speculative instruments.
Great Lakes shall inform the Band of the nature and terms of the financial
instruments in which the escrowed funds are invested. Income from the Account
shall be payable to Great Lakes prior to a Lakes Event of Default. After a Lakes
Event of Default, income shall be payable to the Band to the extent needed to
fund damages payable to the Band. Firstar shall be entitled to reasonable
compensation acceptable to the Band and Great Lakes and to reimbursement of
expenses, all of which shall be payable from the Account prior to a Lakes Event
of Default and, after such an Event of Default, by Great Lakes. Payments into
the Account shall not be deemed advances to the Band for purposes of accrual of
interest, and interest shall only accrue as to funds advanced by Great Lakes
through the Account upon disbursement from the Account.

     Section 8.3. Transition Loan. Great Lakes shall make a loan to the Band for
the purposes and as set forth in clause (c) of Section 8.1, upon the terms set
forth in the form of Transition Loan Note (the "Transition Loan"). Each advance
of funds to the Band by Great Lakes as part of the Transition Loan shall be
evidenced by the Transition Loan Note, duly authorized and executed by the Band.
All amounts advanced under the Transition Loan shall be repayable to Great Lakes
as Limited Recourse obligations of the Band; shall not accrue interest for the
first two years after execution of the Management Agreement; shall, after the
expiration of that two year period, bear interest at the Band Interest Rate, as
defined below; and shall be payable monthly in arrears, beginning on the 15th
day of the month after the Commencement Date, in 60 equal monthly payments of
principal and interest. If the Bank Closing does not occur, interest shall
accrue on amounts advanced under the Transition Loan at Wall Street Journal
prime plus 1%, not to exceed 10%.

     Section 8.4. Advances on Lakes Development Loan. Great Lakes will provide
the following funds to the Band prior to NIGC Approval and the Bank Closing as
advances on the Lakes Development Loan, to be repaid with interest in accordance
with the terms provided in Section 9.2.1:


                                       25

<PAGE>

               (a) Gaming Site Acquisition Funds. Lakes or Great Lakes have
          advanced funds to permit the Band to acquire the Gaming Site, pursuant
          to Section 2.2.

               (b) Site Planning, Design Development and other Preliminary
          Expenditures. Great Lakes shall advance funds reasonably necessary for
          the work described in Articles 3, 4 and 5 of this Agreement to be
          performed prior to NIGC Approval and the Bank Closing, pursuant to
          those Articles.

               (c) Advances to the Band for Gaming Ordinance. In order to enable
          the Band to fulfill its covenant set forth in Section 11.2(a) below to
          timely adopt a Gaming Ordinance and regulations (the "Gaming
          Ordinance"), Great Lakes shall advance to the Band prior to NIGC
          Approval the reasonable cost of preparation and approval of the Gaming
          Ordinance, not to exceed $20,000.

               (d) Advances to the Band for Development Soft Costs. Great Lakes
          shall advance funds reasonably necessary for Development Soft Costs.
          Such advances shall be in accordance with a budget to be prepared by
          the Band and submitted to Great Lakes for its reasonable approval, as
          such budget may be modified from time to time. Great Lakes and the
          Band shall consult periodically with regard to Development Soft Costs.

     Section 8.5. Non-Gaming Land Acquisition Line of Credit. Great Lakes will
provide advances to the Band under the Non-Gaming Land Acquisition Line of
Credit but prior to the Commencement Date as provided in Sections 2.6 and 2.6.1,
upon the terms set forth in the form of Non-Gaming Land Acquisition Line of
Credit attached hereto as Exhibit J (the "Non-Gaming Land Acquisition Line of
Credit"). Each advance of funds to the Band by Great Lakes as part of the
Non-Gaming Land Acquisition Line of Credit shall be evidenced by such Line of
Credit, duly authorized and executed by the Band and setting forth the
applicable terms of this Agreement. All such advances shall be repaid with
interest on the same terms as provided in Article 9 with regard to the Lakes
Development Loan, except that funds advanced under the Non-Gaming Land
Acquisition Line of Credit shall at Great Lakes' request, prior to transfer of
land into trust, be guaranteed by the Band Designee and secured by mortgages in
favor of Great Lakes on any Non-Gaming Lands acquired by the Band or the Band
Designee. The Non-Gaming Land Acquisition Line of Credit shall otherwise be
Limited Recourse. All land and options acquired through the Non-Gaming Land
Acquisition Line of Credit shall be acquired in the name of the Band or the Band
Designee.

                                    ARTICLE 9
 PAYMENTS AND COMMITMENTS BY GREAT LAKES AFTER APPROVAL OF MANAGEMENT AGREEMENT

     Section 9.1. Scholarship Program Fee. Upon NIGC Approval and transfer of
the Gaming Site into trust eligible for Gaming purposes, Great Lakes will pay
the Band a non-


                                       26

<PAGE>

refundable fee of $1,000,000 (the "Scholarship Program Fee") into an account
established and controlled by the Band. The ultimate use and disbursement of
these funds shall be at the sole discretion of the Band, and Great Lakes shall
have no responsibility for such funds after payment to the Band.

     Section 9.2. Development and Equipment Loans. Great Lakes shall make
available to the Band the Lakes Development Loan and, upon NIGC Approval and
transfer of the Gaming Site into trust for the Band, shall assist the Band in
obtaining the Bank Loan and the Equipment Loan; and, to the extent required
under Section 9.2.4, shall provide the Lakes Facility Loan. Such Loans shall be
in an aggregate amount sufficient to, and shall be used to, pay for all
Development Expenditures for both the Initial Phase and the Final Scope of Work,
provided that (a) the aggregate amount of Development Expenditures for the
Initial Phase shall not exceed $197,000,000, (b) the aggregate amount of
additional Development Expenditures for the Final Scope of Work shall not exceed
an additional $95,000,000, and (c) the Bank Loan and Equipment Loan to fund the
Final Scope of Work need not be obtained at the same time as such Loans are
obtained for the Initial Phase. The Loans shall be in the following amounts and
on the following terms, unless otherwise agreed by the Band:

          9.2.1. Lakes Development Loan.

               (a) Amount: $46,000,000 for the Initial Phase, comprised of (i)
          up to $11,000,000 for Gaming Site Acquisition Advances and (ii) the
          balance for Development Expenditures other than acquisition of the
          Gaming Site. Great Lakes shall not be required to provide additional
          funding or credit enhancements for the Initial Phase except as
          provided under Sections 5.8 and 9.2.4, and shall not be required to
          provide any funding for the Final Scope of Work.

               (i) All amounts paid by Great Lakes or Lakes under or in relation
               to any guarantees or credit enhancements provided by Great Lakes
               or Lakes at the request of the Band with respect to any
               Construction Documents ("Construction Guaranty Payments"), shall
               be deemed advances under the Lakes Development Loan and to the
               extent required the maximum cap of the Lakes Development Loan
               shall be increased by such amounts paid; provided that Great
               Lakes and Lakes agree that they shall not make any Construction
               Guarantee Payments unless (A) the obligee or beneficiary
               thereunder has demanded such payment, (B) Great Lakes or Lakes
               has provided the Band with written notice of such demand, and (C)
               the Band has not paid the amount demanded within thirty (30) days
               after the Band's receipt of such notice.

               (ii) Great Lakes shall prior to the Commencement Date, at the
               request of the Band, provide guarantees, credit enhancements or
               interest subsidies for any Construction Documents and/or with
               respect to any Loans and, as to Loans, post cash collateral
               therefor, subject to the following terms (in addition to any
               other applicable terms set forth in this Agreement):


                                       27

<PAGE>

                    (A) Reserves ("Guaranty Reserves") shall, unless waived in
                    writing by the Band and Great Lakes, be established under
                    the Lakes Development Loan at the time that Great Lakes or
                    Lakes provides such guarantees, credit enhancements or
                    interest subsidies, which reserves shall be in an amount
                    (the "Reserve Amount") equal to the lesser of (x) the
                    principal amounts of the commitments under any Construction
                    Documents or Loans, as applicable, for which Great Lakes or
                    Lakes provided such guaranties, credit enhancements or
                    interest subsidies, or (y) any contractual limitation or cap
                    on Lakes or Great Lakes' liability under such guaranties or
                    other credit enhancements, or the present value of any such
                    interest subsidy as of the closing on the Bank Loan or the
                    Equipment Loan, as applicable; PROVIDED HOWEVER, that (I)
                    the amount of any Guaranty Reserve shall be reduced by the
                    amount of cash collateral posted by Lakes or Great Lakes to
                    secure any guaranty, credit enhancement or interest subsidy,
                    the amount advanced by Lakes or Great Lakes for such cash
                    collateral being an advance under the Lakes Development
                    Loan, (II) the amount of any Guaranty Reserve and the amount
                    of any Reserve Amount shall be reduced to the extent that
                    the liability of Lakes or Great Lakes under the guaranty,
                    credit enhancement or interest subsidy for which the
                    Guaranty Reserve is established decreases and is not, under
                    the terms of the guaranteed or benefited obligation, subject
                    to increase, and shall be terminated when such guaranty,
                    credit enhancement or interest subsidy is released or
                    terminated; and (III) except with the prior written consent
                    of Great Lakes or Lakes, as applicable, or as otherwise
                    provided under Section 9.2.4, neither the amount of the
                    guaranty, credit enhancement or interest subsidy nor the
                    related Guaranty Reserve shall exceed the then Remaining
                    Loan Availability Amount. The term "Remaining Loan
                    Availability Amount" shall mean as of any date in question,
                    the amount equal to $46,000,000, less all then outstanding
                    advances on the Lakes Development Loan, and less the
                    aggregate Reserve Amount as of such date for all previously
                    granted guaranties, credit enhancements or interest
                    subsidies (regardless of whether a Guaranty Reserve was in
                    fact established therefor); and

                    (B) Except with the prior consent of Great Lakes, at no time
                    shall Lakes or Great Lakes be obligated to make advances
                    under the Lakes Development Loan to the extent that the same
                    would cause the sum of outstanding advances under the Lakes
                    Development Loan plus the outstanding Reserve Amount as of
                    the date of such advance for all guaranties, credit
                    enhancements or interest subsidies previously granted by
                    Lakes and Great Lakes (regardless of whether a Guaranty
                    Reserve was in fact established therefor) to exceed
                    $46,000,000 unless such advance will have the


                                       28

<PAGE>

                    effect of reducing dollar for dollar the outstanding
                    obligation of Lakes or Great Lakes under any applicable
                    guaranty, credit enhancement or interest subsidy.

                    (C) Great Lakes, Lakes and the Band agree that no Guaranty
                    Reserves have been established as of the date hereof and
                    that no guaranty, credit enhancement or interest subsidy of
                    Lakes or Great Lakes is currently outstanding (other than
                    under the Road Service Agreement, which the parties intend
                    to terminate and shall not require any Guaranty Reserve).

                    (D) Any funds advanced by Lakes or Great Lakes under the
                    Lakes Development Loan or the Lakes Facility Loan to provide
                    cash collateral for a guarantee, credit enhancement or
                    interest subsidy of Lakes or Great Lakes shall, if released
                    on or prior to the Commencement Date, be used to pay
                    Development Expenditures and, if released after the
                    Commencement Date, shall be used at the Band's option to pay
                    Development Expenditures or to repay Loans.

               (b) Term: Seven (7) year term, plus the period of development and
          construction; provided that if the Term of the Management Agreement is
          reduced to five (5) years pursuant to Section 3.2 of the Management
          Agreement, the term of the Lakes Development Loan shall be five (5)
          years plus the period of development and construction.

               (c) Interest and amortization.

               (i) Interest at the Band Interest Rate shall accrue from date of
               advance until the Commencement Date; thereafter the Lakes
               Development Loan shall be payable as follows: monthly in arrears,
               beginning on the 15th day of the month after the month in which
               the Commencement Date occurs, in equal monthly payments of
               principal and interest for (a), if the term of the Lakes
               Development Loan is seven (7) years, the successive 84 months of
               the term; or (b) if the term of the Lakes Development Loan is
               five (5) years, in the successive 60 months of the term.

               (ii) If the Bank Closing does not occur, interest shall accrue on
               amounts advanced under the Lakes Development Loan at Wall Street
               Journal prime plus 1%, not to exceed 10%.

               (d) Repayment of the Lakes Development Loan shall be subordinated
          to the Bank Loan, the Equipment Loan, as well as to any other
          third-party loans or equipment leases necessary for the construction
          and equipping of the Facility as contemplated by Articles Three and
          Four of this Agreement. Great Lakes agrees to execute and deliver
          subordination agreements evidencing such subordination in


                                       29

<PAGE>

          form reasonably acceptable to the Bank Lender, the Equipment Lender,
          or such other third-party lender or equipment lessor.

               (e) The Band shall be entitled to draw on the Lakes Development
          Loan prior to NIGC Approval as provided in Sections 4.10 and 8.4, and
          thereafter the balance of the Lakes Development Loan upon NIGC
          Approval. Advances under the Lakes Development Loan may be made
          through the Account or otherwise at the written request of the Band.

               (f) Principal may be prepaid at any time without penalty.

               (g) Each advance of funds to the Band by Great Lakes under the
          Lakes Development Loan shall be made under a promissory note in the
          form of Lakes Development Note, duly authorized and executed by the
          Band.

               (h) All disbursements under the Lakes Development Loan shall be
          made (i) through the Enterprise Account and the Disbursement Account
          or (ii) pursuant to the Band's written direction to Great Lakes,
          unless otherwise agreed by Great Lakes and the Band in writing, and
          shall be on account of Development Expenditures in accordance with the
          Approved Development Budget, unless otherwise approved by the Business
          Board. Great Lakes shall provide the Band with a monthly accounting of
          all such disbursements, which accounting shall include a certification
          by Great Lakes that the disbursements shown on the accounting were for
          Development Expenditures in accordance with the Approved Development
          Budget, were for Development Soft Costs, or were otherwise approved by
          an attached vote of the Business Board.

               (i) (intentionally omitted)

               (j) The obligations of the Band to Great Lakes under the Lakes
          Development Note, the Lakes Facility Note, the Lakes Working Capital
          Advance Note, the Minimum Payments Note (subject to the limitations
          set forth in Section 5.6.2 of the Management Agreement), the
          Non-Gaming Land Acquisition Line of Credit and the Transition Loan,
          and under any other Transaction Documents and, under the Management
          Agreement, for Management Fees, shall be secured by a security
          interest in (I) the Dominion Account pursuant to the Dominion
          Agreement, (II) pursuant to the Lakes Security Agreement, Furnishings
          and Equipment to the extent that the proceeds of the Lakes Facility
          Note or the Lakes Development Note are used to acquire Furnishings and
          Equipment (the "Lakes FF & E"); and (III) pursuant to the Lakes
          Security Agreement, Furnishings and Equipment (or the Band's leasehold
          interest therein) that is not financed by Great Lakes through the
          Lakes Facility Note (the "Other FF&E"). Great Lake's security interest
          in the Dominion Account and Furnishings and Equipment shall be subject
          to the following terms and conditions:


                                       30

<PAGE>

               (i) Great Lakes may block payment to the Band of Monthly
               Distribution Payments and may foreclose on its security interest
               on the Dominion Account and on its security interest in any
               Furnishings and Equipment only on the occurrence of a Band Event
               of Default under the Development Agreement or the Management
               Agreement, if such default is not cured within any applicable
               cure period and, if arbitration is timely demanded, after entry
               of an arbitrator's award finding a Band Event of Default has
               occurred. Great Lakes must comply with applicable law with regard
               to taking possession of, and foreclosure on, Furnishings and
               Equipment, including without limitation any legal requirements
               relating to the possession or sale of gaming equipment.

               (ii) Great Lake's security interest in the Dominion Account, the
               Lakes FF&E, the Other FF&E and any other collateral of Great
               Lakes at or related to the Facility shall be senior to all other
               liens thereon, except that it shall be subordinate to any
               security interests granted to the Bank Lender and the Equipment
               Lender, and, as to the Dominion Account, shall be further subject
               to payment of the claims and expenses described in Section 4.19.6
               of the Management Agreement. Great Lakes shall promptly execute
               and deliver subordination agreements pertaining to the Dominion
               Agreement, the Lakes FF&E, the Other FF&E and any other
               collateral of Great Lakes at or related to the Facility with
               regard to any Bank Lender or Equipment Lender, which agreements
               shall contain provisions reasonably acceptable to Great Lakes and
               such lenders.

               (iii) The Dominion Agreement and the Lakes Security Agreement
               shall be amended at the Band's request (i) to conform with
               requests of the Bank Lender and the Equipment Lender, to the
               extent needed to obtain the Bank Loan or the Equipment Loan, and
               (ii) to the extent reasonably necessary to provide for
               subordinate security interests for loans for the benefit of the
               Enterprise as provided in Section 9.2.5(b) below.

               (iv) The Dominion Agreement shall terminate as to Great Lakes,
               without prejudice to the Bank Lender, the Equipment Lender, or
               any other party that may have joined in, or be benefited by,
               those agreements, and Great Lake's security interest in the
               Dominion Account shall be discharged, and Great Lakes shall
               discharge and terminate its security interest in the Furnishings
               and Equipment, on termination of this Agreement pursuant to
               Sections 13.1, 13.2 (except as otherwise provided in Section 14.4
               hereof), 13.4 (prior to the Commencement Date), 13.5, or 13.6
               hereof, or of the Management Agreement pursuant to Sections 12.1,
               12.2 (except as otherwise provided in Section 13.4 thereof), 12.4
               (prior to the Commencement Date), 12.5, 12.6 (prior to the
               Commencement Date) or 12.7 thereof. On a termination under
               Sections 13.4 (after the Commencement Date) or 13.7 of the
               Development Agreement or Sections 12.4 (after the Commencement
               Date), 12.6 or 12.8 of the Management Agreement after


                                       31

<PAGE>

               the Commencement Date, such security interest shall remain in
               effect until amounts due Great Lakes have been paid in accordance
               with the Agreements, and shall thereafter be promptly discharged;
               provided that (A) Great Lakes' right to payment and security
               interest in the Dominion Account after such termination under or
               pursuant to the Agreements shall continue to be subordinate to
               payment of claims and expenses described in Section 4.19.6 of the
               Management Agreement, and shall in addition be subordinate to (I)
               fees or other amounts due to any manager of the Enterprise, (II)
               any amounts due to lenders or lessors under loans for the benefit
               of the Enterprise, whether existing as of the termination or made
               thereafter, including without limitation the Bank Loan and the
               Equipment Loan, and (III) absent an Event of Default (as defined
               in the Transaction Documents, excluding the Development Agreement
               and the Management Agreement) under the obligations of the Band
               to Great Lakes (other than obligations under the Agreements which
               do not expressly survive their termination) which is not timely
               cured, Monthly Distribution Payments to the Band; (B) Great Lakes
               agrees to permit the prompt release and transfer of proceeds from
               the Dominion Account to or for the account of the Band to the
               extent necessary to pay such senior claims in accordance with
               their terms, and to pay such Monthly Distribution Payments, and
               Great Lakes agrees to cooperate with the Band and any replacement
               manager in that regard to maintain the going concern value of the
               Enterprise; and (C) the Band and any replacement manager may make
               deposits in, and withdrawals from, the Enterprise Accounts and
               Disbursement Accounts, after funds are transferred from the
               Dominion Account into such accounts, free of any interest of
               Great Lakes. Great Lakes shall promptly execute and deliver
               subordination agreements pertaining to the Dominion Agreement and
               the Lakes Security Agreement with regard to any such manager,
               lender or lessor, which agreements shall contain provisions
               reasonably acceptable to Great Lakes and the manager, lenders or
               lessors.

               (v) Nothing in the Dominion Agreement or the Lakes Security
               Agreement shall alter the damages due Great Lakes (A) on a Band
               Event of Default, which shall continue to be controlled by
               Article 14 of this Agreement and Article 13 of the Management
               Agreement, and the amount which Great Lakes is entitled to obtain
               on foreclosure on the Dominion Account or the Lakes Security
               Agreement shall be controlled by those Articles; or (B) under any
               other provision of the Agreements or any related agreement. Upon
               payment in full of all amounts due Great Lakes under the
               Agreements, the Lakes Development Note, the Lakes Working Capital
               Advance Note, the Lakes Facility Note, the Non-Gaming Acquisition
               Line of Credit and the Transition Loan, Great Lakes shall
               promptly terminate the Dominion Agreement and the Lakes Security
               Agreement and release any related security interests.


                                       32

<PAGE>

               (vi) The Band shall execute and deliver the Lakes Security
               Agreement on the date of this Agreement and the Dominion Account
               Agreement (together with any additional resolutions of the Band
               and/or the Pokagon Council as may be legally required to
               authorize the Band to execute, deliver and perform such
               Agreement) on or before the Commencement Date.

          9.2.2. Bank Loan.

               (a) Amount:

               (i) For the Initial Phase, an amount of approximately
               $125,000,000 which, when added to the Lakes Development Loan and
               the Equipment Loan, will finance all Development Expenditures for
               the Initial Phase, plus, at Great Lakes' discretion, such amount
               to refinance all or portions of the Lakes Development Loan as may
               be permitted under the definition of "Bank Loan Agreement;"

               (ii) For the expansion of the Facility to the Final Scope of
               Work, an additional amount of approximately $76,000,000, which
               will, when added to the additional Equipment Loan for the Final
               Scope of Work, finance all Development Expenditures associated
               with such expansion; provided that the principal amount of such
               additional loan, capital lease and/or indenture, when added to
               the additional Equipment Loan for that expansion, shall not
               exceed $95,000,000.

               (b) Term: For the Initial Phase and Final Scope of Work: As to
          each not less than seven (7) years, and amortized (including both
          principal payments and payments into a sinking fund) no more rapidly
          than in equal monthly installments of principal and interest; or, if
          the Band is unable to obtain the Bank Loan on such terms, with a term
          reasonably acceptable to the Band and Great Lakes.

               (c) Guaranty: Great Lakes shall not be required to provide its
          guarantee of the Bank Loan or any other credit enhancements, except as
          provided in Section 9.2.4 with regard to the Lakes Facility Loan.

               (d) Assignment: The loan commitment or undertaking shall not be
          assignable by either Great Lakes or the Band without the written
          consent of both parties.

               (e) (intentionally omitted)

               (f) Assistance: Great Lakes shall proceed promptly and with due
          diligence after NIGC Approval to assist the Band in obtaining a bank
          commitment or firm underwriting commitment for the Bank Loan as
          provided in Section 9.2.5(g), and in closing on the Bank Loan promptly
          after obtaining such commitment.


                                       33

<PAGE>

          9.2.3. Equipment Loan.

               (a) The Equipment Loan for the Initial Phase shall be in an
          amount of approximately $26,000,000.. The Equipment Loan for the
          expansion to the Final Scope of Work shall be an additional amount of
          approximately $19,000,000, necessary to equip the Facility to the
          Final Scope of Work, provided that the principal amount of such
          Equipment Loan, when added to the additional Bank Loan for such
          expansion, shall not exceed $97,000,000. Interest shall accrue on the
          amount advanced for the Initial Phase until the Commencement Date;
          thereafter such advance shall be repayable monthly in arrears,
          beginning on the 15th day of the month after the month in which the
          Commencement Date occurs, in equal monthly payments of principal and
          interest for the successive 48 months of the term. The amount advanced
          to equip the expansion to the Final Scope of Work shall be repaid in
          equal monthly payments of principal and interest for the successive 48
          months after Completion Date of such expansion, beginning 15 days
          after such Completion Date; or on such other terms as the Band may
          reasonably approve.

               (b) Security: Purchase money security interest in Furnishings and
          Equipment purchased with the loan proceeds.

               (c) Guaranty: Great Lakes shall not be required to provide its
          guarantee or any other credit enhancement of the Equipment Loan,
          except as provided in Section 9.2.4 with regard to the Lakes Facility
          Loan.

               (d) Assignment: The loan commitment shall not be assignable by
          either Great Lakes or the Band without the written consent of both
          parties.

               (e) (intentionally omitted)

               (f) Lease: At the Band's option the Equipment Loan may be
          structured into an equivalent equipment lease.

               (g) Assistance: Great Lakes shall proceed promptly and with due
          diligence after NIGC Approval to assist the Band in obtaining a
          commitment for the Equipment Loan as provided in Section 9.2.5(f), and
          in closing on the Equipment Loan promptly after obtaining such
          commitment.

          9.2.4. Lakes Facility Loan.

               (a) Loan Amount:

               (i) If the Band, with Great Lakes' assistance, is unable to
               obtain, no later than the earlier of (A) 90 days after the later
               of NIGC Approval or transfer of the Gaming Site into trust, or
               (B) after receiving NIGC Approval and transfer of the Gaming Site
               into trust, the date by which additional funding


                                       34

<PAGE>

               is needed to keep development and construction of the Initial
               Phase on schedule without slowdown or abatement (unless otherwise
               agreed by the Band), a bank commitment or firm underwriting
               commitment to provide the Bank Loan and the Equipment Loan on the
               terms set forth in this Agreement at an interest rate equal to or
               less than 13% per annum in an aggregate amount of not less than
               $151,000,000 for the Initial Phase, Great Lakes agrees that it
               will, at its option but to the extent needed to fund the 151MM
               Shortfall, (I) loan the Band the difference between $151,000,000
               and the aggregate amount of such commitments which the Band is
               able to obtain on such terms, but not more than $54,000,000, at a
               13% interest rate and otherwise on the same terms and conditions
               as provided in this Agreement with regard to the Lakes
               Development Loan; (II) provide its guaranty or other credit
               enhancement to a third party providing such a loan on such terms;
               or (III) subsidize the interest payable by the Band on such a
               loan from a third party on such terms, to the extent it exceeds
               13%.

               (ii) To the extent that Great Lakes is unable to obtain third
               party financing for the 151MM Shortfall on such terms through
               guarantees, credit enhancements or interest subsidies, it shall
               provide a direct loan to the Band on such terms.

               (iii) In no event shall the loan which Great Lakes is obligated
               to make, obtain or subsidize under this subsection exceed
               $54,000,000.

               (iv) If the Lakes Facility Loan is made by a third party lender
               through guarantees, credit enhancements or interest subsidies of
               Great Lakes, all references to Great Lakes in this Agreement
               relating to the Lakes Facility Loan and the Lakes Facility Note
               shall be deemed to include references to such third-party lender
               for the purposes of such loan and such note.

               (b) Term: The Lakes Facility Loan shall have the same term as the
          Lakes Development Loan.

               (c) Interest and amortization: Interest shall accrue at the rate
          of 13%. The amortization of the Lakes Facility Loan shall be the same
          as on the Lakes Development Loan.

               (d) Subordination: Repayment of the Lakes Facility Loan shall be
          subordinated to the same extent as the Lakes Development Loan. Great
          Lakes agrees to execute and deliver subordination agreements
          evidencing such subordination in form reasonably acceptable to Great
          Lakes and the Bank Lender, the Equipment Lender, or, as to other
          third-party lenders or equipment lessors, as required by this
          Agreement.


                                       35

<PAGE>

               (e) Advances: Advances under the Lakes Facility Loan may be made
          through the Account or otherwise at the written request of the Band.

               (f) Prepayment: Principal may be prepaid at any time without
          penalty.

               (g) Promissory Note: Each advance of funds to the Band by Great
          Lakes under the Lakes Facility Loan shall be made under a promissory
          note in the form of Lakes Facility Note, duly authorized and executed
          by the Band.

               (h) Disbursements: All disbursements under the Lakes Facility
          Loan shall be made (A) through the Enterprise Account and the
          Disbursement Account or (B) pursuant to the Band's written direction
          to Great Lakes, unless otherwise agreed by Great Lakes and the Band in
          writing, and shall be on account of Development Expenditures in
          accordance with the Approved Development Budget, unless otherwise
          approved by the Business Board.

               (i) Security: The obligations of the Band to Great Lakes under
          the Lakes Facility Loan shall be secured to the extent provided in
          Section 9.2.1(j).

          9.2.5. Terms Applicable to all Loans.

               (a) (intentionally omitted)

               (b) Limited Recourse: Loan repayments shall be solely out of
          revenues of the Enterprise and shall be a Limited Recourse obligation
          of the Band. The Band agrees not to encumber any of the assets of the
          Facility or the Enterprise without the written consent of Great Lakes
          and the holder of the Bank Loan, which consent will not be
          unreasonably withheld; except that the Band shall have the right
          without the consent of Great Lakes and such holder to grant
          subordinate security interests in Enterprise revenues, as well as
          first priority purchase money security interests in any Enterprise
          assets purchased with proceeds of such loan (other than Furnishings
          and Equipment purchased with the proceeds of the Equipment Loan, the
          Lakes Development Loan or the Lakes Facility Loan), but in each case
          only if such security interests are granted to secure loans made for
          the benefit of the Enterprise. The Band shall not lease the Facility
          or grant a leasehold mortgage on the Facility without Great Lakes'
          consent.

               (c) Limited Waiver. The Band shall enter into a limited,
          transactional waiver of sovereign immunity and consent to jurisdiction
          and arbitration as to the holder of the Bank Note and the Equipment
          Note as provided in Sections 14.1 and 14.2 as to Great Lakes.
          Governing law shall be Michigan law unless the Band otherwise agrees.

               (d) Other Terms. All other terms are subject to the Band's
          approval, which approval shall not be unreasonably withheld.


                                       36

<PAGE>

               (e) Selection of Lenders, etc. The selection of the lenders
          making the Bank Loan, the Equipment Loan and all other loans or leases
          relating to the Enterprise, and of all underwriters and professionals
          relating to any such transaction, shall be subject to the Band's
          reasonable approval.

               (f) Loan Commitments - Equipment Loan.

               (i.) Promptly and with due diligence after NIGC Approval and
               transfer of the Gaming Site into trust, but in no event later
               than 90 days after the later of NIGC Approval or transfer of the
               Gaming Site into trust (unless otherwise agreed by the Band),
               Great Lakes shall (A) deliver to the Band a proposed commitment
               from a lender with regard to the Equipment Loan for the Initial
               Phase, the terms of which shall be consistent with this Agreement
               and otherwise reasonably acceptable to the Band, and (B) increase
               the amount of the Escrow Account to $46,000,000 (less amounts
               previously advanced under the Lakes Development Loan).

               (ii.) After the Commencement Date and at such time as will permit
               completion of the Final Scope of Work in accordance with this
               Agreement, Great Lakes shall deliver to the Band a proposed
               commitment from an Equipment Lender with regard to the Equipment
               Loan for the expansion of the Facility to the Final Scope of
               Work, the terms of which shall be consistent with this Agreement
               and otherwise reasonably acceptable to the Band.

               (g) Loan Commitments - Bank Loan.

               (i.) Promptly and with due diligence after NIGC Approval and
               transfer of the Gaming Site into trust, but in no event later
               than 90 days after the later of NIGC Approval or transfer of the
               Gaming Site into trust (unless otherwise agreed by the Band),
               Great Lakes shall deliver to the Band a proposed commitment or
               other firm undertaking from a lender or underwriter with regard
               to the Bank Loan for the Initial Phase, the terms of which shall
               be consistent with this Agreement and otherwise reasonably
               acceptable to the Band.

               (ii.) After the Commencement Date and at such time as will permit
               completion of the Final Scope of Work in accordance with this
               Agreement, Great Lakes shall deliver to the Band a proposed
               commitment from a Lender with regard to the Bank Loan for the
               expansion of the Facility to the Final Scope of Work, the terms
               of which shall be consistent with this Agreement and otherwise
               reasonably acceptable to the Band.

               (h) (intentionally omitted)


                                       37

<PAGE>

               (i) Refinancing - Band. The Band may seek to refinance any Loan.
          Great Lakes agrees to cooperate with that refinancing, provided that
          (i) all costs and expenses of the refinancing shall, to the extent
          that interest expense is reduced by the refinancing, be an Operating
          Expense of the Facility, and shall otherwise be either borne by the
          Band or funded through the refinancing; and (ii) Great Lakes is not
          required to guarantee any new loan facilities. Interest on any new
          facility shall be an Operating Expense of the Facility.

               (j) Refinancing - Great Lakes. Great Lakes may, at or after the
          closing on the Bank Loan, seek to refinance the Lakes Development Loan
          and any other Loan that is made by a third party lender with a
          guarantee, other credit enhancement or interest subsidy provided by
          Lakes or Great Lakes; and may, after the closing on the Bank Loan,
          seek to refinance the Lakes Facility Loan. The Band agrees to
          cooperate with that refinancing, provided that (i) all costs and
          expenses of the refinancing (unless closed at the time of the Bank
          Loan) are borne by Great Lakes, (ii) the terms of the refinancing are
          in all respects no less favorable to the Band than provided in this
          Agreement or (to the extent more favorable than this Agreement) under
          the loan documentation of the obligation being refinanced (including,
          without limitation, interest rate, amortization, and recourse),
          without regard to any guaranty, other credit enhancement or interest
          subsidy provided by Great Lakes, and are otherwise reasonably
          acceptable to the Band; and (iii) the refinanced debt shall not be
          payable on termination of the Agreements with Great Lakes, provided
          that management of the Enterprise after such termination shall be
          reasonably acceptable to the lender.

               (k) Great Lakes Guarantees. The Band consents to the grant by
          Lakes and Great Lakes of other guarantees pari passu to third parties,
          provided that such other guarantees do not and shall not materially
          impair Lakes's or Great Lakes' ability to perform their respective
          obligations under the Guaranty or the Agreements, or under any
          instruments or agreements executed in connection therewith.

               (l) Increase Loan Amounts. The amount of Loans may be increased
          by agreement of Great Lakes and the Band to the extent that the
          Approved Development Budget exceeds the funds available under the
          Loans as provided above.

               (m) NIGC Approval; Tribal UCC. Great Lakes's obligation to
          advance funds under the Lakes Development Loan (except as provided in
          Sections 4.10 and 8.4) and the Lakes Facility Loan, and to procure and
          close on the Bank Loan and the Equipment Loan, are conditioned upon
          (i) NIGC Approval and (ii) the Band's adoption of a Tribal Uniform
          Commercial Code (the "Tribal UCC") that shall be substantially
          similar, as to secured transactions, to Articles 1, 2, 8 and 9 of the
          Uniform Commercial Code adopted by the State of Michigan (with the
          exclusion of any provisions that would otherwise make such Code
          inapplicable to secured transactions involving the Band or any of its
          affiliates); provided that the Tribal


                                       38

<PAGE>

          UCC may, at the Band's option, be limited in its application to the
          Loans, the transactions contemplated by the Transaction Documents and
          other transactions relating to the Enterprise. Nothing in this
          subsection affects or impairs Great Lakes's liability for damages in
          the event of NIGC Disapproval.

               (n) Subrogation. The Band recognizes that if Lakes or Great Lakes
          guarantees the Bank Loan or the Equipment Loan and pays in full either
          loan pursuant to its guarantee, Lakes or Great Lakes shall be
          subrogated to the liens, rights and remedies of the lender of the loan
          so paid.

                                   ARTICLE 10
                          EXCLUSIVITY; NON-COMPETITION

     Section 10.1. Exclusivity Regarding Facility. During the term of this
Agreement, Great Lakes shall have an exclusive relationship with the Band
regarding the development of the Facility.

     Section 10.2. Exclusivity in Michigan. The Band shall deal exclusively with
Great Lakes for gaming development on Indian lands in Michigan from the date of
execution of this Agreement through the earlier of five years from the
Commencement Date or termination or buyout of the Agreements.

     Section 10.3. Indiana Casino. Great Lakes and Lakes recognize that the Band
intends to develop a casino in Indiana, and that the Band shall have no
obligations to Great Lakes or Lakes in that regard; except that the Band agrees
that, if it decides to engage an outside manager to develop or operate an
Indiana casino, it shall discuss contracting with Great Lakes for such
development or operation for 45 days before soliciting proposals from third
parties as to management or development of that casino. No obligation to enter
into an agreement with Great Lakes shall be implied from this undertaking, and
the Band shall retain full and absolute discretion in that regard.

     Section 10.4. Non-Competition. Lakes and Great Lakes each agree that for
five years after execution of the Agreements or the Term of the Agreements,
whichever is greater, neither it nor any of their respective present or future
Insiders will without the prior written approval of the Pokagon Council directly
or indirectly in the Restricted Territory develop, operate, consult with regard
to, or be in any way affiliated with any non-Indian gaming facility, any Class
II or III Gaming facility or any other kind of gaming, or any hotels or other
amenities related to such gaming or facility; except that Insiders shall not
include (a) Kids Quest, Grand Casinos, Inc., or Innovative Gaming Corp. by
reason of (i) the service of Lyle Berman as director or employee (without
management responsibility) of such entities, or (ii) any stock ownership of
Lakes or Great Lakes in such entities; or (b) any entity because of the
investment banking services of Ron Kramer, a director of Lakes. References in
this section shall include such entity's successor, whether by merger,
acquisition or otherwise.

     Section 10.5. Assignment; Change of Control.


                                       39

<PAGE>

               (a) Great Lakes may not assign its rights under this Agreement
          without the Band's prior written consent, except that Great Lakes may
          assign its rights under such Agreement, but not its obligations, to a
          wholly owned subsidiary of Lakes. No such assignment shall affect or
          impair the obligations of Lakes under the Guaranty.

               (b) The Band may not assign its rights under this Agreement;
          except that the Band may, without the consent of Great Lakes, but
          subject to approval by the Secretary of the Interior or the Chairman
          of the NIGC or his authorized representative, if required, assign this
          Agreement and the assets of the Enterprise to a Corporate Commission
          or other instrumentality of the Band organized to conduct the business
          of the Project and the Enterprise for the Band that assumes all
          obligations herein. No assignment authorized hereunder shall be
          effective until all necessary governmental approvals have been
          obtained. No such assignment shall relieve the Band of any obligation
          hereunder, unless otherwise agreed by Great Lakes or the holder of
          such obligation.

               (c) The Band shall be entitled to terminate the Agreements if
          Lakes or Great Lakes undergoes a Change of Control or if Great Lakes
          ceases to be a wholly-owned subsidiary of Lakes, in each case without
          the prior written consent of the Band. The Band shall not be required
          to prepay any amounts advanced by Lakes or Great Lakes or any third
          party in the event of such termination, and such obligations shall
          remain payable in accordance with their payment terms. Lakes and Great
          Lakes each agree to notify the Band in writing within 30 days after
          the occurrence of any event described in Clauses I or II in the
          definition of Change of Control, and within 30 days of Lakes's or
          Great Lakes' knowledge of any event described in Clauses III or IV of
          that definition.

          "Change of Control," for purposes of this provision, means (I) the
          merger, consolidation or other business combination of Lakes or Great
          Lakes with, or acquisition of all or substantially all of the assets
          of Lakes or Great Lakes by, any other entity, except that (A) Great
          Lakes may merge with any other entity wholly owned by Lakes if the
          surviving entity assumes the obligations of Great Lakes under the
          Agreements, and (B) Lakes Gaming and Resorts, LLC may merge with any
          other entity wholly owned by Lakes if the surviving entity assumes the
          obligations of Lakes Gaming and Resorts, LLC under the Guaranty,
          provided that in each case Lakes shall remain liable under the
          Guaranty; (II) Lyle Berman's ceasing to be either Chief Executive
          Officer or Chairman of the Board of Lakes (other than on account of
          death or disability, and except as provided at the end of this
          definition); (III) the acquisition by any person or affiliated group
          of persons not presently a shareholder of Lakes of beneficial
          ownership of 30% or more in interest of the outstanding voting stock
          of Lakes, as determined under 17 CFR Sections 240.13d-3 or 240.16a-1;
          or (IV) the acquisition by any person or affiliated group of persons
          not presently a shareholder of Lakes of beneficial ownership of 10% or
          more in interest of the outstanding voting stock of Lakes, as
          determined under 17 CFR Sections 240.13d-3 or 240.16a-1, if a majority
          of the Board of Directors of Lakes


                                       40

<PAGE>

          is replaced within two years after such acquisition by directors not
          nominated and approved by the Board of Directors.

     Section 10.6. Restrictions on Collateral Development. Lakes and Great Lakes
each agree that for five years after execution of the Agreements or the Term of
the Agreements, whichever is greater, neither Lakes, Great Lakes nor any of
their present or future Insiders will directly or indirectly purchase any land
or operate, manage, develop or have any direct or indirect interest in any
commercial facilities or business venture located within 20 miles of the
Facility without the prior written consent of the Band.

                                   ARTICLE 11
                   REPRESENTATIONS, WARRANTIES, AND COVENANTS

     Section 11.1. Representations and Warranties of the Band. The Band
represents and warrants to Great Lakes as follows:

               (a) The Band's execution, delivery and performance of this
          Agreement, the Lakes Development Note, the Transition Loan Note, the
          Lakes Working Capital Advance Note, the Minimum Payments Note, the
          Lakes Facility Note, the Non-Gaming Acquisition Line of Credit, the
          Control Agreement, the Lakes Security Agreement and all other
          instruments and agreements executed in connection with this Agreement
          have been properly authorized by the Band and do not require further
          Band approval.

               (b) This Agreement, the Lakes Development Note, the Transition
          Loan Note, the Lakes Facility Note, the Lakes Working Capital Advance
          Note, the Minimum Payments Note, the Non-Gaming Acquisition Line of
          Credit, the Control Agreement, the Lakes Security Agreement and all
          other instruments and agreements executed in connection with this
          Agreement have been properly executed, and once approved in accordance
          with Legal Requirements constitute the Band's legal, valid and binding
          obligations, enforceable against the Band in accordance with their
          terms.

               (c) There are no actions, suits or proceedings, pending or
          threatened, against or affecting the Band before any court or
          governmental agency that relate to the Project, the Enterprise or any
          transaction contemplated by the Transaction Documents, except as
          disclosed on Exhibit L.

     Section 11.2. Band Covenants. The Band covenants and agrees as follows:

               (a) Promptly after the execution of this Agreement it will take
          the steps necessary to adopt and will adopt the Gaming Ordinance. The
          Gaming Ordinance will meet the requirements of IGRA and the applicable
          regulations under IGRA and be consistent with the provisions of this
          Agreement and the Management Agreement, and not adversely affect the
          rights of Great Lakes


                                       41

<PAGE>

          hereunder and thereunder. After adoption of the Gaming Ordinance the
          Band will establish a governmental authority to regulate gaming at the
          Gaming Site ("the Gaming Regulatory Authority" or "GRA"). The Band
          agrees to consult with Great Lakes concerning the terms of the Gaming
          Ordinance and any regulations adopted thereunder, but the final
          decision on those matters is in the Band's sole discretion.

               (b) After NIGC Approval the Band shall enter into the Bank Loan
          Agreement and the Equipment Loan Agreement and execute the Bank Note
          and the Equipment Note and related closing documentation, all subject
          to the terms provided in this Agreement and Great Lakes's performance
          of its obligations under this Agreement.

               (c) During the term of this Agreement and the Management
          Agreement, the Band shall enact no law impairing the obligations or
          contracts entered into in furtherance of the development,
          construction, operation and promotion of Gaming on the Gaming Site.
          Neither the Pokagon Council nor any committee, agency, board of any
          other official body, and no officer or official of the Band shall, by
          exercise of the police power or otherwise, act to modify, amend, or in
          any manner impair the obligations of contracts entered into by the
          Pokagon Council or the GRA or other parties in furtherance of the
          financing, development, construction, operation, or promotion of
          Gaming at the Gaming Site without the written consent of the
          non-tribal parties to such contracts.

               (d) The Band will waive sovereign immunity on the limited basis
          described in Article 14 with respect to the Loans, the Transition Loan
          and the Non-Gaming Land Acquisition Line of Credit.

               (e) This Agreement, the Management Agreement, the Lakes
          Development Note, the Transition Loan Note, the Lakes Facility Note,
          the Lakes Working Capital Advance Note, the Minimum Payments Note, the
          Non-Gaming Acquisition Line of Credit, the Control Agreement and the
          Security Agreement, and each other contract contemplated by this
          Agreement shall, once approved in accordance with Legal Requirements,
          be enforceable in accordance with their terms.

               (f) In its performance of this Agreement, the Band shall comply
          with all Legal Requirements.

               (g) The Band will not impose taxes on the revenues of the
          Facility or the management fee payable to Great Lakes, but reserves
          the right to otherwise impose usual and customary taxes and fees on
          transactions at or in connection with the Facility or on the
          Facility's employees, officers, directors, vendors and patrons. The
          Band shall be specifically permitted to impose (i) charges,
          assessments, fines or fees imposed by governmental entities of the
          Band which are reasonably related to the cost of Tribal governmental
          regulation of public


                                       42

<PAGE>

          health, safety or welfare, or the integrity of Tribal gaming
          operations, and (ii) other taxes, charges, assessments or fees imposed
          against the Enterprise or property of the Enterprise, or sales, use,
          excise, hotel occupancy and other similar taxes (excluding taxes,
          charges, assessments or fees against real or personal property of the
          Facility or on gaming revenues or earnings) of such types and
          percentage amounts not to exceed those imposed by any state or local
          government within the Restricted Territory.

               (h) The Band shall not act in any way whatsoever, directly or
          indirectly, to cause this Agreement to be amended, modified, canceled,
          or terminated, except pursuant to its express terms or with the
          consent of Great Lakes.

               (i) Notwithstanding the foregoing, a breach of this subsection
          11.2 shall not be a basis to overturn, negate or in any manner modify
          any Governmental Action through arbitration or other proceedings, and
          any remedy for such breach shall be subject to the Specific
          Performance Restriction. The preceding sentence does not prevent an
          arbitrator from determining that the taking of any Governmental Action
          or the failure to take any Governmental Action, which is not caused by
          a breach of Great Lakes or Lakes' obligations under the Agreements or
          the Guaranty, constitutes a breach of this Agreement by the Band,
          thereby resulting in liability on the part of the Band for damages in
          favor of the Manager as provided in this Agreement.

     Section 11.3. Representations and Warranties of Lakes and Great Lakes.
Lakes and Great Lakes each represent and warrant to the Band as follows:

               (a) Lakes' and Great Lakes' execution, delivery and performance
          of this Agreement, the Guaranty, and all other instruments and
          agreements executed in connection with this Agreement and the Guaranty
          have been properly authorized by Lakes and Great Lakes, respectively,
          to the extent they are parties thereto, and do not require further
          approval.

               (b) Each of this Agreement and all other instruments and
          agreements executed in connection with this Agreement has been
          properly executed and constitutes Lakes' and Great Lakes' respective
          legal, valid and binding obligation, enforceable against Lakes and
          Great Lakes in accordance with their terms to the extent they are
          parties thereto.

               (c) There are no actions, suits or proceedings pending or
          threatened against or affecting Lakes or Great Lakes before any court
          or governmental agency that would in any material way affect Lakes' or
          Great Lakes' ability to perform this Agreement and the Guaranty, to
          the extent they are parties thereto, other than litigation disclosed
          in filings by Lakes with the Securities and Exchange Commission. Lakes
          and Great Lakes each warrant that no litigation so disclosed in any
          material way affects or will affect Lakes' or Great Lakes' ability to
          perform under the Agreements and the Guaranty.


                                       43

<PAGE>

     Section 11.4. Covenants of Lakes and Great Lakes. Lakes and Great Lakes
each covenant and agree as follows:

               (a) Lakes and Great Lakes shall comply with all Legal
          Requirements in its performance of the Agreements and the Guaranty, to
          the extent they are parties thereto.

               (b) Great Lakes has and at all times during the Term shall have
          the financial capacity to pay to the Band all fees and payments and to
          make all advances and loans described in this Agreement.

               (c) Lakes and Great Lakes shall not act in any way whatsoever,
          directly or indirectly, to cause this Agreement to be amended,
          modified, canceled, or terminated, except pursuant to its express
          terms or with the consent of the Band.

               (d) Lakes' and Great Lakes' Internal Expenses shall not be paid
          by the Enterprise from revenues of the Enterprise or the proceeds of
          any Loan, but may be paid by Lakes and Great Lakes from Management
          Fees and loan repayments after they are received by Great Lakes. No
          officer or employee of Lakes or Great Lakes shall receive a salary or
          other payment from the Enterprise.

               (e) CRC shall not during the Term of the Management Agreement (i)
          be directly or indirectly affiliated with Lakes, Great Lakes or the
          Facility, whether as joint venturer or otherwise, (ii) be employed by
          Lakes or Great Lakes or, to the knowledge of Lakes or Great Lakes, any
          entity having any contractual relationship with Lakes or Great Lakes,
          with regard to the Facility, or (iii) directly or indirectly receive
          any payment or anything of value from Lakes or Great Lakes from or out
          of the Management Fee or any other payment made to Lakes or Great
          Lakes by the Band or the Facility. Lakes and Great Lakes each agree to
          indemnify the Band and its members and hold them harmless against all
          loss, liability and expense relating to claims, of whatever kind or
          nature, of CRC against any one or more of them. The Band consents to
          the execution and delivery by Lakes of a certain Conditional Release
          and Termination Agreement between Lakes and CRC dated May 20, 1999, as
          amended by Amendment dated July, 1, 1999, true copies of which are
          attached as Exhibit M, provided that CRC executes and delivers to the
          Band and its members a general release in the form attached as Exhibit
          N. Lakes and Great Lakes each warrants that it has no agreements or
          understandings with CRC in any way related to the Band or the
          Enterprise other than as set forth in Exhibit M. The Band further
          agrees that Lakes may hold stock of CRC as collateral for a Lakes'
          guarantee of a loan to a third party, provided that on default it
          proceeds to liquidate such collateral in a reasonably prompt and
          orderly manner, and that Lyle Berman may continue to hold
          approximately 350,000 shares of CRC so long as he plays no role in the
          management of, and does not sit on, the board of directors of CRC.


                                       44

<PAGE>

                                   ARTICLE 12
                                EVENTS OF DEFAULT

     Section 12.1. Events of Default by the Band. Great Lakes shall not be
obligated to pay any fees, provide the Bank Loan, the Lakes Facility Loan or the
Equipment Loan, make any advance on the Lakes Development Loan or the Lakes
Facility Loan, or otherwise perform its obligations under or pursuant to this
Agreement if a Band Event of Default, as defined below, has occurred and is
continuing on the date such fee payment, loan advance or performance would
otherwise be made. In addition, Great Lakes shall not be obligated to make any
loan advance to the Band pursuant to this Agreement unless and until Great Lakes
receives the duly authorized and executed Lakes Development Note and (to the
extent applicable) the Lakes Facility Note. Each of the following shall be a
"Band Event of Default":

               (a) The Band shall fail to pay when due the Lakes Development
          Note, the Transition Loan Note, the Non-Gaming Acquisition Line of
          Credit, the Lakes Facility Note, the Lakes Working Capital Advance
          Note, the Minimum Payments Note or any other indebtedness to Great
          Lakes, and such payment default has continued for thirty (30) days
          after Great Lakes gives the Band notice thereof.

               (b) The Band shall commit a Material Breach of any of the Band's
          obligations under this Agreement or any other Transaction Documents,
          subject to the rights to cure provided in this Agreement or in any
          such documents.

               (c) Any of the representations and warranties made by the Band in
          Section 11.1 of this Agreement or in any other Transaction Documents
          were not true in any material respect when made or would not be
          materially true if made on the date such performance would otherwise
          be due.

               (d) The Band violates the provisions of Article 10 of this
          Agreement.

               (e) The Band commits any Material Breach of the Management
          Agreement which is not cured within any applicable cure period.

               (f) The Band, through a vote of its Council at which a quorum is
          present prior to NIGC Approval, either expressly (i) repudiates the
          Management Agreement or the Development Agreement, or (ii) authorizes
          the Band, prior to terminating the Agreements in accordance with their
          terms or expiration of the Term, to enter into management or
          development agreements with a third party with regard to a Michigan
          casino.

          If any Band Event of Default occurs, Great Lakes may, upon written
          notice to Band, declare Great Lakes's commitment to make advances
          under this Agreement terminated and Great Lakes may exercise the
          rights and remedies available to Great Lakes provided in this
          Agreement; provided, however, that all such rights and remedies shall
          be Limited Recourse.


                                       45

<PAGE>

     Section 12.2. Events of Default by Lakes or Great Lakes. The Band shall not
be obligated to perform its obligations under or pursuant to this Agreement if a
Lakes Event of Default, as defined below, has occurred or if any of the
representations and warranties made by Lakes or Great Lakes in this Agreement
were not true when made or would not be true if made on the date such
performance would otherwise be due. Each of the following shall be a "Lakes
Event of Default":

               (a) Any Monthly Payment is not paid within ten (10) days after
          its due date.

               (b) Great Lakes shall fail to make any other payments (whether of
          fees, advances or loans) required by this Agreement, and such failure
          shall continue for ten (10) days after the Band gives Lakes written
          notice thereof.

               (c) Lakes or Great Lakes shall commit any other Material Breach
          any of Lakes's or Great Lakes' obligations under this Agreement, the
          Guaranty or any other Transaction Documents, as applicable.

               (d) Any representation or warranty that Lakes or Great Lakes has
          made under this Agreement or in any other Transaction Document shall
          prove to have been untrue in any material respect when made or would
          not be materially true if made on the date such performance would
          otherwise be due.

               (e) Lakes or Great Lakes violates the provisions of Article 10 of
          this Agreement, subject to rights of notice and cure to the extent
          provided in that Article.

               (f) Lakes (to the extent applicable) or Great Lakes commits or
          causes any Material Breach of the Management Agreement which is not
          cured within any applicable cure period.

               (g) NIGC Disapproval occurs.

          If any Lakes Event of Default occurs, the Band may, upon written
          notice to Great Lakes, exercise the rights and remedies available to
          the Band provided in this Agreement.

     Section 12.3. Material Breach; Right to Cure.

               (a) Neither Great Lakes nor the Band may terminate this
          Agreement, recover damages, foreclose on security interests or
          exercise any other remedy on grounds of a potential Material Breach of
          this Agreement or any other Transaction Document unless it has
          provided written notice to the other party of the occurrence of such
          breach by such party under the Transaction Documents. During the 30
          day period after the receipt of such notice (as to defaults which can
          be cured within 30 days) or the 90 day period after such receipt (as
          to defaults


                                       46

<PAGE>

          which cannot be cured within 30 days), whichever is applicable, the
          party receiving the notice may cure the alleged default and (without
          waiting for the expiration of such periods) any party may submit the
          matter to arbitration under the dispute resolution provisions of this
          Agreement set forth at Article 14. The discontinuance or correction of
          a Material Breach shall constitute a cure thereof. Nothing in this
          subsection shall affect or impair the obligation of any party to
          promptly comply with all Legal Requirements, or limit any sanctions
          that may be imposed for any violation thereof; nor shall this
          subsection prevent a party taking any other actions within such 30 or
          90 day periods as may be permitted or required by this Agreement, the
          Gaming Ordinance or NIGC regulations. The provisions of this
          subsection and the parallel provisions of Section 11.3 of the
          Management Agreement shall control over any conflicting provisions in
          any other Transaction Document.

               (b) Nothing in this subsection 12.3 shall apply to termination
          under Sections 13.1, 13.2, 13.6 or 13.7 of this Agreement.

                                   ARTICLE 13
                                   TERMINATION

     Section 13.1. Voluntary Termination. This Agreement may be terminated by
mutual written consent.

     Section 13.2. Termination if No NIGC Approval. The Band and Great Lakes may
each unilaterally terminate the Agreements by written notice if NIGC Approval
has not occurred on or before August 26, 2007.

     Section 13.3. Great Lakes Right to Terminate on Band Event of Default.
Great Lakes shall be entitled to terminate the Agreements (i) upon a Band Event
of Default or (ii) as specifically provided in the Agreements.

     Section 13.4. Band Right to Terminate on Lakes Event of Default. The Band
shall be entitled to terminate the Agreements (i) upon a Lakes Event of Default
or (ii) as specifically provided in the Agreements.

     Section 13.5. Band Right to Terminate for Material Adverse Change. Prior to
the Commencement Date, the Band shall be entitled to terminate the Agreements in
the event of a Material Adverse Change; provided that the following procedures
shall apply:

               (a) Great Lakes shall notify the Band promptly in the event of
          any Material Adverse Change, and in any event within 30 days after its
          occurrence.

               (b) Great Lakes shall cause Lakes to send to the Band copies of
          all filings by Lakes with the Securities and Exchange Commission under
          Forms 8K, 10Q and 10K; shall furnish the Band with copies of such
          other SEC filings that


                                       47

<PAGE>

          the Band may request; and shall furnish the Band with such other
          information concerning a Material Adverse Change as the Band may
          reasonably request.

               (c) If the Band believes that a Material Adverse Change has
          occurred, the Band shall so notify Lakes and Great Lakes in writing
          and shall request specified further assurances of their respective
          continued ability to perform under the Agreements, the Guaranty, and
          all related agreements and instruments.

               (d) Within thirty (30) days after that notification Great Lakes
          shall admit or deny, and shall cause Lakes, if applicable to admit or
          deny, the alleged Material Adverse Change, giving the specific basis
          for its response; shall state, and shall cause Lakes to state, whether
          they each agree to provide the requested further assurances; if they
          each agree to provide the requested further assurances, shall tender
          its performance in that regard; and, if it admits a Material Adverse
          Change but disputes the requested further assurances, shall tender
          such further assurances by it and Lakes as it deems sufficient to
          ensure their respective continued ability to perform under the
          Agreements, the Guaranty, and all related agreements and instruments.

               (e) If Lakes or Great Lakes denies the Material Adverse Change or
          disputes that the requested further assurances are reasonably required
          to assure the Band of their respective continued ability to perform
          under the Agreements, the Guaranty, and all related agreements and
          instruments, those issues shall be submitted to arbitration. The
          arbitrator shall determine whether (i) a Material Adverse Change has
          occurred; (ii) the requested further assurances are reasonably
          required to assure the Band of their respective continued ability to
          perform under the Agreements, the Guaranty, and all related agreements
          and instruments; and (iii) if a Material Adverse Change has occurred
          but the requested further assurances are not reasonably required to so
          assure the Band, what further assurances must be provided by Lakes and
          Great Lakes to reasonably assure the Band of their continued ability
          to perform under the Agreements, the Guaranty, and all related
          agreements and instruments. Any further assurances required under the
          arbitrator's award must be furnished by Lakes and Great Lakes within
          thirty (30) days after entry of the award.

               (f) If Lakes or Great Lakes admits the Material Adverse Change
          but does not furnish further assurances, or if Great Lakes or Lakes
          does not timely provide further assurances pursuant to an arbitrator's
          award, the Band may terminate the Agreements by written notice to
          Great Lakes.

               (g) Lakes, Great Lakes and the Band agree that the continuing
          ability of Great Lakes and Lakes to make the payments and advances
          provided under this Agreement, the Guaranty, and all related
          agreements and instruments, and to ensure the Band can obtain the
          Loans to develop, construct, equip and operate the Facility provided
          in this Agreement, is an essential part of the consideration for which
          the Band bargained in entering into the Agreements.


                                       48

<PAGE>

     Section 13.6. Termination on Buyout. This Agreement shall terminate if the
Band exercises its option to buy out the Management Agreement in accordance with
its terms.

     Section 13.7. Involuntary Termination Due to Changes in Legal Requirements.
It is the understanding and intention of the parties that the development,
construction and operation of the Enterprise shall conform to and comply with
all Legal Requirements. If during the term of this Agreement, the Enterprise or
any material aspect of Gaming at the Gaming Site is determined by the Congress
of the United States, Department of the Interior of the United States of
America, the NIGC, or the judgment of a court of competent jurisdiction (after
expiration of the time within which appeals must be filed or completion of
appeals, if any) to be unlawful under federal law, the obligations of the
parties hereto shall cease and the Agreements shall be of no further force and
effect as of the date of such determination; subject, however, to the following
provisions as to damages:

               (a) If the date of such determination is prior to the
          Commencement Date, Great Lakes shall be entitled to damages to the
          same extent as provided in Section 14.4 with regard to failure to
          obtain NIGC Approval.

               (b) If the date of such determination is after the Commencement
          Date:

               (i) The Band shall retain all fees and Monthly Payments
               previously paid or advanced to it pursuant to this Agreement, as
               well as all Tribal Distributions and Non-Gaming Lands, the Gaming
               Site and any other property transferred into trust;

               (ii) Any money loaned to the Band by Lakes or Great Lakes, or
               other obligations owed to Lakes or Great Lakes under the
               Transaction Documents as of the date of such determination shall
               be repaid to Great Lakes or Lakes in accordance with the Limited
               Recourse terms of the Lakes Development Note, the Lakes Facility
               Note, the Lakes Working Capital Advance Note, the Minimum
               Payments Note, the Transition Loan Note, the Non-Gaming
               Acquisition Line of Credit, this Agreement or any other
               applicable Transaction Documents; and

               (iii) The Band shall retain its interest in the title (and any
               lease) to all Enterprise assets, including the Gaming Site and
               any fixtures, supplies and Furnishings and Equipment (except as
               provided in subsection (iv)), subject to the purchase money
               security interest in Furnishings and Equipment securing the
               Equipment Loan, Great Lakes' security interest in the Dominion
               Account and the Furnishings and Equipment, if any (until all
               obligations of the Band to Great Lakes secured by that account
               and the Furnishings and Equipment are paid in full), and any
               other liens granted in accordance with the Development Agreement;
               and

               (iv) If (A) the Band determines that it can legally continue to
               operate portions of the Enterprise after the change in Legal
               Requirements without


                                       49

<PAGE>

               subjecting any related Furnishings and Equipment to forfeiture or
               seizure by any applicable governmental authority, and (B) it is
               Economically Feasible for the Band to continue such portions of
               the Enterprise and it elects to do so by written notice to Great
               Lakes within ninety (90) days after the occurrence of the change
               in Legal Requirements, then the Band shall have the right to
               continue to operate such portions of the Enterprise (and retain
               any Furnishings and Equipment used in connection with such
               portions of the Enterprise) so long as the same (x) remain
               Economically Feasible to operate, (y) any related Furnishings and
               Equipment shall remain free from any such forfeiture or seizure,
               and (z) are promptly and continually thereafter operated and
               maintained in accordance with reasonable industry standards. The
               Band and Great Lakes agree that any Furnishings and Equipment
               (together with any casualty insurance proceeds applicable
               thereto) related to (1) portions of the Enterprise that are not
               Economically Feasible for the Band to continue to operate, (2)
               would otherwise be subject to forfeiture or seizure as described
               above, or (3) with respect to any other portions of the
               Enterprise that the Band shall cease to continually operate
               (collectively, the "Surplus Equipment"), shall be promptly
               liquidated (subject to approvals as required under the Bank Loan
               Agreement and the Equipment Loan Agreement) in a commercially
               reasonable manner, and the Band shall pay the proceeds of such
               sale(s), to the extent permitted by any applicable subordination
               agreement, to Great Lakes on account of the Loans and other
               amounts owing to Great Lakes under the Transaction Documents.

     Section 13.8. Repair or Replacement. If the Facility is damaged, destroyed
or condemned so that continued development, construction or operation of Gaming
cannot be or can no longer be continued at the Facility, the Facility shall at
the Band's option be reconstructed if the insurance or condemnation proceeds,
together with any other funds available to the Band, are sufficient to restore
or replace the Facility to a condition at least comparable to that before the
casualty occurred or such other condition as Great Lakes and the Band may agree.
If the insurance proceeds, together with other funds available to the Band, are
not sufficient to so restore or replace the Facility or are not used to repair
the Facility, the Band shall, with the assistance of Great Lakes, adjust and
settle any and all claims for such insurance proceeds or condemnation awards,
and such proceeds or award and any undistributed Net Revenues pursuant to
Article 5 of the Management Agreement shall be applied first, as to proceeds or
awards relating to Furnishings and Equipment securing the Equipment Loan, to the
amounts due under the Equipment Loan; second, to the amounts due under the
Minimum Payments Note; third, to the Lakes Working Capital Advances, including
accrued interest; fourth, to the Band Working Capital Advances, including
accrued interest; fifth, to the amounts due under the Bank Loan; sixth, to any
remaining balance under the Equipment Loan and to any other third party
liabilities of the Enterprise to which Great Lakes has subordinated in writing;
seventh, to the Lakes Facility Loan; eighth, to the Lakes Development Loan; and
ninth, to the Band; but subject, in each case, to any applicable subordination
agreements. Any unpaid balance of the Lakes Development Loan, the Lakes Facility
Loan and the Lakes Working Capital Loan, after application of such proceeds,
shall be repaid as provided in Section 14.4 on failure to obtain NIGC Approval.


                                       50

<PAGE>

     Section 13.9. Recoupment and Setoff. Upon termination of this Agreement or
the Management Agreement any claim of Lakes or Great Lakes against the Band, or
of the Band against Lakes or Great Lakes, shall be subject to their respective
rights of recoupment and setoff, if any. The Band may recoup and set off against
Great Lakes any claims it may have against Lakes, and may recoup and set off
against Lakes any claims it may have against Great Lakes.

                                   ARTICLE 14
                     DISPUTE RESOLUTION; LIQUIDATED DAMAGES

     Section 14.1. Band's Waiver of Sovereign Immunity and Consent to Suit. The
Band expressly waives its sovereign immunity from suit for the purpose of
permitting or compelling arbitration as provided in this Article 14 and consents
to be sued in the United States District Court for the Western District of
Michigan - Southern Division, the United States Court of Appeals for the Sixth
Circuit, and the United States Supreme Court for the purpose of compelling
arbitration or enforcing any arbitration award or judgment arising out of this
Agreement, the Management Agreement, the Lakes Development Note, the Lakes
Facility Note, the Lakes Working Capital Advance Note, the Minimum Payments
Note, the Transition Loan Note, the Non-Gaming Acquisition Line of Credit, the
Control Agreement, the Security Agreement, any mortgages granted to Manager
securing the Lakes Development Note or the Non-Gaming Land Acquisition Line of
Credit, the Dominion Agreement, the Lakes Security Agreement, any other
Transaction Document or other obligations between the parties. If the United
States District Court lacks jurisdiction, the Band consents to be sued in the
Michigan State Court system for the same limited purpose. The Band waives any
requirement of exhaustion of tribal remedies. Without in any way limiting the
generality of the foregoing, the Band expressly authorizes any governmental
authorities who have the right and duty under applicable law to take any action
authorized or ordered by any such court, and to take such action, including
without limitation, repossessing or foreclosing on any real property not in
trust and or on equipment subject to a security interest or on the Dominion
Account, or otherwise giving effect to any judgment entered; provided, however,
that liability of the Band under any judgment shall always be Limited Recourse,
and in no instance shall any enforcement of any kind whatsoever be allowed by
Lakes or Great Lakes against any assets of the Band other than the limited
assets of the Band specified in Section 14.3(a) below. The Band appoints the
Chairman of the Pokagon Council and the Secretary of the Pokagon Council as its
agents for service of all process under or relating to the Agreements. The Band
agrees that service in hand or by certified mail, return receipt requested,
shall be effective for all purposes under or relating to the Agreements if
served on such agents.

     Section 14.2. Arbitration. All disputes, controversies or claims arising
out of or relating to this Agreement and the Lakes Development Note, the Lakes
Facility Note, the Lakes Working Capital Advance Note, the Minimum Payments
Note, the Transition Loan Note, the Non-Gaming Acquisition Line of Credit, the
Control Agreement, the Lakes Security Agreement, any other Transaction Document
or other obligations between Lakes or Great Lakes and the Band shall be settled
by binding arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association in effect on the date demand for
arbitration is made, and


                                       51

<PAGE>

the Federal Arbitration Act. The parties agree that binding arbitration shall be
the sole remedy as to all disputes arising out of this Agreement, except for
disputes requiring injunctive or declaratory relief. Notwithstanding the
foregoing, an arbitrator shall not have the power to compel, overturn, negate or
in any manner modify any Governmental Action, and any arbitration award or
related judicial decree or judgment shall be subject to the Specific Performance
Restriction. The preceding sentence does not prevent an arbitrator from
determining that the taking of any Governmental Action or the failure to take
any Governmental Action, which is not caused by a breach of Great Lakes or
Lakes' obligations under the Agreements or the Guaranty, constitutes a breach of
this Agreement by the Band or the impairment of rights of Great Lakes under this
Agreement, thereby resulting in liability on the part of the Band for damages in
favor of the Manager as provided in this Agreement and enforcement of the
obligations of the Band to Great Lakes, including any security agreements and
collateral instruments, in accordance with their terms.

               (a) Choice of Law. In determining any matter the Arbitrator(s)
          shall apply the terms of this Agreement, without adding to, modifying
          or changing the terms in any respect, and shall apply Michigan law.

               (b) Place of Hearing. All arbitration hearings shall be held at a
          place designated by the arbitrator(s) in Kalamazoo, Michigan or at
          such other place agreed to by the parties.

               (c) Confidentiality. The parties and the arbitrator(s) shall
          maintain strict confidentiality with respect to the arbitration.

     Section 14.3. Limitation of Actions. The Band's waiver of immunity from
suit is specifically limited to the following actions and judicial remedies:

               (a) Damages. The enforcement of an award of money and/or damages
          by arbitration; provided that the award of any arbitrator and/or court
          must be Limited Recourse, and no arbitrator or court shall have
          authority or jurisdiction to order execution against any assets or
          revenues of the Band except (i) undistributed or future Net Revenues
          of the Enterprise or Subsequent Gaming Facility Revenues; (ii) as to
          the Equipment Loan, the Furnishings and Equipment securing that Loan;
          (iii) if the Commencement Date does not occur, Subsequent Gaming
          Facility Revenues to the extent provided in this Agreement; (iv) as to
          the Lakes Development Note and the Non-Gaming Acquisition Line of
          Credit, mortgages on the Gaming Site and Non-Gaming Lands prior to
          their transfer into trust; (v) after the Commencement Date occurs,
          funds on deposit in the Dominion Account to the extent provided in
          Section 9.2.1(j) of this Agreement and the Dominion Agreement, or in
          any other dominion agreement executed by the Band; and (vi) as to the
          Lakes Development Note, the Lakes Facility Note, the Lakes Working
          Capital Advance Note, the Non-Gaming Land Acquisition Line of Credit
          and the Transition Loan, Furnishings and Fixtures to the extent
          provided in Section 9.2.1(j) of this Agreement. In no instance shall
          any enforcement of any kind whatsoever be allowed by Lakes or Great
          Lakes against any assets of the Band other than the limited assets of
          the Band specified in this subsection.


                                       52

<PAGE>

               (b) Consents and Approvals. The enforcement of a determination by
          an arbitrator that the Band's consent or approval has been
          unreasonably withheld contrary to the terms of this Agreement or any
          other Transaction Document, provided that such enforcement shall be
          subject to the Specific Performance Restriction.

               (c) Injunctive Relief and Specific Performance. The enforcement
          of a determination by an arbitrator that prohibits the Band from
          taking any action that would prevent Great Lakes from performing its
          obligations pursuant to the terms of this Agreement or any other
          Transaction Document, or that requires the Band to specifically
          perform any obligation under this Agreement; provided, however, that
          any injunction against the Band shall be Limited Recourse; shall be
          subject to the Specific Performance Restriction; shall not mandate,
          preclude or affect payment of any funds of the Band other than
          undistributed or future Net Revenues of the Enterprise, funds in the
          Dominion Account or Subsequent Gaming Facility Revenues; and shall not
          relate to any asset of the Band other than the Enterprise.

               (d) Action to Compel Arbitration. An action to compel arbitration
          pursuant to this Article 14.

     Section 14.4. Damages on Termination for Failure to Obtain NIGC Approval.
In the event of termination of this Agreement under Section 13.2 because NIGC
Approval has not been obtained on or before August 26, 2007, (a) the Band shall
be obligated to repay Great Lakes all amounts loaned to the Band by, or owed by
the Band to, Lakes or Great Lakes under or pursuant to this Agreement or any
other Transaction Document (excluding fees under the Management Agreement), but
not fees or non-refundable payments designated as such under this Agreement or
any Transaction Document; provided that such repayment shall be made only out of
distributions to the Band from Subsequent Gaming Facility Revenues, and shall be
paid in 60 equal monthly installments of principal and interest beginning one
month after opening of such a facility; and (b) the Band shall promptly sell all
Furnishings and Equipment in a commercially reasonable manner and shall pay the
proceeds of such sale to Great Lakes on account of the obligations owing to
Great Lakes described above in this Section 14.4. To secure the Band's
obligation under subsection 14.4(a), Great Lakes shall retain its mortgages, if
any, on property of the Band not transferred into trust, and may foreclose such
mortgages (subject to the arbitration provisions of this Article 14) if the Band
fails to perform as provided in that subsection; and to secure the Band's
obligation under subsection 14.4(b), Great Lakes shall retain its security
interest in Furnishings and Equipment. Great Lakes may foreclose such security
interest (subject to such arbitration provisions, and without accelerating the
Lakes Development Loan) if the Band fails to perform as provided in subsection
(b), and shall apply the proceeds of such foreclosure to the obligations owing
to Great Lakes under the Transaction Documents. Such payments and collateral
shall be Great Lakes's sole remedy and recourse in the event of termination of
this Agreement under Section 13.2. In no event shall Great Lakes have recourse
in the event of such termination to (i) assets purchased by the Band with funds
advanced by Lakes or Great Lakes, except as collateral to the extent provided in
this subsection; (ii) assets of any other gaming facility owned or operated by
the Band, other than Subsequent Gaming Facility


                                       53

<PAGE>

Revenues; or (iii) any other asset of the Band.

     Section 14.5. Liquidated Damages and Limitations on Remedies. The following
liquidated damages and limitations on remedies apply under this Agreement, in
addition to those provided elsewhere in this Agreement as to claims and remedies
against the Band:

               (a) Liquidated Damages Payable by Great Lakes. In the event of a
          Lakes Event of Default prior to the Commencement Date, after such
          notice and right to cure as may be provided in this Agreement, Great
          Lakes shall: (i) forfeit to the Band all amounts in the Account as of
          the default; (ii) pay the Band an amount equal to the sum of (x) the
          aggregate Monthly Payments payable under Section 8.1(c) over the
          balance of the 5-year Term, as if the Agreements had not been
          terminated, and (y) the Accrued Expenses; (iii) release all claims
          against the Band, including without limitation all amounts owed by the
          Band to Lakes or Great Lakes under or related to the Agreements and
          all rights under the Agreements, and discharge all mortgage and
          security interests on assets of the Band; (iv) transfer to the Band,
          at the Band's discretion and without payment of any consideration, any
          and all options and interests in real property in Michigan held by
          Lakes or Great Lakes; and (v) deliver to the Band all documents and
          work product in the possession or control of Great Lakes, Lakes or
          their agents related to the proposed Facility, the Gaming Site and the
          Non-Gaming Lands. Lakes shall join in the release, transfer and
          delivery under subsections (iii), (iv) and (v), and Lakes and Great
          Lakes each agree to execute and deliver such release, discharges and
          transfer instruments, and to deliver such work product and documents,
          at the time of payment of liquidated damages.

               (b) Liquidated Damages Payable by the Band. Except as provided in
          Section 14.10 as to Governmental Actions, in the event of a Band Event
          of Default prior to the Commencement Date, after such notice and right
          to cure as may be provided in this Agreement, the Band shall if
          requested by Great Lakes: (i) pay Great Lakes all amounts loaned to
          the Band by, or owing by the Band to, Lakes or Great Lakes under this
          Agreement or any other Transaction Documents (excluding fees under the
          Management Agreement), but not fees or nonrefundable payments
          designated as such under this Agreement or any other Transaction
          Document, less the Band's right of offset, if any; such damages to be
          payable only out of Subsequent Gaming Facility Revenues on the same
          terms and with the same limitations on recourse as are provided in
          Section 14.4 with regard to damages payable by the Band under that
          subsection; (ii) release any interest in the funds in the Account,
          which shall be released to Great Lakes; (iii) transfer to Great Lakes
          all options and land (other than land held in trust) acquired by the
          Band through funds advanced by Lakes (or, failing such transfer, Great
          Lakes may foreclose on any mortgages it holds on such options or land
          not held in trust); provided that the amount of any damages payable to
          Great Lakes shall be reduced by the amount paid for any options or
          land transferred by the Band to Great Lakes; and (iv) permit Great
          Lakes to foreclose on its security interest in Furnishings and
          Equipment (subject to the terms of any intercreditor agreement between
          Great Lakes and any Bank Lender or Equipment Lender).


                                       54

<PAGE>

               (c) Limitation on Great Lakes Remedies. If the Band Event of
          Default shall occur after the Commencement Date, Great Lakes rights
          with respect to foreclosing upon any Furnishings and Equipment shall
          be subject to the following rights of the Band: If (i) the Band
          determines that it can legally continue to operate all or any portions
          of the Enterprise after the occurrence of a Band Event of Default
          without subjecting any related Furnishings and Equipment to forfeiture
          or seizure by any applicable governmental authority, and (ii) it is
          Economically Feasible for the Band to continue such portions of the
          Enterprise and it elects to do so by written notice to Great Lakes
          within ninety (90) days after the occurrence of the Band Event of
          Default, then the Band shall have the right to continue to operate
          such portions of the Enterprise (and retain any Furnishings and
          Equipment used in connection with such portions of the Enterprise) so
          long as the same (x) remain Economically Feasible to operate, (y) any
          related Furnishings and Equipment shall remain free from any such
          forfeiture or seizure, and (z) are promptly and continually thereafter
          operated and maintained in accordance with reasonable industry
          standards. The Band and Great Lakes agree that any Furnishings and
          Equipment (together with any casualty insurance proceeds applicable
          thereto) related to (1) portions of the Enterprise that are not
          Economically Feasible for the Band to continue to operate, (2) would
          otherwise be subject to forfeiture or seizure as described above, or
          (3) with respect to any other portions of the Enterprise that the Band
          shall cease to continually operate (collectively, the "Surplus
          Equipment"), shall be promptly liquidated (subject to approvals as
          required under the Bank Loan Agreement and the Equipment Loan
          Agreement) in a commercially reasonable manner, and the Band shall pay
          the proceeds of such sale(s) (to the extent permitted by any
          applicable subordination agreements) to Great Lakes on account of the
          Loans and other amounts owing to Great Lakes under the Transaction
          Documents.

     Section 14.6. Lakes' and Great Lakes' Continuing Obligations. Nothing in
this Article shall affect or impair Lakes' and Great Lakes' continuing
obligations under Sections 10.4 (non-competition) and 15.13 (confidentiality) of
this Agreement, which shall remain enforceable for the following terms,
notwithstanding the termination of the Agreements and payment of liquidated or
other damages: (i) as to Section 10.4, the greater of five years after execution
of the Agreements or one year after termination; and (ii) as to Section 15.13,
the greater of five years after execution of the Agreements or two years after
termination.

     Section 14.7. Termination of Exclusivity. Section 10.2 (Exclusivity in
Michigan) of this Agreement shall terminate upon any termination of the
Agreements, notwithstanding any breach of the Agreements by the Band.

     Section 14.8. Remedies. In consideration of the agreement to liquidated
damages to the extent provided above, the Band, Lakes and Great Lakes each waive
the right to (i) actual and consequential damages (except as provided in Section
14.10) and (ii) exemplary or punitive damages to the extent that liquidated
damages are applicable to a default, but shall retain the right to injunctive
relief (x) prior to termination of the Agreements, to enforce rights and
remedies thereunder, subject to the Limited Recourse provisions of this
Agreement as to the Band and the


                                       55

<PAGE>

Band's limited waiver of sovereign immunity; and (y) after termination, to the
extent that provisions of this Agreement specifically survive such termination,
subject to such Limited Recourse provisions and limited waiver. The injured
party shall, where liquidated damages are not applicable and damages or remedies
are not otherwise specified, be entitled to such damages as it may be entitled
to under applicable law, subject to such Limited Recourse provisions and limited
waiver of the Band's sovereign immunity (which shall apply to all claims against
the Band under or relating to the Agreements, in addition to all Loans).

     Section 14.9. Fees not Damages. In no event shall fees or other
non-refundable payments or Tribal Distributions made by Lakes or Great Lakes to
Band constitute damages to Lakes or Great Lakes or be repayable by the Band.

     Section 14.10. Damages for Governmental Action. If the Band takes a
Governmental Action or fails to take a Governmental Action, and such action or
inaction is not caused by a breach of Great Lakes or Lakes' obligations under
the Agreements or the Guaranty and constitutes a breach of this Agreement by the
Band or the impairment of rights of Great Lakes under this Agreement or the
other Transaction Documents, the Band shall be liable for any resulting actual
and consequential damages incurred by Great Lakes (subject to the Limited
Recourse provisions of this Agreement and the limited waiver of the Band's
sovereign immunity).

                                   ARTICLE 15
                                     GENERAL

     Section 15.1. Nature of Agreement. This Agreement is not intended as and
shall not be construed as a "management agreement" within the meaning of the
IGRA.

     Section 15.2. Great Lakes's Interest. Nothing contained herein grants or is
intended (a) to grant Great Lakes a titled interest to the Facility, or (b) in
any way to impair the Band's sole proprietary interest in the Facility.

     Section 15.3. Situs of the Agreement. This Agreement, the Lakes Development
Note, the Lakes Facility Note, the Lakes Working Capital Advance Note, the
Minimum Payments Note, the Transition Note and the Non-Gaming Land Acquisition
Line of Credit shall be deemed entered into in Michigan.

     Section 15.4. Notice. Any notice required to be given pursuant to this
Agreement shall be delivered to the appropriate party by Certified Mail Return
Receipt Requested or by overnight mail or courier service, to the following
addresses:

     If to the Band:

     Pokagon Band of Potawatomi Indians
     58620 Sink Road


                                       56

<PAGE>

     Dowagiac, MI 49047
     Attn: Chairman, Tribal Council

     with a copy to:

     Michael Phelan, General Counsel
     Pokagon Band of Potawatomi Indians
     P.O. Box 180
     Dowagiac, MI 49407

     and

     Daniel Amory, Esq.
     Drummond Woodsum & MacMahon
     P.O. Box 9781
     Portland, ME 04104-5081

     If to Great Lakes or to Lakes:

     Great Lakes Gaming of Michigan LLC
     Lakes Gaming, Inc.
     130 Cheshire Lane
     Minnetonka, MN 55305

     with a copy to:

     Kevin Quigley, Esq.
     Hamilton Quigley Twait & Foley, PLC
     First National Bank Building
     Suite W1450
     332 Minnesota Street
     Saint Paul, MN 55101-1314

     and to:

     Neil Sell, Esq.
     Maslon Edelman Borman & Brand, LLP
     3300 Wells Fargo Center
     90 South Seventh Street
     Minneapolis, MN 55402

or to such other different address(es) as Lakes, Great Lakes or the Band may
specify in writing. Any such notice shall be deemed given three days following
deposit in the United States mail, one day following delivery to a courier
service or upon actual delivery or upon actual delivery, whichever first occurs.


                                       57

<PAGE>

     Section 15.5. Relationship. Great Lakes, Lakes and the Band shall not be
construed as joint venturers or partners of each other by reason of this
Agreement and neither shall have the power to bind or obligate the other except
as set forth in this Agreement.

     Section 15.6. Further Actions. The Band, Lakes and Great Lakes agree to
execute or cause to be executed all contracts, agreements and documents and to
take all actions reasonably necessary to comply with the provisions of this
Agreement and the intent hereof.

     Section 15.7. Waivers. No failure or delay by Great Lakes, Lakes or the
Band to insist upon the strict performance of any covenant, agreement, term or
condition of this Agreement, or to exercise any right or remedy consequent upon
the breach thereof, shall constitute a waiver of any such breach or any
subsequent breach of such covenant, agreement, term of condition. No covenant,
agreement, term or condition of this Agreement and no breach thereof shall be
waived, altered or modified except by written instrument. No waiver of any
breach shall affect or alter this Agreement, but each and every covenant,
agreement, term and condition of this Agreement shall continue in full force and
effect with respect to any other then existing or subsequent breach thereof.

     Section 15.8. Captions. The captions of each article, section and
subsection contained in this Agreement are for ease of reference only and shall
not affect the interpretational meaning of this Agreement.

     Section 15.9. Third Party Beneficiary. This Agreement is exclusively for
the benefit of the parties hereto and it may not be enforced by any party other
than the parties to this Agreement and shall not give rise to liability to any
third party other than the authorized successors and assigns of the parties
hereto.

     Section 15.10. Survival of Covenants. Any covenant, term or provision of
this Agreement which, in order to be effective, must survive the termination of
this Agreement, shall survive any such termination.

     Section 15.11. Estoppel Certificate. Great Lakes and the Band agree to
furnish to the other party, from time to time upon request, an estoppel
certificate in such reasonable form as the requesting party may request stating
whether there have been any defaults under this Agreement known to the party
furnishing the estoppel certificate.

     Section 15.12. Periods of Time; Time of the Essence. Whenever any
determination is to be made or action is to be taken on a date specified in this
Agreement, if such date shall fall on a Saturday, Sunday or legal holiday under
the laws of the Band or the State of Michigan, then in such event said date
shall be extended to the next day which is not a Saturday, Sunday or legal
holiday. Time is of the essence.

     Section 15.13. Confidential and Proprietary Information. Lakes, Great Lakes
and the Band each agree that any information received concerning the other party
during the performance of this Agreement, regarding the parties' organization,
financial matters, marketing and development plans for the Enterprise, the
Gaming Site, or other information of a proprietary nature (the "Confidential
Information") will be treated by both parties in full confidence except


                                       58

<PAGE>

for such public disclosure as may be required to allow Lakes, Great Lakes and
the Band to perform their respective covenants and obligations hereunder, or in
response to legal process, and will not be revealed to any other persons, firms
or organizations. This provision shall survive the termination of this Agreement
as provided in Section 14.6. The obligations not to use or disclose the
Confidential Information shall not apply to Confidential Information (i) which
has been made previously available to the public by the Band, Lakes or Great
Lakes, or becomes generally available to the public, unless the Confidential
Information being made available to the public results in a breach of this
Agreement; (ii) which prior to disclosure to the Band, Lakes or Great Lakes was
already rightfully in any such persons' possession; (iii) which is obtained by
the Band, Lakes or Great Lakes from a third party who is lawfully in possession
of such Information, and not in violation of any contractual, legal or fiduciary
obligation to the Band, Lakes or Great Lakes, with respect to such Confidential
Information and who does not require the Band, Lakes or Great Lakes to refrain
from disclosing such Confidential Information to others; or (iv) by the Band, if
such Information pertains to the Gaming Site or the Enterprise, in connection
with the Band's development, construction and operation of a gaming facility
after termination of the Agreements.

     Section 15.14. Government Savings Clause. Lakes, Great Lakes and the Band
each agree to execute, deliver and, if necessary, record any and all additional
instruments, certifications, amendments, modifications and other documents as
may be required by the United States Department of the Interior, Bureau of
Indian Affairs, the office of the field Solicitor, the NIGC, or any applicable
statute, rule or regulation in order to effectuate, complete, perfect, continue
or preserve the respective rights, obligations, liens and interests of the
parties hereto to the fullest extent permitted by law; provided, that any such
additional instrument, certification, amendment, modification or other document
shall not materially change the respective rights, remedies or obligations of
the Band, Lakes or Great Lakes under this Agreement, the Guaranty, or any other
agreement or document related hereto.

     Section 15.15. Successors and Assigns. The benefits and obligations of this
Agreement shall inure to and be binding upon the parties hereto and their
respective permitted successors and assigns.

     Section 15.16. Severability. If any provision, or any portion of any
provision, of this Agreement is found to be invalid or unenforceable, such
unenforceable provision, or unenforceable portion of such provision, shall be
deemed severed from the remainder of this Agreement and shall not cause the
invalidity or unenforceability of the remainder of this Agreement. If any
provision, or any portion of any provision, of this Agreement is deemed invalid
due to its scope or breadth, such provision shall be deemed valid to the extent
of the scope or breadth permitted by law.

     Section 15.17. Entire Agreement.

          15.17.1. This Agreement and the Transaction Documents (excluding the
          Management Agreement) are the entire agreement between Great Lakes,
          Lakes and the Band relating to development of the Project and
          supersedes all prior development agreements and understandings,
          whether written or oral, between or among the Band, Lakes and Great
          Lakes. The Management Agreement does not


                                       59

<PAGE>

          constitute a part of this Agreement

          15.17.2. Collateral agreements between or among the Band, Lakes and
          Great Lakes consist of the following documents:

          a.   Second Amended and Restated Lakes Development Note dated as of
               December 22, 2004;

          b.   Second Amended and Restated Transition Loan Note dated as of
               December 22, 2004;

          c.   Second Amended and Restated Non-Gaming Land Acquisition Line of
               Credit dated as of December 22, 2004;

          d.   Account Control Agreement, as amended by Amendment dated as of
               October 16, 2000 and by Second Amendment dated as of December 22,
               2004;

          e.   Pledge and Security Agreement, as amended by Amendment dated as
               of October 16, 2000 and by Second Amendment dated as of December
               22, 2004;

          f.   First Amended Assignment and Assumption Agreement dated as of
               December 22, 2004;

          g.   First Amended Unlimited Guaranty dated as of December 22, 2004;

          h    Lakes Facility Note dated as of December 22, 2004;

          i.   Lakes Working Capital Advance Note dated as of December 22, 2004;

          j.   Lakes Minimum Payments Note dated as of December 22, 2004;

          k.   Security Agreement dated as of December 22, 2004;

          l.   Form of Dominion Agreement;

          m.   Indemnity Agreement from the Band to Great Lakes (as assignee of
               Lakes) dated as of March 9, 2000, as amended by First Amended and
               Restated Indemnity Agreement dated February 28, 2001 and Second
               Amended and Restated Indemnity Agreement dated as of December 22,
               2004;

          n.   Reaffirmation of Guarantees and Mortgages dated as of December
               22, 2004, together with the Band Designee Guarantees and the Band
               Designee Mortgages referenced therein;


                                       60

<PAGE>

     All such collateral agreements supersede all other prior collateral
     agreements and understandings, written or oral between the parties. All
     prior and contemporaneous conversations, discussions, negotiations,
     possible and alleged agreements and representations, covenants and
     warranties with respect to the subject matter hereof, including without
     limitation the Term Sheet agreed to by Lakes and the Band dated June 18,
     1999, are waived, merged herein and superseded hereby. Lakes, Great Lakes
     and the Band each affirmatively represents that no promises have been made
     to that party which are not contained in this Agreement, the Management
     Agreement, or any other Transaction Documents and documents referred to
     herein and therein, and stipulates that no evidence of any promises not
     contained in this Agreement, the Management Agreement, or any other
     Transaction Documents shall be admitted into evidence on their behalf. This
     Agreement shall not be supplemented, amended or modified by any course of
     dealing, course of performance or uses of trade and may only be amended or
     modified by a written instrument duly executed by officers of all parties.

     Section 15.18. Consents.

               (a) Band. Where approval or consent or other action of the Band
          is required, such approval shall mean the written approval of the
          Pokagon Council evidenced by a resolution thereof, certified by a Band
          official as having been duly adopted, or such other person or entity
          designated by resolution of the Pokagon Council. Any such approval,
          consent or action shall not be unreasonably withheld or delayed;
          provided that the foregoing does not apply where a specific provision
          of this Agreement allows the Band an absolute or unilateral right to
          deny approval or consent or withhold action.

               (b) Manager. Where approval or consent or other action of Manager
          is required, such approval shall mean the written approval of the
          Managing Officer. Any such approval, consent or other action shall not
          be unreasonably withheld or delayed.

               (c) Business Board. Where approval or consent or other action of
          the Business Board is required, any such approval, consent or other
          action shall not be unreasonably delayed.

     Section 15.19. [intentionally omitted]

     Section 15.20. Limited Joinder.

               (a) Lakes Entertainment, Inc. and Lakes Gaming and Resorts, LLC
          each join in this Agreement for the limited purpose of agreeing to be
          bound by the provisions of this Agreement specifically applicable to
          them, as well as the provisions of Articles 13, 14 and 15 (as they
          pertain to such provisions of continuing applicability to them). In
          addition, Lakes Entertainment, Inc. shall have the benefit of any
          rights and remedies it had prior to the execution of the Assignment
          and Assumption Agreement under the following sections of this
          Agreement: 10.3, 11.2, 12.3, 13.5 and 14.8 (as to remedies for claims
          for breach


                                       61

<PAGE>

          of its retained rights under this subsection), 15.4, 15.5, 15.6, 15.9,
          15.12, 15.13, 15.14, 15.15 and 15.17.

               (b) Sections 10(a) and 10(c) of the Assignment and Assumption
          Agreement are superseded by this Agreement and the Second Amended and
          Restated Management Agreement and are no longer in effect.

                 [balance of this page intentionally left blank]


                                       62

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

The Pokagon Band of Potawatomi          Great Lakes Gaming of Michigan, LLC
Indians


By: /s/ John Miller                     By:  /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Its Council Chairman                    Its: President
                                             -----------------------------------


By: /s/ Dan Rapp                        Lakes Entertainment, Inc.
    ---------------------------------
Its Secretary
                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Its: President
                                             -----------------------------------


                                        Lakes Gaming and Resorts, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Its: President
                                             -----------------------------------


                                       63

<PAGE>

                                    EXHIBIT A

                SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT

                          [SEE CLOSING AGENDA: ITEM 15]


                                       64

<PAGE>

                                    EXHIBIT B

                      SECOND AMENDMENT TO CONTROL AGREEMENT

                          [SEE CLOSING AGENDA: ITEM 16]


                                       65

<PAGE>

                                    EXHIBIT C

                       FORM OF DOMINION ACCOUNT AGREEMENT

                          [SEE CLOSING AGENDA: ITEM 3]


                                       66

<PAGE>

                                    EXHIBIT D

                           DESCRIPTION OF GAMING SITE

THAT PART OF SECTION 14, THE SOUTHEAST QUARTER OF SECTION 11, THE WEST HALF OF
SECTION 13 AND THE SOUTHEAST QUARTER OF SECTION 15, TOWNSHIP 8 SOUTH, RANGE 21
WEST, NEW BUFFALO TOWNSHIP, BERRIEN COUNTY, MICHIGAN, DESCRIBED AS: BEGINNING AT
THE SOUTH QUARTER CORNER OF SAID SECTION 14; THENCE WEST ON THE SOUTH LINE OF
SAID SECTION 14 A DISTANCE OF 1997.12 FEET; THENCE NORTH 00 degrees 01' 30" EAST
ON THE EAST LINE EXTENDED OF "ASSESSOR'S PLAT OF PLUTA ACRES", BEING A
SUBDIVISION IN THE SOUTHWEST QUARTER OF SAID SECTION 14 A DISTANCE OF 40.00 FEET
TO THE SOUTHEAST CORNER OF SAID SUBDIVISION; THENCE WEST (PLATTED NORTH 89
degrees 54' 20" WEST) ON THE SOUTH LINE OF SAID SUBDIVISION AND PARALLEL WITH
SAID SOUTH SECTION LINE 632.62 FEET (PLATTED 632.51 FEET) TO THE SOUTHWEST
CORNER OF SAID SUBDIVISION; THENCE NORTH 00 degrees 04' 15" WEST (PLATTED NORTH
00 degrees 01' 40" EAST) ON THE WEST LINE OF SAID SUBDIVISION AND PARALLEL WITH
THE LINE COMMON TO SAID SECTIONS 14 AND 15 A DISTANCE OF 620.00 FEET TO THE
NORTHWEST CORNER OF SAID SUBDIVISION; THENCE WEST ON THE NORTH LINE EXTENDED OF
SAID SUBDIVISION 33.00 FEET TO THE LINE COMMON TO SAID SECTIONS 14 AND 15;
THENCE SOUTH 00 degrees 04' 15" EAST ON SAID COMMON SECTION LINE 59.49 FEET;
THENCE NORTH 89 degrees 46' 01" WEST PARALLEL WITH THE SOUTH LINE OF THE
NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 15 A DISTANCE OF
488.78 FEET TO THE EASTERLY RIGHT OF WAY LINE OF INTERSTATE 94 RAMP "D"; THENCE
NORTHWESTERLY 65.22 FEET ON A 2789.79 FOOT RADIUS CURVE TO THE RIGHT WHOSE CHORD
BEARS NORTH 24 degrees 09' 32" WEST 65.22 FEET; THENCE NORTH 23 degrees 29' 22"
WEST 222.46 FEET; THENCE NORTHERLY 152.93 FEET ON A 155.00 FOOT RADIUS CURVE TO
THE RIGHT WHOSE CHORD BEARS NORTH 04 degrees 46' 33" EAST 146.80 FEET; THENCE
NORTH 33 degrees 02' 28" EAST 201.91 FEET; THENCE NORTHERLY 423.07 FEET ON A
505.00 FOOT RADIUS CURVE TO THE LEFT WHOSE CHORD BEARS NORTH 09 degrees 02' 28"
EAST 410.81 FEET; THENCE NORTH 14 degrees 57' 32" WEST 180.69 FEET; THENCE
NORTHEASTERLY 466.00 FEET ON A 445.00 FOOT RADIUS CURVE TO THE RIGHT WHOSE CHORD
BEARS NORTH 15 degrees 02' 28" EAST 445.00 FEET; THENCE NORTH 45 degrees 02' 28"
EAST 201.89 FEET ALL ON SAID EASTERLY RIGHT OF WAY LINE OF INTERSTATE 94 RAMP
"D"; THENCE NORTH 42 degrees 09' 28" EAST ON THE EASTERLY RIGHT OF WAY LINE OF
INTERSTATE 94 A DISTANCE OF 426.11 FEET TO THE EAST AND WEST QUARTER LINE OF
SAID SECTION 14; THENCE NORTH 89 degrees 47' 21" EAST ON SAID EAST AND WEST
QUARTER LINE AND ON SAID EASTERLY RIGHT OF WAY LINE 131.67 FEET; THENCE
NORTHEASTERLY 1721.44 FEET ON A 11662.20 FOOT RADIUS CURVE TO THE LEFT WHOSE
CHORD BEARS NORTH 42 degrees 45' 47" EAST 1719.87 FEET; THENCE NORTH 40 degrees
12' 25" EAST 529.13 FEET; THENCE SOUTH 84 degrees 48' 44" EAST 258.15 FEET;
THENCE NORTH 34 degrees 34' 39" EAST 302.96 FEET; THENCE NORTH 85 degrees 51'
09" EAST 172.54 FEET; THENCE NORTH 32 degrees 07' 05" EAST 883.38 FEET ALL ON
SAID EASTERLY


                                       67

<PAGE>

RIGHT OF WAY LINE OF INTERSTATE 94 TO THE LINE COMMON TO SECTIONS 11 AND 14;
THENCE NORTH 89 degrees 39' 40" EAST ON SAID COMMON SECTION LINE 1200.02 FEET TO
THE WEST LINE OF THE EAST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 11;
THENCE NORTH 00 degrees 16' 16" EAST ON SAID WEST LINE 870.83 FEET TO THE
CENTERLINE OF MAUDLIN ROAD; THENCE SOUTH 59 degrees 44' 03" EAST ON SAID
CENTERLINE 250.96 FEET; THENCE SOUTH 00 degrees 16' 16" WEST PARALLEL WITH SAID
WEST LINE 743.06 FEET TO THE LINE COMMON TO SAID SECTIONS 11 AND 14; THENCE
NORTH 89 degrees 39' 40" EAST ON SAID COMMON SECTION LINE 1105.81 FEET TO THE
CORNER COMMON TO SECTIONS 11, 12, 13 AND 14; THENCE SOUTH 89 degrees 58' 52"
EAST ON THE NORTH LINE OF SAID SECTION 13 A DISTANCE OF 1321.09 FEET TO THE EAST
LINE OF THE WEST HALF OF THE NORTHWEST QUARTER OF SAID SECTION 13; THENCE SOUTH
00 degrees 01' 03" EAST ON SAID EAST LINE 2640.34 FEET TO THE EAST AND WEST
QUARTER LINE OF SAID SECTION 13; THENCE SOUTH 00 degrees 05' 34" EAST ON THE
EAST LINE OF THE WEST HALF OF THE SOUTHWEST QUARTER OF SAID SECTION 13 A
DISTANCE OF 2649.26 FEET TO THE SOUTH LINE OF SAID SECTION 13; THENCE SOUTH 89
degrees 33' 42" WEST ON SAID SOUTH SECTION LINE 1309.49 FEET TO THE CORNER
COMMON TO SECTIONS 13, 14, 23 AND 24; THENCE NORTH 00 degrees 11' 33" WEST ON
THE LINE COMMON TO SAID SECTIONS 13 AND 14 A DISTANCE OF 2650.01 FEET TO THE
QUARTER CORNER COMMON TO SAID SECTIONS 13 AND 14; THENCE SOUTH 89 degrees 47'
52" WEST ON THE EAST AND WEST QUARTER LINE OF SAID SECTION 14 A DISTANCE OF
664.34 FEET TO THE WEST LINE OF THE EAST HALF OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF SAID SECTION 14; THENCE SOUTH 00 degrees 07' 52" EAST ON SAID WEST
LINE 1637.07 FEET TO THE SOUTH LINE OF THE NORTH 25 ACRES OF THE WEST HALF OF
THE EAST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 89
degrees 47' 52" WEST ON SAID SOUTH LINE 666.09 FEET TO THE EAST LINE OF THE WEST
HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 00 degrees 04'
12" EAST ON SAID EAST LINE 1017.75 FEET TO THE SOUTH LINE OF SAID SECTION 14;
THENCE SOUTH 89 degrees 35' 30" WEST ON SAID SOUTH SECTION LINE 667.18 FEET TO
THE WEST LINE OF THE EAST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID
SECTION 14; THENCE NORTH 00 degrees 00' 32" WEST ON SAID WEST LINE 885.75 FEET
TO THE SOUTH LINE OF THE NORTH TWO THIRDS OF THE EAST HALF OF THE WEST HALF OF
THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 14; THENCE SOUTH 89
degrees 39' 35" WEST ON SAID SOUTH LINE 333.12 FEET TO THE WEST LINE OF THE EAST
HALF OF THE WEST HALF OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION
14; THENCE SOUTH 00 degrees 01' 18" WEST ON SAID WEST LINE 886.15 FEET TO THE
SOUTH LINE OF SAID SECTION 14; THENCE SOUTH 89 degrees 35' 30" WEST ON SAID
SOUTH SECTION LINE 333.59 FEET TO THE POINT OF BEGINNING. CONTAINING 673.18
ACRES MORE OR LESS.

SUBJECT TO THE RIGHTS OF THE PUBLIC AND OF ANY GOVERNMENTAL UNIT IN ANY PART
THEREOF TAKEN, USED, OR DEEDED FOR STREET, ROAD, OR HIGHWAY PURPOSES.


                                       68

<PAGE>

THIS SURVEY WAS PERFORMED WITH AN ERROR OF CLOSURE NO GREATER THAN 1 IN 15000.

THIS SURVEY COMPLIES WITH THE REQUIREMENTS OF SECTION 3, P.A. 132 OF 1970, AS
AMENDED, EXCEPT FOR PAPER SIZE.

ASSUMED THE LINE BETWEEN THE SOUTH QUARTER CORNER AND THE SOUTHEAST CORNER OF
SAID SECTION 14 TO BEAR WEST.


                                       69

<PAGE>

                                    EXHIBIT E

               SECOND AMENDED AND RESTATED LAKES DEVELOPMENT NOTE

                          [SEE CLOSING AGENDA: ITEM 4]


                                       70

<PAGE>

                                    EXHIBIT F

                               LAKES FACILITY NOTE

                          [SEE CLOSING AGENDA: ITEM 5]


                                       71

<PAGE>

                                    EXHIBIT G

                               SECURITY AGREEMENT

                          [SEE CLOSING AGENDA: ITEM 6]


                                       72

<PAGE>

                                    EXHIBIT H

                       LAKES WORKING CAPITAL ADVANCE NOTE

                          [SEE CLOSING AGENDA: ITEM 7]


                                       73

<PAGE>

                                    EXHIBIT I

                           LAKES MINIMUM PAYMENTS NOTE

                          [SEE CLOSING AGENDA: ITEM 8]


                                       74

<PAGE>

                                    EXHIBIT J

                           SECOND AMENDED AND RESTATED
              NON-GAMING LAND ACQUISITION LINE OF CREDIT AGREEMENT

                          [SEE CLOSING AGENDA: ITEM 9]


                                       75

<PAGE>

                                    EXHIBIT K

                SECOND AMENDED AND RESTATED TRANSITION LOAN NOTE

                          [SEE CLOSING AGENDA: ITEM 10]


                                       76

<PAGE>

                                    EXHIBIT L

                                 BAND LITIGATION

Taxpayers of Michigan Against Casinos et al. v. State of Michigan. The Michigan
Supreme Court has ruled against plaintiff TOMAC's challenges to the validity of
the Compact. 471 Mich. 306, 685 N.W.2d221 (2004). TOMAC has petitioned the U.S.
Supreme Court for a writ of certiorari. Also, on remand from the Michigan
Supreme Court, in Michigan Court of Appeals Case No. 225017, TOMAC challenges
the validity of the Compact under the appropriation and separation of powers
provisions of the Michigan Constitution. The Band is not a party to these
actions, but may choose to intervene.

TOMAC v. Norton et al., U.S.D.C.D.C., Case No. 1:01CV00398-JR. The plaintiff in
that action challenges the decision of the Department of Interior to take the
Gaming Site into trust. The Band is not a party to that action, but may choose
to intervene.

Pokagon Properties, LLC v Leonard A. Kolberg, Jr.,Case No. 02-49-765-CK-B,
Circuit Court for the County of Van Buren. Claim for non-payment of rent from
crop lease. Amount of claim: approximately $36,000.00. Defendant has filed a
counterclaim seeking damages in the amount of $118,000.00. The parties have
entered into a settlement agreement which includes the Band receiving $9,000 and
a dismissal of all claims.

Pokagon Properties, LLC v Dean Anderson, Case No. 71C010205CC00602, Circuit
Court for the County of St. Joseph. Claim for non-payment of rent from crop
lease. Amount of claim: approximately $52,000.00. Defendant has filed a
counterclaim in the approximate amount of $63,000.00.


                                       77

<PAGE>

                                    EXHIBIT M

                  CONDITIONAL RELEASE AND TERMINATION AGREEMENT
                    BETWEEN LAKES AND CRC DATED MAY 20, 1999,
AS AMENDED BY AMENDMENT DATED ON OR ABOUT JULY 7, 1999, AS AMENDED BY AMENDMENT
                        DATED ON OR ABOUT JANUARY 2, 2003


                                       78

<PAGE>

                                    EXHIBIT N

              GENERAL RELEASE FROM CRC TO THE BAND AND ITS MEMBERS


                                       79
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.71
<SEQUENCE>6
<FILENAME>c92713exv10w71.txt
<DESCRIPTION>SECOND AMENDED/RESTATED LAKES DEVELOPMENT NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.71

                                                               EXECUTION VERSION

               SECOND AMENDED AND RESTATED LAKES DEVELOPMENT NOTE

$46,000,000                                                    December 22, 2004
                                                              Dowagiac, Michigan

     FOR VALUE RECEIVED, the Pokagon Band of Potawatomi Indians (the "Band")
promises to pay to Great Lakes Gaming of Michigan, LLC, a Minnesota limited
liability company ("Lakes"), such sums as may be advanced by Lakes to the Band
in accordance with " 8.4 and 9.2.1 of a Development Agreement between the Band
and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc. dated as of July 8,
1999, as assigned by Lakes Entertainment, Inc. to and assumed by Lakes pursuant
to that certain Assignment and Assumption Agreement dated as of October 16, 2000
by and among the Band, Lakes Entertainment, Inc. and Lakes (the "Assignment
Agreement"), and as amended and restated by First Amendment dated as of October
16, 2000 and by Second Amendment dated as of December 22, 2004 (collectively,
the "Development Agreement"); provided that the principal amount due hereunder
shall not exceed Forty-Six Million Dollars ($46,000,000.00) except as otherwise
provided in Section 9.2.1(a) of the Development Agreement.

     1. Advances; Funding. Advances under this Note shall be made (a) upon
written request by the Band to Lakes in the form of Draw Request attached as
Exhibit A, (b) through a Draw Request approved by the Band pursuant to the
Control Agreement, (c) through other written requests by the Band to Lakes
permitted by the Development Agreement or any applicable Transaction Document,
or (d) through advances by Lakes to the Enterprise Bank Accounts to pay
Development Expenditures in accordance with either (I) the Approved Development
Budget or, prior to the adoption of the Approved Development Budget, the
approval of the Business Board or the Band; and (II) the Development Agreement.
Draw Requests submitted by the Band shall be sent in accordance with Section
15.4 of the Development Agreement. Advances under this Note may, at Lakes'
option, be funded through transfer of funds from the Escrow Account; provided
that interest shall only accrue under this Note on funds advanced through the
Escrow Account after transfer from the Escrow Account to the Band Enterprise
Account, and shall not begin to accrue on deposit by Lakes into the Escrow
Account. All Draw Requests submitted by the Band shall be funded within ten (10)
days of the date of the draw request. By making any advance to the Enterprise
Bank Accounts or otherwise under the Development Agreement, Lakes shall certify
that the amounts so advanced are necessary for, and shall be used to pay,
Development Expenditures in accordance with either (a) the Approved Development
Budget or, prior to the adoption of the Approved Development Budget, the
approval of the Business Board or the Band; and (b) the Development Agreement.

     2. Interest. Interest shall accrue on the outstanding balance under this
Note as follows:

<PAGE>

     (a) if the Bank Closing occurs, at a fixed rate equal to the lesser of (i)
     Base Rate as of the Bank Closing plus 1% or (ii) 10% (the "Band Interest
     Rate"); or

     (b) If the Bank Closing does not occur, at a variable rate equal to the
     lesser of (i) Base Rate plus 1% or (ii) 10% (the lesser of (i) and (ii)
     being referred to as the "Variable Interest Rate"). Lakes shall adjust the
     Variable Interest Rate on the then unpaid principal balance, by way of
     increase or decrease, in accordance with changes in the Base Rate. Such
     changes shall be effective as of the change in the Base Rate (the
     "Effective Date").

     Upon the Bank Closing, interest accruing under this Note prior to the Bank
Closing shall be adjusted retroactively to reflect the Band Interest Rate. "Base
Rate" means the lowest Prime Rate as is published daily in The Wall Street
Journal. In the event that the Wall Street Journal ceases to publish the Prime
Rate, then the holder hereof may in its reasonable discretion select some other
generally recognized comparable indicator of the national Prime Rate.

     3. Repayment.

          I.   If the Commencement Date occurs, the Band shall repay the amount
               of principal and accrued interest outstanding hereunder as of the
               Commencement Date monthly in arrears, beginning on the 15th day
               of the month after the month in which the Commencement Date
               occurs, in equal monthly payments of principal and interest in an
               amount sufficient to amortize such principal and accrued interest
               over (a), if pursuant to the Development Agreement the term of
               the Lakes Development Loan is seven (7) years, the successive
               eighty-four months of that term; or (b), if pursuant to the
               Development Agreement the term of the Lakes Development Loan is
               five (5) years, the successive 60 months of that term; and, if
               not sooner paid, in full at the end of the Term (except as
               provided in Section 13.7 of the Development Agreement).

          II.  If the Commencement Date does not occur, principal and interest
               shall be repayable to the extent and in the manner provided in
               the Development Agreement; provided that payments shall in any
               event be due and made only from the sources specified in Sections
               14.3 and 14.4 of the Development Agreement. If Gaming commences
               at a Subsequent Gaming Facility and payment is due under this
               Note in accordance with the Development Agreement, the Band
               shall, beginning on the 15th day of the month following such
               commencement date, make equal monthly payments to Lakes of
               principal and interest in an amount sufficient to amortize the
               principal amount outstanding as of such commencement date over a
               sixty (60) month period at the Variable Interest Rate, and shall
               thereafter continue to make such payments on the 15th day of each
               succeeding month to and including the fifteenth day of the
               sixtieth month following such


                                        2

<PAGE>

               commencement date, when all remaining principal and interest
               shall be due and payable. As of the Effective Date of a change in
               the Base Rate, Lakes shall adjust the monthly installments of
               principal and interest as of the installment next following the
               Effective Date so that the then unpaid principal balance would be
               amortized in full at the revised Variable Interest Rate five
               years after such commencement of gaming. Lakes shall promptly
               notify the Band in writing of any changes in the Base Rate and in
               the installment payment due.

     4. Prepayment. This Note may be prepaid at any time without penalty. This
Note shall also be subject to prepayment as and when required under the terms of
any Transaction Documents.

     5. Subordination. Payment of amounts due hereunder shall be subordinated to
the Bank Development Loan, the Equipment Loan and any other third-party loans or
equipment leases to the Band relating to the Facility to the extent provided in
the Development Agreement or, if the Commencement Date does not occur, or to any
loans relating to any other Gaming facility in Michigan owned by the Band to the
extent provided in the Development Agreement. The holder of this Note agrees to
execute and deliver subordination agreements evidencing such subordination in
form reasonably acceptable to the holder and the Bank Lender, the Equipment
Lender, or any other third-party lender or equipment lessor.

     6. Limited Recourse. The obligations of the Band under this Note and any
related awards, judgments or decrees shall be payable solely out of
undistributed or future Net Revenues of the Enterprise and shall be a Limited
Recourse obligation of the Band, with no recourse to tribal assets other than
the limited assets of the Band specified in the definition of Limited Recourse
and Section 14.3(a) of the Development Agreement.

     7. Default; Acceleration. All outstanding principal together with accrued
interest shall become immediately due and payable in full, subject to the
limitations on recourse provided above, upon default in the payment of principal
or interest due under this Note if such default is not remedied within thirty
(30) days after receipt by the Band of written notice thereof as provided in the
Development Agreement.

     8. Band's Waiver of Sovereign Immunity and Consent to Suit. The Band
expressly waives its sovereign immunity from suit for the purpose of permitting
or compelling arbitration to enforce this Note as provided in Article 14 of the
Development Agreement and consents to be sued in the United States District
Court for the Western District of Michigan - Southern Division, the United
States Court of Appeals for the Sixth Circuit, and the United States Supreme
Court for the purpose of compelling arbitration or enforcing any arbitration
award or judgment arising out of this Note. If the United States District Court
lacks jurisdiction, the Band consents to be sued in the Michigan State Court
system for the same limited purpose. The Band waives any requirement of
exhaustion of tribal remedies. Without in any way limiting the generality of the


                                        3

<PAGE>

foregoing, the Band expressly authorizes any governmental authorities who have
the right and duty under applicable law to take any action authorized or ordered
by any such court, and to take such action, including without limitation,
repossessing or foreclosing on any real property not in trust, or otherwise
giving effect to any judgment entered; provided, however, that liability of the
Band under any judgment shall always be Limited Recourse, and in no instance
shall any enforcement of any kind whatsoever be allowed against any assets of
the Band other than the limited assets of the Band specified in the definition
of Limited Recourse and Section 14.3(a) of the Development Agreement. The Band
appoints the Chairman of the Pokagon Council and the Secretary of the Pokagon
Council as its agents for service of all process under or relating to the
Agreements. The Band agrees that service in hand or by certified mail, return
receipt requested, shall be effective for all purposes under or relating to the
Agreements if served on such agents.

     9. Arbitration. All disputes, controversies or claims arising out of or
relating to this Note shall be settled by binding arbitration as provided in
Article 14 of the Development Agreement.

     10. Business Purposes; Applicable Law. This Note evidences a loan for
business and commercial purposes and not for personal, household, family or
agricultural purposes, and shall be governed by the law of the State of Michigan
and, to the extent applicable, federal law.

     11. Notices. All notices under this Note shall be given in accordance with
Section 15.4 of the Development Agreement; except that copies of draw requests
need not be sent to attorneys.

     12. Defined Terms. Capitalized terms used herein shall have the same
meanings assigned to them in the Development Agreement, and, if not defined in
the Development Agreement, in the Management Agreement between the Band and
Lakes, as amended.

     13. Miscellaneous.

          a. Time is of the essence.

          b. The benefits and obligations of this Note shall inure to and be
          binding upon the parties hereto and their respective successors and
          assigns, provided that any succession or assignment is permitted under
          the Development Agreement.

          c. Waiver of any one default shall not cause or imply a waiver any
          subsequent default.

          d. This Note, together with the documents listed in Section 15.17 of
          the Development Agreement, as each has been amended to date, sets
          forth the entire agreement between the parties hereto with respect to
          the subject matter hereof. All agreements, covenants, representations,
          and warranties, express or implied, oral or written, of the parties
          with respect to the subject matter hereof are contained herein and
          therein. This Note shall not be supplemented, amended or


                                        4

<PAGE>

          modified by any course of dealing, course of performance or uses of
          trade and may only be amended or modified by a written instrument duly
          executed by officers of both parties.

          e. This Note has been executed and delivered as a complete amendment
          and restatement in its entirety of that certain Lakes Note dated as of
          July 8, 1999 made payable by the Band to Lakes Entertainment, Inc.,
          f/k/a Lakes Gaming, Inc., in the original principal amount of
          $43,000,000, as assigned by Lakes Gaming, Inc. to Lakes pursuant to
          the Assignment Agreement and as amended and restated by First
          Amendment dated as of October 16, 2000. Lakes agrees to return the
          original of the original Lakes Note dated as of July 8, 1999 and the
          original first amendment and restatement of such note dated as of
          October 16, 2000.

                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Its: Council Chairman


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Its: Secretary


                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                        5

<PAGE>

                                    EXHIBIT A

                                  DRAW REQUEST

     The Pokagon Band of Potawatomi Indians (the "Band") requests that Great
Lakes Gaming of Michigan, LLC ("Lakes") advance $_____________________ under the
Lakes Development Note. The Band certifies that the amounts drawn under this
Request will be used for purposes set out in Section 8.4 of the Development
Agreement or for Development Expenditures, as per the attached itemization.

     Advances should be made [pursuant to wire transfer instructions previously
given to Lakes] [as follows:______________________________________________].

Dated:___________________               THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By:
                                            ------------------------------------
                                        Its: Council Chairman


                                        By:
                                            ------------------------------------
                                        Its: Secretary

[or other persons designated by the Band pursuant to the Development Agreement]


                                        6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.72
<SEQUENCE>7
<FILENAME>c92713exv10w72.txt
<DESCRIPTION>SECOND AMENDED/RESTATED TRANSITION LOAN NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.72

                                                               EXECUTION VERSION

                SECOND AMENDED AND RESTATED TRANSITION LOAN NOTE

$12,000,000                                                   December 22, 2004
                                                              Dowagiac, Michigan

     FOR VALUE RECEIVED, The Pokagon Band of Potawatomi Indians (the "Band")
promises to pay to Great Lakes Gaming of Michigan, LLC, a Minnesota limited
liability company ("Lakes"), such sums as may be advanced by Lakes to the Band
under Section 8.3 of a Development Agreement between the Band and Lakes
Entertainment, Inc., f/k/a Lakes Gaming, Inc. dated as of July 8, 1999 (the
"Development Agreement"), as assigned by Lakes Entertainment, Inc. to and
assumed by Lakes pursuant to that certain Assignment and Assumption Agreement
dated as of October 16, 2000 by and among the Band, Lakes Entertainment, Inc.
and Lakes (the "Assignment Agreement"), and as amended and restated by First
Amendment dated as of October 16, 2000 and by Second Amendment dated as of
December 22, 2004 (collectively, the "Development Agreement"); provided that the
principal amount due hereunder shall not exceed Twelve Million Dollars
($12,000,000.00).

     1. Advances. Advances under this Note may, at Lakes' option, be funded
through transfer of funds from the Escrow Account; provided that interest shall
only accrue under this Note on funds advanced through the Escrow Account after
disbursement from the Escrow Account, and shall not begin to accrue on deposit
by Lakes into the Escrow Account.

     2. Interest. No interest shall accrue on amounts outstanding hereunder
until two years after the date hereof. Beginning on the second annual
anniversary of the date hereof, interest shall begin accruing on the outstanding
balance as follows:

     (a) if the Bank Closing occurs, at a fixed rate equal to the lesser of (i)
     Base Rate as of the Bank Closing plus 1% or (ii) 10% (the "Band Interest
     Rate"); or

     (b) if the Bank Closing does not occur, at a variable rate equal to the
     lesser of (i) Base Rate plus 1% or (ii) 10% (the lesser of (i) and (ii)
     being referred to as the "Variable Interest Rate"). Lakes shall adjust the
     Variable Interest Rate on the then unpaid principal balance, by way of
     increase or decrease, in accordance with changes in the Base Rate. Such
     changes shall be effective as of the change in the Base Rate (the
     "Effective Date").

     If the Bank Closing occurs after the second annual anniversary of the date
hereof, interest accruing under this Note prior to the Bank Closing shall be
adjusted retroactively to reflect the Band Interest Rate. "Base Rate" means the
lowest Prime Rate as is published daily in The Wall Street Journal. n the event
that the Wall Street Journal ceases to publish the Prime Rate, then the holder
hereof may in its reasonable discretion select some other generally recognized
comparable indicator of the national Prime Rate.

<PAGE>

     3. Repayment.

     If the Commencement Date occurs, the Band shall, beginning on the 15th day
of the month following the Commencement Date, make equal monthly payments to
Lakes of principal and interest in an amount sufficient to amortize the
principal amount outstanding as of the Commencement Date over a sixty (60) month
period at the Band Interest Rate, and shall thereafter continue to make payments
in such amount on the 15th day of each succeeding month to and including the
fifteenth day of the sixtieth month following the Commencement Date, when all
remaining principal and interest shall be due and payable.

     If the Commencement Date does not occur, principal and interest shall be
repayable to the extent and in the manner provided in the Development Agreement;
provided that payments shall in any event be due and made only from Subsequent
Gaming Facility Revenues, in accordance with the Development Agreement. If
Gaming commences at such a facility and payment is due under this Note in
accordance with the Development Agreement, the Band shall, beginning on the 15th
day of the month following such commencement date, make equal monthly payments
to Lakes of principal and interest in an amount sufficient to amortize the
principal amount outstanding as of such commencement date over a sixty (60)
month period at the Variable Interest Rate, and shall thereafter continue to
make such payments on the 15th day of each succeeding month to and including the
fifteenth day of the sixtieth month following such commencement date, when all
remaining principal and interest shall be due and payable. As of the Effective
Date of a change in the Base Rate, Lakes shall adjust the monthly installments
of principal and interest as of the installment next following the Effective
Date so that the then unpaid principal balance would be amortized in full at the
revised Variable Interest Rate five years after such commencement of gaming.
Lakes shall promptly notify the Band in writing of any changes in the Base Rate
and in the installment payment due.

     4. Prepayment. This Note may be prepaid at any time without penalty. This
Note shall also be subject to prepayment as and when required under the terms of
any Transaction Documents.

     5. Limited Recourse. The obligations of the Band under this Note and any
related awards, judgments or decrees shall be payable solely out of
undistributed or future Net Revenues of the Enterprise and shall be a Limited
Recourse obligation of the Band, with no recourse to tribal assets other than
the limited assets of the Band specified in the definition of Limited Recourse
and Section 14.3(a) of the Development Agreement.

     6. Subordination. Payment of amounts due hereunder shall be subordinated to
the Bank Development Loan, the Equipment Loan and any other third-party loans or
equipment leases to the Band relating to the Facility to the extent provided in
the Development Agreement or, if the Commencement Date does not occur, or to any
loans relating to any other Gaming facility in Michigan owned by the Band. The
holder of this Note agrees to execute and deliver


                                       2

<PAGE>

subordination agreements evidencing such subordination in form reasonably
acceptable to holder and the Bank Lender, the Equipment Lender, or any other
third-party lender or equipment lessor.

     7. Default; Acceleration. All outstanding principal together with accrued
interest shall become immediately due and payable in full, subject to the
limitations on recourse provided above, upon default in the payment of principal
or interest due under this Note if such default is not remedied within thirty
(30) days after receipt by the Band of written notice thereof as provided in the
Development Agreement.

     8. Sovereign Immunity. The Band expressly waives its sovereign immunity
from suit for the purpose of permitting or compelling arbitration to enforce
this Note as provided in Article 14 of the Development Agreement and consents to
be sued in the United States District Court for the Western District of Michigan
- - Southern Division, the United States Court of Appeals for the Sixth Circuit,
and the United States Supreme Court for the purpose of compelling arbitration or
enforcing any arbitration award or judgment arising out of this Note. If the
United States District Court lacks jurisdiction, the Band consents to be sued in
the Michigan State Court system for the same limited purpose. The Band waives
any requirement of exhaustion of tribal remedies. Without in any way limiting
the generality of the foregoing, the Band expressly authorizes any governmental
authorities who have the right and duty under applicable law to take any action
authorized or ordered by any such court, and to take such action, including
without limitation, repossessing or foreclosing on any real property not in
trust, or otherwise giving effect to any judgment entered; provided, however,
that liability of the Band under any judgment shall always be Limited Recourse,
and in no instance shall any enforcement of any kind whatsoever be allowed
against any assets of the Band other than the limited assets of the Band
specified in the definition of Limited Recourse and Section 14.3(a) of the
Development Agreement. The Band appoints the Chairman of the Pokagon Council and
the Secretary of the Pokagon Council as its agents for service of all process
under or relating to the Agreements, and (v) Furnishings and Fixtures to the
extent provided in ' 9.2.1(j) of the Development Agreement. The Band agrees that
service in hand or by certified mail, return receipt requested, shall be
effective for all purposes under or relating to the Agreements if served on such
agents.

     9. Arbitration. All disputes, controversies or claims arising out of or
relating to this Note shall be settled by binding arbitration as provided in
Article 14 of the Development Agreement.

     10. Business Purposes; Applicable Law. This Note evidences a loan for
business and commercial purposes and not for personal, household, family or
agricultural purposes, and shall be governed by the law of the State of Michigan
and, to the extent applicable, federal law.

     11. Defined Terms. Capitalized terms used herein shall have the same
meanings assigned to them in the Development Agreement, and, if not defined in
the Development Agreement, in the Management Agreement between the Band and
Lakes of even date.


                                       3

<PAGE>

     12. Miscellaneous.

          a. Time is of the essence.

          b. The benefits and obligations of this Note shall inure to and be
          binding upon the parties hereto and their respective successors and
          assigns, provided that any succession or assignment is permitted under
          the Development Agreement.

          c. Waiver of any one default shall not cause or imply a waiver any
          subsequent default.

          d. This Note, together with the documents listed in Section 15.17 of
          the Development Agreement, sets forth the entire agreement between the
          parties hereto with respect to the subject matter hereof. All
          agreements, covenants, representations, and warranties, express or
          implied, oral or written, of the parties with respect to the subject
          matter hereof are contained herein and therein. This Note shall not be
          supplemented, amended or modified by any course of dealing, course of
          performance or uses of trade and may only be amended or modified by a
          written instrument duly executed by officers of both parties.

          e. This Note has been executed and delivered as a complete amendment
          and restatement in its entirety of that certain Transition Loan Note
          dated as of July 8, 1999 made payable by the Band to Lakes
          Entertainment, Inc. in the original principal amount of $7,500,000, as
          assigned by Lakes Entertainment, Inc. to Lakes pursuant to the
          Assignment Agreement and as amended and restated by First Amendment
          dated as of October 16, 2000. Lakes agrees to deliver to the Band the
          original of such Note dated as of July 8, 1999 and of the such first
          amended and restated note dated as of October 16, 2000.

                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Its: Council Chairman


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Its: Secretary


                                       4

<PAGE>

                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By:
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                       5
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.73
<SEQUENCE>8
<FILENAME>c92713exv10w73.txt
<DESCRIPTION>LAKES FACILITY NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.73

                                                               EXECUTION VERSION

                               LAKES FACILITY NOTE

$54,000,000                                                   December 22, 2004
                                                              Dowagiac, Michigan

     FOR VALUE RECEIVED, the Pokagon Band of Potawatomi Indians (the "Band")
promises to pay to Great Lakes Gaming of Michigan, LLC, a Minnesota limited
liability company ("Lakes"), such sums as may be advanced by Lakes to the Band
in accordance with Section 9.2.4 of a Development Agreement between the Band and
Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc. dated as of July 8, 1999, as
assigned by Lakes Entertainment, Inc. to and assumed by Lakes pursuant to that
certain Assignment and Assumption Agreement dated as of October 16, 2000 by and
among the Band, Lakes Entertainment, Inc. and Lakes (the "Assignment
Agreement"), and as amended and restated by First Amendment dated as of October
16, 2000 and by Second Amendment dated as of December 22, 2004 (collectively,
the "Development Agreement"; provided that the principal amount due hereunder
shall not exceed Fifty-Four Million Dollars ($54,000,000.00).

     1. Advances; Funding. Advances under this Note shall be made (a) upon
written request by the Band to Lakes in the form of Draw Request attached as
Exhibit A, (b) through a Draw Request approved by the Band pursuant to the
Control Agreement, (c) through other written requests by the Band to Lakes
permitted by the Development Agreement or any applicable Transaction Document,
or (d) through advances by Lakes to the Enterprise Bank Accounts to pay
Development Expenditures in accordance with either (I) the Approved Development
Budget or, prior to the adoption of the Approved Development Budget, the
approval of the Business Board or the Band; and (II) the Development Agreement.
Draw Requests submitted by the Band shall be sent in accordance with Section
15.4 of the Development Agreement. All Draw Requests submitted by the Band shall
be funded within ten (10) days of the date of the draw request. By making any
advance to the Enterprise Bank Accounts or otherwise under the Development
Agreement, Lakes shall certify that the amounts so advanced are necessary for,
and shall be used to pay, Development Expenditures in accordance with either (a)
the Approved Development Budget or, prior to the adoption of the Approved
Development Budget, the approval of the Business Board or the Band; and (b) the
Development Agreement.

     2. Interest. Interest shall accrue on the outstanding balance under this
Note at thirteen percent (13%) per annum.

     3. Repayment.

          I.   If the Commencement Date occurs, the Band shall repay the amount
               of principal and accrued interest outstanding hereunder as of the
               Commencement Date monthly in arrears, beginning on the 15th day
               of the

<PAGE>

               month after the month in which the Commencement Date occurs, in
               equal monthly payments of principal and interest for (a), if
               pursuant to the Development Agreement the term of the Lakes
               Development Loan is seven (7) years, the successive eighty-four
               months of that term; or (b), if pursuant to the Development
               Agreement the term of the Lakes Development Loan is five (5)
               years, the successive 60 months of that term; and, if not sooner
               paid, in full at the end of the Term (except as provided in
               Section 13.7 of the Development Agreement).

          II.  If the Commencement Date does not occur, principal and interest
               shall be repayable to the extent and in the manner provided in
               the Development Agreement; provided that payments shall in any
               event be due and made only from the sources specified in Sections
               14.3 and 14.4 of the Development Agreement. If Gaming commences
               at a Subsequent Gaming Facility and payment is due under this
               Note in accordance with the Development Agreement, the Band
               shall, beginning on the 15th day of the month following such
               commencement date, make equal monthly payments to Lakes of
               principal and interest in an amount sufficient to amortize the
               principal amount outstanding as of such commencement date over a
               sixty (60) month period at the Variable Interest Rate, and shall
               thereafter continue to make such payments on the 15th day of each
               succeeding month to and including the fifteenth day of the
               sixtieth month following such commencement date, when all
               remaining principal and interest shall be due and payable. As of
               the Effective Date of a change in the Base Rate, Lakes shall
               adjust the monthly installments of principal and interest as of
               the installment next following the Effective Date so that the
               then unpaid principal balance would be amortized in full at the
               revised Variable Interest Rate five years after such commencement
               of gaming. Lakes shall promptly notify the Band in writing of any
               changes in the Base Rate and in the installment payment due.

     4. Prepayment. This Note may be prepaid at any time without penalty. This
Note shall also be subject to prepayment as and when required under the terms of
any Transaction Documents.

     5. Subordination. Payment of amounts due hereunder shall be subordinated to
the Bank Development Loan, the Equipment Loan and any other third-party loans or
equipment leases to the Band relating to the Facility to the extent provided in
the Development Agreement or, if the Commencement Date does not occur, or to any
loans relating to any other Gaming facility in Michigan owned by the Band to the
extent provided in the Development Agreement. The holder of this Note agrees to
execute and deliver subordination agreements evidencing such subordination in
form reasonably acceptable to the holder and the Bank Lender, the Equipment
Lender, or any other third-party lender or equipment lessor.


                                        2

<PAGE>

     6. Limited Recourse. The obligations of the Band under this Note and any
related awards, judgments or decrees shall be payable solely out of
undistributed or future Net Revenues of the Enterprise and shall be a Limited
Recourse obligation of the Band, with no recourse to tribal assets other than
the limited assets of the Band specified in the definition of Limited Recourse
and Section 14.3(a) of the Development Agreement.

     7. Default; Acceleration. All outstanding principal together with accrued
interest shall become immediately due and payable in full, subject to the
limitations on recourse provided above, upon default in the payment of principal
or interest due under this Note if such default is not remedied within thirty
(30) days after receipt by the Band of written notice thereof as provided in the
Development Agreement.

     8. Band's Waiver of Sovereign Immunity and Consent to Suit. The Band
expressly waives its sovereign immunity from suit for the purpose of permitting
or compelling arbitration to enforce this Note as provided in Article 14 of the
Development Agreement and consents to be sued in the United States District
Court for the Western District of Michigan - Southern Division, the United
States Court of Appeals for the Sixth Circuit, and the United States Supreme
Court for the purpose of compelling arbitration or enforcing any arbitration
award or judgment arising out of this Note. If the United States District Court
lacks jurisdiction, the Band consents to be sued in the Michigan State Court
system for the same limited purpose. The Band waives any requirement of
exhaustion of tribal remedies. Without in any way limiting the generality of the
foregoing, the Band expressly authorizes any governmental authorities who have
the right and duty under applicable law to take any action authorized or ordered
by any such court, and to take such action, including without limitation,
repossessing or foreclosing on any real property not in trust, or otherwise
giving effect to any judgment entered; provided, however, that liability of the
Band under any judgment shall always be Limited Recourse, and in no instance
shall any enforcement of any kind whatsoever be allowed against any assets of
the Band other than the limited assets of the Band specified in the definition
of Limited Recourse and Section 14.3(a) of the Development Agreement. The Band
appoints the Chairman of the Pokagon Council and the Secretary of the Pokagon
Council as its agents for service of all process under or relating to the
Agreements. The Band agrees that service in hand or by certified mail, return
receipt requested, shall be effective for all purposes under or relating to the
Agreements if served on such agents.

     9. Arbitration. All disputes, controversies or claims arising out of or
relating to this Note shall be settled by binding arbitration as provided in
Article 14 of the Development Agreement.

     10. Business Purposes; Applicable Law. This Note evidences a loan for
business and commercial purposes and not for personal, household, family or
agricultural purposes, and shall be governed by the law of the State of Michigan
and, to the extent applicable, federal law.

     11. Notices. All notices under this Note shall be given in accordance with
Section 15.4 of the Development Agreement; except that copies of draw requests
need not be sent to attorneys.


                                        3

<PAGE>

     12. Defined Terms. Capitalized terms used herein shall have the same
meanings assigned to them in the Development Agreement, and, if not defined in
the Development Agreement, in the Management Agreement between the Band and
Lakes, as amended.

     13. Miscellaneous.

          a. Time is of the essence.

          b. The benefits and obligations of this Note shall inure to and be
          binding upon the parties hereto and their respective successors and
          assigns, provided that any succession or assignment is permitted under
          the Development Agreement.

          c. Waiver of any one default shall not cause or imply a waiver any
          subsequent default.

          d. This Note, together with the documents listed in Section 15.17 of
          the Development Agreement, as each has been amended to date, sets
          forth the entire agreement between the parties hereto with respect to
          the subject matter hereof. All agreements, covenants, representations,
          and warranties, express or implied, oral or written, of the parties
          with respect to the subject matter hereof are contained herein and
          therein. This Note shall not be supplemented, amended or modified by
          any course of dealing, course of performance or uses of trade and may
          only be amended or modified by a written instrument duly executed by
          officers of both parties.

                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Its: Council Chairman


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Its: Secretary


                                        4

<PAGE>

                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By:
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                        5

<PAGE>

                                    EXHIBIT A
                                  DRAW REQUEST

     The Pokagon Band of Potawatomi Indians (the "Band") requests that Great
Lakes Gaming of Michigan, LLC ("Lakes") advance $_____________________ under the
Lakes Development Note. The Band certifies that the amounts drawn under this
Request will be used for purposes set out in Section 8.4 of the Development
Agreement or for Development Expenditures, as per the attached itemization.

     Advances should be made [pursuant to wire transfer instructions previously
given to Lakes] [as follows: ______________________________________________].

Dated:                                  THE POKAGON BAND OF POTAWATOMI INDIANS
       -------------------

                                        By:
                                            ------------------------------------
                                        Its: Council Chairman


                                        By:
                                            ------------------------------------
                                        Its: Secretary

[or other persons designated by the Band pursuant to the Development Agreement]


                                        6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.74
<SEQUENCE>9
<FILENAME>c92713exv10w74.txt
<DESCRIPTION>LAKES WORKING CAPITAL ADVANCE NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.74

                                                               EXECUTION VERSION

                       LAKES WORKING CAPITAL ADVANCE NOTE

$2,000,000                                                    December 22, 2004
                                                              Dowagiac, Michigan

     FOR VALUE RECEIVED, the Pokagon Band of Potawatomi Indians (the "Band")
promises to pay to Great Lakes Gaming of Michigan, LLC, a Minnesota limited
liability company ("Lakes"), such sums as may be advanced by Lakes to the Band
as Lakes Working Capital Advances in accordance with Section 5.3 of a Management
Agreement between the Band and Lakes Entertainment, Inc. dated as of July 8,
1999, as assigned by Lakes Entertainment, Inc. to and assumed by Lakes pursuant
to that certain Assignment and Assumption Agreement dated as of October 16, 2000
by and among the Band, Lakes Entertainment, Inc. and Lakes (the "Assignment
Agreement"), and as amended and restated by First Amendment dated as of October
16, 2000 and by Second Amendment dated as of December 22, 2004 (collectively,
the "Management Agreement"); provided that the principal amount due hereunder
shall not exceed Two Million Dollars ($2,000,000.00).

     1. Advances; Funding. Lakes shall notify the Band in writing by overnight
courier service of the amounts of any operating cash shortfalls in the first six
months after the Commencement Date, and shall furnish a written accounting
showing the derivation of such amount (the "Lakes Cash Shortfall Notice").
Advances under this Note shall be made by Lakes (a) upon written request by the
Band to Lakes in the form of Draw Request attached as Exhibit A or (b), in the
event of an emergency cash shortfall which threatens the immediate cessation or
curtailment of operations of the Enterprise, by advances in the amount needed to
avoid such immediate cessation or curtailment. Notices given by Lakes and Draw
Requests submitted by the Band under this Note shall be sent via overnight
courier service to the addresses set out in Section 17.2 of the Management
Agreement. Advances under this Note shall be funded by Lakes through wire
transfer of funds to one or more Enterprise Accounts in an aggregate amount
equal to the greater of the Draw Request or the amount needed to avoid immediate
cessation or curtailment of operations at the Enterprise, but not to exceed
$2,000,000 in principal advances outstanding at any one time. All Draw Requests
submitted by the Band shall be funded within two (2) business days of the date
that the draw request is received by Lakes. By submitting a Draw Request, the
Band does not waive the right to assert that an additional amount, beyond the
amount shown in the Lakes Cash Shortfall Notice or the Draw Request, should be
advanced by Lakes to cover operating cash shortfalls in accordance with Section
5.3 of the Management Agreement.

     2. Interest. Interest shall accrue on the outstanding balance under this
Note at the Band Interest Rate.

<PAGE>

     3. Repayment. Amounts advanced hereunder shall be repaid from Net Revenues
with the priority provided in Section 5.5 of the Management Agreement, subject
to the terms of any applicable subordination agreements.

     4. Prepayment. This Note may be prepaid at any time without penalty. This
Note shall also be subject to prepayment as and when required under the terms of
any Transaction Documents.

     5. Limited Recourse. The obligations of the Band under this Note and any
related awards, judgments or decrees shall be payable solely out of
undistributed or future Net Revenues of the Enterprise and shall be a Limited
Recourse obligation of the Band, with no recourse to tribal assets other than
the limited assets of the Band specified in the definition of Limited Recourse
and Section 14.3(a) of the Development Agreement

     6. Band's Waiver of Sovereign Immunity and Consent to Suit. The Band
expressly waives its sovereign immunity from suit for the purpose of permitting
or compelling arbitration to enforce this Note as provided in Article 14 of the
Development Agreement and consents to be sued in the United States District
Court for the Western District of Michigan - Southern Division, the United
States Court of Appeals for the Sixth Circuit, and the United States Supreme
Court for the purpose of compelling arbitration or enforcing any arbitration
award or judgment arising out of this Note. If the United States District Court
lacks jurisdiction, the Band consents to be sued in the Michigan State Court
system for the same limited purpose. The Band waives any requirement of
exhaustion of tribal remedies. Without in any way limiting the generality of the
foregoing, the Band expressly authorizes any governmental authorities who have
the right and duty under applicable law to take any action authorized or ordered
by any such court, and to take such action, including without limitation,
repossessing or foreclosing on any real property not in trust, or otherwise
giving effect to any judgment entered; provided, however, that liability of the
Band under any judgment shall always be Limited Recourse, and in no instance
shall any enforcement of any kind whatsoever be allowed against any assets of
the Band other than the limited assets of the Band specified in the definition
of Limited Recourse and Section 14.3(a) of the Development Agreement. The Band
appoints the Chairman of the Pokagon Council and the Secretary of the Pokagon
Council as its agents for service of all process under or relating to the
Agreements. The Band agrees that service in hand or by certified mail, return
receipt requested, shall be effective for all purposes under or relating to the
Agreements if served on such agents.

     7. Default; Acceleration. All outstanding principal together with accrued
interest shall become immediately due and payable in full, subject to the
limitations on recourse provided above, upon default in the payment of principal
or interest due under this Note if such default is not remedied within thirty
(30) days after receipt by the Band of written notice thereof as provided in the
Management Agreement.

     8. Arbitration. All disputes, controversies or claims arising out of or
relating to this Note shall be settled by binding arbitration as provided in
Article 13 of the Management Agreement.


                                        2

<PAGE>

     9. Business Purposes; Applicable Law. This Note evidences a loan for
business and commercial purposes and not for personal, household, family or
agricultural purposes, and shall be governed by the law of the State of Michigan
and, to the extent applicable, federal law.

     10. Notices. All notices under this Note shall be given in accordance with
Section 15.4 of the Development Agreement; except that copies of draw requests
need not be sent to attorneys.

     11. Defined Terms. Capitalized terms used herein shall have the same
meanings assigned to them in the Management Agreement, and, if not defined in
the Management Agreement, in the Development Agreement between the Band and
Lakes, as amended.

     12. Miscellaneous.

          a. Time is of the essence.

          b. The benefits and obligations of this Note shall inure to and be
          binding upon the parties hereto and their respective successors and
          assigns, provided that any succession or assignment is permitted under
          the Management Agreement.

          c. Waiver of any one default shall not cause or imply a waiver any
          subsequent default.

          d. This Note, together with the documents listed in Section 15.17 of
          the Development Agreement, as each has been amended to date, sets
          forth the entire agreement between the parties hereto with respect to
          the subject matter hereof. All agreements, covenants, representations,
          and warranties, express or implied, oral or written, of the parties
          with respect to the subject matter hereof are contained herein and
          therein. This Note shall not be supplemented, amended or modified by
          any course of dealing, course of performance or uses of trade and may
          only be amended or modified by a written instrument duly executed by
          officers of both parties.

                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Its: Council Chairman


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Its: Secretary


                                        3

<PAGE>

                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By:
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                        4

<PAGE>

                                    EXHIBIT A
                                  DRAW REQUEST

     The Pokagon Band of Potawatomi Indians (the "Band") requests that Great
Lakes Gaming of Michigan, LLC ("Lakes") advance $_____________________ under the
Lakes Working Capital Advance Note. The Band certifies that the amounts drawn
under this Request will be used to fund operating cash shortfalls in accordance
with Section 5.3 of the Management Agreement.

     Advances should be made by wire transfer of such funds to one or more
Enterprise Bank Accounts.

Dated: ___________________              THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By:
                                            ------------------------------------
                                        Its: Council Chairman


                                        By:
                                            ------------------------------------
                                        Its: Secretary

 [or other persons designated by the Band pursuant to the Management Agreement]


                                        5
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.75
<SEQUENCE>10
<FILENAME>c92713exv10w75.txt
<DESCRIPTION>LAKES MINIMUM PAYMENTS NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.75

                                                               EXECUTION VERSION

                           LAKES MINIMUM PAYMENTS NOTE

                                                              December 22, 2004
                                                              Dowagiac, Michigan

     FOR VALUE RECEIVED, the Pokagon Band of Potawatomi Indians (the "Band")
promises to pay to Great Lakes Gaming of Michigan, LLC, a Minnesota limited
liability company ("Lakes"), such sums as may be advanced by Lakes to the Band
as Minimum Guaranteed Payment Advances in accordance with Section 5.6.1 of a
Management Agreement between the Band and Lakes Entertainment, Inc., f/k/a Lakes
Gaming, Inc. dated as of July 8, 1999, as assigned by Lakes Entertainment, Inc.
to and assumed by Lakes pursuant to that certain Assignment and Assumption
Agreement dated as of October 16, 2000 by and among the Band, Lakes
Entertainment, Inc. and Lakes (the "Assignment Agreement"), and as amended and
restated by First Amendment dated as of October 16, 2000 and by Second Amendment
dated as of December 22, 2004 (collectively, the "Management Agreement").

     1. Advances; Funding. Advances under this Note shall be funded through
deposits by Lakes into the Enterprise Disbursement Account for the benefit of
the Band, which funds shall be used solely to make Minimum Guaranteed Payment
Advances to the Band. Lakes shall notify the Band in writing of any advances
hereunder when made.

     2. Interest. Interest shall not accrue on amounts outstanding under this
Note.

     3. Repayment. As provided in Section 5.6.2 of the Management Agreement,
after making one or more Minimum Guaranteed Payment Advances in a Calculation
Year Lakes may recoup such advance from the Band's Monthly Distribution Payments
in succeeding months of the same Calculation Year; provided that in no event
shall such recoupment result in the Band's receiving less than its Minimum
Guaranteed Monthly Payment in any month. Manager shall not otherwise be entitled
to reimbursement from the Enterprise or the Band for amounts outstanding under
this Note.

     4. Prepayment. This Note may be prepaid at any time without penalty.

     5. [intentionally deleted]

     6. Limited Recourse. The obligations of the Band under this Note and any
related awards, judgments or decrees shall be payable solely through recoupment
from certain Net Revenues that would otherwise be distributed to the Band as
Monthly Distribution Payments, as provided in and subject to the limitations of
Section 3. Lakes shall have no recourse to any tribal assets other than such
undistributed Net Revenues for payment under this Note.

<PAGE>

     7. Band's Waiver of Sovereign Immunity and Consent to Suit. The Band
expressly waives its sovereign immunity from suit for the purpose of permitting
or compelling arbitration to enforce this Note as provided in Article 14 of the
Development Agreement and consents to be sued in the United States District
Court for the Western District of Michigan - Southern Division, the United
States Court of Appeals for the Sixth Circuit, and the United States Supreme
Court for the purpose of compelling arbitration or enforcing any arbitration
award or judgment arising out of this Note. If the United States District Court
lacks jurisdiction, the Band consents to be sued in the Michigan State Court
system for the same limited purpose. The Band waives any requirement of
exhaustion of tribal remedies. Without in any way limiting the generality of the
foregoing, the Band expressly authorizes any governmental authorities who have
the right and duty under applicable law to take any action authorized or ordered
by any such court, and to take such action, including without limitation,
repossessing or foreclosing on any real property not in trust, or otherwise
giving effect to any judgment entered; provided, however, that liability of the
Band under any judgment shall always be limited as provided in Sections 3 and 6.
The Band appoints the Chairman of the Pokagon Council and the Secretary of the
Pokagon Council as its agents for service of all process under or relating to
the Agreements. The Band agrees that service in hand or by certified mail,
return receipt requested, shall be effective for all purposes under or relating
to the Agreements if served on such agents.

     8. Arbitration. All disputes, controversies or claims arising out of or
relating to this Note shall be settled by binding arbitration as provided in
Article 13 of the Management Agreement.

     9. Business Purposes; Applicable Law. This Note evidences a loan for
business and commercial purposes and not for personal, household, family or
agricultural purposes, and shall be governed by the law of the State of Michigan
and, to the extent applicable, federal law.

     10. Notices. All notices under this Note shall be given in accordance with
15.4 of the Development Agreement; except that copies of draw requests need not
be sent to attorneys.

     11. Defined Terms. Capitalized terms used herein shall have the same
meanings assigned to them in the Management Agreement, and, if not defined in
the Management Agreement, in the Development Agreement between the Band and
Lakes, as amended.

     12. Miscellaneous.

          a. Time is of the essence.

          b. The benefits and obligations of this Note shall inure to and be
          binding upon the parties hereto and their respective successors and
          assigns, provided that any succession or assignment is permitted under
          the Management Agreement.


                                        2

<PAGE>

          c. Waiver of any one default shall not cause or imply a waiver any
          subsequent default.

          d. This Note, together with the documents listed in Section 15.17 of
          the Development Agreement, as each has been amended to date, sets
          forth the entire agreement between the parties hereto with respect to
          the subject matter hereof. All agreements, covenants, representations,
          and warranties, express or implied, oral or written, of the parties
          with respect to the subject matter hereof are contained herein and
          therein. This Note shall not be supplemented, amended or modified by
          any course of dealing, course of performance or uses of trade and may
          only be amended or modified by a written instrument duly executed by
          officers of both parties.


                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Its: Council Chairman


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Its: Secretary


                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                        3
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.76
<SEQUENCE>11
<FILENAME>c92713exv10w76.txt
<DESCRIPTION>SECOND AMENDED/RESTATED NON-GAMING LAND ACQUITITION LINE OF CREDIT
<TEXT>
<PAGE>
                                                                   Exhibit 10.76

                                                               EXECUTION VERSION

                           SECOND AMENDED AND RESTATED
                   NON-GAMING LAND ACQUISITION LINE OF CREDIT

     THIS SECOND AMENDED AND RESTATED NON-GAMING LAND ACQUISITION LINE OF CREDIT
AGREEMENT is dated as of the 22nd day of December, 2004, by and between THE
POKAGON BAND OF THE POTAWATOMI INDIANS (the "Band") and GREAT LAKES GAMING OF
MICHIGAN, LLC, a Minnesota limited liability company ("Lakes"):

     In consideration of the mutual covenants and promises hereinafter set
forth, and in accordance with the terms of a certain Development Agreement by
and between the Band and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc.
dated as of July 8, 1999, as assigned by Lakes Entertainment, Inc. to and
assumed by Lakes pursuant to that certain Assignment and Assumption Agreement
dated as of October 16, 2000 by and among the Band, Lakes Entertainment, Inc.
and Lakes (the "Assignment Agreement"), and as amended and restated by First
Amendment dated as of October 16, 2000 and by Second Amendment dated as of
December 22, 2004 (collectively, the "Development Agreement"), the Band and
Lakes agree as follows:

     1. Establishment of Credit. Subject to the terms of this Agreement and the
Development Agreement, Lakes agrees to make advances to the Band in an amount
not to exceed Fifteen Million Dollars ($15,000,000).

     2. Draw Requests; Funding. All draws under this Line of Credit shall be
made upon written request by the Band to Lakes in the form of Draw Request
attached as Exhibit A. All Draw Requests shall be sent in accordance with
Section 15.4 of the Development Agreement and may, at Lakes' option, be funded
through transfer of funds in the Escrow Account; provided that interest shall
only accrue under this Line of Credit on funds advanced through the Escrow
Account after disbursement from the Escrow Account, and shall not begin to
accrue on deposit by Lakes into the Escrow Account. All Draw Requests shall be
funded within ten (10) days of the date of the draw request through wire
transfer to an account directed by the Band, or as otherwise specified by the
Band.

     3. Use of Advances. Advances hereunder shall be used by the Band to option
or acquire Non-Gaming Lands, and to pay all related option fees, purchase
prices, fees, real estate commissions, transfer taxes, costs and expenses.

     4. Expiration. The commitment of Lakes to make advances hereunder shall
expire on the Commencement Date.

     5. Interest Rate. Interest shall accrue on the outstanding balance under
this Line of Credit as follows:

<PAGE>

     (a) if the Bank Closing occurs, at a fixed rate equal to the lesser of (i)
     Base Rate as of the Bank Closing plus 1% or (ii) 10% (the "Band Interest
     Rate"); or

     (b) If the Bank Closing does not occur, at a variable rate equal to the
     lesser of (i) Base Rate plus 1% or (ii) 10% (the lesser of (i) and (ii)
     being referred to as the "Variable Interest Rate"). Lakes shall adjust the
     Variable Interest Rate on the then unpaid principal balance, by way of
     increase or decrease, in accordance with changes in the Base Rate. Such
     changes shall be effective as of the change in the Base Rate (the
     "Effective Date").

     Upon the Bank Closing, interest accruing under this Line of Credit prior to
the Bank Closing shall be adjusted retroactively to reflect the Band Interest
Rate. ABase Rate@ means the lowest Prime Rate as is published daily in The Wall
Street Journal. In the event that the Wall Street Journal ceases to publish the
Prime Rate, then the holder hereof may in its reasonable discretion select some
other generally recognized comparable indicator of the national Prime Rate.

     6. Repayment.

          (I)  If the Commencement Date occurs, the Band shall, beginning on
               the 15th day of the month following such Commencement Date, repay
               the amount of principal and accrued interest outstanding
               hereunder as of such Commencement Date in equal monthly payments
               of principal and interest in an amount sufficient to amortize
               such principal and accrued interest over a sixty (60) month
               period at the Band Interest Rate, and shall thereafter continue
               to make payments in such amount on the 15th day of each
               succeeding month to and including the fifteenth day of the
               sixtieth month following such Commencement Date; provided that
               all remaining principal and interest shall in any event be due
               and payable on the fifteenth day of the sixtieth month following
               such Commencement Date.

          (II) If the Commencement Date does not occur, principal and interest
               shall be repayable to the extent and in the manner provided in
               the Development Agreement; provided that payments shall in any
               event be due and made only from the sources specified in Sections
               14.3 and 14.4 of the Development Agreement. If Gaming commences
               at a Subsequent Gaming Facility and payment is due under this
               Agreement in accordance with the Development Agreement, the Band
               shall, beginning on the 15th day of the month following such
               commencement date, make equal monthly payments to Lakes of
               principal and interest in an amount sufficient to amortize the
               principal amount outstanding as of such commencement date over a
               sixty (60) month period at the Variable Interest Rate, and shall
               thereafter continue to make such payments on the 15th day of each
               succeeding month to and including the fifteenth day of the
               sixtieth month following such commencement date, when all
               remaining principal and interest shall be due and payable. As of
               the Effective Date of a change in the Base Rate, Lakes shall
               adjust the monthly installments of principal and interest as of


                                       2

<PAGE>

               the installment next following the Effective Date so that the
               then unpaid principal balance would be amortized in full at the
               revised Variable Interest Rate five years after such commencement
               of gaming. Lakes shall promptly notify the Band in writing of any
               changes in the Base Rate and in the installment payment due.

     7. Prepayment. This Line of Credit may be prepaid at any time without
penalty. This Note shall also be subject to prepayment as and when required
under the terms of any Transaction Documents.

     8. [intentionally omitted]

     9. Limited Recourse. The obligations of the Band under this Line of Credit
and any related awards, judgments or decrees shall be payable solely out of
undistributed or future Net Revenues of the Enterprise and shall be a Limited
Recourse obligation of the Band, with no recourse to tribal assets other than
the limited assets of the Band specified in the definition of Limited Recourse
and Section 14.3(a) of the Development Agreement

     10. Default; Acceleration. All outstanding principal together with accrued
interest shall become immediately due and payable in full, subject to the
limitations on recourse provided above, upon default in the payment of principal
or interest due under this Line of Credit if such default is not remedied within
thirty (30) days after receipt by the Band of written notice thereof as provided
in the Development Agreement.

     11. Band's Waiver of Sovereign Immunity and Consent to Suit. The Band
expressly waives its sovereign immunity from suit for the purpose of permitting
or compelling arbitration to enforce this Line of Credit as provided in Article
14 of the Development Agreement and consents to be sued in the United States
District Court for the Western District of Michigan - Southern Division, the
United States Court of Appeals for the Sixth Circuit, and the United States
Supreme Court for the purpose of compelling arbitration or enforcing any
arbitration award or judgment arising out of this Line of Credit. If the United
States District Court lacks jurisdiction, the Band consents to be sued in the
Michigan State Court system for the same limited purpose. The Band waives any
requirement of exhaustion of tribal remedies. Without in any way limiting the
generality of the foregoing, the Band expressly authorizes any governmental
authorities who have the right and duty under applicable law to take any action
authorized or ordered by any such court, and to take such action, including
without limitation, repossessing or foreclosing on any real property not in
trust, or otherwise giving effect to any judgment entered; provided, however,
that liability of the Band under any judgment shall always be Limited Recourse,
and in no instance shall any enforcement of any kind whatsoever be allowed
against any assets of the Band other than the limited assets of the Band
specified in the definition of Limited Recourse and Section 14.3(a) of the
Development Agreement. The Band appoints the Chairman of the Pokagon Council and
the Secretary of the Pokagon Council as its agents for service of all process
under or relating to the Agreements. The Band agrees that service in hand or by
certified mail, return receipt requested, shall be effective for all purposes
under or relating to the Agreements if served on such agents.


                                        3

<PAGE>

     12. Arbitration. All disputes, controversies or claims arising out of or
relating to this Line of Credit shall be settled by binding arbitration as
provided in Article 14 of the Development Agreement.

     13. Business Purposes; Applicable Law. This Line of Credit evidences a loan
for business and commercial purposes and not for personal, household, family or
agricultural purposes, and shall be governed by the law of the State of Michigan
and, to the extent applicable, federal law.

     14. Notices. All notices under this Line of Credit shall be given in
accordance with Section 15.4 of the Development Agreement; except that copies of
draw requests need not be sent to attorneys.

     15. Defined Terms. Capitalized terms used herein shall have the same
meanings assigned to them in the Development Agreement, and, if not defined in
the Development Agreement, in the Management Agreement between the Band and
Lakes, as amended.

     16. Miscellaneous.

          a. Time is of the essence.

          b. The benefits and obligations of this Note shall inure to and be
          binding upon the parties hereto and their respective successors and
          assigns, provided that any succession or assignment is permitted under
          the Development Agreement.

          c. Waiver of any one default shall not cause or imply a waiver any
          subsequent default.

          d. This Agreement, together with documents listed in Section 15.17 of
          the Development Agreement, as each has been amended to date, sets
          forth the entire agreement between the parties hereto with respect to
          the subject matter hereof. All agreements, covenants, representations,
          and warranties, express or implied, oral or written, of the parties
          with respect to the subject matter hereof are contained herein and
          therein. This Agreement shall not be supplemented, amended or modified
          by any course of dealing, course of performance or uses of trade and
          may only be amended or modified by a written instrument duly executed
          by officers of both parties.

          e. This Agreement has been executed and delivered as a complete
          amendment and restatement in its entirety of that certain Non-Gaming
          Land Acquisition Line of Credit dated as of July 8, 1999 by and
          between the Band and Lakes Gaming, Inc., as assigned by Lakes Gaming,
          Inc. to and assumed by Lakes pursuant to the Assignment Agreement, as
          amended by First Amendment dated as of October 16, 2000.


                                        4

<PAGE>

                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Its: Council Chairman


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Its: Secretary


                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                        5

<PAGE>

                                    EXHIBIT A

                                  DRAW REQUEST

     The Pokagon Band of Potawatomi Indians (the "Band") requests that Great
Lakes Gaming of Michigan, LLC. ("Lakes") advance $_____________________ under
the Non-Gaming Acquisition Line of Credit (the "Line of Credit"). The Band
certifies that the amounts drawn under this Request will be used in accordance
with 3 of the Line of Credit and 8.5 of the Development Agreement, as per the
attached itemization.

     Advances should be made [pursuant to wire transfer instructions previously
given to Lakes] [as follows:______________________________________________].

Dated:___________________               THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By:
                                            ------------------------------------
                                        Its: Council Chairman


                                        By:
                                            ------------------------------------
                                        Its: Secretary


                                        6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.77
<SEQUENCE>12
<FILENAME>c92713exv10w77.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.77

                                                   DATED AS OF DECEMBER 22, 2004

                                    [FORM OF]
                           DOMINION ACCOUNT AGREEMENT

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
December 22, 2004 (the "Effective Date"), between the POKAGON BAND OF POTAWATOMI
INDIANS, a federally recognized Indian Tribe (the "Borrower"), GREAT LAKES
GAMING OF MICHIGAN, LLC, a Minnesota limited liability company f/k/a Great Lakes
of Michigan, LLC ("Great Lakes") and _________________________ BANK, as Agent
for and on behalf of Great Lakes (the "Agent");

                                   WITNESSETH:

     WHEREAS, the Borrower has the inherent power to conduct and regulate gaming
on its lands, subject only to the restrictions imposed by the Indian Gaming
Regulatory Act of 1988, Public Law 100-497 ("IGRA"); and

     WHEREAS, in accordance with IGRA, the Borrower has entered into a
Tribal-State Compact for the Conduct of Class III Gaming within the State of
Michigan; and

     WHEREAS, the Borrower operates a gaming facility in New Buffalo, Michigan
(the "Casino") on lands the U.S. Department of the Interior has taken into
trust; and

     WHEREAS, the Borrower and Lakes Entertainment, Inc., f/k/a Lakes Gaming,
Inc. ("Lakes") have previously entered into a Development Agreement dated as of
July 8, 1999, as assigned by Lakes to Great Lakes pursuant to that certain
Assignment and Assumption Agreement dated October 16, 2000, by and among the
Borrower, Great Lakes and Lakes, and as amended and restated by that certain
First Amended and Restated Development Agreement dated October 16, 2000 by and
between the Borrower and Great Lakes, and as amended and restated by that
certain Second Amended and Restated Development Agreement dated as of December
22, 2004 by and between the Borrower and Great Lakes (collectively and as
heretofore and hereafter amended, the "Development Agreement"), pursuant to
which Great Lakes has agreed to, among other things, make certain loans to the
Borrower in connection with the development, construction and equipping of the
Casino and certain related amenities; and

     WHEREAS, the Borrower and Lakes Gaming, Inc. ("Lakes") have previously
entered into a Management Agreement dated as of July 8, 1999, as assigned by
Lakes to Great Lakes pursuant to that certain Assignment and Assumption
Agreement dated October 16, 2000, by and among the Borrower, Great Lakes and
Lakes, and as amended and restated by that certain First Amended and Restated
Management Agreement dated October 16, 2000 by and between the Borrower and
Great Lakes, and as amended and restated by that certain Second Amended and
Restated Management Agreement dated as of December 22, 2004 by and between the
Borrower and Great Lakes (collectively and as heretofore and hereafter amended,
the "Management


                                       1

<PAGE>

Agreement"), pursuant to which the Borrower and Great Lakes have agreed that
Great Lakes shall manage the Casino and certain related amenities as more
specifically set forth therein; and

     WHEREAS, Borrower and Great Lakes desire to enter into this Agreement in
order to provide for the receipt, deposit and disbursement of Gross Revenues
derived by the Borrower with respect to the Enterprise, and to grant Great Lakes
a first priority security interest in such revenues and certain related
collateral (subject to subordination as provided herein), each for the purposes
and in accordance with the terms set forth herein.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the
Development Agreement or the Management Agreement, as applicable.

     Section 1.2 Defined Terms. The following terms when used herein shall have
the following meanings:

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Michigan are required or authorized
by law to remain closed.

     "Collateral" means the Enterprise Revenues and the Dominion Account and the
cash and/or cash equivalents and other investment property deposited or credited
thereto from time to time, each whether now or hereafter owned, existing,
arising or acquired, and including any proceeds of the foregoing.

     "Dominion Account" means that certain Account No. __________ owned and
maintained by the Borrower with the Agent formed by and subject to the terms of
this Agreement together with any replacement account related thereto.

     "Enterprise" shall have the meaning assigned to such term in the Management
Agreement and which shall include, without limitation, the Casino.

     "Enterprise Revenues" shall mean the Gross Revenues (as such term is
defined in the Management Agreement) of the Enterprise.

     "Obligations" shall mean all amounts owing by the Borrower to Great Lakes
with respect to the Lakes Development Note, the Lakes Facility Note, the
Non-Gaming Land Acquisition Line of Credit and, the Transition Loan Note, the
Minimum Payments Note, the Working Capital Advance Note and any other
Transaction Documents (as each of such terms are defined in the


                                       2

<PAGE>

Development Agreement) and the Management Fees (as such term is defined in the
Management Agreement), together with any costs, expenses or other amounts
hereafter owing by the Band to Agent or Great Lakes pursuant to the terms of
this Agreement, each of the foregoing, whether now existing or hereafter
incurred or arising.

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 Creation of Dominion Account/Legal Opinion. There is hereby
created with the Agent the Dominion Account in the name of Borrower, which
account is subject to the terms and conditions of this Agreement. The Agent
shall deposit into the Dominion Account, as received, each and every payment of
Enterprise Revenues or proceeds thereof delivered to the Agent in accordance
with Section 2.2. Notwithstanding any other term or provision contained herein
or in the Development Agreement (other than Section 9.2.1(j) thereof) or
Management Agreement, only Great Lakes shall have the authority to make
withdrawals from or exercise any other rights with respect to the Dominion
Account; but Great Lakes' rights with regard to the Dominion Agreement shall be
terminated as provided in, and shall be subject to, the provisions of Sections
9.2.1(j) of the Development Agreement. Agent hereby acknowledges the security
interest in the Collateral granted to Great Lakes by Borrower. On the date of
execution of this Agreement, the Borrower shall cause to be delivered to Great
Lakes (a) such financing statements and similar documents necessary to perfect
the security interest granted to Great Lakes pursuant to Section 3.1 hereof (the
"Financing Statements") and (b) a legal opinion in form and substance reasonably
acceptable to Great Lakes, opining as to the due authorization, execution, and
delivery of this Agreement and the Financing Statements by the Band, together
with opinions as to the Band's sovereign immunity waiver and noncontravention
with laws and agreements.

     Section 2.2 Deposit of Enterprise Revenues. The Borrower agrees that it
will direct the Manager and any other applicable parties to cause all Enterprise
Revenues to be transferred to the Agent on each Business Day for deposit into
the Dominion Account. If any Enterprise Revenues are initially deposited in
collection bank(s) (which shall be permitted provided the collecting bank(s)
execute and deliver the Joinder Agreement attached hereto as Exhibit A with the
Borrower, Great Lakes and the collecting banks in form mutually acceptable to
each of such parties), the Borrower shall transfer or cause to be transferred
all such Enterprise Revenues or other Collateral, consisting of cash and other
collected funds directly by wire transfer of immediate available funds to the
Dominion Account, on each Business Day. In the event that the Borrower receives
any payment that should have been deposited into the Dominion Account as
provided pursuant to this Agreement, the Borrower agrees that it will hold such
amounts in trust for the benefit of Great Lakes, and shall not commingle any
such funds with any of its funds or other property and shall immediately
transfer such amounts to the Agent for deposit into the Dominion Account. The
Borrower agrees that the Agent's officers, agents and employees are irrevocably
authorized by it to endorse for payment to the Agent any instruments received by
the Agent for deposit into the Dominion Account.


                                       3

<PAGE>

     Section 2.3 Withdrawals from Dominion Account. Great Lakes acknowledges and
agrees that during each calendar month it shall make such transfers from the
Dominion Account to and for the benefit of each of the Borrower and Great Lakes
in such amounts, for such purposes and as and when required pursuant to the
terms of (a) Sections 4.19.6 and 5.5 of the Management Agreement, including,
without limitation, to the extent of available cash proceeds, payment to the
Borrower of the Monthly Distribution Payment, and (b) Section 9.2.1(j) of the
Development Agreement. Great Lakes further acknowledges and agrees that
transfers from the Dominion Account to Disbursement Accounts under Section
4.19.6 of the Management Agreement (other than Monthly Distribution Payments to
the Band) and payment of the Minimum Guaranteed Monthly Payment shall be timely
made notwithstanding any provision of this Dominion Agreement, any Band Event of
Default or any Event of Default under this Agreement. In connection with any
such withdrawals and transfers and any other aspects of the Dominion Account,
the Agent shall acknowledge and comply with only the withdrawal requests and
other directions received from Great Lakes, except as provided in an arbitration
award in an arbitration to which Great Lakes and the Borrower are parties.

     Section 2.4 Interest. The Dominion Account shall bear interest, and subject
to Section 3.2 of this Agreement, funds in that account shall be invested in
money market or other cash equivalent assets that are reasonably acceptable to
Borrower and Great Lakes. All interest accruing with respect to amounts now or
hereafter on deposit with respect to the Dominion Account shall be deposited
into the Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 Monthly Reporting. On or before the ___ Business Day of each
calendar month, the Agent shall provide to the Borrower and Great Lakes an
account statement with respect to the Dominion Account reflecting all deposits
to, withdrawals from and charges credited against the Dominion Account, and
specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 Grant of the Security Interest. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Great
Lakes and grants a continuing security interest to Great Lakes all of the
Borrower's right, title and interest in and to the Collateral. Such security
interest shall be subordinated as and when required by and in accordance with
Sections 9.2.1(d) and (j) of the Development Agreement, and Great Lakes agrees
to execute and deliver subordination agreements reasonably acceptable to the
senior parties described in those subsections of the Development Agreement. The
grant of a security interest in the Collateral as security for the Minimum
Payments Note does not alter the limitations on Great Lakes' limited right to
recoup Minimum Guaranteed Payment Advances as provided in such Note and in
Section 5.6.2 of the Management Agreement, and Great Lakes shall only be
entitled to payment on such Note from Collateral to the extent that it is
entitled to receive such recoupment under the Note and Section 5.6.2 but does
not receive such recoupment.


                                       4

<PAGE>

     Section 3.2 Control. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Great Lakes
concerning the Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept investment
instructions with respect to the Collateral held in the Dominion Account at the
direction of Borrower or its authorized representatives and Great Lakes until
such time as Great Lakes delivers a written notice to Agent and the Borrower in
accordance with Section 5.2 that Great Lakes is thereby exercising exclusive
control over the Account ("Notice of Exclusive Control"), provided that the
proceeds of any such investments are deposited in or credited to the Dominion
Account contemporaneously with such transaction; and provided, further, such
investment instructions shall not affect the type or nature of Collateral for
attachment and perfection purposes under the Michigan Uniform Commercial Code
(as may be amended from time to time). Without limiting the foregoing, all
investments that are not in the form of cash credited to the Dominion Account
shall be legally titled in the name of the Agent (and not in the record name of
either the Borrower or Lakes), as a securities intermediary and for the benefit
each of the Borrower and Great Lakes in accordance with this Agreement. In
addition, no investments shall be subject to or held in a margin account. After
Agent receives the Notice of Exclusive Control, it will immediately cease
complying with any investment instructions concerning the Dominion Account
originated by Borrower or its representatives and shall comply with only such
investment instructions as are originated by Great Lakes.

     Section 3.3 Duration. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Great Lakes until
cancelled or terminated by Great Lakes under a written cancellation instrument
signed by such party or except as otherwise provided in an arbitration award in
an arbitration to which Great Lakes and the Borrower are parties. Great Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when required pursuant to the applicable terms and provisions of the
Development Agreement and Management Agreement.

     Section 3.4 Transfers free of Security Interest. Without modifying the
terms of Section 2.1 and 2.3 hereof, all funds transferred from the Dominion
Account as provided herein, including without limitation any funds transferred
by or at the direction of Great Lakes to Disbursement Accounts pursuant to
Sections 4.19.6, 5.3 and 5.5 of the Management Agreement, as well as all Minimum
Guaranteed Monthly Payments, Monthly Distribution Payments, and other funds
distributed to the Borrower, shall be free of the security interest of Great
Lakes immediately upon their transfer from the Dominion Account.

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Great Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or


                                        5

<PAGE>

Great Lakes may reasonably request, in order to perfect and protect the security
interests granted hereby or, after an Event of Default, to enable the Agent or
Great Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Great Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Great
Lakes, or Great Lakes to file this Agreement (if the Borrower shall fail to
provide an appropriate financing statement within ten (10) business days after
request) or one or more continuation statements in respect thereof, relating to
all or any part of Dominion Account and the Enterprise Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Dominion Account and Enterprise Revenues or any part thereof shall
be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award to which Great Lakes and the Borrower are parties.

     (c) Financial Statements. After the occurrence of a Band Event of Default
and termination of the Management Agreement, the Borrower will furnish the
following to Great Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each fiscal year,
               financial and operating statements of the Enterprise for such
               month (and year-to-date) or fiscal year, as applicable, including
               a balance sheet and a profit and loss statement, all in
               reasonable detail and conforming to generally accepted accounting
               principles for casinos. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Great
               Lakes agrees that any such information, as well as any other
               information it may receive from Borrower relating to the
               Enterprise, shall be and remain subject to the provisions of
               Section 15.13 of the Development Agreement.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Compact for each
               calendar year during the term hereof, with all schedules
               attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager


                                        6

<PAGE>

               of the Enterprise substantially in the form set forth in Exhibit
               B stating that, except as explained in reasonable detail in such
               certificate, all Gross Revenues with respect to the Enterprise
               have been deposited into the Dominion Account for the period
               covered by such financial statement. If such certificate
               discloses an exception to such certification, such certificate
               shall set forth what action the Borrower has taken or proposes to
               take with respect thereto.

     (d) Insurance. At such time as Great Lakes shall no longer be the Manager
of the Enterprise, the Borrower shall cause to be maintained, insurance as
required by the Management Agreement (except that Great Lakes shall not be a
named insured or additional insured but will be named as a certificate holder if
permitted by the insurer without granting an insurable interest). Upon request,
the Borrower shall provide to the Agent and Great Lakes certificates of
insurance or copies of insurance policies evidencing that such insurance is in
effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days after written notice thereof has been sent to the Borrower by Great
Lakes or Agent.

     (c) A Band Event of Default shall occur.

     Section 5.2 Remedies on Default. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period and, if arbitration is timely demanded, after entry of an
arbitrator's award finding that an Event of Default has occurred, if such
default is not cured within any applicable cure period, Great Lakes may
thereafter give Agent and the Borrower a Notice of Exclusive Control, and Agent
(for and on behalf and at the direction of Great Lakes) or Great Lakes, as
applicable, shall be entitled to pay to Great Lakes from the Dominion Account
all amounts otherwise payable to the Borrower with respect to the Monthly
Distribution Payment, and to apply the same towards the repayment of the
Obligations (subject, as to the Minimum Payments Note, to the provisions of
Section 3.1), and to endorse in the name of the Borrower any checks, drafts,
notes or other instruments or documents received in payment of or on account of
the Enterprise Revenues or other Collateral; and any such proceeds so received
and prepaid shall be applied to installments of principal on the Obligations in
the inverse order of their maturity; and provided further that Great Lakes may


                                        7

<PAGE>

obtain any injunctive or other relief as is necessary for the enforcement of
this Agreement and the terms and provisions set forth herein; PROVIDED, HOWEVER,
that any and all remedies of Great Lakes shall be Limited Recourse (as defined
in the Development Agreement); and provided further that, notwithstanding any
term or provision contained herein, Great Lakes shall take all steps necessary
to continue to permit and cause the necessary withdrawals and transfers to be
made from the Dominion Account in accordance with Section 2.3 hereof, with the
exception that Great Lakes shall be entitled to retain all amounts otherwise
payable to the Borrower with respect to the Monthly Distribution Payment and
apply the same towards the repayment of the Obligations; and in no event shall
Great Lakes exercise any remedy against the Borrower (excluding third parties)
with respect to the Enterprise Revenues other than such remedies as are
necessary to require their deposit into the Dominion Account or seeking an
accounting and turnover of any Enterprise Revenues held in trust by the Borrower
as required under Section 2.2 hereof; and, as to third parties, in no event
shall Great Lakes seek to recover funds paid to third parties through transfers
from the Dominion Account in accordance with Section 2.3. Borrower agrees that,
to the extent notice of sale shall be required by law with respect to the
disposition of any Collateral, at least ten (10) calendar days notice to the
Borrower of the time and place of any public sale or the time after which a
private sale is to be made shall constitute reasonable notification.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default in connection with
the exercise of any remedy hereunder, including reasonable attorneys' fees, are
the costs, expense and responsibility of the Borrower and shall be paid from the
Dominion Account notwithstanding any other terms, provisions or priorities set
forth in this Agreement.

     Section 5.3 Waivers; Remedies. Any waiver given by Great Lakes hereunder
shall be effective if it is in writing and only in the specific instance and for
the specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Great Lakes. All
rights and remedies of the Agent and/or Great Lakes shall be cumulative and may
be exercised singularly in any order or concurrently, at the option of Great
Lakes, and the exercise or enforcement of any such right or remedy shall neither
be a condition to nor a bar to the exercise or enforcement of any other.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 Agent's Rights and Duties.

     (a) The Agent's sole agency and duty with respect to Great Lakes under this
Agreement is for the purposes of perfecting Great Lakes' pledge and security
interest in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Great Lakes except to the extent expressly set forth
herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.


                                        8

<PAGE>

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be furnished
to the Agent, the Agent shall be under a duty to examine the same to determine
whether or not they conform to the requirements hereof.

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own willful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Great Lakes has not issued a Notice of Exclusive Control)
and Great Lakes, the Agent shall have no duty to the Borrower as to any
Enterprise Revenues or other Collateral or as to the taking of any necessary
steps to preserve rights against any Persons or any other rights pertaining to
any Enterprise Revenues or other Collateral.

     Section 6.2 Indemnification. The Borrower and Great Lakes jointly and
severally agree to hold the Agent harmless and to defend the Agent against any
claims, causes of actions or damages arising out of any claim against the Agent
by any Person with respect to amounts due to such Person from sums paid to the
Agent hereunder, other than with respect to claims arising out of the willful
misconduct, gross negligence, by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement.

     Section 6.3 Fees and Expenses. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent on demand for all out-of-pocket expenses
(including in each case all filing


                                       9

<PAGE>

and recording fees and taxes and all reasonable fees and expenses of counsel)
incurred or expended by the Agent in connection with the creation, perfection,
satisfaction, foreclosure or enforcement of the security interests granted
hereby and the preparation, administration and enforcement of this Agreement.

     Section 6.4 Certain Rights of Agent. Except as otherwise provided in
Section 6.1:

     (a) The Agent may rely and shall be protected in acting or remaining from
acting upon certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting any action hereunder, the Agent (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a certificate of an officer of Great Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document, but the
Agent, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit.

     Section 6.5 Agent Required, Eligibility. There shall at all times be a
Agent hereunder which shall be a corporation organized and doing business under
the laws of the United States of America or of any State, having a combined
capital, undivided profits and surplus of at least $500,000,000.00. If at any
time the Agent shall cease to be eligible in accordance with the provisions of
this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

     Section 6.6 Resignation and Removal, Appointment of Successor.

     (a) No resignation or removal of the Agent and no appointment of a
successor Agent pursuant to this Article shall become effective until the
acceptance of appointment by the successor Agent under Section 6.7 and execution
by such successor Agent of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Great Lakes. If an instrument of
acceptance by a successor Agent shall not have been delivered to the Agent
within thirty (30) days after the giving of such notice of resignation, the
resigning Agent may petition any court of competent jurisdiction for the
appointment of a successor Agent.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower and Great Lakes delivered
to the Agent.


                                       10

<PAGE>

     (d) If the Agent shall resign or be removed for any cause, the Borrower
(provided a Notice of Exclusive Control has not been issued by Great Lakes to
the Agent) or Great Lakes (if a Notice of Exclusive Control has been issued by
Great Lakes to the Agent) shall promptly appoint a successor Agent; in each case
subject to the reasonable approval of the other party.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a successor Agent by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Great Lakes. Each notice shall include the name of the successor Agent and the
address of its principal corporate trust office.

     Section 6.7 Acceptance of Appointment by Successor. Every successor Agent
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Great Lakes, and to the retiring Agent an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Great Lakes or the successor Agent, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Agent all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such successor Agent all property and money held by such retiring Agent
hereunder. Upon request of any such successor Agent, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such successor Agent for all such rights, powers and trusts.

     Section 6.8 Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 No Set-Off. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Great Lakes or by any other Person, other than amounts due pursuant to Section
6.3.

     Section 6.10 Conflicts. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Dominion Account, the terms of this Agreement shall control.

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. Notices. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,


                                       11

<PAGE>

registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

To the Borrower: Pokagon Band of Potawatomi Indians
                 58620 Sink Road
                 Dowagiac, Michigan 49047
                 Attention: Chairman, Tribal Council

                 With a Copy To:

                 Michael Phelan, General Counsel
                 Pokagon Band of Potawatomi Indians
                 P.O. Box 180
                 Dowagiac, MI 49047

                 and

                 Daniel Amory, Esq.
                 Drummond Woodsum & MacMahon
                 P.O. Box 9781
                 245 Commercial Street
                 Portland, Maine 04104-5081

To Agent:

                 Attn:

                 With a Copy To:

                 Attn:

To Great Lakes:  Great Lakes Gaming of Michigan, LLC
                 130 Cheshire Lane
                 Minnetonka, Minnesota 55305
                 Attn: Timothy J. Cope, President

                 With a Copy To:

                 Maslon Edelman Borman & Brand, LLP
                 3300 Wells Fargo Center
                 90 South Seventh Street
                 Minneapolis, Minnesota 55402-4140
                 Attn: Neil Sell, Esq.


                                       12

<PAGE>

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 Severability. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition without invalidating the remaining provisions
hereof, provided, however that where the provisions of any such applicable law
may be waived, they hereby are waived by the Parties to the fullest extent
permitted by law to the end that this Agreement shall be deemed to be a valid
and binding agreement in accordance with its terms.

     Section 7.3 Survival. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until all Obligations
shall have been paid and performed in full.

     Section 7.4 Captions. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 Binding Effect. Subject to any limitations on assignment set
forth in the Development Agreement, this Agreement shall be binding upon and
inure to the benefit of the parties hereto, their respective successors and
assigns.

     Section 7.6 Amendments. This Agreement may not be amended, modified,
waived, canceled or terminated, except in writing executed by all of the parties
hereto.

     Section 7.7 Rights, Powers, Waivers, etc. Each and every right, remedy and
power granted to Agent and Great Lakes hereunder or to Great Lakes under the
Obligations shall be cumulative and may be exercised by the Agent or Great
Lakes, as applicable, from time to time concurrently or independently as often
and in such order as the Agent or Great Lakes may deem expedient; provided,
however, that any and all remedies of the Agent and Great Lakes shall be Limited
Recourse (as defined in the Development Agreement). No failure on the part of
the Agent or Great Lakes to exercise and no delay in exercising, any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any power or right preclude any other or further exercise
thereof of any other power or right.

     Section 7.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction; Limitation on Damages. This Agreement constitutes the Dominion
Account Agreement as defined and referred to in the Development Agreement and
the Management Agreement. As such and without limiting the scope of such
agreements, the provisions of Article XIV of the Development Agreement and
Article XIII of the Management Agreement apply to this Agreement and are hereby
incorporated by reference, including, without limitation, the limited sovereign
immunity waiver, limitations on recourse and arbitration provisions contained
therein.


                                       13

<PAGE>

     Section 7.10 Agreements Control. In the event of inconsistency between the
Development Agreement or the Management Agreement and this Agreement, the
Development Agreement or the Management Agreement shall control; provided,
however, the duties and obligations of Agent shall be governed solely by this
Agreement.

     Section 7.11 Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the internal law of the State of
Minnesota (including the Minnesota Uniform Commercial Code as in effect from
time to time, which Code shall apply without regard to any provision therein
that would otherwise provide that such Code is inapplicable to the Band, whether
based upon the fact that the Band is deemed to be a governmental body or
otherwise); except that, to the extent that Minnesota law shall not recognize or
provide for the creation, perfection or first priority of any security interest
of the Secured Party on any Collateral that is recognized under the Tribal UCC
Code, then the Tribal UCC Code shall apply thereto.

         [The remainder of this page has been intentionally left blank.]


                                       14

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, in
counterparts, as of the Effective Date.

                                        "BORROWER"

                                        POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Name: John Miller
                                              ----------------------------------
                                        Its: Tribal Chairman


                                        By: /s/ Daniel Rapp
                                            ------------------------------------
                                        Name: Daniel Rapp
                                              ----------------------------------
                                        Its: Secretary

                                        "AGENT"

                                        [__________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------


                                        "GREAT LAKES"

                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President


                                      15

<PAGE>

                                   EXHIBIT "A"

                                Joinder Agreement

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
_________________, a ___________________ ("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated ____________, 200__ (as amended or otherwise modified from time to time,
the "Dominion Agreement") by and among the Pokagon Band of Potawatomi Indians
("Borrower"), Great Lakes Gaming of Michigan, LLC f/k/a Great Lakes of Michigan,
LLC ("Great Lakes") and _____________________ ("Agent"), the Collecting Bank,
must execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Great Lakes to continue to
provide credit accommodations and management services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Successor Agent hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Agreement.

     3.   Collecting Bank will be from time to time receiving Enterprise
          Revenues from the Borrower which shall be deposited into account no.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to the "Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each business day all collected
          Enterprise Revenues and other collateral delivered to or received by
          it shall be transferred directly to the Agent in immediately available
          funds.

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Great Lakes is the holder of a prior
          perfected security interest in the Enterprise Revenues notwithstanding
          their deposit into the Collection Bank


                                        i

<PAGE>

          Account or their other transfer to the Collecting Bank, and hereby
          waives any conflicting security interest or rights of set off in or to
          any of such Enterprise Revenues and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Michigan and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                          Bank


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------


                                       ii

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of the Pokagon Band of Potawatomi Indians
(the "Borrower"), do hereby provide this Compliance Certificate in connection
with that certain Dominion Account Agreement dated ___________, 200___ (the
"Dominion Agreement"), by and between the Borrower, Great Lakes Gaming of
Michigan, LLC, and ___________ Bank (the "Bank"); capitalized terms used but not
otherwise defined herein shall have the meaning set forth in the Dominion
Agreement.

     I certify that as of the date hereof:

     1)   All Gross Revenues arising from the operations of the Enterprise from
          ________________, 200__ to ______________, 200__ have been deposited
          into the Dominion Account with the Bank.

                                        POKAGON BAND OF POTAWATOMI INDIANS


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its Chief Financial Officer


                                       iii
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.78
<SEQUENCE>13
<FILENAME>c92713exv10w78.txt
<DESCRIPTION>SECOND AMENDMENT TO ACCOUNT CONTROL AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.78

                                                               EXECUTION VERSION

                  SECOND AMENDMENT TO ACCOUNT CONTROL AGREEMENT

     This Agreement is made as of the 22nd day of December, 2004, by and among
Great Lakes Gaming of Michigan, LLC, a Minnesota limited liability company
("Great Lakes"), Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc., a
Minnesota corporation ("Lakes"), the Pokagon Band of Potawatomi Indians (the
"Band") and U.S. Bank National Association, f/k/a Firstar Bank, N.A.
("Firstar").

                                   WITNESSETH:

     WHEREAS, the Band and Lakes entered into a Development Agreement dated as
of July 8, 1999 (the "1999 Development Agreement") and a Management Agreement
dated as of July 8, 1999 (the "1999 Management Agreement"; collectively, with
the 1999 Development Agreement, the "1999 Agreements"), pursuant to which the
Band engaged Lakes to, among other things, assist the Band in the design,
development, construction and management of a gambling casino and certain
related amenities (as defined in the 1999 Development Agreement, the
"Facility"); and

     WHEREAS, pursuant to the 1999 Development Agreement Lakes agreed to make
certain payments and advances to the Band, including without limitation the
Transition Loan, the Lakes Development Loan and the Non-Gaming Land Acquisition
Line of Credit (collectively the "Lakes Loans"), and the Scholarship Program
Fee, and has agreed to perform development services with regard to the Facility,
all on the terms set out in that Agreement; and

     WHEREAS, pursuant to the 1999 Management Agreement Lakes agreed to manage
the Facility on the terms set out in that Agreement; and

     WHEREAS, Lakes assigned its rights and obligations under the 1999
Agreements to Great Lakes pursuant to an Assignment and Assumption Agreement
dated as of October 16, 2000, subject to the terms and conditions set out in
that Agreement; and

     WHEREAS, the 1999 Agreements were amended and restated by First Amended and
Restated Development Agreement dated as of October 16, 2000 and by First Amended
and Restated Management Agreement dated as of October 16, 2000 (the "First
Amended and Restated Agreements"); and

     WHEREAS, the obligations of Lakes and Great Lakes to the Band under the
First Amended and Restated Agreements were secured by a Pledge and Security
Agreement between Lakes and the Band (the "Security Agreement") and by an
Account Control Agreement among Lakes, the Band and Firstar (the "Control
Agreement"), each dated as of July 8, 1999 and as each was amended by first
amendments dated as of October 16, 2000; and

<PAGE>

     WHEREAS, Great Lakes, Lakes and the Band have entered into a Second Amended
and Restated Development Agreement dated as of December 22, 2004 and a Second
Amended and Restated Management Agreement dated as of December 22, 2004 (the
"Second Amended and Restated Agreements"); and

     WHEREAS, the parties wish to amend the Control Agreement to reflect the
execution of the Second Amended and Restated Agreements, and to provide that the
Control Agreement will secure the obligations of Lakes and Great Lakes to the
Band under the Second Amended and Restated Agreements;

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

1.   Recitals True. The above recitals are true.

2.   Defined Terms. Capitalized terms used but not otherwise defined herein and
     defined in the Security Agreement shall have the same meaning herein as
     therein.

3.   Assets in Account. Firstar represents that the value and composition of the
     assets in the Account as of December 22, 2004 are as shown on the attached
     Schedule I.

4.   Amendment to Control Agreement. The Control Agreement is amended as
     follows:

     a.   The section entitled "Background" is deleted and replaced in its
          entirety with the following:

               "Lakes and Great Lakes have granted Band a security interest
               pursuant to a Pledge and Security Agreement dated July 8, 1999,
               as amended by First Amendment dated as of October 16, 2000 and
               Second Amendment dated as of December 22, 2004 (the "Security
               Agreement"), in a securities account maintained by Bank for Great
               Lakes, and in all related property. Lakes entered into this
               Agreement, and Great Lakes is joining in this Agreement, to
               perfect the Band's security interest in that account and those
               assets."

     b.   The following definitions are amended so that each reads in its
          entirety as follows:

               "Development Agreement" means the development agreement dated as
               of July 8, 1999 between Lakes and the Band, as assumed by Great
               Lakes under the Assignment and Assumption Agreement dated as of
               October 16, 2000, and as amended and restated by First Amended
               and Restated Development Agreement dated as of October 16, 2000
               and by Second Amended and Restated Development Agreement dated as
               of December 22, 2004.


                                       2

<PAGE>

               "Band Notification of Lakes Default" means notification by the
               Band to Bank that either of the following conditions have been
               satisfied:

               (A)  A Manager Event of Default or a Lakes Event of Default has
                    occurred under the Agreements and is continuing; (b) either
                    (i) the time for Lakes to demand arbitration under the
                    Agreements has expired, or (ii) Lakes timely demanded
                    arbitration, and the arbitrator's award has found that a
                    Manager Event of Default or a Lakes Event of Default has
                    occurred; and (c) the Band is entitled to payment of the
                    property in the Account to the extent specified therein; or

               (B)  A Guaranty Event of Default, as defined in a Guaranty from
                    Lakes and LG&R to the Band dated October 16, 2000, as
                    amended by First Amendment dated as of December 22, 2004,
                    has occurred.

               The Band Notification of Lakes Default shall be in the form
               attached hereto as Exhibit A-1.

               "Firstar" shall mean Firstar Bank N.A, n/k/a U.S. Bank National
               Association, and its successors in interest.

     c.   The following definition is added:

               "Agreements" means the Development Agreement and the Second
               Amended and Restated Management Agreement between Great Lakes and
               the Band dated as of December 22, 2004.

5.   Reservation of Rights. By entering into this Agreement, the Band does not
     waive or affect any rights against Lakes under the Security Agreement or
     the Control Agreement.

6.   Warranties and Representations - Great Lakes and Lakes. Each of Great Lakes
     and Lakes warrants, represents and covenants to the Band that:

     a.   The Control Agreement and the Security Agreement each constitute the
          legal, valid and binding obligation of Great Lakes and Lakes, and are
          fully enforceable in accordance with their terms;

     b.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof will conflict with,
          or result in a breach of the terms, conditions or provisions of,
          constitute a default under or result in the creation of any lien,
          charge or encumbrance upon any property or assets of Lakes or Great
          Lakes under any agreement or instrument to which they or either of
          them is now a party or by which they may be bound; and

     c.   The Band has, and at all times until the termination of the Control
          Agreement in accordance with Section 8 thereof shall have, a first
          perfected security interest in the


                                        3

<PAGE>

          Account and all cash, financial assets and investment property
          credited to the Account.

7.   Warranties and Representations - Bank. Bank represents to the Band that
     Bank's representations in Section 1 of the Control Agreement are true and
     correct as of the date of this Agreement.

8.   Further Assurances. From time to time hereafter, Lakes, Great Lakes, the
     Band and Firstar will execute and deliver, or will cause to be executed and
     delivered, such additional instruments, certificates or documents, and will
     take all such actions, as may reasonably be requested by the other party or
     parties, for the purpose of implementing or effectuating the provisions of
     this Agreement.

9.   Governing Law. This Agreement shall be interpreted in accordance with the
     law of the internal law of Minnesota.

10.  Amendments, Assignments, Etc. Any provision of this Agreement may be
     amended if, but only if, such amendment is in writing and is signed by each
     of the parties hereto. No modification shall be implied from course of
     conduct. Great Lakes may not further assign its rights in the Account and
     its obligations under the Control Agreement without the written consent of
     the Band.

11.  Gender and Number; Counterparts. Whenever the context so requires the
     masculine gender shall include the feminine and/or neuter and the singular
     number shall include the plural, and conversely in each case. This
     Agreement may be executed in separate counterparts and said counterparts
     shall be deemed to constitute one binding document.

12.  Notices to Great Lakes. Great Lakes agrees that any notice or demand upon
     it shall be deemed to be sufficiently given or served if it is in writing
     and is personally served or in lieu of personal service is mailed by first
     class certified mail, postage prepaid, or be overnight mail or courier
     service, addressed to Great Lakes at the address of Lakes and with copies
     set forth in Section 12 of the Control Agreement.

13.  Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under this
     Agreement shall be subject to arbitration as provided in Section 14.2 of
     the Development Agreement; provided that any demand for arbitration shall
     be made within 30 days after a notice of default, denominated as such, is
     given under this Agreement. The Band's limited waiver of sovereign immunity
     in 'Sections 14.1 and 14.3 of the Development Agreement shall apply to this
     Agreement; provided that the liability of the Band under any judgment shall
     always be Limited Recourse, and in no instance shall any enforcement of any
     kind whatsoever be allowed against any assets of the Band other than the
     limited assets of the Band specified in the definition of Limited Recourse
     and Section 14.3(a) of the Development Agreement.

14.  Ratification. Except as expressly modified in this Agreement, the Control
     Agreement is ratified and confirmed and remains in full force and effect.


                                        4

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the 22nd day of December, 2004.

WITNESS:                                GREAT LAKES GAMING OF MICHIGAN, LLC


                                        BY: /s/ Timothy Cope
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        LAKES ENTERTAINMENT, INC., f/k/a LAKES
                                        GAMING, INC.


                                        BY: /s/ Timothy Cope
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        BY: /s/ John Miller
- -------------------------------------       ------------------------------------
                                            John Miller
                                        ITS: Council Chairman


                                        BY: /s/ Daniel Rapp
- -------------------------------------       ------------------------------------
                                            Daniel Rapp
                                        ITS: Secretary


                                        5

<PAGE>

                                        U.S. BANK NATIONAL ASSOCIATION, f/k/a
                                        FIRSTAR BANK, N.A.


                                        BY:
- -------------------------------------       ------------------------------------
                                        NAME:
                                              ----------------------------------
                                        ITS:
                                             -----------------------------------

Seen and consented to:


                                        LAKES GAMING AND RESORTS, LLC


                                        BY:
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        6

<PAGE>

                                   EXHIBIT A-1

                       BAND NOTIFICATION OF LAKES DEFAULT

TO: U.S. Bank National Association
    101 East Fifth Street
    St. Paul, MN 55101
    attn: Frank P. Leslie

     RE: DEFAULT UNDER CERTAIN AGREEMENTS BY AND BETWEEN THE POKAGON BAND OF
         THE POTAWATOMI INDIANS (THE "BAND") AND LAKES GAMING, INC. ("LAKES")

Dear Sir:

     (Note: Capitalized terms used herein without definition shall have the
meanings assigned to them in a certain Control Agreement (the "Control
Agreement") dated as of July 8, 1999 by and among the Band, Lakes and U.S. Bank
National Association, f/k/a Firstar Bank ("Bank"), as amended and restated by
First Amendment dated as of October 16, 2000 and by Second Amendment dated as of
December 22, 2004)

     Notice is hereby given to you under the Control Agreement that either of
the following conditions has been satisfied:

               (A)  A Manager Event of Default or a Lakes Event of Default has
                    occurred under the Agreements and is continuing; (b) either
                    (i) the time for Lakes to demand arbitration under the
                    Agreements has expired, or (ii) Lakes timely demanded
                    arbitration, and the arbitrator's award has found that a
                    Manager Event of Default or a Lakes Event of Default has
                    occurred; and (c) the Band is entitled to payment of the
                    property in the Account to the extent specified therein; or

               (B)  A Guaranty Event of Default, as defined in a Guaranty from
                    Lakes and LG&R to the Band dated October 16, 2000, as
                    amended by First Amendment dated as of December 22, 2004,
                    has occurred.

     You are hereby directed to:

          i.   immediately cease complying with Entitlement Orders or other
               directions concerning the Account originated by Lakes, whether
               pursuant to a Lakes Draw Request or otherwise;


                                        i

<PAGE>

          ii.  immediately cease purchasing or selling securities in the Account
               or making any distributions from the Account, except with the
               prior written consent of Band;

          iii. immediately cease distributing to Lakes interest and dividends on
               property in the Account; and

          iv.  not less than thirty (30) nor more than forty-five (45) days
               after your receipt hereof, and unless otherwise enjoined by an
               Order, liquidate all property in the Account and transfer the
               proceeds thereof and all interest, dividends and other income
               thereon to the following account by wire transfer:

                Amount:                 The entire proceeds of the Account
          (indicate which
           is applicable)                                  or
                                              $__________________________

          Wire to:

          Account Number:               ________________________________________
          Bank:                         ________________________________________
          ABA Number:                   ________________________________________
          Reference:                    ________________________________________

Dated: ___________, ______              THE POKAGON BAND OF POTAWATOMI INDIANS


                                        By:
                                            ------------------------------------
                                        Its: Council Chairman


                                        By:
                                            ------------------------------------
                                        Its: Secretary


                                       ii

<PAGE>

                                   SCHEDULE I

                                ACCOUNT STATEMENT


                                       iii
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.79
<SEQUENCE>14
<FILENAME>c92713exv10w79.txt
<DESCRIPTION>FIRST AMENDMENT TO ASSIGNMENT AND ASSUMPTION AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.79

                                                               EXECUTION VERSION

             FIRST AMENDMENT TO ASSIGNMENT AND ASSUMPTION AGREEMENT

     This Agreement is made as of the 22nd day of December, 2004, by and among
Great Lakes Gaming of Michigan, LLC, a Minnesota limited liability company
("Great Lakes"), Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc., a
Minnesota corporation ("Lakes"), and the Pokagon Band of Potawatomi Indians (the
"Band").

                                   WITNESSETH:

     WHEREAS, the Band and Lakes entered into a Development Agreement dated as
of July 8, 1999 (the "1999 Development Agreement") and a Management Agreement
dated as of July 8, 1999 (the "1999 Management Agreement"; collectively, with
the 1999 Development Agreement, the "1999 Agreements"), pursuant to which the
Band engaged Lakes to, among other things, assist the Band in the design,
development, construction and management of a gambling casino and certain
related amenities (as defined in the 1999 Development Agreement, the
"Facility"); and

     WHEREAS, pursuant to the 1999 Development Agreement Lakes agreed to make
certain payments and advances to the Band, including without limitation the
Transition Loan, the Lakes Development Loan and the Non-Gaming Land Acquisition
Line of Credit (collectively the "Lakes Loans"), and the Scholarship Program
Fee, and has agreed to perform development services with regard to the Facility,
all on the terms set out in that Agreement; and

     WHEREAS, pursuant to the 1999 Management Agreement Lakes agreed to manage
the Facility on the terms set out in that Agreement; and

     WHEREAS, Lakes assigned its rights and obligations under the 1999
Agreements to Great Lakes pursuant to an Assignment and Assumption Agreement
dated as of October 16, 2000 (the "Assignment and Assumption Agreement"),
subject to the terms and conditions set out in that Agreement; and

     WHEREAS, the 1999 Agreements were amended and restated by First Amended and
Restated Development Agreement dated as of October 16, 2000 and by First Amended
and Restated Management Agreement dated as of October 16, 2000 (collectively,
the "First Amended and Restated Agreements"); and

     WHEREAS, Great Lakes, Lakes and the Band have entered into a Second Amended
and Restated Development Agreement dated as of December 22, 2004 (the "Second
Amended and Restated Development Agreement") and a Second Amended and Restated
Management Agreement dated as of December 22, 2004(the "Second Amended and
Restated Management Agreement"; collectively, the "Second Amended and Restated
Agreements"); and

     WHEREAS, the parties wish to amend the Assignment and Assumption Agreement
to reflect the execution of the Second Amended and Restated Agreements as
provided below;

<PAGE>

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

1.   Recitals True. The above recitals are true.

2.   Defined Terms. Capitalized terms used but not otherwise defined herein and
     defined in the Assignment and Assumption Agreement shall have the same
     meaning herein as therein.

3.   Amendments. The Assignment and Assumption Agreement is amended as follows:

     a. Section 6 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

          Assumption of Obligations. Great Lakes accepts the assignment of
          Lakes' rights and obligations under the Obligations. Great Lakes
          assumes and agrees to perform and discharge all of the obligations and
          liabilities of Lakes arising under or relating to the Obligations in
          accordance with the terms thereof, as if Great Lakes had originally
          been a party thereto. The liabilities so assumed by Great Lakes
          include any obligations or liabilities of Lakes which have accrued
          under the Obligations as of the date hereof, as well as those
          subsequently accruing. All references to Lakes in the Obligations
          shall, except as set out in a certain Amendment of Account Control
          Agreement dated as of October 16, 2002 and as further amended by
          Second Amendment dated as of December 22, 2004, or in an Amendment to
          Pledge and Security Agreement dated as of December 16, 2002 and as
          further amended by Second Amendment dated as of December 22, 2004, be
          deemed to refer to Great Lakes; except that references in the Second
          Amended and Restated Development Agreement dated as of December 22,
          2004 (the "Second Amended and Restated Development Agreement") and the
          Second Amended and Restated Management Agreement dated as of December
          22, 2004 (the "Second Amended and Restated Management Agreement";
          collectively with the Second Amended and Restated Development
          Agreement, the "Second Amended and Restated Agreements") or in any
          related documents dated on or about December 22, 2004, to Great Lakes
          and Lakes, respectively, shall refer to the respective entity so
          named.

     b. Section 7 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

     c. Band Consent. The Band consents to this Assignment, recognizes Great
     Lakes as a substituted party under the Obligations (except to the extent
     provided in Section 15.20 of the Second Amended and Restated Development
     Agreement and Section 18.23 of the Second Amended and Restated Management
     Agreement), and agrees that Great Lakes shall be a party to such
     Obligations to the same extent as if Great Lakes had originally


                                        2

<PAGE>

     been a party thereto; without prejudice, however, to Lakes' continued
     obligations to the Band under the Obligations as provided in the Second
     Amended and Restated Agreements, its Guaranty, the Account Control
     Agreement, as amended, the Amendment to Pledge and Security Agreement, as
     amended, and this Agreement.

     d. Section 8 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

          Release of Lakes. The Band releases and forever discharges Lakes of
          any and all liabilities or obligations under the Obligations except as
          specifically set out in Section 15.20 of the Second Amended and
          Restated Development Agreement and Section 18.23 of the Second Amended
          and Restated Management Agreement, and except as provided in such
          sections agrees to look solely to Great Lakes for performance of all
          obligations of Lakes under the Obligations; conditioned on, however,
          the execution by Lakes and LG&R of the unlimited guarantee attached
          hereto as Exhibit B (the "Guarantee"), as amended, and without
          prejudice to the Band's rights under such Guarantee, under the Second
          Amended and Restated Agreements, under the Account Control Agreement,
          as amended, the Amendment to Pledge and Security Agreement, as
          amended, or under this Agreement.

     e. Sections 10(a) and 10(c) of the Assignment and Assumption Agreement are
     deleted. Reference is made to Section 15.20 of the Second Amended and
     Restated Development Agreement and Section of the 18.23 of the Second
     Amended and Restated Management Agreement.

     f. Section 11 of the Assignment and Assumption Agreement is restated in its
     entirety as follows:

          Sovereign Immunity. Lakes agrees that all claims and causes of action
          it may in the future have against the Band, whether at law, in tort or
          otherwise, shall be subject to the Band's sovereign immunity, unless
          specifically waived by the Band in writing after the date of this
          Agreement or, as to disputes under this Agreement or under the Second
          Amended and Restated Agreements, as provided in such Agreements. Lakes
          shall, upon the execution of this Agreement, no longer have the
          benefit of any limited waiver of sovereign immunity provided in the
          Obligations except, as to the Second Amended and Restated Agreements,
          the Account Control Agreement, as amended, and the Pledge and Security
          Agreement, as amended, as provided in such Agreements. Nothing in this
          Agreement waives or prejudices any rights Lakes or LG&R may have under
          the terms of their Guaranty, or affects any limited waiver of
          sovereign immunity in such Guaranty.

4.   Covenants and Representations of Lakes and Great Lakes.

     a.   This Agreement constitutes the legal, valid and binding obligation of
          Great Lakes and Lakes, and is fully enforceable in accordance with its
          terms.


                                        3

<PAGE>

     b.   The Obligations constitute the legal, valid and binding obligation of
          Great Lakes, and are fully enforceable in accordance with their terms.

     c.   The Guaranty constitutes the legal, valid and binding obligation of
          Lakes and LG&R, and is fully enforceable in accordance with their
          terms

     d.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof, will conflict
          with, or result in a breach of the terms, conditions or provisions of,
          constitute a default under or result in the creation of any lien,
          charge or encumbrance upon any property or assets of Lakes or Great
          Lakes under any agreement or instrument to which either of them is now
          a party or by which either of them is or may in the future be bound.

     e.   The fulfillment of and compliance with the terms and provisions of the
          Obligations will not conflict with, result in a breach of the terms,
          conditions or provisions of, constitute a default under, or result in
          the creation of any lien, charge or encumbrance upon any property or
          assets of Great Lakes under any agreement or instrument to which it is
          now a party or by which it is or may in the future be bound.

     f.   The Band has, and shall have until the termination of the Pledge
          Agreement in accordance with 12 thereof, a first perfected security
          interest in the Account.

5.   Covenants and Representations of the Band.

     a.   This Agreement constitutes the legal, valid and binding obligation of
          the Band, and is fully enforceable in accordance with its terms.

     b.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof, will conflict
          with, or result in a breach of the terms, conditions or provisions of,
          constitute a default under or result in the creation of any lien,
          charge or encumbrance upon any property or assets of the Band under
          any agreement or instrument to which it is now a party or may in the
          future be bound.

6.   Further Assurances. From time to time hereafter, Lakes, Great Lakes and/or
     the Band will execute and deliver, or will cause to be executed and
     delivered, such additional instruments, certificates or documents, and will
     take all such actions, as may reasonably be requested by the other party or
     parties, for the purpose of implementing or effectuating the provisions of
     this Agreement.

7.   Governing Law; Severability. This Agreement shall be interpreted in
     accordance with the law of Michigan. Wherever possible each provision of
     this Agreement shall be interpreted in such manner as to be effective and
     valid under applicable law, but if any provisions of this Agreement shall
     be prohibited by, unenforceable or invalid under applicable law, such
     provision shall be ineffective to the extent of such prohibition,
     unenforceability or invalidity, without invalidating the remainder of such
     provision or the remaining provisions of this Agreement.


                                        4

<PAGE>

8.   Amendments, Assignments, Etc. Any provision of this Agreement may be
     amended if, but only if, such amendment is in writing and is signed by each
     of the parties hereto. No modification shall be implied from course of
     conduct. Great Lakes may not further assign its rights and obligations
     hereunder and under the Obligations without the written consent of the
     Band.

9.   Gender and Number; Counterparts. Whenever the context so requires the
     masculine gender shall include the feminine and/or neuter and the singular
     number shall include the plural, and conversely in each case. This
     Agreement may be executed in separate counterparts and said counterparts
     shall be deemed to constitute one binding document.

10.  Notices. Great Lakes agrees that any notice or demand upon it shall be
     deemed to be sufficiently given or served if it is in writing and is
     personally served or in lieu of personal service is mailed by first class
     certified mail, postage prepaid, or be overnight mail or courier service,
     addressed to Great Lakes at the address of Lakes and with copies as set
     forth in Section 15.4 of the Development Agreement. Notice to the Band
     shall be given as provided in Section 15.4 of the Development Agreement.
     Any notice or demand so mailed shall be deemed received on the date of
     actual receipt, on the third business day following mailing as herein set
     forth or one day following delivery to a courier service, whichever first
     occurs.

11.  Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under this
     Agreement shall be subject to arbitration as provided in 14.2 of the
     Second Amended and Restated Development Agreement; provided that any demand
     for arbitration shall be made within 30 days after a notice of default,
     denominated as such, is given under this Agreement. The Band's limited
     waiver of sovereign immunity in 14.1 and 14.3 of the Second Amended and
     Restated Development Agreement shall apply to this Agreement; provided that
     the liability of the Band under any judgment shall always be Limited
     Recourse, and in no instance shall any enforcement of any kind whatsoever
     be allowed against any assets of the Band other than the limited assets of
     the Band specified in Section 14.3(a) of the Second Amended and Restated
     Development Agreement.

12.  Ratification. Great Lakes, the Band and Lakes each ratify and confirm the
     Assignment and Assumption Agreement, as amended hereby, which remains in
     full force and effect.

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
Assignment and Assumption Agreement to be executed as of the day first above
written.

WITNESS:                                 GREAT LAKES GAMING OF MICHIGAN, LLC


                                         BY: /s/ Timothy Cope
                                             -----------------------------------
                                         NAME: Timothy J. Cope
                                         ITS: President


                                        5

<PAGE>

                                         LAKES ENTERTAINMENT, INC., f/k/a Lakes
                                            Gaming, Inc.


                                         BY: /s/ Timothy Cope
                                             -----------------------------------
                                         NAME: Timothy J. Cope
                                         ITS: President


                                         THE POKAGON BAND OF POTAWATOMI INDIANS


                                         By: /s/ John Miller
                                             -----------------------------------
                                         Its: Council Chairman


                                         By: /s/ Dan Rapp
                                             -----------------------------------
                                         Its: Secretary


Seen and agreed:


                                         LAKES GAMING AND RESORTS, LLC


                                         BY: /s/ Timothy Cope
                                             -----------------------------------
                                         NAME: Timothy J. Cope
                                         ITS: President


                                        6
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.80
<SEQUENCE>15
<FILENAME>c92713exv10w80.txt
<DESCRIPTION>REAFFIRMATION OF GUARANTIES AND MORTGAGES
<TEXT>
<PAGE>
                                                                  Exhibits 10.80

                                                               EXECUTION VERSION

                    REAFFIRMATION OF GUARANTIES AND MORTGAGES

     This Reaffirmation is dated as of the 22nd day of December, 2004, by and
among the Pokagon Properties, LLC, a Delaware limited liability company
("PPLLC") and Filbert Land Development, LLC, an Indiana limited liability
company ("Filbert" and together with PPLLC, collectively the "Band Designees")
and Great Lakes Gaming of Michigan, LLC, a Minnesota limited liability company
("Lakes"):

                                   WITNESSETH:

     WHEREAS, the Band and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc.
("Lakes Entertainment") previously entered into a Development Agreement dated as
of July 8, 1999, as assigned by Lakes Entertainment to Lakes pursuant to that
certain Assignment and Assumption Agreement dated October 16, 2000, by and among
the Band, Lakes Entertainment and Lakes, and as amended and restated by that
certain First Amended and Restated Development Agreement dated October 16, 2000
by and between the Band and Lakes, and as amended and restated by that certain
Second Amended and Restated Development Agreement dated as of December 22, 2004
by and between the Band and Lakes (collectively and as heretofore and hereafter
amended, the "Development Agreement"), pursuant to which the Band has engaged
Lakes to, among other things, assist the Band in the design, development,
construction and management of the Facility; and

     WHEREAS, Article 2 of the Development Agreement provides, among other
things, that Lakes shall finance the acquisition of all parcels of land
comprising the Gaming Site and the Non-Gaming Lands through the making of
advances (a) under the Lakes Note for the acquisition of each parcel of land
constituting the Gaming Site (all such advances, whether heretofore or hereafter
made, shall be collectively referred to as the "Gaming Site Advances"), and (b)
under the Non-Gaming Land Acquisition Line of Credit for each parcel of land
constituting the Non-Gaming Lands (all such advances, whether heretofore or
hereafter made, shall be collectively referred to as the "Non-Gaming Land
Advances" and together with all Gaming Site Advances shall be collectively
referred to as the "Advances"); and

     WHEREAS, as further provided in Article 2 of the Development Agreement, all
of the Gaming Site Advances and the Non-Gaming Land Advances are to be secured
by mortgages in favor of Lakes on the related parcels of land constituting the
Gaming Site and the Non-Gaming Lands; and

     WHEREAS, the Band, with the consent of Lakes, has formed and may hereafter
form certain related entities known as "Band Designees", including but not
limited to PPLLC and Filbert, for the purpose of, at Band's option, acquiring
title to all or a portion of the Gaming Site and all or a portion of the
Non-Gaming Lands; and

<PAGE>

     WHEREAS, each of the Advances (to the extent made in connection with any
Band Designee's acquisition of Gaming Site or Non-Gaming Land parcels) will be
made available by the Band to the Band Designee for the purpose of paying all
costs associated with the acquisition of the parcels of land constituting the
Gaming Site and the Non-Gaming Lands; and

     WHEREAS, Lakes has required and will be requiring each Band Designee to
execute and deliver to Lakes certain Band Designee Guaranties and Band Designee
Mortgages (as each of such terms are defined in the Development Agreement) and
amendments thereto from time to time, including without limitation the Band
Designee Guaranties and Band Designee Mortgages described on Exhibit A attached
hereto, in connection with each acquisition of parcels of land related to the
Gaming Site and the Non-Gaming Lands, all as a condition precedent to the making
of such Advances; and

     WHEREAS, in connection with the execution of the Second Amended and
Restated Development Agreement, Lakes requires each of the Band Designees to
reaffirm the Band Designee Guaranties and Band Designee Mortgages and the Band
Designees desire to reaffirm each of the Band Designee Guaranties and Band
Designee Mortgages pursuant to the terms hereof.

     NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, and as an inducement to the Lakes to make the Advances to the Band
and to execute the Second Amended and Restated Development Agreement, each of
the Band Designees agrees as follows:

     1. Recitals True. The above recitals are true.

     2. Definitions. Capitalized terms used but not otherwise defined herein and
defined in the Development Agreement, the Band Designee Guaranties or the Band
Designee Mortgages, as applicable, shall have the same meaning herein as
therein.

     3. Consent and Reaffirmation. Each Band Designee hereby (i) acknowledges
receipt of a copy, and consents to the execution and delivery by the Band, of
the Second Amended and Restated Development Agreement and each of the other
Transaction Documents (as defined in the such Second Amended and Restated
Development Agreement and including, without limitation, each of the documents
and agreements referenced in Section 15.17 thereof), and further consents to
each of the terms and provisions set forth therein, and (ii) represents,
warrants and confirms that each of the Band Designee Guaranties and Band
Designee Mortgages executed by it remains in full force and effect in accordance
with its original terms.

        [The remainder of this page has been intentionally left blank.]


                                       2

<PAGE>

Dated as of December 22, 2004

                                        POKAGON PROPERTIES, LLC, A DELAWARE
                                        LIMITED LIABILITY COMPANY

                                        By: Pokagon Band of Potawatomi Indians
                                        Its: Member


                                        By: /s/ John Miller
                                            ------------------------------------
                                            John Miller
                                        Its: Chairman

                                        And


                                        By: /s/ Daniel Rapp
                                            ------------------------------------
                                            Daniel Rapp
                                        Its: Secretary


                                        FILBERT LAND DEVELOPMENT, LLC,
                                        AN INDIANA LIMITED LIABILITY COMPANY

                                        By: Pokagon Band of Potawatomi Indians
                                        Its: Member


                                        By: /s/ John Miller
                                            ------------------------------------
                                            John Miller
                                        Its: Chairman

                                        And


                                        By: /s/ Daniel Rapp
                                            ------------------------------------
                                            Daniel Rapp
                                        Its: Secretary


                                        3

<PAGE>

                                    EXHIBIT A

               SCHEDULE OF BAND DESIGNEE MORTGAGES AND GUARANTIES

I.   SCHEDULE OF MORTGAGES

     A.   BERRIEN COUNTY, MICHIGAN MORTGAGES:

          1.   Pokagon Properties, LLC executed and delivered to Lakes Gaming,
               Inc. that certain Mortgage dated March 9, 2000 which Mortgage was
               recorded on March 24, 2000 in Liber 2040, Page 1032, Berrien
               County Register of Deeds ("Berrien Mortgage").

          2.   The Berrien Mortgage was amended by that certain Amendment to
               Mortgage dated April 20, 2000 which Amendment was recorded on
               April 28, 2000 in Liber 2047, Page 1205, Berrien County Register
               of Deeds.

          3.   The Berrien Mortgage was further amended by that certain Second
               Amendment to Mortgage dated May 9, 2000 which Second Amendment
               was recorded on May 18, 2000 in Liber 2052, Page 959, Berrien
               County Register of Deeds.

          4.   The Berrien Mortgage was further amended by that certain Third
               Amendment to Mortgage dated June 8, 2000 which Third Amendment
               was recorded on July 11, 2000 in Liber 2063, Page 1512 and Page
               1520, Berrien County Register of Deeds.

     B.   VAN BUREN COUNTY, MICHIGAN MORTGAGES:

          1.   Pokagon Properties, LLC executed and delivered to Lakes Gaming,
               Inc. that certain Mortgage dated March 9, 2000 which Mortgage was
               recorded on March 28, 2000 in Liber 1287, Page 0547, Van Buren
               County Register of Deeds ("Van Buren Mortgage").

          2.   The Van Buren Mortgage was amended by that certain Amendment to
               Mortgage dated July 17, 2000 which Amendment was recorded on
               September 14, 2000 in Liber 1314, Page 0854, Van Buren County
               Register of Deeds.

          3.   The Van Buren Mortgage was further amended by that certain Second
               Amendment to Mortgage dated November 14, 2000 by Pokagon
               Properties, LLC and Great Lakes Gaming of Michigan, LLC which
               Amendment was recorded on May 1, 2001 in Book 1330 at Page 960,
               Van Buren County Register of Deeds.

<PAGE>

          C.   CASS COUNTY, MICHIGAN MORTGAGES:

          1.   Pokagon Properties, LLC executed and delivered to Lakes Gaming,
               Inc. that certain Mortgage dated September 25, 2000 which
               Mortgage was recorded on October 18, 2000 in Liber 00747, Page
               0159, Cass County Register of Deeds ("Cass Mortgage").

          2.   The Cass Mortgage was amended by that certain Amendment to
               Mortgage by Pokagon Properties, LLC and Great Lakes Gaming of
               Michigan, LLC dated November 14, 2000 which Amendment was
               recorded on January 8, 2001 in Liber 00754, Page 0511, Cass
               County Register of Deeds.

          3.   The Cass Mortgage was further amended by that certain Second
               Amendment to Mortgage by Pokagon Properties, LLC and Great Lakes
               Gaming of Michigan, LLC dated December 14, 2000 which Amendment
               was recorded on April 30, 2001 in Liber 00766, Page 1137, Cass
               County Register of Deeds.

          4.   The Cass Mortgage was further amended by that certain Third
               Amendment to Mortgage by Pokagon Properties, LLC and Great Lakes
               Gaming of Michigan, LLC dated February 7, 2001 which Amendment
               was recorded on April 30, 2001 in Liber 00766, Page 1172, Cass
               County Register of Deeds.

          5.   The Cass Mortgage was further amended by that certain Fourth
               Amendment to Mortgage by Pokagon Properties, LLC and Great Lakes
               Gaming of Michigan, LLC dated April 30, 2001 which Amendment was
               recorded on June 8, 2001 in Liber 00772, Page 1074, Cass County
               Register of Deeds.

          6.   A Partial Discharge of the Cass Mortgage, dated October 7, 2003,
               was executed by Great Lakes Gaming of Michigan, LLC, which
               Partial Discharge of Mortgage was recorded on December 29, 2003,
               in Liber 00974, pp. 0907 and 0908, Cass County Register of Deeds.

II.  BAND DESIGNEE GUARANTIES

     A.   FILBERT LAND DEVELOPMENT, LLC ("FILBERT")

          1.   Filbert executed and delivered to Great Lakes Gaming of Michigan,
               LLC that certain Guaranty dated February 28, 2001.

<PAGE>

     B.   POKAGON PROPERTIES, LLC ("POKAGON")

          1.   Pokagon executed and delivered to Lakes Gaming, Inc. that certain
               Guaranty dated March 9, 2000 ("Pokagon Guaranty").

          2.   Lakes Gaming, Inc.'s rights and obligations under the Pokagon
               Guaranty were assigned to Great Lakes of Michigan, LLC pursuant
               to that certain Assignment and Assumption Agreement dated October
               16, 2000 by and among Great Lakes of Michigan, LLC, Lakes Gaming,
               Inc. and the Pokagon Band of Potawatomi Indians.

          ** Lakes Gaming, Inc. assigned its right, title and interest in these
     Mortgages to Great Lakes of Michigan, LLC by Assignment of Mortgage
     ("Assignment") dated October 16, 2000 which Assignment was recorded January
     17, 2001 in Book 1324, Page 529, Van Buren County Register of Deeds and
     recorded February 1, 2001 in Liber 2106, Page 21, Berrien County Register
     of Deeds and recorded January 5, 2001 in Liber 00754, Page 0186, Cass
     County Register of Deeds. On November 27, 2000, Great Lakes of Michigan,
     LLC changed its name to Great Lakes Gaming of Michigan, LLC.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.81
<SEQUENCE>16
<FILENAME>c92713exv10w81.txt
<DESCRIPTION>SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.81

                                                               EXECUTION VERSION

                SECOND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT

     This Agreement is made as of the 22nd day of December, 2004, by and among
Great Lakes Gaming of Michigan, LLC, a Minnesota limited liability company
("Great Lakes"), Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc., a
Minnesota corporation ("Lakes"), and the Pokagon Band of Potawatomi Indians (the
"Band").

                                   WITNESSETH:

     WHEREAS, the Band and Lakes entered into a Development Agreement dated as
of July 8, 1999 (the "1999 Development Agreement") and a Management Agreement
dated as of July 8, 1999 (the "1999 Management Agreement"; collectively, with
the 1999 Development Agreement, the "1999 Agreements"), pursuant to which the
Band engaged Lakes to, among other things, assist the Band in the design,
development, construction and management of a gambling casino and certain
related amenities (as defined in the 1999 Development Agreement, the
"Facility"); and

     WHEREAS, pursuant to the 1999 Development Agreement Lakes agreed to make
certain payments and advances to the Band, including without limitation the
Transition Loan, the Lakes Development Loan and the Non-Gaming Land Acquisition
Line of Credit (collectively the "Lakes Loans"), and the Scholarship Program
Fee, and has agreed to perform development services with regard to the Facility,
all on the terms set out in that Agreement; and

     WHEREAS, pursuant to the 1999 Management Agreement Lakes agreed to manage
the Facility on the terms set out in that Agreement; and

     WHEREAS, Lakes assigned its rights and obligations under the 1999
Agreements to Great Lakes pursuant to an Assignment and Assumption Agreement
dated as of October 16, 2000, subject to the terms and conditions set out in
that Agreement; and

     WHEREAS, the 1999 Agreements were amended and restated by First Amended and
Restated Development Agreement dated as of October 16, 2000 and by First Amended
and Restated Management Agreement dated as of October 16, 2000 (the "First
Amended and Restated Agreements"); and

     WHEREAS, the obligations of Lakes and Great Lakes to the Band under the
First Amended and Restated Agreements were secured by a Pledge and Security
Agreement between Lakes and the Band (the "Security Agreement") and by an
Account Control Agreement among Lakes, the Band and Firstar (the "Control
Agreement"), each dated as of July 8, 1999 and as each was amended by first
amendments dated as of October 16, 2000; and

<PAGE>

     WHEREAS, Great Lakes, Lakes and the Band have entered into a Second Amended
and Restated Development Agreement dated as of December 22, 2004 and a Second
Amended and Restated Management Agreement dated as of December 22, 2004 (the
"Second Amended and Restated Agreements"); and

     WHEREAS, the parties wish to amend the Security Agreement to reflect the
execution of the Second Amended and Restated Agreements, and to provide that the
Security Agreement will secure the obligations of Lakes and Great Lakes to the
Band under the Second Amended and Restated Agreements;

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

1.   Recitals True. The above recitals are true.

2.   Defined Terms. Capitalized terms used but not otherwise defined herein and
     defined in the Security Agreement shall have the same meaning herein as
     therein.

3.   Amendment to Security Agreement. The Security Agreement is amended as
     follows:

     a.   All references to the term "Control Agreement" shall refer to the
          Control Agreement among Lakes, the Band and Firstar Bank of Minnesota,
          N.A., n/k/a U.S. Bank, National Association, as assumed by Great Lakes
          under the Assignment and Assumption Agreement dated as of October 16,
          2000, and as amended by First Amendment dated as of October 16, 2000
          and by Second Amendment dated as of December 22, 2004.

     b.   The definition of "Secured Obligations" in Section 1(a) of the
          Security Agreement is amended so that it reads in its entirety as
          follows:

               "'Secured Obligations' includes (i) the obligations of Great
               Lakes and Lakes to the Band under or relating to the Agreements,
               and (ii) the obligations of Lakes and LG&R under their Guaranty
               to the Band dated October 16, 2000, as amended by First Amendment
               dated as of December 22, 2004."

4.   Reservation of Rights. By entering into this Agreement, the Band does not
     waive or affect any rights against Lakes under the Security Agreement or
     the Control Agreement.

5.   Warranties and Representations - Great Lakes and Lakes. Each of Great Lakes
     and Lakes warrants, represents and covenants to the Band that:

     a.   The Control Agreement and the Security Agreement each constitute the
          legal, valid and binding obligation of Great Lakes and Lakes, and are
          fully enforceable in accordance with their terms;


                                        2

<PAGE>

     b.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof will conflict with,
          or result in a breach of the terms, conditions or provisions of,
          constitute a default under or result in the creation of any lien,
          charge or encumbrance upon any property or assets of Lakes or Great
          Lakes under any agreement or instrument to which they or either of
          them is now a party or by which they may be bound; and

     c.   The Band has, and at all times until the termination of the Control
          Agreement in accordance with Section 8 thereof shall have, a first
          perfected security interest in the Account and all cash, financial
          assets and investment property credited to the Account.

6.   Further Assurances. From time to time hereafter, Lakes, Great Lakes and the
     Band will execute and deliver, or will cause to be executed and delivered,
     such additional instruments, certificates or documents, and will take all
     such actions, as may reasonably be requested by the other party or parties,
     for the purpose of implementing or effectuating the provisions of this
     Agreement.

7.   Governing Law. This Agreement shall be interpreted in accordance with the
     law of the internal law of Minnesota.

8.   Amendments, Assignments, Etc. Any provision of this Agreement may be
     amended if, but only if, such amendment is in writing and is signed by each
     of the parties hereto. No modification shall be implied from course of
     conduct. Great Lakes may not further assign its rights in the Account and
     its obligations under the Control Agreement without the written consent of
     the Band.

9.   Gender and Number; Counterparts. Whenever the context so requires the
     masculine gender shall include the feminine and/or neuter and the singular
     number shall include the plural, and conversely in each case. This
     Agreement may be executed in separate counterparts and said counterparts
     shall be deemed to constitute one binding document.

10.  Notices to Great Lakes. Great Lakes agrees that any notice or demand upon
     it shall be deemed to be sufficiently given or served if it is in writing
     and is personally served or in lieu of personal service is mailed by first
     class certified mail, postage prepaid, or be overnight mail or courier
     service, addressed to Great Lakes at the address of Lakes and with copies
     set forth in ' 12 of the Control Agreement.

11.  Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under this
     Agreement shall be subject to arbitration as provided in Section 14.2 of
     the Development Agreement; provided that any demand for arbitration shall
     be made within 30 days after a notice of default, denominated as such, is
     given under this Agreement. The Band's limited waiver of sovereign immunity
     in Sections 14.1 and 14.3 of the Development Agreement shall apply to this
     Agreement; provided that the liability of the Band under any judgment shall
     always be


                                       3

<PAGE>

     Limited Recourse, and in no instance shall any enforcement of any kind
     whatsoever be allowed against any assets of the Band other than the limited
     assets of the Band specified in the definition of Limited Recourse and
     Section 14.3(a) of the Development Agreement.

12.  Ratification. Except as expressly modified in this Agreement, the Security
     Agreement is ratified and confirmed and remains in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the 22nd day of December, 2004.

WITNESS:
                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        BY: /s/ Timothy J. Cope
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        LAKES ENTERTAINMENT, INC., f/k/a LAKES
                                        GAMING, INC.


                                        BY: /s/ Timothy J. Cope
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        BY: /s/ John Miller
- -------------------------------------       ------------------------------------
                                            John Miller
                                        ITS: Council Chairman


                                        BY: /s/ Dan Rapp
- -------------------------------------       ------------------------------------
                                            Daniel Rapp
                                        ITS: Secretary


                                       4

<PAGE>

Seen and consented to:

                                        LAKES GAMING AND RESORTS, LLC


                                        BY:
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        5
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.82
<SEQUENCE>17
<FILENAME>c92713exv10w82.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.82

                                                               EXECUTION VERSION

                               SECURITY AGREEMENT

          This Security Agreement is made and entered into as of this 22nd day
of December, 2004, between the POKAGON BAND OF POTAWATOMI INDIANS, a federally
recognized Indian Tribe, with tribal offices located at 58620 Sink Road,
Dowagiac, Michigan 49047 ("DEBTOR") and Great Lakes Gaming of Michigan, LLC, a
Minnesota limited liability company whose business office is located 130
Cheshire Lane, Minnetonka, Minnesota 55305 ("SECURED PARTY").

                                    RECITALS

     WHEREAS, the Debtor has the inherent power to conduct and regulate gaming
on its lands, subject only to the restrictions imposed by the Indian Gaming
Regulatory Act of 1988, Public Law 100-497 ("IGRA"); and

     WHEREAS, in accordance with IGRA, the Debtor has entered into a
Tribal-State Compact for the Conduct of Class III Gaming within the State of
Michigan; and

     WHEREAS, the Debtor intends to operate a gaming facility in New Buffalo,
Michigan (the "Casino") on lands the U.S. Department of the Interior has taken
or will take into trust; and

     WHEREAS, the Debtor and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc.
("Lakes") previously entered into a Development Agreement dated as of July 8,
1999, as assigned by Lakes to Great Lakes pursuant to that certain Assignment
and Assumption Agreement dated October 16, 2000, by and among the Debtor, Great
Lakes and Lakes, and as amended and restated by that certain First Amended and
Restated Development Agreement dated October 16, 2000 by and between the Debtor
and Great Lakes, and as amended and restated by that certain Second Amended and
Restated Development Agreement dated as of December 22, 2004 by and between the
Debtor and Great Lakes (collectively and as heretofore and hereafter amended,
the "Development Agreement"), pursuant to which Great Lakes has agreed to, among
other things, make certain loans to the Debtor in connection with the
development, construction and equipping of the Casino and certain related
amenities; and

     WHEREAS, the Debtor and Lakes previously entered into a Management
Agreement dated as of July 8, 1999, as assigned by Lakes to Great Lakes pursuant
to that certain Assignment and Assumption Agreement dated October 16, 2000, by
and among the Debtor, Great Lakes and Lakes, and as amended and restated by that
certain First Amended and Restated Management Agreement dated October 16, 2000
by and between the Debtor and Great Lakes, and as amended and restated by that
certain Second Amended and Restated Management Agreement dated as of December
22, 2004, by and between the Debtor and Great Lakes (as it may be amended, the
"Management Agreement"), pursuant to which the Debtor and Great Lakes have
agreed that

<PAGE>

Great Lakes shall manage the Casino and certain related amenities as more
specifically set forth therein; and

     WHEREAS, pursuant to the Development Agreement and the Management
Agreement, Secured Party will, among other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Development Agreement and the Management Agreement, the Debtor has agreed to
execute this Security Agreement in favor of Secured Party and to grant a
security interest to Secured Party in all of its right, title and interest in
the property described herein.

                                    AGREEMENT

          Now therefore, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

          1. Defined Terms. Unless the context otherwise requires, capitalized
terms not defined herein have the meaning ascribed to them in the Development
Agreement or the Management Agreement, as applicable.

          2. Creation of Security Interest. The Debtor hereby assigns, pledges
and grants to Secured Party a security interest in the Debtor's right, title and
interest in and to the collateral described in Section 3 below (the
"COLLATERAL") in each case whether now owned or hereafter acquired by Debtor in
order to secure the payment and performance of the obligations of Debtor to
Secured Party described in Section 4 herein below. On the date of execution of
this Agreement, Debtor shall cause to be authorized and delivered to Secured
Party: (a) such financing statements and similar documents necessary to perfect
the security interest granted to Secured Party pursuant to this Agreement (the
"Financing Statements"), and (b) a legal opinion in form and substances
reasonably acceptable to Secured Party, opining as to the due authorization,
execution and delivery of this Agreement and the Financing Statements by Debtor,
together with opinions as to Debtor's sovereign immunity waiver and
non-contravention with laws and agreements.

          Secured Party agrees to subordinate its security interest in the
Collateral and its rights hereunder as required under the terms of the
Development Agreement.

          3. Collateral. The Collateral under this Security Agreement includes
all of the following assets (collectively all of the following property and
similar or after-acquired property under this Section 3 being hereinafter
referred to as "COLLATERAL"):

     all goods, furniture, furnishings and equipment required for or related to
     the operation of the Enterprise, including, without limitation:


                                       2

<PAGE>

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Enterprise for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities; and

          (v) hotel equipment (to the extent a hotel is included in the
     Enterprise);

          (vi) all other furnishings and equipment hereafter located and
     installed in or about the Facility or the Gaming Site which are used in the
     operation of the Enterprise;

     each of the foregoing whether now owned or hereafter at any time acquired
     by Debtor and wherever located, and including all replacements, additions,
     parts, appurtenances, accessions, substitutions, repairs, and proceeds
     relating thereto or therefrom, and all documents, records, ledger sheets
     and files of Debtor relating thereto (provided that Debtor shall retain all
     originals, and Secured Party's rights as to this Collateral extend only to
     making copies); together further with all proceeds of any such Collateral,
     including, without limitation (i) whatever is now or hereafter receivable
     or received by Debtor upon the sale, exchange, collection or other
     disposition of any item of Collateral, whether voluntary or involuntary,
     whether such proceeds constitute equipment, intangibles, or other assets;
     (ii) any such items which are now or hereafter acquired by Debtor with any
     proceeds of Collateral hereunder; and (iii) any insurance proceeds or any
     payments under any indemnity, warranty or guaranty now or hereafter payable
     by reason of loss or damage or otherwise with respect to any item of
     Collateral or any proceeds thereof.

          4. Secured Obligations of Debtor. The Collateral secures and shall
hereafter secure: (i) all amounts owing by the Debtor to the Secured Party with
respect to the Lakes Development Note, the Lakes Facility Note, the Non-Gaming
Land Acquisition Line of Credit, the Transition Loan Note, the Working Capital
Advance Note and the Management Fees, together with any costs, expenses or other
amounts hereafter owing by the Debtor to the Secured Party pursuant to the terms
of the Development or Management Agreements or any other Transaction Documents,
each of the foregoing, whether now existing or hereafter incurred or arising;
(ii) any and all sums advanced by Secured Party in order to preserve the
Collateral or preserve Secured Party's security interest in the Collateral (or
the priority thereof) and (iii) after and during the continuance of an Event of
Default, the expenses of retaking, holding, preparing for sale or lease, selling
or otherwise disposing of or realizing on the Collateral, of any


                                       3

<PAGE>

proceeding for the collection or enforcement of any indebtedness, obligations or
liabilities of Debtor referred to above, or of any exercise by Secured Party of
its rights hereunder, together with reasonable attorneys' fees and disbursements
and court costs (collectively, the "SECURED OBLIGATIONS"); PROVIDED HOWEVER,
Secured Party agrees to terminate this Security Agreement upon request if Debtor
has satisfied the following conditions: (a) all Secured Obligations have been
repaid in full to Secured Party and (b) the Transaction Documents have been
terminated in accordance with their terms.

          5. Debtor's Representations and Warranties. The Debtor represents and
warrants that:

               (a) the Debtor is (or, to the extent that the Collateral is
acquired after the date hereof, will be) the sole legal and beneficial owner of
its respective Collateral and has exclusive possession and control thereof;
there are no security interests in, liens, charges or encumbrances on, or
adverse claims of title to, or any other interest whatsoever in, such Collateral
or any portion thereof except such liens that are created by this Security
Agreement or as permitted by Section 9.2 of the Development Agreement and
Section 10.6 of the Management Agreement (collectively, "PERMITTED LIENS"); and
that no financing statement, notice of lien, mortgage, deed of trust or
instrument similar in effect covering the Collateral or any portion thereof or
any proceeds thereof ("LIEN NOTICE") exists or is on file in any public office,
except as relates to Permitted Liens and except as may have been filed in favor
of Secured Party relating to this Security Agreement or related agreements, or
for which duly executed termination statements have been delivered to Secured
Party for filing;

               (b) the Debtor has full right, power and authority to execute,
deliver and perform this Security Agreement and the same constitutes a legally
valid and binding obligation of the Debtor, enforceable against the Debtor in
accordance with its terms subject to any limitations set forth in the Resolution
of Limited Waiver attached to the Management Agreement. Subject to the
completion of the items identified in Section 4(c) below, the provisions of this
Security Agreement are effective to create in favor of Secured Party a valid and
enforceable perfected security interest in the Collateral;

               (c) except for the filing or recording of the financing
statements and (prior to transfer of the Gaming Site into trust) fixture filings
that are to be filed in connection with this Security Agreement and compliance
with applicable Minnesota law as to creation and perfection of security
interests, and after adoption by Borrower of a commercial code governing secured
transactions, compliance with the applicable filing and other provisions of such
code, no authorization, approval or other action by, no notice to or
registration or filing with, any person or entity, including without limitation,
any creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, or the exercise by Secured Party of the rights
and remedies provided for in this Security Agreement (other than any required


                                       4

<PAGE>

governmental consent or filing with respect to any patents, trademarks,
copyrights, governmental claims, tax refunds, licenses or permits, compliance
with the Johnson Act, 15 U.S.C. Sections 1171 et seq. and other laws applicable
to the possession, transportation, use and sale of gaming equipment, and the
exercise of remedies requiring prior court approval), or (iii) for the
enforceability of such security interest against third parties, including,
without limitation, judgment lien creditors;

               (d) Debtor does not do business, and for the previous five years
has not done business, under any fictitious business names or trade names;

               (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

               (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the Collateral is now and will at all times
hereafter be located at Debtor's places of business or as Debtor may otherwise
notify Secured Party in writing;

               (g) Intentionally omitted;

               (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

               (i) Intentionally omitted; and

               (j) none of the execution, delivery and performance of this
Security Agreement by Debtor, the consummation of the transactions herein
contemplated, the fulfillment of the terms hereof or the exercise by Secured
Party of any rights or remedies hereunder will constitute or result in a breach
of any of the terms or provisions of, or constitute a default under, or
constitute an event which with notice or lapse of time or both will result in a
breach of or constitute a default under, any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor is
a party, conflict with or require approval, authorization, notice or consent
under any law, order, rule, regulation, license or permit applicable to Debtor
of any court or any federal or state government, regulatory body or
administrative agency, other than compliance with the Johnson Act, 15 U.S.C.
Sections 1171 et seq. and other laws applicable to the possession,
transportation, use and sale of gaming equipment, or any other governmental body
having jurisdiction over Debtor or its properties, or require notice, consent,
approval or authorization by or registration or filing with any person or entity
(including, without limitation, any stockholder or creditor of Debtor) other
than any notices to Debtor from Secured Party required hereunder except as may
be agreed to by Debtor and Secured Party. Except for the Permitted Liens, none
of the Collateral is subject to any agreement, indenture, mortgage, deed of
trust, equipment lease, instrument or other document to which Debtor is a party
which may restrict or inhibit Secured Party's rights or ability to sell or
dispose of the Collateral or any part thereof after the occurrence of an Event
of Default (as defined herein).


                                       5

<PAGE>

          6. Covenants of Debtor. The Debtor covenants and agrees as follows
(provided that, so long as the Management Agreement remains in effect, no
violation of any covenant caused by the failure of Secured Party to perform its
express or implied obligations under the Management Agreement shall be an Event
of Default hereunder):

               (a) Debtor will not move or permit to be moved the Collateral or
any portion thereof to any location other than that set forth in Section 5(f)
hereof, the Gaming Site or locations established in compliance with Section 6(b)
hereof without the prior written consent of the Secured Party and the prior
filing of a financing statement with the proper office and in the proper form to
perfect or continue the perfection (without loss of priority) of the security
interests created herein, which filing shall be satisfactory in form, substance
and location to Secured Party prior to such filing;

               (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

               (c) Intentionally Omitted;

               (d) Debtor will promptly, and in no event later than 21 days
after a request by Secured Party, procure or execute and deliver all further
instruments and documents (including, without limitation, notices, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements), that are consistent with the terms of the Management Agreement and
the Development Agreement and any applicable subordination agreements and that
are reasonably necessary or appropriate to and take any other actions which are
reasonably necessary to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes' and provisions of this Security Agreement, and will after and during
the continuance of an Event of Default pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted hereby; (ii) execute and file such
financing or continuation statements, or amendments thereto, and such other
instruments or notices as may be necessary or desirable, which Secured Party may
reasonably request in order to perfect and preserve the perfection and priority
of the security interests granted or purported to be granted hereby; (iii) if
any Collateral shall be evidenced by a promissory note or other instrument or
chattel paper (other than checks received by any Debtor in


                                       6

<PAGE>

the ordinary course of business), deliver and pledge to Secured Party such note
or instrument or chattel paper duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance reasonably
satisfactory to Secured Party; (iv) if any Collateral is at any time in the
possession or control of any warehouseman, bailee, consignee or any of Debtor's
agents or processors, Debtor shall notify such warehouseman, bailee, consignee,
agent or processor of the security interests created or purported to be created
hereby, shall cause such warehouseman, bailee, consignee, agent or processor to
execute any financing statements or other documents which Secured Party may
reasonably request to perfect Secured Party's security interest in such
collateral, and, upon the request of Secured Party after the occurrence and
during the continuation of an Event of Default, shall instruct such person to
hold all such Collateral for Secured Party's account subject to Secured Party's
instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

               (e) without the prior written consent of Secured Party, Debtor
will not in any way encumber, or hypothecate, or create or permit to exist, any
lien, security interest, charge or encumbrance or adverse claim upon or other
interest in the Collateral, except for Permitted Liens, and the Debtor will
defend the Collateral against all claims and demands of all persons at any time
claiming the same or any interest therein, except as expressly provided herein.
Debtor will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or encumbrances permitted
by the Development Agreement and Management Agreement or except as may have been
filed by or for the benefit of Secured Party relating to this Security Agreement
or related agreements. Debtor shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral;

               (f) without the prior written consent of Secured Party or as
otherwise permitted by the Development Agreement or the Management Agreement,
Debtor will not sell, transfer, assign (by operation of law or otherwise),
exchange or otherwise dispose of all or any portion of the Collateral or any
interest therein, except that the Debtor may sell worn-out or obsolete equipment
provided that the proceeds thereof are applied to the Secured Obligations or
used to purchase new collateral of equal or greater value and the Secured Party
shall be granted a security interest therein of equal priority to the Collateral
which it replaced. If the proceeds of any such prohibited sale are notes,
instruments, documents of title, letters of credit or chattel paper, such
proceeds shall be promptly delivered to Secured Party to be held as Collateral
hereunder (with all necessary or appropriate endorsements). If the Collateral,
or any part thereof or interest therein, is sold, transferred, assigned,
exchanged, or otherwise disposed of in violation of these provisions, the
security interest of Secured Party shall continue in such Collateral or part
thereof notwithstanding such sale, transfer, assignment, exchange or other
disposition, and Debtor will hold the proceeds thereof in a separate account for
Secured Party's benefit. Debtor


                                       7

<PAGE>

will, at Secured Party's request, transfer such proceeds to Secured Party in
kind;

               (g) Secured Party is hereby authorized to file one or more
financing statements or fixture filings, and continuations thereof and
amendments thereto, relative to all or any part of the Collateral, without the
signature of Debtor where permitted by law;

               (h) Except as expressly permitted by the Development Agreement
and Management Agreement, Debtor will not enter into any indenture, mortgage,
deed of trust, contract, undertaking, document, instrument or other agreement,
except for the Development Agreement and Management Agreement and any documents,
instruments or agreements related thereto or issue any securities which may
materially restrict or inhibit Secured Party's rights or ability to sell or
otherwise dispose of the Collateral or any part thereof after the occurrence of
an Event of Default;

               (i) The Debtor shall cause to be maintained, insurance with
respect to the Enterprise and Collateral as required by the Development
Agreement and Management Agreement and naming Secured Party as an additional
insured, loss payee and mortgagee, if applicable. Upon request, the Debtor shall
provide to the Secured Party certificates of insurance or copies of insurance
policies evidencing that such insurance satisfying the requirements of such
Development Agreement and Management Agreement is in effect at all times;

               (j) Except as expressly permitted by the Development Agreement
and Management Agreement, the Debtor will pay and discharge all taxes,
assessments and governmental charges or levies against the Collateral prior to
delinquency thereof and will keep the Collateral free of all unpaid claims and
charges (including claims for labor, materials and supplies) whatsoever;

               (k) Debtor will keep and maintain the Collateral in good
condition, working order and repair and from time to time will make or cause to
be made all repairs, replacements and other improvements in connection therewith
that are necessary or desirable toward such end. Debtor will not misuse or abuse
the Collateral, or waste or allow it to deteriorate except for the ordinary wear
and tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

               (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's reasonable discretion, to create, preserve and
enforce any liens or guaranties available to secure or guaranty payments due
Debtor under any contracts or other agreements with third parties, will not
voluntarily permit any such payments to become more than thirty (30) days
delinquent and will in a timely manner record and assign to Secured Party, to
the extent and at the earliest time permitted by law, any such liens and rights
to under such guaranties;


                                       8

<PAGE>

               (m) Intentionally omitted;

               (n) Intentionally omitted;

               (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

               (p) Secured Party shall have the right at any time, but shall not
be obligated, to make any payments and do any other acts Secured Party may
reasonably deem necessary or desirable to protect its security interest in the
Collateral, including, without limitation, that after and during the continuance
of an Event of Default, the right to pay, purchase, contest or compromise any
encumbrance, charge or lien (excluding any Permitted Liens) applicable or
purported to be applicable to any Collateral hereunder, and whether prior to or
after the occurrence of any Event of Default, appear in and defend any action or
proceeding purporting to affect its security interest in and/or the value of any
Collateral, and in exercising any such powers or authority, the right to pay all
expenses incurred in connection therewith, including attorneys' fees. Debtor
hereby agrees that it shall be bound by any such payment made or incurred or act
taken by Secured Party hereunder after and during the continuance of an Event of
Default, and shall reimburse Secured Party for all reasonable payments made and
expenses incurred under this Security Agreement after and during the continuance
of an Event of Default, which amounts shall be secured under this Security
Agreement. Secured Party shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts;

               (q) if any Debtor shall become entitled to receive or shall
receive any certificate, instrument, option or rights, whether as an addition
to, in substitution of, or in exchange for any or all of the Collateral or any
part thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance reasonably satisfactory to
Secured Party, to be held by Secured Party, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder;

               (r) Secured Party is hereby authorized to pay all reasonable
costs and expenses incurred in the exercise or enforcement of its rights
hereunder, including attorneys' fees, and after an Event of Default to apply any
Collateral or proceeds thereof against such amounts, and then to credit or use
any further proceeds of the Collateral in accordance herewith; provided however
that if the Debtor is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Debtor shall not be and Secured Party
shall be responsible for such related costs and expenses, and Debtor shall not
be responsible for costs, fees and expenses of Secured Party prior to or after a
cure of an Event of Default; and


                                       9

<PAGE>

               (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

          7. Defaults and Remedies

          7.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

          (a) Except as provided in Section 6, any material representation or
warranty made by or on behalf of the Debtor herein or in any report, certificate
or other document furnished by or on behalf of the Debtor pursuant to this
Agreement shall prove to be false or misleading in any material respect when
made.

          (b) Except as provided in Section 6, the Debtor shall default in the
due observance or performance of any of its material obligations hereunder and
such default shall continue for thirty (30) days (unless a shorter or longer
cure period is provided under the terms of this Agreement) after written notice
thereof has been sent to the Debtor by Secured Party; provided, however, that if
the nature of such default (but specifically excluding defaults curable by the
payment of money) is such that it is not possible to cure such breach within
thirty (30) days, such 30-day period shall be extended for so long as the Debtor
shall be using diligent efforts to effect a cure thereof.

          (c) A Material Breach shall occur.

          7.2 Remedies. Upon the occurrence and continuation of an Event of
Default hereunder, the Debtor expressly covenants and agrees that Secured Party
may, at its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), but subject in all cases to the provisions of, and
except as otherwise provided in, the Development Agreement and the Management
Agreement, exercise any one or more of the rights as set forth as follows:

          (a) declare all advances made by Secured Party to Debtor hereunder,
all other indebtedness owed by Debtor to Secured Party and all Secured
Obligations to be immediately due and payable, whereupon all unpaid principal
and interest on said advances and other indebtedness and Secured Obligations
shall become and be immediately due and payable;

          (b) subject to any limitations set forth in the Development Agreement,
Secured Party may immediately take possession of any of the Collateral wherever
it may be found or require the Debtor to assemble the Collateral or any part
thereof and make it available at one or more places as Secured Party may
designate, and to deliver possession of the Collateral or any part thereof to
Secured Party, who shall have full right to enter upon any or all of Debtor's
places of business, premises and property to exercise Secured Party's rights
hereunder; and without notice (except as specified below), sell the Collateral
or any part thereof in one or more parcels at one or more public or private
sales, at any of Secured Party's offices or elsewhere, at


                                       10

<PAGE>

such time or times, for cash, on credit or for future delivery, and at such
price or prices and upon such other terms as shall be commercially reasonable
and in accordance with applicable law. The Debtor acknowledges and agrees that,
to the extent notice of sale shall be required by law, at least ten (10) days'
written notice to Debtor of the time and place of any public sale or of the date
on or after which any private sale is to be made shall constitute reasonable
notification. Any public sale shall be held at such time or times during
ordinary business hours and at such place or places as Secured Party may fix in
the notice of such sale. Notwithstanding the foregoing, Secured Party shall not
be obligated to make any sale of Collateral regardless of notice of sale having
been given. Secured Party may, without notice or publication, adjourn any public
or private sale, or cause the same to be adjourned from time to time by
announcement at the time and place fixed for sale or, with respect to a private
sale, after which such sale may take place, and any such sale may, without
further notice, be made at the time and place to which it was so adjourned or,
with respect to a private sale, after which such sale may take place. Each
purchaser at any such sale shall hold the property sold free from any claim or
right on the part of Debtor, and the Debtor hereby waives, to the full extent
permitted by law, all rights of stay and/or appraisal which Debtor now has or
may at any time in the future have under any rule of law or statute now existing
or hereafter enacted. The Debtor also hereby waives any claims against Secured
Party arising by reason of the fact that the price at which any Collateral may
have been sold at a private sale was less than the price which might have been
obtained at a public sale, even if Secured Party accepts the first offer
received and does not offer such Collateral to more than one offeree. The
parties hereto agree that the notice provisions, method, manner and terms of any
sale, transfer or disposition of any Collateral in compliance with the terms set
forth herein or any other provision of this Security Agreement are commercially
reasonable;

               (c) subject to any limitations provided in the Development
Agreement, exercise any or all of the rights and remedies provided for by the
Minnesota Uniform Commercial Code, the Tribal Commercial Code (after its
adoption) or other applicable law, specifically including, without limitation,
the right to recover attorneys' fees and other expenses incurred by Secured
Party after and during the continuance of an Event of Default in the enforcement
of this Security Agreement or in connection with the Debtor's redemption of the
Collateral. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party after and during the continuance of an
Event of Default in connection with any sale, disposition, repair, replacement,
alteration, addition, improvement or retention of any Collateral hereunder or
the enforcement of this Agreement.


                                       11

<PAGE>

          8. Miscellaneous Provisions.

               (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

     To Debtor:             Pokagon Band of Potawatomi Indians
                            58620 Sink Road
                            Dowagiac, Michigan 49047
                            Attention: Chairman, Tribal Council

                            With a Copy To:

                            Michael Phelan, General Counsel
                            Pokagon Band of Potawatomi Indians
                            P.O. Box 180
                            Dowagiac, MI 49047

                            and

                            Daniel Amory, Esq.
                            Drummond Woodsum & MacMahon
                            P.O. Box 9781
                            245 Commercial Street
                            Portland, Maine 04104-5081

     If to Secured Party:   Great Lakes Gaming of Michigan, LLC
                            130 Cheshire Lane
                            Minnetonka, MN 55305
                            Attention: Timothy J. Cope

     With a copy to:        Niel Sell, Esq.
                            Maslon, Edelman, Borman & Brand, LLP
                            3300 Wells Fargo Center
                            90 South Seventh Street
                            Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.


                                       12

<PAGE>

               (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

               (c) Amendments. This Security Agreement or any provision hereof
may be changed, waived, or terminated only by a statement in writing signed by
the party against which such change, waiver or termination is sought to be
enforced, and then any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

               (d) No Waiver. No failure on the part of Secured Party to
exercise, and no delay in exercising, and no course of dealing with respect to,
any power, privilege or right under this Security Agreement or any related
agreement shall operate as a waiver thereof nor shall any single or partial
exercise by Secured Party of any power, privilege or right under this Security
Agreement or any related agreement preclude any other or further exercise
thereof or the exercise of any other power, privilege or right. The powers,
privileges and rights in this Security Agreement are cumulative and are not
exclusive of any other remedies provided by law. No waiver by Secured Party of
any default hereunder shall be effective unless in writing, nor shall any waiver
operate as a waiver of any other default or of the same default on a future
occasion.

               (e) Binding Agreement. All rights of Secured Party hereunder
shall inure to the benefit of its successors and assigns. Subject to the terms
of the Development Agreement and Management Agreement, Debtor shall not assign
any of its interest under this Security Agreement without the prior written
consent of Secured Party. Any purported assignment inconsistent with this
provision shall, at the option of Secured Party, be null and void.

               (f) Entire Agreement. This Security Agreement, together with any
other agreement executed in connection herewith and the documents listed in
Section 15.17 of the Development Agreement, as each has been amended to date, is
intended by the parties as a final expression of their agreement and is intended
as a complete and exclusive statement of the terms and conditions thereof.
Acceptance of or acquiescence in a course of performance rendered under this
Security Agreement shall not be relevant to determine the meaning of this
Security Agreement even though the accepting or acquiescing party had knowledge
of the nature of the performance and opportunity for objection.

               (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

               (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to


                                       13

<PAGE>

Subsection 8(k) hereof.

               (i) Power of Attorney. The Debtor hereby irrevocably appoints
Secured Party its attorney-in-fact, which appointment is coupled with an
interest, with full authority in the place and stead of Debtor and in the name
of Debtor, Secured Party or otherwise, from time to time in Secured Party's
discretion (a) to execute and file financing and continuation statements (and
amendments thereto and modifications thereof) on behalf and in the name of the
Debtor with respect to the security interests granted or purported to be granted
hereby, (b) to take any action and to execute any instrument which Secured Party
may deem necessary or advisable to exercise its rights under Section 6(r)
hereunder, and (c) upon the occurrence and during the continuance of an Event of
Default, to take any action and to execute any instrument which Secured Party
may deem necessary or advisable to accomplish the purposes of this Security
Agreement, including, without limitation:

                    (i) to obtain and adjust insurance required to be paid to
Secured Party pursuant hereto;

                    (ii) to ask, demand, collect, sue for, recover, compound,
receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral;

                    (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

                    (iv) to sell, convey or otherwise transfer any item of
Collateral to any purchaser thereof in accordance with Sections 7.2(b) and (c);
and

                    (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

               (j) Counterparts. This Security Agreement and any amendments,
waivers, consents or supplements may be executed in any number of counterparts
and by facsimile, each of which when so executed and delivered shall be deemed
an original, but all of which shall together constitute one and the same
agreement.

               (k) Termination of Agreement. Upon termination of this Security
Agreement in accordance with Section 4 hereof, Secured Party shall reassign and
redeliver to Debtor all of the Collateral hereunder which has not been sold,
disposed of, retained or applied by Secured Party in accordance with the terms
hereof, and execute and deliver to Debtor such documents as Debtor may
reasonably request to evidence such termination. Such reassignment and
redelivery shall be without warranty by or recourse to Secured Party, and shall
(if an Event of Default has occurred and is continuing) be at the expense of
Debtor; provided, however, that this Security Agreement (including all
representations, warranties and covenants contained herein) shall continue to be
effective or be reinstated, as the case may be, if at any time any amount


                                       14

<PAGE>

received by Secured Party in respect of the indebtedness and obligations secured
hereunder is rescinded or must otherwise be restored or returned by Secured
Party upon or in connection with the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Debtor or any other person or upon or in
connection with the appointment of any intervenor or conservator of, or trustee
or similar official for, Debtor or any other person or any substantial part of
its assets, or otherwise, all as though such payments had not been made.

               (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction; Limitation on Damages. This Agreement constitutes the Security
Agreement as defined and referred to in the Development Agreement and the
Management Agreement. As such and without limiting the scope of such agreements,
the provisions of Article XIV of the Development Agreement and Article XIII of
the Management Agreement apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein; except
that the definition of "Limited Recourse" in the Development Agreement (and not
in the Management Agreement) shall apply to this Agreement. This Agreement will
be governed by the internal laws of the State of Minnesota (including the
Minnesota Uniform Commercial Code as in effect from time to time, which Code
shall apply without regard to any provision therein that would otherwise provide
that such Code is inapplicable to the Band, whether based upon the fact that the
Band is deemed to be a governmental body or otherwise) without giving effect to
its conflict of laws principles except that, to the extent that Minnesota law
shall not recognize the creation, perfection or fist priority of any security
interest of the Secured Party on Collateral that is recognized under a
commercial code adopted by Debtor as tribal law in accordance with Section
9.2.5(m) of the Development Agreement (the "Tribal UCC"), then such Tribal UCC
shall apply. The parties hereto may not change the law governing this Agreement
without express written consent of the Debtor and Secured Party.

               (m) Agreements Control. In the event of inconsistency between the
Development Agreement or the Management Agreement and this Agreement, the
Development Agreement or the Management Agreement shall control.

        [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:

                                        POKAGON BAND OF POTAWATOMI INDIANS


                                        By: /s/ John Miller
                                            ------------------------------------
                                        Name: John Miller
                                              ----------------------------------
                                        Title: Tribal Chairman
                                               ---------------------------------

                                        ATTEST:


                                        By: /s/ Dan Rapp
                                            ------------------------------------
                                        Name: Dan Rapp
                                              ----------------------------------
                                        Title: Secretary
                                               ---------------------------------


                                        SECURED PARTY:

                                        GREAT LAKES GAMING OF MICHIGAN, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

                                        ATTEST:


                                        By: /s/ Jan Saeugling
                                            ------------------------------------
                                        Name: Jan Saeugling
                                              ----------------------------------
                                        Title:
                                               ---------------------------------


                                       16
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.83
<SEQUENCE>18
<FILENAME>c92713exv10w83.txt
<DESCRIPTION>FIRST AMENDMENT TO UNLIMITED GUARANTY
<TEXT>
<PAGE>
                                                                   Exhibit 10.83

                                                               EXECUTION VERSION

                      FIRST AMENDMENT TO UNLIMITED GUARANTY

     This Agreement is made as of the 22nd day of December, 2004, by and among
Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc., a Minnesota corporation
("Lakes") and Lakes Gaming and Resorts, LC, a Minnesota limited liability
company ("LG & R"; collectively with Lakes, and each of Lakes and LG&R
individually, the "Guarantor"), and the Pokagon Band of Potawatomi Indians (the
"Band").

                                   WITNESSETH:

     WHEREAS, the Band and Lakes entered into a Development Agreement dated as
of July 8, 1999 (the "1999 Development Agreement") and a Management Agreement
dated as of July 8, 1999 (the "1999 Management Agreement"; collectively, with
the 1999 Development Agreement, the "1999 Agreements"), pursuant to which the
Band engaged Lakes to, among other things, assist the Band in the design,
development, construction and management of a gambling casino and certain
related amenities (as defined in the 1999 Development Agreement, the
"Facility"); and

     WHEREAS, pursuant to the 1999 Development Agreement Lakes agreed to make
certain payments and advances to the Band, including without limitation the
Transition Loan, the Lakes Development Loan and the Non-Gaming Land Acquisition
Line of Credit (collectively the "Lakes Loans"), and the Scholarship Program
Fee, and has agreed to perform development services with regard to the Facility,
all on the terms set out in that Agreement; and

     WHEREAS, pursuant to the 1999 Management Agreement Lakes agreed to manage
the Facility on the terms set out in that Agreement; and

     WHEREAS, Lakes assigned its rights and obligations under the 1999
Agreements to Great Lakes Gaming of Michigan, LLC ("Great Lakes"), pursuant to
an Assignment and Assumption Agreement dated as of October 16, 2000, subject to
the terms and conditions set out in that Agreement; and

     WHEREAS, the 1999 Agreements were amended and restated by First Amended and
Restated Development Agreement dated as of October 16, 2000 and by First Amended
and Restated Management Agreement dated as of October 16, 2000 (the "First
Amended and Restated Agreements"); and

     WHEREAS, Guarantor unconditionally guaranteed the obligations of Great
Lakes to the Band under the First Amended and Restated Agreements pursuant to an
Unlimited Guaranty dated as of October 16, 2000 (the "Guaranty"); and

     WHEREAS, Great Lakes, Lakes and the Band have entered into a Second Amended
and Restated Development Agreement dated as of December 22, 2004 and a Second
Amended and

<PAGE>

Restated Management Agreement dated as of December 22, 2004 (the "Second Amended
and Restated Agreements"); and

     WHEREAS, the parties wish to amend the Guaranty to reflect the execution of
the Second Amended and Restated Agreements, and to provide that pursuant to the
Guaranty each Guarantor shall unconditionally guarantee the obligations of Great
Lakes to the Band under the Second Amended and Restated Agreements and all
related documents and instruments;

     NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

1.   Recitals True. The above recitals are true.

2.   Defined Terms. Capitalized terms used but not otherwise defined herein and
     defined in the Second Amended and Restated Agreements shall have the same
     meaning herein as therein.

3.   Amendment to Guaranty. The Guaranty is amended as follows:

     a.   All references to the term "Development Agreement" shall mean the
          development agreement dated as of July 8, 1999 between Lakes and the
          Band, as assumed by Great Lakes under the Assignment and Assumption
          Agreement dated as of October 16, 2000, and as amended and restated by
          First Amended and Restated Development Agreement dated as of October
          16, 2000 and by Second Amended and Restated Development Agreement
          dated as of December 22, 2004.

     b.   All references to the term "Management Agreement" shall mean the
          management agreement dated as of July 8, 1999 between Lakes and the
          Band, as assumed by Great Lakes under the Assignment and Assumption
          Agreement dated as of October 16, 2000, and as amended and restated by
          First Amended and Restated Management Agreement dated as of October
          16, 2000 and by Second Amended and Restated Management Agreement dated
          as of December 22, 2004.

     c.   All references to the term "Lakes Loans" shall mean the Transition
          Loan, the Lakes Development Loan, the Non-Gaming Land Acquisition Line
          of Credit and the Lakes Facility Loan.

     d.   All references to the term "Obligations" shall mean any and all
          obligations of Great Lakes to the Band under or relating to the
          following documents and instruments:

          i.   Development Agreement;

          ii.  Management Agreement;

          iii. Second Amended and Restated Non-Gaming Land Acquisition Line of
               Credit dated as of December 22, 2004;


                                        2

<PAGE>

     iv.  Control Agreement, as assumed by Great Lakes pursuant to Assignment
          and Assumption Agreement dated as of October 16, 2000, and as amended
          by First Amendment dated as of October 16, 2000 and by Second
          Amendment dated as of December 22, 2004;

     v.   Pledge and Security Agreement, as assumed by Great Lakes pursuant to
          Assignment and Assumption Agreement dated as of October 16, 2000, and
          as amended by First Amendment dated as of October 16, 2000 and by
          Second Amendment dated as of December 22, 2004;

     vi.  Assignment and Assumption Agreement dated as of October 16, 2000, as
          amended by First Amendment dated as of December 22, 2004.

4.   Consent. Each Guarantor consents to the Second Amended and Restated
     Agreements and to all documents executed in connection therewith or related
     thereto.

5.   Reservation of Rights. By entering into this Agreement, the Band does not
     waive or affect any rights against any Guarantor.

6.   Warranties and Representations - Great Lakes and Lakes. Each of the
     Guarantors warrants, represents and covenants to the Band that:

     a.   The Guaranty, as amended by this Agreement, constitutes the legal,
          valid and binding obligation of each of the Guarantors, and is fully
          enforceable in accordance with its terms; and

     b.   Neither the execution or delivery of this Agreement nor fulfillment of
          or compliance with the terms and provisions hereof or of the Guaranty,
          as amended by this Agreement, will conflict with, or result in a
          breach of the terms, conditions or provisions of, constitute a default
          under or result in the creation of any lien, charge or encumbrance
          upon any property or assets of any Guarantor under any agreement or
          instrument to which they or either of them is now a party or by which
          they may be bound.

7.   Further Assurances. From time to time hereafter, each Guarantor and the
     Band will execute and deliver, or will cause to be executed and delivered,
     such additional instruments, certificates or documents, and will take all
     such actions, as may reasonably be requested by the other party or parties,
     for the purpose of implementing or effectuating the provisions of this
     Agreement.

8.   Governing Law. This Agreement shall be interpreted in accordance with the
     law of the internal law of Minnesota.

9.   Amendments, Assignments, Etc. Any provision of this Agreement may be
     amended if, but only if, such amendment is in writing and is signed by each
     of the parties hereto. No modification shall be implied from course of
     conduct.


                                        3

<PAGE>

10.  Gender and Number; Counterparts. Whenever the context so requires the
     masculine gender shall include the feminine and/or neuter and the singular
     number shall include the plural, and conversely in each case. This
     Agreement may be executed in separate counterparts and said counterparts
     shall be deemed to constitute one binding document.

11.  Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under this
     Agreement shall be subject to arbitration as provided in 18 of the
     Guaranty. The Band's limited waiver of sovereign immunity in 19 of the
     Guaranty shall apply to this Agreement.

12.  Ratification. Except as expressly modified in this Agreement, the Guaranty
     is ratified and confirmed and remains in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the 22nd day of December, 2004.

WITNESS:

                                        LAKES ENTERTAINMENT, INC., f/k/a LAKES
                                        GAMING, INC.


                                        BY: /s/ Timothy Cope
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        LAKES GAMING AND RESORTS, LLC


                                        BY: /s/ Timothy Cope
- -------------------------------------       ------------------------------------
                                        NAME: Timothy J. Cope
                                        ITS: President


                                        4

<PAGE>

                                        THE POKAGON BAND OF POTAWATOMI INDIANS


                                        BY:
- -------------------------------------       ------------------------------------
                                            John Miller
                                        ITS: Council Chairman


                                        BY:
- -------------------------------------       ------------------------------------
                                            Daniel Rapp
                                        ITS: Secretary


                                        5
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.84
<SEQUENCE>19
<FILENAME>c92713exv10w84.txt
<DESCRIPTION>SECOND AMENDED/RESTATED INDEMNITY AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.84

                                                               EXECUTION VERSION

                 SECOND AMENDED AND RESTATED INDEMNITY AGREEMENT

     This Indemnity Agreement is dated as of the 22nd day of December, 2004, by
and between the Pokagon Band of the Potawatomi Indians (the "Band") and Great
Lakes Gaming of Michigan, LLC, a Minnesota limited liability company ("Lakes"):

                                   WITNESSETH:

     WHEREAS, the Band and Lakes Entertainment, Inc., f/k/a Lakes Gaming, Inc.
("Lakes Entertainment") previously entered into Development Agreement dated as
of July 8, 1999, as assigned by Lakes Entertainment to Lakes pursuant to that
certain Assignment and Assumption Agreement dated October 16, 2000, by and among
the Band, Lakes Entertainment and Lakes, and as amended and restated by that
certain First Amended and Restated Development Agreement dated October 16, 2000
by and between the Band and Lakes, and as amended and restated by that certain
Second Amended and Restated Development Agreement dated as of December 22, 2004,
by and between the Band and Lakes (collectively, and as heretofore and hereafter
amended, the "Development Agreement"), pursuant to which the Band has engaged
Lakes to, among other things, assist the Band in the design, development,
construction and management of the Facility; and

     WHEREAS, Article 2 of the Development Agreement provides, among other
things, that Lakes shall finance the acquisition of all parcels of land
comprising the Gaming Site and the Non-Gaming Lands through the making of
advances (a) under the Lakes Note for the acquisition of each parcel of land
constituting the Gaming Site (all such advances, whether heretofore or hereafter
made, shall be collectively referred to as the "Gaming Site Advances"), and (b)
under the Non-Gaming Land Acquisition Line of Credit for each parcel of land
constituting the Non-Gaming Lands (all such advances, whether heretofore or
hereafter made, shall be collectively referred to as the "Non-Gaming Land
Advances" and together with all Gaming Site Advances shall be collectively
referred to as the "Advances"); and

     WHEREAS, as further provided in Article 2 of the Development Agreement, all
of the Gaming Site Advances and the Non-Gaming Land Advances are to be secured
by mortgages in favor of Lakes on the related parcels of land constituting the
Gaming Site and the Non-Gaming Lands; and

     WHEREAS, the Band, with the consent of Lakes, has formed and may hereafter
form certain related entities known as "Band Designees", including but not
limited to Pokagon Properties, LLC, a Delaware limited liability company
("PPLLC") and Filbert Land Development, LLC, an Indiana limited liability
company ("Filbert"), for the purpose of, at Band's option, acquiring title to
all or a portion of the Gaming Site and all or a portion of the Non-Gaming
Lands; and

     WHEREAS, each of the Advances (to the extent made in connection with any
Band

<PAGE>

Designee's acquisition of Gaming Site or Non-Gaming Land parcels) will be made
available by the Band to the Band Designee for the purpose of paying all costs
associated with the acquisition of the parcels of land constituting the Gaming
Site and the Non-Gaming Lands; and

     WHEREAS, Lakes has required and will be requiring each Band Designee to
execute and deliver certain Band Designee Guaranties and Band Designee Mortgages
(as each of such terms are defined in the Development Agreement) and amendments
thereto from time to time in connection with each acquisition of parcels of land
related to the Gaming Site and the Non-Gaming Lands and has required the Band to
execute and deliver that certain Indemnity Agreement dated October 16, 2000 by
and between the Band and Lakes, as amended and restated by that certain First
Amended and Restated Indemnity Agreement dated February 28, 2001 (collectively
the "Original Indemnity Agreement") to Lakes, all as a condition precedent to
the making of such Advances; and

     WHEREAS, in connection with the execution of the Second Amended and
Restated Development Agreement, the Band and Lakes desire to amend and restate
the Original Indemnity Agreement as set forth herein.

     NOW, THEREFORE, for valuable consideration, the receipt of which is hereby
acknowledged, and as an inducement to the Lakes to make the Advances to the
Band, the Band agrees as follows:

     1. Recitals True. The above recitals are true and this Second Amended and
this Second Amended and Restated Indemnity Agreement shall amend and restate the
Original Indemnity Agreement in its entirety.

     2. Definitions. Capitalized terms used but not otherwise defined herein and
defined in the Development Agreement shall have the same meaning herein as
therein.

     3. Indemnity - General. The Band agrees to indemnify and to hold Lakes (the
"Indemnitee") harmless from any and all claims, causes of action, damages,
penalties, fees and costs (to the extent such fees and costs are payable under
the respective Band Designee Mortgages) which may be asserted against, or
incurred by, Indemnitee resulting from or due to any Band Designee's failure to
pay and perform each of its obligations under any Band Designee Guaranty and the
respective Band Designee Mortgages (excluding obligations under Section 25 of
any Band Designee Mortgage) as and when required thereunder (collectively, the
"Indemnified Obligation"); provided that such indemnity shall only be due and
owing after an Event of Default has occurred under the applicable Band Designee
Guaranty or respective Band Designee Mortgage and all applicable notices have
been given and all rights of cure have expired, and either (a) the time within
which arbitration may be demanded has expired, or (b) if arbitration has been
timely demanded, as and to the extent allowed in an arbitration award. The
Band's duty to indemnify and hold harmless includes, but is not limited to,
proceedings or actions commenced by any person (including, but not limited to,
any federal, state, or local governmental agency or entity) before any court or
administrative agency asserting a claim for which Band must indemnify Indemnitee
under this section. The Band further agrees that pursuant to its duty to
indemnify under this section, the Band shall indemnify the Indemnitee against
all Indemnified Obligations incurred by it as they become due and not waiting
for the


                                        2

<PAGE>

ultimate outcome of such litigation or administrative proceeding.

     4. Indemnity - Hazardous Waste. The Band agrees to indemnify and to hold
Lakes and each of its officers, directors, shareholders, employees, agents,
attorneys and other representatives (individually and collectively, the
"Hazardous Waste Indemnitees") harmless from any and all claims, causes of
action, damages, penalties, fees and costs (to the extent such fees and costs
are payable under the respective Band Designee Mortgages) which may be asserted
against, or incurred by, any of the Hazardous Waste Indemnitees resulting from
or due to any Band Designee's failure to pay and perform its obligations under
Section 25 of any Band Designee Mortgage as and when required thereunder
(collectively, the "Hazardous Waste Indemnity Obligation"); provided that such
indemnity shall only be due and owing after an Event of Default has occurred
under the applicable Band Designee Guaranty or respective Band Designee Mortgage
and all applicable notices have been given and all rights of cure have expired,
and either (a) the time within which arbitration may be demanded has expired, or
(b) if arbitration has been timely demanded, as and to the extent allowed in an
arbitration award. The Band's duty to indemnify and hold harmless includes, but
is not limited to, loss or liability asserted in proceedings or actions
commenced by any person (including, but not limited to, any federal, state, or
local governmental agency or entity) before any court or administrative agency
asserting a claim for which Band must indemnify Hazardous Waste Indemnitees
under this section. The Band further agrees that pursuant to its duty to
indemnify under this section, the Band shall indemnify the Hazardous Waste
Indemnitees against all Hazardous Waste Indemnity Obligations incurred by them
as they become due and not waiting for the ultimate outcome of such litigation
or administrative proceeding. The Band's obligations to indemnify and hold the
Hazardous Waste Indemnitees harmless hereunder shall survive repayment,
satisfaction and/or foreclosure of the Guaranty, the respective Band Designee
Mortgages and all other obligations now or hereafter owed by the Band to Lakes
or its permitted assigns under the Development Agreement, the Management
Agreement (as defined in the Development Agreement) and any other instruments,
documents or agreements related thereto, but shall remain subject to the
provisions of Sections 6, 7, 8, 9 and 10 of this Indemnity Agreement, which
shall also survive such repayment, satisfaction or foreclosure.

     5. Advances under Loan Agreements. Notwithstanding the foregoing and
without limiting the rights of Lakes under each Band Designee Guaranty and the
respective Band Designee Mortgages, prior to the occurrence of the Commencement
Date for the Facility, all Indemnified Obligations and Hazardous Waste Indemnity
Obligations (collectively, the "Indemnity Obligations") accruing prior thereto
and not paid by the Band on demand by any of the Indemnitees, shall be deemed to
be an Advance made by Lakes to the Band under the terms of the Lakes Development
Note or the Non-Gaming Lands Acquisition Line of Credit, as applicable, and
shall accrue interest from the date incurred and be repayable in accordance with
the terms set forth therein; subject to timely demand for arbitration under
Section 6 and, if so demanded, the arbitration award. Thereafter, to the extent
any Indemnity Obligations are not paid on demand, the same shall constitute
"Operating Expenses" (as defined in the Management Agreement) paid by Lakes and
Lakes shall be entitled to reimbursement of the same under the Management
Agreement without any further consent or approval of the Band; subject to timely
demand for arbitration under Section 6 and, if so demanded, the arbitration
award.


                                        3

<PAGE>

     6. Arbitration; Limited Waiver of Sovereign Immunity. Any disputes under
this Indemnification Agreement shall be subject to arbitration as provided in
Section 14.2 of the Development Agreement and be resolved in the venues provided
in Section 14.1 of the Development Agreement. The Band's limited waiver of
sovereign immunity in Section 14.1 of the Development Agreement shall apply to
this Agreement.

     7. Limited Recourse. The liability of the Band under or relating to this
Agreement shall always be Limited Recourse, and in no instance shall any
enforcement of any kind whatsoever be allowed against any assets of the Band
other than the limited assets of the Band specified in the definition of Limited
Recourse and Section 14.3(a) of the Development Agreement.

     8. Governing Law. This Agreement shall be interpreted in accordance with
the law of Michigan.

     9. Amendments, Assignments, Etc. Any provision of this Agreement may be
amended if, but only if, such amendment is in writing and is signed by each of
the parties hereto. No modification shall be implied from course of conduct.
Lakes may not assign its rights and obligations hereunder except to an assignee
permitted under Section 10.5(a) of the Development Agreement. This Agreement may
be executed in separate counterparts and such counterparts shall be deemed to
constitute one binding document.

     10. Notices. The Band agrees that any notice or demand upon it shall be
deemed to be sufficiently given or served if it is in writing and is personally
served or in lieu of personal service is mailed by first class certified mail,
postage prepaid, or be overnight mail or courier service, addressed to the Band
at the address of the Band and with copies set forth in Section 15.4 of the
Development Agreement. Any notice or demand so mailed shall be deemed received
on the date of actual receipt, on the third business day following mailing as
herein set forth or one day following delivery to a courier service, whichever
first occurs.

     11. Termination. This Indemnity Agreement shall terminate (except as
provided in Section 4) upon the discharge of all Band Designee Mortgages.

                 (Balance of this page intentionally left blank)


                                        4

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Second Amended and
Restated Indemnity Agreement to be executed as of the 22nd day of December,
2004.

WITNESS:

                                        THE POKAGON BAND OF POTAWATOMI INDIANS

                                        /s/ John Miller
- -------------------------------------   ----------------------------------------
                                        By: John Miller
                                        Its: Council Chairman

                                        /s/ Daniel Rapp
- -------------------------------------   ----------------------------------------
                                        By: Daniel Rapp
                                        Its: Secretary


                                        GREAT LAKES GAMING OF MICHIGAN, LLC

                                        /s/ Timothy Cope
- -------------------------------------   ----------------------------------------
                                        By: Timothy J. Cope
                                        Its: President


                                        5
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.85
<SEQUENCE>20
<FILENAME>c92713exv10w85.txt
<DESCRIPTION>TRIBAL AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.85

                                TRIBAL AGREEMENT
                            (LAKES PAWNEE CONSULTING)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 12, 2005 ("Effective Date") by and among the Pawnee Nation of
Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe, the Pawnee
Tribal Development Corporation ("Pawnee TDC"), a tribally-chartered corporation
created under the Constitution of and a governmental subdivision of Pawnee
Nation, and Lakes Pawnee Consulting, LLC, a Minnesota limited liability company
("Lakes Consulting").

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established the following wholly-owned subsidiaries: the
following wholly-owned subsidiaries: Pawnee Trading Post Gaming Corporation
("Pawnee Trading Post"), Pawnee Travel Plaza Gaming Corporation ("Pawnee Travel
Plaza") and Pawnee Chilocco Gaming Corporation ( "Pawnee Chilocco" and together
with Pawnee Trading Post and Pawnee Travel Plaza, the "Pawnee Project
Subsidiaries") each as the legal entity which will own and operate certain
gaming projects which are to be developed by Pawnee TDC on behalf of the Pawnee
Nation (as further described in the Consulting Contracts referenced below) .

     B. Lakes Consulting has entered into separate Consulting Agreements with
each of Pawnee Trading Post, Pawnee Chilocco and Pawnee Travel Plaza and
respectively dated as of January 12, 2005 (as amended from time to time,
respectively the "Trading Post Consulting Contract", the "Chilocco Consulting
Contract" and the "Travel Plaza Consulting Contract" and collectively, the
"Consulting Contracts"), pursuant to which Lakes Consulting is to provide
certain financing, development and consulting services to each of the Pawnee
Project Subsidiaries with respect to certain "Projects", "Project Facilities"
and related Ancillary Facilities now or hereafter owned by such Pawnee Project
Subsidiary as described with specificity therein.

     C. Pursuant to the terms of the Consulting Contracts, each of Pawnee TDC
and Pawnee Nation are required to execute and deliver this Agreement to induce
Lakes Consulting to enter into the Consulting Contracts together with certain
additional documents and agreements referred to therein or related thereto.


                                       -1-

<PAGE>

     D. Pawnee TDC, Pawnee Nation and Lakes Consulting intend that this
Agreement shall be operative and binding upon the date of execution by the
parties (the "Effective Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee TDC,
Pawnee Nation and Lakes Consulting agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Consulting
Contracts and/or the other documents and agreements executed by each Pawnee
Project Subsidiary with respect thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
Pawnee TDC or Pawnee Nation and any of Lakes Consulting or any of its Affiliates
that is directly or indirectly related to this Agreement, any of the other
Transaction Documents, a Gaming Project or any Project Facilities, whether
arising under law or in equity, whether arising as a matter of contract or a
tort, and whether arising during or after the expiration of this Agreement or
any of the other Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(k) hereof.

     "Pawnee Entities" means individually and collectively, each of the Pawnee
Project Subsidiaries, Pawnee TDC and Pawnee Nation.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Consulting Contracts, the Pawnee Notes, the security agreements,
dominion account agreements, mortgages, resolutions of limited waiver and each
other document or instrument now or hereafter executed by any of the Pawnee
Project Subsidiaries, Pawnee TDC and/or Pawnee Nation in favor of Lakes
Consulting or its respective Affiliates and related thereto or hereto or any
Gaming Projects.

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. Each of Pawnee TDC and Pawnee
Nation represents and warrants to Lakes Consulting that:

     (a)  Organization. Each Pawnee Project Subsidiary is a wholly-owned and
          duly organized subsidiary of Pawnee TDC; Pawnee TDC is a duly
          organized tribally-chartered corporation created under the
          Constitution of the Pawnee Nation and


                                      -2-

<PAGE>

          wholly-owned governmental subdivision of the Pawnee Nation, and the
          Pawnee Nation is a federally recognized Indian tribe eligible to
          conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Each Pawnee TDC, and Pawnee Nation has taken all
          action required by tribal or other law or any applicable document or
          agreement, without the necessity of further action, as is necessary to
          authorize the applicable Pawnee Entity to execute, deliver and perform
          each of the Transaction Documents that such Pawnee Entity is party to.
          Each of Pawnee TDC and Pawnee Nation has all requisite power and
          authority to enter into the Transaction Documents to the extent a
          party thereto and to perform its respective obligations thereunder,
          and to consummate all other transactions contemplated thereby.

     (c)  Binding Obligations. Each of Transaction Documents (i) has been duly
          executed and delivered by each of Pawnee TDC and Pawnee Nation to the
          extent it is a party thereto, and (ii) constitutes the legal, valid,
          binding, perfected and enforceable obligation of each of Pawnee TDC
          and Pawnee Nation to the extent it is a party thereto, enforceable in
          accordance with its respective terms, except as enforceability may be
          limited by future bankruptcy, insolvency or similar proceedings,
          limitations on rights of creditors generally and principles of equity,
          and assuming the foregoing agreements are binding against the other
          parties thereto.

     (d)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Consulting to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (e)  No Material Negative Obligations. There are no outstanding obligations
          owing by any of Pawnee TDC or the Pawnee Nation, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect any Project or the
          obligations or rights of Lakes Consulting under any of the Transaction
          Documents to which it is a party.

     (f)  No Violation or Conflict. The execution, delivery and performance by
          each of Pawnee TDC and Pawnee Nation of each Transaction Documents
          that such Pawnee Entity is party to does not violate any Legal
          Requirements nor conflict with or result in any breach of any
          provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon any Project or any asset of any
          Pawnee Project Subsidiary, or result in the acceleration of any
          obligation of any Pawnee Project Subsidiary under the terms of any
          agreement or document binding upon such party, other than a conflict,
          breach, default or imposition as shall not materially adversely affect
          any particular Project or the obligations or rights of Lakes
          Consulting under any of the Transaction Documents to which it is a
          party.


                                       -3-

<PAGE>

     (g)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of either
          Pawnee TDC or Pawnee Nation, threatened, against either of them or
          their respective Affiliates, or any of the assets or properties of any
          of such entities, that could have a material adverse effect on any
          particular Project, its Project Facilities, any Pawnee Entity's
          ability to enter into or perform any of the Transaction Documents to
          the extent it is a party thereto.

     (h)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Pawnee TDC or Pawnee
          Nation is required to execute, deliver and perform its obligations
          hereunder.

     (i)  Full Disclosure. No representation or warranty of either Pawnee TDC or
          Pawnee Nation in this Agreement or the other Transaction Documents and
          no report or statement delivered to any of Lakes Consulting or its
          respective Affiliates by or on behalf of either Pawnee TDC or Pawnee
          Nation, contains any untrue statement or omits to state a material
          fact necessary to make any such representation, warranty, report or
          statement, in light of the circumstances in which they were made, not
          misleading. Each of Pawnee TDC and Pawnee Nation has fully disclosed
          to Lakes Consulting the existence and terms of all material agreements
          and Legal Requirements, written or oral, relating to any particular
          Project.

     (j)  No Tribal Tax. No particular Project, Project Facilities, any Pawnee
          Project Subsidiary, any of Lakes Consulting or its Affiliates, nor the
          transaction(s) between the parties contemplated by the Transaction
          Documents are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax, assessment or imposition of any
          sort other (i) reasonable pass-through taxes on Project patron which
          are consistent with gaming resort industry practices, and (ii) than
          license or other fees for background investigations performed by the
          Gaming Commission of "key employees" and "primary management
          officials" of the particular Project's Gaming Facility, as defined in
          25 C.F.R. Section 502.14 and 25 C.F.R. Section 502.19, and reasonable
          and customary regulatory fees imposed on the Gaming Facility by the
          Gaming Commission (which amounts shall be subject to an annually
          approved budget submitted by the Gaming Commission).

     (k)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of either
          Pawnee TDC and/or Pawnee Nation are owned and operated by one of the
          Pawnee Project Subsidiaries or if any Gaming Project is owned by
          another subsidiary of Pawnee TDC and/or Pawnee Nation, then such
          subsidiary has with respect to Lakes Consulting, entered into a
          consulting agreement and related documents with Lakes Consulting
          and/or its Affiliates on the same terms and conditions as are set
          forth in the Consulting Contracts and the other Transaction Documents,
          and otherwise satisfied the required conditions each as set forth in
          Section 3.1(f) hereof.


                                       -4-

<PAGE>

                                    ARTICLE 3
                                    COVENANTS

     Section 3.1 Covenants. Each of Pawnee TDC and Pawnee Nation covenants and
agrees as follows:

          (a)  Additional Documents. It shall or shall cause each Pawnee Project
               Subsidiary to execute any additional instruments as may be
               reasonably required by Lakes Consulting to carry out the intent
               of any of the Transaction Documents or to perfect or give further
               assurance of any of the rights granted or provided for under such
               Transaction Documents.

          (b)  Non-Impairment. It shall not and shall not permit any Pawnee
               Project Subsidiary or any of their other governmental
               instrumentalities or subsidiaries to enact any law, ordinance,
               rule or regulation impairing the rights or obligations of any
               Pawnee Entity or any of Lakes Consulting or its respective
               Affiliates under any of the Transaction Documents.

          (c)  No Tax. It shall not and shall not permit any Pawnee Project
               Subsidiary or any of their other governmental instrumentalities
               or subsidiaries to impose any tax, fee or assessment on any of
               Lakes Consulting, its respective Affiliates, any Contractor, any
               Project and its Project Facilities, and/or any of the
               transactions contemplated by the Transaction Documents other than
               (i) reasonable pass-through taxes on Project patron which are
               consistent with gaming resort industry practices, and (ii)
               license or other fees for background investigations performed by
               the Gaming Commission of "key employees" and "primary management
               officials" of the particular Project's Gaming Facility, as
               defined in 25 C.F.R. Section 502.14 and 25 C.F.R. Section 502.19,
               and reasonable and customary regulatory fees imposed on the
               Gaming Facility by the Gaming Commission (which amounts shall be
               subject to an annually approved budget submitted by the Gaming
               Commission).

          (d)  Gaming Project Ownership. Except as otherwise expressly excluded
               under the Transaction Documents, all Gaming Projects shall be
               owned and operated by one of the Pawnee Project Subsidiaries;
               provided that a Gaming Project may be owned and operated by
               another subsidiary of Pawnee TDC so long as prior to acquiring
               such ownership, (i) such subsidiary shall with respect to Lakes
               Consulting, have entered into a consulting agreement and related
               documents with Lakes Consulting and/or its Affiliates on the same
               terms and conditions as are set forth in the Consulting Agreement
               and the Transaction Documents related thereto; (ii)


                                       -5-

<PAGE>

               Lakes Consulting shall have received the following, each in form
               and substance reasonably acceptable to it: (aa) certified copies
               of the organizational documents of the new subsidiary, together
               with reasonable evidence that such subsidiary is wholly owned by
               Pawnee TDC, (bb) new Resolutions of Limited Waiver with respect
               to all of such documents and agreements from each of the new
               subsidiary, Pawnee TDC and Pawnee Nation containing substantially
               the same resolutions and terms as set forth in the Resolutions of
               Limited Waiver received by Lakes Consulting in connection with
               the execution of the original Transaction Documents, (cc) legal
               opinions from counsel to each of the new subsidiary, Pawnee TDC
               and Pawnee Nation with respect to the such new documents and
               agreements containing substantially the same opinions as provided
               to Lakes Consulting in connection with the execution of the
               original Transaction Documents, and (dd) each of Pawnee TDC and
               Pawnee Nation shall have executed and delivered an amendment to
               this Agreement incorporating all such new documents and
               agreements as additional "Transaction Documents" hereunder and
               such project subsidiaries, projects and related assets shall be
               subject to the same terms and restrictions set forth herein; and
               (iii) at the time of satisfaction of the foregoing conditions, no
               "Event of Default" by any Pawnee Entity under the Transaction
               Documents has occurred and is continuing.

          (e)  Charter Amendment. On or before June 1, 2005, unless otherwise
               agreed or waived in writing, the Pawnee Nation shall have
               delivered to Lakes Management either (i) a legal
               interpretation/opinion determination letter from the Pawnee
               Nation's attorneys or highest judicial office that any
               limitations or restrictions contained in the Corporate Charter of
               the Pawnee Tribe of Oklahoma, a federally-chartered corporation,
               does not apply to and has no legal effect on the validity of the
               Management Contracts, this Tribal Agreement or any related
               documents, or (ii) a certified copy of an amendment to the
               Corporate Charter of the Pawnee Tribe of Oklahoma, a
               federally-chartered corporation, or other evidence reasonably
               satisfactory to Lakes pursuant to which the Corporate Charter of
               the Pawnee Tribe of Oklahoma, federally-chartered corporation,
               shall have been amended to remove any limitations or restrictions
               that would otherwise prevent either the Pawnee Nation or Pawnee
               TDC and its wholly-owned subsidiaries from entering into this
               Tribal Agreement or any related documents or that would require
               the approval of the Management Contracts, this Tribal Agreement
               or any related documents from the Secretary of the Interior or
               any federal agency before the document becomes legally valid and
               enforceable.


                                       -6-

<PAGE>

                                    ARTICLE 4
                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by either Pawnee TDC or Pawnee Nation exists. As
          used in this paragraph, the term "Material Breach" shall mean any of
          the following circumstances (i) material failure of either of such
          parties to perform a material obligation hereunder or any other
          Transaction Document to which it is a party, or (ii) any
          representation or warranty made pursuant to Section 2.1 hereof proves
          to be knowingly false or erroneous in any material way when made or at
          any time shall fail to be true and correct in all material respects.

     (b)  Either Pawnee TDC or Pawnee Nation violates any of the covenants in
          Section 3.1 of this Agreement, and after sixty (60) days have passed
          following a request by Lakes Consulting to such Pawnee Entity to cure
          the violation, during which the violation has not been cured.

     (c)  Either Pawnee TDC or Pawnee Nation has: (i) filed for relief under the
          United States Bankruptcy Code or has suffered the filing of an
          involuntary petition under the Bankruptcy Code that is not dismissed
          within sixty (60) days after filing; (ii) a receiver appointed to take
          possession of all or substantially all of such entities property; or
          (iii) suffered an assignment for the benefit of creditors.

     (d)  The Pawnee Nation is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     Section 4.2 Cure of Event of Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to either Pawnee TDC or Pawnee Nation
of such default and, if it is possible for such party to cure the Event of
Default, it shall have thirty (30) days following receipt of notice to effect a
cure; provided, however, that if the nature of such breach (but specifically
excluding breaches curable by the payment of money) is such that it is not
possible to cure such breach within thirty (30) days, such thirty-day period
shall be extended for so long as either Pawnee TDC or Pawnee Nation, as
applicable, shall be using diligent efforts to effect a cure thereof but no more
than an additional sixty (60) days. Upon the occurrence of any of the events
described in Section 4.1 and during any applicable cure period, Lakes Consulting
may suspend its performance under the Transaction Documents. The discontinuance
or correction of an Event of Default shall constitute a cure thereof. If either
Pawnee TDC or Pawnee Nation fails to cure the Event of Default within the 30-day
period, Lakes Consulting may take any one or more of the following actions: (a)
suspend all performance of Lakes Consulting under the Transaction Documents; (b)
declare all obligations of any Pawnee Entity under the Transaction Documents to
be immediately due and owing, (c) terminate either or both of the Consulting


                                       -7-

<PAGE>

Contracts; and/or or (d) pursue any other remedy available at law, in equity or
by agreement, subject to the provisions of Article 5 hereof.

                                    ARTICLE 5
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                           JURISDICTION; GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality.

     (c)  The arbitration award, order or decision shall be in writing signed by
          each of the arbitrators, and shall state the basis for the award. The
          arbitration award, order or decision shall be set forth in reasonable
          detail as to its findings of fact and law, and basis of determination
          of award form and amount or decision. Except to the extent such
          enforcement will be inconsistent with a specific provision of this
          Agreement, arbitration awards, orders and decisions made pursuant to
          this Article 5 shall be enforceable in federal court under Title 9 of
          the United States Code and any applicable tribal, federal or state law
          governing the enforcement of arbitration


                                       -8-

<PAGE>

          awards, orders or decisions. In addition to any basis for appeal of an
          arbitration award, order or decision stated in Title 9 of the United
          States Code or any applicable law governing the enforcement of
          arbitration awards, orders or decisions, either party hereto may
          appeal an arbitration award, order or decision on the basis that the
          arbitrators incorrectly decided a question of law in making the award,
          order or decision, or the award, order or decision was made in an
          arbitrary or capricious manner or in manifest disregard of the factual
          evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award, order or decision may be entered in
          any court having jurisdiction over the parties. The arbitrators shall
          have the power to grant injunctive and other equitable relief but not
          have the power to award punitive, exemplary or consequential damages,
          or any damages excluded by or in excess of any damage limitations
          expressed in this Agreement.

     (f)  Each of Pawnee TDC and Pawnee Nation hereby expressly waives, and also
          waives its right to assert, sovereign immunity and any and all
          defenses based thereon with respect to any Claims; and each of such
          parties further hereby consents to (i) binding arbitration under the
          Commercial Arbitration Rules of the American Arbitration Association,
          (ii) to empowering the arbitrators to take the actions and enforce the
          judicial remedies described herein and in each of the Pawnee TDC
          Resolution of Limited Waiver of Sovereign Immunity, Resolution #05 -
          02, dated January 12,, 2005 and Pawnee Nation Resolution of Limited
          Waiver of Sovereign Immunity, Resolution #05 - 03, dated January 12,
          2005 issued in connection with the execution of the Transaction
          Documents (collectively, the Resolutions of Limited Waiver"), and
          (iii) judicial proceedings in or before the United States District
          Court for the Northern District of Oklahoma and all courts to which an
          appeal therefrom may be available, or if that court determines it is
          without jurisdiction, then to the courts of the State of Oklahoma and
          all courts to which an appeal therefrom may be available, or if that
          court determines it is without jurisdiction, then consents to any
          tribal courts and all courts to which an appeal therefrom may be
          available, but in each case, solely to compel arbitration or to
          enforce, modify or vacate any arbitration award, order or decision of
          the abitrators.

     (g)  To the extent lawful in connection with any such Claims, each of
          Pawnee TDC and Pawnee Nation expressly waive the application of the
          doctrines of exhaustion of tribal remedies or comity that might
          otherwise require that Claims be heard first in tribal court or other
          tribal forum of Pawnee Nation. The waivers set forth herein only
          extend to claims or proceedings brought by Lakes Consulting and its
          Affiliates and any award of damages against any of Pawnee TDC, Pawnee
          Nation


                                       -9-

<PAGE>

          or their respective Affiliates shall be payable solely out of the
          Collateral (as defined in the Resolutions of Limited Waiver) whether
          now or hereafter owned by any Pawnee Project Subsidiary, any other
          Pawnee Entity or their Affiliates.

     (h)  Each of Pawnee TDC and Pawnee Nation, on behalf of themselves and each
          of their Affiliates, agrees that any arbitration proceeding hereunder
          may be consolidated with any other arbitration proceeding that any of
          Lakes Consulting or its respective Affiliates may bring against one or
          more of the Pawnee Project Subsidiaries or any other Affiliates of the
          Pawnee Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State of Oklahoma, except such State's conflict of laws provisions shall not
apply.

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Consulting may assign this
Agreement to a wholly owned subsidiary without the consent of Pawnee TDC or
Pawnee Nation; provided further that Lakes Consulting, as applicable, shall
remain obligated for the performance of its subsidiary hereunder. Other than as
expressly provided in this Section 6.1, any attempted assignment or
subcontracting without prior written consent shall be void. Subject to the
preceding requirements, this Agreement is binding upon and inures to the benefit
of the parties and their respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:

If to Pawnee TDC or
Pawnee Nation:      Pawnee Nation of Oklahoma
                    871 Little D. Drive, Building 68
                    P.O. Box 280
                    Pawnee, OK 74058,


                                      -10-

<PAGE>

                  Attention: Chairman

With a Copy to:   David J. Ketelsleger, Esq.
                  McAfee & Taft
                  Two Leadership Square
                  Tenth Floor
                  211 Noth Robinson
                  Oklahoma City, OK 73102-7103
                  (copy to counsel does not constitute notice to a party)

If to Lakes:      Lakes Pawnee Consulting, LLC
                  130 Cheshire Lane
                  Minnetonka, MN 55305
                  Attn: Timothy J. Cope

With a Copy to:   Kevin C. Quigley, Esq.
                  Hamilton Quigley Twait & Foley PLC
                  W1450 First National bank Building
                  332 Minnesota Street
                  St. Paul, MN 55101-1314

          and     Brian J. Klein, Esq.
                  Maslon, Edelman, Borman & Brand, LLP
                  3300 Wells Fargo Center
                  90 South Seventh Street
                  Minneapolis, MN 55402-4140
                  (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.


                                      -11-

<PAGE>

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                      -12-

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        PAWNEE TRIBAL DEVELOPMENT CORPORATION


                                        By /s/ Tommie Briggs
                                           -------------------------------------
                                        Its: Chairman


                                        By /s/ Elizabeth Blackowl
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        PAWNEE NATION OF OKLAHOMA


                                        By /s/ George Howell
                                           -------------------------------------
                                        Its: President


                                        By /s/ Geraldine Howell
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                           Timothy J. Cope
                                        Its: President and
                                             Chief Financial Officer

        [Signature Page to Tribal Agreement dated as of January 12, 2005]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.86
<SEQUENCE>21
<FILENAME>c92713exv10w86.txt
<DESCRIPTION>TRIBAL AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.86

                                TRIBAL AGREEMENT
                            (LAKES PAWNEE MANAGEMENT)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 12, 2005("Effective Date") by and among the Pawnee Nation of
Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe, the Pawnee
Tribal Development Corporation ("Pawnee TDC"), a tribally-chartered corporation
created under the Constitution of and a governmental subdivision of Pawnee
Nation, and Lakes Pawnee Management, LLC, a Minnesota limited liability company
("Lakes Management").

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established the following wholly-owned subsidiaries:
Pawnee Trading Post Gaming Corporation ("Pawnee Trading Post"), Pawnee Travel
Plaza Gaming Corporation ("Pawnee Travel Plaza") and Pawnee Chilocco Gaming
Corporation ( "Pawnee Chilocco" and together with Pawnee Trading Post and Pawnee
Travel Plaza, the "Pawnee Project Subsidiaries"), each as the legal entity which
will own and operate certain gaming projects which are to be developed by Pawnee
TDC on behalf of the Pawnee Nation (as further described in the Management
Contracts referenced below).

     B. Lakes Management has entered into separate Management Agreements with
each of Pawnee Trading Post, Pawnee Chilocco and Pawnee Travel Plaza and
respectively dated as of January 12, 2005 (as amended from time to time,
respectively the " Trading Post Management Contract", the "Chilocco Management
Contract" and the "Travel Plaza Management Contract" and collectively, the
"Management Contracts"), pursuant to which Lakes Management is to provide
certain management services to each of the Pawnee Project Subsidiaries with
respect to certain "Projects", "Project Facilities" and related Ancillary
Facilities now or hereafter owned by such Pawnee Project Subsidiary as described
with specificity therein.

     C. Pursuant to the terms of the Management Contracts, each of Pawnee TDC
and Pawnee Nation are required to execute and deliver this Agreement to induce
Lakes Management to enter into the Management Contracts together with certain
additional documents and agreements referred to therein or related thereto.

     D. Pawnee TDC, Pawnee Nation and Lakes Management intend that this
Agreement shall be operative and binding upon the date of execution by the
parties (the "Effective Date").


                                       -1-

<PAGE>

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee TDC,
Pawnee Nation and Lakes Management agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Management
Contracts and/or the other documents and agreements executed by each Pawnee
Project Subsidiary with respect thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
Pawnee TDC or Pawnee Nation and any of Lakes Management or any of its Affiliates
that is directly or indirectly related to this Agreement, any of the other
Transaction Documents, a Gaming Project or any Project Facilities, whether
arising under law or in equity, whether arising as a matter of contract or a
tort, and whether arising during or after the expiration of this Agreement or
any of the other Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(k) hereof.

     "Pawnee Entities" means individually and collectively, each of the Pawnee
Project Subsidiaries, Pawnee TDC and Pawnee Nation.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Management Contracts, the Operating Notes, the security
agreements, dominion account agreements, mortgages, resolutions of limited
waiver and each other document or instrument now or hereafter executed by any of
the Pawnee Project Subsidiaries, Pawnee TDC and/or Pawnee Nation in favor of
Lakes Management or its respective Affiliates and related thereto or hereto or
any Gaming Projects.

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. Each of Pawnee TDC and Pawnee
Nation represents and warrants to Lakes Management that:

     (a)  Organization. Each Pawnee Project Subsidiary is a wholly-owned and
          duly organized subsidiary of Pawnee TDC; Pawnee TDC is a duly
          organized tribally-chartered corporation created under the
          Constitution of the Pawnee Nation and is a wholly-owned governmental
          subdivision of the Pawnee Nation; and the Pawnee Nation is a federally
          recognized Indian tribe eligible to conduct gaming within the meaning
          of IGRA.


                                       -2-

<PAGE>

     (b)  Authority and Power. Each of Pawnee TDC and Pawnee Nation has taken
          all action required by tribal or other law or any applicable document
          or agreement, without the necessity of further action, as is necessary
          to authorize the applicable Pawnee Entity to execute, deliver and
          perform each of the Transaction Documents that such Pawnee Entity is
          party to. Each of Pawnee TDC and Pawnee Nation has all requisite power
          and authority to enter into the Transaction Documents to the extent a
          party thereto and to perform its respective obligations thereunder,
          and to consummate all other transactions contemplated thereby.

     (c)  Binding Obligations. Each of Transaction Documents (i) has been duly
          executed and delivered by each of Pawnee TDC and Pawnee Nation to the
          extent it is a party thereto, and (ii) constitutes the legal, valid,
          binding, perfected and enforceable obligation of each of Pawnee TDC
          and Pawnee Nation to the extent it is a party thereto, enforceable in
          accordance with its respective terms, except as enforceability may be
          limited by future bankruptcy, insolvency or similar proceedings,
          limitations on rights of creditors generally and principles of equity,
          and assuming the foregoing agreements are binding against the other
          parties thereto.

     (d)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Management to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (e)  No Material Negative Obligations. There are no outstanding obligations
          owing by any of Pawnee TDC or the Pawnee Nation, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect any Project or the
          obligations or rights of Lakes Management under any of the Transaction
          Documents to which it is a party.

     (f)  No Violation or Conflict. The execution, delivery and performance by
          each of Pawnee TDC and Pawnee Nation of each Transaction Documents
          that such Pawnee Entity is party to does not violate any Legal
          Requirements nor conflict with or result in any breach of any
          provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon Project or any asset of any
          Pawnee Project Subsidiary, or result in the acceleration of any
          obligation of any Pawnee Project Subsidiary under the terms of any
          agreement or document binding upon such party, other than a conflict,
          breach, default or imposition as shall not materially adversely affect
          any particular Project or the obligations or rights of Lakes
          Management under any of the Transaction Documents to which it is a
          party.

     (g)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of either
          Pawnee TDC or Pawnee Nation, threatened, against either of them or
          their respective Affiliates, or any of


                                       -3-

<PAGE>

          the assets or properties of any of such entities, that could have a
          material adverse effect on any particular Project, its Project
          Facilities, any Pawnee Entity's ability to enter into or perform any
          of the Transaction Documents to the extent it is a party thereto.

     (h)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Pawnee TDC or Pawnee
          Nation is required to execute, deliver and perform its obligations
          hereunder.

     (i)  Full Disclosure. No representation or warranty of either Pawnee TDC or
          Pawnee Nation in this Agreement or the other Transaction Documents and
          no report or statement delivered to any of Lakes Management or its
          respective Affiliates by or on behalf of either Pawnee TDC or Pawnee
          Nation, contains any untrue statement or omits to state a material
          fact necessary to make any such representation, warranty, report or
          statement, in light of the circumstances in which they were made, not
          misleading. Each of Pawnee TDC and Pawnee Nation has fully disclosed
          to Lakes Management the existence and terms of all material agreements
          and Legal Requirements, written or oral, relating to any particular
          Project.

     (j)  No Tribal Tax. No particular Project, Project Facilities, any Pawnee
          Project Subsidiary, any of Lakes Management or its Affiliates, nor the
          transaction(s) between the parties contemplated by the Transaction
          Documents are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax, assessment or imposition of any
          sort other than (i) reasonable pass-through taxes on Project patron
          which are consistent with gaming resort industry practices, and (ii)
          license or other fees for background investigations performed by the
          Gaming Commission of "key employees" and "primary management
          officials" of the particular Project's Gaming Facility, as defined in
          25 C.F.R. Section 502.14 and 25 C.F.R. Section 502.19, and reasonable
          and customary regulatory fees imposed on the Gaming Facility by the
          Gaming Commission (which amounts shall be subject to an annually
          approved budget submitted by the Gaming Commission).

     (k)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of either
          Pawnee TDC and/or Pawnee Nation are owned and operated by one of the
          Pawnee Project Subsidiaries, or if any Gaming Project is owned by
          another subsidiary of Pawnee TDC and/or Pawnee Nation, then (i) if the
          Gaming Project constitutes the Project, Gaming Facility and Project
          Facilities described and defined in the Management Contract, such
          subsidiary has entered into a Management Contract and related
          documents with Lakes Management and/or its Affiliates with respect
          thereto on the same terms and conditions as are set forth in the
          Management Contract and the other Transaction Documents, and has
          otherwise satisfied the terms and conditions required by Section 3.1
          (f) hereof,


                                       -4-

<PAGE>

          or (ii) with respect to any other Gaming Projects, the subsidiary has
          entered into a written agreement with Lakes Management and/or its
          Affiliates granting such entity the same right of first refusal to
          manage such projects as has been granted to Lakes Management under the
          terms of Section 9.21 of the Management Contract and has otherwise
          satisfied the terms and conditions required by Section 3.1 (f) hereof.

                                    ARTICLE 3
                                    COVENANTS

     Section 3.1 Covenants. Each of Pawnee TDC and Pawnee Nation covenants and
agrees as follows:

          (a)  Additional Documents. It shall or shall cause each Pawnee Project
               Subsidiary to execute any additional instruments as may be
               reasonably required by Lakes Management to carry out the intent
               of any of the Transaction Documents or to perfect or give further
               assurance of any of the rights granted or provided for under such
               Transaction Documents.

          (b)  Non-Impairment. It shall not and shall not permit any Pawnee
               Project Subsidiary or any of their other governmental
               instrumentalities or subsidiaries to enact any law, ordinance,
               rule or regulation impairing the rights or obligations of any
               Pawnee Entity or any of Lakes Management or its respective
               Affiliates under any of the Transaction Documents.

          (c)  No Tax. It shall not and shall not permit any Pawnee Project
               Subsidiary or any of their other governmental instrumentalities
               or subsidiaries to impose any tax, fee or assessment on any of
               Lakes Management, its respective Affiliates, any Contractor, any
               Project and its Project Facilities, and/or any of the
               transactions contemplated by the Transaction Documents other than
               (i) reasonable pass-through taxes on Project patron which are
               consistent with gaming resort industry practices, and (ii)
               license or other fees for background investigations performed by
               the Gaming Commission of "key employees" and "primary management
               officials" of the particular Project's Gaming Facility, as
               defined in 25 C.F.R. Section 502.14 and 25 C.F.R. Section 502.19,
               and reasonable and customary regulatory fees imposed on the
               Gaming Facility by the Gaming Commission (which amounts shall be
               subject to an annually approved budget submitted by the Gaming
               Commission).

          (d)  Gaming Project Ownership. Except as otherwise expressly excluded
               under the Transaction Documents, all Gaming Projects shall be
               owned and


                                       -5-

<PAGE>

               operated by one of the Pawnee Project Subsidiaries; provided that
               a Gaming Project may be owned and operated by another subsidiary
               of Pawnee TDC so long as prior to acquiring such ownership: (i)
               if the Project, Gaming Facility and Project Facilities described
               and defined in any applicable Management Contract are owned by
               such other subsidiary, such subsidiary has entered into a
               Management Contract and related documents with Lakes Management
               and/or its Affiliates with respect thereto on the same terms and
               conditions as are set forth in such Management Contract and the
               Transaction Documents related thereto, (ii) with respect to any
               other gaming projects owned or to be owned by such other
               subsidiary, the subsidiary has entered into a written agreement
               with Lakes Management and/or its Affiliates granting such entity
               the same right of first refusal to manage such projects as has
               been granted to Lakes Management under the terms of Section 9.21
               of the Management Contract; (iii) Lakes Management shall have
               received the following, each in form and substance reasonably
               acceptable to it: (aa) certified copies of the organizational
               documents of the new subsidiary, together with reasonable
               evidence that such subsidiary is wholly owned by Pawnee TDC, (bb)
               new Resolutions of Limited Waiver with respect to all of such
               documents and agreements from each of the new subsidiary, Pawnee
               TDC and Pawnee Nation containing substantially the same
               resolutions and terms as set forth in the Resolutions of Limited
               Waiver received by Lakes Management in connection with the
               execution of the original Transaction Documents, (cc) legal
               opinions from counsel to each of the new subsidiary, Pawnee TDC
               and Pawnee Nation with respect to the such new documents and
               agreements containing substantially the same opinions as provided
               to Lakes Management in connection with the execution of the
               original Transaction Documents, and (dd) each of Pawnee TDC and
               Pawnee Nation shall have executed and delivered an amendment to
               this Agreement incorporating all such new documents and
               agreements as additional "Transaction Documents" hereunder and
               such project subsidiaries, projects and related assets shall be
               subject to the same terms and restrictions set forth herein; and
               (iv) at the time of satisfaction of the foregoing conditions, no
               "Event of Default" by any Pawnee Entity under the Transaction
               Documents has occurred and is continuing.

          (e)  Charter Amendment. On or before June 1, 2005, unless otherwise
               agreed or waived in writing, the Pawnee Nation shall have
               delivered to Lakes Management either (i) a legal
               interpretation/opinion determination letter from the Pawnee
               Nation's attorneys or highest judicial office that any
               limitations or restrictions contained in the Corporate Charter of
               the Pawnee Tribe of Oklahoma, a federally-chartered corporation,
               does not apply to and has no legal effect on the validity of the
               Management Contracts, this Tribal Agreement or any related
               documents, or (ii) a certified copy of an amendment to the
               Corporate Charter of the Pawnee Tribe of Oklahoma, a
               federally-chartered corporation, or other evidence reasonably
               satisfactory to Lakes pursuant to which the Corporate Charter


                                      -6-

<PAGE>

               of the Pawnee Tribe of Oklahoma, federally-chartered corporation,
               shall have been amended to remove any limitations or restrictions
               that would otherwise prevent either the Pawnee Nation or Pawnee
               TDC and its wholly-owned subsidiaries from entering into this
               Tribal Agreement or any related documents or that would require
               the approval of the Management Contracts, this Tribal Agreement
               or any related documents from the Secretary of the Interior or
               any federal agency before the document becomes legally valid and
               enforceable.

                                    ARTICLE 4
                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by either Pawnee TDC or Pawnee Nation exists. As
          used in this paragraph, the term "Material Breach" shall mean any of
          the following circumstances (i) material failure of either of such
          parties to perform a material obligation hereunder or any other
          Transaction Document to which it is a party, or (ii) any
          representation or warranty made pursuant to Section 2.1 hereof proves
          to be knowingly false or erroneous in any material way when made or at
          any time shall fail to be true and correct in all material respects.

     (b)  Either Pawnee TDC or Pawnee Nation violates any of the covenants in
          Section 3.1 of this Agreement, and after sixty (60) days have passed
          following a request by Lakes Management to such Pawnee Entity to cure
          the violation, during which the violation has not been cured.

     (c)  Either Pawnee TDC or Pawnee Nation has: (i) filed for relief under the
          United States Bankruptcy Code or has suffered the filing of an
          involuntary petition under the Bankruptcy Code that is not dismissed
          within sixty (60) days after filing; (ii) a receiver appointed to take
          possession of all or substantially all of such entities property; or
          (iii) suffered an assignment for the benefit of creditors.

     (d)  The Pawnee Nation is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     Section 4.2 Cure of Event of Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to either Pawnee TDC or Pawnee Nation
of such default and, if it is possible for such party to cure the Event of
Default, it shall have thirty (30) days following receipt of notice to effect a
cure; provided, however, that if the nature of such breach (but specifically
excluding breaches curable by the payment of money) is such that it is not
possible to cure such breach within thirty (30) days, such thirty-day period
shall be extended for so long


                                      -7-

<PAGE>

as either Pawnee TDC or Pawnee Nation, as applicable, shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
Upon the occurrence of any of the events described in Section 4.1 and during any
applicable cure period, Lakes Management may suspend its performance under the
Transaction Documents. The discontinuance or correction of an Event of Default
shall constitute a cure thereof. If either Pawnee TDC or Pawnee Nation fails to
cure the Event of Default within the 30-day period, Lakes Management may take
any one or more of the following actions: (a) suspend all performance of Lakes
Management under the Transaction Documents; (b) declare all obligations of any
Pawnee Entity under the Transaction Documents to be immediately due and owing,
(c) terminate either or both of the Management Contracts; and/or or (d) pursue
any other remedy available at law, in equity or by agreement, subject to the
provisions of Article 5 hereof.

                                    ARTICLE 5
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                           JURISDICTION; GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality.


                                       -8-

<PAGE>

     (c)  The arbitration award, order or decision shall be in writing signed by
          each of the arbitrators, and shall state the basis for the award. The
          arbitration award, order or decision shall be set forth in reasonable
          detail as to its findings of fact and law, and basis of determination
          of award form and amount or decision. Except to the extent such
          enforcement will be inconsistent with a specific provision of this
          Agreement, arbitration awards, orders and decisions made pursuant to
          this Article 5 shall be enforceable in federal court under Title 9 of
          the United States Code and any applicable tribal, federal or state law
          governing the enforcement of arbitration awards, orders or decisions.
          In addition to any basis for appeal of an arbitration award, order or
          decision stated in Title 9 of the United States Code or any applicable
          law governing the enforcement of arbitration awards, orders or
          decisions, either party hereto may appeal an arbitration award, order
          or decision on the basis that the arbitrators incorrectly decided a
          question of law in making the award, order or decision, or the award,
          order or decision was made in an arbitrary or capricious manner or in
          manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award, order or decision may be entered in
          any court having jurisdiction over the parties. The arbitrators shall
          have the power to grant injunctive and other equitable relief but not
          have the power to award punitive, exemplary or consequential damages,
          or any damages excluded by or in excess of any damage limitations
          expressed in this Agreement.

     (f)  Each of Pawnee TDC and Pawnee Nation hereby expressly waives, and also
          waives its right to assert, sovereign immunity and any and all
          defenses based thereon with respect to any Claims; and each of such
          parties further hereby consents to (i) binding arbitration under the
          Commercial Arbitration Rules of the American Arbitration Association,
          (ii) to empowering the arbitrators to take the actions and enforce the
          judicial remedies described herein and in each of the Pawnee TDC
          Resolution of Limited Waiver of Sovereign Immunity, Resolution #05 -
          02, dated January 12, 2005 and Pawnee Nation Resolution of Limited
          Waiver of Sovereign Immunity, Resolution #05 - 03, dated January 12,
          2005 issued in connection with the execution of the Transaction
          Documents (collectively, the Resolutions of Limited Waiver"), and
          (iii) judicial proceedings in or before the United States District
          Court for the Northern District of Oklahoma and all courts to which an
          appeal therefrom may be available, or if that court determines it is
          without jurisdiction, then to the courts of the State of Oklahoma and
          all courts to which an appeal therefrom may be available, or if that
          court determines it is without jurisdiction, then consents to any
          tribal courts and all courts to which an appeal therefrom may be
          available, but in each case, solely


                                       -9-

<PAGE>

          to compel arbitration or to enforce, modify or vacate any arbitration
          award, order or decision of the abitrators.

     (g)  To the extent lawful in connection with any such Claims, each of
          Pawnee TDC and Pawnee Nation expressly waive the application of the
          doctrines of exhaustion of tribal remedies or comity that might
          otherwise require that Claims be heard first in tribal court or other
          tribal forum of Pawnee Nation. The waivers set forth herein only
          extend to claims or proceedings brought by Lakes Management and its
          Affiliates and any award of damages against any of Pawnee TDC, Pawnee
          Nation or their respective Affiliates shall be payable solely out of
          the Collateral (as defined in the Resolutions of Limited Waiver)
          whether now or hereafter owned by any Pawnee Project Subsidiary, any
          other Pawnee Entity or their Affiliates.

     (h)  Each of Pawnee TDC and Pawnee Nation, on behalf of themselves and each
          of their Affiliates, agrees that any arbitration proceeding hereunder
          may be consolidated with any other arbitration proceeding that any of
          Lakes Management or its respective Affiliates may bring against one or
          more of the Pawnee Project Subsidiaries or any other Affiliates of the
          Pawnee Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State of Oklahoma, except such State's conflict of laws provisions shall not
apply.

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Management may assign this
Agreement to a wholly owned subsidiary without the consent of Pawnee TDC or
Pawnee Nation; provided further that Lakes Management, as applicable, shall
remain obligated for the performance of its subsidiary hereunder. Other than as
expressly provided in this Section 6.1, any attempted assignment or
subcontracting without prior written consent shall be void. Subject to the
preceding requirements, this Agreement is binding upon and inures to the benefit
of the parties and their respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:

If to PawneeTDC or
Pawnee Nation:    Pawnee Nation of Oklahoma


                                      -10-

<PAGE>

                  871 Little D. Drive, Building 68
                  P.O. Box 280
                  Pawnee, OK 74058
                  Attention: Chairman

With a Copy to:   David J. Ketelsleger, Esq.
                  McAfee & Taft
                  Two Leadership Square
                  Tenth Floor
                  211 Noth Robinson
                  Oklahoma City, OK 73102-7103
                  (copy to counsel does not constitute notice to a party)

If to Lakes:      Lakes Pawnee Management, LLC
                  130 Cheshire Lane
                  Minnetonka, MN 55305
                  Attn: Timothy J. Cope

With a Copy to:   Kevin C. Quigley, Esq.
                  Hamilton Quigley Twait & Foley PLC
                  W1450 First National bank Building
                  332 Minnesota Street
                  St. Paul, MN 55101-1314

     and          Brian J. Klein, Esq.
                  Maslon, Edelman, Borman & Brand, LLP
                  3300 Wells Fargo Center
                  90 South Seventh Street
                  Minneapolis, MN 55402-4140
                  (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.


                                      -11-

<PAGE>

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                      -12-

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        PAWNEE TRIBAL DEVELOPMENT CORPORATION


                                        By /s/ Tommie Briggs
                                           -------------------------------------
                                        Its: Chairman


                                        By /s/ Elizabeth Blackowl
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        PAWNEE NATION OF OKLAHOMA


                                        By /s/ George Howell
                                           -------------------------------------
                                        Its: President


                                        By /s/ Garaldine Howell
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES PAWNEE MANAGEMENT, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                           Timothy J. Cope
                                        Its: President and
                                             Chief Financial Officer

        [Signature Page to Tribal Agreement dated as of January 12, 2005]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.87
<SEQUENCE>22
<FILENAME>c92713exv10w87.txt
<DESCRIPTION>GAMING DEVELOPMENT CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.87

                               GAMING DEVELOPMENT
                              CONSULTING AGREEMENT

     THIS GAMING DEVELOPMENT CONSULTING AGREEMENT (hereinafter referred to as
the "Agreement") is made as of January 12, 2005 ("Effective Date") by and
between the Pawnee Trading Post Gaming Corporation ("Pawnee"), a wholly-owned
subsidiary of the Pawnee Tribal Development Corporation ("Pawnee TDC"), each
created under the Constitution of and a governmental subdivision of the Pawnee
Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe, and
Lakes Pawnee Consulting, LLC, a Minnesota limited liability company ("Lakes").

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established Pawnee, a wholly-owned subsidiary of Pawnee
TDC and tribally-chartered corporation, as the legal entity which will own and
operate certain gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     B. Pawnee wishes to develop, construct and operate gaming facility projects
which will conduct Class II Gaming (and also Class III Gaming activities in the
event of federal agency approval of a Tribal-State Compact between the Pawnee
Nation and the State of Oklahoma permitting such gaming) ("Gaming Facilities,"
as further defined herein), together with related amenities such as a hotel,
food and beverage facilities, retail outlets, and ancillary building and
enterprises that enhance the Gaming Facilities ("Ancillary Facilities," as
further defined herein) (the Gaming Facilities and the Ancillary Facilities
together, the "Project Facilities"). Pawnee and Lakes intend that the Project
Facilities will be developed as individual projects according to a development
schedule agreed to by the parties. The Project Facilities are expected to
generate substantial revenues for Pawnee TDC, and therefore significantly
improve the social, economic and health conditions of present and future tribal
members, while strengthening the Pawnee Nation's overall economic
self-sufficiency and self-determination.

     C. Lakes has the requisite skills, resources, experience, and expertise
related to real estate acquisitions, financing, development and construction,
and operations of gaming facilities and related amenities to assist Pawnee in
the development, financing and construction of the Project Facilities and to
provide consulting services relating to Project Facilities.


                                       -1-

<PAGE>

     D. Pawnee presently lacks the resources to develop and finance the Project
Facilities and desires to retain the services of the Lakes as set forth herein.

     E. For the compensation set forth herein, Lakes wishes to provide the
following services to Pawnee as more fully set forth herein: (1) funding of
Project Preliminary Development Loans; (2) assistance in arranging the Project
Permanent Financings; (3) development and construction management for the
Project Facilities; and (4) consulting services in connection with pre-opening
and post-opening operations of the Project Facilities.

     F. Pawnee desires to grant to Lakes the exclusive right to develop, arrange
for financing of, construct, equip and consult in connection with pre-opening
and post-opening operations of Pawnee's Project Facilities as set forth in this
Agreement, and Lakes desires to undertake those responsibilities in accordance
with this Agreement. Pawnee also desires to grant to Lakes the right to
participate in any other gaming project opportunity Pawnee pursues in the State
of Oklahoma under the same terms and conditions described herein.

     G. Pawnee and Lakes intend that this Agreement shall be operative and
binding upon the date of execution by the parties ("Effective Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Agreement" means this Gaming Development Consulting Agreement, as it may
be amended, supplemented, restated or replaced from time to time.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the particular Project's Gaming Facility; provided, however,
unless the parties otherwise agree, the term "Ancillary Facilities" shall not
include any of Pawnee Tribe's existing enterprises consisting of: fuel and
retail sales made at the existing U.S. Hwy 412 & State Hwy 18 "Travel Plaza"
currently operated by the Pawnee TDC.

     "Architect" any architectural or engineering firm duly licensed to provide
architectural services for the Project Facilities.


                                       -2-

<PAGE>

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Capital Expenditures" means any expenditure that is considered a capital
expenditure under GAAP.

     "Claim" means any dispute, claim, question, or disagreement between Pawnee
and Lakes or any Affiliate of Lakes that is directly or indirectly related to
this Agreement, any Pawnee Note or the Project Facilities, whether arising under
law or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or the maturity of any
Pawnee Note.

     "Class II Gaming" means class II gaming as defined in IGRA.

     "Class III Gaming" means class III gaming as defined in IGRA.

     "Collateral" is defined in Section 3.1(a).

     "Compact" means any Tribal-State Compact executed between the Pawnee Nation
and the State of Oklahoma entered into and approved by the United States
Secretary of the Interior either before or after the Effective Date of this
Agreement, and any amendments or modifications thereto.

     "Contractor" means any Person providing materials or services for the
Project pursuant to a contract.

     "Costs of Operations" means, with respect to any period of time occurring
on or after the Opening Date, the total of all costs required under GAAP to be
treated as operating expenses of a particular Project's Gaming Facility,
including but not limited to the following (so long as they constitute such
expenses):

          (a) all fees imposed upon the particular Project's Gaming Facility by
     the NIGC;

          (b) all amounts required to be paid to the State pursuant to a Compact
     or all amounts required to be paid to any local governmental entity under
     any agreement to mitigate off-reservation impacts related to the particular
     Project's Gaming Facility;

          (c) license or other fees for background investigations performed by
     the Gaming Commission of "key employees" and "primary management officials"
     of the particular Project's Gaming Facility, as defined in 25 C.F.R.
     Section 502.14 and 25 C.F.R. Section 502.19, less any amounts collected
     from employees for those fees, provided, however, such amounts allocable
     hereunder shall not exceed $25 per employee per any 12 month period
     (although the Gaming Commission may charge employees more for such licenses
     or fees); and reasonable and customary regulatory fees imposed on the
     Gaming Facility by the Gaming Commission (which amounts shall be subject to
     an annually approved budget submitted by the Gaming Commission).


                                       -3-

<PAGE>

          (d) depreciation and amortization expenses computed over reasonable
     periods permitted under GAAP and as further set forth below; and

          (e) to the extent properly allocable to the operation of the
     particular Project's Gaming Facility under GAAP, the following:

               (1) costs of administration, recruiting, hiring, firing and
          training employees;

               (2) compensation and benefits of employees;

               (3) interest charges on indebtedness (including the Project
          Permanent Financing) related to the particular Project's Gaming
          Facility; and

               (4) all other expenses, including, without limitation, those
          incurred for materials, supplies, inventory, utilities, repairs and
          maintenance (excluding Capital Expenditures), insurance and bonding,
          marketing, advertising, annual audits, accounting, legal or other
          professional and consulting, surveillance/security or guard services;

provided however, that "Costs of Operations" do not include repayment of
principal or Capital Expenditures or capital leases; and notwithstanding the
foregoing, for purposes of this definition of Costs of Operations, depreciation
for personal property shall be determined on a straight-line basis over a period
of seven (7) years from the date such property is placed in service, and
depreciation for real property, including improvements and buildings shall be
determined on a straight-line basis over a period of thirty (30) years.

     "Design Professional" means any Person other than an Architect engaged in
the business of providing engineering, landscape, interior design or other
design services.

     "Development Committee" is defined in Section 2.2.

     "Effective Date" means the date the parties execute this Agreement.

     "Equipment Contract" means any contract to finance or acquire equipment or
property for use in connection with the Project Facilities, exclusive of
property to be provided pursuant to a Project Construction Contract, whether
constituting or characterized as a loan or credit agreement, purchase agreement,
financing lease, capital lease, participating lease, license or otherwise.

     "Equipment Vendor" means any Person that sells, leases or licenses personal
property to Pawnee for use in connection with the Project Facilities.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project Facilities, including,
without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;


                                       -4-

<PAGE>

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project Facilities.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession.

     "Gaming Commission" means any tribal commission or body of the Pawnee
Nation that is lawfully performing the obligations and exercising the rights of
the tribal gaming regulatory agency established pursuant to the Pawnee Nation's
Gaming Ordinance.

     "Gaming Facility" means, in connection with the particular Project, all
buildings, structures and improvements, together with all furniture, fixtures
and equipment and personal property (whether tangible or intangible) to be used
in connection with the operation of Class II Gaming and/or Class III Gaming.

     "Gaming Facility Site" is defined in Section 2.4.

     "Gaming Operation" means a "gaming operation" as defined in NIGC
regulations, 25 C.F.R. Section 502.10.

     "Gaming Ordinance" means any valid gaming ordinance of the Pawnee Nation
that is in effect for purposes of and to the extent required by IGRA or the
Compact.

     "Governmental Authority" means the United States, the BIA, the State, the
Pawnee Nation and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming or Class III Gaming at the
Gaming Facility, the construction of the Project Facilities, operation of the
Project Facilities, or Pawnee's or Lakes' obligations under this Agreement or
any Pawnee Note.


                                       -5-

<PAGE>

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Lakes" means Lakes Pawnee Consulting, LLC, a Minnesota limited liability
company and a wholly owned subsidiary of Lakes Gaming and Resorts, LLC.

     "Lakes Event of Default" is defined in Section 10.1.

     "Legal Requirements" means the Compact and all present and future federal,
State, Tribe and local laws, ordinances, rules, regulations, permits, licenses
and certificates, and any and all present and future orders of courts and
administrative bodies of competent jurisdiction, applicable to the Project, the
Project Facilities, this Agreement, or any Pawnee Note.

     "Management Contact" means a management contract as defined in IGRA.

     "Material Breach" by any party means (a) a material failure of the party to
perform a material obligation under this Agreement for reasons not excused under
Section 13.5 (Force Majeure); or (b) any material representation or warranty
made by a party to this Agreement proves to be knowingly false or erroneous in
any material way when made or at any time shall fail to be true and correct in
all material respects.

     "NIGC" means the National Indian Gaming Commission, established by IGRA.

     "Opening Date" means the first day on which a Project's Gaming Facility is
open to the public for the conduct of Class II Gaming and/or Class III Gaming
following the first advance under the Project Preliminary Development Loan.

     "Pawnee Event of Default" is defined in Section 10.3.

     "Pawnee Note or Pawnee Notes" are defined in Section 3.1(a).

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the development, construction and equipping and future
expansion of each Gaming Facility and, if mutually agreed by the Parties, the
development, construction and equipping of one or more Ancillary Facilities in
connection with the individual gaming projects, whether such work shall occur
simultaneously or in phases during the term of this Agreement, which the parties
anticipate to be developed under this Agreement, including, but not limited to,
the following: the "Trading Post Project". The scope of each Project and its
Project Facilities shall be mutually agreed to by the parties and made a part
hereof through an addendum to this Agreement.

     "Project Architect" is defined in Section 2.5(a).


                                       -6-

<PAGE>

     "Project Architectural Agreement" is defined in Section 2.5(b).

     "Project Budget" is defined in Section 2.7.

     "Project Construction Contract" is defined in Section 5.1.

     "Project Costs" means (a) all costs of any nature (whether considered an
expense or Capital Expenditure) incurred by or on behalf of Pawnee, or by or on
behalf of Lakes or its Affiliates, in connection with any particular Project in
accordance with this Agreement, including all amounts advanced by Lakes to
Pawnee for the particular Project, including but not limited to all amounts
advanced under the Project Preliminary Development Loan and all amounts
evidenced by the Pawnee Notes; (b) all other amounts mutually agreed upon by
Lakes and Pawnee necessary for the development, construction and equipping of
the particular Project; and (c) with respect to the first Project developed
hereunder, $85,000 as required for initial and first year payments under the
Compact.

     "Project Development Fee" means the Project Development Fee for the
particular Project as calculated pursuant to Section 7.1 herein.

     "Project General Contractor" is defined in Section 5.1.

     "Project Permanent Financing" means one or more debt financings, which may
be in the form of one or more loans, financings, operating leases, issues of
debt securities, or other credit facilities, for which the source of funding is
not Lakes or an Affiliate of Lakes, incurred or issued by or on behalf of Pawnee
to finance or refinance all of the Project Preliminary Development Loan and
Project Costs.

     "Project Permanent Financing Date" means the first day on which Project
Permanent Financing is advanced to or made available for the benefit of Pawnee
for development of a particular Project.

     "Project Preliminary Development Budget" is defined in Section 3.1.

     "Project Preliminary Development Loan" is defined in Section 3.1.

     "Project Facilities" means the Gaming Facility and the Ancillary Facilities
in connection with the particular Project.

     "Proprietary Interest" means proprietary interest in a Gaming Operation
within the meaning of IGRA.

     "Revenues" means, with respect to a particular Project and any period of
time, all revenues of any nature derived directly or indirectly from the
operation of the Project Facilities and permitted under GAAP to be included in
the Project Facilities' total revenues for that period, less any credits or
refunds made to customers, guests, or patrons of the Project Facilities, not
considered a Cost of Operations and not applied in any prior period to reduce
Revenues. "Revenues" shall not include (i) any gratuities or service charges
added to the bill of a customer, guest or patron of the Project Facilities and
payable to employees of the Project Facilities, (ii)


                                       -7-

<PAGE>

promotional allowances for which there is not a direct offsetting item treated
as a Cost of Operations, (iii) any sales, excise, gross receipt, admission,
entertainment, tourist or other taxes or charges (or assessments equivalent
thereto, or payments made in lieu thereof) that are received from a customer,
guest or patron and passed on to governmental or quasi-governmental entities
unrelated to the Pawnee, (iv) any lawful federal, state, or local taxes or
impositions (including any payment or fee in lieu of the foregoing) that are
collected from patrons of or vendors to the Project Facilities, (v) proceeds of
indebtedness of the Pawnee, and (vi) proceeds from insurance or condemnation
(other than proceeds of business interruption insurance and other proceeds
received to reimburse the Project's Project Facilities for any item accounted
for under GAAP as a Cost of Operations).

     "State" means the State of Oklahoma.

     "Term" of this Agreement is defined in Section 11.1.

     "Trading Post Project" means operation of the "Trading Post" in Pawnee
County currently operated by the Pawnee TDC at the intersection of State Highway
412 and County Road 18 to include the offering of Class II and/or Class III
gaming and other amenities to attract gaming customers of the Pawnee Trading
Post to be operated by Pawnee.

     "Tribal Agreement" shall mean the agreement between the Pawnee Nation and
Pawnee TDC and Lakes or its affiliates described in Section 8.2(n).

                                    ARTICLE 2
                             PRE-CONSTRUCTION PHASE

     Section 2.1 Effective Date. This Agreement shall become effective and
binding upon the date of execution by the parties.

     Section 2.2 Creation of Development Committee. Within 15 days after the
Effective Date of this Agreement, the parties shall establish a Development
Committee that will have the powers, obligations and authorities as provided
herein. The Development Committee shall consist of five (5) persons: three
Pawnee representatives and two Lakes representatives. Decisions of the
Development Committee shall be made by majority vote of all members with at
least one Pawnee representative and one Lakes representative present and if not
present, the other Pawnee representatives and the other Lakes representative,
participating and voting via teleconference.

     Section 2.3 Exclusive Right to Develop. Pawnee hereby grants to Lakes the
exclusive right to assist in the financing, development, construction, equipping
and consulting in connection with pre-opening and post-opening operations of any
Class II Gaming and/or Class III Gaming facility and any ancillary facilities
enhancing such gaming facility operated by Pawnee in the State of Oklahoma,
including a hotel, any convention center, food and beverage outlets, retail
outlets, and any other enterprise designed to promote, support, or enhance such
gaming facility.


                                       -8-

<PAGE>

     Section 2.4 Gaming Facility Site Selection. With respect to each particular
Project, the Development Committee shall designate the location of the proposed
site on which the Gaming Facility shall be constructed (the "Gaming Facility
Site"), provided, the site upon which the facility housing Class II and/or Class
III Gaming shall be located on and must constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under IGRA.

     Section 2.5 Project Architect; Plans and Specifications; Design
Professionals. With respect to the pre-construction development of each
particular Project, the parties agree to the following provisions.

     (a)  Selection of Project Architect. As soon as reasonably practical after
          the Effective Date of this Agreement, Lakes shall propose to the
          Development Committee one or more Architects to provide customary
          architectural services with respect to the Particular Project's
          Project Facilities, although Pawnee also shall have the right to
          propose to the Development Committee additional architects for
          consideration.. As soon as reasonably practical, the Development
          Committee shall either approve or reject each proposed Architect. In
          the case of a rejection, the process described in this Section 2.5(a)
          shall be repeated until the Development Committee has approved one or
          more Architects proposed for the particular Project ("Project
          Architect").

     (b)  Project Architectural Agreement; Plans and Specifications. Once an
          Architect has been approved under Section 2.5(a), Lakes shall
          negotiate proposed agreements with each Architect approved, and shall
          propose the same to the Development Committee (each, a "Project
          Architectural Agreement"). As soon as reasonably practical, the
          Development Committee shall either approve or reject each proposed
          Project Architectural Agreement. In the case of a rejection, the
          process described in this Section 2.5(b) shall be repeated until the
          Development Committee has approved the Project Architectural
          Agreements proposed by Lakes. Upon approval, Pawnee shall take
          necessary action to authorize and execute the applicable Project
          Architectural Agreements. After execution of each Project
          Architectural Agreement, Lakes shall coordinate the Architect's
          preparation of mutually agreeable preliminary basic plans, drawings
          and specifications for the Project's Project Facilities. Lakes shall
          also coordinate the Architect's preparation of mutually agreeable
          construction drawings and final design, plans and specifications for
          the Project Facilities, and propose the same for approval by the
          Development Committee. The completed and approved final plans,
          together with any modifications thereof proposed by Lakes and approved
          by the Development Committee, shall constitute the "Project Plans and
          Specifications."

     (c)  Selection of Additional Design Professionals for Project. If the
          Development Committee determines that design services for the
          Project's Project Facilities from Design Professionals are desirable,
          Lakes and Pawnee may propose to the Development Committee one or more
          Design Professionals and the proposed


                                       -9-

<PAGE>

          services of each. As soon as reasonably practical, the Development
          Committee shall either approve or reject the proposed Design
          Professionals. In the case of a rejection, the process described in
          this Section 2.5(c) shall be repeated until the Development Committee
          has approved all Design Professionals proposed by Lakes. After
          approval of each Design Professional by the Development Committee,
          Lakes shall coordinate the services of each Design Professional.

     Section 2.6 Other Project Contractors. Lakes shall propose to the
Development Committee for its approval all third-party professionals, such as
environmental specialists, feasibility analysts, and others providing services
or materials to the Project's Project Facilities as are customary for
undertakings such as the particular Project ("Project Contractors"). Pawnee
shall also have the right to propose Project Contractors to the Development
Committee. Lakes, in consultation with the Development Committee, and subject to
the final approval by the Development Committee, shall negotiate all Project
Contractor contracts. All contracts shall require the Project Contractor to
adhere in regard to recruitment, employment, reduction in force, promotion,
training and related employment actions to a publicly announced policy and
practice of Pawnee Nation preference and/or any publicly announced policy of
Indian preference, both of which must be reasonably promulgated by the Pawnee
Nation. Except as provided in this Agreement, each Project Contractor contract
shall be between the Project Contractor and Pawnee as determined by the
Development Committee. Notwithstanding the foregoing, all legal representation
of Pawnee shall be determined solely by Pawnee.

     Section 2.7 Project Budget. Lakes shall consult with the Architect to
develop and propose to the Development Committee a budget for all Project Costs
relating to the particular Project, along with a scheduled timeframe(s) for
development of the Project. Revisions to the Project budget may be proposed to
the Development Committee from time to time by Lakes until a final budget is
approved by the Development Committee. The Project budget approved by the
Development Committee, together with any modification thereafter proposed by
Lakes and approved by the Development Committee, shall include all Project Costs
and shall be the "Project Budget."

     Section 2.8 Contracts with Project Professionals. All professionals
providing services to a Project shall be independent of Lakes and its
Affiliates, unless otherwise agreed to by the parties in writing, and all
contracts with such professionals will be negotiated by Lakes and Pawnee on an
arms-length basis and in the best interests of Pawnee.

                                    ARTICLE 3
                      PROJECT PRELIMINARY DEVELOPMENT LOANS

     Section 3.1 Project Preliminary Development Loan. Subject to the terms and
conditions in this Article 3, Lakes shall make loans if needed from time to time
to Pawnee with respect to each particular Project for payment of Project
preliminary development costs (collectively the "Project Preliminary Development
Loan") set forth in a Project preliminary development budget proposed by Lakes
and approved by the Development Committee ("Project Preliminary Development
Budget"). Lakes shall have no obligation to advance any funds under the Project
Preliminary Development Loan in excess of the approved Project Preliminary


                                      -10-

<PAGE>

Development Budget. The Project Preliminary Development Loan for a particular
Project shall become part of its Project Costs and shall include all advances
made by Lakes to Pawnee for that Project, including but not limited to those
evidenced by the initial Pawnee Note. A new Pawnee Note shall be executed for
each Project. Any Project Preliminary Development Loan and Lakes' obligation to
advance funds to Pawnee for any particular Project, shall be subject to each of
the following requirements:

     (a)  All advances made pursuant to a Project Preliminary Development Loan
          shall be evidenced by one or more promissory notes prepared by Lakes,
          substantially in the form attached as EXHIBIT A to this Agreement
          ("Pawnee Note"), in each case executed on behalf of Pawnee, and dated
          the date of the applicable loan (collectively with any note executed
          by Pawnee in favor of Lakes in connection with the development of any
          Project, the "Pawnee Notes"), to be secured by certain security
          interests and liens on (i) the proceeds of any Project Permanent
          Financing; (ii) all Revenues from the Project; (iii) the Project's
          Furnishing and Equipment; (iv) any fee lands upon which the Project is
          located (collectively, the "Collateral"). In no event shall Lakes have
          recourse to Revenue distributions already received by Pawnee from the
          Project and made to the Pawnee TDC in accordance with this Agreement
          and/or any applicable dominion account agreement.

     (b)  If the principal amount of the Pawnee Note is exceeded by any pending
          advance on the Project Preliminary Development Loan, prior to such
          advance being made and prior to Lakes having any obligation to fund
          such advance, Pawnee shall execute and deliver to Lakes either (i) an
          amendment to such Pawnee Note, increasing the principal amount of the
          note by an amount at least equal to the pending advance, or (ii) an
          additional Pawnee Note with a principal amount at least equal to the
          principal amount of the pending advance, as determined by Lakes.

     (c)  Amounts advanced from time to time as part of the Project Preliminary
          Development Loan shall bear interest, from the date of advance, at the
          greater of either the prime interest rate of Chase Manhattan Bank
          U.S.A., N.A. (or any successor bank) plus two percent (2%) or the same
          rate as the Project Permanent Financing for each particular Project in
          place at the time of the advance.

     (d)  Unless otherwise agreed by the parties in writing, all principal and
          interest accrued on each Project Preliminary Development Loan shall
          become due and payable in twenty-four (24) equal monthly installments
          beginning on the 25th day following the Opening Date for the Project
          if the loan has not previously been repaid through the Project
          Permanent Financing. Pawnee shall use its best efforts to cause the
          Project Preliminary Development Loan to be paid out of the proceeds of
          the Project Permanent Financing. Notwithstanding the foregoing, the
          Project Preliminary Development Loan shall become due and owing in its
          entirety upon (i) the occurrence of a Pawnee Event of Default under
          Section 10.3, which default is either incapable of cure or has not
          been cured within the time period set forth in Section 10.4, or (ii)
          termination of this Agreement under Section 11.3.


                                      -11-

<PAGE>

     (e)  The Project Preliminary Development Loan may be prepaid without
          penalty by Pawnee at any time, in whole or in part, together with
          accrued and unpaid interest thereon.

     (f)  No amounts shall be loaned under the Project Preliminary Development
          Loan except for costs set forth in the Project Preliminary Development
          Budget, unless Lakes in its sole discretion agrees to advance such
          funds, in which case, such advances shall be Project Costs. Lakes
          shall have no obligation to advance funds for costs unless such costs
          are set forth in the Project Preliminary Development Budget and such
          costs:

          (i)  have been approved in advance by the Development Committee, or

          (ii) constitute payments properly due within the terms and scope of
               Project Contractors contracts.

          Upon any such payment by Lakes, an advance on the Project Preliminary
          Development Loan shall automatically occur.

     (g)  The Project Preliminary Development Loan, together with interest
          thereon, shall be payable from and secured by a pledge of the
          Collateral.

          To that end, Pawnee hereby pledges and grants a security interest in
          all the Collateral to Lakes to secure Pawnee's obligations under this
          Agreement and under the Pawnee Notes, further agrees to enter into
          standard and customary dominion account agreements/security
          agreements/mortgages or deeds of trust necessary to evidence and
          effectuate such liens, and authorizes Lakes to file those financing
          statements and similar documents and agreements as Lakes may believe
          appropriate to perfect such liens.

     (i)  Notwithstanding anything to the contrary in this Article 3, Lakes
          shall not be obligated to fund any advances on each Project
          Preliminary Development Loan after the earliest of:

          (i)  the Project Permanent Financing Date for the applicable Project;

          (ii) the second anniversary of the first advance under the applicable
               Project Preliminary Development Loan;

          (iii) the failure of Pawnee to cure, within the time prescribed in
               this Agreement, any default under this Agreement or any Pawnee
               Note for which Pawnee receives written notice;

          (iv) sixty (60) days after written notice by Lakes that a reasonable
               basis exists for concluding that this Agreement, the development
               of the Project, or the operation of the Project's Gaming Facility
               is not lawful;


                                      -12-

<PAGE>

          (v)  any determination by Lakes that a reasonable basis exists for
               concluding that any material terms of this Agreement or the
               Pawnee Notes are not valid or binding obligations of the Pawnee;

          (vi) any reasonable determination by Lakes (which may be based on the
               advice of legal counsel) that any representations contained in
               Section 8.2 are not true and correct; and

          (vii) the commencement of any litigation which, in the reasonable
               determination of Lakes, has a reasonable likelihood of delaying
               the completion of the Project's Project Facilities for more than
               24 months after the Effective Date of this Agreement.

     Section 3.2 Conditions Precedent to First Advance of Project Preliminary
Development Loan or Perform any Obligations. Notwithstanding Section 3.1, Lakes
is not required to make any advance under each Project Preliminary Development
Loan or perform any obligations under this Agreement until Lakes receives each
of the following in form and substance reasonably satisfactory to Lakes:

     (a)  copy of tribal laws in a form sufficient as determined by Lakes to
          perfect the security interests and liens granted to it under Section
          3.1;

     (b)  copy of one or more resolutions of the governing body of the Pawnee
          Nation authorizing and ratifying the adoption, or the execution,
          delivery and performance by the Pawnee Nation, Pawnee TDC or Pawnee,
          as applicable, of (i) the Compact (if in effect), (ii) the Gaming
          Ordinance, (iii) this Agreement, and (iv) the Pawnee Notes and related
          documents and security instruments;

     (c)  original of any license(s) required by any Government Authority for
          the Lakes services (as described in this Agreement) in connection with
          the development, construction and operation of the Project;

     (d)  an opinion of an attorney for Pawnee in form reasonably satisfactory
          to Lakes to the effect that (i) this Agreement, the Pawnee Notes, and
          any security instruments to be executed by Pawnee in connection with
          this Agreement will be valid, binding and perfected obligations of
          Pawnee, enforceable in accordance with their terms, (ii) the Pawnee
          Nation is an Indian tribe within the meaning of IGRA, (iii) each of
          the actions of Pawnee Nation, Pawnee TDC or Pawnee, as applicable,
          referred to above in this Section have been validly taken by that
          entity and is in full force and effect, (iv) the Pawnee Nation is
          legally permitted to conduct Class II Gaming (and Class III Gaming in
          the event of a Compact) activities in the State under all Legal
          Requirements, (v) the Gaming Facility Site for the Project constitutes
          "Indian lands" upon which the Pawnee Nation may legally conduct gaming
          under IGRA, and (vi) the Pawnee Nation and Pawnee TDC have entered
          into an agreement with Lakes or its Affiliate that all gaming and
          related project facilities will be owned and operated by Pawnee or
          another subsidiary of Pawnee


                                      -13-

<PAGE>

          TDC and granting Lakes or its Affiliate the right to participate in
          any gaming projects owned and operated by Pawnee or another subsidiary
          of Pawnee TDC under the same terms and conditions described in this
          Agreement, and the agreement shall contain representations, warranties
          and covenants substantially similar to those contained in Articles 8
          and 9 hereof insofar as applicable, and with respect to such
          agreement, the same constitutes the valid, binding and enforceable
          obligations of Pawnee Nation and Pawnee TDC, enforceable in accordance
          with their terms.

     (e)  designation by Pawnee of its members to the Development Committee and
          the formation of the Development Committee;

     (f)  a feasibility study has been conducted demonstrating to Lakes'
          satisfaction the economic viability of the particular Project, and
          Pawnee and Lakes have mutually agreed to the scope of the contemplated
          project(s) and entered into an addendum to this Agreement describing
          the contemplated scope of the project(s);

     (g)  a letter from the NIGC determining that the Gaming Facility Site for
          the Project constitutes "Indian lands" upon which the Pawnee Nation
          may legally conduct gaming under IGRA; and

     (h)  unless otherwise agreed or waived in writing, Lakes shall have
          received either (i) a legal interpretation/opinion determination
          letter from the Pawnee Nation's attorneys or highest judicial office
          that any limitations or restrictions contained in the Corporate
          Charter of the Pawnee Tribe of Oklahoma, a federally-chartered
          corporation, does not apply to and has no legal effect on the validity
          of this Agreement or any related documents, or (ii) a certified copy
          of an amendment to the Corporate Charter of the Pawnee Tribe of
          Oklahoma, a federally-chartered corporation, or other evidence
          reasonably satisfactory to Lakes pursuant to which the Corporate
          Charter of the Pawnee Nation Tribe of Oklahoma, federally-chartered
          corporation, shall have been amended to remove any limitations or
          restrictions that would otherwise prevent either the Pawnee Nation or
          Pawnee TDC and its wholly-owned subsidiaries from entering into this
          Agreement or any related documents or that would require the approval
          of this Agreement or any related documents from the Secretary of the
          Interior or any federal agency before the document becomes legally
          valid and enforceable.

                                    ARTICLE 4
                          PROJECT PERMANENT FINANCINGS

     Section 4.1 Project Permanent Financing. Lakes shall use commercially
reasonable efforts to assist Pawnee in obtaining one or more sources of Project
Permanent Financing for any particular Project in amounts and at times as are
required for payment of expected Project Costs (other than those expected to be
funded by an Equipment Contract) as set forth in the Project Budget. The terms
of the Project Permanent Financing shall be subject to the approval of the
Development Committee, which approval shall not be unreasonably withheld.


                                      -14-

<PAGE>

     Section 4.2 Approval of Disbursements. Unless otherwise agreed to by the
Development Committee, no disbursement of proceeds from any Project Permanent
Financing shall be made without the approval of the Development Committee and,
with respect to costs payable pursuant to the Project Construction Contract,
without customary approvals or certifications by the Project Architect and
Project General Contractor.

                                    ARTICLE 5
                    PROJECT CONSTRUCTION AND EQUIPPING PHASES

     Section 5.1 Project General Contractor and Construction Contracts. Lakes
shall propose to the Development Committee for its approval one or more general
or prime contractors to provide customary construction contracting services with
respect to any particular Project's Project Facilities (the "Project General
Contractor"). As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project General Contractor. In the case
of a rejection, the process described in this Section 5.1 shall be repeated
until the Development Committee has approved a Project General Contractor
proposed by Lakes. Once the Project General Contractor has been approved by the
Development Committee, Lakes shall negotiate and propose to the Development
Committee for its approval one or more forms of agreements for execution by
Pawnee to engage the Project General Contractor (the "Project Construction
Contract"). After the Development Committee has approved and Pawnee has entered
into the Project Construction Contract(s), no change orders shall be made
without the written recommendation of Lakes and written approval by the
Development Committee.

     Section 5.2 Project Contractor Costs. All costs incurred by or paid
pursuant to the Project Construction Contract(s) in accordance with Project
Budget shall be Project Costs.

     Section 5.3 Project Equipment Contracts. Lakes shall propose to the
Development Committee for its approval one or more contractors to provide
equipment or personal property for use in connection with operations of the
Project Facilities, exclusive of property to be provided pursuant to a Project
Construction Contract (the "Project Equipment Contractor"). Pawnee shall also
have the right to propose Project Equipment Contractors to the Development
Committee. As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project Equipment Contractor. In the case
of a rejection, the process described in this Section 6.3 shall be repeated
until the Development Committee has approved a Project Equipment Contractor
proposed. Once the Project Equipment Contractor has been approved by the
Development Committee, Lakes shall negotiate and propose to the Development
Committee for its approval one or more forms of agreements for execution by
Pawnee to engage the Project Equipment Contractor (the "Project Equipment
Contract"). After the Development Committee has approved and Pawnee has entered
into the Project Equipment Contract(s), no change orders shall be made without
the written recommendation of Lakes and written approval by the Development
Committee. Lakes will assist in the selection, ordering, expediting, and
installation of furniture, fixtures and equipment required for the Project
Facilities.


                                      -15-

<PAGE>

                                    ARTICLE 6
                   PRE AND POST-OPENING OPERATIONS CONSULTING

     Section 6.1 Project Operations Consulting. In connection with pre-opening
and post-opening operations of any particular Project, Lakes shall assist Pawnee
by providing consulting services to Pawnee related to establishing and
implementing initial gaming and ancillary systems in the following areas: making
recommendations to Pawnee as to: (a) general Gaming Operations, (b) electronic
gaming devices operations, (c) table game operations if permitted, (d) cage,
vault and count room operations, (e) surveillance department operations, (f)
security department operations, (g) marketing and advertising, (h) food and
beverage operations, (i) human resources, (j) facilities and maintenance, (k)
finance and (l) information systems. At all times, Pawnee shall have the sole
proprietary interest in and management responsibility for the conduct of all
Gaming Operations conducted at any Project during the period Lakes is providing
operations consulting services under this Agreement.

     Section 6.2 Cooperative Efforts. Both parties to this Agreement shall
exercise their best efforts to fully cooperate with each other in the
performance of the operations consulting services to be rendered hereunder;
provided, however, that it shall be within the sole discretion of Pawnee to
determine whether or not to act upon or implement the technical assistance,
consultation or advice provided by Lakes.

     Section 6.3 No Management Services Provided. The parties expressly
acknowledge that this Agreement is for consulting services only and that Lakes
shall not engage in any management activities or perform any management services
hereunder with respect to any Project. The parties expressly acknowledge that
the decision to adopt, approve or implement any proposal, suggestion or
recommendation made by Lakes in connection with its operations consulting
services shall rest exclusively with Pawnee.

                                    ARTICLE 7
                                 DEVELOPMENT FEE

     Section 7.1 Project Development Fee. For its services under this Agreement
related to any particular Project, in addition to interest earned on the Project
Preliminary Development Loan, Lakes shall receive a fee equal to (a) three (3%)
percent of Project Costs ("Development Fixed Fee") and (b) ) a flat fee of
$5,000 per month for one hundred twenty (120) months in accordance with the
payment terms described in Section 7.2.("Monthly Consulting Fixed Fee")
(collectively the "Project Development Fee").

     Section 7.2 Terms of Payment. The Development Fixed Fee shall be paid on
the Opening Date for the Project. No Monthly Consulting Fixed Fee shall be
earned or paid prior to the Opening Date of the Project. After the Opening Date
of the Project, the Monthly Consulting Fixed Fee shall be due and paid
commencing on the 25th day of the following calendar month, and become due and
payable on the 25th day of each successive month.


                                      -16-

<PAGE>

     Section 7.3 Project Development Fee Security. To secure payment of the
Project Development Fee, Pawnee hereby pledges and grants a security interest in
all Collateral to Lakes to secure Pawnee's obligations under this Agreement in
connection with payment of the Project Development Fee, further agrees to enter
into standard and customary dominion account agreements/security
agreements/mortgages or deeds of trust necessary to evidence and effectuate such
liens, and authorizes Lakes to file those financing statements and similar
documents and agreements as Lakes may believes appropriate to perfect such
liens.

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

     Section 8.1 Representations and Warranties of Lakes. Lakes represents and
warrants to Pawnee that:

     (a)  Organization. Lakes is a limited liability company duly formed and
          validly existing under the laws of the State of Minnesota.

     (b)  Authority. Lakes has the full legal right and authority to enter into
          this Agreement, to perform its obligations under this Agreement, and
          to consummate all other transactions contemplated by this Agreement.

     (c)  Binding Obligation. This Agreement has been duly executed and
          delivered by Lakes and constitutes a legal, valid and binding
          obligation of Lakes, enforceable against Lakes in accordance with its
          terms, except as enforceability may be limited by future bankruptcy,
          insolvency or similar proceedings, limitations on rights of creditors
          generally and principles of equity, and assuming such agreements are
          binding against the other parties thereto.

     (d)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Lakes,
          threatened against Lakes, its Affiliates, or any of its assets or
          properties that could have a material adverse effect on its ability to
          enter into or perform this Agreement.

     (e)  No Violation or Conflict. The execution, delivery and performance by
          Lakes of this Agreement does not violate any Legal Requirement
          applicable to Lakes, other than a violation that shall not materially
          adversely affect any particular Project or Pawnee's obligations or
          rights under this Agreement. The execution, delivery and performance
          of this Agreement does not conflict with or result in any breach of
          any provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon any asset of Lakes under, or
          result in the acceleration of any obligation under the terms of any
          agreement or document binding upon Lakes, other than a conflict,
          breach, default or imposition that shall not materially


                                      -17-

<PAGE>

          adversely affect any particular Project or Pawnee's obligations or
          rights under this Agreement.

     (f)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Lakes is required
          for Lakes to execute, deliver and perform its obligations hereunder;
          provided that Lakes makes no representation or warranty with respect
          to any consent that may be required by the Gaming Commission, Pawnee
          Nation, Pawnee TDC or Pawnee,, NIGC or BIA.

     (g)  Full Disclosure. No representation or warranty of Lakes in this
          Agreement and no report or statement delivered to Pawnee by or on
          behalf of Lakes, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading.

     (h)  Financial Capacity. Lakes has the financial capacity to finance any
          and all amounts necessary in order to comply with Lakes' commitment to
          provide the Project Preliminary Development Loan under Article 3
          hereof, and the provision of such financing will not result in Lakes
          becoming insolvent or otherwise being unable to pay its debts as they
          become due.

     (i)  Brokers' Fees and Other Fees and Expenses. Except for the letter
          agreement dated August 20, 2004 with Kevin Kean and the definitive
          consulting agreement to be negotiated and executed as contemplated
          thereunder, neither Lakes nor any of its Affiliates has as of the
          Effective Date of this Agreement engaged, nor has any liability or
          obligation to pay any fees, commissions or expenses with respect to,
          any broker, finder or agent, investment banker, or any similar advisor
          or services provider, with respect to or in connection with the
          transactions contemplated by this Agreement for which Lakes or its
          Affiliates could become liable or obligated, and neither Pawnee nor
          any of its Affiliates has any liability or obligation to pay any of
          such amounts.

     Section 8.2 Representations and Warranties by Pawnee. Pawnee represents and
warrants to Lakes that:

     (a)  Organization. Pawnee is a wholly-owned subsidiary of the Pawnee TDC,
          which is a governmental subdivision of the Pawnee Nation, an Indian
          tribe eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Pawnee has taken all action required by tribal
          law without the necessity of further action to authorize the
          execution, delivery and performance of this Agreement, all Pawnee
          Notes and related security documents and instruments described herein.
          Pawnee has all requisite power and authority to enter into this
          Agreement, all Pawnee Notes, and related security documents and
          instruments described herein to perform its obligations under this
          Agreement, all


                                      -18-

<PAGE>

          Pawnee Notes, and related security documents and instruments described
          herein, and to consummate all other transactions contemplated by this
          Agreement, the Pawnee Notes and related security documents and
          instruments described herein.

     (c)  Binding Obligations. Each of this Agreement (including but not limited
          to, the waiver of sovereign immunity in Article 12), the Pawnee Notes
          and related security documents and instruments described herein has
          been duly executed and delivered by Pawnee and is a legal, valid,
          binding and perfected obligation of Pawnee, enforceable against Pawnee
          in accordance with its terms, except as enforceability may be limited
          by future bankruptcy, insolvency or similar proceedings, limitations
          on rights of creditors generally and principles of equity, and
          assuming the foregoing agreements are binding against the other
          parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for any particular
          Project constitutes "Indian lands" upon which the Pawnee Nation may
          legally conduct gaming under IGRA.

     (e)  Gaming Permitted. Pawnee Nation is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Pawnee Nation and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Pawnee Nation. Pawnee will then have the right to
          engage in Class III Gaming at the Gaming Facilities to be operated by
          the Pawnee in connection with this Agreement to the extent set forth
          in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes to enter into this
          Agreement and perform its obligations under this Agreement have been
          granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Pawnee, Pawnee TDC or the Pawnee Nation or affecting either
          the Gaming Facility Site(s) or any Project, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect any Project or Lake's
          obligations or rights under this Agreement, any Pawnee Note and
          related security documents and instruments described herein.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          Pawnee of this Agreement, any Pawnee Note and related security
          documents and instruments described herein does not violate any Legal
          Requirements. The execution, delivery and performance of this
          Agreement, any Pawnee Note and related security documents and
          instruments described herein by Pawnee does not conflict with or
          result in any breach of any provision of, or constitute a default
          under, or


                                      -19-

<PAGE>

          result in the imposition of any lien or charge upon any asset of
          Pawnee under, or result in the acceleration of any obligation under
          the terms of any agreement or document binding upon Pawnee, other than
          a conflict, breach, default or imposition as shall not materially
          adversely affect any particular Project or Lake's obligations or
          rights under this Agreement, any Pawnee Note and related security
          documents and instruments described herein.

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Pawnee,
          threatened, against any Pawnee, Pawnee TDC or Pawnee Nation, or any of
          the assets or properties of Pawnee, that could have a material adverse
          effect on any particular Project, its Project Facilities, Pawnee's
          ability to enter into or perform this Agreement or Lakes' obligations
          or rights under this Agreement, any Pawnee Note and related security
          documents and instruments described herein.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Pawnee is required
          to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of Pawnee in this
          Agreement and no report or statement delivered to Lakes by or on
          behalf of Pawnee, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading. Pawnee has fully disclosed the existence and
          terms of all material agreements and Legal Requirements, written or
          oral, relating to any particular Project.

     (m)  No Tribal Tax. Neither the Project, the Project Facilities nor the
          transaction(s) between the parties contemplated by this Agreement, the
          Pawnee Notes, and any related security documents and instruments
          described herein are now, or at any time during the term of this
          Agreement will be, subject to any tribal tax of any sort other (i)
          reasonable pass-through taxes on Project patron which are consistent
          with gaming resort industry practices, and (ii) than license or other
          fees for background investigations performed by the Gaming Commission
          of "key employees" and "primary management officials" of the
          particular Project's Gaming Facility, as defined in 25 C.F.R. Section
          502.14 and 25 C.F.R. Section 502.19, and reasonable and customary
          regulatory fees imposed on the Gaming Facility by the Gaming
          Commission (which amounts shall be subject to an annually approved
          budget submitted by the Gaming Commission).

     (n)  Tribal Agreement. The Pawnee Nation and Pawnee TDC have entered into
          an agreement with Lakes or its Affiliate which (i) confirms that all
          gaming and related project facilities of Pawnee Nation or Pawnee TDC
          will be owned and operated by either Pawnee or another subsidiary of
          Pawnee TDC, (ii) grants Lakes or its Affiliate the right to
          participate in any gaming projects owned and operated by Pawnee or
          another subsidiary of Pawnee TDC under the same terms


                                      -20-

<PAGE>

          and conditions described in this Agreement, and (iii) contains
          representations, warranties and covenants substantially similar to
          those contained in Articles 8 and 9 hereof, insofar as applicable; and
          with respect to such agreement, the same constitutes valid, binding
          and enforceable obligations of Pawnee Nation and Pawnee TDC,
          enforceable in accordance with their terms.

                                    ARTICLE 9
                                    COVENANTS

     Section 9.1 Covenants of Lakes. Lakes covenants and agrees as follows:

          (a)  Additional Documents. Lakes shall execute any additional
               instruments as may be reasonably required by Pawnee to carry out
               the intent of this Agreement or to perfect or give further
               assurances of any of the rights granted or provided for under
               this Agreement.

     Section 9.2 Covenants of Pawnee. Pawnee covenants and agrees as follows:

          (a)  Additional Documents. Pawnee shall execute any additional
               instruments as may be reasonably required by Lakes to carry out
               the intent of this Agreement or to perfect or give further
               assurance of any of the rights granted or provided for under this
               Agreement or any Tribal Note, including execution of the related
               security documents and instruments described herein.

          (b)  Non-Impairment. None of Pawnee, Pawnee TDC or Pawnee Nation shall
               enact any law, ordinance, rule or regulation impairing the rights
               or obligations of Pawnee or Lakes under this Agreement or under
               any related contracts entered into by Pawnee or impairing the
               rights and obligations of Lakes in furtherance of the design,
               development, construction, equipping or financing of any
               particular Project's Project Facilities, including but not
               limited to this Agreement and any contract or agreement entered
               into or contemplated by this Agreement.

          (c)  Records. Pawnee shall maintain or cause to be maintained full and
               accurate accounts and records for any particular Project and its
               Project Facilities according to GAAP.

          (d)  No Liens. Prior to the Opening Date, unless Lakes otherwise
               consents, Pawnee shall not cause or voluntarily permit any lien
               or encumbrance to be created on the Project Facilities for any
               particular Project, the Project's Gaming Facility Site or any
               proceeds of the Project Preliminary Development Loan or the
               Project Permanent Financing.


                                      -21-

<PAGE>

          (e)  No Tax. Neither Pawnee, Pawnee TDC nor Pawnee Nation shall not
               impose any tax, fee or assessment on Lakes, any Contractor, any
               Project and its Project Facilities, this Agreement, the Pawnee
               Notes, and any related security documents and instruments
               described herein other than (i) reasonable pass-through taxes on
               Project patron which are consistent with gaming resort industry
               practices, and (ii) license or other fees for background
               investigations performed by the Gaming Commission of "key
               employees" and "primary management officials" of the particular
               Project's Gaming Facility, as defined in 25 C.F.R. Section 502.14
               and 25 C.F.R. Section 502.19, and reasonable and customary
               regulatory fees imposed on the Gaming Facility by the Gaming
               Commission (which amounts shall be subject to an annually
               approved budget submitted by the Gaming Commission).

     Section 9.3 Mutual Covenant Not-to-Compete. Lakes agrees that, during the
term of this Agreement, neither it nor its Affiliates will finance, manage, or
consult in connection with any facility where Gaming Operations are or will be
conducted within a radius of twenty-five (25) miles from the Gaming Facility
Site without the prior written consent of Pawnee. Pawnee agrees that, during the
term of this Agreement, neither it nor its Affiliates will solicit or enter into
any negotiations or agreements with any person or company with respect to any
Gaming Operations to be conducted within twenty-five (25) miles of the Gaming
Facility Site, nor conduct any Gaming Operations within twenty-five (25) miles
of the Gaming Facility Site, without the prior written consent of Lakes.

                                   ARTICLE 10
                                EVENTS OF DEFAULT

     Section 10.1 Events of Default by Lakes. Each of the following occurring
prior the date on which the particular Project has been substantially completed
shall constitute a "Lakes Event of Default":

     (a)  A Material Breach by Lakes.

     (b)  Lakes violates any of the covenants in Section 9.1 of this Agreement,
          and sixty (60) days have passed following a request by Pawnee to Lakes
          to cure the violation, during which the violation has not been cured.

     (c)  Subject to Section 10.3, any license, permit or approval required to
          be received or maintained by Lakes to perform its obligations under
          this Agreement is denied, suspended, or revoked by proper and
          reasonable action of any state or federal Governmental Authority, and
          all rights to appeal or review the action have been exhausted.


                                      -22-

<PAGE>

     (d)  Lakes or any Affiliate of Lakes material to the uncompleted portion of
          the particular Project has: (i) filed for relief under the United
          States Bankruptcy Code or has suffered the filing of an involuntary
          petition under the Bankruptcy Code that is not dismissed within sixty
          (60) days after filing; (ii) a receiver appointed to take possession
          of all or substantially all of the property of Lakes or any Affiliate
          of Lakes material to the particular Project; or (iii) suffered an
          assignment for the benefit of creditors.

     Section 10.2 Cure of Lakes Default. Upon the occurrence of a Lakes Event of
Default, Pawnee may provide written notice to Lakes of Pawnee's intention to
terminate this Agreement and, if it is possible for Lakes to cure the Lakes
Event of Default, Lakes shall have thirty (30) days following receipt of the
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Lakes shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
The discontinuance or correction of a Lakes Event of Default shall constitute a
cure thereof. If Lakes fails to cure the Lakes Event of Default within any
applicable cure period as extended, Pawnee may: (a) suspend all performance of
Pawnee under this Agreement; (b) terminate this Agreement under Section 11.4; or
(c) pursue any other remedy available at law or in equity, subject to the
provisions of Section 12.1.

     Section 10.3 Events of Default by Pawnee. Each of the following shall
constitute a "Pawnee Event of Default":

     (a)  A Material Breach by Pawnee exists; or (ii) an "Event of Default" by
          Pawnee exists under the Pawnee Note, security agreement, dominion
          account agreement, mortgage or other document or instrument in favor
          of Lakes or its Affiliates and related thereto or this Agreement; or
          (iii) Pawnee Nation or Pawnee TDC shall be in default of any agreement
          now or hereafter executed by either of such entities in favor of Lakes
          or its Affiliates.

     (b)  The Gaming Commission or any other applicable governmental authority
          of the Pawnee Nation, in bad faith, without due process or
          unreasonably, denies, revokes, fails to renew or otherwise impairs any
          license, permit or approval required for Lakes or any Affiliate of
          Lakes to perform its obligations or enjoy its rights under this
          Agreement.

     (c)  Pawnee violates any of the covenants in Section 9.2 of this Agreement,
          and after sixty (60) days have passed following a request by Lakes to
          Pawnee to cure the violation, during which the violation has not been
          cured.

     (d)  Pawnee or any Affiliate of Pawnee material to the particular Project
          has: (i) filed for relief under the United States Bankruptcy Code or
          has suffered the filing of an involuntary petition under the
          Bankruptcy Code that is not dismissed within sixty (60) days after
          filing; (ii) a receiver appointed to take possession of all or


                                      -23-

<PAGE>

          substantially all of Pawnee's property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Compact (if in effect) is determined by any court of competent
          jurisdiction to be invalid and such determination becomes final and
          non-appealable.

     (f)  The Pawnee Nation is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     (g)  Any order or judgment of any court of competent jurisdiction enjoins
          the development of the particular Project in any material manner, and
          the injunction continues for thirty (30) days.

     Section 10.4 Cure of Pawnee Event Default. Upon the occurrence of a Pawnee
Event of Default, Lakes may provide written notice to Pawnee of such default
and, if it is possible for Pawnee, Pawnee TDC or Pawnee Nation to cure the
Pawnee Event of Default, Pawnee shall have thirty (30) days following receipt of
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Pawnee, Pawnee TDC or Pawnee
Nation shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days. Upon the occurrence of any of the events
described in Section 10.3 and during any applicable cure period, Lakes may
suspend its performance under this Agreement. The discontinuance or correction
of a Pawnee Event of Default shall constitute a cure thereof. If Pawnee, Pawnee
TDC or Pawnee Nation fails to cure the Pawnee Event of Default within any
applicable cure period as extended, Lakes may take any one or more of the
following actions: (a) suspend all performance of Lakes under this Agreement;
(b) declare all principal and interest accrued on all Pawnee Notes and any
Project Development Fees to be immediately due and owing, (c) terminate this
Agreement under Section 11.4; or (d) pursue any other remedy available by
agreement, at law or in equity, subject to the provisions of Section 12.1.

                                   ARTICLE 11
                                TERM OF AGREEMENT

     Section 11.1 Term. This Agreement shall become effective and binding upon
the parties on the Effective Date, and shall continue in effect for twelve (12)
years from the Effective Date or until the Project Development Fee(s) and the
Project Preliminary Development Loan(s) applicable hereunder have been fully
paid, whichever date is later, subject to earlier termination as provided in
Article 10 or this Article; provided that (a) all rights of any party to assert
a Claim against the other shall survive the termination of this Agreement, and
(b) all provisions of Article 12 and Article 13 shall survive a termination.


                                      -24-

<PAGE>

     Section 11.2 Mutual Termination. This Agreement may be terminated at any
time by the mutual written consent of Lakes and Pawnee.

     Section 11.3 Termination by Lakes. This Agreement may be terminated upon
notice by Lakes to Pawnee if an uncured Pawnee Event of Default exists under
Section 10.2 and all applicable grace and cure periods have expired.

     Section 11.4 Termination by Pawnee. This Agreement may be terminated upon
notice by Pawnee to Lakes if an uncured Lakes Event of Default exists under
Section 10.1 and all applicable grace and cure periods have expired.

     Section 11.5 Buy-out Option. Following sixty (60) months of continuous
operation of the Project's gaming operations following the Opening Date, Pawnee
shall have the option to buy out the Lakes' remaining rights under this
Agreement for an amount equal to the present value, using a discount rate which
is the greater of either two percent (2%) above the prime interest rate of Chase
Manhattan Bank U.S.A., N.A. (or any successor bank) or the same rate as the
Project Permanent Financing for each Project in place at the time the buy-out
option is exercised of the Remaining Project Development Fees (as hereinafter
defined). The term "Remaining Project Development Fees" shall mean the total
Monthly Consultig Fixed Fees which would have been payable to Lakes for the
Project under Section 7.1(b) hereof for the balance of the term of this
Agreement.

                                   ARTICLE 12
          DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL
                        COURT JURISDICTION; GOVERNING LAW

     Section 12.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.


                                      -25-

<PAGE>

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality. Pawnee further agrees that any arbitration proceeding
          held in connection with any Claim may be consolidated with any other
          arbitration proceeding involving Lakes or its Affiliates and any of
          Pawnee's Affiliates.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 12 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  Pawnee hereby expressly waives, and also waives its right to assert,
          sovereign immunity and any and all defenses based thereon with respect
          to any Claims; and Pawnee hereby consents to (i) binding arbitration
          under the Commercial Arbitration Rules of the American Arbitration
          Association, (ii) empowering the arbitrators to take the actions and
          enforce the judicial remedies described in paragraph 5 of the Pawnee
          Resolution of Limited Waiver of Sovereign Immunity dated January 12,
          2005 issued in connection with the execution of this


                                      -26-

<PAGE>

          Agreement, and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, Pawnee
          expressly waive the application of the doctrines of exhaustion of
          tribal remedies or comity that might otherwise require that Claims be
          heard first in tribal court or other tribal forum of Pawnee Nation.
          The waivers set forth herein only extend to claims or proceedings
          brought by Lakes and any award of damages against Pawnee shall be
          payable solely out of the Collateral.

     Section 12.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                   ARTICLE 13
                                  MISCELLANEOUS

     Section 13.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes may assign this Agreement
to a wholly owned subsidiary without Pawnee's consent; provided further that
Lakes shall remain obligated for the performance of the Lakes subsidiary
hereunder. Other than as expressly provided in this Section 13.1, any attempted
assignment or subcontracting without prior written consent shall be void.
Subject to the preceding requirements, this Agreement is binding upon and inures
to the benefit of the parties and their respective successors and assigns.

     Section 13.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:


                                      -27-

<PAGE>

     If to Pawnee:     Pawnee Chilocco Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058

     With a Copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103
                       (copy to counsel does not constitute notice to a party)

     If to Lakes:      Lakes Pawnee Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN 55305
                       Attn: Timothy J. Cope

     With a Copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140
                       (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 13.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 13.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 13.5 Force Majeure. No party shall be in default in the performance
due under this Agreement if that failure of performance is due to causes beyond
its reasonable control, including but not limited to acts of God, war,
terrorism, fires, floods, or accidents causing material damage to or destruction
of the Project Facilities.


                                      -28-

<PAGE>

     Section 13.6 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 13.7 Entire Agreement. This Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all
provisions of any prior agreements between the parties relating to the
development, financing, construction and equipping of any particular Project and
its Project Facilities, and any other matter addressed in this Agreement; but
shall specifically exclude any agreement related to the management of any
particular Project and its Project Facilities.

     Section 13.8 Indemnification by Lakes. Lakes shall indemnify Pawnee and
it's agents, enrolled members, officers, employees, consultants, and attorneys
(each a "Pawnee Indemnitee") from and against any and all damages, claims,
losses or expenses of whatever kind or nature, including attorneys' fees and
expenses incurred in defending those claims, losses or expenses, to the extent
they result from the gross negligence or willful misconduct of Lakes with
respect to (a) a particular Project or (b) non-performance of any of Lake's
obligations under this Agreement. Lakes shall have the sole right to control the
defense and settlement of any matter in which indemnification is required of
Lakes, and shall pay its attorneys' fees, provided that, with respect to those
matters, Lakes shall not be responsible for the attorneys' fees of attorneys
hired by the Pawnee Indemnitee.

     Section 13.9 Indemnification by Pawnee. Pawnee shall immediately indemnify
Lakes and its Affiliates, agents, officers, employees, consultants, and
attorneys ( each a "Lakes Indemnitee") from and against any and all damages,
claims, losses or expenses of whatever kind or nature, including attorneys' fees
and expenses as and when incurred in defending those claims, losses or expenses,
to the extent they result from (a) the gross negligence or willful misconduct of
Pawnee or the Development Committee with respect to (i) a particular Project or
(ii) the performance or non-performance of Pawnee's or Development Committee's
obligations under this Agreement, or (b) the performance by Lakes of any of its
obligations under this Agreement but excluding any claims, loss or expense
arising from the gross negligence or willful misconduct of Lakes. Pawnee and
Lakes shall consult and agree on the defense and settlement of any matter in
which indemnification is required of Pawnee, Lakes shall have the right to
retain its separate counsel to advise it thereon (but such counsel shall be at
Lakes' own expense), and upon the occurrence of any such claim, the parties
shall enter into a mutually acceptable agreement providing for the procedures by
which any such claims shall be prosecuted and related costs and expenses shall
be reimbursed. Lakes shall be listed as an additional insured on all insurance
policies with respect to any Project. Pawnee further agrees to indemnify and
hold each Lakes Indemnittee harmless from any and all liabilities, claims,
losses and expenses arising from any prior agreements entered into by Pawnee,
Pawnee TDC or Pawnee Nation with any Persons or entities in connection with
development, construction and/or operation of the Project Facilities of any
particular Project.

     Section 13.10 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.


                                      -29-

<PAGE>

     Section 13.11 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 13.12 Cooperation; Approvals. Each of the parties agrees to
cooperate in good faith with the other to timely implement the purposes of this
Agreement. Any consents or approvals required to be given in connection with
this Agreement shall not be unreasonably withheld or delayed by the parties or
their Affiliates.

     Section 13.14 No Management Contract or Grant of Proprietary Interest. The
parties agree that it is their intent that neither this Agreement nor any of the
Tribal Notes or and related security documents and instruments described herein
(individually or collectively) constitute a "Management Contract" within the
meaning of IGRA. Upon the Effective Date, the parties shall submit this
Agreement to the NIGC for review and determination that it is not a Management
Contract and therefore does not require the approval of the NIGC in order to be
valid, regardless of whether it constitutes a "collateral agreement" as that
term is defined in IGRA. Each party shall use its best efforts to pursue such
determination and timely execute, deliver, and if necessary, record any and all
additional instruments, certifications, and other documents as may be required
by the NIGC in order to issue such determination; provided that such required
instrument or other document shall not materially change the respective rights,
remedies or obligations of the parties under this Agreement. If the NIGC finds
that this Agreement does constitute a Management Contract within the meaning of
IGRA, then the parties shall immediately take all necessary steps to amend or
modify the Agreement in a way that preserves the economic benefits of the
transactions to both parties without constituting a Management Contract.

     Section 13.15 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                      -30-

<PAGE>

     The parties have executed this Gaming Development Consulting Agreement as
of the date stated in the introductory clause.

                                        PAWNEE TRADING POST GAMING CORPORATION


                                        By /s/ Monty Matlock
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Leslie Hand
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------

 [Signature Page to Pawnee Trading Post Gaming Development Consulting Agreement]


                                       31

<PAGE>

                                    EXHIBIT A
                               FORM OF PAWNEE NOTE


                                       32
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.88
<SEQUENCE>23
<FILENAME>c92713exv10w88.txt
<DESCRIPTION>PAWNEE NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.88

                                   PAWNEE NOTE

                                                                  Minnetonka, MN
                                                                January 12, 2005

     FOR VALUE RECEIVED, PAWNEE TRADING POST GAMING CORPORATION ("MAKER"), A
WHOLLY-OWNED SUBSIDIARY OF THE PAWNEE TRIBAL DEVELOPMENT CORPORATION, EACH
CREATED UNDER THE CONSTITUTION OF AND A GOVERNMENTAL SUBDIVISION OF THE PAWNEE
NATION OF OKLAHOMA, A FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the
order of LAKES PAWNEE CONSULTING, LLC, A MINNESOTA LIMITED LIABILITY COMPANY
("LENDER"), in the United States of America, in immediately available funds, at
such place as the holder hereof may from time to time designate, or in the
absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the aggregate unpaid principal amount of all
advances made to Maker pursuant to the "Project Preliminary Development Loan" as
set forth in Article 3 of the Gaming Development Consulting Agreement dated
January 12, 2005 between the parties (the "Gaming Development Consulting
Agreement"), plus interest thereon from the date of such advances, in like
money, in accordance with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Gaming Development Consulting Agreement.

     2. Advances. Pursuant to the Gaming Development Consulting Agreement,
Lender has agreed to extend the Project Preliminary Development Loan to Maker,
such funds to be loaned in more than one advances (each, an "Advance") as
entered on the Schedule of Advances attached hereto as Schedule A. Each Advance
shall bear interest at the Interest Rate, as described herein, from and
including the date the proceeds of such Advance are advanced (such date the
"Funding Date" of such Advance) through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be limited to the Collateral as described in the
Gaming Development Consulting Agreement. Commencing on the twenty-fifth (25th)
day after the Opening Date for the Project, in the event the Project Preliminary
Development Loan has not previously been repaid through the Project Permanent
Financing, principal and interest on this Note shall be paid in twenty-four
equal monthly installments. Maker shall have the right to prepay all or any part
of this Pawnee Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity.

     4. Interest Rate. The Interest Rate means, as to each Advance, an interest
rate equal to the greater of the prime rate of Chase Manhattan Bank, N.A. (or
any successor Bank) plus two percent (2%), per annum or the same rate as the
Project Permanent Financing in place at the time of the advance, fixed as of the
first business day of each calendar month. Interest at the foregoing rate


                                      -1-

<PAGE>

shall accrue and be compounded annually and shall be payable solely from the
Collateral as provided in Gaming Development Consulting Agreement. Interest
shall be computed for the actual number of days elapsed on the basis of a year
consisting of 360 days. It is intended that the rate of interest hereon shall
never exceed the maximum rate, if any, which may be legally charged on the
Project Preliminary Development Loan evidenced by Pawnee Note ("Maximum Rate"),
and if the provisions for interest contained in this Pawnee Note would result in
a rate higher than the Maximum Rate, interest shall nevertheless be limited to
the Maximum Rate and any amounts which may be paid toward interest in excess of
the Maximum Rate shall be applied to the reduction of principal, or, at the
lawfully exercised option of the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books and on Schedule A attached hereto all Advances made to the Maker and all
payments of principal amounts in respect of such Advances, which shall be
presumptive evidence as to the outstanding principal amount of all Advances;
provided, however, that the failure to make such notation with respect to any
Advance or payments shall not limit or otherwise affect the obligations of
Maker.

     6. Default; Acceleration. If any Event of Default occurs in the payment of
any principal, interest or any other sums when due hereunder, or in the
performance of any covenant or agreement hereunder, and such default continues
beyond any applicable notice, grace and/or cure period, then the outstanding
principal amount of the Project Preliminary Development Loan, any interest
accrued thereon from time to time, and any other sums then remaining unpaid
hereunder, at the option of the holder hereof and without notice, shall become
immediately due and payable and Lender may exercise any other rights or remedies
available under the Gaming Development Consulting Agreement or applicable law.
Failure to exercise any such option shall not constitute a waiver of the right
to exercise the same at a later time or in the event of any subsequent default.
The following shall constitute "Events of Default" for purposes of this Pawnee
Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts due hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and


                                      -2-

<PAGE>

          such action or proceeding shall not have been dismissed within sixty
          (60) days; or

     (d)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing; or

     (e)  Any representation or warranty given to the Lender by Maker (or any of
          its representatives) in connection with entering into the Gaming
          Development Consulting Agreement and/or any borrowing thereunder, or
          given by an Affiliate of Maker in connection with any agreement
          executed by an Affiliate of Maker in favor of Lender or any Affiliate
          of Lender, or required to be furnished under the terms thereof, shall
          prove untrue or misleading in any material respect (as determined by
          Lender in the exercise of its reasonable judgment) as of the time when
          given or shall fail to be true and correct in all material respects at
          any time during the term of the agreement; or

     (f)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Gaming Development Consulting Agreement or
          under any other agreement entered into with or in favor of Lender or
          any Affiliate of Lender, or default by Maker's Affiliate under any
          agreement executed by an Affiliate of Maker in favor of Lender or any
          Affiliate of Lender, which default is not cured by Maker or its
          Affiliate as applicable within the applicable cure period after
          written notice of default is delivered to Maker or its Affiliate; or

     (g)  The Gaming Development Consulting Agreement shall be terminated by
          either the Maker or the Lender.

     7. Security. This Pawnee Note is secured by a security interest in the
Collateral granted by Maker to Lender pursuant to the Gaming Development
Consulting Agreement, including standard and customary dominion account
agreements/security agreements/mortgages or deed of trust necessary to evidence
and perfect Lender's liens on such Collateral.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Pawnee Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Pawnee Note and any other related documents, shall be cumulative and concurrent
and may be pursued singularly,


                                      -3-

<PAGE>

successively or together, at the sole discretion of the Lender, and may be
exercised as often as occasion therefor shall occur; and the failure to exercise
any such right or remedy shall in no event be construed as a waiver or release
thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS PAWNEE NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Pawnee Note.

     12. Applicable Law. This Pawnee Note shall be construed in accordance with
and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Pawnee Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Pawnee Note is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Pawnee Note to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that such portion, provision or
provisions shall be given force to the fullest possible extent that it or they
are legal, valid and enforceable, that the remainder of this Pawnee Note shall
be construed as if such illegal, invalid, unlawful, void or unenforceable
portion, provision or provisions were not contained herein, and that the rights,
obligations and interest of Maker and holder hereof under the remainder of this
Pawnee Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Pawnee Note shall be valid unless the same is in writing and signed by the
party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Pawnee Note and of every part hereof, and the time and schedule requirements set
forth herein are material terms of this Pawnee Note.


                                      -4-

<PAGE>

     16. Successors and Assigns. This Pawnee Note shall inure to the benefit of
and shall be binding on the parties hereto and their respective successors and
assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Pawnee Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 13.2 of the Gaming Development Consulting Agreement.

     18. Dispute Resolution Limited Waiver of Sovereign Immunity. Maker and
Lender agree that any dispute in connection with this Pawnee Note shall be
subject to the dispute resolution procedures and limited waiver of sovereign
immunity contained in Article 12 of the Gaming Development Consulting Agreement,
the terms of which are incorporated by reference herein.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                      -5-

<PAGE>

     IN WITNESS WHEREOF, Maker has caused this Pawnee Note to be executed and
delivered as of the date first above written.

                                        MAKER:

                                        PAWNEE TRADING POST GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

<PAGE>

         [Signature Page to Pawnee Note (Trading Post) in favor of Lakes
                             Pawnee Consulting, LLC]
                                   Schedule A
                             (Schedule of Advances)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.89
<SEQUENCE>24
<FILENAME>c92713exv10w89.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.89

                           DOMINION ACCOUNT AGREEMENT
                        (Lakes Consulting - Trading Post)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 12, 2005 (the "Effective Date"), between Pawnee Trading Post Gaming
Corporation ("Pawnee" and sometimes hereinafter referred to as the "Borrower"),
a wholly-owned subsidiary of the Pawnee Tribal Development Corporation ("Pawnee
TDC"), each created under the Constitution of and a governmental subdivision of
the Pawnee Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian
tribe, located in the State of Oklahoma, whose business office is located at 871
Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes Pawnee
Consulting, LLC, a Minnesota limited liability company (hereinafter referred to
as "Lakes"), whose business office is located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305, and when it has executed a counterpart signature page hereto,
the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is created under the Constitution of and a
governmental subdivision of the Pawnee Nation, a federally recognized Indian
tribe eligible for the special programs and services provided by the United
States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     WHEREAS, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation; and Pawnee TDC has established Pawnee as a legal entity which will own
and operate specified gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     WHEREAS, Lakes has entered into a Gaming Development Consulting Agreement
with Borrower dated January 12, 2005 (as heretofore and hereafter amended, the
"Consulting Contract"), pursuant to which Lakes is to provide certain
development financing and consulting services to Borrower.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of gross Revenues derived by
the Borrower with respect to each Project (as set forth in the Consulting
Contract), and to grant Lakes a first priority and perfected security interest
in such revenues subject only to Permitted Liens, each for the purposes and in
accordance with the terms set forth herein, as provided under the terms of the
Consulting Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Consulting
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Account Rights" shall have the meaning assigned to such term in Section
2.3 hereof.

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, Public Law
100-497.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean (i) all loans, compensation, fees, expenses and
other amounts owing by (a) Borrower to Lakes or its Affiliates under or with
respect to the Pawnee Note, and each of the other Transaction Documents, and (b)
the Pawnee Nation and/or Pawnee TDC to Lakes or its Affiliates under or with
respect to the Tribal Agreement or any other document or agreement executed in
favor of Lakes or its Affiliates by Pawnee Nation or Pawnee TDC in connection
with the Project, each of the foregoing, whether now existing or hereafter
incurred or arising, and (ii) together with any costs, expenses or other amounts
hereafter owing by the Borrower to Agent or Lakes pursuant to the terms of this
Agreement, each of the foregoing, whether now existing or hereafter incurred or
arising.


                                                                          Page 2

<PAGE>

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Consulting Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.

     "Project" shall have the meaning assigned to such term in the Consulting
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the gross Revenues (as such term is defined
in the Consulting Contract) of the Project, including without limitation credit
card receivables and other accounts receivable related to such project.

     "Resolution of Limited Waiver" shall mean that certain Resolution of the
Pawnee Trading Post Gaming Corporation Regarding Limited Waiver of Sovereign
Immunity - Resolution #05-03 - dated January 12, 2005, issued in connection with
the Transaction Documents.

     "Transaction Documents" shall mean each of this Agreement, the Consulting
Agreement, the Pawnee Notes, the Security Agreement, and any and all other
documents and agreements executed by Borrower in favor of Lakes or related
thereto or contemplated thereby (collectively, the "Transaction Documents").

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Agent hereby
acknowledges the security interest in the Collateral granted to Lakes by
Borrower. On the date of execution of this Agreement, the Borrower shall cause
to be delivered to Lakes (a) such financing statements and similar documents
necessary to perfect the security interest granted to Lakes pursuant to Section
3.1 hereof (the "Financing Statements") and (b) a legal opinion in form and
substance reasonably acceptable to Lakes, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by the Borrower, together with opinions as to the Borrower's
sovereign immunity waiver and noncontravention with laws and agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct any manager of the Project, and any other applicable parties to cause all
Project Revenues to be transferred to the Agent on each Business Day for deposit
into the Project Dominion Account. If


                                                                          Page 3

<PAGE>

any Project Revenues are initially deposited in collection bank(s) (which shall
be permitted provided the collecting bank(s) execute and deliver the Joinder
Agreement attached hereto as Exhibit A with the Borrower, Lakes and the
collecting banks in form mutually acceptable to each of such parties), the
Borrower shall transfer or cause to be transferred all such Project Revenues or
other Collateral, consisting of cash and other collected funds directly by wire
transfer of immediate available funds to the Project Dominion Account on each
Business Day. In the event that the Borrower receives any payment that should
have been deposited into the Project Dominion Account as provided pursuant to
this Agreement, the Borrower agrees that it will hold such amounts in trust for
the benefit of Lakes, and shall not commingle any such funds with any of its
funds or other property and shall immediately transfer such amounts to the Agent
for deposit into the Project Dominion Account. The Borrower agrees that the
Agent's officers, agents and employees are irrevocably authorized by it to
endorse for payment to the Agent any instruments received by the Agent for
deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Notwithstanding any
other term or provision contained herein or in the Consulting Contract, only
Borrower shall have the authority to make withdrawals from or exercise any other
rights (collectively, the "Account Rights") with respect to Project Dominion
Account; provided that in accordance with Sections 3.2 and 5.2 hereof, Lakes may
revoke such rights of Borrower to make withdrawals and transfers from the
Project Dominion Account. Upon Agent's receipt of a Notice of Exclusive Control
from Lakes, then in connection with any such withdrawals and transfers and any
other aspects of the Project Dominion Account, the Agent shall acknowledge and
comply with only the withdrawal requests and other directions received from
Lakes, except pursuant to an arbitration award made in an arbitration proceeding
to which Lakes and the Borrower are parties. Lakes acknowledges that when it
shall release any funds from the Project Dominion Account, then its security
interest in such funds shall also be deemed to have been released concurrently
therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of an Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS


                                                                          Page 4

<PAGE>

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes itself and its Affiliates, subject only to Permitted Liens, of
all of the Borrower's right, title and interest in and to the Collateral. The
Borrower represents and warrants that the Borrower is (or, to the extent that
the Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except for Permitted Liens; and that
no financing statement, notice of lien, mortgage, deed of trust or instrument
similar in effect covering the Collateral or any portion thereof or any proceeds
thereof ("LIEN NOTICE") exists or is on file in any public office, except as
relates to Permitted Liens and except as may have been filed in favor of Lakes
relating to this Agreement or related agreements, or for which duly executed
termination statements have been delivered to Lakes for filing. Without the
prior written consent of Lakes, Borrower will not in any way encumber, or
hypothecate, or create or permit to exist, any lien, security interest, charge
or encumbrance or adverse claim upon or other interest in the Collateral, except
for Permitted Liens, and the Borrower will defend the Collateral against all
claims and demands of all persons at any time claiming the same or any interest
therein, except as expressly provided herein. The Borrower will not permit any
Lien Notices to exist or be on file in any public office with respect to all or
any portion of the Collateral except, in each case, for Lien Notices of holders
of Permitted Liens or encumbrances permitted by the Consulting Contract or any
other Transaction Document or except as may have been filed by or for the
benefit of Lakes relating to this Security Agreement or related agreements. The
Borrower shall promptly notify Lakes of any attachment or other legal process
levied against any of the Collateral and any information received by any
Borrower relative to the Collateral, which may in any material way affect the
value of the Collateral or the rights and remedies of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to


                                                                          Page 5

<PAGE>

execute any instrument which Lakes may deem necessary or advisable to accomplish
the purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
until such time as Lakes delivers a written notice to Agent and the Borrower in
accordance with Section 5.2 that Lakes is thereby exercising exclusive control
over the Project Dominion Account ("NOTICE OF EXCLUSIVE CONTROL"), provided that
the proceeds of any such investments are deposited in or credited to the Project
Dominion Account contemporaneously with such transaction; and provided, further,
such investment instructions shall not affect the type or nature of Collateral
for attachment and perfection purposes under the Oklahoma Uniform Commercial
Code (as may be amended from time to time) or any other applicable law. After
Agent receives the Notice of Exclusive Control, it will immediately cease
complying with any investment instructions concerning Project Dominion Account
originated by Borrower or its representatives and shall comply with only such
investment instructions as are originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Consulting Contract have been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Consulting Contract.


                                                                          Page 6

<PAGE>

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or Lakes may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach by
Borrower and termination of the Consulting Contract, the Borrower will furnish
the following to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of each Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained


                                                                          Page 7

<PAGE>

               by the Borrower. Lakes agrees that any such information, as well
               as any other information it may receive from Borrower relating to
               the Project, shall be and remain subject to the provisions of
               Section 13.15 of the Consulting Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager of each Project, substantially in the form
               set forth in Exhibit B stating that, except as explained in
               reasonable detail in such certificate, all gross Project Revenues
               with respect to each Project has been deposited into the Project
               Dominion Account for the period covered by such financial
               statement. If such certificate discloses an exception to such
               certification, such certificate shall set forth what action the
               Borrower has taken or proposes to take with respect thereto.

     (d) Insurance. The Borrower shall cause to be maintained insurance on each
Project and related assets with such coverages and in such amounts as are
reasonably satisfactory to Lakes, including without limitation, loss of business
income coverage, and naming Lakes as an additional insured, lender loss payee
and mortgagee, if applicable. Upon request, the Borrower shall provide to the
Agent and Lakes certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it


                                                                          Page 8

<PAGE>

is not possible to cure such default within such cure period, such cure period
shall be extended an additional reasonable period of time for so long as the
Borrower shall be using diligent efforts to effect a cure thereof but no more
than an additional sixty (60) days.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under any Pawnee Note or other
Transaction Document and shall have continued beyond any applicable grace or
cure period.

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower, and to
apply the same towards the repayment of the Obligations, and to endorse in the
name of the Borrower any checks, drafts, notes or other instruments or documents
received in payment of or on account of the Project Revenues or other
Collateral; and any such proceeds so received and prepaid shall be applied to
installments of principal on the Obligations in the inverse order of their
maturity; and provided further that Lakes may obtain any injunctive or other
relief as is necessary for the enforcement of this Agreement and the terms and
provisions set forth herein, and may exercise such other rights and remedies
available by law or agreement; PROVIDED, HOWEVER, that notwithstanding any term
or provision contained herein, Lakes shall take all steps necessary to continue
to permit and cause the necessary withdrawals and transfers to be made from the
Project Dominion Account in accordance with Section 5.3 hereof; and in no event
shall Lakes exercise any remedy against the Borrower (excluding other third
parties) with respect to the Project Revenues other than such remedies as are
necessary to require their deposit into the Project Dominion Account or seeking
an accounting and turnover of any Project Revenues held in trust by the Borrower
as required under Section 2.2 hereof until such time that the Borrower shall
have ceased business operations or in accordance with Section 5.3 it is
determined that any portion thereof is no longer economically feasible to
operate at the Project, at which time Lakes may exercise all rights and remedies
under applicable law or by agreement and apply all proceeds of the Collateral to
the repayment of the Obligations. Borrower agrees that, to the extent notice of
sale shall be required by law with respect to the disposition of any Collateral,
at least ten (10) calendar days notice to the Borrower of the time and place of
any public sale or the time after which a private sale is to be made shall
constitute reasonable notification. Lakes agrees that it shall withdraw and
terminate any Notice of Exclusive Control at such time that all outstanding
Events of Default have been cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action


                                                                          Page 9

<PAGE>

or proceeding purporting to affect its security interest in and/or the value of
any Collateral, and in exercising any such powers or authority, the right to pay
all expenses incurred in connection therewith, including attorneys' fees.
Borrower hereby agrees that it shall be bound by any such payment made or
incurred or act taken by Lakes hereunder and shall reimburse Lakes for all
reasonable payments made and expenses incurred under this Agreement, which
amounts shall be secured under this Agreement. Lakes shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WITHDRAWALS AFTER DEFAULT/TERMINATION. Upon the occurrence of
an Event of Default and if Lakes shall issue the Notice of Exclusive Control to
Agent, Lakes and Borrower agree that until all obligations under the Transaction
Documents have been indefeasible paid, then during any applicable cure period
related thereto or if the Consulting Contract is terminated, (a) Lakes shall
permit the release of and turnover to Borrower monthly of such funds from the
Project Dominion Account as are reasonably necessary to pay normal and customary
operating costs and expenses related to the operation of the Project, excluding
any amounts that are payable to the Borrower, the Pawnee TDC, the Pawnee Nation
or any other affiliate of any of such parties and excluding debt service on any
indebtedness for borrowed money or capital leases except as otherwise approved
by Lakes in writing (collectively, the "Permitted Operating Costs"); and in
connection therewith, Borrower shall provide a proposed operating expense budget
to Lakes for its approval, which shall be updated from time to time at Lakes
request and any funds provided to Borrower shall be spent, used and applied only
in accordance with such budget; and (b) to the extent economically feasible (as
hereinafter defined), Borrower agrees to continue to operate and maintain the
Project and Project Facilities in accordance with reasonable industry standards,
and as to any portions of the Project Facilities that are no longer economically
feasible to operate, Borrower and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Project Dominion Account and disbursed in accordance with
the same


                                                                         Page 10

<PAGE>

terms and provisions set forth in clause (a) above, provided however that such
liquidation proceeds shall be excluded from net total revenues for purposes of
calculating the management compensation of any manager of the Project; and
Borrower shall keep the Project Facilities and all related assets insured for
the coverages and amounts required by this Agreement and name Lakes as an
additional insured, lender loss payee and mortgagee, as applicable and provide
evidence thereof upon request until all amounts owing to Lakes have been paid in
full, and if any portion of the Project assets are damaged by any casualty and
it is economically feasible for Borrower to continue to operate such damaged
assets, then Borrower shall repair and reconstruct such operations that were
damaged and are to be continued, and any excess insurance proceeds that are not
used to repair and reconstruct the applicable damaged Project assets shall be
deposited into the Project Dominion Account and disbursed in accordance with the
same terms and provisions set forth herein, provided however that such excess
proceeds shall be excluded from net total revenues for purposes of calculating
the management compensation of any manager of the Project. As used herein, the
term "economically feasible" shall mean that the gross Revenues derived from any
applicable operations is in excess of that needed to pay the Permitted Operating
Costs for such operations.

     Section 5.4 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.


                                                                         Page 11

<PAGE>

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement. If Borrower shall fail to
pay any of such costs when due, Lakes may make a withdrawal of proceeds from the
Project Dominion Account in an amount sufficient to cause the payment of the
same or reimburse Lakes for any such payment.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,
administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the


                                                                         Page 12

<PAGE>

Borrower shall not be and Lakes shall be responsible for such related costs and
expenses. If Borrower shall fail to pay any of such costs when due, Lakes may
make a withdrawal of proceeds from the Project Dominion Account in an amount
sufficient to cause the payment of the same or reimburse Lakes for any such
payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days after the date of this Agreement, Borrower shall select an eligible
financial institution to act as the agent (the "Agent") under this Agreement and
cause the Agent to execute a counterpart signature page to this Agreement,
thereby becoming a party hereto. Thereafter, there shall at all times be an
Agent hereunder. Any such Agent shall be a financial institution organized and
doing business under the laws of the United States of America or of any State,
having a combined capital, undivided profits and surplus of at least
$500,000,000. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of


                                                                         Page 13

<PAGE>

resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower (so long as a Notice of
Exclusive Control has not been issued by Lakes to the Agent) and Lakes delivered
to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.

                                    ARTICLE 7
                                  MISCELLANEOUS


                                                                         Page 14

<PAGE>

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Pawnee Trading Post Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Lakes:           Lakes Pawnee Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN 55305
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as


                                                                         Page 15

<PAGE>

to such jurisdiction, be ineffective to the extent of such prohibition without
invalidating the remaining provisions hereof, provided, however that where the
provisions of any such applicable law may be waived, they hereby are waived by
the Parties to the fullest extent permitted by law to the end that this
Agreement shall be deemed to be a valid and binding agreement in accordance with
its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Consulting Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient. No failure on the part of the Agent or
Lakes to exercise and no delay in exercising, any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power or right preclude any other or further exercise thereof of any other power
or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the dominion account agreement referred
to in Section 3.1(g) of the Consulting Contract. As such and without limiting
the scope of such Consulting Contract, the provisions of Article 12 of the
Consulting Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration and jurisdiction provisions contained
therein and the Resolution of Limited Waiver. This Agreement and the Project
Dominion Account will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles and without limiting
the foregoing, the Oklahoma Uniform Commercial Code (as may be amended form time
to time) notwithstanding any provision therein or other applicable law that
would otherwise make such laws inapplicable to the Borrower. The parties hereto
may not change the law governing this Agreement and the Project Dominion Account
without express written consent of the Borrower, Agent and Lakes.


                                                                         Page 16

<PAGE>

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Consulting Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        PAWNEE TRADING POST GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: ______________, 200__

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated January 12, 2005 (as amended or otherwise modified from time to time, the
"Dominion Agreement") by and among Pawnee Trading Post Gaming Corporation
("Borrower"), Lakes Pawnee Consulting, LLC ("Lakes") and
____________________________________ ("Agent"), the Collecting Bank, must
execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and consulting services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Pawnee Trading Post Gaming Corporation
(the "Borrower"), do hereby provide this Compliance Certificate in connection
with that certain Dominion Account Agreement dated January 12, 2005 (the
"Dominion Agreement"), by and between the Borrower, Lakes, and
__________________________ Bank (the "Bank"); capitalized terms used but not
otherwise defined herein shall have the meaning set forth in the Dominion
Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No.
          ________________________________ with the Bank.

                                        PAWNEE TRADING POST GAMING CORPORATION


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.90
<SEQUENCE>25
<FILENAME>c92713exv10w90.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.90

                               SECURITY AGREEMENT

                        (LAKES CONSULTING - TRADING POST)

          This Security Agreement is made and entered into on January 12, 2005,
by and between Pawnee Trading Post Gaming Corporation (hereinafter referred to
as "Pawnee" or "Debtor"), a wholly-owned subsidiary of the Pawnee Tribal
Development Corporation ("Pawnee TDC"), each created under the Constitution of
and a governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee
Nation"), a federally recognized Indian tribe, whose business office is located
at 871 Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes
Pawnee Consulting, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes" or "Secured Party"), whose business office is located at
130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the Constitution of and a governmental
subdivision of the Pawnee Nation, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into a Gaming Development Consulting
Agreement with Debtor dated January 12, 2005 (as heretofore and hereafter
amended, the "Consulting Contract"), pursuant to which Lakes is to provide
certain development financing and consulting services to Debtor as more
specifically described therein.

     WHEREAS, pursuant to the Consulting Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Consulting Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges and
grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the Debtor's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each case whether now
owned or hereafter acquired by Debtor in order to secure the payment and


                                  Page 1 of 15

<PAGE>

performance of the obligations of Debtor to Secured Party described in Section 3
herein below. On the date of execution of this Agreement, Debtor shall cause to
be delivered to Secured Party: (a) such financing statements and similar
documents necessary to perfect the security interest granted to Secured Party
pursuant to this Agreement (the "Financing Statements"), and (b) a legal opinion
in form and substance reasonably acceptable to Secured Party, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by Debtor, together with opinions as to Debtor's
sovereign immunity waiver and non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) each Project, Gaming
Facility Site and/or Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral"):

          (a) any Furnishings and Equipment (as defined in the Consulting
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Consulting Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "Project" means each business enterprise of the Debtor now or
hereafter created to engage in Class II Gaming and III Gaming (as defined in the
Indian Gaming Regulatory Act of 1988, Public Law 100-497 ("IGRA")) at the
Project's Gaming Facility, and to conduct the operations of any Ancillary
Facilities of the Project, including, but not limited to, operating and managing
office space, kids arcade, child care facility, hotel with swimming pool and
golf course, restaurant, RV park, retail stores, entertainment facilities, or
the sale of fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs.

          "Project Facilities" means the buildings, structures and improvements
to be constructed and used by the Project for its gaming and ancillary
operations.


                                  Page 2 of 15

<PAGE>

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Pawnee Notes, the
Consulting Contract, this Agreement, and each dominion account agreement,
mortgage, or other document or instrument in favor of Secured Party or its
Affiliates (as such term is defined in the Consulting Contract) and related
thereto or hereto (collectively, the "Transaction Documents"), and (b) the
Pawnee Nation and/or Pawnee TDC to Secured Party or its Affiliates under or with
respect to the Tribal Agreement or any other document or agreement executed in
favor of Secured Party or its Affiliates by Pawnee Nation or Pawnee TDC in
connection with the Project, each of the foregoing, whether now existing or
hereafter incurred or arising, (ii) any and all sums advanced by Secured Party
in order to preserve the Collateral or preserve Secured Party's security
interest in the Collateral (or the priority thereof) and (iii) the expenses of
retaking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, of any proceeding for the collection or
enforcement of any indebtedness, obligations or liabilities of Debtor referred
to above, or of any exercise by Secured Party of its rights hereunder, together
with reasonable attorneys' fees and disbursements and court costs (collectively,
the "Secured Obligations"); PROVIDED HOWEVER, Secured Party agrees to terminate
this Security Agreement upon request if Debtor has satisfied the following
conditions: (a) all Secured Obligations have been repaid in full to Secured
Party and Secured Party has no further obligation, if any, to make advances
under the Consulting Contract with respect thereto, and (b) the Consulting
Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

     4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 9.2 of the Consulting Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and perform this Security Agreement. This Security Agreement constitutes a
legally valid and binding


                                  Page 3 of 15

<PAGE>

obligation of the Debtor, enforceable against the Debtor in accordance with its
terms subject to any limitations set forth in the Resolution of Limited Waiver
dated December 30, 2004 of the Debtor related to and approving the Transaction
Documents (the "Resolution of Limited Waiver"). Subject to the completion of the
items identified in Section 4(c) below, the provisions of this Security
Agreement are effective to create in favor of Secured Party a valid and
enforceable first, prior and perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default under, or constitute an event
which with notice or lapse of time or both will result in a breach of or
constitute a default


                                  Page 4 of 15

<PAGE>

under, any agreement, indenture, mortgage, deed of trust, equipment lease,
instrument or other document to which Debtor is a party, conflict with or
require approval, authorization, notice or consent under any law, order, rule,
regulation, license or permit applicable to Debtor of any court or any federal
or state government, regulatory body or administrative agency, or any other
governmental body having jurisdiction over Debtor or its properties, or require
notice, consent, approval or authorization by or registration or filing with any
person or entity (including, without limitation, any stockholder or creditor of
Debtor) other than any notices to Debtor from Secured Party required hereunder
except as may be agreed to by Debtor and Secured Party. Except for the Permitted
Liens, none of the Collateral is subject to any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor is
a party that may restrict or inhibit Secured Party's rights or ability to sell
or dispose of the Collateral or any part thereof after the occurrence of an
Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than 21 days after a
request by Secured Party, procure or execute and deliver all further instruments
and documents (including, without limitation, notices, legal opinions, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements) necessary or appropriate to and take any other actions which are
necessary or, in the judgment of Secured Party, desirable or appropriate to
perfect or to continue the perfection, priority and enforceability of Secured
Party's security interests in the Collateral, to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, to protect the Collateral against the rights, claims or interests of
third persons, or to effect or to assure further the purposes and provisions of
this Security Agreement, and will pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted


                                  Page 5 of 15

<PAGE>

hereby; (ii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices as may be necessary or
desirable, which Secured Party may reasonably request in order to perfect and
preserve the perfection and priority of the security interests granted or
purported to be granted hereby; (iii) if any Collateral shall be evidenced by a
promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for liens permitted by and subject to the terms of
Section 9.2 of the Consulting Contract ("Permitted Liens"), and the Debtor will
defend the Collateral against all claims and demands of all persons at any time
claiming the same or any interest therein, except as expressly provided herein.
Debtor will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or except as may have been
filed by or for the benefit of Secured Party relating to this Security Agreement
or related agreements. Debtor shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor relative to the Collateral, which may in any
material way affect the value of the Collateral or the rights and remedies of
Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or


                                  Page 6 of 15

<PAGE>

otherwise disposed of in violation of these provisions, the security interest of
Secured Party shall continue in such Collateral or part thereof notwithstanding
such sale, transfer, assignment, exchange or other disposition, and Debtor will
hold the proceeds thereof in a separate account for Secured Party's benefit.
Debtor will, at Secured Party's request, transfer such proceeds to Secured Party
in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Consulting Contract, Debtor
will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Consulting
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance on each Project
and related assets with such coverages and in such amounts as are reasonably
satisfactory to Secured Party, including without limitation, loss of business
income coverage, and naming Secured Party as an additional insured, lender loss
payee and mortgagee, if applicable. Upon request, the Debtor shall provide to
the Secured Party certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.;

          (j) Except as expressly permitted by the Consulting Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party' s sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than


                                  Page 7 of 15

<PAGE>

thirty (30) days delinquent and will in a timely manner record and assign to
Secured Party, to the extent and at the earliest time permitted by law, any such
liens and rights to under such guaranties;

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and


                                  Page 8 of 15

<PAGE>

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

     6. DEFAULTS AND REMEDIES

          6.1 EVENTS OF DEFAULT. Each of the following occurrences shall
constitute an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Consulting Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

          6.2 REMEDIES. Upon the occurrence and continuation of an Event of
Default hereunder, the Debtor expressly covenants and agrees that Secured Party
may, at its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Consulting Contract is terminated and either (i) the the
Gaming Facility has not opened for business to the general public, or (ii) the
Debtor does not or at any time fails to continue operations of Class II Gaming
and/or Class III Gaming at the Project's Gaming Facility or any material portion
of the Project Facilities, Secured Party may immediately take possession of any
of the Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's places of business, premises and property to exercise Secured
Party's rights hereunder; and without notice (except as specified below), sell
the Collateral or any part thereof in one or more parcels at one or more public
or private sales, at any of Secured Party's offices or elsewhere, at such time
or times, for cash, on credit or for future delivery,


                                  Page 9 of 15

<PAGE>

and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor acknowledges and agrees that, to the extent notice of
sale shall be required by law, at least ten (10) days' written notice to Debtor
of the time and place of any public sale or of the date on or after which any
private sale is to be made shall constitute reasonable notification. Any public
sale shall be held at such time or times during ordinary business hours and at
such place or places as Secured Party may fix in the notice of such sale.
Notwithstanding the foregoing, Secured Party shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. Secured Party
may, without notice or publication, adjourn any public or private sale, or cause
the same to be adjourned from time to time by announcement at the time and place
fixed for sale or, with respect to a private sale, after which such sale may
take place, and any such sale may, without further notice, be made at the time
and place to which it was so adjourned or, with respect to a private sale, after
which such sale may take place. Each purchaser at any such sale shall hold the
property sold free from any claim or right on the part of Debtor, and the Debtor
hereby waives, to the full extent permitted by law, all rights of stay and/or
appraisal which Debtor now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted. The Debtor also hereby
waives any claims against Secured Party arising by reason of the fact that the
price at which any Collateral may have been sold at a private sale was less than
the price which might have been obtained at a public sale, even if Secured Party
accepts the first offer received and does not offer such Collateral to more than
one offeree. The parties hereto agree that the notice provisions, method, manner
and terms of any sale, transfer or disposition of any Collateral in compliance
with the terms set forth herein or any other provision of this Security
Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and


                                 Page 10 of 15

<PAGE>

neither the Secured Party nor any of their officers, directors, trustees,
employees, representatives or agents shall, in the absence of willful misconduct
or gross negligence, be responsible to the Debtor for any act or failure to act
pursuant to this Section 6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:          Pawnee Trading Post Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Secured Party:   Lakes Pawnee Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center


                                 Page 11 of 15

<PAGE>

                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Consulting Contract, Debtor shall not assign any of its interest under this
Security Agreement without the prior written consent of Secured Party. Any
purported assignment inconsistent with this provision shall, at the option of
Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way


                                 Page 12 of 15

<PAGE>

be affected or impaired thereby and shall nonetheless remain in full force and
effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured
Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms hereof, and execute and deliver to Debtor such documents as
Debtor may reasonably request to


                                 Page 13 of 15

<PAGE>

evidence such termination. Such reassignment and redelivery shall be without
warranty by or recourse to Secured Party, and shall be at the expense of Debtor;
provided, however, that this Security Agreement (including all representations,
warranties and covenants contained herein) shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by Secured
Party in respect of the indebtedness and obligations secured hereunder is
rescinded or must otherwise be restored or returned by Secured Party upon or in
connection with the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Debtor or any other person or upon or in connection with the
appointment of any intervenor or conservator of, or trustee or similar official
for, Debtor or any other person or any substantial part of its assets, or
otherwise, all as though such payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the security agreement referred to in
the Consulting Contract. As such and without limiting the scope of such
agreements, the provisions of Article 12 of the Consulting Contract apply to
this Agreement and are hereby incorporated by reference, including, without
limitation, the limited sovereign immunity waiver, limitations on recourse and
arbitration provisions contained therein and the Resolution of Limited Waiver.
This Agreement will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles. The parties hereto may
not change the law governing this Agreement without express written consent of
the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        PAWNEE TRADING POST GAMING CORPORATION

ATTEST:


By: /s/ Leslie Hand                     By: /s/ Monty Matlock
    ---------------------------------       ------------------------------------
Name: Leslie Hand                       Name: Monty Matlock
      -------------------------------         ----------------------------------
Its: President                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES PAWNEE CONSULTING, LLC

ATTEST:


By: /s/ Kevin Kean                      By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Kevin Kean                        Name: Timothy J. Cope
      -------------------------------   Title: President and Chief Financial
Its:                                           Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
          (PAWNEE TRADING POST GAMING CORPORATION COLLATERAL LOCATIONS)

1.   ____________________________________________________, OKLAHOMA

2.   ____________________________________________________, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.91
<SEQUENCE>26
<FILENAME>c92713exv10w91.txt
<DESCRIPTION>MANAGEMENT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.91

                              MANAGEMENT AGREEMENT

                              FOR A GAMING FACILITY
                                       AND
                          RELATED ANCILLARY FACILITIES

                                     BETWEEN

                     PAWNEE TRADING POST GAMING CORPORATION,
                        A WHOLLY-OWNED SUBSIDIARY OF THE
                     PAWNEE TRIBAL DEVELOPMENT CORPORATION,
                        A GOVERNMENTAL SUBDIVISION OF THE
                           PAWNEE NATION OF OKLAHOMA,
                          A FEDERALLY RECOGNIZED TRIBE

                                       AND

                          LAKES PAWNEE MANAGEMENT, LLC
                      A MINNESOTA LIMITED LIABILITY COMPANY

                             DATED: JANUARY 12, 2005


                                       -1-

<PAGE>

     THIS MANAGEMENT AGREEMENT, is made and entered into this 12th day of
January, 2005 by and between Pawnee Trading Post Gaming Corporation ("Pawnee"),
a wholly-owned subsidiary of the Pawnee Tribal Development Corporation ("Pawnee
TDC"), each created under the Constitution of and a governmental subdivision of
the Pawnee Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian
tribe, located in the State of Oklahoma, with business offices located at 871
Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes Pawnee
Management, LLC, a Minnesota limited liability company (hereinafter referred to
as "Lakes"), whose business office is located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established Pawnee, a wholly-owned subsidiary of Pawnee
TDC and tribally-chartered corporation, as the legal entity which will own and
operate certain gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     B. The United States government holds lands in the State of Oklahoma in
trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     C. In compliance with the Indian Gaming Regulatory Act of 1988, P.L.
100-497, 25 U.S.C. Section 2701 et seq. as it may from time to time be amended,
the governing body of the Pawnee Nation has enacted a tribal ordinance
regulating the operation of gaming activities conducted on Pawnee Nation "Indian
lands" (hereinafter referred to as the "Gaming Ordinance"), creating the Pawnee
Nation Gaming Commission, and authorizing Class II and Class III gaming on its
"Indian lands" subject to the provisions of the Gaming Ordinance and a
Tribal-State Compact or gaming procedures issued by the Secretary of the U.S.
Department of the Interior.

     D. The Pawnee Nation is committed to using any gaming activities to provide
employment and improve the social, economic, education, and health needs of its
members; to increase the revenues of the tribe; and to enhance the Pawnee
Nation's economic self-sufficiency and self-determination. The Pawnee gaming
projects are expected to generate substantial revenues for the Pawnee TDC, and
therefore significantly improve the social, economic and health conditions of
present and future tribal members, while strengthening the Pawnee Nation's
overall economic self-sufficiency and self-determination.


                                       -2-

<PAGE>

     E. Pawnee presently lacks the resources to operate a gaming operation on
its own and desires to retain the services of a management company, with
knowledge and experience in the gaming industry, to manage and operate certain
of its gaming operations and related resort facilities.

     F. Lakes has represented to Pawnee that it has the managerial capacity to
commence operation of the Project's Gaming Facility and Ancillary Facilities (as
defined herein); and Pawnee has selected Lakes, and Lakes agrees, to provide the
management expertise necessary to the conducting of successful tribal gaming
operations at the Project's Gaming Facility and the successful operation of its
Ancillary Facilities.

     G. This Management Agreement shall become effective when all the necessary
approvals listed in Section 2.19 are received (the "Effective Date") and shall
continue for a term as described in Section 2.19, unless otherwise provided in
this Management Agreement.

     H. This Management Agreement is entered into pursuant to the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as that
statute may be amended. All gaming conducted at the Gaming Facility (as defined
herein) will at all times comply with the IGRA, applicable tribal law and the
Tribal-State Compact or gaming procedures issued by the Secretary, if any.

     J. Any dispute regarding this Management Agreement between the parties or
any other Transaction Documents is to be subject to the dispute resolution and
governing law provisions contained herein, as well as the Resolution of Limited
Waiver attached hereto.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     As they are used in this Management Agreement, the terms listed below shall
have the meaning assigned to them in this Article:


                                       -3-

<PAGE>

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Project's Gaming Facility; provided, however, unless the
parties otherwise agree, the term "Ancillary Facilities" shall not include any
of the Pawnee Tribe's existing enterprises consisting of fuel and retail sales
made at the existing U.S. Hwy 412 & State Hwy 18 "Travel Plaza" currently
operated by the Pawnee TDC.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Class II Gaming" means games as defined in 25 U.S.C. Section 2703(7)(A),
as such law may be amended and as defined by the National Indian Gaming
Commission in 25 C.F.R. Section 502.3 and amendments thereto, but only to the
extent such games are authorized by tribal ordinance and licensed by the Gaming
Commission.

     "Class III Gaming" means all gaming that is not Class I or Class II Gaming
as defined in the IGRA, including, but not limited to, the forms of gaming
listed as Class III games by the National Indian Gaming Commission in 25 C.F.R.
Section 502.4 and amendments thereto, but only to the extent such gaming is
allowed by a Tribal-State Compact or gaming procedures issued by the Secretary,
tribal ordinance, and licensed by the Gaming Commission.

     "Commencement Date" means the first day that Lakes is legally able to
commence management of the Class II and/or Class III gaming operations conducted
at the Project's Gaming Facility under all Legal Requirements.

     "Costs of Gaming Operation" means the total of all expenses for the
operation of the Class II and/or Class III Gaming activities conducted at the
Project's Gaming Facility pursuant to Generally Accepted Accounting Principles
("GAAP"), including but not limited to the following: (1) fees imposed upon the
Gaming Facility by the National Indian Gaming Commission based upon its gross
receipts from Class II and/or Class III Gaming activities; (2) any contributions
and license/regulatory fee reimbursements payable to the State pursuant to a
Tribal-State Compact; (3) the amount, if any, required by a Tribal-State Compact
to fund or support programs for the treatment and assistance of compulsive
gamblers and for the prevention of compulsive gambling; (4) license or other
fees for background investigations upon "key employees" and "primary management
officials" as defined in 25 C.F.R. Section 502.14 and Section 502.19; (5)
depreciation and amortization applicable to the Gaming Facility based upon an
assumed thirty (30) years life


                                       -4-

<PAGE>

consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(6) costs of administration, recruiting, hiring, firing and training employees
working in or for the Gaming Facility's Class II and/or Class III Gaming
activities; (7) compensation and benefits to Gaming Facility employees; (8)
reasonable and customary regulatory fees imposed on the Gaming Facility by the
Gaming Commission (which amounts shall be subject to the provisions of Section
5.1 contained herein), (9) management fees to be paid Lakes under Section 5.5(b)
hereof; and (10) total gaming-related costs, fees and expenses, including,
without limitation: materials, supplies, inventory, utilities, repairs and
maintenance (excluding capital replacements, the costs of which shall be
amortized as hereinabove provided), insurance and bonding, marketing,
advertising, annual audits, accounting, legal or other professional and
consulting services, security or guard services, and such other costs, expenses
or fees necessarily, customarily and reasonably incurred in the operation of the
Class II and/or Class III Gaming activities conducted at the Gaming Facility,
and reasonable and necessary travel expenses incurred subsequent to the
Commencement Date for officers and employees of Lakes and authorized
representatives of Pawnee in connection with the Gaming Facility's operations;
provided, however, that "Costs of Gaming Operation" shall specifically not
include any license fees or costs of Lakes or its employees in connection with
licensing with either the NIGC or Gaming Commission.

     "Costs of Ancillary Operations" means all expenses and costs pursuant to
Generally Accepted Accounting Principles incurred in operating the Project's
Ancillary Facilities in which neither Class II Gaming nor Class III Gaming is
conducted, including, without limitation: (1) depreciation and amortization
applicable to such non-gaming facilities based upon an assumed thirty (30) years
life consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(2) all employment costs relating to non-gaming employees working in or for such
commercial business facilities; (3) management fees to be paid Lakes under
Section 5.5(b) hereof; (4) non-gaming supplies and materials, insurance and
other non-gaming costs reasonably and customarily incurred in operation of the
Ancillary Facilities in which neither Class II nor Class III Gaming may be
conducted.

     "Dominion Account" shall have the meaning described in Section 2.8(a)
herein.

     "Dominion Account Agreement" shall mean the Dominion Account Agreement to
be executed by Pawnee in favor of the Lakes in a form to be agreed to by Pawnee
and Lakes together with all amendments, substitutions and renewals thereof.

     "Effective Date" means the effective date of this Management Agreement as
determined pursuant to Section 2.19 herein.

     "Fiscal Year" means the accounting year used for the operation of the
Project as agreed upon by Lakes and Pawnee.


                                       -5-

<PAGE>

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project in accordance with the
standards set forth in this Management Agreement, including, without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project in accordance with the standards set forth in this
     Management Agreement.

     "Gaming Commission" means the Pawnee Nation Gaming Commission established,
or to be established, by the Gaming Ordinance, as amended (which ordinance must
be approved by the NIGC), with authority to license and regulate gaming
activities on "Indian lands" upon which the Pawnee Nation conducts gaming
activities under IGRA and which is a subordinate governmental entity of the
Pawnee Nation and is entitled to all sovereign governmental immunity of the
tribe.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming activities on the Gaming Facility Site,
each whether now existing or hereafter construed or acquired.

     "Gaming Facility Site" shall mean the lands to be used as the site for
constructing the Gaming Facility described on attached EXHIBIT A, including the
land upon which the Project's Class II and/or Class III Gaming activities are
conducted (which is land upon which Class II and/or Class III Gaming may legally
be conducted under IGRA and the Tribal-State Compact).

     "Gaming Ordinance" means the tribal ordinance enacted by the governing body
of the Pawnee Nation and approved by the NIGC in compliance with the Indian
Gaming Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as
it may from time to time be amended, regulating the operation of gaming
activities conducted on Pawnee Nation "Indian lands",


                                       -6-

<PAGE>

creating the Pawnee Nation Gaming Commission, and authorizing Class II and Class
III gaming on its "Indian lands" subject to the provisions of the Gaming
Ordinance and a Tribal-State Compact or gaming procedures issued by the
Secretary of the U.S. Department of the Interior.

     "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession.

     "Governmental Authorities" means the United States, the BIA, the State, the
Pawnee Nation and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming and/or Class III Gaming at
the Gaming Facility, the operation of the Project Facilities, or Pawnee's or
Lakes' obligations under this Management Agreement or any Transaction Document.

     "Gross Gaming Revenues" means the Project's total revenue from Class II
and/or Class III Gaming activities (excluding any insurance proceeds received
other than business interruption insurance proceeds and insurance proceeds
received to reimburse the Project for any claims included, or to be included, as
Costs of Gaming Operations).

     "Gross Ancillary Revenues" means the Project's total receipts from the sale
or rental of food, beverages, souvenirs, hotel facilities, equipment and all
other goods and services supplied for non-Class II and/or non-Class III Gaming
activities at the Ancillary Facilities that are incidental to the operation of
the Project (excluding any insurance proceeds received other than business
interruption insurance proceeds and insurance proceeds received to reimburse the
Enterprise for any claims included, or to be included, as Costs of Ancillary
Operations).

     "Gross Total Revenues" means the total of Gross Gaming Revenues and Gross
Ancillary Revenues of the Project.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Indemnity Agreement" shall mean the Indemnity Agreement between Pawnee and
Lakes described in Section 7.5 in the form agreed to by the parties, together
with all amendments, substitutions and renewals thereof.

     "Legal Requirements" means any and all present and future judicial,
administrative, and federal, state, local or tribal rulings or decisions, and
any and all present and future federal, state, local and tribal laws,
ordinances, rules, regulations, permits, licenses and certificates, in any way
applicable to Pawnee, Lakes, the Gaming Facility Site, the Project Facilities,
and the Project,


                                       -7-

<PAGE>

including without limitation, IGRA, the Tribal-State Compact, and the Gaming
Ordinance.

     "Limited Recourse" means that all liabilities or obligations of Pawnee
related to this Management Agreement, the Operating Note, any Transaction
Documents, the Project Facilities, or the Project contemplated by this
Management Agreement, and any related awards, judgments or decrees, shall be
payable solely out of the undistributed and future Net Total Revenues of the
Project, and shall be a limited recourse obligation of Pawnee, with no recourse
to any of Pawnee's assets other than such undistributed and future Net Total
Revenues of the Project (except as to: (i) a security interest in the
Furnishings and Equipment, (ii) the security interest in the Gross Total
Revenues pursuant to the Dominion Account Agreement, (iii) as to any mortgages
or deeds of trust on fee lands upon which the Project is located, and (iv) as
permitted under Section 10.3(d) herein and by Paragraph 5(c) of the Resolution
of Limited Waiver attached hereto as Exhibit B). In no event, except as
permitted under Section 10.3(d) herein and by Paragraph 5(c) of the Resolution
of Limited Waiver attached hereto as Exhibit B), shall Lakes have recourse to
(a) the physical property of the Project Facilities (other than Furnishings and
Equipment and to any mortgages or deeds of trust on fee lands upon which the
Project is located subject to the security interest securing the Operating
Note), (b) Net Total Revenue distributions already received by Pawnee from the
Project and made to the Pawnee TDC in accordance with this Management Agreement
and/or the Dominion Account Agreement, (c) assets of the Pawnee TDC purchased
with such Net Total Revenue distributions, or (d) any other asset of the Pawnee
TDC or Pawnee Nation (other than such undistributed and future Net Total
Revenues of the Project, the security interest in the Furnishings and Equipment
and any mortgages or deeds of trust on fee lands upon which the Project is
located).

     "Lakes" means Lakes Pawnee Management, LLC, a Minnesota limited liability
company with its business office located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

     "Management Agreement" shall mean this Management Agreement for a Gaming
Facility and Related Ancillary Facilities between the parties that deals with
the management of the Project and its operations, as the same may be amended or
modified from time to time, subject to all Legal Requirements.

     "Material Breach" shall have the meaning described in Section 6.1 herein.

     "Minimum Guaranteed Monthly Payments" means the minimum monthly amount
payable to Pawnee, which amount shall be determined pursuant to Section 5.3
hereof.

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to the IGRA.

     "Net Gaming Revenues" means Gross Gaming Revenues less (1) amounts paid out
as, or paid for, prizes; and (2) Costs of Gaming Operation (excluding management
compensation as set forth in Section 5.5 (b) herein).


                                       -8-

<PAGE>

     "Net Ancillary Revenues" means Gross Ancillary Revenues less Costs of
Ancillary Operations.

     "Net Total Revenues" means the sum of Net Gaming Revenues plus Net
Ancillary Revenues.

     "NIGC Approval" means written approval by the NIGC Chairman of this
Management Agreement.

     "Notes and Security Provisions" shall have the meaning set forth in Section
6.4(b) hereof.

     "Operating Note" means the promissory note evidencing the Minimum
Guaranteed Payment Advances under Section 5.3(b) herein and the Working Capital
Advances under Section 5.7 herein made by Lakes, substantially in a form to be
agreed to by Pawnee and Lakes, together with all amendments, substitutions and
renewals thereof.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the business enterprise of Pawnee created to engage in
Class II and/or Class III Gaming at the Gaming Facility located at the Gaming
Facility Site, and which shall include any other lawful commercial activity
conducted in the Ancillary Facilities including, but not limited to any of the
following, operating and managing office space, kids arcade, child care
facility, hotel with swimming pool and golf course, restaurant, RV park, retail
stores, entertainment facilities, or the sale of fuel, food, beverages, alcohol,
tobacco, gifts, and souvenirs, and any other amenities which the parties
mutually agree should be included as part of the Project.

     "Project Accounts" shall have the meaning described in Section 2.8 herein.

     "Project Facilities" means the permanent buildings, structures and
improvements used by the Project for its gaming and ancillary operations,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operations,
each whether now existing or hereafter constructed or acquired.

     "Replacement" shall have the meaning described in Section 6.4(c) herein.

     "Resolution of Limited Waiver" refers to the limited waiver of sovereign
immunity to be adopted by Pawnee in the form attached hereto as EXHIBIT B and
evidencing all approvals required pursuant to Pawnee's governing documents and
applicable law (it being understood and agreed that Pawnee shall take such
further actions to ratify, adopt and enforce the attached form of Resolution of
Limited Waiver as shall be required by law or regulation due to future changes
in


                                       -9-

<PAGE>

its own legal or governing status to fully preserve its stated intent).

     "Scope of Project Description Sheet" shall mean the Scope of Project
Description Sheet dated January 12, 2005, which substantially describes the
scope of the Project currently contemplated by Pawnee and Lakes.

     "Secretary" means the Secretary of the Interior of the United States, or
her appropriately designated representative/agent.

     "Security Agreement" shall mean the Security Agreement to be executed by
Pawnee in favor of Lakes in a form to be agreed to by Pawnee and Lakes, together
with all amendments, substitutions and renewals thereof.

     "State" means the State of Oklahoma wherein the Gaming Site is located.

     "Transaction Documents" shall have the meaning described in Section 9.12(b)
herein.

     "Tribal Agreement" shall mean the agreement between the Pawnee Nation and
Pawnee TDC and Lakes or its affiliates described in Section 9.12(i).

     "Tribal-State Compact" means an agreement which may be entered into between
the Pawnee Nation and the State concerning Class III Gaming and any amendments
or other modifications thereto, which agreement must be approved by the
Secretary and published in the Federal Register.

     "UCC Financing Statements" means UCC-1 financing statements naming Pawnee
as debtor and naming Lakes or any third party lenders providing funding to the
Project as a secured party, in the form approved by the parties.

     "Working Capital Advances" shall have the meaning described in Section 5.7
herein.

                                    ARTICLE 2
                           AUTHORITY AND DUTY OF LAKES

     2.1 Appointment as Agent. Subject to the terms and conditions of this
Management Agreement, Pawnee hereby appoints Lakes to act as the exclusive agent
for Pawnee for all matters related to the management of the operations of the
Project Facilities and the Project during the term of this Management Agreement.
Lakes' agency responsibilities shall include, among other things, maintenance
and improvement of the Project Facilities, management and operation of the
Project's Class II and/or Class III Gaming activities within the Gaming
Facility, and all other revenue producing activities that are conducted by the
Project in the Ancillary Facilities, such as the sale of food and beverages.
Lakes accepts such appointment as Pawnee's exclusive agent for the term of this
Management Agreement. Subject to the provisions of this


                                      -10-

<PAGE>

Management Agreement and specifically the restrictions in this Article 2 and the
budget provisions in Article 5 hereof, Lakes shall have, and Pawnee does hereby
grant to Lakes, the power and authority as agent for Pawnee, to exercise the
rights of Pawnee under and to execute, modify, or amend any contracts associated
with the operations of the Project Facilities and Project (excluding this
Management Agreement or compacts or other agreements with the State or any other
governmental agency, which shall remain the sole and exclusive authority of the
Pawnee Nation), including, without limitation, purchase orders, equipment and
retail leases, contracts for services, including utilities, and maintenance and
repair services, relating to the operation of the Project Facilities and the
Project except for real estate agreements and contracts (excluding retail
leases); provided, however, that in no event shall Lakes execute any contracts
or agreements which require payments exceeding $250,000 in the aggregate, or
which have a term exceeding one (1) year. The duties and authorities of Lakes
shall be subject in all events to receipt of all necessary licenses, consents or
approvals from the Gaming Commission.

     2.2 Limitations. Lakes shall have no authority to waive or impair Pawnee's
sovereign immunity. Except as stated herein, Lakes shall have no authority as
Pawnee's agent under this Management Agreement without the prior written
approval of Pawnee (not to be unreasonably withheld): (a) to incur costs which
are materially in excess of the expenditures to be agreed upon in the operating
budget or the capital expenditure budget to be developed pursuant to Section 5.1
hereof; (b) to sell, encumber or otherwise dispose of any personal property or
equipment located in the Project Facilities, except for inventory sold in the
regular course of business and other items which must be replaced due to age,
obsolescence, or wear and tear; (c) to purchase any goods or services from Lakes
or any of Lakes' affiliated companies as a Costs of Gaming Operations or Costs
of Ancillary Operations unless such arrangement is specifically approved in
writing by Pawnee. Except as specifically authorized in this Article 2, Lakes
shall not hold itself out to any third party as the agent or representative of
Pawnee.

     2.3 Lakes' Authority and Responsibility.

          (a) Lakes, through the Project's general manager, shall conduct and
direct all business and affairs in connection with the day-to-day operation,
management and maintenance of the Project and the Project Facilities, including
the establishment of operating days and hours. It is the parties' intention that
the Project Facilities be open 24 hours daily, seven days a week. Lakes is
hereby granted the necessary power and authority to act, through the Project's
general manager, in order to fulfill all of its responsibilities under this
Management Agreement. Nothing herein grants or is intended to grant Lakes a
titled interest to the Project Facilities or to the Project. Lakes hereby
accepts such retention and engagement. Pawnee shall have the sole proprietary
interest in and ultimate responsibility for the conduct of all Class II and/or
Class III Gaming conducted by the Project, subject to the rights and
responsibilities of Lakes under this Management Agreement.

          (b) In managing, operating, maintaining and repairing the Project and
the Project Facilities under this Management Agreement, Lakes' duties, through
the Project's general manager, shall include, without limitation, the following:
(i) Lakes shall use reasonable measures


                                      -11-

<PAGE>

for the orderly physical administration, management, and operation of the
Project and the Project Facilities, including without limitation cleaning,
painting, decorating, plumbing, carpeting, grounds care and such other
maintenance and repair work as is reasonably necessary; (ii) Lakes shall comply
with all duly enacted statutes, regulations and ordinances of the Pawnee Nation;
and (iii) Lakes shall comply with all applicable provisions of the Internal
Revenue Code including, but not limited to, the prompt filing of any cash
transaction reports and W-2G reports that may be required by the Internal
Revenue Service of the United States or under the Tribal-State Compact.

     2.4 Compliance with Laws.

          (a) Lakes, through the Project's general manager, shall assist Pawnee
in compliance with all terms and conditions of the Tribal-State Compact, the
Gaming Ordinance, IGRA and any gaming regulations (collectively, the "Governing
Laws"), the violation of which would materially impair the conduct of gaming
permitted to be conducted under IGRA by the Project. Without limiting the
foregoing, Lakes shall also supply the NIGC with all information necessary to
comply with the National Environmental Policy Act, as it may be amended from
time to time, and comply with NIGC's regulations relating thereto. Lakes shall
ensure compliance with requirements concerning the reporting and withholding of
taxes with respect to the winnings from gaming operations pursuant to this
Management Agreement. Pawnee agrees to cooperate with Lakes and aid Lakes in
ensuring compliance with the foregoing laws, regulations and requirements. In
managing and operating the Project Facilities and the Project, Lakes shall
comply with all laws, rules, regulations, ordinances, compacts and all other
agreements affecting the same, including without limitation the Governing Laws.

          (b) The parties shall use their best efforts to obtain all necessary
approvals of Governmental Authorities of this Management Agreement.

     2.5 Security. Lakes shall provide for appropriate security for the
operation of the Project Facilities. All aspects of Project Facilities security
shall be the responsibility of Lakes. Upon agreement of Pawnee and Lakes, any
security officer may be bonded and insured in an amount commensurate with his or
her enforcement duties and obligations. The cost of any charge for security and
increased public safety services will be a Costs of Gaming Operations or Costs
of Ancillary Operations, as appropriate.

     2.6 Accounting, Financial Records, and Audits.

          (a) Lakes, through the Project's general manager, shall maintain full
and accurate records and books of account for operations of gaming activities
and related ancillary operations managed by Lakes. Such records shall be
maintained at Lakes' office located within the Project Facilities and shall be
made available for immediate inspection and verification at all times.
Inspection or verification by the Governmental Authorities shall be coordinated
through the Gaming Commission.

          (b) Prior to the Commencement Date, and subject to the approval of
Pawnee


                                      -12-

<PAGE>

and the Gaming Commission, which approvals shall not be unreasonably withheld
and which shall occur prior to the Commencement Date, Lakes, through the
Project's general manager, shall establish and maintain such approved accounting
systems and procedures that shall: (i) include procedures for internal
accounting controls; (ii) permit the preparation of financial statements in
accordance with GAAP ; (iii) be susceptible to audit; (iv) allow the Project,
Pawnee and NIGC to calculate the annual fee under 25 CFR Section 514.1; (v)
permit the calculation of Lakes' compensation under Section 5.5(b) herein; and
(vi) provide for the allocation of operating expenses or overhead expenses among
Pawnee, the Project and Lakes, or any other user of shared facilities or
services. Supporting records and the agreed upon accounting system shall be
sufficiently detailed to permit the calculation and payment of Lakes'
compensation hereunder and to permit the performance of any fee or contribution
computations required under IGRA, a Tribal-State Compact and other applicable
laws or regulations.

          (c) Net Gaming Revenues, Net Ancillary Revenues, and Net Total
Revenues will be calculated by Lakes, through the Project's general manager, for
purposes of distribution monthly in accordance with Section 5.5 and copies of
such calculations shall be promptly supplied to Pawnee as required by Section
5.4 herein.

          (d) All records shall be maintained so as to permit the preparation of
financial statements in accordance with generally accepted accounting principles
consistently applied and in accordance with procedures to be mutually agreed
upon by the parties. Lakes, through the Project's general manager, shall, as a
Costs of Gaming Operations, furnish to Pawnee and the Gaming Commission, monthly
financial reports in accordance with Section 5.4 herein. Such reports shall
provide reasonable detail as requested by Pawnee and the Gaming Commission with
respect to revenues and expenses of each profit center of the Project. In
addition, all gaming operations conducted within the Gaming Facility shall be
subject to special outside annual audits, which the Gaming Commission may cause
to be conducted, and all contracts or subcontracts for supplies, services or
concessions for a contract amount in excess of $25,000 annually relating to
gaming activities within the Gaming Facility shall be subject to audits, which
audits the Gaming Commission may cause to conducted by an independent certified
public accountant from a Big Five accounting firm with more than five (5) years
experience in audits of gaming enterprise operations selected and approved by
the Gaming Commission. The cost of such audits and audit reports (including the
annual audit under Section 5.6 herein) shall constitute Costs of Gaming
Operation. The Lakes shall make any reports or presentations to Pawnee officials
as are requested.

     2.7. Cash Monitoring. Lakes, through the Project's general manager, will
promulgate, and all parties and their respective employees, agents, and
representatives will obey operational policies consistent with the Gaming
Ordinance respecting the handling of cash, security systems, and access to cash
cage, counting rooms, and other places where cash is kept and handled. Pawnee
and the Gaming Commission and its authorized representatives shall have the
right to monitor and investigate systems for cash management implemented by
Lakes and to verify daily Gross Gaming Revenues, Gross Ancillary Revenues, and
Gross Total Revenues.


                                      -13-

<PAGE>

     2.8 Bank Accounts, Reserve Funds and Permitted Investments.

          (a) On or prior to the Commencement Date, Pawnee and Lakes shall
execute the Dominion Account Agreement and create the Dominion Account
("Dominion Account") described therein. Gross Gaming Revenues and Gross
Ancillary Revenues shall be deposited daily into the Dominion Account, which
shall be subject to the lien of the Dominion Account Agreement and established
at a commercial bank, of Pawnee's choice, organized under the laws of the United
States of America or any state thereof provided such bank is a member of the
Federal Deposit Insurance Corporation and has combined capital, undivided
profits and surplus of at least $500,000,000. Lakes shall also establish other
segregated bank accounts with the approval of Pawnee for the operation of the
Project (the "Project Accounts"), which accounts must indicate the custodial
nature of the accounts. The signatures of authorized representatives of Lakes
shall be the only signatures required to make withdrawals (by check or
otherwise) from such accounts for single withdrawals of less than $250,000,
provided that the monies withdrawn by Lakes are to be used only for the purposes
set forth herein and provided further that if the amount of any single
withdrawal exceeds $250,000 (excluding payout and prizes and transfers to any
designated payroll accounts, taxes, and purchases of cash for day-to-day
operational purposes, or Lakes' compensation under Section 5.5 herein), then the
signature of Pawnee's designated representative will also be required.

          (b) Lakes agrees that subject to the terms of Sections 5.3(b) and
6.4(b) hereof, Lakes shall make or permit timely transfers from the Dominion
Account to the Project Accounts of all funds needed to pay (i) Costs of Gaming
Operations; (ii) Costs of Ancillary Operations; (iii) required debt service on
the Project Facilities, as well as any other third party loans to which Lakes
has consented in writing pursuant to the terms of this Management Agreement or
other agreement; (iv) the Minimum Guaranteed Monthly Payment; (v) Minimum
Guaranty Payment Advances; and (vi) disbursements required pursuant to Section
5.5 hereof. Upon the termination of this Management Agreement and so long as:
(a) any amounts remain owing to Lakes hereunder or with respect to any related
Transaction Document, and (b) the Project shall continue in operation pursuant
to the terms of Section 6.4 hereof, then Lakes shall continue to permit
transfers from the Dominion Account to the Project Accounts for payment of the
amounts described above, but shall specifically exclude any Costs of Gaming
Operations or Costs of Ancillary Operations otherwise payable to Pawnee or any
of its Affiliates with the exception of reasonable gaming license fees and any
costs or expense associated with the provision of reasonable supplies and/or
services provided by Pawnee to the Project.

          (c) Surplus funds deposited in the Dominion Account and the Project
Accounts may be invested by Lakes in the following permitted investments: (i) a
money market mutual fund registered under the Investment Company Act of 1940
that invests exclusively in (1) marketable direct obligations issued or
unconditionally guaranteed by the United State Government or issued by an agency
thereof and backed by the full faith and credit of the United States, (2)
commercial paper having, at the time of acquisition, a rating of A-1 or P-1 or
better from either Standard & Poor's Corporation or Moody's Investors Service,
Inc., respectively; or (ii) other investments as may be directed by Lakes with
the prior written consent of Pawnee.


                                      -14-

<PAGE>

     2.9 Enforcement of Rights.

          (a) During the term of this Management Agreement, except as otherwise
provided in Section 2.9 (b) herein, Pawnee and Lakes shall mutually agree with
respect to the handling of the defense, prosecution or settlement of civil
disputes with third parties relating to gaming and other management activities
conducted or contracts executed by Lakes, as agent for Pawnee. The parties will
assist and cooperate with each other with respect to such third-party claims and
disputes. All uninsured liabilities incurred or expenses incurred by Pawnee and
Lakes or any of the employees, officers or directors of any party in defending
such claims by third parties or prosecuting claims against third parties shall
be considered either Costs of Gaming Operation or Costs of Ancillary Operations,
depending upon the circumstances and nature of the claim, except with respect to
claims and liabilities resulting from criminal misconduct, which shall be
governed by Article 7 herein.

          (b) All claims brought against Pawnee or Lakes or any of the
employees, officers or directors of any party arising out of or relating to
gaming or other ancillary operations conducted pursuant to this Management
Agreement that may be settled and released for a total settlement amount of less
than $100,000 may be paid and settled by Lakes on behalf of Pawnee and/or Lakes
in accordance with Lakes' good faith business judgment.

     2.10 Fire and Safety Services. Lakes, through the Project's general
manager, shall be responsible for obtaining adequate coverage for fire and
safety services and may, in its discretion, have such services provided on a
contractual basis by the local fire and police departments. The costs of any
fire and safety protection services shall be appropriately allocated between
Costs of Gaming Operation and Costs of Ancillary Operations, and, if provided by
a department of the Pawnee Nation, shall not exceed the actual cost of providing
such services.

     2.11 Timely Payment of Costs of Gaming Operations and Costs of Ancillary
Operations. Lakes shall be responsible for paying Costs of Gaming Operation and
Costs of Ancillary Operations on behalf of the Project from the bank account(s)
established pursuant to Section 2.8 herein so as to avoid any late-payment
penalties, except those incurred as a result of good faith payment disputes) to
the extent funds of the Project are available; provided, however, that payment
of all such costs (and taxes or similar payments arising from Project
operations) shall be solely the legal responsibility of the Project.

     2.12 Acquisition of Gaming and Other Equipment.

          (a) All gaming equipment shall be acquired by Lakes, as agent for
Pawnee, on behalf of the Project from Gaming Commission licensed distributors
and manufacturers.

          (b) All acquisitions of new equipment after the public opening of the
Project Facilities shall be purchased by Lakes as agent for Pawnee on behalf of
the Project on a cash on delivery basis, unless otherwise agreed by Pawnee.


                                      -15-

<PAGE>

     2.13 Hours of Operation. Unless otherwise agreed by the parties, the
Project Facilities shall be operated seven days per week and twenty-four hours
per day, subject to any restrictions in the IGRA, the Gaming Ordinance and a
Tribal-State Compact.

     2.14 Access to Operations. Lakes, through the Project's general manager,
shall provide immediate access by appropriate officials of the Gaming Commission
and Pawnee's designated representative to the gaming operation, including all
books and records in addition to those listed in the access requirements set
forth in Sections 2.6 and 2.7 herein.

     2.15 Increased Public Safety Services. The parties agree that increased
actual costs of law enforcement and police protection services required as a
result of Class II and/or Class III Gaming in the Gaming Facility shall be paid
as Costs of Gaming Operation.

     2.16 Advertising. Lakes, through the Project's general manager, shall
contract for and place advertising, subject to prior approval of the general
concepts of the advertising by Pawnee. Advertising costs will be included in the
operating budgets prepared in accordance with Article 5 herein.

     2.17 Certain Meetings. The parties agree that, to facilitate oversight of
the activities conducted pursuant to this Management Agreement and to maintain
communication generally between the individuals who will be involved in
supervising those activities, Pawnee or its designated representative and the
Lakes' principal individuals will meet at least monthly to review operations of
the Project Facilities and any current issues pertaining thereto.

     2.18 Maintenance. Lakes, through the Project's general manager, will cause
the Project Facilities to be repaired and maintained and operated in a clean,
good and orderly condition. Repairs and maintenance will be paid as Costs of
Gaming Operation if related to the gaming operations of the Project, or as Costs
of Ancillary Operation if related to the other ancillary operations of the
Project.

     2.19 Term. Notwithstanding the date of signature of the parties hereto,
this Management Agreement shall become effective automatically (without need of
amendment, ratification or other action of the parties) upon written approval of
the Gaming Ordinance and this Management Agreement by the Chairman of the
National Indian Gaming Commission. The Commencement Date shall be the first day
upon which Lakes may legally manage the Gaming Facility's gaming operations
under IGRA. Unless sooner terminated as provided herein, this Management
Agreement shall, subject to Legal Requirements, continue for a term of five (5)
years from the Commencement Date, provided however that the Notes and Security
Provisions, including without limitation, each of (a) the Security Agreement,
Dominion Account Agreement, Indemnity Agreement and the UCC Financing
Statements, and (b) sections 2.8 and Article 7 hereof shall each survive and
remain effective until terminated under Article 6 hereof and the amounts owing
to Lakes or its Affiliate by Pawnee under this Management Agreement and related
Transaction Documents have been paid in full. In the event that the Gaming
Facility IS EXPANDED


                                      -16-

<PAGE>

BEYOND ITS CURRENT CAPACITY, then the term shall be seven (7) years subject to
Legal Requirements.

     2.20 Pawnee Representatives. Pawnee hereby acknowledges and agrees that to
the extent any authorization, consent or other approval of the Pawnee is
required under this Management Agreement or any related Transaction Documents
and Pawnee shall provide to Lakes a resolution naming any individual or
individuals authorized to represent Pawnee for purposes or for the purpose of
the operation and performance of this Management Agreement and related
Transaction Documents, then Lakes shall be entitled to rely on all decisions,
authorizations, consents, and approvals provided by such individual or
individuals, as applicable, until such time as Pawnee shall deliver to Lakes an
additional resolution revoking or otherwise modifying such authority.

     2.21 Gaming Facility Site. Pawnee and Lakes mutually agreed that the site
to be used for constructing the Gaming Facility ("Gaming Facility Site") shall
be those lands described on attached EXHIBIT A, (which is land upon which Class
II and/or Class III Gaming may legally be conducted under IGRA and the
Tribal-State Compact).

     2.22 Scope of Project. The scope of the Project subject to this Management
Agreement shall be subject to the mutual approval of the parties. It is
contemplated the scope of the Project will be substantially as described on the
Scope of Project Description Sheet dated January 12, 2005, subject to such
changes as may be necessary or appropriate taking into account competitive
conditions, financing and other circumstances. The parties understand that
market, Tribal-State Compact, governmental or other conditions may change and it
may be necessary to expand or decrease the scope of the Project.

     2.23 Non-Encumbering Assets. Pawnee agrees not to encumber any of the
assets of the Project Facilities or the Project without the written consent of
Lakes, which consent will not be unreasonably withheld; except that Pawnee shall
have the right without the consent of Lakes to grant security interests in the
Project's revenues which are subordinate to Lakes' interests under this
Management Agreement and all related Transaction Documents pursuant to a
subordination agreement in form and substance acceptable to Lakes. Pawnee agrees
to enter into a limited, transactional waiver of sovereign immunity and consent
to jurisdiction and arbitration as to Lakes in connection with this Management
Agreement and any related Transaction Documents, as provided in the Resolution
of Limited Waiver.

                                    ARTICLE 3
                                PERSONNEL MATTERS

     3.1 Employees. All employees involved with operation of the Gaming
Facility's Class II and/or Class III Gaming activities and related ancillary
activities throughout the Project Facilities subject to management by Lakes
under this Management Agreement shall be employees of Pawnee. Subject to the
applicable requirements in the Tribal-State Compact, the employment relationship
shall be governed by Pawnee Nation substantive law and any applicable federal
law, subject to the Pawnee Nation's reasonable Indian preference policies, and
all matters will be subject to dispute


                                      -17-

<PAGE>

resolution procedures in the manner described in this Management Agreement.
Lakes, on behalf of the Project, shall be solely responsible for the hiring,
training, promoting, and firing of all such employees except for the general
manager as agreed to by Pawnee and Lakes, whose employment, advancement and
termination shall be subject to approval of Pawnee, such approval not to be
unreasonably withheld. Lakes shall develop a policy and procedure in conjunction
with Pawnee, to implement an executive development program for employees who are
members of the Pawnee Nation whereby members will be prepared through training
and education to assume key management positions within the gaming and ancillary
operations of the Project. All salaries, wages, employee insurance, worker
compensation premiums, employment taxes, government exactions of any kind
related to employment, benefits, and overhead related to the hiring,
supervising, and discharge of employees, will be Costs of Gaming Operations or
Costs of Ancillary Operations, as appropriate.

     3.2 Project Employee Policies. Lakes, through the Project's general
manager, shall prepare a draft of personnel policies and procedures (the
"Project Employee Policies"), including a job classification system with salary
levels and scales, which policies and procedures shall be subject to approval by
Pawnee. The Project Employee Policies shall include a grievance procedure in
order to establish fair and uniform standards for the Project employees, which
will include procedures for the resolution of disputes between the Project and
Project employees. At a minimum, the Project Employee Policies shall provide for
an employee grievance process which provides the following:

     A written "Board of Review" process will be created by the Project's
     general manager to provide Project employees with a procedure for bringing
     work related issues to the attention of Project management so they may be
     promptly and permanently resolved in a fair and equitable manner. The Board
     of Review process will be available to all Project employees except: (1)
     employees at the director level and above, and (2) employees discharged for
     actions involving violations of tribal gaming regulations or law, or
     federal, state, or local law. Project employees will be eligible to use the
     Board of Review process if they have: (a) completed thirty (30) work
     shifts, and progressed through the chain of command in their home
     department in the Project, (b) brought the work related issue to the
     attention of the Project's human resources department, and (c) completed a
     Board of Review hearing request form within the allotted time frame. The
     Project's human resources department shall be responsible for selecting
     hearing panel members as outlined in written procedures to be adopted. The
     Board of Review will be empowered to make the full range of decisions
     available and appropriate (i.e. providing back pay and an apology to the
     employee, or upholding the employee's discharge). The Board of Review's
     decision on the work related issue will final and binding, and there will
     be no appeal beyond the Board of Review.

Lakes, through the Project's general manager, shall be responsible for
administering the Project Employee Policies. Any material revisions to the
Project Employee Policies shall not be effective unless they are approved by
Pawnee. All such actions shall comply with applicable tribal law, subject to the
applicable requirements in a Tribal-State Compact.


                                      -18-

<PAGE>

     3.3 Employee Background Checks. A background investigation shall be
conducted by the Gaming Commission in compliance with all Legal Requirements, to
the extent applicable, on each applicant for employment as soon as reasonably
practicable. No individual whose prior activities, criminal record, if any, or
reputation, habits and associations are known to pose a threat to the public
interest, the effective regulation of Class II and/or Class III Gaming, or to
the gaming licenses of Lakes or the Project, or to create or enhance the dangers
of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of Project gaming activities, shall knowingly be employed by the Project
or Pawnee. The background investigation procedures employed by the Gaming
Commission shall be formulated in consultation with Lakes and shall satisfy all
regulatory requirements independently applicable to Lakes; provided, however,
that this provision shall not be deemed to limit or impair the exclusive
authority of the Gaming Commission pursuant to the Gaming Ordinance or the
exercise of its discretion thereunder. Any cost associated with obtaining such
background investigations shall constitute Costs of Gaming Operation.

     3.4 Pawnee Nation and Indian Preference. Lakes, through the Project's
general manager, shall adhere in regard to recruitment, employment, reduction in
force, promotion, training and related employment actions to a publicly
announced policy and practice of Pawnee Nation Preference and/or any publicly
announced policy of Indian preference, both of which must be reasonably
promulgated by the Pawnee Nation.

     3.5 Conflict of Interest.

          (a) Lakes covenants that it will not unduly interfere with, or attempt
to influence the internal affairs or government decisions of the Pawnee Nation
or any of its Affiliates for its gain or advantage.

          (b) Lakes hereby certifies that no payments have been made or will be
made in the future by Lakes to any tribal official, relative of any tribal
official or government employee for the purpose of obtaining any special
privilege, gain, advantage or consideration for Lakes in connection with this
Management Agreement, except for the fees payable to the Gaming Commission and
amounts payable to Pawnee pursuant to this Management Agreement. However,
nothing in this provision shall prohibit Lakes from making contributions to
community organizations within the Pawnee Nation or to the Pawnee Nation for the
purpose of funding community activities.

          (c) No member of the Gaming Commission, or any Pawnee Nation tribal
court official may be employed by Lakes or be a "Party in Interest" as defined
in Section 8.1 (a) herein with respect to this Management Agreement or a gaming
equipment agreement or have any direct or indirect financial interest in the
gaming to be operated pursuant to this Management Agreement. tribal officials
shall not be eligible for employment at the Project Facilities and Project, but
will be eligible to enter into contracts for the provision of goods or services
for the Project Facilities and Project.

          (d) Lakes further agrees to comply with all conflict of interest rules
set forth in


                                      -19-

<PAGE>

regulations or ordinances of the Pawnee Nation.

     3.6 Participation in Tribal Functions. Lakes acknowledges that personnel
who are members of the Pawnee Nation have cultural and religious
responsibilities to perform in regard to tribal rituals and similar activities.
Lakes, through the Project's general manager, will schedule working hours and
take other actions, with the assistance and advice of Pawnee, to accommodate
tribal members in performing these responsibilities without affecting their
employment status or position.

                                    ARTICLE 4
                                    INSURANCE

     4.1 Duty to Maintain. Lakes, acting as agent of Pawnee, shall maintain
during the course of this Management Agreement, appropriately allocated as a
Cost of Gaming Operation or a Cost of Ancillary Operations, insurance coverages
in forms and amounts that will adequately protect Pawnee and Lakes, but in no
case less than the amounts set forth in this Article, or as required by a
Tribal-State Compact.

     4.2 Workers' Compensation. Lakes, acting as agent of Pawnee, shall maintain
adequate workers' compensation insurance in accordance with all applicable laws,
including employer's liability insurance, in the amounts agreed to by the Lakes
and Pawnee, or as required by the Tribal-State Compact.

     4.3 Commercial General Liability. Lakes, acting as agent of Pawnee, shall
purchase on Pawnee's behalf and maintain commercial general liability insurance
covering operations of the Project, including blanket contractual liability
coverage, broad form property liability coverage, and personal injury coverage
in the amount of $1,000,000 per person/$3,000,000 per occurrence for bodily
injury and $1,000,000 per person/$3,000,000 per occurrence for property damage,
or as required by the Tribal-State Compact or the Gaming Commission.

     4.4 Automobile. Lakes, acting as agent of Pawnee, shall maintain
comprehensive automobile liability insurance covering operations of the Project,
including all owned, hired and non-owned automobiles, trucks, buses, trailers,
motorcycles or other equipment licensed for highway use with limits and coverage
approved by Lakes and Pawnee.

     4.5 Pawnee and Lakes to be Insured. Insurance set forth in Sections 4.3 and
4.4 hereof shall name Pawnee and Lakes as insureds, and such policies shall be
endorsed to prohibit the insurer from raising tribal sovereign immunity as a
defense to the payment of claim by the insurer.

     4.6 Property Insurance. Lakes shall also, acting a agent for Pawnee,
procure replacement value all-risk casualty and extended hazard insurance in
appropriate coverage amounts which shall insure the Project Facilities and any
fixtures, improvements and contents located therein against lost or damage by
fire, theft and vandalism. Such casualty insurance policy or policies shall name
Pawnee, Lakes, and the Project Facilities as insureds. All such casualty
insurance proceeds


                                      -20-

<PAGE>

shall be applied to the immediate replacement of the applicable Project
Facilities' part or fixture, improvements or contents therein unless the parties
agree otherwise. Subject to the terms of Sections 6.4 and 6.6 hereof, any excess
insurance proceeds that are not used to repair and reconstruct the applicable
damaged Project assets shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided however that such excess proceeds (except business
interruption insurance proceeds) shall be excluded from Net Total Revenues for
purposes of calculating the management compensation of Lakes under Section
5.5(b) hereof.

     4.7 Fidelity Bond. Lakes, acting as agent of Pawnee, shall maintain
fidelity bonds on Project employees and in such amounts as Lakes and Pawnee
shall deem reasonable.

     4.8 Unemployment Insurance. Lakes, acting as agent for Pawnee, shall
maintain adequate unemployment compensation/disability insurance with respect to
the Project employees in compliance with the Tribal-State Compact, if
applicable.

     4.9 Evidence of Insurance. From time to time as reasonably requested by
Pawnee, Lakes shall supply to Pawnee and any necessary Governmental Authorities
copies of the insurance policies applicable to the Project Facilities or Project
operations as required by this Article.

     4.10 Insurance Proceeds. Subject to the terms of Sections 6.4 and 6.6
hereof, any insurance proceeds received with respect to the Project, except as
provided in Section 4.6 hereof, shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided, however, that if there is any insurance recovery for a
claim related to the operation of the Project for which either Pawnee or Lakes
has previously paid from its own separate funds, then, to the extent of amounts
paid by either of such parties, the insurance proceeds will be paid over to them
and the balance shall be deposited into the Dominion Account as above.

                                    ARTICLE 5
                     BUDGETS, COMPENSATION AND REIMBURSEMENT

     5.1 Projections and Budgets.

          (a) The parties shall use their best efforts to project expected
revenues and expenses for the first three (3) years of Lakes' operation of the
Project, and the projections, as described in the business plan to be submitted
to the NIGC with this Management Agreement, represent the parties' mutual
expectations.

          (b) Lakes shall prepare an initial operating budget for the first
Fiscal Year of Project operations under its management pursuant to this
Management Agreement and submit the same to Pawnee for approval by Pawnee prior
to the Commencement Date. Annual operating budgets shall be submitted by Lakes
to Pawnee thereafter by no later than thirty (30) days prior to the commencement
of the next Fiscal Year. The proposed initial operating budget and each


                                      -21-

<PAGE>

subsequent annual operating budget shall be subject to approval or disapproval
within thirty (30) days of submission to Pawnee, such approval not to be
unreasonably withheld. Pawnee may approve or disapprove of any item on such
proposed budget. The parties recognize that mutually agreeable adjustments may
be made to previously approved operating budgets from time to time during any
Fiscal Year, to reflect the impact of unforeseen circumstances, financial
constraints, or other events. Lakes agrees to keep Pawnee informed regarding any
items of revenue or expense that are reasonably anticipated to cause a material
change to the operating budget previously approved by Pawnee. Lakes shall
operate the Project and make expenditures in connection therewith in accordance
with such approved operating budget. In the event Pawnee and Lakes are unable to
resolve any disputed portions of the proposed operating budget before
commencement of the Fiscal Year, the undisputed portions of the operating budget
shall be deemed adopted and approved, and those line items in dispute shall be
determined by increasing the preceding Fiscal Year's actual expense for the
corresponding line items by an amount determined by Lakes which does not exceed
the increase in the Consumer Price Index for All Urban Consumers published by
the U.S. Bureau of Labor Statistics, U.S. City Average, all items (1997-98=100),
or any successor or replacement index thereto, for the Fiscal Year prior to the
Fiscal Year with respect to which adjustment to the line item(s) is being
calculated. The resulting adjusted operating budget shall be deemed to be in
effect for that Fiscal Year until such time as Pawnee and Lakes have resolved
the disputed items.

          (c) Lakes shall prepare an annual capital expenditure budget and
submit such budget to Pawnee for approval by Pawnee prior to the Commencement
Date. Annual capital expenditure budgets shall be submitted by Lakes to Pawnee
thereafter by no later than thirty (30) days prior to the commencement of each
succeeding Fiscal Year. The proposed capital expenditure budgets shall be
subject to approval or disapproval within thirty (30) days of submission to
Pawnee for approval, such approval not to be unreasonably withheld. Pawnee may
approve or disapprove of any item on such proposed budget. The parties recognize
that mutually agreeable adjustments may be made to previously approved capital
expenditure budgets from time to time during any budget year, to reflect the
impact of unforeseen circumstances, financial constraints, or other events.
Lakes agrees to keep Pawnee informed and obtain Pawnee's approval regarding any
projects or expenditures that are reasonably anticipated to cause a material
change to the capital expenditure budget previously approved by Pawnee. Lakes
shall make capital expenditures in accordance with such approved capital
expenditure budget.

     5.2 Intentionally omitted.

     5.3 Minimum Guaranteed Monthly Payments.

          (a) During the term of this Management Agreement, provided that the
Commencement Date has occurred, the Project shall, subject to the provisions of
Section 5.3(b) below, pay Pawnee Five Thousand Dollars ($5,000) per month (the
"Minimum Guaranteed Monthly Payment"), beginning on the Commencement Date and
continuing for the remainder of the term of the Management Agreement. The
Minimum Guaranteed Monthly Payment shall be payable to Pawnee in arrears on the
twentieth (20th) day of each calendar month following the month in


                                      -22-

<PAGE>

which the Commencement Date occurs, which payment shall have priority over the
Operating Note, any obligations to repay funding provided by any third party
lender in connection with financing the development, construction equipping of
the Project Facilities, and payment of Lakes' compensation. If the Commencement
Date is a date other than the first day of a calendar month, the first payment
will be prorated from the Commencement Date to the end of the month. The Minimum
Guaranteed Monthly Payment shall be prorated if gaming is conducted at the
Gaming Facility for any other partial months.

          (b) Minimum Guaranteed Monthly Payments shall be deducted from any
disbursements of Net Total Revenues received by Pawnee under Section 5.5 hereof
in any given month; provided, however, that if the Net Total Revenues in a given
month are less than $5,000 Lakes shall advance the funds necessary to compensate
for the deficiency from its own funds (the "Minimum Guaranteed Payment
Advances", which advances shall not accrue interest but shall be evidenced by an
Operating Note in a form agreed to by Pawnee and Lakes), and provided further
that the Minimum Guaranteed Monthly Payments shall be reduced to $1,000 per
month for the remaining months in a Fiscal Year after Pawnee has received in
such Fiscal Year Total Net Revenue distributions of $60,000, Lakes shall be
entitled to recoup any Minimum Guaranteed Payment Advances made under this
subsection from the Net Total Revenues of the Project in succeeding months
during the term hereof, as provided in Section 5.5 hereof (and any amounts
outstanding on account of Minimum Guaranteed Payment Advances at the end of the
term of this Management Agreement shall be immediately due and payable by
Pawnee). In no event shall this recoupment payment for Minimum Guaranteed
Payment Advances result in Pawnee receiving less than its Minimum Guaranteed
Monthly Payment in any month, and in no event shall Lakes be allowed or entitled
to interest on any Minimum Guaranteed Payment Advances. Minimum Guaranteed
Monthly Payments shall be prorated with respect to any months (or portions
thereof) that Class II Gaming or Class III Gaming is suspended or terminated at
the Gaming Facility, and no Minimum Guaranteed Monthly Payments shall be
required with respect to any months that no Class II Gaming or Class III Gaming
is conducted at the Gaming Facility or accrue subsequent to termination of this
Management Agreement.

          (c) Any obligations owing by Pawnee under the Operating Note shall be
repaid solely as a Limited Recourse obligation of Pawnee without any other
liability or guarantee on the part of Pawnee. Except for the Minimum Guaranteed
Monthly Payment to Pawnee, repayment of the Operating Note obligations shall
have first priority on any Net Gaming and Net Ancillary Revenues generated by
the Project. Pawnee agrees to grant to Lakes a first priority and perfected
security interest, including a Dominion Account arrangement pursuant to the
Dominion Account Agreement (in a form consistent with the terms of this
Management Agreement), on any Net Gaming and Net Ancillary Revenues of the
Project in order to secure repayment of the Operating Note, and such Operating
Note shall also be secured on a first priority and perfected basis by any
Furnishings and Equipment pursuant to the Security Agreement and by first
priority liens in the additional recourse assets described in the definition of
"Limited Recourse."

     5.4 Daily and Monthly Statements. Lakes shall furnish to Pawnee's
designated representative financial statements identifying for each day the
Gross Gaming Revenues attributable


                                      -23-

<PAGE>

to the Enterprise's Class II and/or Class III Gaming on each day that such
reports are normally available. Within fifteen (15) days after the end of each
calendar month, Lakes shall provide verifiable financial statements in
accordance with GAAP to Pawnee and the Gaming Commission covering the preceding
month's operations of the Enterprise, including operating statements, balance
sheets, income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof.

     5.5 Distribution of Net Total Revenues.

          (a) All Net Total Revenues shall be disbursed on a monthly basis as
set forth below, paid on the twentieth day of each calendar month for the
preceding month. Such Net Total Revenues shall be disbursed from the Project
Bank Account(s) to the extent available for payment of the following accounts in
the following order of priority:

          (i)  The Minimum Guaranteed Monthly Payment described in Section 5.3
               hereof;

          (ii) All outstanding Minimum Guaranteed Payment Advances and Working
               Capital Advances (and accrued interest thereon) or any other
               amounts owing to Lakes under the Operating Note;

          (iii) Current principal, interest and any other payments due on any
               obligations to repay funding provided by any third party lender
               in connection with financing the development, construction, and
               equipping of the Project Facilities,

          (iv) Management compensation due Lakes under Section 5.5(b) below;
               provide that if the distribution under this subsection in any
               month is insufficient to fund such payment in full, the unpaid
               amount shall be deferred and paid under subsection (vi) below;

          (v)  Any amounts deferred (including interest on any deferred
               management compensation which interest shall accrue, from the
               date the management compensation is deferred, at the greater of
               the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or
               any successor bank) plus two percent (2%) or the same rate for
               the financing provided by any third party lender for the
               development, construction and equipping of the Project
               Facilities) under subsections (ii), (iii), (and (iv) above;

          (vi) Any monthly capital replacement or other reserve contributions
               which have been created with the written approval of the Lakes
               and Pawnee;

          (vii) Any indemnification or other obligations then owing by Pawnee to
               Lakes


                                      -24-

<PAGE>

               under any Transaction Document and not paid as Costs of Gaming
               Operations or Costs of Ancillary Operations (provided Lakes has
               provided written notice to Pawnee that above amounts are owed
               under the Transaction Documents, and Pawnee has not disputed the
               same or such amounts have been determined to be owing through an
               arbitration proceeding under Article 10 hereof); and

          (viii) All remaining Net Total Revenues shall be disbursed to Pawnee
               at the same time the management compensation is paid to Lakes,
               subject to the rights of the Lakes under the Dominion Account
               Agreement upon the occurrence of a Material Breach by Pawnee or
               pursuant to the terms of the Operating Note.

          (b) As compensation for Lakes' management services hereunder, (i) in
the event that this Management Agreement is approved by the NIGC before Class II
and/or Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive, once Net Total Revenues from the Project exceed
Four Hundred Seventy Thousand Dollars ($470,000) for each twelve (12) month
period following the Commencement Date, thirty percent (30%) of Net Total
Revenues for the prior calendar month less any amounts earned by and due to a
Lakes' Affiliate for any development fees in connection with the Project, and
(ii) in the event that this Management Agreement is approved by the NIGC after
Class II and/or Class III gaming operations are first conducted at the Project's
Gaming Facility, Lakes shall receive, once Net Total Revenues from the Project
exceed Four Hundred Seventy Thousand Dollars ($470,000) for each twelve (12)
month period following the Commencement Date, thirty percent (30%) of Net Total
Revenues, for the prior calendar month less any amounts due to a Lakes'
Affiliate for any consulting fees earned that month in connection with the
Project under any contract between Pawnee and the Lakes Affiliate still in
effect at that time, for so long as this Management Agreement shall remain in
effect during the term hereof and as provided for in this Management Agreement.
Any amounts owing to Lakes hereunder shall be Limited Recourse obligations of
the Tribe and shall be subject to the security provisions described in Section
5.3(c) hereof, including the Dominion Account Agreement and Security Agreement.

          (c) Lakes, on behalf of the Project, is responsible for making the Net
Total Revenues disbursements to the appropriate party.

     5.6 Annual Audit. With respect to each Fiscal Year, Pawnee shall cause an
audit to be conducted by an independent certified public accountant from a Big
Five accounting firm with more than five (5) years experience in audits of
gaming resort operations selected and approved by Pawnee, and on or before one
hundred twenty (120) days after the end of such year, such accounting firm shall
issue a report with financial statements in accordance with GAAP with respect to
the preceding Fiscal Year (or portion of the year in the case of the first year)
operations of the Project, including operating statements, balance sheets,
income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof, such


                                      -25-

<PAGE>

report to be approved at an annual meeting to be held at a location mutually
agreed upon by the parties. In addition, upon termination of this Management
Agreement in accordance with its terms, such accounting firm shall conduct an
audit, and on or before ninety (90) days after the termination date, shall issue
a report setting forth the same information as is required in the annual report,
in each case with respect to the portion of the Fiscal Year ending on the
termination date. If the Net Total Revenues or other amounts paid to Pawnee or
Lakes in accordance with Section 5.5 above for the relevant period are different
from the amount which should have been paid to such party based on the report
prepared by the accounting firm and based upon the provisions of this Management
Agreement, then to the extent either party received an overpayment, it shall
repay and deposit the amount of such overpayment into the bank account
referenced in Section 2.8 (a) hereof within twenty-five (25) days of the receipt
by such party of the accountant's report, and to the extent either party
received an underpayment, it shall receive a distribution from the bank account
referenced in Section 2.8 (a) hereof of the amount of such underpayment within
ten (10) days of the receipt by such party of the accountant's report. Lakes may
make adjustment to future payments to correct a discrepancy if required
distributions are not made.

     5.7 Advances for Working Capital. Where amounts in bank accounts
established pursuant to Section 2.8 hereof are insufficient to meet Costs of
Gaming Operation or Costs of Ancillary Operation, during the first six (6)
months after the Commencement Date, Lakes shall advance monies to the Project
sufficient to meet Costs of Gaming Operations and Costs of Ancillary Operations.
Thereafter, Pawnee shall advance such monies to the Project sufficient to meet
Costs of Gaming Operations and Costs of Ancillary Operations. If Lakes makes any
advances hereunder ("Working Capital Advances", which advances shall be
evidenced by an Operating Note substantially in a form to be agreed to by Pawnee
and Lakes and shall accrue interest, from the date the advances are made, at the
greater of the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or any
successor bank) plus two percent (2%) or the same rate for the financing
provided by any third party lender for the development, construction and
equipping of the Project Facilities), Lakes shall be repaid as provided in
Section 5.5 hereof (and any amounts outstanding on account of Working Capital
Advances at the end of the term of this Management Agreement shall be
immediately due and payable by Pawnee). Any Working Capital Advances shall be
Limited Recourse obligations of Pawnee and shall be subject to the security
provisions described in Section 5.3(c) hereof, including the Dominion Account
Agreement and Security Agreement. Any advances made by Pawnee hereunder shall
accrue interest at the same rate as applies to Working Capital Advances made by
Lakes.

     5.8 Development and Construction Cost Repayment. The maximum dollar amount
for repayment of development and construction costs for the Project Facilities
shall be zero Dollars ($0). Subject to any applicable Legal Requirements, the
parties may increase the maximum repayment amount by mutual written agreement.

                                    ARTICLE 6
                           TERMINATION/MATERIAL BREACH


                                      -26-

<PAGE>

     6.1 Termination for Cause. Subject to the provisions of Section 8.2, either
party may terminate this Management Agreement if the other party commits or
allows to be committed a Material Breach (as hereinafter defined) of this
Management Agreement and fails to cure such breach within thirty (30) calendar
days after receipt of a written notice from the non-breaching party identifying
the nature of the Material Breach in specific detail and its intention to
terminate this Management Agreement; provided, however, that if the nature of
such breach (but specifically excluding breaches curable by the payment of
money) is such that it is not possible to cure such breach within thirty (30)
days, such thirty-day period shall be extended for so long as the breaching
party shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days, and provided further that Lakes shall not be
entitled to an extension of such thirty-day cure period in the event of theft,
embezzlement or willful misconduct with respect to the handling of money or
other property. Termination is not an exclusive remedy for claims of a Material
Breach, and the parties shall be entitled to other rights and remedies as may be
available pursuant to the terms hereof or under applicable law. For purposes of
this Management Agreement, a "Material Breach" is any of the following
circumstances: (i) failure of Lakes to provide Pawnee with the monthly Minimum
Guaranteed Monthly Payments pursuant to Section 5.3 hereof, unless suspended
pursuant to the terms of Sections 5.3(b) or 6.4(a) hereof; (ii) material failure
of either party to perform a material obligation hereunder, or any document or
agreement related hereto for reasons not excused under Section 9.6 hereof (Force
Majeure); (iii) if any of Lakes' employees commits theft, embezzlement or crime
of moral turpitude and if, after knowledge of such act or, if disputed, after
determination by arbitration under Article 10, Lakes does not remove such
employee from connection with Class II and/or Class III Gaming operations of the
Project; (iv) default under this Management Agreement or the Operating Note, or
any document or agreement related hereto or thereto, and any default by either
Pawnee TDC or the Pawnee Nation under that certain Tribal Agreement dated
January 12, 2005 executed by such parties in favor of Lakes; or (v) any
representation or warranty made pursuant to Section 9.11 or 9.12 hereof proves
to be knowingly false or erroneous in any material way when made or shall fail
to be true and correct in all material respect at any time during the term of
this Management Agreement. Any final notice of termination hereunder shall be in
writing detailing the reason the party considers the Material Breach not to be
cured and must be delivered to the other party before such termination becomes
effective.

     6.2 Mutual Consent. This Management Agreement may be terminated at any time
upon the mutual written consent and approval of the parties.

     6.3 Involuntary Termination Due to Changes in Law or Tribal-State Compact.
The parties hereby agree to use their best efforts to conduct Class II and/or
Class III Gaming activities in accordance with this Management Agreement and to
ensure that such activities and this Management Agreement conform to and comply
with all applicable laws and a Tribal-State Compact. Pawnee agrees that, except
as may be required by federal law, neither Pawnee, Pawnee TDC nor Pawnee Nation
will enact or pass any new ordinances subsequent to the execution of this
Management Agreement that would materially impair the rights of Lakes under this
Management Agreement. Pawnee covenants and affirmatively states that neither
Pawnee, Pawnee TDC nor Pawnee Nation has or will impose any tax, fee or
assessment on Lakes, the Project or its Project


                                      -27-

<PAGE>

Facilities, this Management Agreement, the Operating Note and any related
security documents and instruments described herein other than the fees and
assessments described in "Costs of Gaming Operation." In the event of any change
in state or federal laws that results in a final determination by the Secretary,
the National Indian Gaming Commission, or a court of competent jurisdiction that
this Management Agreement is unlawful, Pawnee and Lakes shall use their
respective good faith best efforts to amend this Management Agreement in a
mutually satisfactory manner which will comply with the change in applicable
laws and not materially change the rights, duties and obligations of the parties
hereunder. In the event such amendment can not be legally effected following
exhaustion of all such good faith best efforts (including the lapse of all legal
proceedings and appeal periods without favorable results) performance of this
Management Agreement shall be automatically suspended effective upon the date
that performance of this Management Agreement becomes unlawful by such final
determination, and either party shall have the right to terminate such suspended
Management Agreement (except the Notes and Security Provisions, as defined in
Section 6.4 (b)) upon written notice to the other party.

     6.4 Other Rights upon Material Breach; Ownership of Assets and Repayment of
Obligations on Termination.

          (a) Upon the occurrence of any Material Breach or upon the occurrence
of any event or circumstance which with the giving of notice or the passage of
time or both would constitute a Material Breach, Lakes may suspend its
obligation to make any Minimum Guaranteed Payment Advances, until such time as
the default has been cured. Upon the occurrence of any Material Breach, Lakes
may suspend its obligation to make any Working Capital Advances until such time
as the Material Breach has been cured.

          (b) Upon termination, except in connection with Lakes' security
interests in the Net Total Revenues of the Project pursuant to Pawnee's Limited
Recourse obligations under the Transaction Documents (if not yet satisfied), or
any other security interests or liens in any Furnishings and Equipment and other
collateral described in the Transaction Documents, Pawnee will retain full
ownership of the Project Facilities, Plans and Specifications therefor, and the
Project and its assets; and Lakes will have no rights to the Project and its
assets or the Project Facilities (or any equipment, books and records, materials
or furnishings therein that were purchased with Costs of Gaming Operations or
Costs of Ancillary Operations) except as to the security interests and liens
recited above or as may be established otherwise by a proceeding pursuant to
Article 10 hereof. In the event of any termination (whether voluntary or
involuntary), Pawnee shall continue to have the obligation to pay unpaid
principal and interest and other amounts due under this Management Agreement,
the Operating Note or any Transaction Document executed in connection herewith,
together with any unpaid compensation owed to Lakes under Section 5.5(b) hereof
(if not yet satisfied), each of which shall become due and payable on such
termination date. Any and all obligations and provisions contained in this
Management Agreement concerning indemnity obligations or repayment of the
Operating Note, and the security therefore, including the Security Agreement and
Dominion Account Agreement, together with any unpaid compensation owed to Lakes
under Section 5.5(b) hereof and any other amounts owing to Lakes under this
Management Agreement or any other Transaction Documents and the terms and
provisions set forth in Articles 9


                                      -28-

<PAGE>

and 10 hereof excluding Sections 9.21 and 9.22 (collectively, the "Notes and
Security Provisions"), shall survive termination of this Management Agreement.
In the event of termination for any reason, and subject to its rights under the
dispute resolution provisions under Article 10 herein, Lakes shall cooperate
with Pawnee in the orderly transition of management of the Project, and shall
provide Pawnee or its designee with any and all books, records, documents,
contracts, and all other information relating to the Project Facilities or the
Project, whether such information shall be in electronic, hard copy or any other
form. If at the time of termination Pawnee's obligations under the Transaction
Documents remain unsatisfied in full, then Pawnee may either pay the obligations
in full, or to the extent economically feasible (as hereinafter defined), Pawnee
agrees to continue to operate and maintain the Project Facilities in accordance
with reasonable industry standards, and as to any portions of the Project
Facilities that are no longer economically feasible to operate, Pawnee and the
Lakes shall conduct an orderly liquidation of such assets and any liquidation
proceeds (net of reasonable sale costs) shall be deposited into the Dominion
Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such liquidation
proceeds shall be excluded from Net Total Revenues for purposes of calculating
the management compensation of any Replacement whether under Section 5.5(b)
hereof or otherwise; and Pawnee shall keep the Project Facilities and all
related assets insured for the coverages and amounts required by this Management
Agreement and name Lakes as an additional insured, loss payee and mortgagee, as
applicable and provide evidence thereof upon request until all amounts owing to
Lakes have been paid in full, and if any portion of the Project assets are
damaged by any casualty and it is economically feasible for Pawnee to continue
to operate such damaged assets, then Pawnee shall repair and reconstruct such
operations that were damaged and are to be continued, and any excess insurance
proceeds that are not used to repair and reconstruct the applicable damaged
Project assets shall be deposited into the Dominion Account and disbursed in
accordance with the same terms and provisions applicable to Gross Total
Revenues, provided however that such excess proceeds shall be excluded from Net
Total Revenues for purposes of calculating the management compensation of any
Replacement whether under Section 5.5(b) hereof or otherwise. As used herein and
in Section 6.6(d) hereof, the term "economically feasible" shall mean that the
gross revenues derived from any applicable operations is in excess of that
needed to pay the Costs of Gaming Operations or Costs of Ancillary Operations,
as applicable to the operations in question.

          (c) Subject to the provisions of Section 6.1, in the event of
termination of this Management Agreement for any reason prior to the full
repayment to Lakes of any amounts owed to it by Pawnee under the Transaction
Documents, including without limitation, the Operating Note, Pawnee shall, as
promptly as reasonably possible, appoint a person or entity qualified to manage
the Project Facilities and operate the Project (the "Replacement") and use its
best efforts to obtain approvals of all required Governmental Authorities for
such Replacement, provided the obligation to continue to operate under Section
6.4(b) exists. Pawnee agrees to keep full and accurate financial records of
operations of the Project by such Replacement and to allow Lakes to audit such
records at reasonable times prior to full repayment to Lakes of any amounts owed
to it by Pawnee under the Transaction Documents, including without limitation,
the Operating Note, and that Pawnee's compliance with this paragraph shall not
preclude the Lakes from exercising any of its other rights and remedies
hereunder or any document or agreement related hereto, including,


                                      -29-

<PAGE>

without limitation, rights under the Operating Note and the Dominion Account
Agreement.

     6.5 Notice of Termination. In the event of a proposed termination pursuant
to this Article, Pawnee shall provide notice of the termination to the NIGC or
other appropriate Governmental Authorities within ten (10) days after the
termination.

     6.6 Cessation of either Class II or Class III Gaming at the Gaming
Facility.

          (a) If, during the term of this Management Agreement, either Class II
or Class III Gaming (once legally permitted at the Gaming Facility) cannot be
lawfully conducted at the Gaming Facility by reason of the application of any
legislation or court or administrative agency order or decree adopted or issued
by a governmental entity having the authority to do so, Lakes shall, within
sixty (60) days after such legislation, order or decree becomes effective, elect
to:

               (i) retain Lakes' interest in this Management Agreement and
          suspend both Class II and Class III Gaming operations until such date
          on which both Class II and Class III Gaming at the Gaming Facility
          becomes lawful (during which period the term of the Management
          Agreement will be tolled until both Class II and Class III Gaming at
          the Gaming Facility becomes lawful or the parties mutually agreed
          otherwise, and the period of cessation shall not be deemed to have
          been part of the term of the Management Agreement and the term shall
          be extended by the length of time of the cessation); or

               (ii) retain Lakes' interest in this Management Agreement, suspend
          Class II and Class III gaming operations until such date on which both
          Class II and Class III Gaming at the Gaming Facility becomes lawful
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming at the Gaming Facility becomes lawful or
          the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and with the prior approval of Pawnee, which approval
          shall not be unreasonably withheld, use the Gaming Facility for any
          other lawful purpose pursuant to a use agreement containing terms
          reasonably acceptable to Lakes and Pawnee; or

               (iii) terminate both Class II and Class III Gaming operations and
          terminate this Management Agreement.

          Lakes shall give Pawnee written notice of Lakes' election within such
sixty-day period.

          (b) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6 (a)(i) or (ii) above, Lakes shall have the right
(but not the obligation) to commence either Class II or Class III Gaming
operations within sixty (60) days after the date on which both Class II and
Class III Gaming becomes lawful. Lakes may exercise such right by giving Pawnee
written notice


                                      -30-

<PAGE>

of such exercise within thirty (30) days after the date on which both Class II
and Class III Gaming becomes lawful. Any reasonable payment to any third party
made during the period during which either Class II or Class III Gaming is
unlawful to preserve or eliminate any leasehold or purchase contract rights of
the Gaming Facility shall be paid by Lakes from Project funds after mutual
approval of Pawnee and Lakes as Costs of Gaming Operation or Cost of Ancillary
Operations, as applicable, and reimbursed after both Class II and Class III
Gaming is recommenced.

          (c) If, during the term of this Management Agreement, the Gaming
Facility is damaged by casualty or other occurrence to the extent, as reasonably
determined by Lakes, that either Class II or Class III Gaming cannot be
conducted at the Gaming Facility, Lakes shall elect to:

               (i) retain Lakes' interest in this Management Agreement pending
          repair or reconstruction of the Gaming Facility, suspend all gaming
          operations pending the repair or reconstruction of the Gaming Facility
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming can be conducted at the Gaming Facility
          or the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and arrange for such repair or reconstruction in the
          manner described in this Section 6.6; or

               (ii) terminate this Management Agreement, such termination to be
          effective on the sixtieth (60th) day after written notice of
          termination shall have been delivered to Pawnee.

          Lakes shall give Pawnee written notice of Lakes' election under
subsection within sixty (60) days after such casualty or occurrence.

          (d) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6(c)(i) above, Pawnee shall be obligated to make such
repairs or reconstruction as the Lakes shall reasonably determine should be made
to the Project Facilities (to the extent that insurance proceeds are available
or as otherwise mutually agreed by Pawnee and Lakes), and Lakes shall promptly
verify the amount of insurance proceeds available to pay the cost of repair or
reconstruction. If the Lakes elects to retain its interests under Section
6.6(c)(i) above, Lakes is hereby granted the authority to submit, adjust and
settle, on behalf of Pawnee, all insurance claims associated with the casualty
or occurrence; provided, however, that Lakes shall obtain Pawnee's prior written
consent (which consent shall not be unreasonably withheld) to any settlement.
Lakes shall provide copies of all settlement documents to Pawnee. If the Lakes
does not elect to retain its interest under Section 6.6(c)(i) above and if
Pawnee's obligations under the Transaction Documents are not yet satisfied,
then: (a) Pawnee shall have the authority to submit, adjust and settle all
insurance claims provided that any final settlement shall be with the prior
written consent of Lakes which will not be unreasonably withheld, and Pawnee
shall provide copies of all settlement documents to the Lakes; (b) to the extent
economically feasible (as defined in Section 6.4(b), Pawnee shall have the


                                      -31-

<PAGE>

obligation to continue to operate and maintain the Project Facilities and
Project in accordance with reasonable industry standards, and as to any portions
of the project Facilities and the Enterprise that are no longer economically
feasible to operate, Pawnee and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such liquidation proceeds shall be excluded from Net Total Revenues for purposes
of calculating the management compensation of any Replacement whether under
Section 5.5(b) hereof or otherwise; (c) Pawnee shall repair and reconstruct such
operations that were damaged and are to be continued; and (d) any excess
insurance proceeds that are not used to repair and reconstruct the applicable
damaged Project assets shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided however that such excess proceeds shall be excluded
from Net Total Revenues for purposes of calculating the management compensation
of any Replacement whether under Section 5.5(b) hereof or otherwise.

          (e) If Lakes elects to terminate this Management Agreement under this
Section 6.6, the provisions of Section 6.4 above shall apply.

     6.7 Renewal Option.

          The parties by mutual agreement may decide to renew or extend the
Management Agreement of this Management Agreement. Any such renewal or extension
shall only become effective upon approval by the NIGC and appropriate licensing
by the Gaming Commission.

     6.8 Buy-out Option.

          Following thirty-six (36) months of continuous operation of the
Project's gaming operations by Lakes, Pawnee shall have the option to buy out
the Lakes' remaining rights under this Management Agreement for an amount equal
to the present value, using a discount rate which is the greater of (i) two
percent (2%) above the prime interest rate of Chase Manhattan Bank U.S.A., N.A.
(or any successor bank) or (ii) or the same rate for the financing provided by
any third party lender for the development, construction and equipping of the
Project Facilities of the Remaining Management Fees (as hereinafter defined).
The term "Remaining Management Fees" shall mean the total monthly compensation
which would have been payable to Lakes under Section 5.5(b) hereof for the
balance of the term of this Agreement, assuming that such monthly compensation
would be the average of the compensation paid to Lakes during the most recent
operating twelve months prior to such buy out. Notwithstanding the foregoing,
Pawnee buy-out option rights may only be exercised after the first four years of
the Project's gaming operations if 200 or more gaming devices are installed in
the Gaming Facility.

     6.9 Cumulative Remedies.

          All rights or remedies of either Pawnee or Lakes under this Management
Agreement or any other Transaction Documents shall be cumulative and may be
exercised singularly in any


                                      -32-

<PAGE>

order or concurrently, at such party's respective option, and the exerciser or
enforcement of any such right or remedy shall neither be a condition to nor bar
to the exercise or enforcement of any other right or remedy.

                                    ARTICLE 7
                              RELEASE AND INDEMNITY

     7.1 Third-Party Claims. Except for claims resulting from the other party's
own gross negligence or willful or criminal misconduct, neither party shall be
entitled to recover from, and expressly releases, the other party, its agents,
directors, officers and employees, from or for any third-party damages, claims,
causes of action, losses and/or expenses of whatever kind or nature, including
attorneys' fees and expenses incurred in defending such claims in connection
with the lawful operation of the Project Facilities and Project in accordance
with the terms of this Management Agreement; and such claims, damages, losses or
expenses shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending on the circumstances and nature of the claim,
payable from the bank accounts established pursuant to Section 2.8(a) hereof.

     7.2 Indemnity from Lakes. Notwithstanding Section 7.1, Lakes shall
indemnify and hold Pawnee, its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Lakes, its officers and directors in connection with
Lakes' performance of this Management Agreement, and no such damages, losses or
expenses shall be paid from the bank accounts established pursuant to Section
2.8 (a) hereof, nor shall such losses or expenses be considered Costs of Gaming
Operations or Costs of Ancillary Operations.

     7.3 Indemnity from Pawnee. Notwithstanding Section 7.1, Pawnee shall upon
request indemnify and hold Lakes, its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Pawnee, its officers, directors, or tribal government
employees, in connection with the Pawnee's performance of this Management
Agreement, and no such damages, losses or expenses shall be considered Costs of
Gaming Operations or Costs of Ancillary Operations.

     7.4 Indemnity Against Unauthorized Debt and Liabilities. The parties
expressly agree that neither this Management Agreement nor its performance
creates or implies a partnership between the parties or authorizes either party
to act as agent for the other except to the extent expressly provided herein.
Lakes hereby agrees to indemnify and hold Pawnee harmless from any third-party
claims, actions and liabilities, including reasonable attorneys' fees on account
of obligations or debts of Lakes that Lakes is not authorized to undertake as
agent for Pawnee pursuant to the terms of this Management Agreement. Pawnee
likewise agrees to indemnify and hold Lakes harmless from any third-party
claims, actions and liabilities on account of any of the separate


                                      -33-

<PAGE>

obligations or debts of Pawnee, Pawnee TDC or Pawnee Nation that are not
authorized Costs of Gaming Operations or Costs of Ancillary Operations pursuant
to this Management Agreement.

     7.5 Indemnity Agreement. In connection with any indemnity obligations
hereunder, the parties agree they will comply with the terms and conditions set
forth in the Indemnity Agreement in a form agreed to by Pawnee and Lakes.

                                    ARTICLE 8
                               PARTIES IN INTEREST

     8.1 Payment of Fees and Submission of Information for Background
Investigations.

     Upon execution of this Management Agreement, Lakes shall pay the fees
required by federal and tribal regulations for background investigations for the
"Parties in Interest" as defined herein, and it shall submit the information
required by this Section in duplicate to the National Indian Gaming Commission
and the Gaming Commission and update such information at any time that changes
occur in prior submissions so as to allow complete background investigations. In
no event shall the cost of background investigations under this Section relating
to Gaming Commission regulations exceed $10,000 per individual without the
mutual consent of the parties, which consent shall not be unreasonably be
withheld.

          (a) As used in this Section 8.1, the term, "Parties in Interest"
includes any person or entity with a financial interest in, or having management
responsibility for, this Management Agreement or for which background
investigations are required by 25 C.F.R. Part 537, and any amendments thereto.

          (b) Lakes shall require sufficient information and identification from
each "Party in Interest" to perform a background investigation for the purpose
of determining the suitability of such persons for employment in a Class II
and/or Class III Gaming operation, including, at a minimum, the information
required by the National Indian Gaming Commission as set forth in 25 C.F.R. Part
537.

          (c) Without limiting the foregoing, Lakes shall obtain a current set
of fingerprints on each person for whom background investigations are required
by the Gaming Commission and the National Indian Gaming Commission, using forms
supplied by the National Indian Gaming Commission and/or the Gaming Commission,
which shall be referred to the Federal Bureau of Investigation (FBI) Fingerprint
Identification Division or other law enforcement agency designated by the Gaming
Commission.

          (d) The parties hereby agree that a listing of all "Parties in
Interest" as defined in Section 8.1 (a) above shall be submitted to the NIGC.
All such "Parties in Interest", as such listing shall be supplemented from time
to time, shall be required to furnish the information required by this Section
8.1 prior to obtaining such interest. All necessary Governmental Authorities
must


                                      -34-

<PAGE>

approve any change in the "Parties in Interest". Any change of a person listed
as a one of the "Parties in Interest" shall not constitute a change in persons
with a financial interest in or management responsibility for a management
contract.

     8.2 Removal; Divestiture. Should the Gaming Commission or the National
Indian Gaming Commission, by agency action, find that any individual with a
"direct or indirect financial interest" in this Management Agreement (as defined
in 25 C.F.R. Section 502.17, and any amendments thereto) whose prior activities,
criminal record, if any, or reputation, habits, and associations pose a threat
to the public interest, or the tribal interest, or the effective regulation of
gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices and methods and activities in the conduct of gaming or the carrying on
of related business and financial arrangements, or should such agency revoke the
license of such person, and should either agency notify Lakes or Pawnee of such
finding or revocation, then Lakes shall require such individual to divest his or
her interest in this Management Agreement and shall immediately remove such
person from all association with gaming operations under this Management
Agreement upon receipt of such notice, provided that any individual subject to
such removal/divesture shall be permitted to be revested and able to associate
with gaming operations in the event the agency action is reversed upon agency
administrative or judicial appeal. In addition, if any individual with "direct
or indirect financial interest" in this Management Agreement (as defined in 25
C.F.R. Section 502.17, and any amendments thereto): (a) has been or is
subsequently convicted of a felony relating to gaming, (b) knowingly or
willfully provided materially false statements to Pawnee, the Gaming Commission
or the National Indian Gaming Commission, or refused to respond to questions
from either of such agencies, or (c) attempts to unduly interfere or unduly
influence for his or her gain or advantage any decision or process of tribal
government relating to Class II and/or Class III Gaming and if Lakes becomes
aware of such conflicts or prohibited actions, then Lakes shall notify Pawnee of
such event and shall immediately take all necessary steps to cause such
individual to divest his or her interest in Lakes. Any disputed Gaming
Commission action potentially involving removal/divestiture of Lakes is subject
to the provisions of Article 10 and other applicable law or regulations.

                                    ARTICLE 9
                                  MISCELLANEOUS

     9.1 Assignment and Subcontractors. The rights and obligations under this
Management Agreement shall not be assigned or subcontracted by any party without
the prior written consent of the other party and without first obtaining prior
approval by the National Indian Gaming Commission or the BIA, if applicable, and
any other necessary regulatory approvals. However, Pawnee reserves the right to
assign its rights and obligations under this Management Agreement to a tribally
chartered entity that it wholly owns and controls, and the Lakes reserves the
right to assign its rights and obligations under this Management Agreement to a
wholly owned subsidiary provided that the original Lakes hereunder, or an
affiliated entity reasonably satisfactory to Pawnee, remains obligated hereunder
by means of a guaranty or other accommodation reasonably satisfactory to Pawnee,
and further provided that Lakes shall have received prior approval from the
National Indian Gaming Commission and any other necessary regulatory approvals.
Any assigning party engaging in a permitted assignment described above shall and
shall cause its assignee to


                                      -35-

<PAGE>

execute and deliver to the other party such assignment and assumption agreements
together with evidence of the due authorization, execution, delivery and
enforceability of such assignment documents as may be reasonably requested.
Other than as expressly provided herein or in Section 9.2 below, any attempted
assignment or subcontracting without such consent and approval shall be void.
Approval of any assignment or subcontract to any new party must be preceded by a
complete background investigation of the new party as required by Section 8.1.
Subject to the preceding requirements, this Management Agreement shall be
binding upon and shall inure to the benefit of the parties and their respective
successors and assigns.

     9.2 Change of Control in Ownership Interest. Any Change of Control (as
defined herein) in Lakes shall require prior written consent of Pawnee and be
subject to Legal Requirements, or this Management Agreement shall be terminated.
For purposes of this Management Agreement, a "Change of Control" means the
acquisition by any person or affiliated group of persons not presently members
of Lakes of beneficial ownership of 51% or more of membership interest in Lakes.

     9.3 Notices. Any notice, consent or any other communication permitted or
required by this Management Agreement shall be in writing and shall be effective
on the date sent and shall be delivered by personal service, via telecopier with
reasonable evidence of transmission, express delivery or by certified or
registered mail, postage prepaid, return receipt requested, and, until written
notice of a new address or addresses is given, shall be addressed as follows:

     If to the Tribe:   Pawnee Trading Post Gaming Corporation
                        871 Little D. Drive, Building 68
                        P.O. Box 280
                        Pawnee, OK 74058,
                        Attention: Chairman

     With a copy to:    David J. Ketelsleger, Esq.
                        McAfee & Taft
                        Two Leadership Square
                        Tenth Floor
                        211 North Robinson
                        Oklahoma City, OK 73102-7103

     If to the Lakes:   Lakes Pawnee Management, LLC
                        130 Cheshire Lane
                        Minnetonka, MN 55305
                        Attention: Timothy J. Cope

     With a copy to:    Kevin C. Quigley, Esq.
                        Johnson Hamilton Quigley Twait & Foley PLC
                        W1450 First National Bank Building
                        332 Minnesota Street


                                      -36-

<PAGE>

                        St. Paul, MN 55101-1314

       and              Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140

     Copies of any notices shall be given to the Gaming Commission.

     9.4 Amendments. This Management Agreement may be amended only by written
instrument duly executed by all of the parties hereto and with any and all
necessary regulatory approvals previously obtained.

     9.5 Counterparts. This Management Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one and the same agreement.

     9.6 Force Majeure. No party shall be in default in performance due
hereunder if such failure or performance is due to causes beyond its reasonable
control, including acts of God, war, terrorism, fires, floods, or accidents
causing damage to or destruction of the Project Facilities or property necessary
to operate the Facility, or any other causes, contingencies, or circumstances
not subject to its reasonable control which prevent or hinder performance of
this Management Agreement; provided, however, that the foregoing shall not
excuse any obligations of Pawnee or its Affiliates to make monetary payments to
Lakes as and when required hereunder or in any related document or agreement.

     9.7 Time is Material. The parties agree that time is of the essence and the
time and schedule requirements set forth in this Management Agreement are
material terms of this Management Agreement.

     9.8 Further Assurances. The parties hereto agree to do all acts and deliver
necessary documents as shall from time to time be reasonably required to carry
out the terms and provisions of this Management Agreement.

     9.9 Severability. In the event that any provision of this Management
Agreement is, by final order of a court of competent jurisdiction or Government
Authority, held to be illegal or void, the validity of the remaining portions of
the Management Agreement shall be enforced as if the Management Agreement did
not contain such illegal or void clauses or provisions, and the parties shall
use their best efforts to negotiate an amendment to this Management Agreement
which will comply with the judicial order and maintain the originally
contemplated rights, duties and obligations of the parties hereunder.

     9.10 Sovereign Immunity. Except for the Resolution of Limited Waiver
attached hereto


                                      -37-

<PAGE>

as EXHIBIT B and incorporated herein by reference, nothing in this Management
Agreement shall be deemed or construed to constitute a waiver of sovereign
immunity of Pawnee and the only applicable waivers of sovereign immunity shall
be those expressly provided and executed by the Pawnees duly authorized
representative and substantially conforming to the form as approved by the
parties. The parties agree that they will not amend or alter the Resolution of
Limited Waiver which will in any way lessen the rights of any party as set forth
in the Resolution of Limited Waiver, including without limitation the covenant
therein of Pawnee to preserve its effective terms in the event of future changes
in its legal status or governance. This Section 9.10 shall survive termination
of this Management Agreement, regardless of the reason for the termination.

     9.11 Representations and Warranties of Lakes. The Lakes hereby represents
and warrants as follows:

          (a) This Management Agreement and all other agreements contemplated
     hereby have been duly authorized, executed and delivered by Lakes and, when
     approved by necessary Governmental Authorities as set forth (where
     applicable), will constitute a valid and binding obligation, enforceable
     against Lakes in accordance with its terms.

          (b) The execution and delivery of this Management Agreement and all
     other agreements contemplated hereby, the performance by Lakes of its
     obligations hereunder or thereunder and the consummation by Lakes of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Lakes or any of its affiliated companies is a party or any law,
     regulation, rule or ordinance or any order, judgment or decree of any
     federal, state, tribal or local court or require any regulatory approval
     beyond those contemplated herein.

          (c) Lakes has the full legal right, power and authority and has taken
     all action necessary to enter into this Management Agreement, to perform
     its obligations hereunder, and to consummate all other transactions
     contemplated by this Management Agreement.

     9.12 Representations and Warranties of Pawnee. Pawnee hereby represents and
warrants as follows:

          (a) Pawnee is a wholly-owned subsidiary of Pawnee TDC, established to
     own and operate the Project Facilities and the Project. Pawnee and Pawnee
     TDC are created under the laws of and are governmental instruments of the
     Pawnee Nation, a duly organized and recognized Indian tribe under the laws
     of Pawnee Nation and the United States.

          (b) Pawnee has full legal right, power and authority under the laws
     for the Pawnee Nation and has taken all official action necessary (i) to
     enter into this Management Agreement and authorize Pawnee to execute and
     deliver this Management Agreement, the Operating Note, Dominion Account
     Agreement, Security Agreement, Indemnity Agreement and any and all other
     documents and agreements related thereto or contemplated thereby
     (collectively, the "Transaction Documents"), (ii) to perform its
     obligations hereunder and


                                      -38-

<PAGE>

     thereunder, and (iii) to consummate all other transactions contemplated by
     this Management Agreement and the other Transaction Documents.

          (c) This Management Agreement, the Operating Note, and the other
     Transaction Documents, when executed and delivered by Pawnee and approved
     by necessary Governmental Authorities, will constitute a valid, binding and
     perfected obligations, enforceable against Pawnee in accordance with their
     terms.

          (d) The execution and delivery of this Management Agreement, the
     Operating Note, and the other Transaction Documents, the performance by
     Pawnee of its obligations hereunder and the consummation by Pawnee of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Pawnee, Pawnee TDC or Pawnee Nation is a party, law, regulation,
     rule or ordinance or any order judgment or decree of any federal, state,
     tribal or local court, or require any approval by Governmental Authorities
     beyond those contemplated herein.

          (e) Neither Lakes, the Project, the Project Facilities nor the
     transaction(s) between the parties contemplated by this Management
     Agreement, the Operating Note, and any related security documents and
     instruments described herein are now, or at any time during the term of
     this Management Agreement will be, subject to any tribal tax of any sort
     other than (i) reasonable pass-through taxes on Project patron which are
     consistent with gaming resort industry practices, and (ii) the fees and
     assessments described in the definition of "Costs of Operations."

          (f) The Pawnee Nation is legally permitted to conduct Class II Gaming
     (and Class III Gaming in the event of a Compact) activities in the State
     under all Legal Requirements, and the Gaming Facility Site for the Project
     constitutes "Indian lands" upon which the Pawnee Nation may legally conduct
     gaming under IGRA.

          (g) None of Pawnee, Pawnee TDC, Pawnee Nation or any of their
     Affiliates has enacted any law, ordinance, rule or regulation impairing the
     rights or obligations of Pawnee or Lakes under this Management Agreement or
     under any Transaction Documents contemplated hereby.

          (h) Prior to the Commencement Date, and except as permitted by Section
     2.23 hereof, Pawnee will not cause or voluntarily permit any lien or
     encumbrance to be created on the Project Facilities or the Project's Gaming
     Facility Site.

          (i) The Pawnee Nation has entered into an agreement with Lakes or its
     Affiliate that all gaming and related project facilities will be owned and
     operated by Pawnee or another subsidiary of Pawnee TDC and granting Lakes
     or its Affiliate the first right of refusal to manage any gaming projects
     owned and operated by Pawnee or another subsidiary of Pawnee TDC under the
     same terms and conditions described in this Management Agreement, and the
     agreement shall contain representations, warranties and covenants
     substantially similar to those contained in Articles 9 and 10 hereof
     insofar as applicable.


                                      -39-

<PAGE>

     9.13 Governing Law. This Management Agreement has been negotiated, made and
executed at Pawnee's office located in the State of Oklahoma and shall be
governed by and construed in accordance with the laws of the State of Oklahoma,
without regard to its conflict of laws provisions, and applicable federal laws.

     9.14 Entire Agreement. This Management Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all prior
agreements relating to management of gaming and ancillary operations conducted
by Pawnee at the Project Facilities.

     9.15 Representatives of Pawnee. Pawnee shall furnish to Lakes a list of the
authorized representatives who are empowered to act on behalf of Pawnee for the
purposes of this Management Agreement and Pawnee shall keep such list current.
Pawnee hereby acknowledges and agrees that to the extent any authorization,
consent or other approval of Pawnee is required under this Management Agreement
or any related Transaction Documents and Pawnee shall provide to Lakes a
resolution naming any individual or individuals authorized to represent the
Pawnee for purposes or for the purpose of the operation and performance of
Management Agreement and related Transaction Documents, then Lakes shall be
entitled to rely on all decisions, authorizations, consents, and approvals
provided by such individual or individuals, as applicable, until such time as
Pawnee shall deliver to Lakes an additional tribal resolution revoking or
otherwise modifying such authority.

     9.16 Limitations of Liability. Lakes expressly agrees that Pawnee's total
aggregate liability for damages for breach of the Management Agreement shall be
limited in accordance with the Resolution of Limited Waiver attached hereto as
EXHIBIT B and incorporated herein by reference. Pawnee shall bear no liability
for further damages.

     9.17 Approvals. Unless otherwise provided herein, all approvals or consents
required by either party hereunder shall not be unreasonably withheld or
delayed. Unless otherwise provided herein, approval by Pawnee's Board of
Directors or its duly authorized representative(s) shall be deemed to constitute
approval by Pawnee and approval by the Chief Executive Officer of the Lakes
shall be deemed to constitute approval by the Lakes.

     9.18 Best Efforts. Except as otherwise provided herein, Lakes and Pawnee
shall use their best efforts to perform and fulfill their obligations under this
Management Agreement in the manner required by this Management Agreement.

     9.19 Request for NIGC Approval. The parties specifically request that the
NIGC, or the Secretary where appropriate, approve this Management Agreement and
the other Transaction Documents, if required, or declare that such approval is
not required.

     9.20 Non-disclosure. The parties agree not to divulge to third parties the
terms of this Management Agreement or any other proprietary or confidential
information exchanged between the parties pursuant to this Management Agreement,
unless (i) the information is required to be disclosed pursuant to judicial
order or Legal Requirements, (ii) the information is at the time of


                                      -40-

<PAGE>

disclosure already in the public domain, or (iii) to the extent required in
order to obtain financing. This prohibition shall not apply to disclosures by
either party to their attorneys, accountants, or other professional advisers. In
situations where disclosure of the terms of this Management Agreement to
regulatory, governmental or judicial entities is required by law or regulations,
the parties will make reasonable efforts to secure confidential treatment of the
economic terms of this Management Agreement by such entities; provided, however,
this disclosure restriction shall not prohibit Lakes making any SEC filings it
deems legally necessary. The parties agree to consult with each other and
cooperate regarding any press releases regarding this Management Agreement and
the relationships described herein.

     9.21 Other Business Opportunities. During the term of this Management
Agreement, or until Lakes is repaid in full on the Operating Note, whichever is
later, Pawnee agrees that, subject to all Legal Requirements, Pawnee may pursue
other commercial, gaming and economic development opportunities in the State;
provided it grants to Lakes the right of first refusal to participate with
Pawnee upon the terms and conditions proposed by Pawnee, with prompt response by
Lakes required, but in no event later than thirty (30) days after written notice
from Pawnee. In the event that Lakes declines to participate with Pawnee upon
such terms and conditions, Pawnee shall have the right to pursue such
opportunity but may not offer to an unrelated third party terms and conditions
more favorable than those offered to Lakes. If Pawnee does not enter into a
signed agreement with such unrelated third party regarding the other commercial,
gaming and economic development opportunity which has been declined by Lakes
within one (1) year of such declination, then Lakes' right of first refusal
granted herein is reinstated for that opportunity.

     9.22 Use of Trade Marks and Trade Names. To assure that Pawnee can continue
operation of the Project Facilities without disruption in the event that this
Management Agreement is terminated or not renewed, Lakes agrees that it will not
use any trade mark or trade name to identify any portion of the Project
Facilities or services offered within the Project Facilities unless such trade
mark or trade name is registered in the name of Pawnee.

     9.23 Recitals. The recitals at the beginning of this Management Agreement
are true and are incorporated by reference herein.

     9.24 Non-Competition. Lakes agrees that, during the term of this Management
Agreement, it will not finance, manage, or consult in connection with any
facility where Gaming Operations are or will be conducted within a radius of
twenty-five (25) miles from the Gaming Facility Site without the prior written
consent of Pawnee. Pawnee agrees that, during the term of this Management
Agreement, neither it nor its Affiliates will solicit or enter into any
negotiations or agreements with any person or company with respect to any Gaming
Operations to be conducted within twenty-five (25) miles of the Gaming Facility
Site, nor conduct any Gaming Operations within twenty-five (25) miles of the
Gaming Facility Site, without the prior written consent of Lakes.

                                   ARTICLE 10


                                      -41-

<PAGE>

                               DISPUTE RESOLUTION

     10.1 Disputes Between the Enterprise and Patrons. Disputes that arise
between the Project and any patron of the Project Facilities shall be resolved
in accordance with the Tribal-State Compact and tribal ordinances, if
applicable.

     10.2 Disputes Between the Project and Project Employees. Pawnee and Lakes
shall jointly develop an employee dispute resolution policy, and Lakes, as agent
of Pawnee, shall ensure that the Project's general manager shall implement and
administer the employee dispute resolution policy after its adoption.

     10.3 Disputes Between Pawnee and Lakes. Disputes between Pawnee and Lakes
with respect to this Management Agreement, the Operating Note, or any other
Transaction Documents, or a party's performance hereunder or thereunder, shall
be resolved by the following dispute resolution process and pursuant to the
Resolution of Limited Waiver attached hereto as Exhibit B.

     (a) The parties shall use their best efforts to settle the dispute. To this
effect, they shall consult and negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties.

     (b) If the parties do not reach such solution within a period of ten (10)
days, then, upon notice by either party to the other, all disputes shall be
settled by arbitration administered by the American Arbitration Association in
accordance with the provisions of its Commercial Arbitration Rules in effect at
the time of submission; except that: (a) the question whether or not a dispute
is arbitrable shall be a matter for binding arbitration by the arbitrators, such
question shall not be determined by any court and, in determining any such
question, all doubts shall be resolved in favor of arbitrability; and (b)
discovery shall be permitted in accordance with the Federal Rules of Civil
Procedure, subject to supervision as to scope and appropriateness by the
arbitrators. Unless the parties otherwise agree to in writing, arbitration
proceedings shall be held in Oklahoma City, Oklahoma.

     (c) The arbitration proceedings shall be conducted before a panel of three
neutral arbitrators, all of whom shall be currently licensed attorneys, actively
engaged in the practice of law for at least ten (10) years, one of which shall
have five (5) years of experience in federal Indian law, and one of which shall
have five (5) years of experience in the gaming industry. The arbitrator
selected by the claimant and the arbitrator selected by respondent shall, within
ten (10) days of their appointment, select a third neutral arbitrator. In the
event that they are unable to do so, the parties or their attorneys may request
the American Arbitration Association to appoint the third neutral arbitrator.
Prior to the commencement of hearings, each of the arbitrators appointed shall
provide an oath or undertaking of impartiality. Pawnee further agrees that any
arbitration proceeding held in connection with any dispute with respect to the
this Management Agreement, the Operating Note, or any other Transaction Document
may be consolidated with any other arbitration proceeding involving Lakes or its
Affiliates and any of Pawnee's Affiliates.


                                      -42-

<PAGE>

     (d) The arbitration award shall be in writing signed by each of the
arbitrators, and shall state the basis for the award. The arbitration award
shall be set forth in reasonable detail as to its findings of fact and law, and
basis of determination of award form and amount. In connection with any
arbitration award, the arbitrators shall be empowered to take the actions and
enforce the judicial remedies described in Paragraph 5 of the Resolution of
Limited Waiver; provided however, that although the arbitrators may award
damages in the event Pawnee or the Gaming Commission do not to comply with the
award, the arbitrators may not require Pawnee or the Gaming Commission to take
or modify any governmental legislative decision or action which the arbitrators
have determined has resulted in the dispute between the parties and is contrary
to the parties rights, liabilities or obligations under this Management
Agreement, the Operating Note, or any other Transaction Document ("Specific
Performance Restriction"). Provided further, that: (a) should the arbitrators
determine that there has been an intentional bad faith violation of a party's
rights under this Management Agreement or any other Transaction Documents by
Pawnee or Gaming Commission, and if Pawnee or the Gaming Commission do not
reverse such intentional bad faith violation through governmental legislative
decision or action within thirty (30) days after the being notified by the
arbitrators of such determination, then the arbitrators shall award one-and-half
(1 1/2 ) times damages to Lakes for damages suffered as a consequence of
Pawnee's or Gaming Commission's intentional bad faith violation; and (b) such
Specific Performance Restriction shall not prevent Lakes from enforcing the
Operating Note, the Security Agreement, the Dominion Account Agreement, nor from
realizing on collateral encumbered thereby.

     (e) Except to the extent such enforcement will be inconsistent with a
specific provision of this Agreement, arbitration awards made pursuant to this
Article 10 shall be enforceable in federal court under Title 9 of the United
States Code and any applicable tribal, federal or state law governing the
enforcement of arbitration awards. In addition to any basis for appeal of an
arbitration award stated in Title 9 of the United States Code or any applicable
law governing the enforcement of arbitration awards, either party hereto may
appeal an arbitration award on the basis that the arbitrator or arbitrators
incorrectly decided a question of law in making the award, or the award was made
in an arbitrary or capricious manner or in manifest disregard of the factual
evidence.

     (f) Either party hereto, without having to exhaust any tribal remedies
first, shall have the right to seek and obtain a court order from a court having
jurisdiction over the parties requiring that the circumstances specified in the
order be maintained pending completion of the arbitration proceedings, to the
extent permitted by applicable law.

     (g) Judgment on any arbitration award may be entered in any court having
jurisdiction over the parties. The arbitrators shall not have the power to award
punitive, exemplary or consequential damages, or any damages excluded by or in
excess of any damage limitations expressed in this Agreement.

     (h) Pawnee hereby expressly waives, and also waives its right to assert,
sovereign immunity and any and all defenses based thereon with respect to
Claims; and Pawnee hereby


                                      -43-

<PAGE>

consent to (i) binding arbitration under the Commercial Arbitration Rules of the
American Arbitration Association, and (ii) judicial proceedings in or before the
United States District Court for the Northern District of Oklahoma, or if that
court determines it is without jurisdiction, then to the courts of the State of
Oklahoma and all courts to which an appeal therefrom may be available, but
solely to compel, enforce, modify or vacate any arbitration award.

     (i) To the extent lawful in connection with any such dispute, Pawnee
expressly waives the application of the doctrines of exhaustion of tribal
remedies or comity that might otherwise require that a claim be heard first in
tribal court or other tribal forum of Pawnee Nation.

     (j) The parties agree that: (1) in the event that a dispute submitted to
arbitration under this section involves the right of Lakes to continue to
receive compensation under Section 5.5 hereof, or (2) in the event that Lakes
appeals an agency decision under Section 8.2 for removal/divestiture, then any
compensation which is asserted to be due to Lakes during such dispute shall, if
not paid to Lakes, be deposited into an interest bearing escrow account with the
entity that is designated as the "Depository" under the Dominion Account
Agreement and Lakes shall be granted a security interest in said escrow account
which interest is contingent, as follows: such escrow funds shall be released to
Lakes upon an arbitration award being issued in its favor or on the date the
agency action under Section 8.2 is reversed by agency administrative or judicial
appeal; provided that upon final conclusion of such arbitration or agency
administrative or judicial appeal, any portion of such escrowed funds not
expressly awarded to Lakes shall be immediately released unconditionally to
Pawnee.

        [Rest of page left blank intentionally; signature page to follow]


                                      -44-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Management Agreement
as of the above written date.

Pawnee Trading Post Gaming Corporation   Lakes Pawnee Management, LLC


By: /s/ Monty Matlock                    By: /s/ Timothy J. Cope
    ----------------------------------       -----------------------------------
Name: Monty Matlock                      Timothy J. Cope
      --------------------------------   Its: President & Chief Financial
Its: Chairman                                 Officer
     ---------------------------------


ATTEST:


By: /s/ Leslie Hand
    ----------------------------------
Name: Leslie Hand
      --------------------------------
Its: President
     ---------------------------------


Approved pursuant to 25 U.S.C. Section
2711

National Indian Gaming Commission


By: /s/ Philip N. Hogen
    ----------------------------------
Print Name: Philip N. Hogen
Its Chairman


                                      -45-

<PAGE>

                                LIST OF EXHIBITS

Exhibit A Legal Description of Gaming Facility Site

Exhibit B Resolution of Limited Waiver of Immunity from Suit


                                      -46-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.92
<SEQUENCE>27
<FILENAME>c92713exv10w92.txt
<DESCRIPTION>OPERATING NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.92

                                 OPERATING NOTE
                                                           Minnetonka, Minnesota
                                                                January 12, 2005

     FOR VALUE RECEIVED, PAWNEE TRADING POST GAMING CORPORATION ("MAKER"), A
WHOLLY OWNED SUBSIDIARY OF THE PAWNEE TRIBAL DEVELOPMENT CORPORATION, EACH
CREATED UNDER THE CONSTITUTION OF AND A GOVERNMENTAL SUBDIVISION OF THE PAWNEE
NATION OF OKLAHOMA, A FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the
order of LAKES PAWNEE MANAGEMENT, LLC, A MINNESOTA LIMITED LIABILITY COMPANY
("LENDER"), in the United States of America, in immediately available funds, at
such place as the holder hereof may from time to time designate, or in the
absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the principal sum of the aggregate unpaid principal
amount of all "Guaranteed Minimum Payment Advances" and "Working Capital
Advances" made to Maker pursuant to Sections 5.3(b) and 5.7, respectively, of
the Management Agreement for a Gaming Facility and Related Ancillary Facilities
dated January 12, 2005 entered into between the Maker and Lender (the
"Management Contract"), plus interest on any Working Capital Advances from the
date of such advances, in like money, in accordance with the following terms and
provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Management Contract.

     2. Interest. No interest shall accrue on any Minimum Guaranteed Payment
Advances. Each Working Capital Advance as and when made pursuant to the terms of
the Amended Memorandum Agreement shall bear interest at the Interest Rate, as
described herein, from and including the date the proceeds of such Working
Capital Advance are advanced (such date the "Funding Date" of such Advance)
through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be a Limited Recourse obligation, as defined in
the Management Contract, and secured by the real and personal property described
therein. Principal and interest, as applicable, on each Minimum Guaranteed
Payment Advance and Working Capital Advance (each an "Advance") shall be repaid
in accordance with the terms and provisions set forth in the Management
Contract. The Maker shall have the right to prepay all or any part of this
Operating Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity. In the event that the term of the Management Contract is
tolled under Section 6.6 thereof, Maker's obligation to make the monthly
installment payment hereunder shall be likewise tolled until the tolling under
Section 6.6 ceases (except to the extent that the Project shall receive any
business interruption insurance proceeds in connection with tolling under
Section 6.6, in which case Maker's obligation to make monthly installment
payments shall not be tolled).

     4. Interest Rate. The Interest Rate means an interest rate equal to the
greater of the prime rate of Chase Manhattan Bank, N.A. (or any successor Bank
by acquisition or merger) plus two percent (2%) per annum or the same rate as
the financing provided by any third party lender for


                                      -1-

<PAGE>

the development, construction and equipping of the Project Facilities in place
at the time of the advance, fixed as of the first business day of each calendar
month. Interest at the foregoing rate shall accrue and shall be payable as a
Limited Recourse obligation as provided in the Management Contract. Interest
shall be computed for the actual number of days elapsed on the basis of a year
consisting of 360 days. It is intended that the rate of interest hereon shall
never exceed the maximum rate, if any, which may be legally charged on the Loan
evidenced by this Operating Note ("Maximum Rate"), and if the provisions for
interest contained in this Operating Note would result in a rate higher than the
Maximum Rate, interest shall nevertheless be limited to the Maximum Rate and any
amounts which may be paid toward interest in excess of the Maximum Rate shall be
applied to the reduction of principal, or, at the lawfully exercised option of
the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books all Advances made to the Maker and all payments of principal amounts and
interest in respect of such Advances, which shall be presumptive evidence as to
the outstanding principal amount of all Advances; provided, however, that the
failure to make such notation with respect to any Advance or payments shall not
limit or otherwise affect the obligations of Maker.

     6. Default; Acceleration. If any Event of Default occurs, then the
outstanding principal amount of this Operating Note, any interest accrued
thereon from time to time, and any other sums then remaining unpaid hereunder,
at the option of the holder hereof and without notice, shall become immediately
due and payable and Lender may exercise any other rights or remedies available
under any Transaction Documents or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Operating Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  A material default by Maker in the performance by Maker of any of its
          covenants or commitments under the Management Contract or any
          Transaction Document or under any other agreement entered into with or
          in favor of Lender or any Affiliate of Lender, or a material default
          by Maker's Affiliate under any agreement executed by an Affiliate of
          Maker in favor of Lender or any Affiliate of Lender which default is
          not cured by Maker or its Affiliate as applicable within the
          applicable cure period thereunder after written notice of default is
          delivered to Maker or its Affiliate; provided, however, that if the
          nature of such default (but specifically excluding defaults curable by
          the payment of money) is such that it is not possible to cure such
          default within the cure period, such period shall be extended for so
          long as the


                                      -2-

<PAGE>

          breaching party shall be using diligent efforts to effect a cure
          thereof but no more than an additional sixty (60) days; or

     (d)  The Management Contract shall be terminated by either the Maker or the
          Lender; or

     (e)  Any representation or warranty given to the Lender by the Maker (or
          any of its representatives) in connection with entering into the
          Management Contract or the other Transaction Documents and/or any
          borrowing thereunder, or given by an Affiliate of Maker in connection
          with any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, or required to be furnished under
          the terms thereof, shall prove untrue or misleading in any material
          respect (as determined by the Lender in the exercise of its reasonable
          judgment) as of the time when given or shall fail to be true and
          correct in all material respects at any time during the term of the
          agreement; or

     (f)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or

     (g)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing or shall be insolvent.

     7. Security. This Operating Note shall be secured by a security interest
the Collateral granted by Maker to Lender pursuant to the Management Contract
and the other Transaction Documents, including the Dominion Account Agreement.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Operating Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Operating Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no


                                      -3-

<PAGE>

event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS OPERATING NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Operating Note.

     12. Applicable Law. This Operating Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Operating Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Operating Note is found by
a court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Operating Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this
Operating Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Operating Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Operating Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Operating Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Operating Note.

     16. Successors and Assigns. This Operating Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Operating Note.


                                      -4-

<PAGE>

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 9.3 of the Management Contract.

     18. Dispute Resolution/Limited Waiver of Sovereign Immunity. Maker and
Lender expressly agree that any dispute in connection with this Operating Note
shall be subject to the dispute resolution procedures and the limited waiver of
sovereign immunity contained in the Management Contract and the Resolution of
Limited Waiver attached thereto as Exhibit B, the terms of which are hereby
incorporated by reference thereto.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                      -5-

<PAGE>

IN WITNESS WHEREOF, Maker has caused this Operating Note to be executed under
seal and delivered as of the date first above written.

                                        MAKER:

                                        PAWNEE TRADING POST GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        ATTEST:


                                        By: /s/ Tommie Briggs
                                            ------------------------------------
                                        Name: Tommie Briggs
                                              ----------------------------------
                                        Title: Treasurer
                                               ---------------------------------

              [Signature page to Pawnee Trading Post Operating Note
                    in favor of Lakes Pawnee Management, LLC]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.93
<SEQUENCE>28
<FILENAME>c92713exv10w93.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.93

                           DOMINION ACCOUNT AGREEMENT
                               (Lakes Management)
                               (Trading Post Site)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 12, 2005 (the "Effective Date'"), between Pawnee Trading Post Gaming
Corporation ("Pawnee") (and sometimes hereinafter referred to as the
"Borrower"), a wholly owned subsidiary of the Pawnee Tribal Development
Corporation ("Pawnee TDC"), each created under the Constitution of and a
governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee Nation"), a
federally recognized Indian tribe, located in the State of Oklahoma, whose
business office is located at 871 Little D. Drive, Building 68, P.O. Box 28,
Pawnee, OK 74058, and Lakes Pawnee Management, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes"), whose business office is
located at 130 Cheshire Lane, Minnetonka, Minnesota 55305, and when it has
executed a counterpart signature page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is created under the Constitution of and a
governmental subdivision of the Pawnee Nation, a federally recognized Indian
tribe eligible for the special programs and services provided by the United
States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     WHEREAS, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation; and Pawnee TDC has established Pawnee as a legal entity which will own
and operate specified gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     WHEREAS, Lakes has entered into an agreement with Pawnee dated January 12,
2005 ("Management Contract"), pursuant to which Lakes is to manage the Project's
Gaming Facility and related Ancillary Facilities owned by Pawnee.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of Gross Total Revenues
derived by the Borrower with respect to the Project (as set forth in the
Management Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Management Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Management
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean (i) all loans, compensation, fees, expenses and
other amounts owing by (a) Borrower to Lakes or its Affiliates under or with
respect to the Operating Note, and each of the other Transaction Documents (as
each of such terms are defined in the Management Contract), and (b) the Pawnee
Nation and/or Pawnee TDC to Lakes or its Affiliates under or with respect to the
Tribal Agreement or any other document or agreement executed in favor of Lakes
or its Affiliates by Pawnee Nation or Pawnee TDC in connection with the Project,
each of the foregoing, whether now existing or hereafter incurred or arising,
and (ii) together with any costs, expenses or other amounts hereafter owing by
the Borrower to Agent or Lakes pursuant to the terms of this Agreement, each of
the foregoing, whether now existing or hereafter incurred or arising.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.


                                                                          Page 2

<PAGE>

     "Project" shall have the meaning assigned to such term in the Management
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the Gross Total Revenues (as such term is
defined in the Management Contract) of the Project, including without limitation
credit card receivables and other accounts receivable related to the Project.

            "Permitted Liens" shall mean: (i) all security interests and liens
granted by Borrower in favor of Lakes under the terms of the Management Contract
or any related Transaction Documents; and (ii) such other liens and security
interests as Lakes may consent to in writing.

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Notwithstanding
any other term or provision contained herein or in the Management Contract, only
Lakes shall have the authority to make withdrawals from or exercise any other
rights with respect to Project Dominion Account; provided that upon written
notice to the Agent, Lakes may grant the Borrower the right (which may be
subsequently revoked by Lakes at any time) to make withdrawals and transfers
from the Project Dominion Account subject to any conditions set forth in such
notice. Agent hereby acknowledges the security interest in the Collateral
granted to Lakes by Borrower. On the date of execution of this Agreement, the
Borrower shall cause to be delivered to Lakes (a) such financing statements and
similar documents necessary to perfect the security interest granted to Lakes
pursuant to Section 3.1 hereof (the "Financing Statements") and (b) a legal
opinion in form and substance reasonably acceptable to Lakes, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by the Borrower, together with opinions as to the
Borrower's sovereign immunity waiver and noncontravention with laws and
agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct Lakes, any other manager of the Project, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be permitted provided the
collecting bank(s) execute and deliver the Joinder Agreement attached hereto as
Exhibit A with the Borrower, Lakes and the collecting banks in form mutually
acceptable to each of such parties), the Borrower shall transfer or cause to be
transferred all such Project Revenues or other Collateral, consisting of cash
and other collected funds directly by wire transfer of immediate available funds
to the Project Dominion Account on each Business Day. In the event that the
Borrower receives any payment that should have been deposited into


                                                                          Page 3

<PAGE>

the Project Dominion Account as provided pursuant to this Agreement, the
Borrower agrees that it will hold such amounts in trust for the benefit of
Lakes, and shall not commingle any such funds with any of its funds or other
property and shall immediately transfer such amounts to the Agent for deposit
into the Project Dominion Account. The Borrower agrees that the Agent's
officers, agents and employees are irrevocably authorized by it to endorse for
payment to the Agent any instruments received by the Agent for deposit into the
Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Subject to the terms
of this Agreement, Lakes acknowledges and agrees that during each calendar month
it shall make or permit such transfers from the Project Dominion Account to and
for the benefit of each of the Borrower and Lakes in such amounts and
priorities, for such purposes and as and when required pursuant to the terms of
Sections 2.8(b) and 5.5 of the Management Contract. Lakes further acknowledges
and agrees that transfers from the Project Dominion Account to Project Accounts
under Section 2.8(b) of the Management Contract and payment of the Minimum
Guaranteed Monthly Payment shall be timely made notwithstanding any provision of
this Dominion Agreement (except as otherwise provided under Section 5.2 hereof).
In connection with any such withdrawals and transfers and any other aspects of
the Project Dominion Account, the Agent shall acknowledge and comply with only
the withdrawal requests and other directions received from Lakes, except as
expressly provided in Section 2.2 above or pursuant to an arbitration award made
in an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges that when it shall release any funds from the Project Dominion
Account, then its security interest in such funds shall also be deemed to have
been released concurrently therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of any Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes itself and its Affiliates, subject only to Permitted Liens, of
all of the Borrower's right, title and interest in and


                                                                          Page 4

<PAGE>

to the Collateral. The Borrower represents and warrants that the Borrower is
(or, to the extent that the Collateral is acquired after the date hereof, will
be) the sole legal and beneficial owner of its respective Collateral and has
exclusive possession and control thereof; there are no security interests in,
liens, charges or encumbrances on, or adverse claims of title to, or any other
interest whatsoever in, such Collateral or any portion thereof except for
Permitted Liens; and that no financing statement, notice of lien, mortgage, deed
of trust or instrument similar in effect covering the Collateral or any portion
thereof or any proceeds thereof ("LIEN NOTICE") exists or is on file in any
public office, except as relates to Permitted Liens and except as may have been
filed in favor of Lakes relating to this Agreement or related agreements, or for
which duly executed termination statements have been delivered to Lakes for
filing. Without the prior written consent of Lakes, Borrower will not in any way
encumber, or hypothecate, or create or permit to exist, any lien, security
interest, charge or encumbrance or adverse claim upon or other interest in the
Collateral, except for Permitted Liens, and the Borrower will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein, except as expressly provided herein. The
Borrower will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or encumbrances permitted
by the Management Contract or any other Transaction Document or except as may
have been filed by or for the benefit of Lakes relating to this Security
Agreement or related agreements. The Borrower shall promptly notify Lakes of any
attachment or other legal process levied against any of the Collateral and any
information received by any Borrower relative to the Collateral, which may in
any material way affect the value of the Collateral or the rights and remedies
of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;


                                                                          Page 5

<PAGE>

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
and Lakes until such time as Lakes delivers a written notice to Agent and the
Borrower in accordance with Section 5.2 that Lakes is thereby exercising
exclusive control over the Project Dominion Account ("Notice of Exclusive
Control"), provided that the proceeds of any such investments are deposited in
or credited to the Project Dominion Account contemporaneously with such
transaction; and provided, further, such investment instructions shall not
affect the type or nature of Collateral for attachment and perfection purposes
under the Oklahoma Uniform Commercial Code (as may be amended from time to time)
or any other applicable law. After Agent receives the Notice of Exclusive
Control, it will immediately cease complying with any investment instructions
concerning Project Dominion Account originated by Borrower or its
representatives and shall comply with only such investment instructions as are
originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Management Contract has been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Management Contract.

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:


                                                                          Page 6

<PAGE>

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or LAKES may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach and
termination of the Management Contract, the Borrower will furnish the following
to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of the Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,
               shall be and remain subject to the provisions of Section 9.20 of
               the Management Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief


                                                                          Page 7

<PAGE>

               financial officer of the Borrower or an appropriate officer of
               the manager of the Project, substantially in the form set forth
               in Exhibit B stating that, except as explained in reasonable
               detail in such certificate, all Gross Total Revenues with respect
               to the Project has been deposited into the Project Dominion
               Account for the period covered by such financial statement. If
               such certificate discloses an exception to such certification,
               such certificate shall set forth what action the Borrower has
               taken or proposes to take with respect thereto.

     (d) Insurance. At such time as Lakes shall no longer be the Manager of the
Project, the Borrower shall cause to be maintained insurance as required by the
Management Contract and naming Lakes as an additional insured, loss payee and
mortgagee, if applicable. Upon request, the Borrower shall provide to the Agent
and Lakes certificates of insurance or copies of insurance policies evidencing
that such insurance satisfying the requirements of such Management Contract is
in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended for so long as the Borrower shall be using diligent efforts to
effect a cure thereof.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under the Operating Note and
shall have continued beyond any applicable grace or cure period.


                                                                          Page 8

<PAGE>

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower under
Section 5.5 of the Management Contract, and to apply the same towards the
repayment of the Obligations, and to endorse in the name of the Borrower any
checks, drafts, notes or other instruments or documents received in payment of
or on account of the Project Revenues or other Collateral; and any such proceeds
so received and prepaid shall be applied to installments of principal on the
Obligations in the inverse order of their maturity; and provided further that
Lakes may obtain any injunctive or other relief as is necessary for the
enforcement of this Agreement and the terms and provisions set forth herein, and
may exercise such other rights and remedies available by law or agreement;
PROVIDED, HOWEVER, that any and all obligations of Borrower and remedies of
Lakes shall be Limited Recourse and shall be subject to the limitations set
forth in the Resolution of Limited Waiver attached to the Management Contract;
and provided further that, notwithstanding any term or provision contained
herein, Lakes shall take all steps necessary to continue to permit and cause the
necessary withdrawals and transfers to be made from the Project Dominion Account
in accordance with Section 2.3 hereof, with the exception that Lakes shall be
entitled to retain all amounts otherwise payable to the Borrower under Section
6.5 (including any payments required to be made under Section 5.5(a)(i)) of the
Management Contract and apply the same towards the repayment of the Obligations;
and in no event shall Lakes exercise any remedy against the Borrower (excluding
other third parties) with respect to the Project Revenues other than such
remedies as are necessary to require their deposit into the Project Dominion
Account or seeking an accounting and turnover of any Project Revenues held in
trust by the Borrower as required under Section 2.2 hereof until such time that
the Borrower shall have ceased business operations at the Project, at which time
Lakes may exercise all rights and remedies under applicable law or by agreement
and apply all proceeds of the Collateral to the repayment of the Obligations.
Borrower agrees that, to the extent notice of sale shall be required by law with
respect to the disposition of any Collateral, at least ten (10) calendar days
notice to the Borrower of the time and place of any public sale or the time
after which a private sale is to be made shall constitute reasonable
notification. Lakes agrees that it shall withdraw and terminate any Notice of
Exclusive Control at such time that all outstanding Events of Default have been
cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and in exercising any such powers or
authority, the right to pay all expenses incurred in connection therewith,
including attorneys' fees. Borrower hereby agrees that it shall be bound by any
such payment made or incurred or act taken by Lakes hereunder and shall
reimburse Lakes for all reasonable payments made and expenses incurred under
this Agreement, which amounts shall be secured under this Agreement. Lakes shall
have no obligation to make any of the foregoing payments or perform any of the
foregoing acts


                                                                          Page 9

<PAGE>

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required


                                                                         Page 10

<PAGE>

to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement, and any such amounts
shall be deemed to be Costs of Gaming Operations under the Management Contract
and subject to the terms of Section 2.9 thereof.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,


                                                                         Page 11

<PAGE>

administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the Borrower shall not be and Lakes shall be responsible
for such related costs and expenses. If Borrower shall fail to pay any of such
costs when due, Lakes may make a withdrawal or proceeds from the Project
Dominion Account in an amount sufficient to cause the payment of the same or
reimburse Lakes for any such payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days prior to the Commencement Date (as estimated by the Borrower and
Lakes), Borrower shall select an eligible financial institution to act as the
agent (the "Agent") under this Agreement and cause the Agent to execute a
counterpart signature page to this Agreement, thereby becoming a party hereto.
Thereafter, there shall at all times be an Agent hereunder. Any such Agent shall
be a financial institution organized and doing business under the laws of the
United States of America or of any State, having a combined capital, undivided
profits and surplus of at least $500,000,000. If at any time the Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.


                                                                         Page 12

<PAGE>

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of resignation, the resigning Agent
may petition any court of competent jurisdiction for the appointment of a
Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower and Lakes (so long as a
Notice of Exclusive Control has not been issued by Lakes to the Agent) and
delivered to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.


                                                                         Page 13

<PAGE>

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Pawnee Trading Post Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Lakes:           Lakes Pawnee Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.


                                                                         Page 14

<PAGE>

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition without invalidating the remaining provisions
hereof, provided, however that where the provisions of any such applicable law
may be waived, they hereby are waived by the Parties to the fullest extent
permitted by law to the end that this Agreement shall be deemed to be a valid
and binding agreement in accordance with its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Management Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient; provided, however, that any and all
remedies of the Agent and Lakes shall be Limited Recourse. No failure on the
part of the Agent or Lakes to exercise and no delay in exercising, any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any power or right preclude any other or further exercise
thereof of any other power or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the Dominion Account Agreement as
defined and referred to in Section 2.8(a) of the Management Contract. As such
and without limiting the scope of such Management Contract, the provisions of
Section 9.10 and Article 10 of the Management Contract apply to this Agreement
and are hereby incorporated by reference, including, without limitation, the
limited sovereign immunity waiver, limitations on recourse and arbitration and
jurisdiction provisions contained therein and the Resolution of Limited Waiver
attached thereto. This Agreement and the Project Dominion Account will be
governed by the internal laws of the State of Oklahoma without giving effect to
its conflict of laws principles and without limiting the foregoing, the Oklahoma
Uniform Commercial Code (as may be amended form time to time) notwithstanding
any provision therein or other applicable law that would otherwise make such


                                                                         Page 15

<PAGE>

laws inapplicable to the Borrower. The parties hereto may not change the law
governing this Agreement and the Project Dominion Account without express
written consent of the Borrower, Agent and LAKES.

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Management Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 16

<PAGE>
\
     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        Pawnee Trading Post Gaming Corporation


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE MANAGEMENT, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: ________, 200___

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated January 12, 2005 (as amended or otherwise modified from time to time, the
"Dominion Agreement") by and among Pawnee Trading Post Gaming Corporation
("Borrower"), Lakes Pawnee Management, LLC ("Lakes") and
____________________________________ ("Agent"), the Collecting Bank, must
execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and management services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Pawnee Trading Post Gaming Corporation
(the "Borrower"), do hereby provide this Compliance Certificate in connection
with that certain Dominion Account Agreement dated January 12, 2005 (the
"Dominion Agreement"), by and between the Borrower, Lakes, and
__________________________ Bank (the "Bank"); capitalized terms used but not
otherwise defined herein shall have the meaning set forth in the Dominion
Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No.
          __________________________________ with the Bank.

                                        PAWNEE TRADING POST GAMING CORPORATION


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.94
<SEQUENCE>29
<FILENAME>c92713exv10w94.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.94

                               SECURITY AGREEMENT

                            (LAKES PAWNEE MANAGEMENT)

                               (TRADING POST SITE)

          This Security Agreement is made and entered into on January 12, 2005,
by and between Pawnee Trading Post Gaming Corporation (hereinafter referred to
as "Pawnee" or "Debtor"), a wholly owned subsidiary of the Pawnee Tribal
Development Corporation ("Pawnee TDC"), each created under the Constitution of
and a governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee
Nation"), a federally recognized Indian tribe, whose business office is located
at 871 Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes
Pawnee Management, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes" or "Secured Party"), whose business office is located at
130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the Constitution of and a governmental
subdivision of the Pawnee Nation, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into an agreement with Debtor dated
January 12, 2005 (as amended from time to time, the "Management Contract"),
pursuant to which Lakes is to manage the Project's Gaming Facility and related
Ancillary Facilities owned by Debtor.

     WHEREAS, pursuant to the Management Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Management Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges and
grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the


                                  Page 1 of 15

<PAGE>

Debtor's right, title and interest in and to the collateral described in Section
2 hereinbelow in each case whether now owned or hereafter acquired by Debtor in
order to secure the payment and performance of the obligations of Debtor to
Secured Party described in Section 3 herein below. On the date of execution of
this Agreement, Debtor shall cause to be delivered to Secured Party: (a) such
financing statements and similar documents necessary to perfect the security
interest granted to Secured Party pursuant to this Agreement (the "Financing
Statements"), and (b) a legal opinion in form and substance reasonably
acceptable to Secured Party, opining as to the due authorization, execution,
delivery and enforceability of this Agreement and the Financing Statements by
Debtor, together with opinions as to Debtor's sovereign immunity waiver and
non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Project, the Gaming
Facility Site and/or the Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Management
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Management Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "Project" means the business enterprise of the Debtor now or hereafter
created to engage in Class II Gaming and III Gaming (as defined in the Indian
Gaming Regulatory Act of 1988, Public Law 100-497 ("IGRA")) at the Project's
Gaming Facility, and to conduct the operations of any Ancillary Facilities of
the Project, including, but not limited to, operating and managing office space,
kids arcade, child care facility, hotel with swimming pool and golf course,
restaurant, RV park, retail stores, entertainment facilities, or the sale of
fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs.


                                  Page 2 of 15

<PAGE>

          "Project Facilities" means the buildings, structures and improvements
to be constructed and used by the Project for its gaming and ancillary
operations.

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Operating Note, and
each of the other Transaction Documents (as each of such terms are defined in
the Management Contract), and (b) the Pawnee Nation and/or Pawnee TDC to Secured
Party or its Affiliates under or with respect to the Tribal Agreement or any
other document or agreement executed in favor of Secured Party or its Affiliates
by Pawnee Nation or Pawnee TDC in connection with the Project, each of the
foregoing, whether now existing or hereafter incurred or arising, (ii) any and
all sums advanced by Secured Party in order to preserve the Collateral or
preserve Secured Party's security interest in the Collateral (or the priority
thereof) and (iii) the expenses of retaking, holding, preparing for sale or
lease, selling or otherwise disposing of or realizing on the Collateral, of any
proceeding for the collection or enforcement of any indebtedness, obligations or
liabilities of Debtor referred to above, or of any exercise by Secured Party of
its rights hereunder, together with reasonable attorneys' fees and disbursements
and court costs (collectively, the "Secured Obligations"); PROVIDED HOWEVER,
Secured Party agrees to terminate this Security Agreement upon request if Debtor
has satisfied the following conditions: (a) all Secured Obligations have been
repaid in full to Secured Party and Secured Party has no further obligation, if
any, to make advances under the Management Contract with respect thereto, and
(b) the Management Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

     4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 2.23 of the Management Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and


                                  Page 3 of 15

<PAGE>

perform this Security Agreement. This Security Agreement constitutes a legally
valid and binding obligation of the Debtor, enforceable against the Debtor in
accordance with its terms subject to any limitations set forth in the Resolution
of Limited Waiver attached to the Management Contract. Subject to the completion
of the items identified in Section 4(c) below, the provisions of this Security
Agreement are effective to create in favor of Secured Party a valid and
enforceable first, prior and perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default under, or constitute an event
which with notice or lapse of time or both will result in a breach of or
constitute a default


                                  Page 4 of 15

<PAGE>

under, any agreement, indenture, mortgage, deed of trust, equipment lease,
instrument or other document to which Debtor is a party, conflict with or
require approval, authorization, notice or consent under any law, order, rule,
regulation, license or permit applicable to Debtor of any court or any federal
or state government, regulatory body or administrative agency, or any other
governmental body having jurisdiction over Debtor or its properties, or require
notice, consent, approval or authorization by or registration or filing with any
person or entity (including, without limitation, any stockholder or creditor of
Debtor) other than any notices to Debtor from Secured Party required hereunder
except as may be agreed to by Debtor and Secured Party. Except for the Permitted
Liens, none of the Collateral is subject to any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor is
a party that may restrict or inhibit Secured Party's rights or ability to sell
or dispose of the Collateral or any part thereof after the occurrence of an
Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than 21 days after a
request by Secured Party, procure or execute and deliver all further instruments
and documents (including, without limitation, notices, legal opinions, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements) necessary or appropriate to and take any other actions which are
necessary or, in the judgment of Secured Party, desirable or appropriate to
perfect or to continue the perfection, priority and enforceability of Secured
Party's security interests in the Collateral, to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, to protect the Collateral against the rights, claims or interests of
third persons, or to effect or to assure further the purposes and provisions of
this Security Agreement, and will pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted


                                  Page 5 of 15

<PAGE>

hereby; (ii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices as may be necessary or
desirable, which Secured Party may reasonably request in order to perfect and
preserve the perfection and priority of the security interests granted or
purported to be granted hereby; (iii) if any Collateral shall be evidenced by a
promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for Permitted Liens, and the Debtor will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein, except as expressly provided herein. Debtor
will not permit any Lien Notices to exist or be on file in any public office
with respect to all or any portion of the Collateral except, in each case, for
Lien Notices of holders of Permitted Liens or except as may have been filed by
or for the benefit of Secured Party relating to this Security Agreement or
related agreements. Debtor shall promptly notify Secured Party of any attachment
or other legal process levied against any of the Collateral and any information
received by any Debtor relative to the Collateral, which may in any material way
affect the value of the Collateral or the rights and remedies of Secured Party
in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or otherwise disposed of in violation of these
provisions, the security interest of Secured Party shall


                                  Page 6 of 15

<PAGE>

continue in such Collateral or part thereof notwithstanding such sale, transfer,
assignment, exchange or other disposition, and Debtor will hold the proceeds
thereof in a separate account for Secured Party's benefit. Debtor will, at
Secured Party's request, transfer such proceeds to Secured Party in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Management Contract, Debtor
will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Management
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance with respect to
the Project and Collateral as required by the Management Contract and naming
Secured Party as an additional insured, loss payee and mortgagee, if applicable.
Upon request, the Debtor shall provide to the Secured Party certificates of
insurance or copies of insurance policies evidencing that such insurance
satisfying the requirements of such Management Contract is in effect at all
times;

          (j) Except as expressly permitted by the Management Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;


                                  Page 7 of 15

<PAGE>

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.


                                  Page 8 of 15

<PAGE>

     6. DEFAULTS AND REMEDIES

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Management Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor expressly covenants and agrees that Secured Party may, at
its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Management Contract is terminated and either (i) the
Commencement Date (as defined in the Management Contract) has not occurred, or
(ii) the Debtor does not or at any time fails to continue operations of Class II
Gaming and/or Class III Gaming at the Project's Gaming Facility or any material
portion of the Project Facilities, Secured Party may immediately take possession
of any of the Collateral wherever it may be found or require the Debtor to
assemble the Collateral or any part thereof and make it available at one or more
places as Secured Party may designate, and to deliver possession of the
Collateral or any part thereof to Secured Party, who shall have full right to
enter upon any or all of Debtor's places of business, premises and property to
exercise Secured Party's rights hereunder; and without notice (except as
specified below), sell the Collateral or any part thereof in one or more parcels
at one or more public or private sales, at any of Secured Party's offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor acknowledges and agrees that, to the extent notice of
sale shall be required by law, at


                                  Page 9 of 15

<PAGE>

least ten (10) days' written notice to Debtor of the time and place of any
public sale or of the date on or after which any private sale is to be made
shall constitute reasonable notification. Any public sale shall be held at such
time or times during ordinary business hours and at such place or places as
Secured Party may fix in the notice of such sale. Notwithstanding the foregoing,
Secured Party shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. Secured Party may, without notice or
publication, adjourn any public or private sale, or cause the same to be
adjourned from time to time by announcement at the time and place fixed for sale
or, with respect to a private sale, after which such sale may take place, and
any such sale may, without further notice, be made at the time and place to
which it was so adjourned or, with respect to a private sale, after which such
sale may take place. Each purchaser at any such sale shall hold the property
sold free from any claim or right on the part of Debtor, and the Debtor hereby
waives, to the full extent permitted by law, all rights of stay and/or appraisal
which Debtor now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted. The Debtor also hereby waives any
claims against Secured Party arising by reason of the fact that the price at
which any Collateral may have been sold at a private sale was less than the
price which might have been obtained at a public sale, even if Secured Party
accepts the first offer received and does not offer such Collateral to more than
one offeree. The parties hereto agree that the notice provisions, method, manner
and terms of any sale, transfer or disposition of any Collateral in compliance
with the terms set forth herein or any other provision of this Security
Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or


                                 Page 10 of 15

<PAGE>

agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:          Pawnee Trading Post Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Secured Party:   Lakes Pawnee Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP


                                 Page 11 of 15

<PAGE>

                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Management Contract, Debtor shall not assign any of its interest under this
Security Agreement without the prior written consent of Secured Party. Any
purported assignment inconsistent with this provision shall, at the option of
Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in


                                 Page 12 of 15

<PAGE>

connection herewith, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby and shall
nonetheless remain in full force and effect to the maximum extent permitted by
law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured
Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms


                                 Page 13 of 15

<PAGE>

hereof, and execute and deliver to Debtor such documents as Debtor may
reasonably request to evidence such termination. Such reassignment and
redelivery shall be without warranty by or recourse to Secured Party, and shall
be at the expense of Debtor; provided, however, that this Security Agreement
(including all representations, warranties and covenants contained herein) shall
continue to be effective or be reinstated, as the case may be, if at any time
any amount received by Secured Party in respect of the indebtedness and
obligations secured hereunder is rescinded or must otherwise be restored or
returned by Secured Party upon or in connection with the insolvency, bankruptcy,
dissolution, liquidation or reorganization of Debtor or any other person or upon
or in connection with the appointment of any intervenor or conservator of, or
trustee or similar official for, Debtor or any other person or any substantial
part of its assets, or otherwise, all as though such payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the Security Agreement as defined and
referred to in the Management Contract. As such and without limiting the scope
of such agreements, the provisions of Section 9.10 and Article 10 of the
Management Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver attached thereto. This Agreement will be governed
by the internal laws of the State of Oklahoma without giving effect to its
conflict of laws principles. The parties hereto may not change the law governing
this Agreement without express written consent of the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                  Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        PAWNEE TRADING POST GAMING CORPORATION

ATTEST:


By: /s/ Leslie Hand                     By: /s/ Monty Matlock
    ---------------------------------       ------------------------------------
Name: Leslie Hand                       Name: Monty Matlock
      -------------------------------         ----------------------------------
Its: President                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES PAWNEE MANAGEMENT, LLC

ATTEST:


By: /s/ Kevin Kean                      By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Kevin Kean                        Name: Timothy J. Cope
      -------------------------------   Title: President and Chief Financial
Its:                                           Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
          (PAWNEE TRADING POST GAMING CORPORATION COLLATERAL LOCATIONS)

1.   ____________________________________________________, OKLAHOMA

2.   ____________________________________________________, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.95
<SEQUENCE>30
<FILENAME>c92713exv10w95.txt
<DESCRIPTION>INDEMNITY AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.95

                               INDEMNITY AGREEMENT

          This Indemnity Agreement is dated as of January 12, 2005, by and
between Pawnee Trading Post Gaming Corporation ("Pawnee"), a wholly-owned
subsidiary of the Pawnee Tribal Development Corporation ("Pawnee TDC"), each
created under the Constitution of and a governmental subdivision of the Pawnee
Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe,
located in the State of Oklahoma, and Lakes Pawnee Management, LLC, a Minnesota
limited liability company (hereinafter referred to as "Lakes"), whose business
office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                   WITNESSETH:

          WHEREAS, Lakes has entered into an agreement with Pawnee dated January
12, 2005 ("Management Contract"), pursuant to which Lakes is to manage the
Project's Gaming Facility and related Ancillary Facilities owned by Pawnee; and

          WHEREAS, Lakes and Pawnee have required the other to execute and
deliver this Indemnity Agreement to each other to induce Lakes to assist with
management of the Project Facilities and to induce Pawnee to allow Lakes to
comply with Environmental Laws in the management of the Project Facilities;

          NOW, THEREFORE, for valuable consideration, the receipt of which is
hereby acknowledged, Pawnee and Lakes agree as follows:

     1. RECITALS TRUE. The above recitals are true.

     2. DEFINITIONS. Capitalized terms used but not otherwise defined herein and
defined in the Management Contract shall have the same meaning herein as
therein. As used herein, the following additional terms shall have the following
meanings:

     (a) Environmental Laws: Together: (i) the Resource Conservation Recovery
Act, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C.
Sections 6901 et seq.; (ii) the Comprehensive Environmental Response,
Compensation and Liability Act, as amended by the Superfund Amendments and
Reauthorization Act, 42 U.S.C. Sections 9601 et seq.; (iii) the Clean Water Act,
33 U.S.C. Sections 466 et seq. and 33 U.S.C. Sections 1344 et seq.; (iv) the
Safe Drinking Water Act, 14 U.S.C. Sections 1401-1450; (v) the Toxic Substances
Control Act, 15 U.S.C. Sections 2601-2629; (vi) the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801 et seq.; (vii) all applicable
Oklahoma environmental laws; (viii) the Clean Air Act, 42 U.S.C. Sections 7401
et seq.; (ix) any other applicable federal, state, local or tribal environmental
laws or laws related to the regulation of Hazardous Materials; (x) any
applicable local, state or federal rules or regulations promulgated pursuant to
items (i) through (ix) and any similar local, state or federal laws, rules,
ordinances or regulations either in existence as of the date hereof, or enacted
or promulgated after the date of this Agreement, that concern the
transportation, storage, placement, handling, treatment, release, discharge,
generation, manufacture, production, disposal, management, control, discharge,
treatment, containment, and/or removal of substances or materials that are or
may become a threat to public health or the environment; or (xi) any common law
theory involving materials or substances which are or are alleged to be
hazardous to human health or the environment based on nuisance, trespass,
negligence, strict liability or other tortious conduct.

     (b) Hazardous Materials: Together: (i) any substance, material, or matter
that may give rise to liability under any Environmental Laws; (ii) any
"hazardous substance" listed in the U.S. Department of Transportation Table (49
C.F.R. 172.101), as the same may be amended from time to time; and (iii)
asbestos, lead paint, pcb's, urea formaldehyde foam insulation, radioactive
materials and any materials, the removal of which is required or the maintenance
of which is prohibited or penalized.


                                       -1-

<PAGE>

     (c) Lakes Indemnitee or Indemnitees: Lakes, its affiliates and subsidiaries
and any parent entities, together with their respective officers, directors,
shareholders, employees, agents, attorneys and other representatives, and their
successors and assigns. Each reference to any Lakes Indemnitee herein shall
refer jointly, severally and individually to each such party.

     (d) Pawnee Indemnitee or Indemnitees: Lakes, its affiliates and
subsidiaries and any parent entities, together with their respective officers,
directors, shareholders, employees, agents, attorneys and other representatives,
and their successors and assigns. Each reference to any Pawnee Indemnitee herein
shall refer jointly, severally and individually to each such party.

     (e) Project Claims: Any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, costs, expenses and disbursements (including,
but not limited to, all reasonable attorneys' fees and expenses and all other
professionals' or consultants' reasonable expenses incurred in investigating,
preparing for, serving as a witness in or defending against any action or
proceeding, whether actually commenced or threatened, which may be asserted
against any Lakes or Pawnee Indemnitee), arising from, in respect of, as a
consequence of, or in connection with any claims and matters (excluding
Environmental Losses) described in Sections 2.9, 7.1, 7.2, 7.3 and 7.4 of the
Management Contract, each whether now existing or hereafter arising.

     (f) Environmental Losses: Any and all liabilities, obligations, losses,
damages, penalties, claims, actions, suits, costs, expenses and disbursements
(including, but not limited to, all reasonable attorneys' fees and expenses and
all other professionals' or consultants' reasonable expenses incurred in
investigating, preparing for, serving as a witness in or defending against any
action or proceeding, whether actually commenced or threatened, which may be
asserted against any indemnitees), arising from, in respect of, as a consequence
of, or in connection with any of the following: (A) the remediation of any
Hazardous Material placed on or released from the Gaming Facility Site, Project
Facilities or the lands upon which they are located as may be required by law,
whether such removal is done or completed by Pawnee, Lakes, or any other person
or entity; (B) claims asserted at any time (prior to or after the date of this
Agreement) by any person or entity (including, without limitation, any
governmental agency or quasi-governmental authority, board, bureau, commission,
department, instrumentality or public body, court, or administrative tribunal (a
"Government Agency"), in connection with or in any way arising out of the
presence, storage, use, disposal, generation, transportation, or treatment of
any Hazardous Material on, in or under the Gaming Facility Site, Project
Facilities or the lands upon which they are located; (C) the violation or
claimed violation of any Environmental Laws in regard to the Gaming Facility
Site, Project Facilities or the lands upon which they are located; (D) the
preparation of an environmental audit on the Gaming Facility Site, Project
Facilities or the lands upon which they are located, whether conducted or
authorized by indemnitor, an indemnitee, or a third party; (E) the violation or
claimed violation of Oklahoma environmental laws, as a result of the condition
of the Gaming Facility Site, Project Facilities or the lands upon which they are
located, or any other applicable federal, state, local or tribal environmental
law or laws relating to the regulation of Hazardous Materials and the removal
from the Gaming Facility Site, Project Facilities or the lands upon which they
are located of paint, plaster, soil and other accessible material containing
levels of lead which are in violation of applicable law, each whether now
existing or hereafter arising.

     (g) Indemnified Obligations. With respect to Pawnee Indemnities, means the
Pawnee Project Indemnity Obligations and the Pawnee Environmental Indemnity
Obligations. With respect to Lakes Indemnities, means the Lakes Project
Indemnity Obligations and Lakes Environmental Indemnity Obligations.

     3. INDEMNITY.

     (a) Project Claims. Pawnee agrees to indemnify and to hold each Lakes
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or


                                       -2-

<PAGE>

incurred by, any of the Lakes Indemnitees resulting from or due to any Project
Claims excluding any such claims or losses resulting from a Lakes Indemnitee's
gross negligence or willful or criminal misconduct (individually and
collectively, the "Pawnee Project Indemnity Obligations"). Lakes agrees to
indemnify and to hold each Pawnee Indemnitee harmless from any and all claims,
causes of action, damages, penalties, fees and costs which may be asserted
against, or incurred by, any of the Pawnee Indemnitees resulting from Lakes'
gross negligence or willful or criminal misconduct (individually and
collectively, the "Lakes Project Indemnity Obligations").

     (b) Environmental Claims. Lakes agrees to indemnify and to hold each Pawnee
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or incurred by, any of
the Pawnee Indemnitees resulting from or due to any Environmental Losses arising
after the date of this Indemnity Agreement resulting from or due to Lakes' gross
negligence or willful or criminal misconduct (individually and collectively, the
"Lakes Environmental Indemnity Obligations"). Pawnee agrees to indemnify and to
hold each Lakes Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Lakes Indemnitees resulting from or due to any Environmental
Losses; excluding however any Environmental Losses arising after the date of
this Indemnity Agreement that result from Lakes gross negligence or willful or
criminal misconduct (individually and collectively, the "Pawnee Environmental
Indemnity Obligations").

     (c) Pawnee's duty to indemnify and hold harmless includes, but is not
limited to, loss or liability asserted in proceedings or actions commenced by
any person (including, but not limited to, any federal, state, or local
governmental agency or entity) before any court or administrative agency
asserting a claim for which Pawnee must indemnify Lakes Indemnitees under this
section. Lakes' duty to indemnify and hold harmless includes, but is not limited
to, loss or liability asserted in proceedings or actions commenced by any person
(including, but not limited to, any federal, state, or local governmental agency
or entity) before any court or administrative agency asserting a claim for which
Lakes must indemnify Pawnee Indemnitees under this section.

     (d) Each Lakes Indemnitee agrees that it shall not pay any Project Claim
asserted by any party without first offering Pawnee the opportunity and right to
assume the defense of any and all related actions or proceedings, but the
foregoing is not intended to restrict any Lakes Indemnitee's ability to obtain
reimbursement for any cost, expenses and related disbursements incurred in
connection with the investigation or defense of such claim or loss. Each Pawnee
Indemnitee agrees that it shall not pay any Project Claim asserted by any party
without first offering Lakes the opportunity and right to assume the defense of
any and all related actions or proceedings, but the foregoing is not intended to
restrict any Pawnee Indemnitee's ability to obtain reimbursement for any cost,
expenses and related disbursements incurred in connection with the investigation
or defense of such claim or loss.

     (e) Pawnee's obligations to indemnify and hold the Lakes Indemnitees
harmless hereunder shall survive any termination or expiration of the Management
Contract and the repayment and/or satisfaction of all obligations now or
hereafter owed by Pawnee to Lakes under the Management Contract and any other
instruments, documents or agreements related thereto. Lakes obligations to
indemnify and hold the Pawnee Indemnitees harmless hereunder shall survive any
termination or expiration of the Management Contract and the repayment and/or
satisfaction of all obligations now or hereafter owed by Lakes to Pawnee under
the Management Contract and any other instruments, documents or agreements
related thereto.

     4. ADVANCES UNDER OPERATING NOTE. Notwithstanding the foregoing and without
limiting the rights of Lakes under the Management Contract, all Project Claims
and Environmental Claims ultimately determined to be due from but not paid by
Pawnee on demand by any of the Lakes Indemnitees, shall be


                                       -3-

<PAGE>

deemed to be an Advance made by Lakes to Pawnee under the terms of the Operating
Note, shall accrue interest from the date incurred and shall continue to be
immediately due and payable. Notwithstanding the foregoing and without limiting
the rights of Pawnee under the Management Contract, all Project Claims and
Environmental Claims ultimately determined to be due from but not paid by Lakes
on demand by any Pawnee Indemnitees shall be deemed to be a prepayment made by
Pawnee to Lakes under the terms of the Operating Note; if the aggregate amount
of the Project Claims or Environmental Claims exceeds the outstanding balance of
the Operating Note, but only to the extent of the outstanding amount under the
Operating Note.

     5. OBLIGATION TO DEFEND.

     (a) Assumption of Defense. Upon request of any indemnitee, the indemnitor
shall be bound to defend any and all actions or proceedings that may be brought
against such indemnitee in connection with or arising out of any Indemnified
Obligations and the matters covered by this Agreement, and indemnitee shall give
written notice to the indemnitor of any litigation or proceedings pending,
threatened or commenced (whether or not served) against the indemnitee in
connection with any Indemnified Obligations. If indemnitor is defending an
indemnitee, indemnitor may settle the claim only with the indemnitee's prior
written consent, such consent not to be unreasonably withheld if the indemnitee
is not subject to any further liabilities, obligations, restrictions or
prohibitions with respect to said claim.

     (b) Delivery of Acknowledgment. Within 30 days from the date of receipt by
indemnitor from any indemnitee of a request to defend (which request shall refer
to such 30-day time period), indemnitor must acknowledge in a writing its duty
to defend and that such claim is covered in its entirety by this Agreement (the
"Acknowledgment") or if in the judgment of the indemnitor such claim is not
covered in its entirety by this Agreement, the statement of indemnitor to such
effect including its reasons for such judgment in reasonable detail; provided,
however, that until the Indemnitee receives the Acknowledgment, the Indemnitee
shall be entitled to defend such claim and Indemnitor shall be bound in the
manner set forth in Section 5(d) hereof.

     (c) Conduct of Defense; Participation by Indemnitee. If indemnitor is
defending an indemnitee, such defense shall be conducted by reputable attorneys
retained by indemnitor, reasonably satisfactory to said indemnitee, at
indemnitor's sole cost and expense. In addition, said indemnitee shall have the
right to participate in such proceedings at said indemnitee's sole cost and
expense and to be represented by attorneys in addition to the attorneys retained
by indemnitor of said indemnitee's own choosing and at said indemnitee's sole
cost and expense, except that if the Indemnitee reasonably concludes, by
applying applicable standards of professional responsibility, that the interests
of indemnitee and of indemnitor in the action conflict in such a manner as to
require retention of separate counsel for the indemnitee, indemnitor shall
reimburse indemnitee its reasonable fees for separate counsel chosen by the
indemnitee. Notwithstanding the foregoing, if an indemnitee, at any time,
refuses to enter into a settlement agreement negotiated by indemnitor or its
counsel, indemnitor shall no longer be liable for an adverse judgment against
such indemnitee to the extent that such adverse judgment exceeds said settlement
amount and such indemnitee shall be liable for all of its defense costs after
such refusal.

     (d) Indemnitor's Failure to Defend. If indemnitor fails to deliver the
Acknowledgment or fails to choose counsel reasonably satisfactory to the
indemnitee, indemnitor shall not thereafter be entitled to elect to defend such
action, and indemnitor shall be bound by and shall be conclusively liable for
the results obtained by the indemnitee, including without limitation the amount
of any judgment or good faith out-of-court settlement or compromise and all
costs and reasonable fees of counsel incurred by the indemnitee in connection
therewith, but subject always to the scope and limitations expressly set forth
in this Agreement.

     (e) Defense by Indemnitee. If an action or proceeding is brought against an
indemnitee or to which an indemnitee may be a party, and such indemnitee elects
to conduct its own defense because indemnitor fails to choose counsel reasonably
satisfactory to said indemnitee, indemnitor shall be conclusively


                                       -4-

<PAGE>

liable for the results obtained by the indemnitee, including without limitation
the amount of any judgment or good faith, out-of-court settlement or compromise.
In addition, indemnitor shall be liable for any and all costs and expenses,
including, but not limited to, all attorneys' fees, that said indemnitee incurs.

     6. ARBITRATION; LIMITED WAIVER OF SOVEREIGN IMMUNITY. Any disputes under
this Indemnification Agreement shall be subject to the dispute resolution and
arbitration provisions as provided in Article 10 of the Management Contract and
be resolved in the venues provided in Article 10 of the Management Contract.
Pawnee's limited waiver of sovereign immunity in Section 9.10 of the Management
Contract shall apply to this Agreement.

     7. LIMITED RECOURSE. The liability and obligations of Pawnee under or
relating to this Agreement shall always be Limited Recourse, and in no instance
shall any enforcement of any kind whatsoever be allowed against any assets of
Pawnee other than the limited assets of Pawnee specified in the definition of
the term "Limited Recourse" in the Management Contract.

     8. CAPTIONS, GENDER, AND NUMBER. Any section or paragraph, title or caption
contained in this Agreement is for convenience only and shall not be deemed a
part of this Agreement. As used in this Agreement, the masculine, feminine or
neuter gender, and the singular or plural number, shall each be deemed to
include the others whenever the context so allows.

     9. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of an
indemnitee in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power, right or privilege preclude any other or further exercise of any such
power, right of privilege. All powers, rights and privileges hereunder are
cumulative to, and not exclusive of, any powers, rights or privileges otherwise
available.

     10. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Oklahoma without giving effect to its
conflict of laws principles.

     11. AMENDMENTS, ASSIGNMENTS, ETC. Any provision of this Agreement may be
amended if, but only if, such amendment is in writing and is signed by each of
the parties hereto. No modification shall be implied from course of conduct.
This Agreement shall be binding on and inhered to the benefit of each of the
parties hereto and their respective successors and assigns, subject to the same
restrictions on assignability as set forth in the Management Contract. This
Agreement may be executed in separate counterparts and by facsimile and such
counterparts shall be deemed to constitute one binding document.

     12. NOTICES. Any notice or demand required to be given under this Agreement
shall be given in the same manner and shall be deemed effective in accordance
with the terms set forth in Section 9.3 of the Management Contract.

                 (Balance of this page intentionally left blank)


                                       -5-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Indemnity Agreement
to be executed under seal as of the 12th day of January, 2005

                                        Lakes Pawnee Management, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------


                                        Pawnee Trading Post Gaming Corporation


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Tommie Briggs
                                            ------------------------------------
                                        Name: Tommie Briggs
                                              ----------------------------------
                                        Its: Treasurer
                                             -----------------------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.96
<SEQUENCE>31
<FILENAME>c92713exv10w96.txt
<DESCRIPTION>GAMING DEVELOPMENT CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.96

                               GAMING DEVELOPMENT
                              CONSULTING AGREEMENT

     THIS GAMING DEVELOPMENT CONSULTING AGREEMENT (hereinafter referred to as
the "Agreement") is made as of January 12, 2005 ("Effective Date") by and
between the Pawnee Travel Plaza Gaming Corporation ("Pawnee"), a wholly-owned
subsidiary of the Pawnee Tribal Development Corporation ("Pawnee TDC"), each
created under the Constitution of and a governmental subdivision of the Pawnee
Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe, and
Lakes Pawnee Consulting, LLC, a Minnesota limited liability company ("Lakes").

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established Pawnee, a wholly-owned subsidiary of Pawnee
TDC and tribally-chartered corporation, as the legal entity which will own and
operate certain gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     B. Pawnee wishes to develop, construct and operate gaming facility projects
which will conduct Class II Gaming (and also Class III Gaming activities in the
event of federal agency approval of a Tribal-State Compact between the Pawnee
Nation and the State of Oklahoma permitting such gaming) ("Gaming Facilities,"
as further defined herein), together with related amenities such as a hotel,
food and beverage facilities, retail outlets, and ancillary building and
enterprises that enhance the Gaming Facilities ("Ancillary Facilities," as
further defined herein) (the Gaming Facilities and the Ancillary Facilities
together, the "Project Facilities"). Pawnee and Lakes intend that the Project
Facilities will be developed as individual projects according to a development
schedule agreed to by the parties. The Project Facilities are expected to
generate substantial revenues for Pawnee TDC, and therefore significantly
improve the social, economic and health conditions of present and future tribal
members, while strengthening the Pawnee Nation's overall economic
self-sufficiency and self-determination.

     C. Lakes has the requisite skills, resources, experience, and expertise
related to real estate acquisitions, financing, development and construction,
and operations of gaming facilities and related amenities to assist Pawnee in
the development, financing and construction of the Project Facilities and to
provide consulting services relating to Project Facilities.


                                       -1-

<PAGE>

     D. Pawnee presently lacks the resources to develop and finance the Project
Facilities and desires to retain the services of the Lakes as set forth herein.

     E. For the compensation set forth herein, Lakes wishes to provide the
following services to Pawnee as more fully set forth herein: (1) funding of
Project Preliminary Development Loans; (2) assistance in arranging the Project
Permanent Financings; (3) development and construction management for the
Project Facilities; and (4) consulting services in connection with pre-opening
and post-opening operations of the Project Facilities.

     F. Pawnee desires to grant to Lakes the exclusive right to develop, arrange
for financing of, construct, equip and consult in connection with pre-opening
and post-opening operations of Pawnee's Project Facilities as set forth in this
Agreement, and Lakes desires to undertake those responsibilities in accordance
with this Agreement. Pawnee also desires to grant to Lakes the right to
participate in any other gaming project opportunity Pawnee pursues in the State
of Oklahoma under the same terms and conditions described herein.

     G. Pawnee and Lakes intend that this Agreement shall be operative and
binding upon the date of execution by the parties ("Effective Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Agreement" means this Gaming Development Consulting Agreement, as it may
be amended, supplemented, restated or replaced from time to time.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the particular Project's Gaming Facility; provided, however,
unless the parties otherwise agree, the term "Ancillary Facilities" shall not
include any of Pawnee Tribe's existing enterprises consisting of: fuel and
retail sales made at the existing U.S. Hwy 412 & State Hwy 18 "Travel Plaza"
currently operated by the Pawnee TDC or retail sales made or Gaming Operations
conducted at its existing "Trading Post" convenience store operated by the
Pawnee TDC as currently constructed at this time.


                                       -2-

<PAGE>

     "Architect" any architectural or engineering firm duly licensed to provide
architectural services for the Project Facilities.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Capital Expenditures" means any expenditure that is considered a capital
expenditure under GAAP.

     "Claim" means any dispute, claim, question, or disagreement between Pawnee
and Lakes or any Affiliate of Lakes that is directly or indirectly related to
this Agreement, any Pawnee Note or the Project Facilities, whether arising under
law or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or the maturity of any
Pawnee Note.

     "Class II Gaming" means class II gaming as defined in IGRA.

     "Class III Gaming" means class III gaming as defined in IGRA.

     "Collateral" is defined in Section 3.1(a).

     "Compact" means any Tribal-State Compact executed between the Pawnee Nation
and the State of Oklahoma entered into and approved by the United States
Secretary of the Interior either before or after the Effective Date of this
Agreement, and any amendments or modifications thereto.

     "Contractor" means any Person providing materials or services for the
Project pursuant to a contract.

     "Costs of Operations" means, with respect to any period of time occurring
on or after the Opening Date, the total of all costs required under GAAP to be
treated as operating expenses of a particular Project's Gaming Facility,
including but not limited to the following (so long as they constitute such
expenses):

          (a) all fees imposed upon the particular Project's Gaming Facility by
     the NIGC;

          (b) all amounts required to be paid to the State pursuant to a Compact
     or all amounts required to be paid to any local governmental entity under
     any agreement to mitigate off-reservation impacts related to the particular
     Project's Gaming Facility;

          (c) license or other fees for background investigations performed by
     the Gaming Commission of "key employees" and "primary management officials"
     of the particular Project's Gaming Facility, as defined in 25 C.F.R.
     Section 502.14 and 25 C.F.R. Section 502.19, less any amounts collected
     from employees for those fees, provided, however, such amounts allocable
     hereunder shall not exceed $25 per employee per any 12 month period
     (although the Gaming Commission may charge employees more for such licenses
     or fees); and reasonable and customary regulatory fees imposed on the
     Gaming Facility


                                       -3-

<PAGE>

     by the Gaming Commission (which amounts shall be subject to an annually
     approved budget submitted by the Gaming Commission).

          (d) depreciation and amortization expenses computed over reasonable
     periods permitted under GAAP and as further set forth below; and

          (e) to the extent properly allocable to the operation of the
     particular Project's Gaming Facility under GAAP, the following:

               (1) costs of administration, recruiting, hiring, firing and
          training employees;

               (2) compensation and benefits of employees;

               (3) interest charges on indebtedness (including the Project
          Permanent Financing) related to the particular Project's Gaming
          Facility; and

               (4) all other expenses, including, without limitation, those
          incurred for materials, supplies, inventory, utilities, repairs and
          maintenance (excluding Capital Expenditures), insurance and bonding,
          marketing, advertising, annual audits, accounting, legal or other
          professional and consulting, surveillance/security or guard services;

provided however, that "Costs of Operations" do not include repayment of
principal or Capital Expenditures or capital leases; and notwithstanding the
foregoing, for purposes of this definition of Costs of Operations, depreciation
for personal property shall be determined on a straight-line basis over a period
of seven (7) years from the date such property is placed in service, and
depreciation for real property, including improvements and buildings shall be
determined on a straight-line basis over a period of thirty (30) years.

     "Design Professional" means any Person other than an Architect engaged in
the business of providing engineering, landscape, interior design or other
design services.

     "Development Committee" is defined in Section 2.2.

     "Effective Date" means the date the parties execute this Agreement.

     "Equipment Contract" means any contract to finance or acquire equipment or
property for use in connection with the Project Facilities, exclusive of
property to be provided pursuant to a Project Construction Contract, whether
constituting or characterized as a loan or credit agreement, purchase agreement,
financing lease, capital lease, participating lease, license or otherwise.

     "Equipment Vendor" means any Person that sells, leases or licenses personal
property to Pawnee for use in connection with the Project Facilities.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project Facilities, including,
without limitation:


                                       -4-

<PAGE>

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project Facilities.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession.

     "Gaming Commission" means any tribal commission or body of the Pawnee
Nation that is lawfully performing the obligations and exercising the rights of
the tribal gaming regulatory agency established pursuant to the Pawnee Nation's
Gaming Ordinance.

     "Gaming Facility" means, in connection with the particular Project, all
buildings, structures and improvements, together with all furniture, fixtures
and equipment and personal property (whether tangible or intangible) to be used
in connection with the operation of Class II Gaming and/or Class III Gaming.

     "Gaming Facility Site" is defined in Section 2.4.

     "Gaming Operation" means a "gaming operation" as defined in NIGC
regulations, 25 C.F.R. Section 502.10.

     "Gaming Ordinance" means any valid gaming ordinance of the Pawnee Nation
that is in effect for purposes of and to the extent required by IGRA or the
Compact.

     "Governmental Authority" means the United States, the BIA, the State, the
Pawnee Nation and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming or Class III Gaming at the
Gaming Facility, the construction of


                                       -5-

<PAGE>

the Project Facilities, operation of the Project Facilities, or Pawnee's or
Lakes' obligations under this Agreement or any Pawnee Note.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Lakes" means Lakes Pawnee Consulting, LLC, a Minnesota limited liability
company and a wholly owned subsidiary of Lakes Gaming and Resorts, LLC.

     "Lakes Event of Default" is defined in Section 10.1.

     "Legal Requirements" means the Compact and all present and future federal,
State, Tribe and local laws, ordinances, rules, regulations, permits, licenses
and certificates, and any and all present and future orders of courts and
administrative bodies of competent jurisdiction, applicable to the Project, the
Project Facilities, this Agreement, or any Pawnee Note.

     "Management Contact" means a management contract as defined in IGRA.

     "Material Breach" by any party means (a) a material failure of the party to
perform a material obligation under this Agreement for reasons not excused under
Section 13.5 (Force Majeure); or (b) any material representation or warranty
made by a party to this Agreement proves to be knowingly false or erroneous in
any material way when made or at any time shall fail to be true and correct in
all material respects.

     "NIGC" means the National Indian Gaming Commission, established by IGRA.

     "Opening Date" means the first day on which a Project's Gaming Facility is
open to the public for the conduct of Class II Gaming and/or Class III Gaming
following the first advance under the Project Preliminary Development Loan.

     "Pawnee Event of Default" is defined in Section 10.3.

     "Pawnee Note or Pawnee Notes" are defined in Section 3.1(a).

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the development, construction and equipping and future
expansion of each Gaming Facility and, if mutually agreed by the Parties, the
development, construction and equipping of one or more Ancillary Facilities in
connection with the individual gaming projects, whether such work shall occur
simultaneously or in phases during the term of this Agreement, which the parties
anticipate to be developed under this Agreement, including, but not limited to,
the following: the "Travel Plaza Expansion Project". The scope of each Project
and its Project Facilities shall be mutually agreed to by the parties and made a
part hereof through an addendum to this Agreement.


                                       -6-

<PAGE>

     "Project Architect" is defined in Section 2.5(a).

     "Project Architectural Agreement" is defined in Section 2.5(b).

     "Project Budget" is defined in Section 2.7.

     "Project Construction Contract" is defined in Section 5.1.

     "Project Costs" means (a) all costs of any nature (whether considered an
expense or Capital Expenditure) incurred by or on behalf of Pawnee, or by or on
behalf of Lakes or its Affiliates, in connection with any particular Project in
accordance with this Agreement, including all amounts advanced by Lakes to
Pawnee for the particular Project, including but not limited to all amounts
advanced under the Project Preliminary Development Loan and all amounts
evidenced by the Pawnee Notes; (b) all other amounts mutually agreed upon by
Lakes and Pawnee necessary for the development, construction and equipping of
the particular Project; and (c) with respect to the first Project developed
hereunder, $85,000 as required for initial and first year payments under the
Compact.

     "Project Development Fee" means the Project Development Fee for the
particular Project as calculated pursuant to Section 7.1 herein.

     "Project General Contractor" is defined in Section 5.1.

     "Project Permanent Financing" means one or more debt financings, which may
be in the form of one or more loans, financings, operating leases, issues of
debt securities, or other credit facilities, for which the source of funding is
not Lakes or an Affiliate of Lakes, incurred or issued by or on behalf of Pawnee
to finance or refinance all of the Project Preliminary Development Loan and
Project Costs.

     "Project Permanent Financing Date" means the first day on which Project
Permanent Financing is advanced to or made available for the benefit of Pawnee
for development of a particular Project.

     "Project Preliminary Development Budget" is defined in Section 3.1.

     "Project Preliminary Development Loan" is defined in Section 3.1.

     "Project Facilities" means the Gaming Facility and the Ancillary Facilities
in connection with the particular Project.

     "Proprietary Interest" means proprietary interest in a Gaming Operation
within the meaning of IGRA.

     "Revenues" means, with respect to a particular Project and any period of
time, all revenues of any nature derived directly or indirectly from the
operation of the Project Facilities and permitted under GAAP to be included in
the Project Facilities' total revenues for that period, less any credits or
refunds made to customers, guests, or patrons of the Project Facilities, not
considered a Cost of Operations and not applied in any prior period to reduce
Revenues.


                                       -7-

<PAGE>

"Revenues" shall not include (i) any gratuities or service charges added to the
bill of a customer, guest or patron of the Project Facilities and payable to
employees of the Project Facilities, (ii) promotional allowances for which there
is not a direct offsetting item treated as a Cost of Operations, (iii) any
sales, excise, gross receipt, admission, entertainment, tourist or other taxes
or charges (or assessments equivalent thereto, or payments made in lieu thereof)
that are received from a customer, guest or patron and passed on to governmental
or quasi-governmental entities unrelated to the Pawnee, (iv) any lawful federal,
state, or local taxes or impositions (including any payment or fee in lieu of
the foregoing) that are collected from patrons of or vendors to the Project
Facilities, (v) proceeds of indebtedness of the Pawnee, and (vi) proceeds from
insurance or condemnation (other than proceeds of business interruption
insurance and other proceeds received to reimburse the Project's Project
Facilities for any item accounted for under GAAP as a Cost of Operations).

     "State" means the State of Oklahoma.

     "Term" of this Agreement is defined in Section 11.1.

     "Travel Expansion Project" means the expansion of the "Travel Plaza" in
Pawnee County currently operated by the Pawnee TDC at the intersection of State
Highway 412 and County Road 18 to include the offering of Class II and/or Class
III gaming and other amenities to attract gaming customers of the Pawnee Travel
Plaza to be operated by Pawnee.

     "Tribal Agreement" shall mean the agreement between the Pawnee Nation and
Pawnee TDC and Lakes or its affiliates described in Section 8.2(n).

                                    ARTICLE 2
                             PRE-CONSTRUCTION PHASE

     Section 2.1 Effective Date. This Agreement shall become effective and
binding upon the date of execution by the parties.

     Section 2.2 Creation of Development Committee. Within 15 days after the
Effective Date of this Agreement, the parties shall establish a Development
Committee that will have the powers, obligations and authorities as provided
herein. The Development Committee shall consist of five (5) persons: three
Pawnee representatives and two Lakes representatives. Decisions of the
Development Committee shall be made by majority vote of all members with at
least one Pawnee representative and one Lakes representative present and if not
present, the other Pawnee representatives and the other Lakes representative,
participating and voting via teleconference.

     Section 2.3 Exclusive Right to Develop. Pawnee hereby grants to Lakes the
exclusive right to assist in the financing, development, construction, equipping
and consulting in connection with pre-opening and post-opening operations of any
Class II Gaming and/or Class III Gaming facility and any ancillary facilities
enhancing such gaming facility operated by Pawnee in the State of Oklahoma,
including a hotel, any convention center, food and beverage


                                       -8-

<PAGE>

outlets, retail outlets, and any other enterprise designed to promote, support,
or enhance such gaming facility.

     Section 2.4 Gaming Facility Site Selection. With respect to each particular
Project, the Development Committee shall designate the location of the proposed
site on which the Gaming Facility shall be constructed (the "Gaming Facility
Site"), provided, the site upon which the facility housing Class II and/or Class
III Gaming shall be located on and must constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under IGRA.

     Section 2.5 Project Architect; Plans and Specifications; Design
Professionals. With respect to the pre-construction development of each
particular Project, the parties agree to the following provisions.

     (a)  Selection of Project Architect. As soon as reasonably practical after
          the Effective Date of this Agreement, Lakes shall propose to the
          Development Committee one or more Architects to provide customary
          architectural services with respect to the Particular Project's
          Project Facilities, although Pawnee also shall have the right to
          propose to the Development Committee additional architects for
          consideration.. As soon as reasonably practical, the Development
          Committee shall either approve or reject each proposed Architect. In
          the case of a rejection, the process described in this Section 2.5(a)
          shall be repeated until the Development Committee has approved one or
          more Architects proposed for the particular Project ("Project
          Architect").

     (b)  Project Architectural Agreement; Plans and Specifications. Once an
          Architect has been approved under Section 2.5(a), Lakes shall
          negotiate proposed agreements with each Architect approved, and shall
          propose the same to the Development Committee (each, a "Project
          Architectural Agreement"). As soon as reasonably practical, the
          Development Committee shall either approve or reject each proposed
          Project Architectural Agreement. In the case of a rejection, the
          process described in this Section 2.5(b) shall be repeated until the
          Development Committee has approved the Project Architectural
          Agreements proposed by Lakes. Upon approval, Pawnee shall take
          necessary action to authorize and execute the applicable Project
          Architectural Agreements. After execution of each Project
          Architectural Agreement, Lakes shall coordinate the Architect's
          preparation of mutually agreeable preliminary basic plans, drawings
          and specifications for the Project's Project Facilities. Lakes shall
          also coordinate the Architect's preparation of mutually agreeable
          construction drawings and final design, plans and specifications for
          the Project Facilities, and propose the same for approval by the
          Development Committee. The completed and approved final plans,
          together with any modifications thereof proposed by Lakes and approved
          by the Development Committee, shall constitute the "Project Plans and
          Specifications."


                                       -9-

<PAGE>

     (c)  Selection of Additional Design Professionals for Project. If the
          Development Committee determines that design services for the
          Project's Project Facilities from Design Professionals are desirable,
          Lakes and Pawnee may propose to the Development Committee one or more
          Design Professionals and the proposed services of each. As soon as
          reasonably practical, the Development Committee shall either approve
          or reject the proposed Design Professionals. In the case of a
          rejection, the process described in this Section 2.5(c) shall be
          repeated until the Development Committee has approved all Design
          Professionals proposed by Lakes. After approval of each Design
          Professional by the Development Committee, Lakes shall coordinate the
          services of each Design Professional.

     Section 2.6 Other Project Contractors. Lakes shall propose to the
Development Committee for its approval all third-party professionals, such as
environmental specialists, feasibility analysts, and others providing services
or materials to the Project's Project Facilities as are customary for
undertakings such as the particular Project ("Project Contractors"). Pawnee
shall also have the right to propose Project Contractors to the Development
Committee. Lakes, in consultation with the Development Committee, and subject to
the final approval by the Development Committee, shall negotiate all Project
Contractor contracts. All contracts shall require the Project Contractor to
adhere in regard to recruitment, employment, reduction in force, promotion,
training and related employment actions to a publicly announced policy and
practice of Pawnee Nation preference and/or any publicly announced policy of
Indian preference, both of which must be reasonably promulgated by the Pawnee
Nation. Except as provided in this Agreement, each Project Contractor contract
shall be between the Project Contractor and Pawnee as determined by the
Development Committee. Notwithstanding the foregoing, all legal representation
of Pawnee shall be determined solely by Pawnee.

     Section 2.7 Project Budget. Lakes shall consult with the Architect to
develop and propose to the Development Committee a budget for all Project Costs
relating to the particular Project, along with a scheduled timeframe(s) for
development of the Project. Revisions to the Project budget may be proposed to
the Development Committee from time to time by Lakes until a final budget is
approved by the Development Committee. The Project budget approved by the
Development Committee, together with any modification thereafter proposed by
Lakes and approved by the Development Committee, shall include all Project Costs
and shall be the "Project Budget."

     Section 2.8 Contracts with Project Professionals. All professionals
providing services to a Project shall be independent of Lakes and its
Affiliates, unless otherwise agreed to by the parties in writing, and all
contracts with such professionals will be negotiated by Lakes and Pawnee on an
arms-length basis and in the best interests of Pawnee.

                                    ARTICLE 3
                      PROJECT PRELIMINARY DEVELOPMENT LOANS

     Section 3.1 Project Preliminary Development Loan. Subject to the terms and
conditions in this Article 3, Lakes shall make loans if needed from time to time
to Pawnee with respect to each particular Project for payment of Project
preliminary development costs


                                      -10-

<PAGE>

(collectively the "Project Preliminary Development Loan") set forth in a Project
preliminary development budget proposed by Lakes and approved by the Development
Committee ("Project Preliminary Development Budget"). Lakes shall have no
obligation to advance any funds under the Project Preliminary Development Loan
in excess of the approved Project Preliminary Development Budget. The Project
Preliminary Development Loan for a particular Project shall become part of its
Project Costs and shall include all advances made by Lakes to Pawnee for that
Project, including but not limited to those evidenced by the initial Pawnee
Note. A new Pawnee Note shall be executed for each Project. Any Project
Preliminary Development Loan and Lakes' obligation to advance funds to Pawnee
for any particular Project, shall be subject to each of the following
requirements:

     (a)  All advances made pursuant to a Project Preliminary Development Loan
          shall be evidenced by one or more promissory notes prepared by Lakes,
          substantially in the form attached as EXHIBIT A to this Agreement
          ("Pawnee Note"), in each case executed on behalf of Pawnee, and dated
          the date of the applicable loan (collectively with any note executed
          by Pawnee in favor of Lakes in connection with the development of any
          Project, the "Pawnee Notes"), to be secured by certain security
          interests and liens on (i) the proceeds of any Project Permanent
          Financing; (ii) all Revenues from the Project; (iii) the Project's
          Furnishing and Equipment; (iv) any fee lands upon which the Project is
          located (collectively, the "Collateral"). In no event shall Lakes have
          recourse to Revenue distributions already received by Pawnee from the
          Project and made to the Pawnee TDC in accordance with this Agreement
          and/or any applicable dominion account agreement.

     (b)  If the principal amount of the Pawnee Note is exceeded by any pending
          advance on the Project Preliminary Development Loan, prior to such
          advance being made and prior to Lakes having any obligation to fund
          such advance, Pawnee shall execute and deliver to Lakes either (i) an
          amendment to such Pawnee Note, increasing the principal amount of the
          note by an amount at least equal to the pending advance, or (ii) an
          additional Pawnee Note with a principal amount at least equal to the
          principal amount of the pending advance, as determined by Lakes.

     (c)  Amounts advanced from time to time as part of the Project Preliminary
          Development Loan shall bear interest, from the date of advance, at the
          greater of either the prime interest rate of Chase Manhattan Bank
          U.S.A., N.A. (or any successor bank) plus two percent (2%) or the same
          rate as the Project Permanent Financing for each particular Project in
          place at the time of the advance.

     (d)  Unless otherwise agreed by the parties in writing, all principal and
          interest accrued on each Project Preliminary Development Loan shall
          become due and payable in twenty-four (24) equal monthly installments
          beginning on the 25th day following the Opening Date for the Project
          if the loan has not previously been repaid through the Project
          Permanent Financing. Pawnee shall use its best efforts to cause the
          Project Preliminary Development Loan to be paid out of the proceeds of
          the Project Permanent Financing. Notwithstanding the foregoing, the
          Project


                                      -11-

<PAGE>

          Preliminary Development Loan shall become due and owing in its
          entirety upon (i) the occurrence of a Pawnee Event of Default under
          Section 10.3, which default is either incapable of cure or has not
          been cured within the time period set forth in Section 10.4, or (ii)
          termination of this Agreement under Section 11.3.

     (e)  The Project Preliminary Development Loan may be prepaid without
          penalty by Pawnee at any time, in whole or in part, together with
          accrued and unpaid interest thereon.

     (f)  No amounts shall be loaned under the Project Preliminary Development
          Loan except for costs set forth in the Project Preliminary Development
          Budget, unless Lakes in its sole discretion agrees to advance such
          funds, in which case, such advances shall be Project Costs. Lakes
          shall have no obligation to advance funds for costs unless such costs
          are set forth in the Project Preliminary Development Budget and such
          costs:

          (i)  have been approved in advance by the Development Committee, or

          (ii) constitute payments properly due within the terms and scope of
               Project Contractors contracts.

          Upon any such payment by Lakes, an advance on the Project Preliminary
          Development Loan shall automatically occur.

     (g)  The Project Preliminary Development Loan, together with interest
          thereon, shall be payable from and secured by a pledge of the
          Collateral.

          To that end, Pawnee hereby pledges and grants a security interest in
          all the Collateral to Lakes to secure Pawnee's obligations under this
          Agreement and under the Pawnee Notes, further agrees to enter into
          standard and customary dominion account agreements/security
          agreements/mortgages or deeds of trust necessary to evidence and
          effectuate such liens, and authorizes Lakes to file those financing
          statements and similar documents and agreements as Lakes may believe
          appropriate to perfect such liens.

     (i)  Notwithstanding anything to the contrary in this Article 3, Lakes
          shall not be obligated to fund any advances on each Project
          Preliminary Development Loan after the earliest of:

          (i)  the Project Permanent Financing Date for the applicable Project;

          (ii) the second anniversary of the first advance under the applicable
               Project Preliminary Development Loan;

          (iii) the failure of Pawnee to cure, within the time prescribed in
               this Agreement, any default under this Agreement or any Pawnee
               Note for which Pawnee receives written notice;


                                      -12-

<PAGE>

          (iv) sixty (60) days after written notice by Lakes that a reasonable
               basis exists for concluding that this Agreement, the development
               of the Project, or the operation of the Project's Gaming Facility
               is not lawful;

          (v)  any determination by Lakes that a reasonable basis exists for
               concluding that any material terms of this Agreement or the
               Pawnee Notes are not valid or binding obligations of the Pawnee;

          (vi) any reasonable determination by Lakes (which may be based on the
               advice of legal counsel) that any representations contained in
               Section 8.2 are not true and correct; and

          (vii) the commencement of any litigation which, in the reasonable
               determination of Lakes, has a reasonable likelihood of delaying
               the completion of the Project's Project Facilities for more than
               24 months after the Effective Date of this Agreement.

     Section 3.2 Conditions Precedent to First Advance of Project Preliminary
Development Loan or Perform any Obligations. Notwithstanding Section 3.1, Lakes
is not required to make any advance under each Project Preliminary Development
Loan or perform any obligations under this Agreement until Lakes receives each
of the following in form and substance reasonably satisfactory to Lakes:

     (a)  copy of tribal laws in a form sufficient as determined by Lakes to
          perfect the security interests and liens granted to it under Section
          3.1;

     (b)  copy of one or more resolutions of the governing body of the Pawnee
          Nation authorizing and ratifying the adoption, or the execution,
          delivery and performance by the Pawnee Nation, Pawnee TDC or Pawnee,
          as applicable, of (i) the Compact (if in effect), (ii) the Gaming
          Ordinance, (iii) this Agreement, and (iv) the Pawnee Notes and related
          documents and security instruments;

     (c)  original of any license(s) required by any Government Authority for
          the Lakes services (as described in this Agreement) in connection with
          the development, construction and operation of the Project;

     (d)  an opinion of an attorney for Pawnee in form reasonably satisfactory
          to Lakes to the effect that (i) this Agreement, the Pawnee Notes, and
          any security instruments to be executed by Pawnee in connection with
          this Agreement will be valid, binding and perfected obligations of
          Pawnee, enforceable in accordance with their terms, (ii) the Pawnee
          Nation is an Indian tribe within the meaning of IGRA, (iii) each of
          the actions of Pawnee Nation, Pawnee TDC or Pawnee, as applicable,
          referred to above in this Section have been validly taken by that
          entity and is in full force and effect, (iv) the Pawnee Nation is
          legally permitted to conduct Class II Gaming (and Class III Gaming in
          the event of a Compact) activities in the State under all Legal
          Requirements, (v) the Gaming Facility Site for the Project constitutes
          "Indian lands" upon which the Pawnee Nation may legally conduct


                                      -13-

<PAGE>

          gaming under IGRA, and (vi) the Pawnee Nation and Pawnee TDC have
          entered into an agreement with Lakes or its Affiliate that all gaming
          and related project facilities will be owned and operated by Pawnee or
          another subsidiary of Pawnee TDC and granting Lakes or its Affiliate
          the right to participate in any gaming projects owned and operated by
          Pawnee or another subsidiary of Pawnee TDC under the same terms and
          conditions described in this Agreement, and the agreement shall
          contain representations, warranties and covenants substantially
          similar to those contained in Articles 8 and 9 hereof insofar as
          applicable, and with respect to such agreement, the same constitutes
          the valid, binding and enforceable obligations of Pawnee Nation and
          Pawnee TDC, enforceable in accordance with their terms.

     (e)  designation by Pawnee of its members to the Development Committee and
          the formation of the Development Committee;

     (f)  a feasibility study has been conducted demonstrating to Lakes'
          satisfaction the economic viability of the particular Project, and
          Pawnee and Lakes have mutually agreed to the scope of the contemplated
          project(s) and entered into an addendum to this Agreement describing
          the contemplated scope of the project(s);

     (g)  a letter from the NIGC determining that the Gaming Facility Site for
          the Project constitutes "Indian lands" upon which the Pawnee Nation
          may legally conduct gaming under IGRA; and

     (h)  unless otherwise agreed or waived in writing, Lakes shall have
          received either (i) a legal interpretation/opinion determination
          letter from the Pawnee Nation's attorneys or highest judicial office
          that any limitations or restrictions contained in the Corporate
          Charter of the Pawnee Tribe of Oklahoma, a federally-chartered
          corporation, does not apply to and has no legal effect on the validity
          of this Agreement or any related documents, or (ii) a certified copy
          of an amendment to the Corporate Charter of the Pawnee Tribe of
          Oklahoma, a federally-chartered corporation, or other evidence
          reasonably satisfactory to Lakes pursuant to which the Corporate
          Charter of the Pawnee Nation Tribe of Oklahoma, federally-chartered
          corporation, shall have been amended to remove any limitations or
          restrictions that would otherwise prevent either the Pawnee Nation or
          Pawnee TDC and its wholly-owned subsidiaries from entering into this
          Agreement or any related documents or that would require the approval
          of this Agreement or any related documents from the Secretary of the
          Interior or any federal agency before the document becomes legally
          valid and enforceable.

                                    ARTICLE 4
                          PROJECT PERMANENT FINANCINGS

     Section 4.1 Project Permanent Financing. Lakes shall use commercially
reasonable efforts to assist Pawnee in obtaining one or more sources of Project
Permanent Financing for any particular Project in amounts and at times as are
required for payment of expected Project Costs


                                      -14-

<PAGE>

(other than those expected to be funded by an Equipment Contract) as set forth
in the Project Budget. The terms of the Project Permanent Financing shall be
subject to the approval of the Development Committee, which approval shall not
be unreasonably withheld.

     Section 4.2 Approval of Disbursements. Unless otherwise agreed to by the
Development Committee, no disbursement of proceeds from any Project Permanent
Financing shall be made without the approval of the Development Committee and,
with respect to costs payable pursuant to the Project Construction Contract,
without customary approvals or certifications by the Project Architect and
Project General Contractor.

                                    ARTICLE 5
                    PROJECT CONSTRUCTION AND EQUIPPING PHASES

     Section 5.1 Project General Contractor and Construction Contracts. Lakes
shall propose to the Development Committee for its approval one or more general
or prime contractors to provide customary construction contracting services with
respect to any particular Project's Project Facilities (the "Project General
Contractor"). As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project General Contractor. In the case
of a rejection, the process described in this Section 5.1 shall be repeated
until the Development Committee has approved a Project General Contractor
proposed by Lakes. Once the Project General Contractor has been approved by the
Development Committee, Lakes shall negotiate and propose to the Development
Committee for its approval one or more forms of agreements for execution by
Pawnee to engage the Project General Contractor (the "Project Construction
Contract"). After the Development Committee has approved and Pawnee has entered
into the Project Construction Contract(s), no change orders shall be made
without the written recommendation of Lakes and written approval by the
Development Committee.

     Section 5.2 Project Contractor Costs. All costs incurred by or paid
pursuant to the Project Construction Contract(s) in accordance with Project
Budget shall be Project Costs.

     Section 5.3 Project Equipment Contracts. Lakes shall propose to the
Development Committee for its approval one or more contractors to provide
equipment or personal property for use in connection with operations of the
Project Facilities, exclusive of property to be provided pursuant to a Project
Construction Contract (the "Project Equipment Contractor"). Pawnee shall also
have the right to propose Project Equipment Contractors to the Development
Committee. As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project Equipment Contractor. In the case
of a rejection, the process described in this Section 6.3 shall be repeated
until the Development Committee has approved a Project Equipment Contractor
proposed. Once the Project Equipment Contractor has been approved by the
Development Committee, Lakes shall negotiate and propose to the Development
Committee for its approval one or more forms of agreements for execution by
Pawnee to engage the Project Equipment Contractor (the "Project Equipment
Contract"). After the Development Committee has approved and Pawnee has entered
into the Project Equipment Contract(s), no change orders shall be made without
the written recommendation of Lakes and written approval


                                      -15-

<PAGE>

by the Development Committee. Lakes will assist in the selection, ordering,
expediting, and installation of furniture, fixtures and equipment required for
the Project Facilities.

                                    ARTICLE 6
                   PRE AND POST-OPENING OPERATIONS CONSULTING

     Section 6.1 Project Operations Consulting. In connection with pre-opening
and post-opening operations of any particular Project, Lakes shall assist Pawnee
by providing consulting services to Pawnee related to establishing and
implementing initial gaming and ancillary systems in the following areas: making
recommendations to Pawnee as to: (a) general Gaming Operations, (b) electronic
gaming devices operations, (c) table game operations if permitted, (d) cage,
vault and count room operations, (e) surveillance department operations, (f)
security department operations, (g) marketing and advertising, (h) food and
beverage operations, (i) human resources, (j) facilities and maintenance, (k)
finance and (l) information systems. At all times, Pawnee shall have the sole
proprietary interest in and management responsibility for the conduct of all
Gaming Operations conducted at any Project during the period Lakes is providing
operations consulting services under this Agreement.

     Section 6.2 Cooperative Efforts. Both parties to this Agreement shall
exercise their best efforts to fully cooperate with each other in the
performance of the operations consulting services to be rendered hereunder;
provided, however, that it shall be within the sole discretion of Pawnee to
determine whether or not to act upon or implement the technical assistance,
consultation or advice provided by Lakes.

     Section 6.3 No Management Services Provided. The parties expressly
acknowledge that this Agreement is for consulting services only and that Lakes
shall not engage in any management activities or perform any management services
hereunder with respect to any Project. The parties expressly acknowledge that
the decision to adopt, approve or implement any proposal, suggestion or
recommendation made by Lakes in connection with its operations consulting
services shall rest exclusively with Pawnee.

                                    ARTICLE 7
                                 DEVELOPMENT FEE

     Section 7.1 Project Development Fee. For its services under this Agreement
related to any particular Project, in addition to interest earned on the Project
Preliminary Development Loan, Lakes shall receive a fee equal to (a) three (3%)
percent of Project Costs ("Development Fixed Fee") and (b) a flat fee of $25,000
per month for one hundred twenty (120) months in accordance with the payment
terms described in Section 7.2.("Monthly Consulting Fixed Fee")(collectively the
"Project Development Fee).

     Section 7.2 Terms of Payment. The Development Fixed Fee shall be paid on
the Opening Date for the Project. No Monthly Consulting Fixed Fee shall be
earned or paid prior to


                                      -16-

<PAGE>

the Opening Date of the Project. After the Opening Date of the Project, the
Monthly Consulting Fixed Fee shall be due and paid commencing on the 25th day of
the following calendar month, and become due and payable on the 25th day of each
successive month.

     Section 7.3 Project Development Fee Security. To secure payment of the
Project Development Fee, Pawnee hereby pledges and grants a security interest in
all Collateral to Lakes to secure Pawnee's obligations under this Agreement in
connection with payment of the Project Development Fee, further agrees to enter
into standard and customary dominion account agreements/security
agreements/mortgages or deeds of trust necessary to evidence and effectuate such
liens, and authorizes Lakes to file those financing statements and similar
documents and agreements as Lakes may believes appropriate to perfect such
liens.

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

     Section 8.1 Representations and Warranties of Lakes. Lakes represents and
warrants to Pawnee that:

     (a)  Organization. Lakes is a limited liability company duly formed and
          validly existing under the laws of the State of Minnesota.

     (b)  Authority. Lakes has the full legal right and authority to enter into
          this Agreement, to perform its obligations under this Agreement, and
          to consummate all other transactions contemplated by this Agreement.

     (c)  Binding Obligation. This Agreement has been duly executed and
          delivered by Lakes and constitutes a legal, valid and binding
          obligation of Lakes, enforceable against Lakes in accordance with its
          terms, except as enforceability may be limited by future bankruptcy,
          insolvency or similar proceedings, limitations on rights of creditors
          generally and principles of equity, and assuming such agreements are
          binding against the other parties thereto.

     (d)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Lakes,
          threatened against Lakes, its Affiliates, or any of its assets or
          properties that could have a material adverse effect on its ability to
          enter into or perform this Agreement.

     (e)  No Violation or Conflict. The execution, delivery and performance by
          Lakes of this Agreement does not violate any Legal Requirement
          applicable to Lakes, other than a violation that shall not materially
          adversely affect any particular Project or Pawnee's obligations or
          rights under this Agreement. The execution, delivery and performance
          of this Agreement does not conflict with or result in any breach of
          any provision of, or constitute a default under, or result in the
          imposition of any


                                      -17-

<PAGE>

          lien or charge upon any asset of Lakes under, or result in the
          acceleration of any obligation under the terms of any agreement or
          document binding upon Lakes, other than a conflict, breach, default or
          imposition that shall not materially adversely affect any particular
          Project or Pawnee's obligations or rights under this Agreement.

     (f)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Lakes is required
          for Lakes to execute, deliver and perform its obligations hereunder;
          provided that Lakes makes no representation or warranty with respect
          to any consent that may be required by the Gaming Commission, Pawnee
          Nation, Pawnee TDC or Pawnee,, NIGC or BIA.

     (g)  Full Disclosure. No representation or warranty of Lakes in this
          Agreement and no report or statement delivered to Pawnee by or on
          behalf of Lakes, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading.

     (h)  Financial Capacity. Lakes has the financial capacity to finance any
          and all amounts necessary in order to comply with Lakes' commitment to
          provide the Project Preliminary Development Loan under Article 3
          hereof , and the provision of such financing will not result in Lakes
          becoming insolvent or otherwise being unable to pay its debts as they
          become due.

     (i)  Brokers' Fees and Other Fees and Expenses. Except for the letter
          agreement dated August 20, 2004 with Kevin Kean and the definitive
          consulting agreement to be negotiated and executed as contemplated
          thereunder, neither Lakes nor any of its Affiliates has as of the
          Effective Date of this Agreement engaged, nor has any liability or
          obligation to pay any fees, commissions or expenses with respect to,
          any broker, finder or agent, investment banker, or any similar advisor
          or services provider, with respect to or in connection with the
          transactions contemplated by this Agreement for which Lakes or its
          Affiliates could become liable or obligated, and neither Pawnee nor
          any of its Affiliates has any liability or obligation to pay any of
          such amounts.

     Section 8.2 Representations and Warranties by Pawnee. Pawnee represents and
warrants to Lakes that:

     (a)  Organization. Pawnee is a wholly-owned subsidiary of the Pawnee TDC,
          which is a governmental subdivision of the Pawnee Nation, an Indian
          tribe eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Pawnee has taken all action required by tribal
          law without the necessity of further action to authorize the
          execution, delivery and performance of this Agreement, all Pawnee
          Notes and related security documents


                                      -18-

<PAGE>

          and instruments described herein. Pawnee has all requisite power and
          authority to enter into this Agreement, all Pawnee Notes, and related
          security documents and instruments described herein to perform its
          obligations under this Agreement, all Pawnee Notes, and related
          security documents and instruments described herein, and to consummate
          all other transactions contemplated by this Agreement, the Pawnee
          Notes and related security documents and instruments described herein.

     (c)  Binding Obligations. Each of this Agreement (including but not limited
          to, the waiver of sovereign immunity in Article 12), the Pawnee Notes
          and related security documents and instruments described herein has
          been duly executed and delivered by Pawnee and is a legal, valid,
          binding and perfected obligation of Pawnee, enforceable against Pawnee
          in accordance with its terms, except as enforceability may be limited
          by future bankruptcy, insolvency or similar proceedings, limitations
          on rights of creditors generally and principles of equity, and
          assuming the foregoing agreements are binding against the other
          parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for any particular
          Project constitutes "Indian lands" upon which the Pawnee Nation may
          legally conduct gaming under IGRA.

     (e)  Gaming Permitted. Pawnee Nation is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Pawnee Nation and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Pawnee Nation. Pawnee will then have the right to
          engage in Class III Gaming at the Gaming Facilities to be operated by
          the Pawnee in connection with this Agreement to the extent set forth
          in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes to enter into this
          Agreement and perform its obligations under this Agreement have been
          granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Pawnee, Pawnee TDC or the Pawnee Nation or affecting either
          the Gaming Facility Site(s) or any Project, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect any Project or Lake's
          obligations or rights under this Agreement, any Pawnee Note and
          related security documents and instruments described herein.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          Pawnee of this Agreement, any Pawnee Note and related security
          documents and instruments described herein does not violate any Legal
          Requirements. The execution,


                                      -19-

<PAGE>

          delivery and performance of this Agreement, any Pawnee Note and
          related security documents and instruments described herein by Pawnee
          does not conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of Pawnee under, or result in the acceleration
          of any obligation under the terms of any agreement or document binding
          upon Pawnee, other than a conflict, breach, default or imposition as
          shall not materially adversely affect any particular Project or Lake's
          obligations or rights under this Agreement, any Pawnee Note and
          related security documents and instruments described herein.

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Pawnee,
          threatened, against any Pawnee, Pawnee TDC or Pawnee Nation, or any of
          the assets or properties of Pawnee, that could have a material adverse
          effect on any particular Project, its Project Facilities, Pawnee's
          ability to enter into or perform this Agreement or Lakes' obligations
          or rights under this Agreement, any Pawnee Note and related security
          documents and instruments described herein.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Pawnee is required
          to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of Pawnee in this
          Agreement and no report or statement delivered to Lakes by or on
          behalf of Pawnee, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading. Pawnee has fully disclosed the existence and
          terms of all material agreements and Legal Requirements, written or
          oral, relating to any particular Project.

     (m)  No Tribal Tax. Neither the Project, the Project Facilities nor the
          transaction(s) between the parties contemplated by this Agreement, the
          Pawnee Notes, and any related security documents and instruments
          described herein are now, or at any time during the term of this
          Agreement will be, subject to any tribal tax of any sort other than
          (i) reasonable pass-through taxes on Project patron which are
          consistent with gaming resort industry practices, and (ii) license or
          other fees for background investigations performed by the Gaming
          Commission of "key employees" and "primary management officials" of
          the particular Project's Gaming Facility, as defined in 25 C.F.R.
          Section 502.14 and 25 C.F.R. Section 502.19, and reasonable and
          customary regulatory fees imposed on the Gaming Facility by the Gaming
          Commission (which amounts shall be subject to an annually approved
          budget submitted by the Gaming Commission).

     (n)  Tribal Agreement. The Pawnee Nation and Pawnee TDC have entered into
          an agreement with Lakes or its Affiliate which (i) confirms that all
          gaming and related project facilities of Pawnee Nation or Pawnee TDC
          will be owned and


                                      -20-

<PAGE>

          operated by either Pawnee or another subsidiary of Pawnee TDC, (ii)
          and grants Lakes or its Affiliate the right to participate in any
          gaming projects owned and operated by Pawnee or another subsidiary of
          Pawnee TDC under the same terms and conditions described in this
          Agreement, and (iii) contains representations, warranties and
          covenants substantially similar to those contained in Articles 8 and 9
          hereof, insofar as applicable; and with respect to such agreement, the
          same constitutes valid, binding and enforceable obligations of Pawnee
          Nation and Pawnee TDC, enforceable in accordance with their terms.

                                    ARTICLE 9
                                    COVENANTS

     Section 9.1 Covenants of Lakes. Lakes covenants and agrees as follows:

          (a)  Additional Documents. Lakes shall execute any additional
               instruments as may be reasonably required by Pawnee to carry out
               the intent of this Agreement or to perfect or give further
               assurances of any of the rights granted or provided for under
               this Agreement.

     Section 9.2 Covenants of Pawnee. Pawnee covenants and agrees as follows:

          (a)  Additional Documents. Pawnee shall execute any additional
               instruments as may be reasonably required by Lakes to carry out
               the intent of this Agreement or to perfect or give further
               assurance of any of the rights granted or provided for under this
               Agreement or any Tribal Note, including execution of the related
               security documents and instruments described herein.

          (b)  Non-Impairment. None of Pawnee, Pawnee TDC or Pawnee Nation shall
               enact any law, ordinance, rule or regulation impairing the rights
               or obligations of Pawnee or Lakes under this Agreement or under
               any related contracts entered into by Pawnee or impairing the
               rights and obligations of Lakes in furtherance of the design,
               development, construction, equipping or financing of any
               particular Project's Project Facilities, including, but not
               limited to, this Agreement and any contract or agreement entered
               into or contemplated by this Agreement.

          (c)  Records. Pawnee shall maintain or cause to be maintained full and
               accurate accounts and records for any particular Project and its
               Project Facilities according to GAAP.

          (d)  No Liens. Prior to the Opening Date, unless Lakes otherwise
               consents, Pawnee shall not cause or voluntarily permit any lien
               or encumbrance to be created on the Project Facilities for any
               particular Project, the Project's


                                      -21-

<PAGE>

               Gaming Facility Site or any proceeds of the Project Preliminary
               Development Loan or the Project Permanent Financing.

          (e)  No Tax. Neither Pawnee, Pawnee TDC nor Pawnee Nation shall not
               impose any tax, fee or assessment on Lakes, any Contractor, any
               Project and its Project Facilities, this Agreement, the Pawnee
               Notes, and any related security documents and instruments
               described herein other than (i) reasonable pass-through taxes on
               Project patron which are consistent with gaming resort industry
               practices, and (ii) license or other fees for background
               investigations performed by the Gaming Commission of "key
               employees" and "primary management officials" of the particular
               Project's Gaming Facility, as defined in 25 C.F.R. Section 502.14
               and 25 C.F.R. Section 502.19, and reasonable and customary
               regulatory fees imposed on the Gaming Facility by the Gaming
               Commission (which amounts shall be subject to an annually
               approved budget submitted by the Gaming Commission).

     Section 9.3 Mutual Covenant Not-to-Compete. Lakes agrees that, during the
term of this Agreement, neither it nor its Affiliates will finance, manage, or
consult in connection with any facility where Gaming Operations are or will be
conducted within a radius of twenty-five (25) miles from the Gaming Facility
Site without the prior written consent of Pawnee. Pawnee agrees that, during the
term of this Agreement, neither it nor its Affiliates will solicit or enter into
any negotiations or agreements with any person or company with respect to any
Gaming Operations to be conducted within twenty-five (25) miles of the Gaming
Facility Site, nor conduct any Gaming Operations within twenty-five (25) miles
of the Gaming Facility Site, without the prior written consent of Lakes.

                                   ARTICLE 10
                                EVENTS OF DEFAULT

     Section 10.1 Events of Default by Lakes. Each of the following occurring
prior the date on which the particular Project has been substantially completed
shall constitute a "Lakes Event of Default":

     (a)  A Material Breach by Lakes.

     (b)  Lakes violates any of the covenants in Section 9.1 of this Agreement,
          and sixty (60) days have passed following a request by Pawnee to Lakes
          to cure the violation, during which the violation has not been cured.

     (c)  Subject to Section 10.3, any license, permit or approval required to
          be received or maintained by Lakes to perform its obligations under
          this Agreement is denied, suspended, or revoked by proper and
          reasonable action of any state or federal


                                      -22-

<PAGE>

          Governmental Authority, and all rights to appeal or review the action
          have been exhausted.

     (d)  Lakes or any Affiliate of Lakes material to the uncompleted portion of
          the particular Project has: (i) filed for relief under the United
          States Bankruptcy Code or has suffered the filing of an involuntary
          petition under the Bankruptcy Code that is not dismissed within sixty
          (60) days after filing; (ii) a receiver appointed to take possession
          of all or substantially all of the property of Lakes or any Affiliate
          of Lakes material to the particular Project; or (iii) suffered an
          assignment for the benefit of creditors.

     Section 10.2 Cure of Lakes Default. Upon the occurrence of a Lakes Event of
Default, Pawnee may provide written notice to Lakes of Pawnee's intention to
terminate this Agreement and, if it is possible for Lakes to cure the Lakes
Event of Default, Lakes shall have thirty (30) days following receipt of the
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Lakes shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
The discontinuance or correction of a Lakes Event of Default shall constitute a
cure thereof. If Lakes fails to cure the Lakes Event of Default within any
applicable cure period as extended, Pawnee may: (a) suspend all performance of
Pawnee under this Agreement; (b) terminate this Agreement under Section 11.4; or
(c) pursue any other remedy available at law or in equity, subject to the
provisions of Section 12.1.

     Section 10.3 Events of Default by Pawnee. Each of the following shall
constitute a "Pawnee Event of Default":

     (a)  A Material Breach by Pawnee exists; or (ii) an "Event of Default" by
          Pawnee exists under the Pawnee Note, security agreement, dominion
          account agreement, mortgage or other document or instrument in favor
          of Lakes or its Affiliates and related thereto or this Agreement; or
          (iii) Pawnee Nation or Pawnee TDC shall be in default of any agreement
          now or hereafter executed by either of such entities in favor of Lakes
          or its Affiliates.

     (b)  The Gaming Commission or any other applicable governmental authority
          of the Pawnee Nation, in bad faith, without due process or
          unreasonably, denies, revokes, fails to renew or otherwise impairs any
          license, permit or approval required for Lakes or any Affiliate of
          Lakes to perform its obligations or enjoy its rights under this
          Agreement.

     (c)  Pawnee violates any of the covenants in Section 9.2 of this Agreement,
          and after sixty (60) days have passed following a request by Lakes to
          Pawnee to cure the violation, during which the violation has not been
          cured.


                                      -23-

<PAGE>

     (d)  Pawnee or any Affiliate of Pawnee material to the particular Project
          has: (i) filed for relief under the United States Bankruptcy Code or
          has suffered the filing of an involuntary petition under the
          Bankruptcy Code that is not dismissed within sixty (60) days after
          filing; (ii) a receiver appointed to take possession of all or
          substantially all of Pawnee's property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Compact (if in effect) is determined by any court of competent
          jurisdiction to be invalid and such determination becomes final and
          non-appealable.

     (f)  The Pawnee Nation is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     (g)  Any order or judgment of any court of competent jurisdiction enjoins
          the development of the particular Project in any material manner, and
          the injunction continues for thirty (30) days.

     Section 10.4 Cure of Pawnee Event Default. Upon the occurrence of a Pawnee
Event of Default, Lakes may provide written notice to Pawnee of such default
and, if it is possible for Pawnee, Pawnee TDC or Pawnee Nation to cure the
Pawnee Event of Default, Pawnee shall have thirty (30) days following receipt of
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Pawnee, Pawnee TDC or Pawnee
Nation shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days. Upon the occurrence of any of the events
described in Section 10.3 and during any applicable cure period, Lakes may
suspend its performance under this Agreement. The discontinuance or correction
of a Pawnee Event of Default shall constitute a cure thereof. If Pawnee, Pawnee
TDC or Pawnee Nation fails to cure the Pawnee Event of Default within any
applicable cure period as extended, Lakes may take any one or more of the
following actions: (a) suspend all performance of Lakes under this Agreement;
(b) declare all principal and interest accrued on all Pawnee Notes and any
Project Development Fees to be immediately due and owing, (c) terminate this
Agreement under Section 11.4; or (d) pursue any other remedy available by
agreement, at law or in equity, subject to the provisions of Section 12.1.

                                   ARTICLE 11
                                TERM OF AGREEMENT

     Section 11.1 Term. This Agreement shall become effective and binding upon
the parties on the Effective Date, and shall continue in effect for twelve (12)
years from the Effective Date or until the Project Development Fee(s) and the
Project Preliminary Development Loan(s) applicable hereunder have been fully
paid, whichever date is later, subject to earlier termination as provided in
Article 10 or this Article; provided that (a) all rights of any party to assert
a Claim


                                      -24-

<PAGE>

against the other shall survive the termination of this Agreement, and (b) all
provisions of Article 12 and Article 13 shall survive a termination.

     Section 11.2 Mutual Termination. This Agreement may be terminated at any
time by the mutual written consent of Lakes and Pawnee.

     Section 11.3 Termination by Lakes. This Agreement may be terminated upon
notice by Lakes to Pawnee if an uncured Pawnee Event of Default exists under
Section 10.2 and all applicable grace and cure periods have expired.

     Section 11.4 Termination by Pawnee. This Agreement may be terminated upon
notice by Pawnee to Lakes if an uncured Lakes Event of Default exists under
Section 10.1 and all applicable grace and cure periods have expired.

     Section 11.5 Buy-out Option. Following sixty (60) months of continuous
operation of the Project's gaming operations following the Opening Date, Pawnee
shall have the option to buy out the Lakes' remaining rights under this
Agreement for an amount equal to the present value, using a discount rate which
is the greater of either two percent (2%) above the prime interest rate of Chase
Manhattan Bank U.S.A., N.A. (or any successor bank) or the same rate as the
Project Permanent Financing for each Project in place at the time the buy-out
option is exercised of the Remaining Project Development Fees (as hereinafter
defined). The term "Remaining Project Development Fees" shall mean the total
Monthly Consulting Fixed Fees which would have been payable to Lakes for the
Project under Section 7.1(b) hereof for the balance of the term of this
Agreement,

                                   ARTICLE 12
DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT JURISDICTION;
                                  GOVERNING LAW

     Section 12.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and


                                      -25-

<PAGE>

          appropriateness by the arbitrators. Unless the parties otherwise agree
          to in writing, arbitration proceedings shall be held at Oklahoma City,
          Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality. Pawnee further agrees that any arbitration proceeding
          held in connection with any Claim may be consolidated with any other
          arbitration proceeding involving Lakes or its Affiliates and any of
          Pawnee's Affiliates.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 12 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  Pawnee hereby expressly waives, and also waives its right to assert,
          sovereign immunity and any and all defenses based thereon with respect
          to any Claims; and Pawnee hereby consents to (i) binding arbitration
          under the Commercial Arbitration Rules of the American Arbitration
          Association, (ii) empowering the


                                      -26-

<PAGE>

          arbitrators to take the actions and enforce the judicial remedies
          described in paragraph 5 of the Pawnee Resolution of Limited Waiver of
          Sovereign Immunity dated January 12, 2005 issued in connection with
          the execution of this Agreement, and (iii) judicial proceedings in or
          before the United States District Court for the Northern District of
          Oklahoma, or if that court determines it is without jurisdiction, then
          to the courts of the State of Oklahoma and all courts to which an
          appeal therefrom may be available, but solely to compel, enforce,
          modify or vacate any arbitration award.

     (g)  To the extent lawful in connection with any such Claims, Pawnee
          expressly waive the application of the doctrines of exhaustion of
          tribal remedies or comity that might otherwise require that Claims be
          heard first in tribal court or other tribal forum of Pawnee Nation.
          The waivers set forth herein only extend to claims or proceedings
          brought by Lakes and any award of damages against Pawnee shall be
          payable solely out of the Collateral.

     Section 12.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                   ARTICLE 13
                                  MISCELLANEOUS

     Section 13.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes may assign this Agreement
to a wholly owned subsidiary without Pawnee's consent; provided further that
Lakes shall remain obligated for the performance of the Lakes subsidiary
hereunder. Other than as expressly provided in this Section 13.1, any attempted
assignment or subcontracting without prior written consent shall be void.
Subject to the preceding requirements, this Agreement is binding upon and inures
to the benefit of the parties and their respective successors and assigns.

     Section 13.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:


                                      -27-

<PAGE>

     If to Pawnee:   Pawnee Chilocco Gaming Corporation
                     871 Little D. Drive, Building 68
                     P.O. Box 280
                     Pawnee, OK 74058

     With a Copy to: David J. Ketelsleger, Esq.
                     McAfee & Taft
                     Two Leadership Square
                     Tenth Floor
                     211 North Robinson
                     Oklahoma City, OK 73102-7103
                     (copy to counsel does not constitute notice to a party)

     If to Lakes:    Lakes Pawnee Consulting, LLC
                     130 Cheshire Lane
                     Minnetonka, MN 55305
                     Attn: Timothy J. Cope

     With a Copy to: Kevin C. Quigley, Esq.
                     Hamilton Quigley Twait & Foley PLC
                     W1450 First National bank Building
                     332 Minnesota Street
                     St. Paul, MN 55101-1314

          and        Brian J. Klein, Esq.
                     Maslon, Edelman, Borman & Brand, LLP
                     3300 Wells Fargo Center
                     90 South Seventh Street
                     Minneapolis, MN 55402-4140
                     (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 13.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 13.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 13.5 Force Majeure. No party shall be in default in the performance
due under this Agreement if that failure of performance is due to causes beyond
its reasonable control, including but not limited to acts of God, war,
terrorism, fires, floods, or accidents causing material damage to or destruction
of the Project Facilities.


                                      -28-

<PAGE>

     Section 13.6 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 13.7 Entire Agreement. This Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all
provisions of any prior agreements between the parties relating to the
development, financing, construction and equipping of any particular Project and
its Project Facilities, and any other matter addressed in this Agreement; but
shall specifically exclude any agreement related to the management of any
particular Project and its Project Facilities.

     Section 13.8 Indemnification by Lakes. Lakes shall indemnify Pawnee and
it's agents, enrolled members, officers, employees, consultants, and attorneys
(each a "Pawnee Indemnitee") from and against any and all damages, claims,
losses or expenses of whatever kind or nature, including attorneys' fees and
expenses incurred in defending those claims, losses or expenses, to the extent
they result from the gross negligence or willful misconduct of Lakes with
respect to (a) a particular Project or (b) non-performance of any of Lake's
obligations under this Agreement. Lakes shall have the sole right to control the
defense and settlement of any matter in which indemnification is required of
Lakes, and shall pay its attorneys' fees, provided that, with respect to those
matters, Lakes shall not be responsible for the attorneys' fees of attorneys
hired by the Pawnee Indemnitee.

     Section 13.9 Indemnification by Pawnee. Pawnee shall immediately indemnify
Lakes and its Affiliates, agents, officers, employees, consultants, and
attorneys ( each a "Lakes Indemnitee") from and against any and all damages,
claims, losses or expenses of whatever kind or nature, including attorneys' fees
and expenses as and when incurred in defending those claims, losses or expenses,
to the extent they result from (a) the gross negligence or willful misconduct of
Pawnee or the Development Committee with respect to (i) a particular Project or
(ii) the performance or non-performance of Pawnee's or Development Committee's
obligations under this Agreement, or (b) the performance by Lakes of any of its
obligations under this Agreement but excluding any claims, loss or expense
arising from the gross negligence or willful misconduct of Lakes. Pawnee and
Lakes shall consult and agree on the defense and settlement of any matter in
which indemnification is required of Pawnee, Lakes shall have the right to
retain its separate counsel to advise it thereon (but such counsel shall be at
Lakes' own expense), and upon the occurrence of any such claim, the parties
shall enter into a mutually acceptable agreement providing for the procedures by
which any such claims shall be prosecuted and related costs and expenses shall
be reimbursed. Lakes shall be listed as an additional insured on all insurance
policies with respect to any Project. Pawnee further agrees to indemnify and
hold each Lakes Indemnittee harmless from any and all liabilities, claims,
losses and expenses arising from any prior agreements entered into by Pawnee,
Pawnee TDC or Pawnee Nation with any Persons or entities in connection with
development, construction and/or operation of the Project Facilities of any
particular Project.

     Section 13.10 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.


                                      -29-

<PAGE>

     Section 13.11 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 13.12 Cooperation; Approvals. Each of the parties agrees to
cooperate in good faith with the other to timely implement the purposes of this
Agreement. Any consents or approvals required to be given in connection with
this Agreement shall not be unreasonably withheld or delayed by the parties or
their Affiliates.

     Section 13.14 No Management Contract or Grant of Proprietary Interest. The
parties agree that it is their intent that neither this Agreement nor any of the
Tribal Notes or and related security documents and instruments described herein
(individually or collectively) constitute a "Management Contract" within the
meaning of IGRA. Upon the Effective Date, the parties shall submit this
Agreement to the NIGC for review and determination that it is not a Management
Contract and therefore does not require the approval of the NIGC in order to be
valid, regardless of whether it constitutes a "collateral agreement" as that
term is defined in IGRA. Each party shall use its best efforts to pursue such
determination and timely execute, deliver, and if necessary, record any and all
additional instruments, certifications, and other documents as may be required
by the NIGC in order to issue such determination; provided that such required
instrument or other document shall not materially change the respective rights,
remedies or obligations of the parties under this Agreement. If the NIGC finds
that this Agreement does constitute a Management Contract within the meaning of
IGRA, then the parties shall immediately take all necessary steps to amend or
modify the Agreement in a way that preserves the economic benefits of the
transactions to both parties without constituting a Management Contract.

     Section 13.15 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                      -30-

<PAGE>

     The parties have executed this Gaming Development Consulting Agreement as
of the date stated in the introductory clause.

                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION


                                        By /s/ Monty Matlock
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Leslie Hand
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------

 [Signature Page to Pawnee Travel Plaza Gaming Development Consulting Agreement]


                                      -31-

<PAGE>

                                    EXHIBIT A
                               FORM OF PAWNEE NOTE


                                      -32-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.97
<SEQUENCE>32
<FILENAME>c92713exv10w97.txt
<DESCRIPTION>PAWNEE NOTE
<TEXT>
<PAGE>
                                                                   Exhibit 10.97

                                   PAWNEE NOTE

                                                                  Minnetonka, MN
                                                                January 12, 2005

     FOR VALUE RECEIVED, PAWNEE TRAVEL PLAZA GAMING CORPORATION ("MAKER"), A
WHOLLY-OWNED SUBSIDIARY OF THE PAWNEE TRIBAL DEVELOPMENT CORPORATION, EACH
CREATED UNDER THE CONSTITUTION OF AND A GOVERNMENTAL SUBDIVISION OF THE PAWNEE
NATION OF OKLAHOMA, A FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the
order of LAKES PAWNEE CONSULTING, LLC, A MINNESOTA LIMITED LIABILITY COMPANY
("LENDER"), in the United States of America, in immediately available funds, at
such place as the holder hereof may from time to time designate, or in the
absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the aggregate unpaid principal amount of all
advances made to Maker pursuant to the "Project Preliminary Development Loan" as
set forth in Article 3 of the Gaming Development Consulting Agreement dated
January 12, 2005 between the parties (the "Gaming Development Consulting
Agreement"), plus interest thereon from the date of such advances, in like
money, in accordance with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Gaming Development Consulting Agreement.

     2. Advances. Pursuant to the Gaming Development Consulting Agreement,
Lender has agreed to extend the Project Preliminary Development Loan to Maker,
such funds to be loaned in more than one advances (each, an "Advance") as
entered on the Schedule of Advances attached hereto as Schedule A. Each Advance
shall bear interest at the Interest Rate, as described herein, from and
including the date the proceeds of such Advance are advanced (such date the
"Funding Date" of such Advance) through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be limited to the Collateral as described in the
Gaming Development Consulting Agreement. Commencing on the twenty-fifth (25th)
day after the Opening Date for the Project, in the event the Project Preliminary
Development Loan has not previously been repaid through the Project Permanent
Financing, principal and interest on this Note shall be paid in twenty-four
equal monthly installments. Maker shall have the right to prepay all or any part
of this Pawnee Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity.

     4. Interest Rate. The Interest Rate means, as to each Advance, an interest
rate equal to the greater of the prime rate of Chase Manhattan Bank, N.A. (or
any successor Bank) plus two percent (2%), per annum or the same rate as the
Project Permanent Financing in place at the time of the advance, fixed as of the
first business day of each calendar month. Interest at the foregoing rate


                                      -1-

<PAGE>

shall accrue and be compounded annually and shall be payable solely from the
Collateral as provided in Gaming Development Consulting Agreement. Interest
shall be computed for the actual number of days elapsed on the basis of a year
consisting of 360 days. It is intended that the rate of interest hereon shall
never exceed the maximum rate, if any, which may be legally charged on the
Project Preliminary Development Loan evidenced by Pawnee Note ("Maximum Rate"),
and if the provisions for interest contained in this Pawnee Note would result in
a rate higher than the Maximum Rate, interest shall nevertheless be limited to
the Maximum Rate and any amounts which may be paid toward interest in excess of
the Maximum Rate shall be applied to the reduction of principal, or, at the
lawfully exercised option of the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books and on Schedule A attached hereto all Advances made to the Maker and all
payments of principal amounts in respect of such Advances, which shall be
presumptive evidence as to the outstanding principal amount of all Advances;
provided, however, that the failure to make such notation with respect to any
Advance or payments shall not limit or otherwise affect the obligations of
Maker.

     6. Default; Acceleration. If any Event of Default occurs in the payment of
any principal, interest or any other sums when due hereunder, or in the
performance of any covenant or agreement hereunder, and such default continues
beyond any applicable notice, grace and/or cure period, then the outstanding
principal amount of the Project Preliminary Development Loan, any interest
accrued thereon from time to time, and any other sums then remaining unpaid
hereunder, at the option of the holder hereof and without notice, shall become
immediately due and payable and Lender may exercise any other rights or remedies
available under the Gaming Development Consulting Agreement or applicable law.
Failure to exercise any such option shall not constitute a waiver of the right
to exercise the same at a later time or in the event of any subsequent default.
The following shall constitute "Events of Default" for purposes of this Pawnee
Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts due hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and


                                      -2-

<PAGE>

          such action or proceeding shall not have been dismissed within sixty
          (60) days; or

     (d)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing; or

     (e)  Any representation or warranty given to the Lender by Maker (or any of
          its representatives) in connection with entering into the Gaming
          Development Consulting Agreement and/or any borrowing thereunder, or
          given by an Affiliate of Maker in connection with any agreement
          executed by an Affiliate of Maker in favor of Lender or any Affiliate
          of Lender, or required to be furnished under the terms thereof, shall
          prove untrue or misleading in any material respect (as determined by
          Lender in the exercise of its reasonable judgment) as of the time when
          given or shall fail to be true and correct in all material respects at
          any time during the term of the agreement; or

     (f)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Gaming Development Consulting Agreement or
          under any other agreement entered into with or in favor of Lender or
          any Affiliate of Lender, or default by Maker's Affiliate under any
          agreement executed by an Affiliate of Maker in favor of Lender or any
          Affiliate of Lender, which default is not cured by Maker or its
          Affiliate as applicable within the applicable cure period after
          written notice of default is delivered to Maker or its Affiliate; or

     (g)  The Gaming Development Consulting Agreement shall be terminated by
          either the Maker or the Lender.

     7. Security. This Pawnee Note is secured by a security interest in the
Collateral granted by Maker to Lender pursuant to the Gaming Development
Consulting Agreement, including standard and customary dominion account
agreements/security agreements/mortgages or deed of trust necessary to evidence
and perfect Lender's liens on such Collateral.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Pawnee Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Pawnee Note and any other related documents, shall be cumulative and concurrent
and may be pursued singularly,


                                      -3-

<PAGE>

successively or together, at the sole discretion of the Lender, and may be
exercised as often as occasion therefor shall occur; and the failure to exercise
any such right or remedy shall in no event be construed as a waiver or release
thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS PAWNEE NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Pawnee Note.

     12. Applicable Law. This Pawnee Note shall be construed in accordance with
and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Pawnee Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Pawnee Note is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Pawnee Note to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that such portion, provision or
provisions shall be given force to the fullest possible extent that it or they
are legal, valid and enforceable, that the remainder of this Pawnee Note shall
be construed as if such illegal, invalid, unlawful, void or unenforceable
portion, provision or provisions were not contained herein, and that the rights,
obligations and interest of Maker and holder hereof under the remainder of this
Pawnee Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Pawnee Note shall be valid unless the same is in writing and signed by the
party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Pawnee Note and of every part hereof, and the time and schedule requirements set
forth herein are material terms of this Pawnee Note.


                                      -4-

<PAGE>

     16. Successors and Assigns. This Pawnee Note shall inure to the benefit of
and shall be binding on the parties hereto and their respective successors and
assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Pawnee Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 13.2 of the Gaming Development Consulting Agreement.

     18. Dispute Resolution Limited Waiver of Sovereign Immunity. Maker and
Lender agree that any dispute in connection with this Pawnee Note shall be
subject to the dispute resolution procedures and limited waiver of sovereign
immunity contained in Article 12 of the Gaming Development Consulting Agreement,
the terms of which are incorporated by reference herein.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                      -5-

<PAGE>

     IN WITNESS WHEREOF, Maker has caused this Pawnee Note to be executed and
delivered as of the date first above written.

                                        MAKER:

                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

<PAGE>

         [Signature Page to Pawnee Note (Travel Plaza) in favor of Lakes
                             Pawnee Consulting, LLC]
                                   Schedule A
                             (Schedule of Advances)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.98
<SEQUENCE>33
<FILENAME>c92713exv10w98.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.98

                           DOMINION ACCOUNT AGREEMENT
                        (Lakes Consulting - Travel Plaza)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 12, 2005 (the "Effective Date'"), between Pawnee Travel Plaza Gaming
Corporation ("Pawnee" and sometimes hereinafter referred to as the "Borrower"),
a wholly-owned subsidiary of the Pawnee Tribal Development Corporation ("Pawnee
TDC"), each created under the Constitution of and a governmental subdivision of
the Pawnee Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian
tribe, located in the State of Oklahoma, whose business office is located at 871
Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes Pawnee
Consulting, LLC, a Minnesota limited liability company (hereinafter referred to
as "Lakes"), whose business office is located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305, and when it has executed a counterpart signature page hereto,
the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is created under the Constitution of and a
governmental subdivision of the Pawnee Nation, a federally recognized Indian
tribe eligible for the special programs and services provided by the United
States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     WHEREAS, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation; and Pawnee TDC has established Pawnee as a legal entity which will own
and operate specified gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     WHEREAS, Lakes has entered into a Gaming Development Consulting Agreement
with Borrower dated January 12, 2005 (as heretofore and hereafter amended, the
"Consulting Contract"), pursuant to which Lakes is to provide certain
development financing and consulting services to Borrower.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of gross Revenues derived by
the Borrower with respect to each Project (as set forth in the Consulting
Contract), and to grant Lakes a first priority and perfected security interest
in such revenues subject only to Permitted Liens, each for the purposes and in
accordance with the terms set forth herein, as provided under the terms of the
Consulting Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Consulting
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Account Rights" shall have the meaning assigned to such term in Section
2.3 hereof.

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, Public Law
100-497.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean (i) all loans, compensation, fees, expenses and
other amounts owing by (a) Borrower to Lakes or its Affiliates under or with
respect to the Pawnee Note, and each of the other Transaction Documents, and (b)
the Pawnee Nation and/or Pawnee TDC to Lakes or its Affiliates under or with
respect to the Tribal Agreement or any other document or agreement executed in
favor of Lakes or its Affiliates by Pawnee Nation or Pawnee TDC in connection
with the Project, each of the foregoing, whether now existing or hereafter
incurred or arising, and (ii) together with any costs, expenses or other amounts
hereafter owing by the Borrower to Agent or Lakes pursuant to the terms of this
Agreement, each of the foregoing, whether now existing or hereafter incurred or
arising.


                                                                          Page 2

<PAGE>

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Consulting Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.

     "Project" shall have the meaning assigned to such term in the Consulting
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the gross Revenues (as such term is defined
in the Consulting Contract) of the Project, including without limitation credit
card receivables and other accounts receivable related to such project.

     "Resolution of Limited Waiver" shall mean that certain Resolution of the
Pawnee Travel Plaza Gaming Corporation Regarding Limited Waiver of Sovereign
Immunity - Resolution #05-03 - dated January 12, 2005, issued in connection with
the Transaction Documents.

     "Transaction Documents" shall mean each of this Agreement, the Consulting
Agreement, the Pawnee Notes, the Security Agreement, and any and all other
documents and agreements executed by Borrower in favor of Lakes or related
thereto or contemplated thereby (collectively, the "Transaction Documents").

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Agent hereby
acknowledges the security interest in the Collateral granted to Lakes by
Borrower. On the date of execution of this Agreement, the Borrower shall cause
to be delivered to Lakes (a) such financing statements and similar documents
necessary to perfect the security interest granted to Lakes pursuant to Section
3.1 hereof (the "Financing Statements") and (b) a legal opinion in form and
substance reasonably acceptable to Lakes, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by the Borrower, together with opinions as to the Borrower's
sovereign immunity waiver and noncontravention with laws and agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct any manager of the Project, and any other applicable parties to cause all
Project Revenues to be transferred to the Agent on each Business Day for deposit
into the Project Dominion Account. If any Project Revenues are initially
deposited in collection bank(s) (which shall be permitted


                                                                          Page 3

<PAGE>

provided the collecting bank(s) execute and deliver the Joinder Agreement
attached hereto as Exhibit A with the Borrower, Lakes and the collecting banks
in form mutually acceptable to each of such parties), the Borrower shall
transfer or cause to be transferred all such Project Revenues or other
Collateral, consisting of cash and other collected funds directly by wire
transfer of immediate available funds to the Project Dominion Account on each
Business Day. In the event that the Borrower receives any payment that should
have been deposited into the Project Dominion Account as provided pursuant to
this Agreement, the Borrower agrees that it will hold such amounts in trust for
the benefit of Lakes, and shall not commingle any such funds with any of its
funds or other property and shall immediately transfer such amounts to the Agent
for deposit into the Project Dominion Account. The Borrower agrees that the
Agent's officers, agents and employees are irrevocably authorized by it to
endorse for payment to the Agent any instruments received by the Agent for
deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Notwithstanding any
other term or provision contained herein or in the Consulting Contract, only
Borrower shall have the authority to make withdrawals from or exercise any other
rights (collectively, the "Account Rights") with respect to Project Dominion
Account; provided that in accordance with Sections 3.2 and 5.2 hereof, Lakes may
revoke such rights of Borrower to make withdrawals and transfers from the
Project Dominion Account. Upon Agent's receipt of a Notice of Exclusive Control
from Lakes, then in connection with any such withdrawals and transfers and any
other aspects of the Project Dominion Account, the Agent shall acknowledge and
comply with only the withdrawal requests and other directions received from
Lakes, except pursuant to an arbitration award made in an arbitration proceeding
to which Lakes and the Borrower are parties. Lakes acknowledges that when it
shall release any funds from the Project Dominion Account, then its security
interest in such funds shall also be deemed to have been released concurrently
therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of an Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a


                                                                          Page 4

<PAGE>

continuing first perfected security interest to Lakes, for and on behalf of
Lakes itself and its Affiliates, subject only to Permitted Liens, of all of the
Borrower's right, title and interest in and to the Collateral. The Borrower
represents and warrants that the Borrower is (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except for Permitted Liens; and that
no financing statement, notice of lien, mortgage, deed of trust or instrument
similar in effect covering the Collateral or any portion thereof or any proceeds
thereof ("LIEN NOTICE") exists or is on file in any public office, except as
relates to Permitted Liens and except as may have been filed in favor of Lakes
relating to this Agreement or related agreements, or for which duly executed
termination statements have been delivered to Lakes for filing. Without the
prior written consent of Lakes, Borrower will not in any way encumber, or
hypothecate, or create or permit to exist, any lien, security interest, charge
or encumbrance or adverse claim upon or other interest in the Collateral, except
for Permitted Liens, and the Borrower will defend the Collateral against all
claims and demands of all persons at any time claiming the same or any interest
therein, except as expressly provided herein. The Borrower will not permit any
Lien Notices to exist or be on file in any public office with respect to all or
any portion of the Collateral except, in each case, for Lien Notices of holders
of Permitted Liens or encumbrances permitted by the Consulting Contract or any
other Transaction Document or except as may have been filed by or for the
benefit of Lakes relating to this Security Agreement or related agreements. The
Borrower shall promptly notify Lakes of any attachment or other legal process
levied against any of the Collateral and any information received by any
Borrower relative to the Collateral, which may in any material way affect the
value of the Collateral or the rights and remedies of Lakes in respect thereto.

          If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:


                                                                          Page 5

<PAGE>

               (i) to obtain and adjust insurance required under this Agreement;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
until such time as Lakes delivers a written notice to Agent and the Borrower in
accordance with Section 5.2 that Lakes is thereby exercising exclusive control
over the Project Dominion Account ("NOTICE OF EXCLUSIVE CONTROL"), provided that
the proceeds of any such investments are deposited in or credited to the Project
Dominion Account contemporaneously with such transaction; and provided, further,
such investment instructions shall not affect the type or nature of Collateral
for attachment and perfection purposes under the Oklahoma Uniform Commercial
Code (as may be amended from time to time) or any other applicable law. After
Agent receives the Notice of Exclusive Control, it will immediately cease
complying with any investment instructions concerning Project Dominion Account
originated by Borrower or its representatives and shall comply with only such
investment instructions as are originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Consulting Contract have been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Consulting Contract.


                                                                          Page 6

<PAGE>

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or Lakes may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach by
Borrower and termination of the Consulting Contract, the Borrower will furnish
the following to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of each Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,


                                                                          Page 7

<PAGE>

               shall be and remain subject to the provisions of Section 13.15 of
               the Consulting Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager of each Project, substantially in the form
               set forth in Exhibit B stating that, except as explained in
               reasonable detail in such certificate, all gross Project Revenues
               with respect to each Project has been deposited into the Project
               Dominion Account for the period covered by such financial
               statement. If such certificate discloses an exception to such
               certification, such certificate shall set forth what action the
               Borrower has taken or proposes to take with respect thereto.

     (d) Insurance. The Borrower shall cause to be maintained insurance on each
Project and related assets with such coverages and in such amounts as are
reasonably satisfactory to Lakes, including without limitation, loss of business
income coverage, and naming Lakes as an additional insured, lender loss payee
and mortgagee, if applicable. Upon request, the Borrower shall provide to the
Agent and Lakes certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended an


                                                                          Page 8

<PAGE>

additional reasonable period of time for so long as the Borrower shall be using
diligent efforts to effect a cure thereof but no more than an additional sixty
(60) days.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under any Pawnee Note or other
Transaction Document and shall have continued beyond any applicable grace or
cure period.

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower, and to
apply the same towards the repayment of the Obligations, and to endorse in the
name of the Borrower any checks, drafts, notes or other instruments or documents
received in payment of or on account of the Project Revenues or other
Collateral; and any such proceeds so received and prepaid shall be applied to
installments of principal on the Obligations in the inverse order of their
maturity; and provided further that Lakes may obtain any injunctive or other
relief as is necessary for the enforcement of this Agreement and the terms and
provisions set forth herein, and may exercise such other rights and remedies
available by law or agreement; PROVIDED, HOWEVER, that notwithstanding any term
or provision contained herein, Lakes shall take all steps necessary to continue
to permit and cause the necessary withdrawals and transfers to be made from the
Project Dominion Account in accordance with Section 5.3 hereof; and in no event
shall Lakes exercise any remedy against the Borrower (excluding other third
parties) with respect to the Project Revenues other than such remedies as are
necessary to require their deposit into the Project Dominion Account or seeking
an accounting and turnover of any Project Revenues held in trust by the Borrower
as required under Section 2.2 hereof until such time that the Borrower shall
have ceased business operations or in accordance with Section 5.3 it is
determined that any portion thereof is no longer economically feasible to
operate at the Project, at which time Lakes may exercise all rights and remedies
under applicable law or by agreement and apply all proceeds of the Collateral to
the repayment of the Obligations. Borrower agrees that, to the extent notice of
sale shall be required by law with respect to the disposition of any Collateral,
at least ten (10) calendar days notice to the Borrower of the time and place of
any public sale or the time after which a private sale is to be made shall
constitute reasonable notification. Lakes agrees that it shall withdraw and
terminate any Notice of Exclusive Control at such time that all outstanding
Events of Default have been cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and


                                                                          Page 9

<PAGE>

in exercising any such powers or authority, the right to pay all expenses
incurred in connection therewith, including attorneys' fees. Borrower hereby
agrees that it shall be bound by any such payment made or incurred or act taken
by Lakes hereunder and shall reimburse Lakes for all reasonable payments made
and expenses incurred under this Agreement, which amounts shall be secured under
this Agreement. Lakes shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WITHDRAWALS AFTER DEFAULT/TERMINATION. Upon the occurrence of
an Event of Default and if Lakes shall issue the Notice of Exclusive Control to
Agent, Lakes and Borrower agree that until all obligations under the Transaction
Documents have been indefeasible paid, then during any applicable cure period
related thereto or if the Consulting Contract is terminated, (a) Lakes shall
permit the release of and turnover to Borrower monthly of such funds from the
Project Dominion Account as are reasonably necessary to pay normal and customary
operating costs and expenses related to the operation of the Project, excluding
any amounts that are payable to the Borrower, the Pawnee TDC, the Pawnee Nation
or any other affiliate of any of such parties and excluding debt service on any
indebtedness for borrowed money or capital leases except as otherwise approved
by Lakes in writing (collectively, the "Permitted Operating Costs"); and in
connection therewith, Borrower shall provide a proposed operating expense budget
to Lakes for its approval, which shall be updated from time to time at Lakes
request and any funds provided to Borrower shall be spent, used and applied only
in accordance with such budget; and (b) to the extent economically feasible (as
hereinafter defined), Borrower agrees to continue to operate and maintain the
Project and Project Facilities in accordance with reasonable industry standards,
and as to any portions of the Project Facilities that are no longer economically
feasible to operate, Borrower and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Project Dominion Account and disbursed in accordance with
the same terms and provisions set forth in clause (a) above, provided however
that such liquidation


                                                                         Page 10

<PAGE>

proceeds shall be excluded from net total revenues for purposes of calculating
the management compensation of any manager of the Project; and Borrower shall
keep the Project Facilities and all related assets insured for the coverages and
amounts required by this Agreement and name Lakes as an additional insured,
lender loss payee and mortgagee, as applicable and provide evidence thereof upon
request until all amounts owing to Lakes have been paid in full, and if any
portion of the Project assets are damaged by any casualty and it is economically
feasible for Borrower to continue to operate such damaged assets, then Borrower
shall repair and reconstruct such operations that were damaged and are to be
continued, and any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Project Dominion Account and disbursed in accordance with the same terms and
provisions set forth herein, provided however that such excess proceeds shall be
excluded from net total revenues for purposes of calculating the management
compensation of any manager of the Project. As used herein, the term
"economically feasible" shall mean that the gross Revenues derived from any
applicable operations is in excess of that needed to pay the Permitted Operating
Costs for such operations.

     Section 5.4 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.


                                                                         Page 11

<PAGE>

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement. If Borrower shall fail to
pay any of such costs when due, Lakes may make a withdrawal of proceeds from the
Project Dominion Account in an amount sufficient to cause the payment of the
same or reimburse Lakes for any such payment.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,
administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the


                                                                         Page 12

<PAGE>

Borrower shall not be and Lakes shall be responsible for such related costs and
expenses. If Borrower shall fail to pay any of such costs when due, Lakes may
make a withdrawal of proceeds from the Project Dominion Account in an amount
sufficient to cause the payment of the same or reimburse Lakes for any such
payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days after the date of this Agreement, Borrower shall select an eligible
financial institution to act as the agent (the "Agent") under this Agreement and
cause the Agent to execute a counterpart signature page to this Agreement,
thereby becoming a party hereto. Thereafter, there shall at all times be an
Agent hereunder. Any such Agent shall be a financial institution organized and
doing business under the laws of the United States of America or of any State,
having a combined capital, undivided profits and surplus of at least
$500,000,000. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of


                                                                         Page 13

<PAGE>

resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower (so long as a Notice of
Exclusive Control has not been issued by Lakes to the Agent) and Lakes delivered
to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.

                                    ARTICLE 7
                                  MISCELLANEOUS


                                                                         Page 14

<PAGE>

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Pawnee Travel Plaza Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Lakes:           Lakes Pawnee Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN 55305
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as


                                                                         Page 15

<PAGE>

to such jurisdiction, be ineffective to the extent of such prohibition without
invalidating the remaining provisions hereof, provided, however that where the
provisions of any such applicable law may be waived, they hereby are waived by
the Parties to the fullest extent permitted by law to the end that this
Agreement shall be deemed to be a valid and binding agreement in accordance with
its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Consulting Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient. No failure on the part of the Agent or
Lakes to exercise and no delay in exercising, any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power or right preclude any other or further exercise thereof of any other power
or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the dominion account agreement referred
to in Section 3.1(g) of the Consulting Contract. As such and without limiting
the scope of such Consulting Contract, the provisions of Article 12 of the
Consulting Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration and jurisdiction provisions contained
therein and the Resolution of Limited Waiver. This Agreement and the Project
Dominion Account will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles and without limiting
the foregoing, the Oklahoma Uniform Commercial Code (as may be amended form time
to time) notwithstanding any provision therein or other applicable law that
would otherwise make such laws inapplicable to the Borrower. The parties hereto
may not change the law governing this Agreement and the Project Dominion Account
without express written consent of the Borrower, Agent and Lakes.


                                                                         Page 16

<PAGE>

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Consulting Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: ________, 200_

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated January 12, 2005 (as amended or otherwise modified from time to time, the
"Dominion Agreement") by and among Pawnee Travel Plaza Gaming Corporation
("Borrower"), Lakes Pawnee Consulting, LLC ("Lakes") and
____________________________________ ("Agent"), the Collecting Bank, must
execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and consulting services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No. __________
          maintained by the Borrower with the Collecting Bank (such account,
          together with any replacement thereof shall hereinafter be referred to
          as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                           Bank
                                        ----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Pawnee Travel Plaza Gaming Corporation
(the "Borrower"), do hereby provide this Compliance Certificate in connection
with that certain Dominion Account Agreement dated January 12, 2005 (the
"Dominion Agreement"), by and between the Borrower, Lakes, and
__________________________ Bank (the "Bank"); capitalized terms used but not
otherwise defined herein shall have the meaning set forth in the Dominion
Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No. _____________
          with the Bank.

                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.99
<SEQUENCE>34
<FILENAME>c92713exv10w99.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                   Exhibit 10.99

                               SECURITY AGREEMENT
                        (LAKES CONSULTING - TRAVEL PLAZA)

          This Security Agreement is made and entered into on January 12, 2005,
by and between Pawnee Travel Plaza Gaming Corporation (hereinafter referred to
as "Pawnee" or "Debtor"), a wholly-owned subsidiary of the Pawnee Tribal
Development Corporation ("Pawnee TDC"), each created under the Constitution of
and a governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee
Nation"), a federally recognized Indian tribe, whose business office is located
at 871 Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes
Pawnee Consulting, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes" or "Secured Party"), whose business office is located at
130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the Constitution of and a governmental
subdivision of the Pawnee Nation, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into a Gaming Development Consulting
Agreement with Debtor dated January 12, 2005 (as heretofore and hereafter
amended, the "Consulting Contract"), pursuant to which Lakes is to provide
certain development financing and consulting services to Debtor as more
specifically described therein.

     WHEREAS, pursuant to the Consulting Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Consulting Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges and
grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the Debtor's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each case whether now
owned or hereafter acquired by Debtor in order to secure the payment and


                                  Page 1 of 15

<PAGE>

performance of the obligations of Debtor to Secured Party described in Section 3
herein below. On the date of execution of this Agreement, Debtor shall cause to
be delivered to Secured Party: (a) such financing statements and similar
documents necessary to perfect the security interest granted to Secured Party
pursuant to this Agreement (the "Financing Statements"), and (b) a legal opinion
in form and substance reasonably acceptable to Secured Party, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by Debtor, together with opinions as to Debtor's
sovereign immunity waiver and non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) each Project, Gaming
Facility Site and/or Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral"):

          (a) any Furnishings and Equipment (as defined in the Consulting
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Consulting Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "Project" means each business enterprise of the Debtor now or
hereafter created to engage in Class II Gaming and III Gaming (as defined in the
Indian Gaming Regulatory Act of 1988, Public Law 100-497 ("IGRA")) at the
Project's Gaming Facility, and to conduct the operations of any Ancillary
Facilities of the Project, including, but not limited to, operating and managing
office space, kids arcade, child care facility, hotel with swimming pool and
golf course, restaurant, RV park, retail stores, entertainment facilities, or
the sale of fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs.

          "Project Facilities" means the buildings, structures and improvements
to be constructed and used by the Project for its gaming and ancillary
operations.


                                  Page 2 of 15

<PAGE>

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Pawnee Notes, the
Consulting Contract, this Agreement, and each dominion account agreement,
mortgage, or other document or instrument in favor of Secured Party or its
Affiliates (as such term is defined in the Consulting Contract) and related
thereto or hereto (collectively, the "Transaction Documents"), and (b) the
Pawnee Nation and/or Pawnee TDC to Secured Party or its Affiliates under or with
respect to the Tribal Agreement or any other document or agreement executed in
favor of Secured Party or its Affiliates by Pawnee Nation or Pawnee TDC in
connection with the Project, each of the foregoing, whether now existing or
hereafter incurred or arising, (ii) any and all sums advanced by Secured Party
in order to preserve the Collateral or preserve Secured Party's security
interest in the Collateral (or the priority thereof) and (iii) the expenses of
retaking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, of any proceeding for the collection or
enforcement of any indebtedness, obligations or liabilities of Debtor referred
to above, or of any exercise by Secured Party of its rights hereunder, together
with reasonable attorneys' fees and disbursements and court costs (collectively,
the "Secured Obligations"); PROVIDED HOWEVER, Secured Party agrees to terminate
this Security Agreement upon request if Debtor has satisfied the following
conditions: (a) all Secured Obligations have been repaid in full to Secured
Party and Secured Party has no further obligation, if any, to make advances
under the Consulting Contract with respect thereto, and (b) the Consulting
Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

     4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 9.2 of the Consulting Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and perform this Security Agreement. This Security Agreement constitutes a
legally valid and binding


                                  Page 3 of 15

<PAGE>

obligation of the Debtor, enforceable against the Debtor in accordance with its
terms subject to any limitations set forth in the Resolution of Limited Waiver
dated December 30, 2004 of the Debtor related to and approving the Transaction
Documents (the "Resolution of Limited Waiver"). Subject to the completion of the
items identified in Section 4(c) below, the provisions of this Security
Agreement are effective to create in favor of Secured Party a valid and
enforceable first, prior and perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default under, or constitute an event
which with notice or lapse of time or both will result in a breach of or
constitute a default


                                  Page 4 of 15

<PAGE>

under, any agreement, indenture, mortgage, deed of trust, equipment lease,
instrument or other document to which Debtor is a party, conflict with or
require approval, authorization, notice or consent under any law, order, rule,
regulation, license or permit applicable to Debtor of any court or any federal
or state government, regulatory body or administrative agency, or any other
governmental body having jurisdiction over Debtor or its properties, or require
notice, consent, approval or authorization by or registration or filing with any
person or entity (including, without limitation, any stockholder or creditor of
Debtor) other than any notices to Debtor from Secured Party required hereunder
except as may be agreed to by Debtor and Secured Party. Except for the Permitted
Liens, none of the Collateral is subject to any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor is
a party that may restrict or inhibit Secured Party's rights or ability to sell
or dispose of the Collateral or any part thereof after the occurrence of an
Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than 21 days after a
request by Secured Party, procure or execute and deliver all further instruments
and documents (including, without limitation, notices, legal opinions, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements) necessary or appropriate to and take any other actions which are
necessary or, in the judgment of Secured Party, desirable or appropriate to
perfect or to continue the perfection, priority and enforceability of Secured
Party's security interests in the Collateral, to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, to protect the Collateral against the rights, claims or interests of
third persons, or to effect or to assure further the purposes and provisions of
this Security Agreement, and will pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted


                                  Page 5 of 15

<PAGE>

hereby; (ii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices as may be necessary or
desirable, which Secured Party may reasonably request in order to perfect and
preserve the perfection and priority of the security interests granted or
purported to be granted hereby; (iii) if any Collateral shall be evidenced by a
promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for liens permitted by and subject to the terms of
Section 9.2 of the Consulting Contract ("Permitted Liens"), and the Debtor will
defend the Collateral against all claims and demands of all persons at any time
claiming the same or any interest therein, except as expressly provided herein.
Debtor will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or except as may have been
filed by or for the benefit of Secured Party relating to this Security Agreement
or related agreements. Debtor shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor relative to the Collateral, which may in any
material way affect the value of the Collateral or the rights and remedies of
Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or


                                  Page 6 of 15

<PAGE>

otherwise disposed of in violation of these provisions, the security interest of
Secured Party shall continue in such Collateral or part thereof notwithstanding
such sale, transfer, assignment, exchange or other disposition, and Debtor will
hold the proceeds thereof in a separate account for Secured Party's benefit.
Debtor will, at Secured Party's request, transfer such proceeds to Secured Party
in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Consulting Contract, Debtor
will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Consulting
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance on each Project
and related assets with such coverages and in such amounts as are reasonably
satisfactory to Secured Party, including without limitation, loss of business
income coverage, and naming Secured Party as an additional insured, lender loss
payee and mortgagee, if applicable. Upon request, the Debtor shall provide to
the Secured Party certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.;

          (j) Except as expressly permitted by the Consulting Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party' s sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than


                                  Page 7 of 15

<PAGE>

thirty (30) days delinquent and will in a timely manner record and assign to
Secured Party, to the extent and at the earliest time permitted by law, any such
liens and rights to under such guaranties;

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and


                                  Page 8 of 15

<PAGE>

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

     6. DEFAULTS AND REMEDIES

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Consulting Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor expressly covenants and agrees that Secured Party may, at
its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Consulting Contract is terminated and either (i) the the
Gaming Facility has not opened for business to the general public, or (ii) the
Debtor does not or at any time fails to continue operations of Class II Gaming
and/or Class III Gaming at the Project's Gaming Facility or any material portion
of the Project Facilities, Secured Party may immediately take possession of any
of the Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's places of business, premises and property to exercise Secured
Party's rights hereunder; and without notice (except as specified below), sell
the Collateral or any part thereof in one or more parcels at one or more public
or private sales, at any of Secured Party's offices or elsewhere, at such time
or times, for cash, on credit or for future delivery,


                                  Page 9 of 15

<PAGE>

and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor acknowledges and agrees that, to the extent notice of
sale shall be required by law, at least ten (10) days' written notice to Debtor
of the time and place of any public sale or of the date on or after which any
private sale is to be made shall constitute reasonable notification. Any public
sale shall be held at such time or times during ordinary business hours and at
such place or places as Secured Party may fix in the notice of such sale.
Notwithstanding the foregoing, Secured Party shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. Secured Party
may, without notice or publication, adjourn any public or private sale, or cause
the same to be adjourned from time to time by announcement at the time and place
fixed for sale or, with respect to a private sale, after which such sale may
take place, and any such sale may, without further notice, be made at the time
and place to which it was so adjourned or, with respect to a private sale, after
which such sale may take place. Each purchaser at any such sale shall hold the
property sold free from any claim or right on the part of Debtor, and the Debtor
hereby waives, to the full extent permitted by law, all rights of stay and/or
appraisal which Debtor now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted. The Debtor also hereby
waives any claims against Secured Party arising by reason of the fact that the
price at which any Collateral may have been sold at a private sale was less than
the price which might have been obtained at a public sale, even if Secured Party
accepts the first offer received and does not offer such Collateral to more than
one offeree. The parties hereto agree that the notice provisions, method, manner
and terms of any sale, transfer or disposition of any Collateral in compliance
with the terms set forth herein or any other provision of this Security
Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and


                                 Page 10 of 15

<PAGE>

neither the Secured Party nor any of their officers, directors, trustees,
employees, representatives or agents shall, in the absence of willful misconduct
or gross negligence, be responsible to the Debtor for any act or failure to act
pursuant to this Section 6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:          Pawnee Travel Plaza Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Secured Party:   Lakes Pawnee Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center


                                 Page 11 of 15

<PAGE>

                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Consulting Contract, Debtor shall not assign any of its interest under this
Security Agreement without the prior written consent of Secured Party. Any
purported assignment inconsistent with this provision shall, at the option of
Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way


                                 Page 12 of 15

<PAGE>

be affected or impaired thereby and shall nonetheless remain in full force and
effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured
Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms hereof, and execute and deliver to Debtor such documents as
Debtor may reasonably request to


                                 Page 13 of 15

<PAGE>

evidence such termination. Such reassignment and redelivery shall be without
warranty by or recourse to Secured Party, and shall be at the expense of Debtor;
provided, however, that this Security Agreement (including all representations,
warranties and covenants contained herein) shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by Secured
Party in respect of the indebtedness and obligations secured hereunder is
rescinded or must otherwise be restored or returned by Secured Party upon or in
connection with the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Debtor or any other person or upon or in connection with the
appointment of any intervenor or conservator of, or trustee or similar official
for, Debtor or any other person or any substantial part of its assets, or
otherwise, all as though such payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the security agreement referred to in
the Consulting Contract. As such and without limiting the scope of such
agreements, the provisions of Article 12 of the Consulting Contract apply to
this Agreement and are hereby incorporated by reference, including, without
limitation, the limited sovereign immunity waiver, limitations on recourse and
arbitration provisions contained therein and the Resolution of Limited Waiver.
This Agreement will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles. The parties hereto may
not change the law governing this Agreement without express written consent of
the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION

ATTEST:


By: /s/ Leslie Hand                     By: /s/ Monty Matlock
    ---------------------------------       ------------------------------------
Name: Leslie Hand                       Name: Monty Matlock
      -------------------------------         ----------------------------------
Its: President                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES PAWNEE CONSULTING, LLC

ATTEST:


By: /s/ Kevin Kean                      By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Kevin Kean                        Name: Timothy J. Cope
      -------------------------------   Title: President and
Its:                                           Chief Financial Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
          (PAWNEE TRAVEL PLAZA GAMING CORPORATION COLLATERAL LOCATIONS)

1.   ____________________________________________________, OKLAHOMA

2.   ____________________________________________________, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.100
<SEQUENCE>35
<FILENAME>c92713exv10w100.txt
<DESCRIPTION>MANAGEMENT AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.100

                              MANAGEMENT AGREEMENT

                              FOR A GAMING FACILITY
                                       AND
                          RELATED ANCILLARY FACILITIES

                                     BETWEEN

                     PAWNEE TRAVEL PLAZA GAMING CORPORATION,
                        A WHOLLY-OWNED SUBSIDIARY OF THE
                     PAWNEE TRIBAL DEVELOPMENT CORPORATION,
                        A GOVERNMENTAL SUBDIVISION OF THE
                           PAWNEE NATION OF OKLAHOMA,
                          A FEDERALLY RECOGNIZED TRIBE

                                       AND

                          LAKES PAWNEE MANAGEMENT, LLC
                      A MINNESOTA LIMITED LIABILITY COMPANY

                             DATED: JANUARY 12, 2005


                                      -1-

<PAGE>

     THIS MANAGEMENT AGREEMENT, is made and entered into this 12th day of
January, 2005 by and between Pawnee Travel Plaza Gaming Corporation ("Pawnee"),
a wholly owned subsidiary of the Pawnee Tribal Development Corporation ("Pawnee
TDC"), each created under the Constitution of and a governmental subdivision of
the Pawnee Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian
tribe, located in the State of Oklahoma, with business offices located at 871
Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes Pawnee
Management, LLC, a Minnesota limited liability company (hereinafter referred to
as "Lakes"), whose business office is located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established Pawnee, a wholly-owned subsidiary of Pawnee
TDC and tribally-chartered corporation, as the legal entity which will own and
operate certain gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     B. The United States government holds lands in the State of Oklahoma in
trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     C. In compliance with the Indian Gaming Regulatory Act of 1988, P.L.
100-497, 25 U.S.C. Section 2701 et seq. as it may from time to time be amended,
the governing body of the Pawnee Nation has enacted a tribal ordinance
regulating the operation of gaming activities conducted on Pawnee Nation "Indian
lands" (hereinafter referred to as the "Gaming Ordinance"), creating the Pawnee
Nation Gaming Commission, and authorizing Class II and Class III gaming on its
"Indian lands" subject to the provisions of the Gaming Ordinance and a
Tribal-State Compact or gaming procedures issued by the Secretary of the U.S.
Department of the Interior.

     D. The Pawnee Nation is committed to using any gaming activities to provide
employment and improve the social, economic, education, and health needs of its
members; to increase the revenues of the tribe; and to enhance the Pawnee
Nation's economic self-sufficiency and self-determination. The Pawnee gaming
projects are expected to generate substantial revenues for the Pawnee TDC, and
therefore significantly improve the social, economic and health conditions of
present and future tribal members, while strengthening the Pawnee Nation's
overall economic self-sufficiency and self-determination.


                                      -2-

<PAGE>

     E. Pawnee presently lacks the resources to operate a gaming operation on
its own and desires to retain the services of a management company, with
knowledge and experience in the gaming industry, to manage and operate certain
of its gaming operations and related resort facilities.

     F. Lakes has represented to Pawnee that it has the managerial capacity to
commence operation of the Project's Gaming Facility and Ancillary Facilities (as
defined herein); and Pawnee has selected Lakes, and Lakes agrees, to provide the
management expertise necessary to the conducting of successful tribal gaming
operations at the Project's Gaming Facility and the successful operation of its
Ancillary Facilities.

     G. This Management Agreement shall become effective when all the necessary
approvals listed in Section 2.19 are received (the "Effective Date") and shall
continue for a term as described in Section 2.19, unless otherwise provided in
this Management Agreement.

     H. This Management Agreement is entered into pursuant to the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as that
statute may be amended. All gaming conducted at the Gaming Facility (as defined
herein) will at all times comply with the IGRA, applicable tribal law and the
Tribal-State Compact or gaming procedures issued by the Secretary, if any.

     J. Any dispute regarding this Management Agreement between the parties or
any other Transaction Documents is to be subject to the dispute resolution and
governing law provisions contained herein, as well as the Resolution of Limited
Waiver attached hereto.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     As they are used in this Management Agreement, the terms listed below shall
have the meaning assigned to them in this Article:


                                      -3-

<PAGE>

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Project's Gaming Facility; provided, however, unless the
parties otherwise agree, the term "Ancillary Facilities" shall not include any
of the Pawnee Tribe's existing enterprises consisting of fuel and retail sales
made at the existing U.S. Hwy 412 & State Hwy 18 "Travel Plaza" currently
operated by the Pawnee TDC or retail sales made at its existing "Trading Post"
convenience store operated by the Pawnee TDC as currently constructed at this
time.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Class II Gaming" means games as defined in 25 U.S.C. Section 2703(7)(A),
as such law may be amended and as defined by the National Indian Gaming
Commission in 25 C.F.R. Section 502.3 and amendments thereto, but only to the
extent such games are authorized by tribal ordinance and licensed by the Gaming
Commission.

     "Class III Gaming" means all gaming that is not Class I or Class II Gaming
as defined in the IGRA, including, but not limited to, the forms of gaming
listed as Class III games by the National Indian Gaming Commission in 25 C.F.R.
Section 502.4 and amendments thereto, but only to the extent such gaming is
allowed by a Tribal-State Compact or gaming procedures issued by the Secretary,
tribal ordinance, and licensed by the Gaming Commission.

     "Commencement Date" means the first day that Lakes is legally able to
commence management of the Class II and/or Class III gaming operations conducted
at the Project's Gaming Facility under all Legal Requirements.

     "Costs of Gaming Operation" means the total of all expenses for the
operation of the Class II and/or Class III Gaming activities conducted at the
Project's Gaming Facility pursuant to Generally Accepted Accounting Principles
("GAAP"), including but not limited to the following: (1) fees imposed upon the
Gaming Facility by the National Indian Gaming Commission based upon its gross
receipts from Class II and/or Class III Gaming activities; (2) any contributions
and license/regulatory fee reimbursements payable to the State pursuant to a
Tribal-State Compact; (3) the amount, if any, required by a Tribal-State Compact
to fund or support programs for the treatment and assistance of compulsive
gamblers and for the prevention of compulsive gambling; (4) license or other
fees for background investigations upon "key employees" and "primary management
officials" as defined in 25 C.F.R. Section 502.14 and Section 502.19; (5)
depreciation and


                                      -4-

<PAGE>

amortization applicable to the Gaming Facility based upon an assumed thirty (30)
years life consistent with GAAP, and depreciation and amortization of all other
assets (including without limitation all capital replacements and improvements,
and fixtures, furnishings and equipment) located therein in accordance with
GAAP; (6) costs of administration, recruiting, hiring, firing and training
employees working in or for the Gaming Facility's Class II and/or Class III
Gaming activities; (7) compensation and benefits to Gaming Facility employees;
(8) reasonable and customary regulatory fees imposed on the Gaming Facility by
the Gaming Commission (which amounts shall be subject to the provisions of
Section 5.1 contained herein), (9) management fees to be paid Lakes under
Section 5.5(b) hereof; and (10) total gaming-related costs, fees and expenses,
including, without limitation: materials, supplies, inventory, utilities,
repairs and maintenance (excluding capital replacements, the costs of which
shall be amortized as hereinabove provided), insurance and bonding, marketing,
advertising, annual audits, accounting, legal or other professional and
consulting services, security or guard services, and such other costs, expenses
or fees necessarily, customarily and reasonably incurred in the operation of the
Class II and/or Class III Gaming activities conducted at the Gaming Facility,
and reasonable and necessary travel expenses incurred subsequent to the
Commencement Date for officers and employees of Lakes and authorized
representatives of Pawnee in connection with the Gaming Facility's operations;
provided, however, that "Costs of Gaming Operation" shall specifically not
include any license fees or costs of Lakes or its employees in connection with
licensing with either the NIGC or Gaming Commission.

     "Costs of Ancillary Operations" means all expenses and costs pursuant to
Generally Accepted Accounting Principles incurred in operating the Project's
Ancillary Facilities in which neither Class II Gaming nor Class III Gaming is
conducted, including, without limitation: (1) depreciation and amortization
applicable to such non-gaming facilities based upon an assumed thirty (30) years
life consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(2) all employment costs relating to non-gaming employees working in or for such
commercial business facilities; (3) management fees to be paid Lakes under
Section 5.5(b) hereof; (4) non-gaming supplies and materials, insurance and
other non-gaming costs reasonably and customarily incurred in operation of the
Ancillary Facilities in which neither Class II nor Class III Gaming may be
conducted.

     "Dominion Account" shall have the meaning described in Section 2.8(a)
herein.

     "Dominion Account Agreement" shall mean the Dominion Account Agreement to
be executed by Pawnee in favor of the Lakes in a form to be agreed to by Pawnee
and Lakes together with all amendments, substitutions and renewals thereof.

     "Effective Date" means the effective date of this Management Agreement as
determined pursuant to Section 2.19 herein.

     "Fiscal Year" means the accounting year used for the operation of the
Project as agreed upon by Lakes and Pawnee.


                                      -5-

<PAGE>

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project in accordance with the
standards set forth in this Management Agreement, including, without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project in accordance with the standards set forth in this
     Management Agreement.

     "Gaming Commission" means the Pawnee Nation Gaming Commission established,
or to be established, by the Gaming Ordinance, as amended (which ordinance must
be approved by the NIGC), with authority to license and regulate gaming
activities on "Indian lands" upon which the Pawnee Nation conducts gaming
activities under IGRA and which is a subordinate governmental entity of the
Pawnee Nation and is entitled to all sovereign governmental immunity of the
tribe.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming activities on the Gaming Facility Site,
each whether now existing or hereafter construed or acquired.

     "Gaming Facility Site" shall mean the lands to be used as the site for
constructing the Gaming Facility described on attached EXHIBIT A, including the
land upon which the Project's Class II and/or Class III Gaming activities are
conducted (which is land upon which Class II and/or Class III Gaming may legally
be conducted under IGRA and the Tribal-State Compact).

     "Gaming Ordinance" means the tribal ordinance enacted by the governing body
of the Pawnee Nation and approved by the NIGC in compliance with the Indian
Gaming Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as
it may from time to time be amended,


                                      -6-

<PAGE>

regulating the operation of gaming activities conducted on Pawnee Nation "Indian
lands", creating the Pawnee Nation Gaming Commission, and authorizing Class II
and Class III gaming on its "Indian lands" subject to the provisions of the
Gaming Ordinance and a Tribal-State Compact or gaming procedures issued by the
Secretary of the U.S. Department of the Interior.

     "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession.

     "Governmental Authorities" means the United States, the BIA, the State, the
Pawnee Nation and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming and/or Class III Gaming at
the Gaming Facility, the operation of the Project Facilities, or Pawnee's or
Lakes' obligations under this Management Agreement or any Transaction Document.

     "Gross Gaming Revenues" means the Project's total revenue from Class II
and/or Class III Gaming activities (excluding any insurance proceeds received
other than business interruption insurance proceeds and insurance proceeds
received to reimburse the Project for any claims included, or to be included, as
Costs of Gaming Operations).

     "Gross Ancillary Revenues" means the Project's total receipts from the sale
or rental of food, beverages, souvenirs, hotel facilities, equipment and all
other goods and services supplied for non-Class II and/or non-Class III Gaming
activities at the Ancillary Facilities that are incidental to the operation of
the Project (excluding any insurance proceeds received other than business
interruption insurance proceeds and insurance proceeds received to reimburse the
Enterprise for any claims included, or to be included, as Costs of Ancillary
Operations).

     "Gross Total Revenues" means the total of Gross Gaming Revenues and Gross
Ancillary Revenues of the Project.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Indemnity Agreement" shall mean the Indemnity Agreement between Pawnee and
Lakes described in Section 7.5 in the form agreed to by the parties, together
with all amendments, substitutions and renewals thereof.

     "Legal Requirements" means any and all present and future judicial,
administrative, and federal, state, local or tribal rulings or decisions, and
any and all present and future federal, state, local and tribal laws,
ordinances, rules, regulations, permits, licenses and certificates, in any way


                                      -7-

<PAGE>

applicable to Pawnee, Lakes, the Gaming Facility Site, the Project Facilities,
and the Project, including without limitation, IGRA, the Tribal-State Compact,
and the Gaming Ordinance.

     "Limited Recourse" means that all liabilities or obligations of Pawnee
related to this Management Agreement, the Operating Note, any Transaction
Documents, the Project Facilities, or the Project contemplated by this
Management Agreement, and any related awards, judgments or decrees, shall be
payable solely out of the undistributed and future Net Total Revenues of the
Project, and shall be a limited recourse obligation of Pawnee, with no recourse
to any of Pawnee's assets other than such undistributed and future Net Total
Revenues of the Project (except as to: (i) a security interest in the
Furnishings and Equipment, (ii) the security interest in the Gross Total
Revenues pursuant to the Dominion Account Agreement, (iii) as to any mortgages
or deeds of trust on fee lands upon which the Project is located, and (iv) as
permitted under Section 10.3(d) herein and by Paragraph 5(c) of the Resolution
of Limited Waiver attached hereto as Exhibit B). In no event, except as
permitted under Section 10.3(d) herein and by Paragraph 5(c) of the Resolution
of Limited Waiver attached hereto as Exhibit B), shall Lakes have recourse to
(a) the physical property of the Project Facilities (other than Furnishings and
Equipment and to any mortgages or deeds of trust on fee lands upon which the
Project is located subject to the security interest securing the Operating
Note), (b) Net Total Revenue distributions already received by Pawnee from the
Project and made to the Pawnee TDC in accordance with this Management Agreement
and/or the Dominion Account Agreement, (c) assets of the Pawnee TDC purchased
with such Net Total Revenue distributions, or (d) any other asset of the Pawnee
TDC or Pawnee Nation (other than such undistributed and future Net Total
Revenues of the Project, the security interest in the Furnishings and Equipment
and any mortgages or deeds of trust on fee lands upon which the Project is
located).

     "Lakes" means Lakes Pawnee Management, LLC, a Minnesota limited liability
company with its business office located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

     "Management Agreement" shall mean this Management Agreement for a Gaming
Facility and Related Ancillary Facilities between the parties that deals with
the management of the Project and its operations, as the same may be amended or
modified from time to time, subject to all Legal Requirements.

     "Material Breach" shall have the meaning described in Section 6.1 herein.

     "Minimum Guaranteed Monthly Payments" means the minimum monthly amount
payable to Pawnee, which amount shall be determined pursuant to Section 5.3
hereof.

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to the IGRA.

     "Net Gaming Revenues" means Gross Gaming Revenues less (1) amounts paid out
as, or paid for, prizes; and (2) Costs of Gaming Operation (excluding management
compensation as set forth in Section 5.5 (b) herein).


                                      -8-

<PAGE>

     "Net Ancillary Revenues" means Gross Ancillary Revenues less Costs of
Ancillary Operations.

     "Net Total Revenues" means the sum of Net Gaming Revenues plus Net
Ancillary Revenues.

     "NIGC Approval" means written approval by the NIGC Chairman of this
Management Agreement.

     "Notes and Security Provisions" shall have the meaning set forth in Section
6.4(b) hereof.

     "Operating Note" means the promissory note evidencing the Minimum
Guaranteed Payment Advances under Section 5.3(b) herein and the Working Capital
Advances under Section 5.7 herein made by Lakes, substantially in a form to be
agreed to by Pawnee and Lakes, together with all amendments, substitutions and
renewals thereof.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the business enterprise of Pawnee created to engage in
Class II and/or Class III Gaming at the Gaming Facility located at the Gaming
Facility Site, and which shall include any other lawful commercial activity
conducted in the Ancillary Facilities including, but not limited to any of the
following, operating and managing office space, kids arcade, child care
facility, hotel with swimming pool and golf course, restaurant, RV park, retail
stores, entertainment facilities, or the sale of fuel, food, beverages, alcohol,
tobacco, gifts, and souvenirs, and any other amenities which the parties
mutually agree should be included as part of the Project.

     "Project Accounts" shall have the meaning described in Section 2.8 herein.

     "Project Facilities" means the permanent buildings, structures and
improvements used by the Project for its gaming and ancillary operations,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operations,
each whether now existing or hereafter constructed or acquired.

     "Replacement" shall have the meaning described in Section 6.4(c) herein.

     "Resolution of Limited Waiver" refers to the limited waiver of sovereign
immunity to be adopted by Pawnee in the form attached hereto as EXHIBIT B and
evidencing all approvals required pursuant to Pawnee's governing documents and
applicable law (it being understood and agreed that Pawnee shall take such
further actions to ratify, adopt and enforce the attached form


                                      -9-

<PAGE>

of Resolution of Limited Waiver as shall be required by law or regulation due to
future changes in its own legal or governing status to fully preserve its stated
intent).

     "Scope of Project Description Sheet" shall mean the Scope of Project
Description Sheet dated January 12, 2005, which substantially describes the
scope of the Project currently contemplated by Pawnee and Lakes.

     "Secretary" means the Secretary of the Interior of the United States, or
her appropriately designated representative/agent.

     "Security Agreement" shall mean the Security Agreement to be executed by
Pawnee in favor of Lakes in a form to be agreed to by Pawnee and Lakes, together
with all amendments, substitutions and renewals thereof.

     "State" means the State of Oklahoma wherein the Gaming Site is located.

     "Transaction Documents" shall have the meaning described in Section 9.12(b)
herein.

     "Tribal Agreement" shall mean the agreement between the Pawnee Nation and
Pawnee TDC and Lakes or its affiliates described in Section 9.12(i).

     "Tribal-State Compact" means an agreement which may be entered into between
the Pawnee Nation and the State concerning Class III Gaming and any amendments
or other modifications thereto, which agreement must be approved by the
Secretary and published in the Federal Register.

     "UCC Financing Statements" means UCC-1 financing statements naming Pawnee
as debtor and naming Lakes or any third party lenders providing funding to the
Project as a secured party, in the form approved by the parties.

     "Working Capital Advances" shall have the meaning described in Section 5.7
herein.

                                    ARTICLE 2
                           AUTHORITY AND DUTY OF LAKES

     2.1 Appointment as Agent. Subject to the terms and conditions of this
Management Agreement, Pawnee hereby appoints Lakes to act as the exclusive agent
for Pawnee for all matters related to the management of the operations of the
Project Facilities and the Project during the term of this Management Agreement.
Lakes' agency responsibilities shall include, among other things, maintenance
and improvement of the Project Facilities, management and operation of the
Project's Class II and/or Class III Gaming activities within the Gaming
Facility, and all other revenue producing activities that are conducted by the
Project in the Ancillary Facilities, such as the sale of food and beverages.
Lakes accepts such appointment as Pawnee's


                                      -10-

<PAGE>

exclusive agent for the term of this Management Agreement. Subject to the
provisions of this Management Agreement and specifically the restrictions in
this Article 2 and the budget provisions in Article 5 hereof, Lakes shall have,
and Pawnee does hereby grant to Lakes, the power and authority as agent for
Pawnee, to exercise the rights of Pawnee under and to execute, modify, or amend
any contracts associated with the operations of the Project Facilities and
Project (excluding this Management Agreement or compacts or other agreements
with the State or any other governmental agency, which shall remain the sole and
exclusive authority of the Pawnee Nation), including, without limitation,
purchase orders, equipment and retail leases, contracts for services, including
utilities, and maintenance and repair services, relating to the operation of the
Project Facilities and the Project except for real estate agreements and
contracts (excluding retail leases); provided, however, that in no event shall
Lakes execute any contracts or agreements which require payments exceeding
$250,000 in the aggregate, or which have a term exceeding one (1) year. The
duties and authorities of Lakes shall be subject in all events to receipt of all
necessary licenses, consents or approvals from the Gaming Commission.

     2.2 Limitations. Lakes shall have no authority to waive or impair Pawnee's
sovereign immunity. Except as stated herein, Lakes shall have no authority as
Pawnee's agent under this Management Agreement without the prior written
approval of Pawnee (not to be unreasonably withheld): (a) to incur costs which
are materially in excess of the expenditures to be agreed upon in the operating
budget or the capital expenditure budget to be developed pursuant to Section 5.1
hereof; (b) to sell, encumber or otherwise dispose of any personal property or
equipment located in the Project Facilities, except for inventory sold in the
regular course of business and other items which must be replaced due to age,
obsolescence, or wear and tear; (c) to purchase any goods or services from Lakes
or any of Lakes' affiliated companies as a Costs of Gaming Operations or Costs
of Ancillary Operations unless such arrangement is specifically approved in
writing by Pawnee. Except as specifically authorized in this Article 2, Lakes
shall not hold itself out to any third party as the agent or representative of
Pawnee.

     2.3 Lakes' Authority and Responsibility.

          (a) Lakes, through the Project's general manager, shall conduct and
direct all business and affairs in connection with the day-to-day operation,
management and maintenance of the Project and the Project Facilities, including
the establishment of operating days and hours. It is the parties' intention that
the Project Facilities be open 24 hours daily, seven days a week. Lakes is
hereby granted the necessary power and authority to act, through the Project's
general manager, in order to fulfill all of its responsibilities under this
Management Agreement. Nothing herein grants or is intended to grant Lakes a
titled interest to the Project Facilities or to the Project. Lakes hereby
accepts such retention and engagement. Pawnee shall have the sole proprietary
interest in and ultimate responsibility for the conduct of all Class II and/or
Class III Gaming conducted by the Project, subject to the rights and
responsibilities of Lakes under this Management Agreement.

          (b) In managing, operating, maintaining and repairing the Project and
the Project Facilities under this Management Agreement, Lakes' duties, through
the Project's general


                                      -11-

<PAGE>

manager, shall include, without limitation, the following: (i) Lakes shall use
reasonable measures for the orderly physical administration, management, and
operation of the Project and the Project Facilities, including without
limitation cleaning, painting, decorating, plumbing, carpeting, grounds care and
such other maintenance and repair work as is reasonably necessary; (ii) Lakes
shall comply with all duly enacted statutes, regulations and ordinances of the
Pawnee Nation; and (iii) Lakes shall comply with all applicable provisions of
the Internal Revenue Code including, but not limited to, the prompt filing of
any cash transaction reports and W-2G reports that may be required by the
Internal Revenue Service of the United States or under the Tribal-State Compact.

     2.4 Compliance with Laws.

          (a) Lakes, through the Project's general manager, shall assist Pawnee
in compliance with all terms and conditions of the Tribal-State Compact, the
Gaming Ordinance, IGRA and any gaming regulations (collectively, the "Governing
Laws"), the violation of which would materially impair the conduct of gaming
permitted to be conducted under IGRA by the Project. Without limiting the
foregoing, Lakes shall also supply the NIGC with all information necessary to
comply with the National Environmental Policy Act, as it may be amended from
time to time, and comply with NIGC's regulations relating thereto. Lakes shall
ensure compliance with requirements concerning the reporting and withholding of
taxes with respect to the winnings from gaming operations pursuant to this
Management Agreement. Pawnee agrees to cooperate with Lakes and aid Lakes in
ensuring compliance with the foregoing laws, regulations and requirements. In
managing and operating the Project Facilities and the Project, Lakes shall
comply with all laws, rules, regulations, ordinances, compacts and all other
agreements affecting the same, including without limitation the Governing Laws.

          (b) The parties shall use their best efforts to obtain all necessary
approvals of Governmental Authorities of this Management Agreement.

     2.5 Security. Lakes shall provide for appropriate security for the
operation of the Project Facilities. All aspects of Project Facilities security
shall be the responsibility of Lakes. Upon agreement of Pawnee and Lakes, any
security officer may be bonded and insured in an amount commensurate with his or
her enforcement duties and obligations. The cost of any charge for security and
increased public safety services will be a Costs of Gaming Operations or Costs
of Ancillary Operations, as appropriate.

     2.6 Accounting, Financial Records, and Audits.

          (a) Lakes, through the Project's general manager, shall maintain full
and accurate records and books of account for operations of gaming activities
and related ancillary operations managed by Lakes. Such records shall be
maintained at Lakes' office located within the Project Facilities and shall be
made available for immediate inspection and verification at all times.
Inspection or verification by the Governmental Authorities shall be coordinated
through the Gaming Commission.


                                      -12-

<PAGE>

          (b) Prior to the Commencement Date, and subject to the approval of
Pawnee and the Gaming Commission, which approvals shall not be unreasonably
withheld and which shall occur prior to the Commencement Date, Lakes, through
the Project's general manager, shall establish and maintain such approved
accounting systems and procedures that shall: (i) include procedures for
internal accounting controls; (ii) permit the preparation of financial
statements in accordance with GAAP ; (iii) be susceptible to audit; (iv) allow
the Project, Pawnee and NIGC to calculate the annual fee under 25 CFR Section
514.1; (v) permit the calculation of Lakes' compensation under Section 5.5(b)
herein; and (vi) provide for the allocation of operating expenses or overhead
expenses among Pawnee, the Project and Lakes, or any other user of shared
facilities or services. Supporting records and the agreed upon accounting system
shall be sufficiently detailed to permit the calculation and payment of Lakes'
compensation hereunder and to permit the performance of any fee or contribution
computations required under IGRA, a Tribal-State Compact and other applicable
laws or regulations.

          (c) Net Gaming Revenues, Net Ancillary Revenues, and Net Total
Revenues will be calculated by Lakes, through the Project's general manager, for
purposes of distribution monthly in accordance with Section 5.5 and copies of
such calculations shall be promptly supplied to Pawnee as required by Section
5.4 herein.

          (d) All records shall be maintained so as to permit the preparation of
financial statements in accordance with generally accepted accounting principles
consistently applied and in accordance with procedures to be mutually agreed
upon by the parties. Lakes, through the Project's general manager, shall, as a
Costs of Gaming Operations, furnish to Pawnee and the Gaming Commission, monthly
financial reports in accordance with Section 5.4 herein. Such reports shall
provide reasonable detail as requested by Pawnee and the Gaming Commission with
respect to revenues and expenses of each profit center of the Project. In
addition, all gaming operations conducted within the Gaming Facility shall be
subject to special outside annual audits, which the Gaming Commission may cause
to be conducted, and all contracts or subcontracts for supplies, services or
concessions for a contract amount in excess of $25,000 annually relating to
gaming activities within the Gaming Facility shall be subject to audits, which
audits the Gaming Commission may cause to conducted by an independent certified
public accountant from a Big Five accounting firm with more than five (5) years
experience in audits of gaming enterprise operations selected and approved by
the Gaming Commission. The cost of such audits and audit reports (including the
annual audit under Section 5.6 herein) shall constitute Costs of Gaming
Operation. The Lakes shall make any reports or presentations to Pawnee officials
as are requested.

     2.7. Cash Monitoring. Lakes, through the Project's general manager, will
promulgate, and all parties and their respective employees, agents, and
representatives will obey operational policies consistent with the Gaming
Ordinance respecting the handling of cash, security systems, and access to cash
cage, counting rooms, and other places where cash is kept and handled. Pawnee
and the Gaming Commission and its authorized representatives shall have the
right to monitor and investigate systems for cash management implemented by
Lakes and to verify daily Gross Gaming Revenues, Gross Ancillary Revenues, and
Gross Total Revenues.


                                      -13-

<PAGE>

     2.8 Bank Accounts, Reserve Funds and Permitted Investments.

          (a) On or prior to the Commencement Date, Pawnee and Lakes shall
execute the Dominion Account Agreement and create the Dominion Account
("Dominion Account") described therein. Gross Gaming Revenues and Gross
Ancillary Revenues shall be deposited daily into the Dominion Account, which
shall be subject to the lien of the Dominion Account Agreement and established
at a commercial bank, of Pawnee's choice, organized under the laws of the United
States of America or any state thereof provided such bank is a member of the
Federal Deposit Insurance Corporation and has combined capital, undivided
profits and surplus of at least $500,000,000. Lakes shall also establish other
segregated bank accounts with the approval of Pawnee for the operation of the
Project (the "Project Accounts"), which accounts must indicate the custodial
nature of the accounts. The signatures of authorized representatives of Lakes
shall be the only signatures required to make withdrawals (by check or
otherwise) from such accounts for single withdrawals of less than $250,000,
provided that the monies withdrawn by Lakes are to be used only for the purposes
set forth herein and provided further that if the amount of any single
withdrawal exceeds $250,000 (excluding payout and prizes and transfers to any
designated payroll accounts, taxes, and purchases of cash for day-to-day
operational purposes, or Lakes' compensation under Section 5.5 herein), then the
signature of Pawnee's designated representative will also be required.

          (b) Lakes agrees that subject to the terms of Sections 5.3(b) and
6.4(b) hereof, Lakes shall make or permit timely transfers from the Dominion
Account to the Project Accounts of all funds needed to pay (i) Costs of Gaming
Operations; (ii) Costs of Ancillary Operations; (iii) required debt service on
the Project Facilities, as well as any other third party loans to which Lakes
has consented in writing pursuant to the terms of this Management Agreement or
other agreement; (iv) the Minimum Guaranteed Monthly Payment; (v) Minimum
Guaranty Payment Advances; and (vi) disbursements required pursuant to Section
5.5 hereof. Upon the termination of this Management Agreement and so long as:
(a) any amounts remain owing to Lakes hereunder or with respect to any related
Transaction Document, and (b) the Project shall continue in operation pursuant
to the terms of Section 6.4 hereof, then Lakes shall continue to permit
transfers from the Dominion Account to the Project Accounts for payment of the
amounts described above, but shall specifically exclude any Costs of Gaming
Operations or Costs of Ancillary Operations otherwise payable to Pawnee or any
of its Affiliates with the exception of reasonable gaming license fees and any
costs or expense associated with the provision of reasonable supplies and/or
services provided by Pawnee to the Project.

          (c) Surplus funds deposited in the Dominion Account and the Project
Accounts may be invested by Lakes in the following permitted investments: (i) a
money market mutual fund registered under the Investment Company Act of 1940
that invests exclusively in (1) marketable direct obligations issued or
unconditionally guaranteed by the United State Government or issued by an agency
thereof and backed by the full faith and credit of the United States, (2)
commercial paper having, at the time of acquisition, a rating of A-1 or P-1 or
better from either Standard & Poor's Corporation or Moody's Investors Service,
Inc., respectively; or (ii) other investments as


                                      -14-

<PAGE>

may be directed by Lakes with the prior written consent of Pawnee.

     2.9 Enforcement of Rights.

          (a) During the term of this Management Agreement, except as otherwise
provided in Section 2.9 (b) herein, Pawnee and Lakes shall mutually agree with
respect to the handling of the defense, prosecution or settlement of civil
disputes with third parties relating to gaming and other management activities
conducted or contracts executed by Lakes, as agent for Pawnee. The parties will
assist and cooperate with each other with respect to such third-party claims and
disputes. All uninsured liabilities incurred or expenses incurred by Pawnee and
Lakes or any of the employees, officers or directors of any party in defending
such claims by third parties or prosecuting claims against third parties shall
be considered either Costs of Gaming Operation or Costs of Ancillary Operations,
depending upon the circumstances and nature of the claim, except with respect to
claims and liabilities resulting from criminal misconduct, which shall be
governed by Article 7 herein.

          (b) All claims brought against Pawnee or Lakes or any of the
employees, officers or directors of any party arising out of or relating to
gaming or other ancillary operations conducted pursuant to this Management
Agreement that may be settled and released for a total settlement amount of less
than $100,000 may be paid and settled by Lakes on behalf of Pawnee and/or Lakes
in accordance with Lakes' good faith business judgment.

     2.10 Fire and Safety Services. Lakes, through the Project's general
manager, shall be responsible for obtaining adequate coverage for fire and
safety services and may, in its discretion, have such services provided on a
contractual basis by the local fire and police departments. The costs of any
fire and safety protection services shall be appropriately allocated between
Costs of Gaming Operation and Costs of Ancillary Operations, and, if provided by
a department of the Pawnee Nation, shall not exceed the actual cost of providing
such services.

     2.11 Timely Payment of Costs of Gaming Operations and Costs of Ancillary
Operations. Lakes shall be responsible for paying Costs of Gaming Operation and
Costs of Ancillary Operations on behalf of the Project from the bank account(s)
established pursuant to Section 2.8 herein so as to avoid any late-payment
penalties, except those incurred as a result of good faith payment disputes) to
the extent funds of the Project are available; provided, however, that payment
of all such costs (and taxes or similar payments arising from Project
operations) shall be solely the legal responsibility of the Project.

     2.12 Acquisition of Gaming and Other Equipment.

          (a) All gaming equipment shall be acquired by Lakes, as agent for
Pawnee, on behalf of the Project from Gaming Commission licensed distributors
and manufacturers.

          (b) All acquisitions of new equipment after the public opening of the
Project Facilities shall be purchased by Lakes as agent for Pawnee on behalf of
the Project on a cash on


                                      -15-

<PAGE>

delivery basis, unless otherwise agreed by Pawnee.

     2.13 Hours of Operation. Unless otherwise agreed by the parties, the
Project Facilities shall be operated seven days per week and twenty-four hours
per day, subject to any restrictions in the IGRA, the Gaming Ordinance and a
Tribal-State Compact.

     2.14 Access to Operations. Lakes, through the Project's general manager,
shall provide immediate access by appropriate officials of the Gaming Commission
and Pawnee's designated representative to the gaming operation, including all
books and records in addition to those listed in the access requirements set
forth in Sections 2.6 and 2.7 herein.

     2.15 Increased Public Safety Services. The parties agree that increased
actual costs of law enforcement and police protection services required as a
result of Class II and/or Class III Gaming in the Gaming Facility shall be paid
as Costs of Gaming Operation.

     2.16 Advertising. Lakes, through the Project's general manager, shall
contract for and place advertising, subject to prior approval of the general
concepts of the advertising by Pawnee. Advertising costs will be included in the
operating budgets prepared in accordance with Article 5 herein.

     2.17 Certain Meetings. The parties agree that, to facilitate oversight of
the activities conducted pursuant to this Management Agreement and to maintain
communication generally between the individuals who will be involved in
supervising those activities, Pawnee or its designated representative and the
Lakes' principal individuals will meet at least monthly to review operations of
the Project Facilities and any current issues pertaining thereto.

     2.18 Maintenance. Lakes, through the Project's general manager, will cause
the Project Facilities to be repaired and maintained and operated in a clean,
good and orderly condition. Repairs and maintenance will be paid as Costs of
Gaming Operation if related to the gaming operations of the Project, or as Costs
of Ancillary Operation if related to the other ancillary operations of the
Project.

     2.19 Term. Notwithstanding the date of signature of the parties hereto,
this Management Agreement shall become effective automatically (without need of
amendment, ratification or other action of the parties) upon written approval of
the Gaming Ordinance and this Management Agreement by the Chairman of the
National Indian Gaming Commission. The Commencement Date shall be the first day
upon which Lakes may legally manage the Gaming Facility's gaming operations
under IGRA. Unless sooner terminated as provided herein, this Management
Agreement shall, subject to Legal Requirements, continue for a term of five (5)
years from the Commencement Date, provided however that the Notes and Security
Provisions, including without limitation, each of (a) the Security Agreement,
Dominion Account Agreement, Indemnity Agreement and the UCC Financing
Statements, and (b) sections 2.8 and Article 7 hereof shall each survive and
remain effective until terminated under Article 6 hereof and the amounts owing
to Lakes or its Affiliate by Pawnee under this Management Agreement and related


                                      -16-

<PAGE>

Transaction Documents have been paid in full. In the event that the Gaming
Facility has 200 or more installed gaming devices, then the term shall be seven
(7) years subject to Legal Requirements.

     2.20 Pawnee Representatives. Pawnee hereby acknowledges and agrees that to
the extent any authorization, consent or other approval of the Pawnee is
required under this Management Agreement or any related Transaction Documents
and Pawnee shall provide to Lakes a resolution naming any individual or
individuals authorized to represent Pawnee for purposes or for the purpose of
the operation and performance of this Management Agreement and related
Transaction Documents, then Lakes shall be entitled to rely on all decisions,
authorizations, consents, and approvals provided by such individual or
individuals, as applicable, until such time as Pawnee shall deliver to Lakes an
additional resolution revoking or otherwise modifying such authority.

     2.21 Gaming Facility Site. Pawnee and Lakes mutually agreed that the site
to be used for constructing the Gaming Facility ("Gaming Facility Site") shall
be those lands described on attached EXHIBIT A, (which is land upon which Class
II and/or Class III Gaming may legally be conducted under IGRA and the
Tribal-State Compact).

     2.22 Scope of Project. The scope of the Project subject to this Management
Agreement shall be subject to the mutual approval of the parties. It is
contemplated the scope of the Project will be substantially as described on the
Scope of Project Description Sheet dated January 12, 2005, subject to such
changes as may be necessary or appropriate taking into account competitive
conditions, financing and other circumstances. The parties understand that
market, Tribal-State Compact, governmental or other conditions may change and it
may be necessary to expand or decrease the scope of the Project.

     2.23 Non-Encumbering Assets. Pawnee agrees not to encumber any of the
assets of the Project Facilities or the Project without the written consent of
Lakes, which consent will not be unreasonably withheld; except that Pawnee shall
have the right without the consent of Lakes to grant security interests in the
Project's revenues which are subordinate to Lakes' interests under this
Management Agreement and all related Transaction Documents pursuant to a
subordination agreement in form and substance acceptable to Lakes. Pawnee agrees
to enter into a limited, transactional waiver of sovereign immunity and consent
to jurisdiction and arbitration as to Lakes in connection with this Management
Agreement and any related Transaction Documents, as provided in the Resolution
of Limited Waiver.

                                    ARTICLE 3
                                PERSONNEL MATTERS

     3.1 Employees. All employees involved with operation of the Gaming
Facility's Class II and/or Class III Gaming activities and related ancillary
activities throughout the Project Facilities subject to management by Lakes
under this Management Agreement shall be employees of Pawnee. Subject to the
applicable requirements in the Tribal-State Compact, the employment relationship


                                      -17-

<PAGE>

shall be governed by Pawnee Nation substantive law and any applicable federal
law, subject to the Pawnee Nation's reasonable Indian preference policies, and
all matters will be subject to dispute resolution procedures in the manner
described in this Management Agreement. Lakes, on behalf of the Project, shall
be solely responsible for the hiring, training, promoting, and firing of all
such employees except for the general manager as agreed to by Pawnee and Lakes,
whose employment, advancement and termination shall be subject to approval of
Pawnee, such approval not to be unreasonably withheld. Lakes shall develop a
policy and procedure in conjunction with Pawnee, to implement an executive
development program for employees who are members of the Pawnee Nation whereby
members will be prepared through training and education to assume key management
positions within the gaming and ancillary operations of the Project. All
salaries, wages, employee insurance, worker compensation premiums, employment
taxes, government exactions of any kind related to employment, benefits, and
overhead related to the hiring, supervising, and discharge of employees, will be
Costs of Gaming Operations or Costs of Ancillary Operations, as appropriate.

     3.2 Project Employee Policies. Lakes, through the Project's general
manager, shall prepare a draft of personnel policies and procedures (the
"Project Employee Policies"), including a job classification system with salary
levels and scales, which policies and procedures shall be subject to approval by
Pawnee. The Project Employee Policies shall include a grievance procedure in
order to establish fair and uniform standards for the Project employees, which
will include procedures for the resolution of disputes between the Project and
Project employees. At a minimum, the Project Employee Policies shall provide for
an employee grievance process which provides the following:

     A written "Board of Review" process will be created by the Project's
     general manager to provide Project employees with a procedure for bringing
     work related issues to the attention of Project management so they may be
     promptly and permanently resolved in a fair and equitable manner. The Board
     of Review process will be available to all Project employees except: (1)
     employees at the director level and above, and (2) employees discharged for
     actions involving violations of tribal gaming regulations or law, or
     federal, state, or local law. Project employees will be eligible to use the
     Board of Review process if they have: (a) completed thirty (30) work
     shifts, and progressed through the chain of command in their home
     department in the Project, (b) brought the work related issue to the
     attention of the Project's human resources department, and (c) completed a
     Board of Review hearing request form within the allotted time frame. The
     Project's human resources department shall be responsible for selecting
     hearing panel members as outlined in written procedures to be adopted. The
     Board of Review will be empowered to make the full range of decisions
     available and appropriate (i.e. providing back pay and an apology to the
     employee, or upholding the employee's discharge). The Board of Review's
     decision on the work related issue will final and binding, and there will
     be no appeal beyond the Board of Review.

Lakes, through the Project's general manager, shall be responsible for
administering the Project Employee Policies. Any material revisions to the
Project Employee Policies shall not be effective unless they are approved by
Pawnee. All such actions shall comply with applicable tribal law,


                                      -18-

<PAGE>

subject to the applicable requirements in a Tribal-State Compact.

     3.3 Employee Background Checks. A background investigation shall be
conducted by the Gaming Commission in compliance with all Legal Requirements, to
the extent applicable, on each applicant for employment as soon as reasonably
practicable. No individual whose prior activities, criminal record, if any, or
reputation, habits and associations are known to pose a threat to the public
interest, the effective regulation of Class II and/or Class III Gaming, or to
the gaming licenses of Lakes or the Project, or to create or enhance the dangers
of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of Project gaming activities, shall knowingly be employed by the Project
or Pawnee. The background investigation procedures employed by the Gaming
Commission shall be formulated in consultation with Lakes and shall satisfy all
regulatory requirements independently applicable to Lakes; provided, however,
that this provision shall not be deemed to limit or impair the exclusive
authority of the Gaming Commission pursuant to the Gaming Ordinance or the
exercise of its discretion thereunder. Any cost associated with obtaining such
background investigations shall constitute Costs of Gaming Operation.

     3.4 Pawnee Nation and Indian Preference. Lakes, through the Project's
general manager, shall adhere in regard to recruitment, employment, reduction in
force, promotion, training and related employment actions to a publicly
announced policy and practice of Pawnee Nation Preference and/or any publicly
announced policy of Indian preference, both of which must be reasonably
promulgated by the Pawnee Nation.

     3.5 Conflict of Interest.

          (a) Lakes covenants that it will not unduly interfere with, or attempt
to influence the internal affairs or government decisions of the Pawnee Nation
or any of its Affiliates for its gain or advantage.

          (b) Lakes hereby certifies that no payments have been made or will be
made in the future by Lakes to any tribal official, relative of any tribal
official or government employee for the purpose of obtaining any special
privilege, gain, advantage or consideration for Lakes in connection with this
Management Agreement, except for the fees payable to the Gaming Commission and
amounts payable to Pawnee pursuant to this Management Agreement. However,
nothing in this provision shall prohibit Lakes from making contributions to
community organizations within the Pawnee Nation or to the Pawnee Nation for the
purpose of funding community activities.

          (c) No member of the Gaming Commission, or any Pawnee Nation tribal
court official may be employed by Lakes or be a "Party in Interest" as defined
in Section 8.1 (a) herein with respect to this Management Agreement or a gaming
equipment agreement or have any direct or indirect financial interest in the
gaming to be operated pursuant to this Management Agreement. tribal officials
shall not be eligible for employment at the Project Facilities and Project, but
will be eligible to enter into contracts for the provision of goods or services
for the Project Facilities and Project.


                                      -19-

<PAGE>

          (d) Lakes further agrees to comply with all conflict of interest rules
set forth in regulations or ordinances of the Pawnee Nation.

     3.6 Participation in Tribal Functions. Lakes acknowledges that personnel
who are members of the Pawnee Nation have cultural and religious
responsibilities to perform in regard to tribal rituals and similar activities.
Lakes, through the Project's general manager, will schedule working hours and
take other actions, with the assistance and advice of Pawnee, to accommodate
tribal members in performing these responsibilities without affecting their
employment status or position.

                                    ARTICLE 4
                                    INSURANCE

     4.1 Duty to Maintain. Lakes, acting as agent of Pawnee, shall maintain
during the course of this Management Agreement, appropriately allocated as a
Cost of Gaming Operation or a Cost of Ancillary Operations, insurance coverages
in forms and amounts that will adequately protect Pawnee and Lakes, but in no
case less than the amounts set forth in this Article, or as required by a
Tribal-State Compact.

     4.2 Workers' Compensation. Lakes, acting as agent of Pawnee, shall maintain
adequate workers' compensation insurance in accordance with all applicable laws,
including employer's liability insurance, in the amounts agreed to by the Lakes
and Pawnee, or as required by the Tribal-State Compact.

     4.3 Commercial General Liability. Lakes, acting as agent of Pawnee, shall
purchase on Pawnee's behalf and maintain commercial general liability insurance
covering operations of the Project, including blanket contractual liability
coverage, broad form property liability coverage, and personal injury coverage
in the amount of $1,000,000 per person/$3,000,000 per occurrence for bodily
injury and $1,000,000 per person/$3,000,000 per occurrence for property damage,
or as required by the Tribal-State Compact or the Gaming Commission.

     4.4 Automobile. Lakes, acting as agent of Pawnee, shall maintain
comprehensive automobile liability insurance covering operations of the Project,
including all owned, hired and non-owned automobiles, trucks, buses, trailers,
motorcycles or other equipment licensed for highway use with limits and coverage
approved by Lakes and Pawnee.

     4.5 Pawnee and Lakes to be Insured. Insurance set forth in Sections 4.3 and
4.4 hereof shall name Pawnee and Lakes as insureds, and such policies shall be
endorsed to prohibit the insurer from raising tribal sovereign immunity as a
defense to the payment of claim by the insurer.

     4.6 Property Insurance. Lakes shall also, acting a agent for Pawnee,
procure replacement value all-risk casualty and extended hazard insurance in
appropriate coverage amounts which shall insure the Project Facilities and any
fixtures, improvements and contents located therein


                                      -20-

<PAGE>

against lost or damage by fire, theft and vandalism. Such casualty insurance
policy or policies shall name Pawnee, Lakes, and the Project Facilities as
insureds. All such casualty insurance proceeds shall be applied to the immediate
replacement of the applicable Project Facilities' part or fixture, improvements
or contents therein unless the parties agree otherwise. Subject to the terms of
Sections 6.4 and 6.6 hereof, any excess insurance proceeds that are not used to
repair and reconstruct the applicable damaged Project assets shall be deposited
into the Dominion Account and disbursed in accordance with the same terms and
provisions applicable to Gross Total Revenues, provided however that such excess
proceeds (except business interruption insurance proceeds) shall be excluded
from Net Total Revenues for purposes of calculating the management compensation
of Lakes under Section 5.5(b) hereof.

     4.7 Fidelity Bond. Lakes, acting as agent of Pawnee, shall maintain
fidelity bonds on Project employees and in such amounts as Lakes and Pawnee
shall deem reasonable.

     4.8 Unemployment Insurance. Lakes, acting as agent for Pawnee, shall
maintain adequate unemployment compensation/disability insurance with respect to
the Project employees in compliance with the Tribal-State Compact, if
applicable.

     4.9 Evidence of Insurance. From time to time as reasonably requested by
Pawnee, Lakes shall supply to Pawnee and any necessary Governmental Authorities
copies of the insurance policies applicable to the Project Facilities or Project
operations as required by this Article.

     4.10 Insurance Proceeds. Subject to the terms of Sections 6.4 and 6.6
hereof, any insurance proceeds received with respect to the Project, except as
provided in Section 4.6 hereof, shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided, however, that if there is any insurance recovery for a
claim related to the operation of the Project for which either Pawnee or Lakes
has previously paid from its own separate funds, then, to the extent of amounts
paid by either of such parties, the insurance proceeds will be paid over to them
and the balance shall be deposited into the Dominion Account as above.

                                    ARTICLE 5
                     BUDGETS, COMPENSATION AND REIMBURSEMENT

     5.1 Projections and Budgets.

          (a) The parties shall use their best efforts to project expected
revenues and expenses for the first three (3) years of Lakes' operation of the
Project, and the projections, as described in the business plan to be submitted
to the NIGC with this Management Agreement, represent the parties' mutual
expectations.

          (b) Lakes shall prepare an initial operating budget for the first
Fiscal Year of Project operations under its management pursuant to this
Management Agreement and submit the same to Pawnee for approval by Pawnee prior
to the Commencement Date. Annual operating


                                      -21-

<PAGE>

budgets shall be submitted by Lakes to Pawnee thereafter by no later than thirty
(30) days prior to the commencement of the next Fiscal Year. The proposed
initial operating budget and each subsequent annual operating budget shall be
subject to approval or disapproval within thirty (30) days of submission to
Pawnee, such approval not to be unreasonably withheld. Pawnee may approve or
disapprove of any item on such proposed budget. The parties recognize that
mutually agreeable adjustments may be made to previously approved operating
budgets from time to time during any Fiscal Year, to reflect the impact of
unforeseen circumstances, financial constraints, or other events. Lakes agrees
to keep Pawnee informed regarding any items of revenue or expense that are
reasonably anticipated to cause a material change to the operating budget
previously approved by Pawnee. Lakes shall operate the Project and make
expenditures in connection therewith in accordance with such approved operating
budget. In the event Pawnee and Lakes are unable to resolve any disputed
portions of the proposed operating budget before commencement of the Fiscal
Year, the undisputed portions of the operating budget shall be deemed adopted
and approved, and those line items in dispute shall be determined by increasing
the preceding Fiscal Year's actual expense for the corresponding line items by
an amount determined by Lakes which does not exceed the increase in the Consumer
Price Index for All Urban Consumers published by the U.S. Bureau of Labor
Statistics, U.S. City Average, all items (1997-98=100), or any successor or
replacement index thereto, for the Fiscal Year prior to the Fiscal Year with
respect to which adjustment to the line item(s) is being calculated. The
resulting adjusted operating budget shall be deemed to be in effect for that
Fiscal Year until such time as Pawnee and Lakes have resolved the disputed
items.

          (c) Lakes shall prepare an annual capital expenditure budget and
submit such budget to Pawnee for approval by Pawnee prior to the Commencement
Date. Annual capital expenditure budgets shall be submitted by Lakes to Pawnee
thereafter by no later than thirty (30) days prior to the commencement of each
succeeding Fiscal Year. The proposed capital expenditure budgets shall be
subject to approval or disapproval within thirty (30) days of submission to
Pawnee for approval, such approval not to be unreasonably withheld. Pawnee may
approve or disapprove of any item on such proposed budget. The parties recognize
that mutually agreeable adjustments may be made to previously approved capital
expenditure budgets from time to time during any budget year, to reflect the
impact of unforeseen circumstances, financial constraints, or other events.
Lakes agrees to keep Pawnee informed and obtain Pawnee's approval regarding any
projects or expenditures that are reasonably anticipated to cause a material
change to the capital expenditure budget previously approved by Pawnee. Lakes
shall make capital expenditures in accordance with such approved capital
expenditure budget.

     5.2 Intentionally omitted.

     5.3 Minimum Guaranteed Monthly Payments.

          (a) During the term of this Management Agreement, provided that the
Commencement Date has occurred, the Project shall, subject to the provisions of
Section 5.3(b) below, pay Pawnee Ten Thousand Dollars ($10,000) per month (the
"Minimum Guaranteed Monthly Payment"), beginning on the Commencement Date and
continuing for the remainder of the


                                      -22-

<PAGE>

term of the Management Agreement. The Minimum Guaranteed Monthly Payment shall
be payable to Pawnee in arrears on the twentieth (20th) day of each calendar
month following the month in which the Commencement Date occurs, which payment
shall have priority over the Operating Note, any obligations to repay funding
provided by any third party lender in connection with financing the development,
construction equipping of the Project Facilities, and payment of Lakes'
compensation. If the Commencement Date is a date other than the first day of a
calendar month, the first payment will be prorated from the Commencement Date to
the end of the month. The Minimum Guaranteed Monthly Payment shall be prorated
if gaming is conducted at the Gaming Facility for any other partial months.

          (b) Minimum Guaranteed Monthly Payments shall be deducted from any
disbursements of Net Total Revenues received by Pawnee under Section 5.5 hereof
in any given month; provided, however, that if the Net Total Revenues in a given
month are less than $10,000, Lakes shall advance the funds necessary to
compensate for the deficiency from its own funds (the "Minimum Guaranteed
Payment Advances", which advances shall not accrue interest but shall be
evidenced by an Operating Note in a form agreed to by Pawnee and Lakes), and
provided further that the Minimum Guaranteed Monthly Payments shall be reduced
to $1,000 per month for the remaining months in a Fiscal Year after Pawnee has
received in such Fiscal Year Total Net Revenue distributions of $120,000. Lakes
shall be entitled to recoup any Minimum Guaranteed Payment Advances made under
this subsection from the Net Total Revenues of the Project in succeeding months
during the term hereof, as provided in Section 5.5 hereof (and any amounts
outstanding on account of Minimum Guaranteed Payment Advances at the end of the
term of this Management Agreement shall be immediately due and payable by
Pawnee). In no event shall this recoupment payment for Minimum Guaranteed
Payment Advances result in Pawnee receiving less than its Minimum Guaranteed
Monthly Payment in any month, and in no event shall Lakes be allowed or entitled
to interest on any Minimum Guaranteed Payment Advances. Minimum Guaranteed
Monthly Payments shall be prorated with respect to any months (or portions
thereof) that Class II Gaming or Class III Gaming is suspended or terminated at
the Gaming Facility, and no Minimum Guaranteed Monthly Payments shall be
required with respect to any months that no Class II Gaming or Class III Gaming
is conducted at the Gaming Facility or accrue subsequent to termination of this
Management Agreement.

          (c) Any obligations owing by Pawnee under the Operating Note shall be
repaid solely as a Limited Recourse obligation of Pawnee without any other
liability or guarantee on the part of Pawnee. Except for the Minimum Guaranteed
Monthly Payment to Pawnee, repayment of the Operating Note obligations shall
have first priority on any Net Gaming and Net Ancillary Revenues generated by
the Project. Pawnee agrees to grant to Lakes a first priority and perfected
security interest, including a Dominion Account arrangement pursuant to the
Dominion Account Agreement (in a form consistent with the terms of this
Management Agreement), on any Net Gaming and Net Ancillary Revenues of the
Project in order to secure repayment of the Operating Note, and such Operating
Note shall also be secured on a first priority and perfected basis by any
Furnishings and Equipment pursuant to the Security Agreement and by first
priority liens in the additional recourse assets described in the definition of
"Limited Recourse."


                                      -23-

<PAGE>

     5.4 Daily and Monthly Statements. Lakes shall furnish to Pawnee's
designated representative financial statements identifying for each day the
Gross Gaming Revenues attributable to the Enterprise's Class II and/or Class III
Gaming on each day that such reports are normally available. Within fifteen (15)
days after the end of each calendar month, Lakes shall provide verifiable
financial statements in accordance with GAAP to Pawnee and the Gaming Commission
covering the preceding month's operations of the Enterprise, including operating
statements, balance sheets, income statements and statements reflecting the
amounts computed to be distributed in accordance with Section 5.5 hereof.

     5.5 Distribution of Net Total Revenues.

          (a) All Net Total Revenues shall be disbursed on a monthly basis as
set forth below, paid on the twentieth day of each calendar month for the
preceding month. Such Net Total Revenues shall be disbursed from the Project
Bank Account(s) to the extent available for payment of the following accounts in
the following order of priority:

          (i)  The Minimum Guaranteed Monthly Payment described in Section 5.3
               hereof;

          (ii) All outstanding Minimum Guaranteed Payment Advances and Working
               Capital Advances (and accrued interest thereon) or any other
               amounts owing to Lakes under the Operating Note;

          (iii) Current principal, interest and any other payments due on any
               obligations to repay funding provided by any third party lender
               in connection with financing the development, construction, and
               equipping of the Project Facilities,

          (iv) Management compensation due Lakes under Section 5.5(b) below;
               provide that if the distribution under this subsection in any
               month is insufficient to fund such payment in full, the unpaid
               amount shall be deferred and paid under subsection (vi) below;

          (v)  Any amounts deferred (including interest on any deferred
               management compensation which interest shall accrue, from the
               date the management compensation is deferred, at the greater of
               the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or
               any successor bank) plus two percent (2%) or the same rate for
               the financing provided by any third party lender for the
               development, construction and equipping of the Project
               Facilities) under subsections (ii), (iii), (and (iv) above;

          (vi) Any monthly capital replacement or other reserve contributions
               which have been created with the written approval of the Lakes
               and Pawnee;


                                      -24-

<PAGE>

          (vii) Any indemnification or other obligations then owing by Pawnee to
               Lakes under any Transaction Document and not paid as Costs of
               Gaming Operations or Costs of Ancillary Operations (provided
               Lakes has provided written notice to Pawnee that above amounts
               are owed under the Transaction Documents, and Pawnee has not
               disputed the same or such amounts have been determined to be
               owing through an arbitration proceeding under Article 10 hereof);
               and

          (viii) All remaining Net Total Revenues shall be disbursed to Pawnee
               at the same time the management compensation is paid to Lakes,
               subject to the rights of the Lakes under the Dominion Account
               Agreement upon the occurrence of a Material Breach by Pawnee or
               pursuant to the terms of the Operating Note.

          (b) As compensation for Lakes' management services hereunder, (i) in
the event that this Management Agreement is approved by the NIGC before Class II
and/or Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive thirty percent (30%) of Net Total Revenues for the
prior calendar month less any amounts earned by and due to a Lakes' Affiliate
for any development fees in connection with the Project, and (ii) in the event
that this Management Agreement is approved by the NIGC after Class II and/or
Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive thirty percent (30%) of Net Total Revenues for the
prior calendar month less any amounts due to a Lakes' Affiliate for any
consulting fees earned that month in connection with the Project under any
contract between Pawnee and the Lakes Affiliate still in effect at that time,
for so long as this Management Agreement shall remain in effect during the term
hereof and as provided for in this Management Agreement. Any amounts owing to
Lakes hereunder shall be Limited Recourse obligations of the Tribe and shall be
subject to the security provisions described in Section 5.3(c) hereof, including
the Dominion Account Agreement and Security Agreement.

          (c) Lakes, on behalf of the Project, is responsible for making the Net
Total Revenues disbursements to the appropriate party.

     5.6 Annual Audit. With respect to each Fiscal Year, Pawnee shall cause an
audit to be conducted by an independent certified public accountant from a Big
Five accounting firm with more than five (5) years experience in audits of
gaming resort operations selected and approved by Pawnee, and on or before one
hundred twenty (120) days after the end of such year, such accounting firm shall
issue a report with financial statements in accordance with GAAP with respect to
the preceding Fiscal Year (or portion of the year in the case of the first year)
operations of the Project, including operating statements, balance sheets,
income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof, such report to be approved at
an annual meeting to be held at a location mutually agreed upon by the parties.
In addition, upon termination of this Management Agreement in accordance with
its terms,


                                      -25-

<PAGE>

such accounting firm shall conduct an audit, and on or before ninety (90) days
after the termination date, shall issue a report setting forth the same
information as is required in the annual report, in each case with respect to
the portion of the Fiscal Year ending on the termination date. If the Net Total
Revenues or other amounts paid to Pawnee or Lakes in accordance with Section 5.5
above for the relevant period are different from the amount which should have
been paid to such party based on the report prepared by the accounting firm and
based upon the provisions of this Management Agreement, then to the extent
either party received an overpayment, it shall repay and deposit the amount of
such overpayment into the bank account referenced in Section 2.8 (a) hereof
within twenty-five (25) days of the receipt by such party of the accountant's
report, and to the extent either party received an underpayment, it shall
receive a distribution from the bank account referenced in Section 2.8 (a)
hereof of the amount of such underpayment within ten (10) days of the receipt by
such party of the accountant's report. Lakes may make adjustment to future
payments to correct a discrepancy if required distributions are not made.

     5.7 Advances for Working Capital. Where amounts in bank accounts
established pursuant to Section 2.8 hereof are insufficient to meet Costs of
Gaming Operation or Costs of Ancillary Operation, during the first six (6)
months after the Commencement Date, Lakes shall advance monies to the Project
sufficient to meet Costs of Gaming Operations and Costs of Ancillary Operations.
Thereafter, Pawnee shall advance such monies to the Project sufficient to meet
Costs of Gaming Operations and Costs of Ancillary Operations. If Lakes makes any
advances hereunder ("Working Capital Advances", which advances shall be
evidenced by an Operating Note substantially in a form to be agreed to by Pawnee
and Lakes and shall accrue interest, from the date the advances are made, at the
greater of the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or any
successor bank) plus two percent (2%) or the same rate for the financing
provided by any third party lender for the development, construction and
equipping of the Project Facilities), Lakes shall be repaid as provided in
Section 5.5 hereof (and any amounts outstanding on account of Working Capital
Advances at the end of the term of this Management Agreement shall be
immediately due and payable by Pawnee). Any Working Capital Advances shall be
Limited Recourse obligations of Pawnee and shall be subject to the security
provisions described in Section 5.3(c) hereof, including the Dominion Account
Agreement and Security Agreement. Any advances made by Pawnee hereunder shall
accrue interest at the same rate as applies to Working Capital Advances made by
Lakes.

     5.8 Development and Construction Cost Repayment. The maximum dollar amount
for repayment of development and construction costs for the Project Facilities
shall be Thirty Million Dollars ($30,000,000). Subject to any applicable Legal
Requirements, the parties may increase the maximum repayment amount by mutual
written agreement.

                                    ARTICLE 6
                           TERMINATION/MATERIAL BREACH

     6.1 Termination for Cause. Subject to the provisions of Section 8.2, either
party may


                                      -26-

<PAGE>

terminate this Management Agreement if the other party commits or allows to be
committed a Material Breach (as hereinafter defined) of this Management
Agreement and fails to cure such breach within thirty (30) calendar days after
receipt of a written notice from the non-breaching party identifying the nature
of the Material Breach in specific detail and its intention to terminate this
Management Agreement; provided, however, that if the nature of such breach (but
specifically excluding breaches curable by the payment of money) is such that it
is not possible to cure such breach within thirty (30) days, such thirty-day
period shall be extended for so long as the breaching party shall be using
diligent efforts to effect a cure thereof but no more than an additional sixty
(60) days, and provided further that Lakes shall not be entitled to an extension
of such thirty-day cure period in the event of theft, embezzlement or willful
misconduct with respect to the handling of money or other property. Termination
is not an exclusive remedy for claims of a Material Breach, and the parties
shall be entitled to other rights and remedies as may be available pursuant to
the terms hereof or under applicable law. For purposes of this Management
Agreement, a "Material Breach" is any of the following circumstances: (i)
failure of Lakes to provide Pawnee with the monthly Minimum Guaranteed Monthly
Payments pursuant to Section 5.3 hereof, unless suspended pursuant to the terms
of Sections 5.3(b) or 6.4(a) hereof; (ii) material failure of either party to
perform a material obligation hereunder, or any document or agreement related
hereto for reasons not excused under Section 9.6 hereof (Force Majeure); (iii)
if any of Lakes' employees commits theft, embezzlement or crime of moral
turpitude and if, after knowledge of such act or, if disputed, after
determination by arbitration under Article 10, Lakes does not remove such
employee from connection with Class II and/or Class III Gaming operations of the
Project; (iv) default under this Management Agreement or the Operating Note, or
any document or agreement related hereto or thereto, and any default by either
Pawnee TDC or the Pawnee Nation under that certain Tribal Agreement dated
January 12, 2005 executed by such parties in favor of Lakes; or (v) any
representation or warranty made pursuant to Section 9.11 or 9.12 hereof proves
to be knowingly false or erroneous in any material way when made or shall fail
to be true and correct in all material respect at any time during the term of
this Management Agreement. Any final notice of termination hereunder shall be in
writing detailing the reason the party considers the Material Breach not to be
cured and must be delivered to the other party before such termination becomes
effective.

     6.2 Mutual Consent. This Management Agreement may be terminated at any time
upon the mutual written consent and approval of the parties.

     6.3 Involuntary Termination Due to Changes in Law or Tribal-State Compact.
The parties hereby agree to use their best efforts to conduct Class II and/or
Class III Gaming activities in accordance with this Management Agreement and to
ensure that such activities and this Management Agreement conform to and comply
with all applicable laws and a Tribal-State Compact. Pawnee agrees that, except
as may be required by federal law, neither Pawnee, Pawnee TDC nor Pawnee Nation
will enact or pass any new ordinances subsequent to the execution of this
Management Agreement that would materially impair the rights of Lakes under this
Management Agreement. Pawnee covenants and affirmatively states that neither
Pawnee, Pawnee TDC nor Pawnee Nation has or will impose any tax, fee or
assessment on Lakes, the Project or its Project Facilities, this Management
Agreement, the Operating Note and any related security documents and instruments
described herein other than the fees and assessments described in "Costs of
Gaming


                                      -27-

<PAGE>

Operation." In the event of any change in state or federal laws that results in
a final determination by the Secretary, the National Indian Gaming Commission,
or a court of competent jurisdiction that this Management Agreement is unlawful,
Pawnee and Lakes shall use their respective good faith best efforts to amend
this Management Agreement in a mutually satisfactory manner which will comply
with the change in applicable laws and not materially change the rights, duties
and obligations of the parties hereunder. In the event such amendment can not be
legally effected following exhaustion of all such good faith best efforts
(including the lapse of all legal proceedings and appeal periods without
favorable results) performance of this Management Agreement shall be
automatically suspended effective upon the date that performance of this
Management Agreement becomes unlawful by such final determination, and either
party shall have the right to terminate such suspended Management Agreement
(except the Notes and Security Provisions, as defined in Section 6.4 (b)) upon
written notice to the other party.

     6.4 Other Rights upon Material Breach; Ownership of Assets and Repayment of
Obligations on Termination.

          (a) Upon the occurrence of any Material Breach or upon the occurrence
of any event or circumstance which with the giving of notice or the passage of
time or both would constitute a Material Breach, Lakes may suspend its
obligation to make any Minimum Guaranteed Payment Advances, until such time as
the default has been cured. Upon the occurrence of any Material Breach, Lakes
may suspend its obligation to make any Working Capital Advances until such time
as the Material Breach has been cured.

          (b) Upon termination, except in connection with Lakes' security
interests in the Net Total Revenues of the Project pursuant to Pawnee's Limited
Recourse obligations under the Transaction Documents (if not yet satisfied), or
any other security interests or liens in any Furnishings and Equipment and other
collateral described in the Transaction Documents, Pawnee will retain full
ownership of the Project Facilities, Plans and Specifications therefor, and the
Project and its assets; and Lakes will have no rights to the Project and its
assets or the Project Facilities (or any equipment, books and records, materials
or furnishings therein that were purchased with Costs of Gaming Operations or
Costs of Ancillary Operations) except as to the security interests and liens
recited above or as may be established otherwise by a proceeding pursuant to
Article 10 hereof. In the event of any termination (whether voluntary or
involuntary), Pawnee shall continue to have the obligation to pay unpaid
principal and interest and other amounts due under this Management Agreement,
the Operating Note or any Transaction Document executed in connection herewith,
together with any unpaid compensation owed to Lakes under Section 5.5(b) hereof
(if not yet satisfied), each of which shall become due and payable on such
termination date. Any and all obligations and provisions contained in this
Management Agreement concerning indemnity obligations or repayment of the
Operating Note, and the security therefore, including the Security Agreement and
Dominion Account Agreement, together with any unpaid compensation owed to Lakes
under Section 5.5(b) hereof and any other amounts owing to Lakes under this
Management Agreement or any other Transaction Documents and the terms and
provisions set forth in Articles 9 and 10 hereof excluding Sections 9.21 and
9.22 (collectively, the "Notes and Security Provisions"), shall survive
termination of this Management Agreement. In the event of termination for any


                                      -28-

<PAGE>

reason, and subject to its rights under the dispute resolution provisions under
Article 10 herein, Lakes shall cooperate with Pawnee in the orderly transition
of management of the Project, and shall provide Pawnee or its designee with any
and all books, records, documents, contracts, and all other information relating
to the Project Facilities or the Project, whether such information shall be in
electronic, hard copy or any other form. If at the time of termination Pawnee's
obligations under the Transaction Documents remain unsatisfied in full, then
Pawnee may either pay the obligations in full, or to the extent economically
feasible (as hereinafter defined), Pawnee agrees to continue to operate and
maintain the Project Facilities in accordance with reasonable industry
standards, and as to any portions of the Project Facilities that are no longer
economically feasible to operate, Pawnee and the Lakes shall conduct an orderly
liquidation of such assets and any liquidation proceeds (net of reasonable sale
costs) shall be deposited into the Dominion Account and disbursed in accordance
with the same terms and provisions applicable to Gross Total Revenues, provided
however that such liquidation proceeds shall be excluded from Net Total Revenues
for purposes of calculating the management compensation of any Replacement
whether under Section 5.5(b) hereof or otherwise; and Pawnee shall keep the
Project Facilities and all related assets insured for the coverages and amounts
required by this Management Agreement and name Lakes as an additional insured,
loss payee and mortgagee, as applicable and provide evidence thereof upon
request until all amounts owing to Lakes have been paid in full, and if any
portion of the Project assets are damaged by any casualty and it is economically
feasible for Pawnee to continue to operate such damaged assets, then Pawnee
shall repair and reconstruct such operations that were damaged and are to be
continued, and any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Dominion Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such excess proceeds
shall be excluded from Net Total Revenues for purposes of calculating the
management compensation of any Replacement whether under Section 5.5(b) hereof
or otherwise. As used herein and in Section 6.6(d) hereof, the term
"economically feasible" shall mean that the gross revenues derived from any
applicable operations is in excess of that needed to pay the Costs of Gaming
Operations or Costs of Ancillary Operations, as applicable to the operations in
question.

          (c) Subject to the provisions of Section 6.1, in the event of
termination of this Management Agreement for any reason prior to the full
repayment to Lakes of any amounts owed to it by Pawnee under the Transaction
Documents, including without limitation, the Operating Note, Pawnee shall, as
promptly as reasonably possible, appoint a person or entity qualified to manage
the Project Facilities and operate the Project (the "Replacement") and use its
best efforts to obtain approvals of all required Governmental Authorities for
such Replacement, provided the obligation to continue to operate under Section
6.4(b) exists. Pawnee agrees to keep full and accurate financial records of
operations of the Project by such Replacement and to allow Lakes to audit such
records at reasonable times prior to full repayment to Lakes of any amounts owed
to it by Pawnee under the Transaction Documents, including without limitation,
the Operating Note, and that Pawnee's compliance with this paragraph shall not
preclude the Lakes from exercising any of its other rights and remedies
hereunder or any document or agreement related hereto, including, without
limitation, rights under the Operating Note and the Dominion Account Agreement.


                                      -29-

<PAGE>

     6.5 Notice of Termination. In the event of a proposed termination pursuant
to this Article, Pawnee shall provide notice of the termination to the NIGC or
other appropriate Governmental Authorities within ten (10) days after the
termination.

     6.6 Cessation of either Class II or Class III Gaming at the Gaming
Facility.

          (a) If, during the term of this Management Agreement, either Class II
or Class III Gaming (once legally permitted at the Gaming Facility) cannot be
lawfully conducted at the Gaming Facility by reason of the application of any
legislation or court or administrative agency order or decree adopted or issued
by a governmental entity having the authority to do so, Lakes shall, within
sixty (60) days after such legislation, order or decree becomes effective, elect
to:

               (i) retain Lakes' interest in this Management Agreement and
          suspend both Class II and Class III Gaming operations until such date
          on which both Class II and Class III Gaming at the Gaming Facility
          becomes lawful (during which period the term of the Management
          Agreement will be tolled until both Class II and Class III Gaming at
          the Gaming Facility becomes lawful or the parties mutually agreed
          otherwise, and the period of cessation shall not be deemed to have
          been part of the term of the Management Agreement and the term shall
          be extended by the length of time of the cessation); or

               (ii) retain Lakes' interest in this Management Agreement, suspend
          Class II and Class III gaming operations until such date on which both
          Class II and Class III Gaming at the Gaming Facility becomes lawful
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming at the Gaming Facility becomes lawful or
          the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and with the prior approval of Pawnee, which approval
          shall not be unreasonably withheld, use the Gaming Facility for any
          other lawful purpose pursuant to a use agreement containing terms
          reasonably acceptable to Lakes and Pawnee; or

               (iii) terminate both Class II and Class III Gaming operations and
          terminate this Management Agreement.

          Lakes shall give Pawnee written notice of Lakes' election within such
     sixty-day period.

          (b) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6 (a)(i) or (ii) above, Lakes shall have the right
(but not the obligation) to commence either Class II or Class III Gaming
operations within sixty (60) days after the date on which both Class II and
Class III Gaming becomes lawful. Lakes may exercise such right by giving Pawnee
written notice of such exercise within thirty (30) days after the date on which
both Class II and Class III Gaming becomes lawful. Any reasonable payment to any
third party made during the period during which


                                      -30-

<PAGE>

either Class II or Class III Gaming is unlawful to preserve or eliminate any
leasehold or purchase contract rights of the Gaming Facility shall be paid by
Lakes from Project funds after mutual approval of Pawnee and Lakes as Costs of
Gaming Operation or Cost of Ancillary Operations, as applicable, and reimbursed
after both Class II and Class III Gaming is recommenced.

          (c) If, during the term of this Management Agreement, the Gaming
Facility is damaged by casualty or other occurrence to the extent, as reasonably
determined by Lakes, that either Class II or Class III Gaming cannot be
conducted at the Gaming Facility, Lakes shall elect to:

               (i) retain Lakes' interest in this Management Agreement pending
          repair or reconstruction of the Gaming Facility, suspend all gaming
          operations pending the repair or reconstruction of the Gaming Facility
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming can be conducted at the Gaming Facility
          or the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and arrange for such repair or reconstruction in the
          manner described in this Section 6.6; or

               (ii) terminate this Management Agreement, such termination to be
          effective on the sixtieth (60th) day after written notice of
          termination shall have been delivered to Pawnee.

          Lakes shall give Pawnee written notice of Lakes' election under
subsection within sixty (60) days after such casualty or occurrence.

          (d) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6(c)(i) above, Pawnee shall be obligated to make such
repairs or reconstruction as the Lakes shall reasonably determine should be made
to the Project Facilities (to the extent that insurance proceeds are available
or as otherwise mutually agreed by Pawnee and Lakes), and Lakes shall promptly
verify the amount of insurance proceeds available to pay the cost of repair or
reconstruction. If the Lakes elects to retain its interests under Section
6.6(c)(i) above, Lakes is hereby granted the authority to submit, adjust and
settle, on behalf of Pawnee, all insurance claims associated with the casualty
or occurrence; provided, however, that Lakes shall obtain Pawnee's prior written
consent (which consent shall not be unreasonably withheld) to any settlement.
Lakes shall provide copies of all settlement documents to Pawnee. If the Lakes
does not elect to retain its interest under Section 6.6(c)(i) above and if
Pawnee's obligations under the Transaction Documents are not yet satisfied,
then: (a) Pawnee shall have the authority to submit, adjust and settle all
insurance claims provided that any final settlement shall be with the prior
written consent of Lakes which will not be unreasonably withheld, and Pawnee
shall provide copies of all settlement documents to the Lakes; (b) to the extent
economically feasible (as defined in Section 6.4(b), Pawnee shall have the
obligation to continue to operate and maintain the Project Facilities and
Project in accordance with reasonable industry standards, and as to any portions
of the project Facilities and the Enterprise that


                                      -31-

<PAGE>

are no longer economically feasible to operate, Pawnee and the Lakes shall
conduct an orderly liquidation of such assets and any liquidation proceeds (net
of reasonable sale costs) shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided however that such liquidation proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise; (c) Pawnee shall repair and reconstruct such operations that were
damaged and are to be continued; and (d) any excess insurance proceeds that are
not used to repair and reconstruct the applicable damaged Project assets shall
be deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such excess proceeds shall be excluded from Net Total Revenues for purposes of
calculating the management compensation of any Replacement whether under Section
5.5(b) hereof or otherwise.

          (e) If Lakes elects to terminate this Management Agreement under this
Section 6.6, the provisions of Section 6.4 above shall apply.

     6.7 Renewal Option.

          The parties by mutual agreement may decide to renew or extend the
Management Agreement of this Management Agreement. Any such renewal or extension
shall only become effective upon approval by the NIGC and appropriate licensing
by the Gaming Commission.

     6.8 Buy-out Option.

          Following thirty-six (36) months of continuous operation of the
Project's gaming operations by Lakes, Pawnee shall have the option to buy out
the Lakes' remaining rights under this Management Agreement for an amount equal
to the present value, using a discount rate which is the greater of (i) two
percent (2%) above the prime interest rate of Chase Manhattan Bank U.S.A., N.A.
(or any successor bank) or (ii) or the same rate for the financing provided by
any third party lender for the development, construction and equipping of the
Project Facilities of the Remaining Management Fees (as hereinafter defined).
The term "Remaining Management Fees" shall mean the total monthly compensation
which would have been payable to Lakes under Section 5.5(b) hereof for the
balance of the term of this Agreement, assuming that such monthly compensation
would be the average of the compensation paid to Lakes during the most recent
operating twelve months prior to such buy out. Notwithstanding the foregoing,
Pawnee buy-out option rights may only be exercised after the first four years of
the Project's gaming operations if 200 or more gaming devices are installed in
the Gaming Facility.

     6.9 Cumulative Remedies.

          All rights or remedies of either Pawnee or Lakes under this Management
Agreement or any other Transaction Documents shall be cumulative and may be
exercised singularly in any order or concurrently, at such party's respective
option, and the exerciser or enforcement of any such right or remedy shall
neither be a condition to nor bar to the exercise or enforcement of any


                                      -32-

<PAGE>

other right or remedy.

                                    ARTICLE 7
                              RELEASE AND INDEMNITY

     7.1 Third-Party Claims. Except for claims resulting from the other party's
own gross negligence or willful or criminal misconduct, neither party shall be
entitled to recover from, and expressly releases, the other party, its agents,
directors, officers and employees, from or for any third-party damages, claims,
causes of action, losses and/or expenses of whatever kind or nature, including
attorneys' fees and expenses incurred in defending such claims in connection
with the lawful operation of the Project Facilities and Project in accordance
with the terms of this Management Agreement; and such claims, damages, losses or
expenses shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending on the circumstances and nature of the claim,
payable from the bank accounts established pursuant to Section 2.8(a) hereof.

     7.2 Indemnity from Lakes. Notwithstanding Section 7.1, Lakes shall
indemnify and hold Pawnee , its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Lakes, its officers and directors in connection with
Lakes' performance of this Management Agreement, and no such damages, losses or
expenses shall be paid from the bank accounts established pursuant to Section
2.8 (a) hereof, nor shall such losses or expenses be considered Costs of Gaming
Operations or Costs of Ancillary Operations.

     7.3 Indemnity from Pawnee. Notwithstanding Section 7.1, Pawnee shall upon
request indemnify and hold Lakes, its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Pawnee, its officers, directors, or tribal government
employees, in connection with the Pawnee's performance of this Management
Agreement, and no such damages, losses or expenses shall be considered Costs of
Gaming Operations or Costs of Ancillary Operations.

     7.4 Indemnity Against Unauthorized Debt and Liabilities. The parties
expressly agree that neither this Management Agreement nor its performance
creates or implies a partnership between the parties or authorizes either party
to act as agent for the other except to the extent expressly provided herein.
Lakes hereby agrees to indemnify and hold Pawnee harmless from any third-party
claims, actions and liabilities, including reasonable attorneys' fees on account
of obligations or debts of Lakes that Lakes is not authorized to undertake as
agent for Pawnee pursuant to the terms of this Management Agreement. Pawnee
likewise agrees to indemnify and hold Lakes harmless from any third-party
claims, actions and liabilities on account of any of the separate obligations or
debts of Pawnee, Pawnee TDC or Pawnee Nation that are not authorized Costs of
Gaming Operations or Costs of Ancillary Operations pursuant to this Management
Agreement.


                                      -33-

<PAGE>

     7.5 Indemnity Agreement. In connection with any indemnity obligations
hereunder, the parties agree they will comply with the terms and conditions set
forth in the Indemnity Agreement in a form agreed to by Pawnee and Lakes.

                                    ARTICLE 8
                               PARTIES IN INTEREST

     8.1 Payment of Fees and Submission of Information for Background
Investigations.

     Upon execution of this Management Agreement, Lakes shall pay the fees
required by federal and tribal regulations for background investigations for the
"Parties in Interest" as defined herein, and it shall submit the information
required by this Section in duplicate to the National Indian Gaming Commission
and the Gaming Commission and update such information at any time that changes
occur in prior submissions so as to allow complete background investigations. In
no event shall the cost of background investigations under this Section relating
to Gaming Commission regulations exceed $10,000 per individual without the
mutual consent of the parties, which consent shall not be unreasonably be
withheld.

          (a) As used in this Section 8.1, the term, "Parties in Interest"
includes any person or entity with a financial interest in, or having management
responsibility for, this Management Agreement or for which background
investigations are required by 25 C.F.R. Part 537, and any amendments thereto.

          (b) Lakes shall require sufficient information and identification from
each "Party in Interest" to perform a background investigation for the purpose
of determining the suitability of such persons for employment in a Class II
and/or Class III Gaming operation, including, at a minimum, the information
required by the National Indian Gaming Commission as set forth in 25 C.F.R. Part
537.

          (c) Without limiting the foregoing, Lakes shall obtain a current set
of fingerprints on each person for whom background investigations are required
by the Gaming Commission and the National Indian Gaming Commission, using forms
supplied by the National Indian Gaming Commission and/or the Gaming Commission,
which shall be referred to the Federal Bureau of Investigation (FBI) Fingerprint
Identification Division or other law enforcement agency designated by the Gaming
Commission.

          (d) The parties hereby agree that a listing of all "Parties in
Interest" as defined in Section 8.1 (a) above shall be submitted to the NIGC.
All such "Parties in Interest", as such listing shall be supplemented from time
to time, shall be required to furnish the information required by this Section
8.1 prior to obtaining such interest. All necessary Governmental Authorities
must approve any change in the "Parties in Interest". Any change of a person
listed as a one of the "Parties in Interest" shall not constitute a change in
persons with a financial interest in or


                                      -34-

<PAGE>

management responsibility for a management contract.

     8.2 Removal; Divestiture. Should the Gaming Commission or the National
Indian Gaming Commission, by agency action, find that any individual with a
"direct or indirect financial interest" in this Management Agreement (as defined
in 25 C.F.R. Section 502.17, and any amendments thereto) whose prior activities,
criminal record, if any, or reputation, habits, and associations pose a threat
to the public interest, or the tribal interest, or the effective regulation of
gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices and methods and activities in the conduct of gaming or the carrying on
of related business and financial arrangements, or should such agency revoke the
license of such person, and should either agency notify Lakes or Pawnee of such
finding or revocation, then Lakes shall require such individual to divest his or
her interest in this Management Agreement and shall immediately remove such
person from all association with gaming operations under this Management
Agreement upon receipt of such notice, provided that any individual subject to
such removal/divesture shall be permitted to be revested and able to associate
with gaming operations in the event the agency action is reversed upon agency
administrative or judicial appeal. In addition, if any individual with "direct
or indirect financial interest" in this Management Agreement (as defined in 25
C.F.R. Section 502.17, and any amendments thereto): (a) has been or is
subsequently convicted of a felony relating to gaming, (b) knowingly or
willfully provided materially false statements to Pawnee, the Gaming Commission
or the National Indian Gaming Commission, or refused to respond to questions
from either of such agencies, or (c) attempts to unduly interfere or unduly
influence for his or her gain or advantage any decision or process of tribal
government relating to Class II and/or Class III Gaming and if Lakes becomes
aware of such conflicts or prohibited actions, then Lakes shall notify Pawnee of
such event and shall immediately take all necessary steps to cause such
individual to divest his or her interest in Lakes. Any disputed Gaming
Commission action potentially involving removal/divestiture of Lakes is subject
to the provisions of Article 10 and other applicable law or regulations.

                                    ARTICLE 9
                                  MISCELLANEOUS

     9.1 Assignment and Subcontractors. The rights and obligations under this
Management Agreement shall not be assigned or subcontracted by any party without
the prior written consent of the other party and without first obtaining prior
approval by the National Indian Gaming Commission or the BIA, if applicable, and
any other necessary regulatory approvals. However, Pawnee reserves the right to
assign its rights and obligations under this Management Agreement to a tribally
chartered entity that it wholly owns and controls, and the Lakes reserves the
right to assign its rights and obligations under this Management Agreement to a
wholly owned subsidiary provided that the original Lakes hereunder, or an
affiliated entity reasonably satisfactory to Pawnee, remains obligated hereunder
by means of a guaranty or other accommodation reasonably satisfactory to Pawnee,
and further provided that Lakes shall have received prior approval from the
National Indian Gaming Commission and any other necessary regulatory approvals.
Any assigning party engaging in a permitted assignment described above shall and
shall cause its assignee to execute and deliver to the other party such
assignment and assumption agreements together with evidence of the due
authorization, execution, delivery and enforceability of such assignment


                                      -35-

<PAGE>

documents as may be reasonably requested. Other than as expressly provided
herein or in Section 9.2 below, any attempted assignment or subcontracting
without such consent and approval shall be void. Approval of any assignment or
subcontract to any new party must be preceded by a complete background
investigation of the new party as required by Section 8.1. Subject to the
preceding requirements, this Management Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors and
assigns.

     9.2 Change of Control in Ownership Interest. Any Change of Control (as
defined herein) in Lakes shall require prior written consent of Pawnee and be
subject to Legal Requirements, or this Management Agreement shall be terminated.
For purposes of this Management Agreement, a "Change of Control" means the
acquisition by any person or affiliated group of persons not presently members
of Lakes of beneficial ownership of 51% or more of membership interest in Lakes.

     9.3 Notices. Any notice, consent or any other communication permitted or
required by this Management Agreement shall be in writing and shall be effective
on the date sent and shall be delivered by personal service, via telecopier with
reasonable evidence of transmission, express delivery or by certified or
registered mail, postage prepaid, return receipt requested, and, until written
notice of a new address or addresses is given, shall be addressed as follows:

If to the Tribe:   Pawnee Travel Plaza Gaming Corporation
                   871 Little D. Drive, Building 68
                   P.O. Box 280
                   Pawnee, OK 74058,
                   Attention: Chairman

With a copy to:    David J. Ketelsleger, Esq.
                   McAfee & Taft
                   Two Leadership Square
                   Tenth Floor
                   211 North Robinson
                   Oklahoma City, OK 73102-7103

If to the Lakes:   Lakes Pawnee Management, LLC
                   130 Cheshire Lane
                   Minnetonka, MN 55305
                   Attention: Timothy J. Cope

With a copy to:    Kevin C. Quigley, Esq.
                   Johnson Hamilton Quigley Twait & Foley PLC
                   W1450 First National Bank Building
                   332 Minnesota Street
                   St. Paul, MN 55101-1314


                                      -36-

<PAGE>

          and      Brian J. Klein, Esq.
                   Maslon, Edelman, Borman & Brand, LLP
                   3300 Wells Fargo Center
                   90 South Seventh Street
                   Minneapolis, MN 55402-4140

     Copies of any notices shall be given to the Gaming Commission.

     9.4 Amendments. This Management Agreement may be amended only by written
instrument duly executed by all of the parties hereto and with any and all
necessary regulatory approvals previously obtained.

     9.5 Counterparts. This Management Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one and the same agreement.

     9.6 Force Majeure. No party shall be in default in performance due
hereunder if such failure or performance is due to causes beyond its reasonable
control, including acts of God, war, terrorism, fires, floods, or accidents
causing damage to or destruction of the Project Facilities or property necessary
to operate the Facility, or any other causes, contingencies, or circumstances
not subject to its reasonable control which prevent or hinder performance of
this Management Agreement; provided, however, that the foregoing shall not
excuse any obligations of Pawnee or its Affiliates to make monetary payments to
Lakes as and when required hereunder or in any related document or agreement.

     9.7 Time is Material. The parties agree that time is of the essence and the
time and schedule requirements set forth in this Management Agreement are
material terms of this Management Agreement.

     9.8 Further Assurances. The parties hereto agree to do all acts and deliver
necessary documents as shall from time to time be reasonably required to carry
out the terms and provisions of this Management Agreement.

     9.9 Severability. In the event that any provision of this Management
Agreement is, by final order of a court of competent jurisdiction or Government
Authority, held to be illegal or void, the validity of the remaining portions of
the Management Agreement shall be enforced as if the Management Agreement did
not contain such illegal or void clauses or provisions, and the parties shall
use their best efforts to negotiate an amendment to this Management Agreement
which will comply with the judicial order and maintain the originally
contemplated rights, duties and obligations of the parties hereunder.

     9.10 Sovereign Immunity. Except for the Resolution of Limited Waiver
attached hereto as EXHIBIT B and incorporated herein by reference, nothing in
this Management Agreement shall be deemed or construed to constitute a waiver of
sovereign immunity of Pawnee and the only


                                      -37-

<PAGE>

applicable waivers of sovereign immunity shall be those expressly provided and
executed by the Pawnees duly authorized representative and substantially
conforming to the form as approved by the parties. The parties agree that they
will not amend or alter the Resolution of Limited Waiver which will in any way
lessen the rights of any party as set forth in the Resolution of Limited Waiver,
including without limitation the covenant therein of Pawnee to preserve its
effective terms in the event of future changes in its legal status or
governance. This Section 9.10 shall survive termination of this Management
Agreement, regardless of the reason for the termination.

     9.11 Representations and Warranties of Lakes. The Lakes hereby represents
and warrants as follows:

          (a) This Management Agreement and all other agreements contemplated
     hereby have been duly authorized, executed and delivered by Lakes and, when
     approved by necessary Governmental Authorities as set forth (where
     applicable), will constitute a valid and binding obligation, enforceable
     against Lakes in accordance with its terms.

          (b) The execution and delivery of this Management Agreement and all
     other agreements contemplated hereby, the performance by Lakes of its
     obligations hereunder or thereunder and the consummation by Lakes of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Lakes or any of its affiliated companies is a party or any law,
     regulation, rule or ordinance or any order, judgment or decree of any
     federal, state, tribal or local court or require any regulatory approval
     beyond those contemplated herein.

          (c) Lakes has the full legal right, power and authority and has taken
     all action necessary to enter into this Management Agreement, to perform
     its obligations hereunder, and to consummate all other transactions
     contemplated by this Management Agreement.

     9.12 Representations and Warranties of Pawnee. Pawnee hereby represents and
warrants as follows:

          (a) Pawnee is a wholly-owned subsidiary of Pawnee TDC, established to
     own and operate the Project Facilities and the Project. Pawnee and Pawnee
     TDC are created under the laws of and are governmental instruments of the
     Pawnee Nation, a duly organized and recognized Indian tribe under the laws
     of Pawnee Nation and the United States.

          (b) Pawnee has full legal right, power and authority under the laws
     for the Pawnee Nation and has taken all official action necessary (i) to
     enter into this Management Agreement and authorize Pawnee to execute and
     deliver this Management Agreement, the Operating Note, Dominion Account
     Agreement, Security Agreement, Indemnity Agreement and any and all other
     documents and agreements related thereto or contemplated thereby
     (collectively, the "Transaction Documents"), (ii) to perform its
     obligations hereunder and thereunder, and (iii) to consummate all other
     transactions contemplated by this Management Agreement and the other
     Transaction Documents.


                                      -38-

<PAGE>

          (c) This Management Agreement, the Operating Note, and the other
     Transaction Documents, when executed and delivered by Pawnee and approved
     by necessary Governmental Authorities, will constitute a valid, binding and
     perfected obligations, enforceable against Pawnee in accordance with their
     terms.

          (d) The execution and delivery of this Management Agreement, the
     Operating Note, and the other Transaction Documents, the performance by
     Pawnee of its obligations hereunder and the consummation by Pawnee of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Pawnee, Pawnee TDC or Pawnee Nation is a party, law, regulation,
     rule or ordinance or any order judgment or decree of any federal, state,
     tribal or local court, or require any approval by Governmental Authorities
     beyond those contemplated herein.

          (e) Neither Lakes, the Project, the Project Facilities nor the
     transaction(s) between the parties contemplated by this Management
     Agreement, the Operating Note, and any related security documents and
     instruments described herein are now, or at any time during the term of
     this Management Agreement will be, subject to any tribal tax of any sort
     other than (i) reasonable pass-through taxes on Project patron which are
     consistent with gaming resort industry practices, and (ii) the fees and
     assessments described in the definition of "Costs of Operations."

          (f) The Pawnee Nation is legally permitted to conduct Class II Gaming
     (and Class III Gaming in the event of a Compact) activities in the State
     under all Legal Requirements, and the Gaming Facility Site for the Project
     constitutes "Indian lands" upon which the Pawnee Nation may legally conduct
     gaming under IGRA.

          (g) None of Pawnee, Pawnee TDC, Pawnee Nation or any of their
     Affiliates has enacted any law, ordinance, rule or regulation impairing the
     rights or obligations of Pawnee or Lakes under this Management Agreement or
     under any Transaction Documents contemplated hereby.

          (h) Prior to the Commencement Date, and except as permitted by Section
     2.23 hereof, Pawnee will not cause or voluntarily permit any lien or
     encumbrance to be created on the Project Facilities or the Project's Gaming
     Facility Site.

          (i) The Pawnee Nation has entered into an agreement with Lakes or its
     Affiliate that all gaming and related project facilities will be owned and
     operated by Pawnee or another subsidiary of Pawnee TDC and granting Lakes
     or its Affiliate the first right of refusal to manage any gaming projects
     owned and operated by Pawnee or another subsidiary of Pawnee TDC under the
     same terms and conditions described in this Management Agreement, and the
     agreement shall contain representations, warranties and covenants
     substantially similar to those contained in Articles 9 and 10 hereof
     insofar as applicable.

     9.13 Governing Law. This Management Agreement has been negotiated, made and


                                      -39-

<PAGE>

executed at Pawnee's office located in the State of Oklahoma and shall be
governed by and construed in accordance with the laws of the State of Oklahoma,
without regard to its conflict of laws provisions, and applicable federal laws.

     9.14 Entire Agreement. This Management Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all prior
agreements relating to management of gaming and ancillary operations conducted
by Pawnee at the Project Facilities.

     9.15 Representatives of Pawnee. Pawnee shall furnish to Lakes a list of the
authorized representatives who are empowered to act on behalf of Pawnee for the
purposes of this Management Agreement and Pawnee shall keep such list current.
Pawnee hereby acknowledges and agrees that to the extent any authorization,
consent or other approval of Pawnee is required under this Management Agreement
or any related Transaction Documents and Pawnee shall provide to Lakes a
resolution naming any individual or individuals authorized to represent the
Pawnee for purposes or for the purpose of the operation and performance of
Management Agreement and related Transaction Documents, then Lakes shall be
entitled to rely on all decisions, authorizations, consents, and approvals
provided by such individual or individuals, as applicable, until such time as
Pawnee shall deliver to Lakes an additional tribal resolution revoking or
otherwise modifying such authority.

     9.16 Limitations of Liability. Lakes expressly agrees that Pawnee's total
aggregate liability for damages for breach of the Management Agreement shall be
limited in accordance with the Resolution of Limited Waiver attached hereto as
EXHIBIT B and incorporated herein by reference. Pawnee shall bear no liability
for further damages.

     9.17 Approvals. Unless otherwise provided herein, all approvals or consents
required by either party hereunder shall not be unreasonably withheld or
delayed. Unless otherwise provided herein, approval by Pawnee's Board of
Directors or its duly authorized representative(s) shall be deemed to constitute
approval by Pawnee and approval by the Chief Executive Officer of the Lakes
shall be deemed to constitute approval by the Lakes.

     9.18 Best Efforts. Except as otherwise provided herein, Lakes and Pawnee
shall use their best efforts to perform and fulfill their obligations under this
Management Agreement in the manner required by this Management Agreement.

     9.19 Request for NIGC Approval. The parties specifically request that the
NIGC, or the Secretary where appropriate, approve this Management Agreement and
the other Transaction Documents, if required, or declare that such approval is
not required.

     9.20 Non-disclosure. The parties agree not to divulge to third parties the
terms of this Management Agreement or any other proprietary or confidential
information exchanged between the parties pursuant to this Management Agreement,
unless (i) the information is required to be disclosed pursuant to judicial
order or Legal Requirements, (ii) the information is at the time of disclosure
already in the public domain, or (iii) to the extent required in order to obtain
financing.


                                      -40-

<PAGE>

This prohibition shall not apply to disclosures by either party to their
attorneys, accountants, or other professional advisers. In situations where
disclosure of the terms of this Management Agreement to regulatory, governmental
or judicial entities is required by law or regulations, the parties will make
reasonable efforts to secure confidential treatment of the economic terms of
this Management Agreement by such entities; provided, however, this disclosure
restriction shall not prohibit Lakes making any SEC filings it deems legally
necessary. The parties agree to consult with each other and cooperate regarding
any press releases regarding this Management Agreement and the relationships
described herein.

     9.21 Other Business Opportunities. During the term of this Management
Agreement, or until Lakes is repaid in full on the Operating Note, whichever is
later, Pawnee agrees that, subject to all Legal Requirements, Pawnee may pursue
other commercial, gaming and economic development opportunities in the State;
provided it grants to Lakes the right of first refusal to participate with
Pawnee upon the terms and conditions proposed by Pawnee, with prompt response by
Lakes required, but in no event later than thirty (30) days after written notice
from Pawnee. In the event that Lakes declines to participate with Pawnee upon
such terms and conditions, Pawnee shall have the right to pursue such
opportunity but may not offer to an unrelated third party terms and conditions
more favorable than those offered to Lakes. If Pawnee does not enter into a
signed agreement with such unrelated third party regarding the other commercial,
gaming and economic development opportunity which has been declined by Lakes
within one (1) year of such declination, then Lakes' right of first refusal
granted herein is reinstated for that opportunity.

     9.22 Use of Trade Marks and Trade Names. To assure that Pawnee can continue
operation of the Project Facilities without disruption in the event that this
Management Agreement is terminated or not renewed, Lakes agrees that it will not
use any trade mark or trade name to identify any portion of the Project
Facilities or services offered within the Project Facilities unless such trade
mark or trade name is registered in the name of Pawnee.

     9.23 Recitals. The recitals at the beginning of this Management Agreement
are true and are incorporated by reference herein.

     9.24 Non-Competition. Lakes agrees that, during the term of this Management
Agreement, it will not finance, manage, or consult in connection with any
facility where Gaming Operations are or will be conducted within a radius of
twenty-five (25) miles from the Gaming Facility Site without the prior written
consent of Pawnee. Pawnee agrees that, during the term of this Management
Agreement, neither it nor its Affiliates will solicit or enter into any
negotiations or agreements with any person or company with respect to any Gaming
Operations to be conducted within twenty-five (25) miles of the Gaming Facility
Site, nor conduct any Gaming Operations within twenty-five (25) miles of the
Gaming Facility Site, without the prior written consent of Lakes.

                                   ARTICLE 10
                               DISPUTE RESOLUTION


                                      -41-

<PAGE>

     10.1 Disputes Between the Enterprise and Patrons. Disputes that arise
between the Project and any patron of the Project Facilities shall be resolved
in accordance with the Tribal-State Compact and tribal ordinances, if
applicable.

     10.2 Disputes Between the Project and Project Employees. Pawnee and Lakes
shall jointly develop an employee dispute resolution policy, and Lakes, as agent
of Pawnee, shall ensure that the Project's general manager shall implement and
administer the employee dispute resolution policy after its adoption.

     10.3 Disputes Between Pawnee and Lakes. Disputes between Pawnee and Lakes
with respect to this Management Agreement, the Operating Note, or any other
Transaction Documents, or a party's performance hereunder or thereunder, shall
be resolved by the following dispute resolution process and pursuant to the
Resolution of Limited Waiver attached hereto as Exhibit B.

     (a) The parties shall use their best efforts to settle the dispute. To this
effect, they shall consult and negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties.

     (b) If the parties do not reach such solution within a period of ten (10)
days, then, upon notice by either party to the other, all disputes shall be
settled by arbitration administered by the American Arbitration Association in
accordance with the provisions of its Commercial Arbitration Rules in effect at
the time of submission; except that: (a) the question whether or not a dispute
is arbitrable shall be a matter for binding arbitration by the arbitrators, such
question shall not be determined by any court and, in determining any such
question, all doubts shall be resolved in favor of arbitrability; and (b)
discovery shall be permitted in accordance with the Federal Rules of Civil
Procedure, subject to supervision as to scope and appropriateness by the
arbitrators. Unless the parties otherwise agree to in writing, arbitration
proceedings shall be held in Oklahoma City, Oklahoma.

     (c) The arbitration proceedings shall be conducted before a panel of three
neutral arbitrators, all of whom shall be currently licensed attorneys, actively
engaged in the practice of law for at least ten (10) years, one of which shall
have five (5) years of experience in federal Indian law, and one of which shall
have five (5) years of experience in the gaming industry. The arbitrator
selected by the claimant and the arbitrator selected by respondent shall, within
ten (10) days of their appointment, select a third neutral arbitrator. In the
event that they are unable to do so, the parties or their attorneys may request
the American Arbitration Association to appoint the third neutral arbitrator.
Prior to the commencement of hearings, each of the arbitrators appointed shall
provide an oath or undertaking of impartiality. Pawnee further agrees that any
arbitration proceeding held in connection with any dispute with respect to the
this Management Agreement, the Operating Note, or any other Transaction Document
may be consolidated with any other arbitration proceeding involving Lakes or its
Affiliates and any of Pawnee's Affiliates.


                                      -42-

<PAGE>

     (d) The arbitration award shall be in writing signed by each of the
arbitrators, and shall state the basis for the award. The arbitration award
shall be set forth in reasonable detail as to its findings of fact and law, and
basis of determination of award form and amount. In connection with any
arbitration award, the arbitrators shall be empowered to take the actions and
enforce the judicial remedies described in Paragraph 5 of the Resolution of
Limited Waiver; provided however, that although the arbitrators may award
damages in the event Pawnee or the Gaming Commission do not to comply with the
award, the arbitrators may not require Pawnee or the Gaming Commission to take
or modify any governmental legislative decision or action which the arbitrators
have determined has resulted in the dispute between the parties and is contrary
to the parties rights, liabilities or obligations under this Management
Agreement, the Operating Note, or any other Transaction Document ("Specific
Performance Restriction"). Provided further, that: (a) should the arbitrators
determine that there has been an intentional bad faith violation of a party's
rights under this Management Agreement or any other Transaction Documents by
Pawnee or Gaming Commission, and if Pawnee or the Gaming Commission do not
reverse such intentional bad faith violation through governmental legislative
decision or action within thirty (30) days after the being notified by the
arbitrators of such determination, then the arbitrators shall award one-and-half
(1 1/2 ) times damages to Lakes for damages suffered as a consequence of
Pawnee's or Gaming Commission's intentional bad faith violation; and (b) such
Specific Performance Restriction shall not prevent Lakes from enforcing the
Operating Note, the Security Agreement, the Dominion Account Agreement, nor from
realizing on collateral encumbered thereby.

     (e) Except to the extent such enforcement will be inconsistent with a
specific provision of this Agreement, arbitration awards made pursuant to this
Article 10 shall be enforceable in federal court under Title 9 of the United
States Code and any applicable tribal, federal or state law governing the
enforcement of arbitration awards. In addition to any basis for appeal of an
arbitration award stated in Title 9 of the United States Code or any applicable
law governing the enforcement of arbitration awards, either party hereto may
appeal an arbitration award on the basis that the arbitrator or arbitrators
incorrectly decided a question of law in making the award, or the award was made
in an arbitrary or capricious manner or in manifest disregard of the factual
evidence.

     (f) Either party hereto, without having to exhaust any tribal remedies
first, shall have the right to seek and obtain a court order from a court having
jurisdiction over the parties requiring that the circumstances specified in the
order be maintained pending completion of the arbitration proceedings, to the
extent permitted by applicable law.

     (g) Judgment on any arbitration award may be entered in any court having
jurisdiction over the parties. The arbitrators shall not have the power to award
punitive, exemplary or consequential damages, or any damages excluded by or in
excess of any damage limitations expressed in this Agreement.

     (h) Pawnee hereby expressly waives, and also waives its right to assert,
sovereign immunity and any and all defenses based thereon with respect to
Claims; and Pawnee hereby consent to (i) binding arbitration under the
Commercial Arbitration Rules of the American


                                      -43-

<PAGE>

Arbitration Association, and (ii) judicial proceedings in or before the United
States District Court for the Northern District of Oklahoma, or if that court
determines it is without jurisdiction, then to the courts of the State of
Oklahoma and all courts to which an appeal therefrom may be available, but
solely to compel, enforce, modify or vacate any arbitration award.

     (i) To the extent lawful in connection with any such dispute, Pawnee
expressly waives the application of the doctrines of exhaustion of tribal
remedies or comity that might otherwise require that a claim be heard first in
tribal court or other tribal forum of Pawnee Nation.

     (j) The parties agree that: (1) in the event that a dispute submitted to
arbitration under this section involves the right of Lakes to continue to
receive compensation under Section 5.5 hereof, or (2) in the event that Lakes
appeals an agency decision under Section 8.2 for removal/divestiture, then any
compensation which is asserted to be due to Lakes during such dispute shall, if
not paid to Lakes, be deposited into an interest bearing escrow account with the
entity that is designated as the "Depository" under the Dominion Account
Agreement and Lakes shall be granted a security interest in said escrow account
which interest is contingent, as follows: such escrow funds shall be released to
Lakes upon an arbitration award being issued in its favor or on the date the
agency action under Section 8.2 is reversed by agency administrative or judicial
appeal; provided that upon final conclusion of such arbitration or agency
administrative or judicial appeal, any portion of such escrowed funds not
expressly awarded to Lakes shall be immediately released unconditionally to
Pawnee.

        [Rest of page left blank intentionally; signature page to follow]


                                      -44-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Management Agreement
as of the above written date.

Pawnee Travel Plaza Gaming              Lakes Pawnee Management, LLC
Corporation


By: /s/ Monty Matlock                   By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Monty Matlock                     Timothy J. Cope
      -------------------------------   Its: President & Chief Financial Officer
Its: Chairman
     --------------------------------

ATTEST:


By: /s/ Leslie Hand
    ---------------------------------
Name: Leslie Hand
      -------------------------------
Its: President
     --------------------------------

Approved pursuant to 25 U.S.C.
Section 2711

National Indian Gaming Commission


By:
    ---------------------------------
Print Name: Philip N. Hogen
Its Chairman


                                      -45-

<PAGE>

                                LIST OF EXHIBITS

Exhibit A Legal Description of Gaming Facility Site

Exhibit B Resolution of Limited Waiver of Immunity from Suit


                                      -46-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.101
<SEQUENCE>36
<FILENAME>c92713exv10w101.txt
<DESCRIPTION>OPERATING NOTE
<TEXT>
<PAGE>
                                                                  Exhibit 10.101

                                 OPERATING NOTE
                                                           Minnetonka, Minnesota
                                                                January 12, 2005

     FOR VALUE RECEIVED, PAWNEE TRAVEL PLAZA GAMING CORPORATION ("MAKER"), A
WHOLLY OWNED SUBSIDIARY OF THE PAWNEE TRIBAL DEVELOPMENT CORPORATION, EACH
CREATED UNDER THE CONSTITUTION OF AND A GOVERNMENTAL SUBDIVISION OF THE PAWNEE
NATION OF OKLAHOMA, A FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the
order of LAKES PAWNEE MANAGEMENT, LLC, A MINNESOTA LIMITED LIABILITY COMPANY
("LENDER"), in the United States of America, in immediately available funds, at
such place as the holder hereof may from time to time designate, or in the
absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the principal sum of the aggregate unpaid principal
amount of all "Guaranteed Minimum Payment Advances" and "Working Capital
Advances" made to Maker pursuant to Sections 5.3(b) and 5.7, respectively, of
the Management Agreement for a Gaming Facility and Related Ancillary Facilities
dated January 12, 2005 entered into between the Maker and Lender (the
"Management Contract"), plus interest on any Working Capital Advances from the
date of such advances, in like money, in accordance with the following terms and
provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Management Contract.

     2. Interest. No interest shall accrue on any Minimum Guaranteed Payment
Advances. Each Working Capital Advance as and when made pursuant to the terms of
the Amended Memorandum Agreement shall bear interest at the Interest Rate, as
described herein, from and including the date the proceeds of such Working
Capital Advance are advanced (such date the "Funding Date" of such Advance)
through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be a Limited Recourse obligation, as defined in
the Management Contract, and secured by the real and personal property described
therein. Principal and interest, as applicable, on each Minimum Guaranteed
Payment Advance and Working Capital Advance (each an "Advance") shall be repaid
in accordance with the terms and provisions set forth in the Management
Contract. The Maker shall have the right to prepay all or any part of this
Operating Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity. In the event that the term of the Management Contract is
tolled under Section 6.6 thereof, Maker's obligation to make the monthly
installment payment hereunder shall be likewise tolled until the tolling under
Section 6.6 ceases (except to the extent that the Project shall receive any
business interruption insurance proceeds in connection with tolling under
Section 6.6, in which case Maker's obligation to make monthly installment
payments shall not be tolled).

     4. Interest Rate. The Interest Rate means an interest rate equal to the
greater of the prime rate of Chase Manhattan Bank, N.A. (or any successor Bank
by acquisition or merger) plus two percent (2%) per annum or the same rate as
the financing provided by any third party lender for


                                       -1-

<PAGE>

the development, construction and equipping of the Project Facilities in place
at the time of the advance, fixed as of the first business day of each calendar
month. Interest at the foregoing rate shall accrue and shall be payable as a
Limited Recourse obligation as provided in the Management Contract. Interest
shall be computed for the actual number of days elapsed on the basis of a year
consisting of 360 days. It is intended that the rate of interest hereon shall
never exceed the maximum rate, if any, which may be legally charged on the Loan
evidenced by this Operating Note ("Maximum Rate"), and if the provisions for
interest contained in this Operating Note would result in a rate higher than the
Maximum Rate, interest shall nevertheless be limited to the Maximum Rate and any
amounts which may be paid toward interest in excess of the Maximum Rate shall be
applied to the reduction of principal, or, at the lawfully exercised option of
the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books all Advances made to the Maker and all payments of principal amounts and
interest in respect of such Advances, which shall be presumptive evidence as to
the outstanding principal amount of all Advances; provided, however, that the
failure to make such notation with respect to any Advance or payments shall not
limit or otherwise affect the obligations of Maker.

     6. Default; Acceleration. If any Event of Default occurs, then the
outstanding principal amount of this Operating Note, any interest accrued
thereon from time to time, and any other sums then remaining unpaid hereunder,
at the option of the holder hereof and without notice, shall become immediately
due and payable and Lender may exercise any other rights or remedies available
under any Transaction Documents or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Operating Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  A material default by Maker in the performance by Maker of any of its
          covenants or commitments under the Management Contract or any
          Transaction Document or under any other agreement entered into with or
          in favor of Lender or any Affiliate of Lender, or a material default
          by Maker's Affiliate under any agreement executed by an Affiliate of
          Maker in favor of Lender or any Affiliate of Lender which default is
          not cured by Maker or its Affiliate as applicable within the
          applicable cure period thereunder after written notice of default is
          delivered to Maker or its Affiliate; provided, however, that if the
          nature of such default (but specifically excluding defaults curable by
          the payment of money) is such that it is not possible to cure such
          default within the cure period, such period shall be extended for so
          long as the


                                       -2-

<PAGE>

          breaching party shall be using diligent efforts to effect a cure
          thereof but no more than an additional sixty (60) days; or

     (d)  The Management Contract shall be terminated by either the Maker or the
          Lender; or

     (e)  Any representation or warranty given to the Lender by the Maker (or
          any of its representatives) in connection with entering into the
          Management Contract or the other Transaction Documents and/or any
          borrowing thereunder, or given by an Affiliate of Maker in connection
          with any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, or required to be furnished under
          the terms thereof, shall prove untrue or misleading in any material
          respect (as determined by the Lender in the exercise of its reasonable
          judgment) as of the time when given or shall fail to be true and
          correct in all material respects at any time during the term of the
          agreement; or

     (f)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or

     (g)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing or shall be insolvent.

     7. Security. This Operating Note shall be secured by a security interest
the Collateral granted by Maker to Lender pursuant to the Management Contract
and the other Transaction Documents, including the Dominion Account Agreement.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Operating Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Operating Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no


                                       -3-

<PAGE>

event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS OPERATING NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Operating Note.

     12. Applicable Law. This Operating Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Operating Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Operating Note is found by
a court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Operating Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this
Operating Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Operating Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Operating Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Operating Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Operating Note.

     16. Successors and Assigns. This Operating Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Operating Note.


                                       -4-

<PAGE>

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 9.3 of the Management Contract.

     18. Dispute Resolution/Limited Waiver of Sovereign Immunity. Maker and
Lender expressly agree that any dispute in connection with this Operating Note
shall be subject to the dispute resolution procedures and the limited waiver of
sovereign immunity contained in the Management Contract and the Resolution of
Limited Waiver attached thereto as Exhibit B, the terms of which are hereby
incorporated by reference thereto.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       -5-

<PAGE>

IN WITNESS WHEREOF, Maker has caused this Operating Note to be executed under
seal and delivered as of the date first above written.

                                        MAKER:

                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Title:
                                               ---------------------------------


                                        ATTEST:


                                        By: /s/ Tommie Briggs
                                            ------------------------------------
                                        Name: Tommie Briggs
                                              ----------------------------------
                                        Title: Treasurer
                                               ---------------------------------

              [Signature page to Pawnee Travel Plaza Operating Note
                    in favor of Lakes Pawnee Management, LLC]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.102
<SEQUENCE>37
<FILENAME>c92713exv10w102.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.102

                           DOMINION ACCOUNT AGREEMENT
                               (Lakes Management)
                               (Travel Plaza Site)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 12, 2005 (the "Effective Date'"), between Pawnee Travel Plaza Gaming
Corporation ("Pawnee") (and sometimes hereinafter referred to as the
"Borrower"), a wholly owned subsidiary of the Pawnee Tribal Development
Corporation ("Pawnee TDC"), each created under the Constitution of and a
governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee Nation"), a
federally recognized Indian tribe, located in the State of Oklahoma, whose
business office is located at 871 Little D. Drive, Building 68, P.O. Box 28,
Pawnee, OK 74058, and Lakes Pawnee Management, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes"), whose business office is
located at 130 Cheshire Lane, Minnetonka, Minnesota 55305, and when it has
executed a counterpart signature page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is created under the Constitution of and a
governmental subdivision of the Pawnee Nation, a federally recognized Indian
tribe eligible for the special programs and services provided by the United
States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     WHEREAS, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation; and Pawnee TDC has established Pawnee as a legal entity which will own
and operate specified gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     WHEREAS, Lakes has entered into an agreement with Pawnee dated January 12,
2005 ("Management Contract"), pursuant to which Lakes is to manage the Project's
Gaming Facility and related Ancillary Facilities owned by Pawnee.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of Gross Total Revenues
derived by the Borrower with respect to the Project (as set forth in the
Management Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Management Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Management
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean (i) all loans, compensation, fees, expenses and
other amounts owing by (a) Borrower to Lakes or its Affiliates under or with
respect to the Operating Note, and each of the other Transaction Documents (as
each of such terms are defined in the Management Contract), and (b) the Pawnee
Nation and/or Pawnee TDC to Lakes or its Affiliates under or with respect to the
Tribal Agreement or any other document or agreement executed in favor of Lakes
or its Affiliates by Pawnee Nation or Pawnee TDC in connection with the Project,
each of the foregoing, whether now existing or hereafter incurred or arising,
and (ii) together with any costs, expenses or other amounts hereafter owing by
the Borrower to Agent or Lakes pursuant to the terms of this Agreement, each of
the foregoing, whether now existing or hereafter incurred or arising.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.


                                                                          Page 2

<PAGE>

     "Project" shall have the meaning assigned to such term in the Management
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the Gross Total Revenues (as such term is
defined in the Management Contract) of the Project, including without limitation
credit card receivables and other accounts receivable related to the Project.

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Management Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Notwithstanding
any other term or provision contained herein or in the Management Contract, only
Lakes shall have the authority to make withdrawals from or exercise any other
rights with respect to Project Dominion Account; provided that upon written
notice to the Agent, Lakes may grant the Borrower the right (which may be
subsequently revoked by Lakes at any time) to make withdrawals and transfers
from the Project Dominion Account subject to any conditions set forth in such
notice. Agent hereby acknowledges the security interest in the Collateral
granted to Lakes by Borrower. On the date of execution of this Agreement, the
Borrower shall cause to be delivered to Lakes (a) such financing statements and
similar documents necessary to perfect the security interest granted to Lakes
pursuant to Section 3.1 hereof (the "Financing Statements") and (b) a legal
opinion in form and substance reasonably acceptable to Lakes, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by the Borrower, together with opinions as to the
Borrower's sovereign immunity waiver and noncontravention with laws and
agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct Lakes, any other manager of the Project, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be permitted provided the
collecting bank(s) execute and deliver the Joinder Agreement attached hereto as
Exhibit A with the Borrower, Lakes and the collecting banks in form mutually
acceptable to each of such parties), the Borrower shall transfer or cause to be
transferred all such Project Revenues or other Collateral, consisting of cash
and other collected funds directly by wire transfer of immediate available funds
to the Project Dominion Account on each Business Day. In the event that the
Borrower receives any payment that should have been deposited into


                                                                          Page 3

<PAGE>

the Project Dominion Account as provided pursuant to this Agreement, the
Borrower agrees that it will hold such amounts in trust for the benefit of
Lakes, and shall not commingle any such funds with any of its funds or other
property and shall immediately transfer such amounts to the Agent for deposit
into the Project Dominion Account. The Borrower agrees that the Agent's
officers, agents and employees are irrevocably authorized by it to endorse for
payment to the Agent any instruments received by the Agent for deposit into the
Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Subject to the terms
of this Agreement, Lakes acknowledges and agrees that during each calendar month
it shall make or permit such transfers from the Project Dominion Account to and
for the benefit of each of the Borrower and Lakes in such amounts and
priorities, for such purposes and as and when required pursuant to the terms of
Sections 2.8(b) and 5.5 of the Management Contract. Lakes further acknowledges
and agrees that transfers from the Project Dominion Account to Project Accounts
under Section 2.8(b) of the Management Contract and payment of the Minimum
Guaranteed Monthly Payment shall be timely made notwithstanding any provision of
this Dominion Agreement (except as otherwise provided under Section 5.2 hereof).
In connection with any such withdrawals and transfers and any other aspects of
the Project Dominion Account, the Agent shall acknowledge and comply with only
the withdrawal requests and other directions received from Lakes, except as
expressly provided in Section 2.2 above or pursuant to an arbitration award made
in an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges that when it shall release any funds from the Project Dominion
Account, then its security interest in such funds shall also be deemed to have
been released concurrently therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of any Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes itself and its Affiliates, subject only to Permitted Liens, of
all of the Borrower's right, title and interest in and


                                                                          Page 4

<PAGE>

to the Collateral. The Borrower represents and warrants that the Borrower is
(or, to the extent that the Collateral is acquired after the date hereof, will
be) the sole legal and beneficial owner of its respective Collateral and has
exclusive possession and control thereof; there are no security interests in,
liens, charges or encumbrances on, or adverse claims of title to, or any other
interest whatsoever in, such Collateral or any portion thereof except for
Permitted Liens; and that no financing statement, notice of lien, mortgage, deed
of trust or instrument similar in effect covering the Collateral or any portion
thereof or any proceeds thereof ("LIEN NOTICE") exists or is on file in any
public office, except as relates to Permitted Liens and except as may have been
filed in favor of Lakes relating to this Agreement or related agreements, or for
which duly executed termination statements have been delivered to Lakes for
filing. Without the prior written consent of Lakes, Borrower will not in any way
encumber, or hypothecate, or create or permit to exist, any lien, security
interest, charge or encumbrance or adverse claim upon or other interest in the
Collateral, except for Permitted Liens, and the Borrower will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein, except as expressly provided herein. The
Borrower will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or encumbrances permitted
by the Management Contract or any other Transaction Document or except as may
have been filed by or for the benefit of Lakes relating to this Security
Agreement or related agreements. The Borrower shall promptly notify Lakes of any
attachment or other legal process levied against any of the Collateral and any
information received by any Borrower relative to the Collateral, which may in
any material way affect the value of the Collateral or the rights and remedies
of Lakes in respect thereto.

          If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;


                                                                          Page 5

<PAGE>

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
and Lakes until such time as Lakes delivers a written notice to Agent and the
Borrower in accordance with Section 5.2 that Lakes is thereby exercising
exclusive control over the Project Dominion Account ("Notice of Exclusive
Control"), provided that the proceeds of any such investments are deposited in
or credited to the Project Dominion Account contemporaneously with such
transaction; and provided, further, such investment instructions shall not
affect the type or nature of Collateral for attachment and perfection purposes
under the Oklahoma Uniform Commercial Code (as may be amended from time to time)
or any other applicable law. After Agent receives the Notice of Exclusive
Control, it will immediately cease complying with any investment instructions
concerning Project Dominion Account originated by Borrower or its
representatives and shall comply with only such investment instructions as are
originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Management Contract has been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Management Contract.

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:


                                                                          Page 6

<PAGE>

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or LAKES may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach and
termination of the Management Contract, the Borrower will furnish the following
to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of the Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,
               shall be and remain subject to the provisions of Section 9.20 of
               the Management Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief


                                                                          Page 7

<PAGE>

               financial officer of the Borrower or an appropriate officer of
               the manager of the Project, substantially in the form set forth
               in Exhibit B stating that, except as explained in reasonable
               detail in such certificate, all Gross Total Revenues with respect
               to the Project has been deposited into the Project Dominion
               Account for the period covered by such financial statement. If
               such certificate discloses an exception to such certification,
               such certificate shall set forth what action the Borrower has
               taken or proposes to take with respect thereto.

     (d) Insurance. At such time as Lakes shall no longer be the Manager of the
Project, the Borrower shall cause to be maintained insurance as required by the
Management Contract and naming Lakes as an additional insured, loss payee and
mortgagee, if applicable. Upon request, the Borrower shall provide to the Agent
and Lakes certificates of insurance or copies of insurance policies evidencing
that such insurance satisfying the requirements of such Management Contract is
in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended for so long as the Borrower shall be using diligent efforts to
effect a cure thereof.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under the Operating Note and
shall have continued beyond any applicable grace or cure period.


                                                                          Page 8

<PAGE>

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower under
Section 5.5 of the Management Contract, and to apply the same towards the
repayment of the Obligations, and to endorse in the name of the Borrower any
checks, drafts, notes or other instruments or documents received in payment of
or on account of the Project Revenues or other Collateral; and any such proceeds
so received and prepaid shall be applied to installments of principal on the
Obligations in the inverse order of their maturity; and provided further that
Lakes may obtain any injunctive or other relief as is necessary for the
enforcement of this Agreement and the terms and provisions set forth herein, and
may exercise such other rights and remedies available by law or agreement;
PROVIDED, HOWEVER, that any and all obligations of Borrower and remedies of
Lakes shall be Limited Recourse and shall be subject to the limitations set
forth in the Resolution of Limited Waiver attached to the Management Contract;
and provided further that, notwithstanding any term or provision contained
herein, Lakes shall take all steps necessary to continue to permit and cause the
necessary withdrawals and transfers to be made from the Project Dominion Account
in accordance with Section 2.3 hereof, with the exception that Lakes shall be
entitled to retain all amounts otherwise payable to the Borrower under Section
6.5 (including any payments required to be made under Section 5.5(a)(i)) of the
Management Contract and apply the same towards the repayment of the Obligations;
and in no event shall Lakes exercise any remedy against the Borrower (excluding
other third parties) with respect to the Project Revenues other than such
remedies as are necessary to require their deposit into the Project Dominion
Account or seeking an accounting and turnover of any Project Revenues held in
trust by the Borrower as required under Section 2.2 hereof until such time that
the Borrower shall have ceased business operations at the Project, at which time
Lakes may exercise all rights and remedies under applicable law or by agreement
and apply all proceeds of the Collateral to the repayment of the Obligations.
Borrower agrees that, to the extent notice of sale shall be required by law with
respect to the disposition of any Collateral, at least ten (10) calendar days
notice to the Borrower of the time and place of any public sale or the time
after which a private sale is to be made shall constitute reasonable
notification. Lakes agrees that it shall withdraw and terminate any Notice of
Exclusive Control at such time that all outstanding Events of Default have been
cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and in exercising any such powers or
authority, the right to pay all expenses incurred in connection therewith,
including attorneys' fees. Borrower hereby agrees that it shall be bound by any
such payment made or incurred or act taken by Lakes hereunder and shall
reimburse Lakes for all reasonable payments made and expenses incurred under
this Agreement, which amounts shall be secured under this Agreement. Lakes shall
have no obligation to make any of the foregoing payments or perform any of the
foregoing acts


                                                                          Page 9

<PAGE>

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required


                                                                         Page 10

<PAGE>

to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement, and any such amounts
shall be deemed to be Costs of Gaming Operations under the Management Contract
and subject to the terms of Section 2.9 thereof.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,


                                                                         Page 11

<PAGE>

administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the Borrower shall not be and Lakes shall be responsible
for such related costs and expenses. If Borrower shall fail to pay any of such
costs when due, Lakes may make a withdrawal or proceeds from the Project
Dominion Account in an amount sufficient to cause the payment of the same or
reimburse Lakes for any such payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days prior to the Commencement Date (as estimated by the Borrower and
Lakes), Borrower shall select an eligible financial institution to act as the
agent (the "Agent") under this Agreement and cause the Agent to execute a
counterpart signature page to this Agreement, thereby becoming a party hereto.
Thereafter, there shall at all times be an Agent hereunder. Any such Agent shall
be a financial institution organized and doing business under the laws of the
United States of America or of any State, having a combined capital, undivided
profits and surplus of at least $500,000,000. If at any time the Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.


                                                                         Page 12

<PAGE>

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of resignation, the resigning Agent
may petition any court of competent jurisdiction for the appointment of a
Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower and Lakes (so long as a
Notice of Exclusive Control has not been issued by Lakes to the Agent) and
delivered to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.


                                                                         Page 13

<PAGE>

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Pawnee Travel Plaza Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Lakes:           Lakes Pawnee Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.


                                                                         Page 14

<PAGE>

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition without invalidating the remaining provisions
hereof, provided, however that where the provisions of any such applicable law
may be waived, they hereby are waived by the Parties to the fullest extent
permitted by law to the end that this Agreement shall be deemed to be a valid
and binding agreement in accordance with its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Management Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient; provided, however, that any and all
remedies of the Agent and Lakes shall be Limited Recourse. No failure on the
part of the Agent or Lakes to exercise and no delay in exercising, any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any power or right preclude any other or further exercise
thereof of any other power or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the Dominion Account Agreement as
defined and referred to in Section 2.8(a) of the Management Contract. As such
and without limiting the scope of such Management Contract, the provisions of
Section 9.10 and Article 10 of the Management Contract apply to this Agreement
and are hereby incorporated by reference, including, without limitation, the
limited sovereign immunity waiver, limitations on recourse and arbitration and
jurisdiction provisions contained therein and the Resolution of Limited Waiver
attached thereto. This Agreement and the Project Dominion Account will be
governed by the internal laws of the State of Oklahoma without giving effect to
its conflict of laws principles and without limiting the foregoing, the Oklahoma
Uniform Commercial Code (as may be amended form time to time) notwithstanding
any provision therein or other applicable law that would otherwise make such


                                                                         Page 15

<PAGE>

laws inapplicable to the Borrower. The parties hereto may not change the law
governing this Agreement and the Project Dominion Account without express
written consent of the Borrower, Agent and LAKES.

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Management Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 16

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        Pawnee Travel Plaza Gaming Corporation


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE MANAGEMENT, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: ___________, 200__

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________, a ________________________ ("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated January 12, 2005 (as amended or otherwise modified from time to time, the
"Dominion Agreement") by and among Pawnee Travel Plaza Gaming Corporation
("Borrower"), Lakes Pawnee Management, LLC ("Lakes") and
____________________________________ ("Agent"), the Collecting Bank, must
execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and management services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B
                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Pawnee Travel Plaza Gaming Corporation
(the "Borrower"), do hereby provide this Compliance Certificate in connection
with that certain Dominion Account Agreement dated January 12, 2005 (the
"Dominion Agreement"), by and between the Borrower, Lakes, and
__________________________ Bank (the "Bank"); capitalized terms used but not
otherwise defined herein shall have the meaning set forth in the Dominion
Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No.
          _________________________________ with the Bank.

                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.103
<SEQUENCE>38
<FILENAME>c92713exv10w103.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.103

                               SECURITY AGREEMENT

                            (LAKES PAWNEE MANAGEMENT)

                               (TRAVEL PLAZA SITE)

          This Security Agreement is made and entered into on January 12, 2005,
by and between Pawnee Travel Plaza Gaming Corporation (hereinafter referred to
as "Pawnee" or "Debtor"), a wholly owned subsidiary of the Pawnee Tribal
Development Corporation ("Pawnee TDC"), each created under the Constitution of
and a governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee
Nation"), a federally recognized Indian tribe, whose business office is located
at 871 Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes
Pawnee Management, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes" or "Secured Party"), whose business office is located at
130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the Constitution of and a governmental
subdivision of the Pawnee Nation, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into an agreement with Debtor dated
January 12, 2005 (as amended from time to time, the "Management Contract"),
pursuant to which Lakes is to manage the Project's Gaming Facility and related
Ancillary Facilities owned by Debtor.

     WHEREAS, pursuant to the Management Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Management Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges and
grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the


                                  Page 1 of 15

<PAGE>

Debtor's right, title and interest in and to the collateral described in Section
2 hereinbelow in each case whether now owned or hereafter acquired by Debtor in
order to secure the payment and performance of the obligations of Debtor to
Secured Party described in Section 3 herein below. On the date of execution of
this Agreement, Debtor shall cause to be delivered to Secured Party: (a) such
financing statements and similar documents necessary to perfect the security
interest granted to Secured Party pursuant to this Agreement (the "Financing
Statements"), and (b) a legal opinion in form and substance reasonably
acceptable to Secured Party, opining as to the due authorization, execution,
delivery and enforceability of this Agreement and the Financing Statements by
Debtor, together with opinions as to Debtor's sovereign immunity waiver and
non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Project, the Gaming
Facility Site and/or the Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Management
Contract); and each of the foregoing whether now owned or hereafter at any time
acquired by Debtor and wherever located, and includes all replacements,
additions, parts, appurtenances, accessions, substitutions, repairs, proceeds,
products, offspring, rents and profits, license rights and software attached or
relating thereto or therefrom, and all documents, records, ledger sheets and
files of Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Management Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "Project" means the business enterprise of the Debtor now or hereafter
created to engage in Class II Gaming and III Gaming (as defined in the Indian
Gaming Regulatory Act of 1988, Public Law 100-497 ("IGRA")) at the Project's
Gaming Facility, and to conduct the operations of any Ancillary Facilities of
the Project, including, but not limited to, operating and managing office space,
kids arcade, child care facility, hotel with swimming pool and golf course,
restaurant, RV park, retail stores, entertainment facilities, or the sale of
fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs.


                                  Page 2 of 15

<PAGE>

          "Project Facilities" means the buildings, structures and improvements
to be constructed and used by the Project for its gaming and ancillary
operations.

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Operating Note, and
each of the other Transaction Documents (as each of such terms are defined in
the Management Contract), and (b) the Pawnee Nation and/or Pawnee TDC to Secured
Party or its Affiliates under or with respect to the Tribal Agreement or any
other document or agreement executed in favor of Secured Party or its Affiliates
by Pawnee Nation or Pawnee TDC in connection with the Project, each of the
foregoing, whether now existing or hereafter incurred or arising, (ii) any and
all sums advanced by Secured Party in order to preserve the Collateral or
preserve Secured Party's security interest in the Collateral (or the priority
thereof) and (iii) the expenses of retaking, holding, preparing for sale or
lease, selling or otherwise disposing of or realizing on the Collateral, of any
proceeding for the collection or enforcement of any indebtedness, obligations or
liabilities of Debtor referred to above, or of any exercise by Secured Party of
its rights hereunder, together with reasonable attorneys' fees and disbursements
and court costs (collectively, the "Secured Obligations"); PROVIDED HOWEVER,
Secured Party agrees to terminate this Security Agreement upon request if Debtor
has satisfied the following conditions: (a) all Secured Obligations have been
repaid in full to Secured Party and Secured Party has no further obligation, if
any, to make advances under the Management Contract with respect thereto, and
(b) the Management Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

     4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 2.23 of the Management Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and


                                  Page 3 of 15

<PAGE>

perform this Security Agreement. This Security Agreement constitutes a legally
valid and binding obligation of the Debtor, enforceable against the Debtor in
accordance with its terms subject to any limitations set forth in the Resolution
of Limited Waiver attached to the Management Contract. Subject to the completion
of the items identified in Section 4(c) below, the provisions of this Security
Agreement are effective to create in favor of Secured Party a valid and
enforceable first, prior and perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default under, or constitute an event
which with notice or lapse of time or both will result in a breach of or
constitute a default


                                  Page 4 of 15

<PAGE>

under, any agreement, indenture, mortgage, deed of trust, equipment lease,
instrument or other document to which Debtor is a party, conflict with or
require approval, authorization, notice or consent under any law, order, rule,
regulation, license or permit applicable to Debtor of any court or any federal
or state government, regulatory body or administrative agency, or any other
governmental body having jurisdiction over Debtor or its properties, or require
notice, consent, approval or authorization by or registration or filing with any
person or entity (including, without limitation, any stockholder or creditor of
Debtor) other than any notices to Debtor from Secured Party required hereunder
except as may be agreed to by Debtor and Secured Party. Except for the Permitted
Liens, none of the Collateral is subject to any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor is
a party that may restrict or inhibit Secured Party's rights or ability to sell
or dispose of the Collateral or any part thereof after the occurrence of an
Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than 21 days after a
request by Secured Party, procure or execute and deliver all further instruments
and documents (including, without limitation, notices, legal opinions, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements) necessary or appropriate to and take any other actions which are
necessary or, in the judgment of Secured Party, desirable or appropriate to
perfect or to continue the perfection, priority and enforceability of Secured
Party's security interests in the Collateral, to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, to protect the Collateral against the rights, claims or interests of
third persons, or to effect or to assure further the purposes and provisions of
this Security Agreement, and will pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted


                                  Page 5 of 15

<PAGE>

hereby; (ii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices as may be necessary or
desirable, which Secured Party may reasonably request in order to perfect and
preserve the perfection and priority of the security interests granted or
purported to be granted hereby; (iii) if any Collateral shall be evidenced by a
promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for Permitted Liens, and the Debtor will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein, except as expressly provided herein. Debtor
will not permit any Lien Notices to exist or be on file in any public office
with respect to all or any portion of the Collateral except, in each case, for
Lien Notices of holders of Permitted Liens or except as may have been filed by
or for the benefit of Secured Party relating to this Security Agreement or
related agreements. Debtor shall promptly notify Secured Party of any attachment
or other legal process levied against any of the Collateral and any information
received by any Debtor relative to the Collateral, which may in any material way
affect the value of the Collateral or the rights and remedies of Secured Party
in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or otherwise disposed of in violation of these
provisions, the security interest of Secured Party shall


                                  Page 6 of 15

<PAGE>

continue in such Collateral or part thereof notwithstanding such sale, transfer,
assignment, exchange or other disposition, and Debtor will hold the proceeds
thereof in a separate account for Secured Party's benefit. Debtor will, at
Secured Party's request, transfer such proceeds to Secured Party in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Management Contract, Debtor
will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Management
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance with respect to
the Project and Collateral as required by the Management Contract and naming
Secured Party as an additional insured, loss payee and mortgagee, if applicable.
Upon request, the Debtor shall provide to the Secured Party certificates of
insurance or copies of insurance policies evidencing that such insurance
satisfying the requirements of such Management Contract is in effect at all
times;

          (j) Except as expressly permitted by the Management Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;


                                  Page 7 of 15

<PAGE>

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.


                                  Page 8 of 15

<PAGE>

     6. DEFAULTS AND REMEDIES

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Management Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor expressly covenants and agrees that Secured Party may, at
its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Management Contract is terminated and either (i) the
Commencement Date (as defined in the Management Contract) has not occurred, or
(ii) the Debtor does not or at any time fails to continue operations of Class II
Gaming and/or Class III Gaming at the Project's Gaming Facility or any material
portion of the Project Facilities, Secured Party may immediately take possession
of any of the Collateral wherever it may be found or require the Debtor to
assemble the Collateral or any part thereof and make it available at one or more
places as Secured Party may designate, and to deliver possession of the
Collateral or any part thereof to Secured Party, who shall have full right to
enter upon any or all of Debtor's places of business, premises and property to
exercise Secured Party's rights hereunder; and without notice (except as
specified below), sell the Collateral or any part thereof in one or more parcels
at one or more public or private sales, at any of Secured Party's offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor acknowledges and agrees that, to the extent notice of
sale shall be required by law, at


                                  Page 9 of 15

<PAGE>

least ten (10) days' written notice to Debtor of the time and place of any
public sale or of the date on or after which any private sale is to be made
shall constitute reasonable notification. Any public sale shall be held at such
time or times during ordinary business hours and at such place or places as
Secured Party may fix in the notice of such sale. Notwithstanding the foregoing,
Secured Party shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. Secured Party may, without notice or
publication, adjourn any public or private sale, or cause the same to be
adjourned from time to time by announcement at the time and place fixed for sale
or, with respect to a private sale, after which such sale may take place, and
any such sale may, without further notice, be made at the time and place to
which it was so adjourned or, with respect to a private sale, after which such
sale may take place. Each purchaser at any such sale shall hold the property
sold free from any claim or right on the part of Debtor, and the Debtor hereby
waives, to the full extent permitted by law, all rights of stay and/or appraisal
which Debtor now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted. The Debtor also hereby waives any
claims against Secured Party arising by reason of the fact that the price at
which any Collateral may have been sold at a private sale was less than the
price which might have been obtained at a public sale, even if Secured Party
accepts the first offer received and does not offer such Collateral to more than
one offeree. The parties hereto agree that the notice provisions, method, manner
and terms of any sale, transfer or disposition of any Collateral in compliance
with the terms set forth herein or any other provision of this Security
Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or


                                 Page 10 of 15

<PAGE>

agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:          Pawnee Travel Plaza Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Secured Party:   Lakes Pawnee Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP


                                 Page 11 of 15

<PAGE>

                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Management Contract, Debtor shall not assign any of its interest under this
Security Agreement without the prior written consent of Secured Party. Any
purported assignment inconsistent with this provision shall, at the option of
Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in


                                 Page 12 of 15

<PAGE>

connection herewith, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby and shall
nonetheless remain in full force and effect to the maximum extent permitted by
law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured
Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms


                                 Page 13 of 15

<PAGE>

hereof, and execute and deliver to Debtor such documents as Debtor may
reasonably request to evidence such termination. Such reassignment and
redelivery shall be without warranty by or recourse to Secured Party, and shall
be at the expense of Debtor; provided, however, that this Security Agreement
(including all representations, warranties and covenants contained herein) shall
continue to be effective or be reinstated, as the case may be, if at any time
any amount received by Secured Party in respect of the indebtedness and
obligations secured hereunder is rescinded or must otherwise be restored or
returned by Secured Party upon or in connection with the insolvency, bankruptcy,
dissolution, liquidation or reorganization of Debtor or any other person or upon
or in connection with the appointment of any intervenor or conservator of, or
trustee or similar official for, Debtor or any other person or any substantial
part of its assets, or otherwise, all as though such payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the Security Agreement as defined and
referred to in the Management Contract. As such and without limiting the scope
of such agreements, the provisions of Section 9.10 and Article 10 of the
Management Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver attached thereto. This Agreement will be governed
by the internal laws of the State of Oklahoma without giving effect to its
conflict of laws principles. The parties hereto may not change the law governing
this Agreement without express written consent of the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        PAWNEE TRAVEL PLAZA GAMING CORPORATION

ATTEST:


By:  /s/ Leslie Hand                    By: /s/ Monty Matlock
    ---------------------------------       ------------------------------------
Name: Leslie Hand                       Name: Monty Matlock
      -------------------------------         ----------------------------------
Its: President                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES PAWNEE MANAGEMENT, LLC

ATTEST:


By: /s/ Kevin Kean                      By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Kevin Kean                        Name: Timothy J. Cope
      -------------------------------   Title: President and
Its:                                           Chief Financial Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
          (PAWNEE TRAVEL PLAZA GAMING CORPORATION COLLATERAL LOCATIONS)

1.   _____________________________________________________________, OKLAHOMA

2.   _____________________________________________________________, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.104
<SEQUENCE>39
<FILENAME>c92713exv10w104.txt
<DESCRIPTION>INDEMNITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.104

                               INDEMNITY AGREEMENT

          This Indemnity Agreement is dated as of January 12, 2005, by and
between Pawnee Travel Plaza Gaming Corporation ("Pawnee"), a wholly-owned
subsidiary of the Pawnee Tribal Development Corporation ("Pawnee TDC"), each
created under the Constitution of and a governmental subdivision of the Pawnee
Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe,
located in the State of Oklahoma, and Lakes Pawnee Management, LLC, a Minnesota
limited liability company (hereinafter referred to as "Lakes"), whose business
office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                   WITNESSETH:

          WHEREAS, Lakes has entered into an agreement with Pawnee dated January
12, 2005 ("Management Contract"), pursuant to which Lakes is to manage the
Project's Gaming Facility and related Ancillary Facilities owned by Pawnee; and

          WHEREAS, Lakes and Pawnee have required the other to execute and
deliver this Indemnity Agreement to each other to induce Lakes to assist with
management of the Project Facilities and to induce Pawnee to allow Lakes to
comply with Environmental Laws in the management of the Project Facilities;

          NOW, THEREFORE, for valuable consideration, the receipt of which is
hereby acknowledged, Pawnee and Lakes agree as follows:

     1. RECITALS TRUE. The above recitals are true.

     2. DEFINITIONS. Capitalized terms used but not otherwise defined herein and
defined in the Management Contract shall have the same meaning herein as
therein. As used herein, the following additional terms shall have the following
meanings:

     (a) Environmental Laws: Together: (i) the Resource Conservation Recovery
Act, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C.
Sections 6901 et seq.; (ii) the Comprehensive Environmental Response,
Compensation and Liability Act, as amended by the Superfund Amendments and
Reauthorization Act, 42 U.S.C. Sections 9601 et seq.; (iii) the Clean Water Act,
33 U.S.C. Sections 466 et seq. and 33 U.S.C. Sections 1344 et seq.; (iv) the
Safe Drinking Water Act, 14 U.S.C. Sections 1401-1450; (v) the Toxic Substances
Control Act, 15 U.S.C. Sections 2601-2629; (vi) the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801 et seq.; (vii) all applicable
Oklahoma environmental laws; (viii) the Clean Air Act, 42 U.S.C. Sections 7401
et seq.; (ix) any other applicable federal, state, local or tribal environmental
laws or laws related to the regulation of Hazardous Materials; (x) any
applicable local, state or federal rules or regulations promulgated pursuant to
items (i) through (ix) and any similar local, state or federal laws, rules,
ordinances or regulations either in existence as of the date hereof, or enacted
or promulgated after the date of this Agreement, that concern the
transportation, storage, placement, handling, treatment, release, discharge,
generation, manufacture, production, disposal, management, control, discharge,
treatment, containment, and/or removal of substances or materials that are or
may become a threat to public health or the environment; or (xi) any common law
theory involving materials or substances which are or are alleged to be
hazardous to human health or the environment based on nuisance, trespass,
negligence, strict liability or other tortious conduct.

     (b) Hazardous Materials: Together: (i) any substance, material, or matter
that may give rise to liability under any Environmental Laws; (ii) any
"hazardous substance" listed in the U.S. Department of Transportation Table (49
C.F.R. 172.101), as the same may be amended from time to time; and (iii)
asbestos, lead paint, pcb's, urea formaldehyde foam insulation, radioactive
materials and any materials, the removal of which is required or the maintenance
of which is prohibited or penalized.


                                       -1-

<PAGE>

     (c) Lakes Indemnitee or Indemnitees: Lakes, its affiliates and subsidiaries
and any parent entities, together with their respective officers, directors,
shareholders, employees, agents, attorneys and other representatives, and their
successors and assigns. Each reference to any Lakes Indemnitee herein shall
refer jointly, severally and individually to each such party.

     (d) Pawnee Indemnitee or Indemnitees: Lakes, its affiliates and
subsidiaries and any parent entities, together with their respective officers,
directors, shareholders, employees, agents, attorneys and other representatives,
and their successors and assigns. Each reference to any Pawnee Indemnitee herein
shall refer jointly, severally and individually to each such party.

     (e) Project Claims: Any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, costs, expenses and disbursements (including,
but not limited to, all reasonable attorneys' fees and expenses and all other
professionals' or consultants' reasonable expenses incurred in investigating,
preparing for, serving as a witness in or defending against any action or
proceeding, whether actually commenced or threatened, which may be asserted
against any Lakes or Pawnee Indemnitee), arising from, in respect of, as a
consequence of, or in connection with any claims and matters (excluding
Environmental Losses) described in Sections 2.9, 7.1, 7.2, 7.3 and 7.4 of the
Management Contract, each whether now existing or hereafter arising.

     (f) Environmental Losses: Any and all liabilities, obligations, losses,
damages, penalties, claims, actions, suits, costs, expenses and disbursements
(including, but not limited to, all reasonable attorneys' fees and expenses and
all other professionals' or consultants' reasonable expenses incurred in
investigating, preparing for, serving as a witness in or defending against any
action or proceeding, whether actually commenced or threatened, which may be
asserted against any indemnitees), arising from, in respect of, as a consequence
of, or in connection with any of the following: (A) the remediation of any
Hazardous Material placed on or released from the Gaming Facility Site, Project
Facilities or the lands upon which they are located as may be required by law,
whether such removal is done or completed by Pawnee, Lakes, or any other person
or entity; (B) claims asserted at any time (prior to or after the date of this
Agreement) by any person or entity (including, without limitation, any
governmental agency or quasi-governmental authority, board, bureau, commission,
department, instrumentality or public body, court, or administrative tribunal (a
"Government Agency"), in connection with or in any way arising out of the
presence, storage, use, disposal, generation, transportation, or treatment of
any Hazardous Material on, in or under the Gaming Facility Site, Project
Facilities or the lands upon which they are located; (C) the violation or
claimed violation of any Environmental Laws in regard to the Gaming Facility
Site, Project Facilities or the lands upon which they are located; (D) the
preparation of an environmental audit on the Gaming Facility Site, Project
Facilities or the lands upon which they are located, whether conducted or
authorized by indemnitor, an indemnitee, or a third party; (E) the violation or
claimed violation of Oklahoma environmental laws, as a result of the condition
of the Gaming Facility Site, Project Facilities or the lands upon which they are
located, or any other applicable federal, state, local or tribal environmental
law or laws relating to the regulation of Hazardous Materials and the removal
from the Gaming Facility Site, Project Facilities or the lands upon which they
are located of paint, plaster, soil and other accessible material containing
levels of lead which are in violation of applicable law, each whether now
existing or hereafter arising.

     (g) Indemnified Obligations. With respect to Pawnee Indemnities, means the
Pawnee Project Indemnity Obligations and the Pawnee Environmental Indemnity
Obligations. With respect to Lakes Indemnities, means the Lakes Project
Indemnity Obligations and Lakes Environmental Indemnity Obligations.

     3. INDEMNITY.

     (a) Project Claims. Pawnee agrees to indemnify and to hold each Lakes
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or


                                       -2-

<PAGE>

incurred by, any of the Lakes Indemnitees resulting from or due to any Project
Claims excluding any such claims or losses resulting from a Lakes Indemnitee's
gross negligence or willful or criminal misconduct (individually and
collectively, the "Pawnee Project Indemnity Obligations"). Lakes agrees to
indemnify and to hold each Pawnee Indemnitee harmless from any and all claims,
causes of action, damages, penalties, fees and costs which may be asserted
against, or incurred by, any of the Pawnee Indemnitees resulting from Lakes'
gross negligence or willful or criminal misconduct (individually and
collectively, the "Lakes Project Indemnity Obligations").

     (b) Environmental Claims. Lakes agrees to indemnify and to hold each Pawnee
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or incurred by, any of
the Pawnee Indemnitees resulting from or due to any Environmental Losses arising
after the date of this Indemnity Agreement resulting from or due to Lakes' gross
negligence or willful or criminal misconduct (individually and collectively, the
"Lakes Environmental Indemnity Obligations"). Pawnee agrees to indemnify and to
hold each Lakes Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Lakes Indemnitees resulting from or due to any Environmental
Losses; excluding however any Environmental Losses arising after the date of
this Indemnity Agreement that result from Lakes gross negligence or willful or
criminal misconduct (individually and collectively, the "Pawnee Environmental
Indemnity Obligations").

     (c) Pawnee's duty to indemnify and hold harmless includes, but is not
limited to, loss or liability asserted in proceedings or actions commenced by
any person (including, but not limited to, any federal, state, or local
governmental agency or entity) before any court or administrative agency
asserting a claim for which Pawnee must indemnify Lakes Indemnitees under this
section. Lakes' duty to indemnify and hold harmless includes, but is not limited
to, loss or liability asserted in proceedings or actions commenced by any person
(including, but not limited to, any federal, state, or local governmental agency
or entity) before any court or administrative agency asserting a claim for which
Lakes must indemnify Pawnee Indemnitees under this section.

     (d) Each Lakes Indemnitee agrees that it shall not pay any Project Claim
asserted by any party without first offering Pawnee the opportunity and right to
assume the defense of any and all related actions or proceedings, but the
foregoing is not intended to restrict any Lakes Indemnitee's ability to obtain
reimbursement for any cost, expenses and related disbursements incurred in
connection with the investigation or defense of such claim or loss. Each Pawnee
Indemnitee agrees that it shall not pay any Project Claim asserted by any party
without first offering Lakes the opportunity and right to assume the defense of
any and all related actions or proceedings, but the foregoing is not intended to
restrict any Pawnee Indemnitee's ability to obtain reimbursement for any cost,
expenses and related disbursements incurred in connection with the investigation
or defense of such claim or loss.

     (e) Pawnee's obligations to indemnify and hold the Lakes Indemnitees
harmless hereunder shall survive any termination or expiration of the Management
Contract and the repayment and/or satisfaction of all obligations now or
hereafter owed by Pawnee to Lakes under the Management Contract and any other
instruments, documents or agreements related thereto. Lakes obligations to
indemnify and hold the Pawnee Indemnitees harmless hereunder shall survive any
termination or expiration of the Management Contract and the repayment and/or
satisfaction of all obligations now or hereafter owed by Lakes to Pawnee under
the Management Contract and any other instruments, documents or agreements
related thereto.

     4. ADVANCES UNDER OPERATING NOTE. Notwithstanding the foregoing and without
limiting the rights of Lakes under the Management Contract, all Project Claims
and Environmental Claims ultimately determined to be due from but not paid by
Pawnee on demand by any of the Lakes Indemnitees, shall be


                                       -3-

<PAGE>

deemed to be an Advance made by Lakes to Pawnee under the terms of the Operating
Note, shall accrue interest from the date incurred and shall continue to be
immediately due and payable. Notwithstanding the foregoing and without limiting
the rights of Pawnee under the Management Contract, all Project Claims and
Environmental Claims ultimately determined to be due from but not paid by Lakes
on demand by any Pawnee Indemnitees shall be deemed to be a prepayment made by
Pawnee to Lakes under the terms of the Operating Note; if the aggregate amount
of the Project Claims or Environmental Claims exceeds the outstanding balance of
the Operating Note, but only to the extent of the outstanding amount under the
Operating Note.

     5. OBLIGATION TO DEFEND.

     (a) Assumption of Defense. Upon request of any indemnitee, the indemnitor
shall be bound to defend any and all actions or proceedings that may be brought
against such indemnitee in connection with or arising out of any Indemnified
Obligations and the matters covered by this Agreement, and indemnitee shall give
written notice to the indemnitor of any litigation or proceedings pending,
threatened or commenced (whether or not served) against the indemnitee in
connection with any Indemnified Obligations. If indemnitor is defending an
indemnitee, indemnitor may settle the claim only with the indemnitee's prior
written consent, such consent not to be unreasonably withheld if the indemnitee
is not subject to any further liabilities, obligations, restrictions or
prohibitions with respect to said claim.

     (b) Delivery of Acknowledgment. Within 30 days from the date of receipt by
indemnitor from any indemnitee of a request to defend (which request shall refer
to such 30-day time period), indemnitor must acknowledge in a writing its duty
to defend and that such claim is covered in its entirety by this Agreement (the
"Acknowledgment") or if in the judgment of the indemnitor such claim is not
covered in its entirety by this Agreement, the statement of indemnitor to such
effect including its reasons for such judgment in reasonable detail; provided,
however, that until the Indemnitee receives the Acknowledgment, the Indemnitee
shall be entitled to defend such claim and Indemnitor shall be bound in the
manner set forth in Section 5(d) hereof.

     (c) Conduct of Defense; Participation by Indemnitee. If indemnitor is
defending an indemnitee, such defense shall be conducted by reputable attorneys
retained by indemnitor, reasonably satisfactory to said indemnitee, at
indemnitor's sole cost and expense. In addition, said indemnitee shall have the
right to participate in such proceedings at said indemnitee's sole cost and
expense and to be represented by attorneys in addition to the attorneys retained
by indemnitor of said indemnitee's own choosing and at said indemnitee's sole
cost and expense, except that if the Indemnitee reasonably concludes, by
applying applicable standards of professional responsibility, that the interests
of indemnitee and of indemnitor in the action conflict in such a manner as to
require retention of separate counsel for the indemnitee, indemnitor shall
reimburse indemnitee its reasonable fees for separate counsel chosen by the
indemnitee. Notwithstanding the foregoing, if an indemnitee, at any time,
refuses to enter into a settlement agreement negotiated by indemnitor or its
counsel, indemnitor shall no longer be liable for an adverse judgment against
such indemnitee to the extent that such adverse judgment exceeds said settlement
amount and such indemnitee shall be liable for all of its defense costs after
such refusal.

     (d) Indemnitor's Failure to Defend. If indemnitor fails to deliver the
Acknowledgment or fails to choose counsel reasonably satisfactory to the
indemnitee, indemnitor shall not thereafter be entitled to elect to defend such
action, and indemnitor shall be bound by and shall be conclusively liable for
the results obtained by the indemnitee, including without limitation the amount
of any judgment or good faith out-of-court settlement or compromise and all
costs and reasonable fees of counsel incurred by the indemnitee in connection
therewith, but subject always to the scope and limitations expressly set forth
in this Agreement.

     (e) Defense by Indemnitee. If an action or proceeding is brought against an
indemnitee or to which an indemnitee may be a party, and such indemnitee elects
to conduct its own defense because indemnitor fails to choose counsel reasonably
satisfactory to said indemnitee, indemnitor shall be conclusively


                                       -4-

<PAGE>

liable for the results obtained by the indemnitee, including without limitation
the amount of any judgment or good faith, out-of-court settlement or compromise.
In addition, indemnitor shall be liable for any and all costs and expenses,
including, but not limited to, all attorneys' fees, that said indemnitee incurs.

     6. ARBITRATION; LIMITED WAIVER OF SOVEREIGN IMMUNITY. Any disputes under
this Indemnification Agreement shall be subject to the dispute resolution and
arbitration provisions as provided in Article 10 of the Management Contract and
be resolved in the venues provided in Article 10 of the Management Contract.
Pawnee's limited waiver of sovereign immunity in Section 9.10 of the Management
Contract shall apply to this Agreement.

     7. LIMITED RECOURSE. The liability and obligations of Pawnee under or
relating to this Agreement shall always be Limited Recourse, and in no instance
shall any enforcement of any kind whatsoever be allowed against any assets of
Pawnee other than the limited assets of Pawnee specified in the definition of
the term "Limited Recourse" in the Management Contract.

     8. CAPTIONS, GENDER, AND NUMBER. Any section or paragraph, title or caption
contained in this Agreement is for convenience only and shall not be deemed a
part of this Agreement. As used in this Agreement, the masculine, feminine or
neuter gender, and the singular or plural number, shall each be deemed to
include the others whenever the context so allows.

     9. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of an
indemnitee in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power, right or privilege preclude any other or further exercise of any such
power, right of privilege. All powers, rights and privileges hereunder are
cumulative to, and not exclusive of, any powers, rights or privileges otherwise
available.

     10. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Oklahoma without giving effect to its
conflict of laws principles.

     11. AMENDMENTS, ASSIGNMENTS, ETC. Any provision of this Agreement may be
amended if, but only if, such amendment is in writing and is signed by each of
the parties hereto. No modification shall be implied from course of conduct.
This Agreement shall be binding on and inhered to the benefit of each of the
parties hereto and their respective successors and assigns, subject to the same
restrictions on assignability as set forth in the Management Contract. This
Agreement may be executed in separate counterparts and by facsimile and such
counterparts shall be deemed to constitute one binding document.

     12. NOTICES. Any notice or demand required to be given under this Agreement
shall be given in the same manner and shall be deemed effective in accordance
with the terms set forth in Section 9.3 of the Management Contract.

                 (Balance of this page intentionally left blank)


                                       -5-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Indemnity Agreement
to be executed under seal as of the 12th day of January, 2005

                                        Lakes Pawnee Management, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------


                                        Pawnee Travel Plaza Gaming Corporation


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Tommie Briggs
                                            ------------------------------------
                                        Name: Tommie Briggs
                                              ----------------------------------
                                        Its: Treasurer
                                             -----------------------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.105
<SEQUENCE>40
<FILENAME>c92713exv10w105.txt
<DESCRIPTION>GAMING DEVELOPMENT CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.105

                               GAMING DEVELOPMENT
                              CONSULTING AGREEMENT

     THIS GAMING DEVELOPMENT CONSULTING AGREEMENT (hereinafter referred to as
the "Agreement") is made as of January 12, 2005 ("Effective Date") by and
between the Pawnee Chilocco Gaming Corporation ("Pawnee"), a wholly owned
subsidiary of the Pawnee Tribal Development Corporation ("Pawnee TDC"), each
created under the Constitution of and a governmental subdivision of the Pawnee
Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe, and
Lakes Pawnee Consulting, LLC, a Minnesota limited liability company ("Lakes").

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established Pawnee, a wholly-owned subsidiary of Pawnee
TDC and tribally-chartered corporation, as the legal entity which will own and
operate certain gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     B. Pawnee wishes to develop, construct and operate gaming facility projects
which will conduct Class II Gaming (and also Class III Gaming activities in the
event of federal agency approval of a Tribal-State Compact between the Pawnee
Nation and the State of Oklahoma permitting such gaming) ("Gaming Facilities,"
as further defined herein), together with related amenities such as a hotel,
food and beverage facilities, retail outlets, and ancillary building and
enterprises that enhance the Gaming Facilities ("Ancillary Facilities," as
further defined herein) (the Gaming Facilities and the Ancillary Facilities
together, the "Project Facilities"). Pawnee and Lakes intend that the Project
Facilities will be developed as individual projects according to a development
schedule agreed to by the parties. The Project Facilities are expected to
generate substantial revenues for Pawnee TDC, and therefore significantly
improve the social, economic and health conditions of present and future tribal
members, while strengthening the Pawnee Nation's overall economic
self-sufficiency and self-determination.

     C. Lakes has the requisite skills, resources, experience, and expertise
related to real estate acquisitions, financing, development and construction,
and operations of gaming facilities and related amenities to assist Pawnee in
the development, financing and construction of the Project Facilities and to
provide consulting services relating to Project Facilities.


                                       -1-

<PAGE>

     D. Pawnee presently lacks the resources to develop and finance the Project
Facilities and desires to retain the services of the Lakes as set forth herein.

     E. For the compensation set forth herein, Lakes wishes to provide the
following services to Pawnee as more fully set forth herein: (1) funding of
Project Preliminary Development Loans; (2) assistance in arranging the Project
Permanent Financings; (3) development and construction management for the
Project Facilities; and (4) consulting services in connection with pre-opening
and post-opening operations of the Project Facilities.

     F. Pawnee desires to grant to Lakes the exclusive right to develop, arrange
for financing of, construct, equip and consult in connection with pre-opening
and post-opening operations of Pawnee's Project Facilities as set forth in this
Agreement, and Lakes desires to undertake those responsibilities in accordance
with this Agreement. Pawnee also desires to grant to Lakes the right to
participate in any other gaming project opportunity Pawnee pursues in the State
of Oklahoma under the same terms and conditions described herein.

     G. Pawnee and Lakes intend that this Agreement shall be operative and
binding upon the date of execution by the parties ("Effective Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Agreement" means this Gaming Development Consulting Agreement, as it may
be amended, supplemented, restated or replaced from time to time.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the particular Project's Gaming Facility; provided, however,
unless the parties otherwise agree, the term "Ancillary Facilities" shall not
include any of Pawnee Tribe's existing enterprises consisting of: fuel and
retail sales made at the existing U.S. Hwy 412 & State Hwy 18 "Travel Plaza"
currently operated by the Pawnee TDC or retail sales made or Gaming Operations
conducted at its existing "Trading Post" convenience store operated by the
Pawnee TDC as currently constructed at this time.


                                       -2-

<PAGE>

     "Architect" any architectural or engineering firm duly licensed to provide
architectural services for the Project Facilities.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Capital Expenditures" means any expenditure that is considered a capital
expenditure under GAAP.

     "Claim" means any dispute, claim, question, or disagreement between Pawnee
and Lakes or any Affiliate of Lakes that is directly or indirectly related to
this Agreement, any Pawnee Note or the Project Facilities, whether arising under
law or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or the maturity of any
Pawnee Note.

     "Class II Gaming" means class II gaming as defined in IGRA.

     "Class III Gaming" means class III gaming as defined in IGRA.

     "Collateral" is defined in Section 3.1(a).

     "Compact" means any Tribal-State Compact executed between the Pawnee Nation
and the State of Oklahoma entered into and approved by the United States
Secretary of the Interior either before or after the Effective Date of this
Agreement, and any amendments or modifications thereto.

     "Contractor" means any Person providing materials or services for the
Project pursuant to a contract.

     "Costs of Operations" means, with respect to any period of time occurring
on or after the Opening Date, the total of all costs required under GAAP to be
treated as operating expenses of a particular Project's Gaming Facility,
including but not limited to the following (so long as they constitute such
expenses):

          (a) all fees imposed upon the particular Project's Gaming Facility by
     the NIGC;

          (b) all amounts required to be paid to the State pursuant to a Compact
     or all amounts required to be paid to any local governmental entity under
     any agreement to mitigate off-reservation impacts related to the particular
     Project's Gaming Facility;

          (c) license or other fees for background investigations performed by
     the Gaming Commission of "key employees" and "primary management officials"
     of the particular Project's Gaming Facility, as defined in 25 C.F.R.
     Section 502.14 and 25 C.F.R. Section 502.19, less any amounts collected
     from employees for those fees, provided, however, such amounts allocable
     hereunder shall not exceed $25 per employee per any 12 month period
     (although the Gaming Commission may charge employees more for such licenses
     or fees); and reasonable and customary regulatory fees imposed on the
     Gaming Facility


                                       -3-

<PAGE>

     by the Gaming Commission (which amounts shall be subject to an annually
     approved budget submitted by the Gaming Commission).

          (d) depreciation and amortization expenses computed over reasonable
     periods permitted under GAAP and as further set forth below; and

          (e) to the extent properly allocable to the operation of the
     particular Project's Gaming Facility under GAAP, the following:

               (1) costs of administration, recruiting, hiring, firing and
          training employees;

               (2) compensation and benefits of employees;

               (3) interest charges on indebtedness (including the Project
          Permanent Financing) related to the particular Project's Gaming
          Facility; and

               (4) all other expenses, including, without limitation, those
          incurred for materials, supplies, inventory, utilities, repairs and
          maintenance (excluding Capital Expenditures), insurance and bonding,
          marketing, advertising, annual audits, accounting, legal or other
          professional and consulting, surveillance/security or guard services;

     provided however, that "Costs of Operations" do not include repayment of
     principal or Capital Expenditures or capital leases; and notwithstanding
     the foregoing, for purposes of this definition of Costs of Operations,
     depreciation for personal property shall be determined on a straight-line
     basis over a period of seven (7) years from the date such property is
     placed in service, and depreciation for real property, including
     improvements and buildings shall be determined on a straight-line basis
     over a period of thirty (30) years.

     "Design Professional" means any Person other than an Architect engaged in
the business of providing engineering, landscape, interior design or other
design services.

     "Development Committee" is defined in Section 2.2.

     "Effective Date" means the date the parties execute this Agreement.

     "Equipment Contract" means any contract to finance or acquire equipment or
property for use in connection with the Project Facilities, exclusive of
property to be provided pursuant to a Project Construction Contract, whether
constituting or characterized as a loan or credit agreement, purchase agreement,
financing lease, capital lease, participating lease, license or otherwise.

     "Equipment Vendor" means any Person that sells, leases or licenses personal
property to Pawnee for use in connection with the Project Facilities.


                                       -4-

<PAGE>

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project Facilities, including,
without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project Facilities.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession.

     "Gaming Commission" means any tribal commission or body of the Pawnee
Nation that is lawfully performing the obligations and exercising the rights of
the tribal gaming regulatory agency established pursuant to the Pawnee Nation's
Gaming Ordinance.

     "Gaming Facility" means, in connection with the particular Project, all
buildings, structures and improvements, together with all furniture, fixtures
and equipment and personal property (whether tangible or intangible) to be used
in connection with the operation of Class II Gaming and/or Class III Gaming.

     "Gaming Facility Site" is defined in Section 2.4.

     "Gaming Operation" means a "gaming operation" as defined in NIGC
regulations, 25 C.F.R. Section 502.10.

     "Gaming Ordinance" means any valid gaming ordinance of the Pawnee Nation
that is in effect for purposes of and to the extent required by IGRA or the
Compact.

     "Gaming Resort Project" means a casino resort project constructed on the
Pawnee Nation trust land known as the Chilocco site in north central Oklahoma.


                                       -5-

<PAGE>

     "Governmental Authority" means the United States, the BIA, the State, the
Pawnee Nation and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming or Class III Gaming at the
Gaming Facility, the construction of the Project Facilities, operation of the
Project Facilities, or Pawnee's or Lakes' obligations under this Agreement or
any Pawnee Note.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Lakes" means Lakes Pawnee Consulting, LLC, a Minnesota limited liability
company and a wholly owned subsidiary of Lakes Gaming and Resorts, LLC.

     "Lakes Event of Default" is defined in Section 10.1.

     "Legal Requirements" means the Compact and all present and future federal,
State, Tribe and local laws, ordinances, rules, regulations, permits, licenses
and certificates, and any and all present and future orders of courts and
administrative bodies of competent jurisdiction, applicable to the Project, the
Project Facilities, this Agreement, or any Pawnee Note.

     "Management Contact" means a management contract as defined in IGRA.

     "Material Breach" by any party means (a) a material failure of the party to
perform a material obligation under this Agreement for reasons not excused under
Section 13.5 (Force Majeure); or (b) any material representation or warranty
made by a party to this Agreement proves to be knowingly false or erroneous in
any material way when made or at any time shall fail to be true and correct in
all material respects.

     "NIGC" means the National Indian Gaming Commission, established by IGRA.

     "Opening Date" means the first day on which a Project's Gaming Facility is
open to the public for the conduct of Class II Gaming and/or Class III Gaming
following the first advance under the Project Preliminary Development Loan.

     "Pawnee Event of Default" is defined in Section 10.3.

     "Pawnee Note or Pawnee Notes" are defined in Section 3.1(a).

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the development, construction and equipping and future
expansion of each Gaming Facility and, if mutually agreed by the Parties, the
development, construction and equipping of one or more Ancillary Facilities in
connection with the individual gaming projects, whether such work shall occur
simultaneously or in phases during the term of this Agreement,


                                       -6-

<PAGE>

which the parties anticipate to be developed under this Agreement, including,
but not limited to, the following: the "Gaming Resort Project". The scope of
each Project and its Project Facilities shall be mutually agreed to by the
parties and made a part hereof through an addendum to this Agreement.

     "Project Architect" is defined in Section 2.5(a).

     "Project Architectural Agreement" is defined in Section 2.5(b).

     "Project Budget" is defined in Section 2.7.

     "Project Construction Contract" is defined in Section 5.1.

     "Project Costs" means (a) all costs of any nature (whether considered an
expense or Capital Expenditure) incurred by or on behalf of Pawnee, or by or on
behalf of Lakes or its Affiliates, in connection with any particular Project in
accordance with this Agreement, including all amounts advanced by Lakes to
Pawnee for the particular Project, including but not limited to all amounts
advanced under the Project Preliminary Development Loan and all amounts
evidenced by the Pawnee Notes; (b) all other amounts mutually agreed upon by
Lakes and Pawnee necessary for the development, construction and equipping of
the particular Project; and (c) with respect to the first Project developed
hereunder, $85,000 as required for initial and first year payments under the
Compact.

     "Project Development Fee" means the Project Development Fee for the
particular Project as calculated pursuant to Section 7.1 herein.

     "Project General Contractor" is defined in Section 5.1.

     "Project Permanent Financing" means one or more debt financings, which may
be in the form of one or more loans, financings, operating leases, issues of
debt securities, or other credit facilities, for which the source of funding is
not Lakes or an Affiliate of Lakes, incurred or issued by or on behalf of Pawnee
to finance or refinance all of the Project Preliminary Development Loan and
Project Costs.

     "Project Permanent Financing Date" means the first day on which Project
Permanent Financing is advanced to or made available for the benefit of Pawnee
for development of a particular Project.

     "Project Preliminary Development Budget" is defined in Section 3.1.

     "Project Preliminary Development Loan" is defined in Section 3.1.

     "Project Facilities" means the Gaming Facility and the Ancillary Facilities
in connection with the particular Project.

     "Proprietary Interest" means proprietary interest in a Gaming Operation
within the meaning of IGRA.


                                       -7-

<PAGE>

     "Revenues" means, with respect to a particular Project and any period of
time, all revenues of any nature derived directly or indirectly from the
operation of the Project Facilities and permitted under GAAP to be included in
the Project Facilities' total revenues for that period, less any credits or
refunds made to customers, guests, or patrons of the Project Facilities, not
considered a Cost of Operations and not applied in any prior period to reduce
Revenues. "Revenues" shall not include (i) any gratuities or service charges
added to the bill of a customer, guest or patron of the Project Facilities and
payable to employees of the Project Facilities, (ii) promotional allowances for
which there is not a direct offsetting item treated as a Cost of Operations,
(iii) any sales, excise, gross receipt, admission, entertainment, tourist or
other taxes or charges (or assessments equivalent thereto, or payments made in
lieu thereof) that are received from a customer, guest or patron and passed on
to governmental or quasi-governmental entities unrelated to the Pawnee, (iv) any
lawful federal, state, or local taxes or impositions (including any payment or
fee in lieu of the foregoing) that are collected from patrons of or vendors to
the Project Facilities, (v) proceeds of indebtedness of the Pawnee, and (vi)
proceeds from insurance or condemnation (other than proceeds of business
interruption insurance and other proceeds received to reimburse the Project's
Project Facilities for any item accounted for under GAAP as a Cost of
Operations).

     "State" means the State of Oklahoma.

     "Term" of this Agreement is defined in Section 11.1.

     "Tribal Agreement" shall mean the agreement between the Pawnee Nation and
Pawnee TDC and Lakes or its affiliates described in Section 8.2(n).

                                    ARTICLE 2
                             PRE-CONSTRUCTION PHASE

     Section 2.1 Effective Date. This Agreement shall become effective and
binding upon the date of execution by the parties.

     Section 2.2 Creation of Development Committee. Within 15 days after the
Effective Date of this Agreement, the parties shall establish a Development
Committee that will have the powers, obligations and authorities as provided
herein. The Development Committee shall consist of five (5) persons: three
Pawnee representatives and two Lakes representatives. Decisions of the
Development Committee shall be made by majority vote of all members with at
least one Pawnee representative and one Lakes representative present and if not
present, the other Pawnee representatives and the other Lakes representative,
participating and voting via teleconference.

     Section 2.3 Exclusive Right to Develop. Pawnee hereby grants to Lakes the
exclusive right to assist in the financing, development, construction, equipping
and consulting in connection with pre-opening and post-opening operations of any
Class II Gaming and/or Class III Gaming facility and any ancillary facilities
enhancing such gaming facility operated by Pawnee in the State of Oklahoma,
including a hotel, any convention center, food and beverage


                                       -8-

<PAGE>

outlets, retail outlets, and any other enterprise designed to promote, support,
or enhance such gaming facility.

     Section 2.4 Gaming Facility Site Selection. With respect to each particular
Project, the Development Committee shall designate the location of the proposed
site on which the Gaming Facility shall be constructed (the "Gaming Facility
Site"), provided, the site upon which the facility housing Class II and/or Class
III Gaming shall be located on and must constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under IGRA.

     Section 2.5 Project Architect; Plans and Specifications; Design
Professionals. With respect to the pre-construction development of each
particular Project, the parties agree to the following provisions.

     (a)  Selection of Project Architect. As soon as reasonably practical after
          the Effective Date of this Agreement, Lakes shall propose to the
          Development Committee one or more Architects to provide customary
          architectural services with respect to the Particular Project's
          Project Facilities, although Pawnee also shall have the right to
          propose to the Development Committee additional architects for
          consideration.. As soon as reasonably practical, the Development
          Committee shall either approve or reject each proposed Architect. In
          the case of a rejection, the process described in this Section 2.5(a)
          shall be repeated until the Development Committee has approved one or
          more Architects proposed for the particular Project ("Project
          Architect").

     (b)  Project Architectural Agreement; Plans and Specifications. Once an
          Architect has been approved under Section 2.5(a), Lakes shall
          negotiate proposed agreements with each Architect approved, and shall
          propose the same to the Development Committee (each, a "Project
          Architectural Agreement"). As soon as reasonably practical, the
          Development Committee shall either approve or reject each proposed
          Project Architectural Agreement. In the case of a rejection, the
          process described in this Section 2.5(b) shall be repeated until the
          Development Committee has approved the Project Architectural
          Agreements proposed by Lakes. Upon approval, Pawnee shall take
          necessary action to authorize and execute the applicable Project
          Architectural Agreements. After execution of each Project
          Architectural Agreement, Lakes shall coordinate the Architect's
          preparation of mutually agreeable preliminary basic plans, drawings
          and specifications for the Project's Project Facilities. Lakes shall
          also coordinate the Architect's preparation of mutually agreeable
          construction drawings and final design, plans and specifications for
          the Project Facilities, and propose the same for approval by the
          Development Committee. The completed and approved final plans,
          together with any modifications thereof proposed by Lakes and approved
          by the Development Committee, shall constitute the "Project Plans and
          Specifications."


                                       -9-

<PAGE>

     (c)  Selection of Additional Design Professionals for Project. If the
          Development Committee determines that design services for the
          Project's Project Facilities from Design Professionals are desirable,
          Lakes and Pawnee may propose to the Development Committee one or more
          Design Professionals and the proposed services of each. As soon as
          reasonably practical, the Development Committee shall either approve
          or reject the proposed Design Professionals. In the case of a
          rejection, the process described in this Section 2.5(c) shall be
          repeated until the Development Committee has approved all Design
          Professionals proposed by Lakes. After approval of each Design
          Professional by the Development Committee, Lakes shall coordinate the
          services of each Design Professional.

     Section 2.6 Other Project Contractors. Lakes shall propose to the
Development Committee for its approval all third-party professionals, such as
environmental specialists, feasibility analysts, and others providing services
or materials to the Project's Project Facilities as are customary for
undertakings such as the particular Project ("Project Contractors"). Pawnee
shall also have the right to propose Project Contractors to the Development
Committee. Lakes, in consultation with the Development Committee, and subject to
the final approval by the Development Committee, shall negotiate all Project
Contractor contracts. All contracts shall require the Project Contractor to
adhere in regard to recruitment, employment, reduction in force, promotion,
training and related employment actions to a publicly announced policy and
practice of Pawnee Nation preference and/or any publicly announced policy of
Indian preference, both of which must be reasonably promulgated by the Pawnee
Nation. Except as provided in this Agreement, each Project Contractor contract
shall be between the Project Contractor and Pawnee as determined by the
Development Committee. Notwithstanding the foregoing, all legal representation
of Pawnee shall be determined solely by Pawnee.

     Section 2.7 Project Budget. Lakes shall consult with the Architect to
develop and propose to the Development Committee a budget for all Project Costs
relating to the particular Project, along with a scheduled timeframe(s) for
development of the Project. Revisions to the Project budget may be proposed to
the Development Committee from time to time by Lakes until a final budget is
approved by the Development Committee. The Project budget approved by the
Development Committee, together with any modification thereafter proposed by
Lakes and approved by the Development Committee, shall include all Project Costs
and shall be the "Project Budget."

     Section 2.8 Contracts with Project Professionals. All professionals
providing services to a Project shall be independent of Lakes and its
Affiliates, unless otherwise agreed to by the parties in writing, and all
contracts with such professionals will be negotiated by Lakes and Pawnee on an
arms-length basis and in the best interests of Pawnee.

                                    ARTICLE 3
                      PROJECT PRELIMINARY DEVELOPMENT LOANS

     Section 3.1 Project Preliminary Development Loan. Subject to the terms and
conditions in this Article 3, Lakes shall make loans if needed from time to time
to Pawnee with respect to each particular Project for payment of Project
preliminary development costs


                                      -10-

<PAGE>

(collectively the "Project Preliminary Development Loan") set forth in a Project
preliminary development budget proposed by Lakes and approved by the Development
Committee ("Project Preliminary Development Budget"). Lakes shall have no
obligation to advance any funds under the Project Preliminary Development Loan
in excess of the approved Project Preliminary Development Budget. The Project
Preliminary Development Loan for a particular Project shall become part of its
Project Costs and shall include all advances made by Lakes to Pawnee for that
Project, including but not limited to those evidenced by the initial Pawnee
Note. A new Pawnee Note shall be executed for each Project. Any Project
Preliminary Development Loan, and Lakes' obligation to advance funds to Pawnee
for any particular Project, shall be subject to each of the following
requirements:

     (a)  All advances made pursuant to a Project Preliminary Development Loan
          shall be evidenced by one or more promissory notes prepared by Lakes,
          substantially in the form attached as EXHIBIT A to this Agreement
          ("Pawnee Note"), in each case executed on behalf of Pawnee, and dated
          the date of the applicable loan (collectively with any note executed
          by Pawnee in favor of Lakes in connection with the development of any
          Project, the "Pawnee Notes"), to be secured by certain security
          interests and liens on (i) the proceeds of any Project Permanent
          Financing; (ii) all Revenues from the Project; (iii) the Project's
          Furnishing and Equipment; (iv) any fee lands upon which the Project is
          located (collectively, the "Collateral"). In no event shall Lakes have
          recourse to Revenue distributions already received by Pawnee from the
          Project and made to the Pawnee TDC in accordance with this Agreement
          and/or any applicable dominion account agreement.

     (b)  If the principal amount of the Pawnee Note is exceeded by any pending
          advance on the Project Preliminary Development Loan, prior to such
          advance being made and prior to Lakes having any obligation to fund
          such advance, Pawnee shall execute and deliver to Lakes either (i) an
          amendment to such Pawnee Note, increasing the principal amount of the
          note by an amount at least equal to the pending advance, or (ii) an
          additional Pawnee Note with a principal amount at least equal to the
          principal amount of the pending advance, as determined by Lakes.

     (c)  Amounts advanced from time to time as part of the Project Preliminary
          Development Loan shall bear interest, from the date of advance, at the
          greater of either the prime interest rate of Chase Manhattan Bank
          U.S.A., N.A. (or any successor bank) plus two percent (2%) or the same
          rate as the Project Permanent Financing for each particular Project in
          place at the time of the advance.

     (d)  Unless otherwise agreed by the parties in writing, all principal and
          interest accrued on each Project Preliminary Development Loan shall
          become due and payable in twenty-four (24) equal monthly installments
          beginning on the 25th day following the Opening Date for the Project
          if the loan has not previously been repaid through the Project
          Permanent Financing. Pawnee shall use its best efforts to cause the
          Project Preliminary Development Loan to be paid out of the proceeds of
          the Project Permanent Financing. Notwithstanding the foregoing, the
          Project


                                      -11-

<PAGE>

          Preliminary Development Loan shall become due and owing in its
          entirety upon (i) the occurrence of a Pawnee Event of Default under
          Section 10.3, which default is either incapable of cure or has not
          been cured within the time period set forth in Section 10.4, or (ii)
          termination of this Agreement under Section 11.3.

     (e)  The Project Preliminary Development Loan may be prepaid without
          penalty by Pawnee at any time, in whole or in part, together with
          accrued and unpaid interest thereon.

     (f)  No amounts shall be loaned under the Project Preliminary Development
          Loan except for costs set forth in the Project Preliminary Development
          Budget, unless Lakes in its sole discretion agrees to advance such
          funds, in which case, such advances shall be Project Costs. Lakes
          shall have no obligation to advance funds for costs unless such costs
          are set forth in the Project Preliminary Development Budget and such
          costs:

          (i)  have been approved in advance by the Development Committee, or

          (ii) constitute payments properly due within the terms and scope of
               Project Contractors contracts.

          Upon any such payment by Lakes, an advance on the Project Preliminary
          Development Loan shall automatically occur.

     (g)  The Project Preliminary Development Loan, together with interest
          thereon, shall be payable from and secured by a pledge of the
          Collateral.

          To that end, Pawnee hereby pledges and grants a security interest in
          all the Collateral to Lakes to secure Pawnee's obligations under this
          Agreement and under the Pawnee Notes, further agrees to enter into
          standard and customary dominion account agreements/security
          agreements/mortgages or deeds of trust necessary to evidence and
          effectuate such liens, and authorizes Lakes to file those financing
          statements and similar documents and agreements as Lakes may believe
          appropriate to perfect such liens.

     (i)  Notwithstanding anything to the contrary in this Article 3, Lakes
          shall not be obligated to fund any advances on each Project
          Preliminary Development Loan after the earliest of:

          (i)  the Project Permanent Financing Date for the applicable Project;

          (ii) the second anniversary of the first advance under the applicable
               Project Preliminary Development Loan;

          (iii) the failure of Pawnee to cure, within the time prescribed in
               this Agreement, any default under this Agreement or any Pawnee
               Note for which Pawnee receives written notice;


                                      -12-

<PAGE>

          (iv) sixty (60) days after written notice by Lakes that a reasonable
               basis exists for concluding that this Agreement, the development
               of the Project, or the operation of the Project's Gaming Facility
               is not lawful;

          (v)  any determination by Lakes that a reasonable basis exists for
               concluding that any material terms of this Agreement or the
               Pawnee Notes are not valid or binding obligations of the Pawnee;

          (vi) any reasonable determination by Lakes (which may be based on the
               advice of legal counsel) that any representations contained in
               Section 8.2 are not true and correct; and

          (vii) the commencement of any litigation which, in the reasonable
               determination of Lakes, has a reasonable likelihood of delaying
               the completion of the Project's Project Facilities for more than
               24 months after the Effective Date of this Agreement.

     Section 3.2 Conditions Precedent to First Advance of Project Preliminary
Development Loan or Perform any Obligations. Notwithstanding Section 3.1, Lakes
is not required to make any advance under each Project Preliminary Development
Loan or perform any obligations under this Agreement until Lakes receives each
of the following in form and substance reasonably satisfactory to Lakes:

     (a)  copy of tribal laws in a form sufficient as determined by Lakes to
          perfect the security interests and liens granted to it under Section
          3.1;

     (b)  copy of one or more resolutions of the governing body of the Pawnee
          Nation authorizing and ratifying the adoption, or the execution,
          delivery and performance by the Pawnee Nation, Pawnee TDC or Pawnee,
          as applicable, of (i) the Compact (if in effect), (ii) the Gaming
          Ordinance, (iii) this Agreement, and (iv) the Pawnee Notes and related
          documents and security instruments;

     (c)  original of any license(s) required by any Government Authority for
          the Lakes services (as described in this Agreement) in connection with
          the development, construction and operation of the Project;

     (d)  an opinion of an attorney for Pawnee in form reasonably satisfactory
          to Lakes to the effect that (i) this Agreement, the Pawnee Notes, and
          any security instruments to be executed by Pawnee in connection with
          this Agreement will be valid, binding and perfected obligations of
          Pawnee, enforceable in accordance with their terms, (ii) the Pawnee
          Nation is an Indian tribe within the meaning of IGRA, (iii) each of
          the actions of Pawnee Nation, Pawnee TDC or Pawnee, as applicable,
          referred to above in this Section have been validly taken by that
          entity and is in full force and effect, (iv) the Pawnee Nation is
          legally permitted to conduct Class II Gaming (and Class III Gaming in
          the event of a Compact) activities in the State under all Legal
          Requirements, (v) the Gaming Facility Site for the Project constitutes
          "Indian lands" upon which the Pawnee Nation may legally conduct


                                      -13-

<PAGE>

          gaming under IGRA, and (vi) the Pawnee Nation and Pawnee TDC have
          entered into an agreement with Lakes or its Affiliate that all gaming
          and related project facilities will be owned and operated by Pawnee or
          another subsidiary of Pawnee TDC and granting Lakes or its Affiliate
          the right to participate in any gaming projects owned and operated by
          Pawnee or another subsidiary of Pawnee TDC under the same terms and
          conditions described in this Agreement, and the agreement shall
          contain representations, warranties and covenants substantially
          similar to those contained in Articles 8 and 9 hereof insofar as
          applicable, and with respect to such agreement, the same constitutes
          the valid, binding and enforceable obligations of Pawnee Nation and
          Pawnee TDC, enforceable in accordance with their terms.

     (e)  designation by Pawnee of its members to the Development Committee and
          the formation of the Development Committee;

     (f)  a feasibility study has been conducted demonstrating to Lakes'
          satisfaction the economic viability of the particular Project, and
          Pawnee and Lakes have mutually agreed to the scope of the contemplated
          project(s) and entered into an addendum to this Agreement describing
          the contemplated scope of the project(s);

     (g)  a letter from the NIGC determining that the Gaming Facility Site for
          the Project constitutes "Indian lands" upon which the Pawnee Nation
          may legally conduct gaming under IGRA; and

     (h)  unless otherwise agreed or waived in writing, Lakes shall have
          received either (i) a legal interpretation/opinion determination
          letter from the Pawnee Nation's attorneys or highest judicial office
          that any limitations or restrictions contained in the Corporate
          Charter of the Pawnee Tribe of Oklahoma, a federally-chartered
          corporation, does not apply to and has no legal effect on the validity
          of this Agreement or any related documents, or (ii) a certified copy
          of an amendment to the Corporate Charter of the Pawnee Tribe of
          Oklahoma, a federally-chartered corporation, or other evidence
          reasonably satisfactory to Lakes pursuant to which the Corporate
          Charter of the Pawnee Tribe of Oklahoma, federally-chartered
          corporation, shall have been amended to remove any limitations or
          restrictions that would otherwise prevent either the Pawnee Nation or
          Pawnee TDC and its wholly-owned subsidiaries from entering into this
          Agreement or any related documents or that would require the approval
          of this Agreement or any related documents from the Secretary of the
          Interior or any federal agency before the document becomes legally
          valid and enforceable.


                                      -14-

<PAGE>

                                    ARTICLE 4
                          PROJECT PERMANENT FINANCINGS

     Section 4.1 Project Permanent Financing. Lakes shall use commercially
reasonable efforts to assist Pawnee in obtaining one or more sources of Project
Permanent Financing for any particular Project in amounts and at times as are
required for payment of expected Project Costs (other than those expected to be
funded by an Equipment Contract) as set forth in the Project Budget. The terms
of the Project Permanent Financing shall be subject to the approval of the
Development Committee, which approval shall not be unreasonably withheld.

     Section 4.2 Approval of Disbursements. Unless otherwise agreed to by the
Development Committee, no disbursement of proceeds from any Project Permanent
Financing shall be made without the approval of the Development Committee and,
with respect to costs payable pursuant to the Project Construction Contract,
without customary approvals or certifications by the Project Architect and
Project General Contractor.

                                    ARTICLE 5
                    PROJECT CONSTRUCTION AND EQUIPPING PHASES

     Section 5.1 Project General Contractor and Construction Contracts. Lakes
shall propose to the Development Committee for its approval one or more general
or prime contractors to provide customary construction contracting services with
respect to any particular Project's Project Facilities (the "Project General
Contractor"). As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project General Contractor. In the case
of a rejection, the process described in this Section 5.1 shall be repeated
until the Development Committee has approved a Project General Contractor
proposed by Lakes. Once the Project General Contractor has been approved by the
Development Committee, Lakes shall negotiate and propose to the Development
Committee for its approval one or more forms of agreements for execution by
Pawnee to engage the Project General Contractor (the "Project Construction
Contract"). After the Development Committee has approved and Pawnee has entered
into the Project Construction Contract(s), no change orders shall be made
without the written recommendation of Lakes and written approval by the
Development Committee.

     Section 5.2 Project Contractor Costs. All costs incurred by or paid
pursuant to the Project Construction Contract(s) in accordance with Project
Budget shall be Project Costs.

     Section 5.3 Project Equipment Contracts. Lakes shall propose to the
Development Committee for its approval one or more contractors to provide
equipment or personal property for use in connection with operations of the
Project Facilities, exclusive of property to be provided pursuant to a Project
Construction Contract (the "Project Equipment Contractor"). Pawnee shall also
have the right to propose Project Equipment Contractors to the Development
Committee. As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project Equipment Contractor. In the case
of a rejection, the process described in this Section 6.3 shall be repeated
until the Development Committee has approved a


                                      -15-

<PAGE>

Project Equipment Contractor proposed. Once the Project Equipment Contractor has
been approved by the Development Committee, Lakes shall negotiate and propose to
the Development Committee for its approval one or more forms of agreements for
execution by Pawnee to engage the Project Equipment Contractor (the "Project
Equipment Contract"). After the Development Committee has approved and Pawnee
has entered into the Project Equipment Contract(s), no change orders shall be
made without the written recommendation of Lakes and written approval by the
Development Committee. Lakes will assist in the selection, ordering, expediting,
and installation of furniture, fixtures and equipment required for the Project
Facilities.

                                    ARTICLE 6
                   PRE AND POST-OPENING OPERATIONS CONSULTING

     Section 6.1 Project Operations Consulting. In connection with pre-opening
and post-opening operations of any particular Project, Lakes shall assist Pawnee
by providing consulting services to Pawnee related to establishing and
implementing initial gaming and ancillary systems in the following areas: making
recommendations to Pawnee as to: (a) general Gaming Operations, (b) electronic
gaming devices operations, (c) table game operations if permitted, (d) cage,
vault and count room operations, (e) surveillance department operations, (f)
security department operations, (g) marketing and advertising, (h) food and
beverage operations, (i) human resources, (j) facilities and maintenance, (k)
finance and (l) information systems.. At all times, Pawnee shall have the sole
proprietary interest in and management responsibility for the conduct of all
Gaming Operations conducted at any Project during the period Lakes is providing
operations consulting services under this Agreement.

     Section 6.2 Cooperative Efforts. Both parties to this Agreement shall
exercise their best efforts to fully cooperate with each other in the
performance of the operations consulting services to be rendered hereunder;
provided, however, that it shall be within the sole discretion of Pawnee to
determine whether or not to act upon or implement the technical assistance,
consultation or advice provided by Lakes.

     Section 6.3 No Management Services Provided. The parties expressly
acknowledge that this Agreement is for consulting services only and that Lakes
shall not engage in any management activities or perform any management services
hereunder with respect to any Project. The parties expressly acknowledge that
the decision to adopt, approve or implement any proposal, suggestion or
recommendation made by Lakes in connection with its operations consulting
services shall rest exclusively with Pawnee.

                                    ARTICLE 7
                                 DEVELOPMENT FEE

     Section 7.1 Project Development Fee. For its services under this Agreement
related to any particular Project, in addition to interest earned on the Project
Preliminary Development Loan, Lakes shall receive a fee equal to (a) three (3%)
percent of Project Costs ("Development


                                      -16-

<PAGE>

Fixed Fee") and (b) a flat fee of $250,000 per month for one hundred twenty
(120) months in accordance with the payment terms described in Section
7.2.("Monthly Consulting Fixed Fee")(collectively the "Project Development
Fee").

     Section 7.2 Terms of Payment. The Development Fixed Fee shall be paid on
the Opening Date for the Project. No Monthly Consulting Fixed Fee shall be
earned or paid prior to the Opening Date of the Project. After the Opening Date
of the Project, the Monthly Consulting Fixed Fee shall be due and paid
commencing on the 25th day of the following calendar month, and become due and
payable on the 25th day of each successive month.

     Section 7.3 Project Development Fee Security. To secure payment of the
Project Development Fee, Pawnee hereby pledges and grants a security interest in
all Collateral to Lakes to secure Pawnee's obligations under this Agreement in
connection with payment of the Project Development Fee, further agrees to enter
into standard and customary dominion account agreements/security
agreements/mortgages or deeds of trust necessary to evidence and effectuate such
liens, and authorizes Lakes to file those financing statements and similar
documents and agreements as Lakes may believes appropriate to perfect such
liens.

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

     Section 8.1 Representations and Warranties of Lakes. Lakes represents and
warrants to Pawnee that:

     (a)  Organization. Lakes is a limited liability company duly formed and
          validly existing under the laws of the State of Minnesota.

     (b)  Authority. Lakes has the full legal right and authority to enter into
          this Agreement, to perform its obligations under this Agreement, and
          to consummate all other transactions contemplated by this Agreement.

     (c)  Binding Obligation. This Agreement has been duly executed and
          delivered by Lakes and constitutes a legal, valid and binding
          obligation of Lakes, enforceable against Lakes in accordance with its
          terms, except as enforceability may be limited by future bankruptcy,
          insolvency or similar proceedings, limitations on rights of creditors
          generally and principles of equity, and assuming such agreements are
          binding against the other parties thereto.

     (d)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Lakes,
          threatened against Lakes, its Affiliates, or any of its assets or
          properties that could have a material adverse effect on its ability to
          enter into or perform this Agreement.


                                      -17-

<PAGE>

     (e)  No Violation or Conflict. The execution, delivery and performance by
          Lakes of this Agreement does not violate any Legal Requirement
          applicable to Lakes, other than a violation that shall not materially
          adversely affect any particular Project or Pawnee's obligations or
          rights under this Agreement. The execution, delivery and performance
          of this Agreement does not conflict with or result in any breach of
          any provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon any asset of Lakes under, or
          result in the acceleration of any obligation under the terms of any
          agreement or document binding upon Lakes, other than a conflict,
          breach, default or imposition that shall not materially adversely
          affect any particular Project or Pawnee's obligations or rights under
          this Agreement.

     (f)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Lakes is required
          for Lakes to execute, deliver and perform its obligations hereunder;
          provided that Lakes makes no representation or warranty with respect
          to any consent that may be required by the Gaming Commission, Pawnee
          Nation, Pawnee TDC or Pawnee,, NIGC or BIA.

     (g)  Full Disclosure. No representation or warranty of Lakes in this
          Agreement and no report or statement delivered to Pawnee by or on
          behalf of Lakes, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading.

     (h)  Financial Capacity. Lakes has the financial capacity to finance any
          and all amounts necessary in order to comply with Lakes' commitment to
          provide the Project Preliminary Development Loan under Article 3
          hereof, and the provision of such financing will not result in Lakes
          becoming insolvent or otherwise being unable to pay its debts as they
          become due.

     (i)  Brokers' Fees and Other Fees and Expenses. Except for the letter
          agreement dated August 20, 2004 with Kevin Kean and the definitive
          consulting agreement to be negotiated and executed as contemplated
          thereunder, neither Lakes nor any of its Affiliates has as of the
          Effective Date of this Agreement engaged, nor has any liability or
          obligation to pay any fees, commissions or expenses with respect to,
          any broker, finder or agent, investment banker, or any similar advisor
          or services provider, with respect to or in connection with the
          transactions contemplated by this Agreement for which Lakes or its
          Affiliates could become liable or obligated, and neither Pawnee nor
          any of its Affiliates has any liability or obligation to pay any of
          such amounts.

     Section 8.2 Representations and Warranties by Pawnee. Pawnee represents and
warrants to Lakes that:


                                      -18-

<PAGE>

     (a)  Organization. Pawnee is a wholly-owned subsidiary of the Pawnee TDC,
          which is a governmental subdivision of the Pawnee Nation, an Indian
          tribe eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Pawnee has taken all action required by tribal
          law without the necessity of further action to authorize the
          execution, delivery and performance of this Agreement, all Pawnee
          Notes and related security documents and instruments described herein.
          Pawnee has all requisite power and authority to enter into this
          Agreement, all Pawnee Notes, and related security documents and
          instruments described herein to perform its obligations under this
          Agreement, all Pawnee Notes, and related security documents and
          instruments described herein, and to consummate all other transactions
          contemplated by this Agreement, the Pawnee Notes and related security
          documents and instruments described herein.

     (c)  Binding Obligations. Each of this Agreement (including but not limited
          to, the waiver of sovereign immunity in Article 12), the Pawnee Notes
          and related security documents and instruments described herein has
          been duly executed and delivered by Pawnee and is a legal, valid,
          binding and perfected obligation of Pawnee, enforceable against Pawnee
          in accordance with its terms, except as enforceability may be limited
          by future bankruptcy, insolvency or similar proceedings, limitations
          on rights of creditors generally and principles of equity, and
          assuming the foregoing agreements are binding against the other
          parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for any particular
          Project constitutes "Indian lands" upon which the Pawnee Nation may
          legally conduct gaming under IGRA.

     (e)  Gaming Permitted. Pawnee Nation is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Pawnee Nation and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Pawnee Nation. Pawnee will then have the right to
          engage in Class III Gaming at the Gaming Facilities to be operated by
          the Pawnee in connection with this Agreement to the extent set forth
          in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes to enter into this
          Agreement and perform its obligations under this Agreement have been
          granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Pawnee, Pawnee TDC or the Pawnee Nation or affecting either
          the Gaming Facility Site(s) or any Project, whether arising from
          contracts, instruments, orders,


                                      -19-

<PAGE>

          judgments, decrees or otherwise, that are likely to materially and
          adversely affect any Project or Lake's obligations or rights under
          this Agreement, any Pawnee Note and related security documents and
          instruments described herein.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          Pawnee of this Agreement, any Pawnee Note and related security
          documents and instruments described herein does not violate any Legal
          Requirements. The execution, delivery and performance of this
          Agreement, any Pawnee Note and related security documents and
          instruments described herein by Pawnee does not conflict with or
          result in any breach of any provision of, or constitute a default
          under, or result in the imposition of any lien or charge upon any
          asset of Pawnee under, or result in the acceleration of any obligation
          under the terms of any agreement or document binding upon Pawnee,
          other than a conflict, breach, default or imposition as shall not
          materially adversely affect any particular Project or Lake's
          obligations or rights under this Agreement, any Pawnee Note and
          related security documents and instruments described herein.

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Pawnee,
          threatened, against any Pawnee, Pawnee TDC or Pawnee Nation, or any of
          the assets or properties of Pawnee, that could have a material adverse
          effect on any particular Project, its Project Facilities, Pawnee's
          ability to enter into or perform this Agreement or Lakes' obligations
          or rights under this Agreement, any Pawnee Note and related security
          documents and instruments described herein.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Pawnee is required
          to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of Pawnee in this
          Agreement and no report or statement delivered to Lakes by or on
          behalf of Pawnee, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading. Pawnee has fully disclosed the existence and
          terms of all material agreements and Legal Requirements, written or
          oral, relating to any particular Project.

     (m)  No Tribal Tax. Neither the Project, the Project Facilities nor the
          transaction(s) between the parties contemplated by this Agreement, the
          Pawnee Notes, and any related security documents and instruments
          described herein are now, or at any time during the term of this
          Agreement will be, subject to any tribal tax of any sort other (i)
          reasonable pass-through taxes on Project patron which are consistent
          with gaming resort industry practices, and (ii) than license or other
          fees for background investigations performed by the Gaming Commission
          of "key employees" and "primary management officials" of the
          particular Project's


                                      -20-

<PAGE>

          Gaming Facility, as defined in 25 C.F.R. Section 502.14 and 25 C.F.R.
          Section 502.19, and reasonable and customary regulatory fees imposed
          on the Gaming Facility by the Gaming Commission (which amounts shall
          be subject to an annually approved budget submitted by the Gaming
          Commission).

     (n)  Tribal Agreement. The Pawnee Nation and Pawnee TDC have entered into
          an agreement with Lakes or its Affiliate which (i) confirms that all
          gaming and related project facilities of Pawnee Nation or Pawnee TDC
          will be owned and operated by either Pawnee or another subsidiary of
          Pawnee TDC, (ii) grants Lakes or its Affiliate the right to
          participate in any gaming projects owned and operated by Pawnee or
          another subsidiary of Pawnee TDC under the same terms and conditions
          described in this Agreement, and (iii) contains representations,
          warranties and covenants substantially similar to those contained in
          Articles 8 and 9 hereof, insofar as applicable; and with respect to
          such agreement, the same constitutes valid, binding and enforceable
          obligations of Pawnee Nation and Pawnee TDC, enforceable in accordance
          with their terms.

                                    ARTICLE 9
                                    COVENANTS

     Section 9.1 Covenants of Lakes. Lakes covenants and agrees as follows:

          (a)  Additional Documents. Lakes shall execute any additional
               instruments as may be reasonably required by Pawnee to carry out
               the intent of this Agreement or to perfect or give further
               assurances of any of the rights granted or provided for under
               this Agreement.

     Section 9.2 Covenants of Pawnee. Pawnee covenants and agrees as follows:

          (a)  Additional Documents. Pawnee shall execute any additional
               instruments as may be reasonably required by Lakes to carry out
               the intent of this Agreement or to perfect or give further
               assurance of any of the rights granted or provided for under this
               Agreement or any Tribal Note, including execution of the related
               security documents and instruments described herein.

          (b)  Non-Impairment. None of Pawnee, Pawnee TDC or Pawnee Nation shall
               enact any law, ordinance, rule or regulation impairing the rights
               or obligations of Pawnee or Lakes under this Agreement or under
               any related contracts entered into by Pawnee or impairing the
               rights and obligations of Lakes in furtherance of the design,
               development, construction, equipping or financing of any
               particular Project's Project Facilities, including, but not
               limited to, this Agreement and any contract or agreement entered
               into or contemplated by this Agreement.


                                      -21-

<PAGE>

          (c)  Records. Pawnee shall maintain or cause to be maintained full and
               accurate accounts and records for any particular Project and its
               Project Facilities according to GAAP.

          (d)  No Liens. Prior to the Opening Date, unless Lakes otherwise
               consents, Pawnee shall not cause or voluntarily permit any lien
               or encumbrance to be created on the Project Facilities for any
               particular Project, the Project's Gaming Facility Site or any
               proceeds of the Project Preliminary Development Loan or the
               Project Permanent Financing.

          (e)  No Tax. Neither Pawnee, Pawnee TDC nor Pawnee Nation shall impose
               any tax, fee or assessment on Lakes, any Contractor, any Project
               and its Project Facilities, this Agreement, the Pawnee Notes, and
               any related security documents and instruments described herein
               other than (i) reasonable pass-through taxes on Project patron
               which are consistent with gaming resort industry practices, and
               (ii) license or other fees for background investigations
               performed by the Gaming Commission of "key employees" and
               "primary management officials" of the particular Project's Gaming
               Facility, as defined in 25 C.F.R. Section 502.14 and 25 C.F.R.
               Section 502.19, and reasonable and customary regulatory fees
               imposed on the Gaming Facility by the Gaming Commission (which
               amounts shall be subject to an annually approved budget submitted
               by the Gaming Commission).

     Section 9.3 Mutual Covenant Not-to-Compete. Lakes agrees that, during the
term of this Agreement, neither it nor its Affliates will finance, manage, or
consult in connection with any facility where Gaming Operations are or will be
conducted within a radius of twenty-five (25) miles from the Gaming Facility
Site without the prior written consent of Pawnee. Pawnee agrees that, during the
term of this Agreement, neither it nor its Affiliates will solicit or enter into
any negotiations or agreements with any person or company with respect to any
Gaming Operations to be conducted within twenty-five (25) miles of the Gaming
Facility Site, nor conduct any Gaming Operations within twenty-five (25) miles
of the Gaming Facility Site, without the prior written consent of Lakes.

                                   ARTICLE 10
                                EVENTS OF DEFAULT

     Section 10.1 Events of Default by Lakes. Each of the following occurring
prior the date on which the particular Project has been substantially completed
shall constitute a "Lakes Event of Default":

     (a)  A Material Breach by Lakes.


                                      -22-

<PAGE>

     (b)  Lakes violates any of the covenants in Section 9.1 of this Agreement,
          and sixty (60) days have passed following a request by Pawnee to Lakes
          to cure the violation, during which the violation has not been cured.

     (c)  Subject to Section 10.3, any license, permit or approval required to
          be received or maintained by Lakes to perform its obligations under
          this Agreement is denied, suspended, or revoked by proper and
          reasonable action of any state or federal Governmental Authority, and
          all rights to appeal or review the action have been exhausted.

     (d)  Lakes or any Affiliate of Lakes material to the uncompleted portion of
          the particular Project has: (i) filed for relief under the United
          States Bankruptcy Code or has suffered the filing of an involuntary
          petition under the Bankruptcy Code that is not dismissed within sixty
          (60) days after filing; (ii) a receiver appointed to take possession
          of all or substantially all of the property of Lakes or any Affiliate
          of Lakes material to the particular Project; or (iii) suffered an
          assignment for the benefit of creditors.

     Section 10.2 Cure of Lakes Default. Upon the occurrence of a Lakes Event of
Default, Pawnee may provide written notice to Lakes of Pawnee's intention to
terminate this Agreement and, if it is possible for Lakes to cure the Lakes
Event of Default, Lakes shall have thirty (30) days following receipt of the
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Lakes shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
The discontinuance or correction of a Lakes Event of Default shall constitute a
cure thereof. If Lakes fails to cure the Lakes Event of Default within any
applicable cure period as extended, Pawnee may take any one or more of the
following actions: (a) suspend all performance of Pawnee under this Agreement;
(b) terminate this Agreement under Section 11.4; or (c) pursue any other remedy
available at law or in equity, subject to the provisions of Section 12.1.

     Section 10.3 Events of Default by Pawnee. Each of the following shall
constitute a "Pawnee Event of Default":

     (a)  A Material Breach by Pawnee exists; or (ii) an "Event of Default" by
          Pawnee exists under the Pawnee Note, security agreement, dominion
          account agreement, mortgage or other document or instrument in favor
          of Lakes or its Affiliates and related thereto or this Agreement; or
          (iii) Pawnee Nation or Pawnee TDC shall be in default of any agreement
          now or hereafter executed by either of such entities in favor of Lakes
          or its Affiliates.

     (b)  The Gaming Commission or any other applicable governmental authority
          of the Pawnee Nation, in bad faith, without due process or
          unreasonably, denies, revokes, fails to renew or otherwise impairs any
          license, permit or approval


                                      -23-

<PAGE>

          required for Lakes or any Affiliate of Lakes to perform its
          obligations or enjoy its rights under this Agreement.

     (c)  Pawnee violates any of the covenants in Section 9.2 of this Agreement,
          and after sixty (60) days have passed following a request by Lakes to
          Pawnee to cure the violation, during which the violation has not been
          cured.

     (d)  Pawnee or any Affiliate of Pawnee material to the particular Project
          has: (i) filed for relief under the United States Bankruptcy Code or
          has suffered the filing of an involuntary petition under the
          Bankruptcy Code that is not dismissed within sixty (60) days after
          filing; (ii) a receiver appointed to take possession of all or
          substantially all of Pawnee's property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Compact (if in effect) is determined by any court of competent
          jurisdiction to be invalid and such determination becomes final and
          non-appealable.

     (f)  The Pawnee Nation is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     (g)  Any order or judgment of any court of competent jurisdiction enjoins
          the development of the particular Project in any material manner, and
          the injunction continues for thirty (30) days.

     Section 10.4 Cure of Pawnee Event Default. Upon the occurrence of a Pawnee
Event of Default, Lakes may provide written notice to Pawnee of such default
and, if it is possible for Pawnee, Pawnee TDC or Pawnee Nation to cure the
Pawnee Event of Default, Pawnee shall have thirty (30) days following receipt of
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Pawnee, Pawnee TDC or Pawnee
Nation shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days. Upon the occurrence of any of the events
described in Section 10.3 and during any applicable cure period, Lakes may
suspend its performance under this Agreement. The discontinuance or correction
of a Pawnee Event of Default shall constitute a cure thereof. If Pawnee, Pawnee
TDC or Pawnee Nation fails to cure the Pawnee Event of Default within any
applicable cure period as extended, Lakes may take any one or more of the
following actions: (a) suspend all performance of Lakes under this Agreement;
(b) declare all principal and interest accrued on all Pawnee Notes and any
Project Development Fees to be immediately due and owing, (c) terminate this
Agreement under Section 11.4; or (d) pursue any other remedy available by
agreement, at law or in equity, subject to the provisions of Section 12.1.


                                      -24-

<PAGE>

                                   ARTICLE 11
                                TERM OF AGREEMENT

     Section 11.1 Term. This Agreement shall become effective and binding upon
the parties on the Effective Date, and shall continue in effect for twelve (12)
years from the Effective Date or until the Project Development Fee(s) and the
Project Preliminary Development Loan(s) applicable hereunder have been fully
paid, whichever date is later, subject to earlier termination as provided in
Article 10 or this Article; provided that (a) all rights of any party to assert
a Claim against the other shall survive the termination of this Agreement, and
(b) all provisions of Article 12 and Article 13 shall survive a termination.

     Section 11.2 Mutual Termination. This Agreement may be terminated at any
time by the mutual written consent of Lakes and Pawnee.

     Section 11.3 Termination by Lakes. This Agreement may be terminated upon
notice by Lakes to Pawnee if an uncured Pawnee Event of Default exists under
Section 10.2 and all applicable grace and cure periods have expired.

     Section 11.4 Termination by Pawnee. This Agreement may be terminated upon
notice by Pawnee to Lakes if an uncured Lakes Event of Default exists under
Section 10.1 and all applicable grace and cure periods have expired.

     Section 11.5 Buy-out Option. Following sixty (60) months of continuous
operation of the Project's gaming operations following the Opening Date, Pawnee
shall have the option to buy out the Lakes' remaining rights under this
Agreement for an amount equal to the present value, using a discount rate which
is the greater of either two percent (2%) above the prime interest rate of Chase
Manhattan Bank U.S.A., N.A. (or any successor bank) or the same rate as the
Project Permanent Financing for each Project in place at the time the buy-out
option is exercised of the Remaining Project Development Fees (as hereinafter
defined). The term "Remaining Project Development Fees" shall mean the total
Monthly Consulting Fixed Fees which would have been payable to Lakes for the
Project under Section 7.1(b) hereof for the balance of the term of this
Agreement.

                                   ARTICLE 12
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                           JURISDICTION; GOVERNING LAW

     Section 12.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon


                                      -25-

<PAGE>

          notice by either party to the other, all Claims shall be settled by
          arbitration administered by the American Arbitration Association in
          accordance with the provisions of its Commercial Arbitration Rules in
          effect at the time of submission; except that: (a) the question
          whether or not a Claim is arbitrable shall be a matter for binding
          arbitration by the arbitrators, such question shall not be determined
          by any court and, in determining any such question, all doubts shall
          be resolved in favor of arbitrability; and (b) discovery shall be
          permitted in accordance with the Federal Rules of Civil Procedure,
          subject to supervision as to scope and appropriateness by the
          arbitrators. Unless the parties otherwise agree to in writing,
          arbitration proceedings shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality. Pawnee further agrees that any arbitration proceeding
          held in connection with any Claim may be consolidated with any other
          arbitration proceeding involving Lakes or its Affiliates and any of
          Pawnee's Affiliates.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 12 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.


                                      -26-

<PAGE>

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  Pawnee hereby expressly waives, and also waives its right to assert,
          sovereign immunity and any and all defenses based thereon with respect
          to any Claims; and Pawnee hereby consents to (i) binding arbitration
          under the Commercial Arbitration Rules of the American Arbitration
          Association, (ii) empowering the arbitrators to take the actions and
          enforce the judicial remedies described in paragraph 5 of the Pawnee
          Resolution of Limited Waiver of Sovereign Immunity dated Janaury 12,
          2005 issued in connection with the execution of this Agreement, and
          (iii) judicial proceedings in or before the United States District
          Court for the Northern District of Oklahoma, or if that court
          determines it is without jurisdiction, then to the courts of the State
          of Oklahoma and all courts to which an appeal therefrom may be
          available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, Pawnee
          expressly waive the application of the doctrines of exhaustion of
          tribal remedies or comity that might otherwise require that Claims be
          heard first in tribal court or other tribal forum of Pawnee Nation.
          The waivers set forth herein only extend to claims or proceedings
          brought by Lakes and any award of damages against Pawnee shall be
          payable solely out of the Collateral.

     Section 12.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                   ARTICLE 13
                                  MISCELLANEOUS

     Section 13.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes may assign this Agreement
to a wholly owned subsidiary without Pawnee's consent; provided further that
Lakes shall remain obligated for the performance of the Lakes subsidiary
hereunder. Other than as expressly provided in this Section 13.1, any attempted
assignment or subcontracting without prior written consent shall be void.
Subject to the preceding requirements, this Agreement is binding upon and inures
to the benefit of the parties and their respective successors and assigns.

     Section 13.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt


                                      -27-

<PAGE>

requested; and (d) until written notice of a new address or addresses is given,
must be addressed as follows:

If to Pawnee:     Pawnee Chilocco Gaming Corporation
                  871 Little D. Drive, Building 68
                  P.O. Box 280
                  Pawnee, OK 74058

With a Copy to:   David J. Ketelsleger, Esq.
                  McAfee & Taft
                  Two Leadership Square
                  Tenth Floor
                  211 North Robinson
                  Oklahoma City, OK 73102-7103
                  (copy to counsel does not constitute notice to a party)

If to Lakes:      Lakes Pawnee Consulting, LLC
                  130 Cheshire Lane
                  Minnetonka, MN 55305
                  Attn: Timothy J. Cope

With a Copy to:   Kevin C. Quigley, Esq.
                  Hamilton Quigley Twait & Foley PLC
                  W1450 First National bank Building
                  332 Minnesota Street
                  St. Paul, MN 55101-1314

            and   Brian J. Klein, Esq.
                  Maslon, Edelman, Borman & Brand, LLP
                  3300 Wells Fargo Center
                  90 South Seventh Street
                  Minneapolis, MN 55402-4140
                  (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 13.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 13.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 13.5 Force Majeure. No party shall be in default in the performance
due under this Agreement if that failure of performance is due to causes beyond
its reasonable control,


                                      -28-

<PAGE>

including but not limited to acts of God, war, terrorism, fires, floods, or
accidents causing material damage to or destruction of the Project Facilities.

     Section 13.6 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 13.7 Entire Agreement. This Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all
provisions of any prior agreements between the parties relating to the
development, financing, construction and equipping of any particular Project and
its Project Facilities, and any other matter addressed in this Agreement; but
shall specifically exclude any agreement related to the management of any
particular Project and its Project Facilities.

     Section 13.8 Indemnification by Lakes. Lakes shall indemnify Pawnee and
it's agents, enrolled members, officers, employees, consultants, and attorneys
(each a "Pawnee Indemnitee") from and against any and all damages, claims,
losses or expenses of whatever kind or nature, including attorneys' fees and
expenses incurred in defending those claims, losses or expenses, to the extent
they result from the gross negligence or willful misconduct of Lakes with
respect to (a) a particular Project or (b) non-performance of any of Lake's
obligations under this Agreement. Lakes shall have the sole right to control the
defense and settlement of any matter in which indemnification is required of
Lakes, and shall pay its attorneys' fees, provided that, with respect to those
matters, Lakes shall not be responsible for the attorneys' fees of attorneys
hired by the Pawnee Indemnitee.

     Section 13.9 Indemnification by Pawnee. Pawnee shall immediately indemnify
Lakes and its Affiliates, agents, officers, employees, consultants, and
attorneys ( each a "Lakes Indemnitee") from and against any and all damages,
claims, losses or expenses of whatever kind or nature, including attorneys' fees
and expenses as and when incurred in defending those claims, losses or expenses,
to the extent they result from (a) the gross negligence or willful misconduct of
Pawnee or the Development Committee with respect to (i) a particular Project or
(ii) the performance or non-performance of Pawnee's or Development Committee's
obligations under this Agreement, or (b) the performance by Lakes of any of its
obligations under this Agreement but excluding any claims, loss or expense
arising from the gross negligence or willful misconduct of Lakes. Pawnee and
Lakes shall consult and agree on the defense and settlement of any matter in
which indemnification is required of Pawnee, Lakes shall have the right to
retain its separate counsel to advise it thereon (but such counsel shall be at
Lakes' own expense), and upon the occurrence of any such claim, the parties
shall enter into a mutually acceptable agreement providing for the procedures by
which any such claims shall be prosecuted and related costs and expenses shall
be reimbursed. Lakes shall be listed as an additional insured on all insurance
policies with respect to any Project. Pawnee further agrees to indemnify and
hold each Lakes Indemnittee harmless from any and all liabilities, claims,
losses and expenses arising from any prior agreements entered into by Pawnee,
Pawnee TDC or Pawnee Nation with any Persons or entities in connection with
development, construction and/or operation of the Project Facilities of any
particular Project.


                                      -29-

<PAGE>

     Section 13.10 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 13.11 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 13.12 Cooperation; Approvals. Each of the parties agrees to
cooperate in good faith with the other to timely implement the purposes of this
Agreement. Any consents or approvals required to be given in connection with
this Agreement shall not be unreasonably withheld or delayed by the parties or
their Affiliates.

     Section 13.14 No Management Contract or Grant of Proprietary Interest. The
parties agree that it is their intent that neither this Agreement nor any of the
Tribal Notes or and related security documents and instruments described herein
(individually or collectively) constitute a "Management Contract" within the
meaning of IGRA. Upon the Effective Date, the parties shall submit this
Agreement to the NIGC for review and determination that it is not a Management
Contract and therefore does not require the approval of the NIGC in order to be
valid, regardless of whether it constitutes a "collateral agreement" as that
term is defined in IGRA. Each party shall use its best efforts to pursue such
determination and timely execute, deliver, and if necessary, record any and all
additional instruments, certifications, and other documents as may be required
by the NIGC in order to issue such determination; provided that such required
instrument or other document shall not materially change the respective rights,
remedies or obligations of the parties under this Agreement. If the NIGC finds
that this Agreement does constitute a Management Contract within the meaning of
IGRA, then the parties shall immediately take all necessary steps to amend or
modify the Agreement in a way that preserves the economic benefits of the
transactions to both parties without constituting a Management Contract.

     Section 13.15 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                      -30-

<PAGE>

     The parties have executed this Gaming Development Consulting Agreement as
of the date stated in the introductory clause.

                                        PAWNEE CHILOCCO GAMING CORPORATION


                                        By /s/ Monty Matlock
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Leslie Hand
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------

   [Signature Page to Pawnee Chilocco Gaming Development Consulting Agreement]


                                       31

<PAGE>

                                    EXHIBIT A
                               FORM OF PAWNEE NOTE


                                       32

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.106
<SEQUENCE>41
<FILENAME>c92713exv10w106.txt
<DESCRIPTION>PAWNEE NOTE
<TEXT>
<PAGE>
                                                                  Exhibit 10.106

                                   PAWNEE NOTE

                                                                  Minnetonka, MN
                                                                January 12, 2005

     FOR VALUE RECEIVED, PAWNEE CHILOCCO GAMING CORPORATION ("MAKER"), A
WHOLLY-OWNED SUBSIDIARY OF THE PAWNEE TRIBAL DEVELOPMENT CORPORATION, EACH
CREATED UNDER THE CONSTITUTION OF AND A GOVERNMENTAL SUBDIVISION OF THE PAWNEE
NATION OF OKLAHOMA, A FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the
order of LAKES PAWNEE CONSULTING, LLC, A MINNESOTA LIMITED LIABILITY COMPANY
("LENDER"), in the United States of America, in immediately available funds, at
such place as the holder hereof may from time to time designate, or in the
absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the aggregate unpaid principal amount of all
advances made to Maker pursuant to the "Project Preliminary Development Loan" as
set forth in Article 3 of the Gaming Development Consulting Agreement dated
January 12, 2005 between the parties (the "Gaming Development Consulting
Agreement"), plus interest thereon from the date of such advances, in like
money, in accordance with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Gaming Development Consulting Agreement.

     2. Advances. Pursuant to the Gaming Development Consulting Agreement,
Lender has agreed to extend the Project Preliminary Development Loan to Maker,
such funds to be loaned in more than one advances (each, an "Advance") as
entered on the Schedule of Advances attached hereto as Schedule A. Each Advance
shall bear interest at the Interest Rate, as described herein, from and
including the date the proceeds of such Advance are advanced (such date the
"Funding Date" of such Advance) through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be limited to the Collateral as described in the
Gaming Development Consulting Agreement. Commencing on the twenty-fifth (25th)
day after the Opening Date for the Project, in the event the Project Preliminary
Development Loan has not previously been repaid through the Project Permanent
Financing, principal and interest on this Note shall be paid in twenty-four
equal monthly installments. Maker shall have the right to prepay all or any part
of this Pawnee Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity.

     4. Interest Rate. The Interest Rate means, as to each Advance, an interest
rate equal to the greater of the prime rate of Chase Manhattan Bank, N.A. (or
any successor Bank) plus two percent (2%), per annum or the same rate as the
Project Permanent Financing in place at the time of the advance, fixed as of the
first business day of each calendar month. Interest at the foregoing rate


                                      -1-

<PAGE>

shall accrue and be compounded annually and shall be payable solely from the
Collateral as provided in Gaming Development Consulting Agreement. Interest
shall be computed for the actual number of days elapsed on the basis of a year
consisting of 360 days. It is intended that the rate of interest hereon shall
never exceed the maximum rate, if any, which may be legally charged on the
Project Preliminary Development Loan evidenced by Pawnee Note ("Maximum Rate"),
and if the provisions for interest contained in this Pawnee Note would result in
a rate higher than the Maximum Rate, interest shall nevertheless be limited to
the Maximum Rate and any amounts which may be paid toward interest in excess of
the Maximum Rate shall be applied to the reduction of principal, or, at the
lawfully exercised option of the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books and on Schedule A attached hereto all Advances made to the Maker and all
payments of principal amounts in respect of such Advances, which shall be
presumptive evidence as to the outstanding principal amount of all Advances;
provided, however, that the failure to make such notation with respect to any
Advance or payments shall not limit or otherwise affect the obligations of
Maker.

     6. Default; Acceleration. If any Event of Default occurs in the payment of
any principal, interest or any other sums when due hereunder, or in the
performance of any covenant or agreement hereunder, and such default continues
beyond any applicable notice, grace and/or cure period, then the outstanding
principal amount of the Project Preliminary Development Loan, any interest
accrued thereon from time to time, and any other sums then remaining unpaid
hereunder, at the option of the holder hereof and without notice, shall become
immediately due and payable and Lender may exercise any other rights or remedies
available under the Gaming Development Consulting Agreement or applicable law.
Failure to exercise any such option shall not constitute a waiver of the right
to exercise the same at a later time or in the event of any subsequent default.
The following shall constitute "Events of Default" for purposes of this Pawnee
Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts due hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and


                                      -2-

<PAGE>

          such action or proceeding shall not have been dismissed within sixty
          (60) days; or

     (d)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing; or

     (e)  Any representation or warranty given to the Lender by Maker (or any of
          its representatives) in connection with entering into the Gaming
          Development Consulting Agreement and/or any borrowing thereunder, or
          given by an Affiliate of Maker in connection with any agreement
          executed by an Affiliate of Maker in favor of Lender or any Affiliate
          of Lender, or required to be furnished under the terms thereof, shall
          prove untrue or misleading in any material respect (as determined by
          Lender in the exercise of its reasonable judgment) as of the time when
          given or shall fail to be true and correct in all material respects at
          any time during the term of the agreement; or


     (f)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Gaming Development Consulting Agreement or
          under any other agreement entered into with or in favor of Lender or
          any Affiliate of Lender, or default by Maker's Affiliate under any
          agreement executed by an Affiliate of Maker in favor of Lender or any
          Affiliate of Lender, which default is not cured by Maker or its
          Affiliate as applicable within the applicable cure period after
          written notice of default is delivered to Maker or its Affiliate; or

     (g)  The Gaming Development Consulting Agreement shall be terminated by
          either the Maker or the Lender.


     7. Security. This Pawnee Note is secured by a security interest in the
Collateral granted by Maker to Lender pursuant to the Gaming Development
Consulting Agreement, including standard and customary dominion account
agreements/security agreements/mortgages or deed of trust necessary to evidence
and perfect Lender's liens on such Collateral.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Pawnee Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Pawnee Note and any other related documents, shall be cumulative and concurrent
and may be pursued singularly,


                                      -3-

<PAGE>

successively or together, at the sole discretion of the Lender, and may be
exercised as often as occasion therefor shall occur; and the failure to exercise
any such right or remedy shall in no event be construed as a waiver or release
thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS PAWNEE NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Pawnee Note.

     12. Applicable Law. This Pawnee Note shall be construed in accordance with
and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Pawnee Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Pawnee Note is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Pawnee Note to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that such portion, provision or
provisions shall be given force to the fullest possible extent that it or they
are legal, valid and enforceable, that the remainder of this Pawnee Note shall
be construed as if such illegal, invalid, unlawful, void or unenforceable
portion, provision or provisions were not contained herein, and that the rights,
obligations and interest of Maker and holder hereof under the remainder of this
Pawnee Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Pawnee Note shall be valid unless the same is in writing and signed by the
party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Pawnee Note and of every part hereof, and the time and schedule requirements set
forth herein are material terms of this Pawnee Note.


                                      -4-

<PAGE>

     16. Successors and Assigns. This Pawnee Note shall inure to the benefit of
and shall be binding on the parties hereto and their respective successors and
assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Pawnee Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 13.2 of the Gaming Development Consulting Agreement.

     18. Dispute Resolution Limited Waiver of Sovereign Immunity. Maker and
Lender agree that any dispute in connection with this Pawnee Note shall be
subject to the dispute resolution procedures and limited waiver of sovereign
immunity contained in Article 12 of the Gaming Development Consulting Agreement,
the terms of which are incorporated by reference herein.

        [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                      -5-

<PAGE>

     IN WITNESS WHEREOF, Maker has caused this Pawnee Note to be executed and
delivered as of the date first above written.

                                        MAKER:

                                        PAWNEE CHILOCCO GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

           [Signature Page to Pawnee Note (Chilocco) in favor of Lakes
                             Pawnee Consulting, LLC]

<PAGE>

                                   Schedule A
                             (Schedule of Advances)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.107
<SEQUENCE>42
<FILENAME>c92713exv10w107.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.107

                           DOMINION ACCOUNT AGREEMENT
                          (Lakes Consulting - Chilocco)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 12, 2005 (the "Effective Date'"), between Pawnee Chilocco Gaming
Corporation ("Pawnee" and sometimes hereinafter referred to as the "Borrower"),
a wholly-owned subsidiary of the Pawnee Tribal Development Corporation ("Pawnee
TDC"), each created under the Constitution of and a governmental subdivision of
the Pawnee Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian
tribe, located in the State of Oklahoma, whose business office is located at 871
Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes Pawnee
Consulting, LLC, a Minnesota limited liability company (hereinafter referred to
as "Lakes"), whose business office is located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305, and when it has executed a counterpart signature page hereto,
the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is created under the Constitution of and a
governmental subdivision of the Pawnee Nation, a federally recognized Indian
tribe eligible for the special programs and services provided by the United
States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     WHEREAS, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation; and Pawnee TDC has established Pawnee as a legal entity which will own
and operate specified gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     WHEREAS, Lakes has entered into a Gaming Development Consulting Agreement
with Borrower dated January 12, 2005 (as heretofore and hereafter amended, the
"Consulting Contract"), pursuant to which Lakes is to provide certain
development financing and consulting services to Borrower.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of gross Revenues derived by
the Borrower with respect to each Project (as set forth in the Consulting
Contract), and to grant Lakes a first priority and perfected security interest
in such revenues subject only to Permitted Liens, each for the purposes and in
accordance with the terms set forth herein, as provided under the terms of the
Consulting Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Consulting
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Account Rights" shall have the meaning assigned to such term in Section
2.3 hereof.

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, Public Law
100-497.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean (i) all loans, compensation, fees, expenses and
other amounts owing by (a) Borrower to Lakes or its Affiliates under or with
respect to the Pawnee Note, and each of the other Transaction Documents, and (b)
the Pawnee Nation and/or Pawnee TDC to Lakes or its Affiliates under or with
respect to the Tribal Agreement or any other document or agreement executed in
favor of Lakes or its Affiliates by Pawnee Nation or Pawnee TDC in connection
with the Project, each of the foregoing, whether now existing or hereafter
incurred or arising, and (ii) together with any costs, expenses or other amounts
hereafter owing by the Borrower to Agent or Lakes pursuant to the terms of this
Agreement, each of the foregoing, whether now existing or hereafter incurred or
arising.


                                                                          Page 2

<PAGE>

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Consulting Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.

     "Project" shall have the meaning assigned to such term in the Consulting
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the gross Revenues (as such term is defined
in the Consulting Contract) of the Project, including without limitation credit
card receivables and other accounts receivable related to such project.

     "Resolution of Limited Waiver" shall mean that certain Resolution of the
Pawnee Chilocco Gaming Corporation Regarding Limited Waiver of Sovereign
Immunity - Resolution #05-03 - dated January 12, 2005, issued in connection with
the Transaction Documents.

     "Transaction Documents" shall mean each of this Agreement, the Consulting
Agreement, the Pawnee Notes, the Security Agreement, and any and all other
documents and agreements executed by Borrower in favor of Lakes or related
thereto or contemplated thereby (collectively, the "Transaction Documents").

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Agent hereby
acknowledges the security interest in the Collateral granted to Lakes by
Borrower. On the date of execution of this Agreement, the Borrower shall cause
to be delivered to Lakes (a) such financing statements and similar documents
necessary to perfect the security interest granted to Lakes pursuant to Section
3.1 hereof (the "Financing Statements") and (b) a legal opinion in form and
substance reasonably acceptable to Lakes, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by the Borrower, together with opinions as to the Borrower's
sovereign immunity waiver and noncontravention with laws and agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct any manager of the Project, and any other applicable parties to cause all
Project Revenues to be transferred to the Agent on each Business Day for deposit
into the Project Dominion Account. If any Project Revenues are initially
deposited in collection bank(s) (which shall be permitted


                                                                          Page 3

<PAGE>

provided the collecting bank(s) execute and deliver the Joinder Agreement
attached hereto as Exhibit A with the Borrower, Lakes and the collecting banks
in form mutually acceptable to each of such parties), the Borrower shall
transfer or cause to be transferred all such Project Revenues or other
Collateral, consisting of cash and other collected funds directly by wire
transfer of immediate available funds to the Project Dominion Account on each
Business Day. In the event that the Borrower receives any payment that should
have been deposited into the Project Dominion Account as provided pursuant to
this Agreement, the Borrower agrees that it will hold such amounts in trust for
the benefit of Lakes, and shall not commingle any such funds with any of its
funds or other property and shall immediately transfer such amounts to the Agent
for deposit into the Project Dominion Account. The Borrower agrees that the
Agent's officers, agents and employees are irrevocably authorized by it to
endorse for payment to the Agent any instruments received by the Agent for
deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Notwithstanding any
other term or provision contained herein or in the Consulting Contract, only
Borrower shall have the authority to make withdrawals from or exercise any other
rights (collectively, the "Account Rights") with respect to Project Dominion
Account; provided that in accordance with Sections 3.2 and 5.2 hereof, Lakes may
revoke such rights of Borrower to make withdrawals and transfers from the
Project Dominion Account. Upon Agent's receipt of a Notice of Exclusive Control
from Lakes, then in connection with any such withdrawals and transfers and any
other aspects of the Project Dominion Account, the Agent shall acknowledge and
comply with only the withdrawal requests and other directions received from
Lakes, except pursuant to an arbitration award made in an arbitration proceeding
to which Lakes and the Borrower are parties. Lakes acknowledges that when it
shall release any funds from the Project Dominion Account, then its security
interest in such funds shall also be deemed to have been released concurrently
therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of an Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a


                                                                          Page 4

<PAGE>

continuing first perfected security interest to Lakes, for and on behalf of
Lakes itself and its Affiliates, subject only to Permitted Liens, of all of the
Borrower's right, title and interest in and to the Collateral. The Borrower
represents and warrants that the Borrower is (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except for Permitted Liens; and that
no financing statement, notice of lien, mortgage, deed of trust or instrument
similar in effect covering the Collateral or any portion thereof or any proceeds
thereof ("LIEN NOTICE") exists or is on file in any public office, except as
relates to Permitted Liens and except as may have been filed in favor of Lakes
relating to this Agreement or related agreements, or for which duly executed
termination statements have been delivered to Lakes for filing. Without the
prior written consent of Lakes, Borrower will not in any way encumber, or
hypothecate, or create or permit to exist, any lien, security interest, charge
or encumbrance or adverse claim upon or other interest in the Collateral, except
for Permitted Liens, and the Borrower will defend the Collateral against all
claims and demands of all persons at any time claiming the same or any interest
therein, except as expressly provided herein. The Borrower will not permit any
Lien Notices to exist or be on file in any public office with respect to all or
any portion of the Collateral except, in each case, for Lien Notices of holders
of Permitted Liens or encumbrances permitted by the Consulting Contract or any
other Transaction Document or except as may have been filed by or for the
benefit of Lakes relating to this Security Agreement or related agreements. The
Borrower shall promptly notify Lakes of any attachment or other legal process
levied against any of the Collateral and any information received by any
Borrower relative to the Collateral, which may in any material way affect the
value of the Collateral or the rights and remedies of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:


                                                                          Page 5

<PAGE>

               (i) to obtain and adjust insurance required under this Agreement;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
until such time as Lakes delivers a written notice to Agent and the Borrower in
accordance with Section 5.2 that Lakes is thereby exercising exclusive control
over the Project Dominion Account ("NOTICE OF EXCLUSIVE CONTROL"), provided that
the proceeds of any such investments are deposited in or credited to the Project
Dominion Account contemporaneously with such transaction; and provided, further,
such investment instructions shall not affect the type or nature of Collateral
for attachment and perfection purposes under the Oklahoma Uniform Commercial
Code (as may be amended from time to time) or any other applicable law. After
Agent receives the Notice of Exclusive Control, it will immediately cease
complying with any investment instructions concerning Project Dominion Account
originated by Borrower or its representatives and shall comply with only such
investment instructions as are originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Consulting Contract have been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Consulting Contract.


                                                                          Page 6

<PAGE>

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or Lakes may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach by
Borrower and termination of the Consulting Contract, the Borrower will furnish
the following to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of each Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,


                                                                          Page 7

<PAGE>

               shall be and remain subject to the provisions of Section 13.15 of
               the Consulting Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager of each Project, substantially in the form
               set forth in Exhibit B stating that, except as explained in
               reasonable detail in such certificate, all gross Project Revenues
               with respect to each Project has been deposited into the Project
               Dominion Account for the period covered by such financial
               statement. If such certificate discloses an exception to such
               certification, such certificate shall set forth what action the
               Borrower has taken or proposes to take with respect thereto.

     (d) Insurance. The Borrower shall cause to be maintained insurance on each
Project and related assets with such coverages and in such amounts as are
reasonably satisfactory to Lakes, including without limitation, loss of business
income coverage, and naming Lakes as an additional insured, lender loss payee
and mortgagee, if applicable. Upon request, the Borrower shall provide to the
Agent and Lakes certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended an


                                                                          Page 8

<PAGE>

additional reasonable period of time for so long as the Borrower shall be using
diligent efforts to effect a cure thereof but no more than an additional sixty
(60) days.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under any Pawnee Note or other
Transaction Document and shall have continued beyond any applicable grace or
cure period.

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower, and to
apply the same towards the repayment of the Obligations, and to endorse in the
name of the Borrower any checks, drafts, notes or other instruments or documents
received in payment of or on account of the Project Revenues or other
Collateral; and any such proceeds so received and prepaid shall be applied to
installments of principal on the Obligations in the inverse order of their
maturity; and provided further that Lakes may obtain any injunctive or other
relief as is necessary for the enforcement of this Agreement and the terms and
provisions set forth herein, and may exercise such other rights and remedies
available by law or agreement; PROVIDED, HOWEVER, that notwithstanding any term
or provision contained herein, Lakes shall take all steps necessary to continue
to permit and cause the necessary withdrawals and transfers to be made from the
Project Dominion Account in accordance with Section 5.3 hereof; and in no event
shall Lakes exercise any remedy against the Borrower (excluding other third
parties) with respect to the Project Revenues other than such remedies as are
necessary to require their deposit into the Project Dominion Account or seeking
an accounting and turnover of any Project Revenues held in trust by the Borrower
as required under Section 2.2 hereof until such time that the Borrower shall
have ceased business operations or in accordance with Section 5.3 it is
determined that any portion thereof is no longer economically feasible to
operate at the Project, at which time Lakes may exercise all rights and remedies
under applicable law or by agreement and apply all proceeds of the Collateral to
the repayment of the Obligations. Borrower agrees that, to the extent notice of
sale shall be required by law with respect to the disposition of any Collateral,
at least ten (10) calendar days notice to the Borrower of the time and place of
any public sale or the time after which a private sale is to be made shall
constitute reasonable notification. Lakes agrees that it shall withdraw and
terminate any Notice of Exclusive Control at such time that all outstanding
Events of Default have been cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and


                                                                          Page 9

<PAGE>

in exercising any such powers or authority, the right to pay all expenses
incurred in connection therewith, including attorneys' fees. Borrower hereby
agrees that it shall be bound by any such payment made or incurred or act taken
by Lakes hereunder and shall reimburse Lakes for all reasonable payments made
and expenses incurred under this Agreement, which amounts shall be secured under
this Agreement. Lakes shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WITHDRAWALS AFTER DEFAULT/TERMINATION. Upon the occurrence of
an Event of Default and if Lakes shall issue the Notice of Exclusive Control to
Agent, Lakes and Borrower agree that until all obligations under the Transaction
Documents have been indefeasible paid, then during any applicable cure period
related thereto or if the Consulting Contract is terminated, (a) Lakes shall
permit the release of and turnover to Borrower monthly of such funds from the
Project Dominion Account as are reasonably necessary to pay normal and customary
operating costs and expenses related to the operation of the Project, excluding
any amounts that are payable to the Borrower, the Pawnee TDC, the Pawnee Nation
or any other affiliate of any of such parties and excluding debt service on any
indebtedness for borrowed money or capital leases except as otherwise approved
by Lakes in writing (collectively, the "Permitted Operating Costs"); and in
connection therewith, Borrower shall provide a proposed operating expense budget
to Lakes for its approval, which shall be updated from time to time at Lakes
request and any funds provided to Borrower shall be spent, used and applied only
in accordance with such budget; and (b) to the extent economically feasible (as
hereinafter defined), Borrower agrees to continue to operate and maintain the
Project and Project Facilities in accordance with reasonable industry standards,
and as to any portions of the Project Facilities that are no longer economically
feasible to operate, Borrower and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Project Dominion Account and disbursed in accordance with
the same terms and provisions set forth in clause (a) above, provided however
that such liquidation


                                                                         Page 10

<PAGE>

proceeds shall be excluded from net total revenues for purposes of calculating
the management compensation of any manager of the Project; and Borrower shall
keep the Project Facilities and all related assets insured for the coverages and
amounts required by this Agreement and name Lakes as an additional insured,
lender loss payee and mortgagee, as applicable and provide evidence thereof upon
request until all amounts owing to Lakes have been paid in full, and if any
portion of the Project assets are damaged by any casualty and it is economically
feasible for Borrower to continue to operate such damaged assets, then Borrower
shall repair and reconstruct such operations that were damaged and are to be
continued, and any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Project Dominion Account and disbursed in accordance with the same terms and
provisions set forth herein, provided however that such excess proceeds shall be
excluded from net total revenues for purposes of calculating the management
compensation of any manager of the Project. As used herein, the term
"economically feasible" shall mean that the gross Revenues derived from any
applicable operations is in excess of that needed to pay the Permitted Operating
Costs for such operations.

     Section 5.4 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.


                                                                         Page 11

<PAGE>

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement. If Borrower shall fail to
pay any of such costs when due, Lakes may make a withdrawal of proceeds from the
Project Dominion Account in an amount sufficient to cause the payment of the
same or reimburse Lakes for any such payment.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,
administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the


                                                                         Page 12

<PAGE>

Borrower shall not be and Lakes shall be responsible for such related costs and
expenses. If Borrower shall fail to pay any of such costs when due, Lakes may
make a withdrawal of proceeds from the Project Dominion Account in an amount
sufficient to cause the payment of the same or reimburse Lakes for any such
payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days after the date of this Agreement, Borrower shall select an eligible
financial institution to act as the agent (the "Agent") under this Agreement and
cause the Agent to execute a counterpart signature page to this Agreement,
thereby becoming a party hereto. Thereafter, there shall at all times be an
Agent hereunder. Any such Agent shall be a financial institution organized and
doing business under the laws of the United States of America or of any State,
having a combined capital, undivided profits and surplus of at least
$500,000,000. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of


                                                                         Page 13

<PAGE>

resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower (so long as a Notice of
Exclusive Control has not been issued by Lakes to the Agent) and Lakes delivered
to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.

                                    ARTICLE 7
                                  MISCELLANEOUS


                                                                         Page 14

<PAGE>

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:   Pawnee Chilocco Gaming Corporation
                      871 Little D. Drive, Building 68
                      P.O. Box 280
                      Pawnee, OK 74058
                      Attention: Chairman

     With a copy to:  David J. Ketelsleger, Esq.
                      McAfee & Taft
                      Two Leadership Square
                      Tenth Floor
                      211 North Robinson
                      Oklahoma City, OK 73102-7103

If to Lakes:          Lakes Pawnee Consulting, LLC
                      130 Cheshire Lane
                      Minnetonka, MN 55305
                      Attention: Timothy J. Cope

     With a copy to:  Kevin C. Quigley, Esq.
                      Hamilton Quigley Twait & Foley PLC
                      W1450 First National Bank Building
                      332 Minnesota Street
                      St. Paul, MN 55101-1314

          and         Brian J. Klein, Esq.
                      Maslon, Edelman, Borman & Brand, LLP
                      3300 Wells Fargo Center
                      90 South Seventh Street
                      Minneapolis, MN 55402-4140

To Agent:             At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as


                                                                         Page 15

<PAGE>

to such jurisdiction, be ineffective to the extent of such prohibition without
invalidating the remaining provisions hereof, provided, however that where the
provisions of any such applicable law may be waived, they hereby are waived by
the Parties to the fullest extent permitted by law to the end that this
Agreement shall be deemed to be a valid and binding agreement in accordance with
its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Consulting Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient. No failure on the part of the Agent or
Lakes to exercise and no delay in exercising, any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power or right preclude any other or further exercise thereof of any other power
or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the dominion account agreement referred
to in Section 3.1(g) of the Consulting Contract. As such and without limiting
the scope of such Consulting Contract, the provisions of Article 12 of the
Consulting Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration and jurisdiction provisions contained
therein and the Resolution of Limited Waiver. This Agreement and the Project
Dominion Account will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles and without limiting
the foregoing, the Oklahoma Uniform Commercial Code (as may be amended form time
to time) notwithstanding any provision therein or other applicable law that
would otherwise make such laws inapplicable to the Borrower. The parties hereto
may not change the law governing this Agreement and the Project Dominion Account
without express written consent of the Borrower, Agent and Lakes.


                                                                         Page 16

<PAGE>

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Consulting Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        PAWNEE CHILOCCO GAMING CORPORATION


                                        By: /s/ Monthy Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairperson
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE CONSULTING, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: ________, 200_

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated January 12, 2005 (as amended or otherwise modified from time to time, the
"Dominion Agreement") by and among Pawnee Chilocco Gaming Corporation
("Borrower"), Lakes Pawnee Consulting, LLC ("Lakes") and
____________________________________ ("Agent"), the Collecting Bank, must
execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and consulting services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                             -----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Pawnee Chilocco Gaming Corporation (the
"Borrower"), do hereby provide this Compliance Certificate in connection with
that certain Dominion Account Agreement dated January 12, 2005 (the "Dominion
Agreement"), by and between the Borrower, Lakes, and __________________________
Bank (the "Bank"); capitalized terms used but not otherwise defined herein shall
have the meaning set forth in the Dominion Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No.
          _________________ with the Bank.

                                        PAWNEE CHILOCCO GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.108
<SEQUENCE>43
<FILENAME>c92713exv10w108.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.108

                               SECURITY AGREEMENT
                          (LAKES CONSULTING - CHILOCCO)

     This Security Agreement is made and entered into on January 12, 2005, by
and between Pawnee Chilocco Gaming Corporation (hereinafter referred to as
"Pawnee" or "Debtor"), a wholly-owned subsidiary of the Pawnee Tribal
Development Corporation ("Pawnee TDC"), each created under the Constitution of
and a governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee
Nation"), a federally recognized Indian tribe, whose business office is located
at 871 Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes
Pawnee Consulting, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes" or "Secured Party"), whose business office is located at
130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the Constitution of and a governmental
subdivision of the Pawnee Nation, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into a Gaming Development Consulting
Agreement with Debtor dated January 12, 2005 (as heretofore and hereafter
amended, the "Consulting Contract"), pursuant to which Lakes is to provide
certain development financing and consulting services to Debtor as more
specifically described therein.

     WHEREAS, pursuant to the Consulting Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Consulting Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                   AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges and
grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the Debtor's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each case whether now
owned or hereafter acquired by Debtor in order to secure the payment and
performance of the obligations of Debtor to Secured Party described in Section 3
herein below. On


                                  Page 1 of 15

<PAGE>

the date of execution of this Agreement, Debtor shall cause to be delivered to
Secured Party: (a) such financing statements and similar documents necessary to
perfect the security interest granted to Secured Party pursuant to this
Agreement (the "Financing Statements"), and (b) a legal opinion in form and
substance reasonably acceptable to Secured Party, opining as to the due
authorization, execution, delivery and enforceability of this Agreement and the
Financing Statements by Debtor, together with opinions as to Debtor's sovereign
immunity waiver and non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) each Project, Gaming
Facility Site and/or Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral"):

          (a) any Furnishings and Equipment (as defined in the Consulting
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Consulting Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "Project" means each business enterprise of the Debtor now or
hereafter created to engage in Class II Gaming and III Gaming (as defined in the
Indian Gaming Regulatory Act of 1988, Public Law 100-497 ("IGRA")) at the
Project's Gaming Facility, and to conduct the operations of any Ancillary
Facilities of the Project, including, but not limited to, operating and managing
office space, kids arcade, child care facility, hotel with swimming pool and
golf course, restaurant, RV park, retail stores, entertainment facilities, or
the sale of fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs.

          "Project Facilities" means the buildings, structures and improvements
to be constructed and used by the Project for its gaming and ancillary
operations.


                                  Page 2 of 15

<PAGE>

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Pawnee Notes, the
Consulting Contract, this Agreement, and each dominion account agreement,
mortgage, or other document or instrument in favor of Secured Party or its
Affiliates (as such term is defined in the Consulting Contract) and related
thereto or hereto (collectively, the "Transaction Documents"), and (b) the
Pawnee Nation and/or Pawnee TDC to Secured Party or its Affiliates under or with
respect to the Tribal Agreement or any other document or agreement executed in
favor of Secured Party or its Affiliates by Pawnee Nation or Pawnee TDC in
connection with the Project, each of the foregoing, whether now existing or
hereafter incurred or arising, (ii) any and all sums advanced by Secured Party
in order to preserve the Collateral or preserve Secured Party's security
interest in the Collateral (or the priority thereof) and (iii) the expenses of
retaking, holding, preparing for sale or lease, selling or otherwise disposing
of or realizing on the Collateral, of any proceeding for the collection or
enforcement of any indebtedness, obligations or liabilities of Debtor referred
to above, or of any exercise by Secured Party of its rights hereunder, together
with reasonable attorneys' fees and disbursements and court costs (collectively,
the "Secured Obligations"); PROVIDED HOWEVER, Secured Party agrees to terminate
this Security Agreement upon request if Debtor has satisfied the following
conditions: (a) all Secured Obligations have been repaid in full to Secured
Party and Secured Party has no further obligation, if any, to make advances
under the Consulting Contract with respect thereto, and (b) the Consulting
Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

     4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 9.2 of the Consulting Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and perform this Security Agreement. This Security Agreement constitutes a
legally valid and binding


                                  Page 3 of 15

<PAGE>

obligation of the Debtor, enforceable against the Debtor in accordance with its
terms subject to any limitations set forth in the Resolution of Limited Waiver
dated December 30, 2004 of the Debtor related to and approving the Transaction
Documents (the "Resolution of Limited Waiver"). Subject to the completion of the
items identified in Section 4(c) below, the provisions of this Security
Agreement are effective to create in favor of Secured Party a valid and
enforceable first, prior and perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default


                                  Page 4 of 15

<PAGE>

under, or constitute an event which with notice or lapse of time or both will
result in a breach of or constitute a default under, any agreement, indenture,
mortgage, deed of trust, equipment lease, instrument or other document to which
Debtor is a party, conflict with or require approval, authorization, notice or
consent under any law, order, rule, regulation, license or permit applicable to
Debtor of any court or any federal or state government, regulatory body or
administrative agency, or any other governmental body having jurisdiction over
Debtor or its properties, or require notice, consent, approval or authorization
by or registration or filing with any person or entity (including, without
limitation, any stockholder or creditor of Debtor) other than any notices to
Debtor from Secured Party required hereunder except as may be agreed to by
Debtor and Secured Party. Except for the Permitted Liens, none of the Collateral
is subject to any agreement, indenture, mortgage, deed of trust, equipment
lease, instrument or other document to which Debtor is a party that may restrict
or inhibit Secured Party's rights or ability to sell or dispose of the
Collateral or any part thereof after the occurrence of an Event of Default (as
defined herein).

     5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than 21 days after a
request by Secured Party, procure or execute and deliver all further instruments
and documents (including, without limitation, notices, legal opinions, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements) necessary or appropriate to and take any other actions which are
necessary or, in the judgment of Secured Party, desirable or appropriate to
perfect or to continue the perfection, priority and enforceability of Secured
Party's security interests in the Collateral, to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, to protect the Collateral against the rights, claims or interests of
third persons, or to effect or to assure further the purposes and provisions of
this Security Agreement, and will pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted


                                  Page 5 of 15

<PAGE>

hereby; (ii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices as may be necessary or
desirable, which Secured Party may reasonably request in order to perfect and
preserve the perfection and priority of the security interests granted or
purported to be granted hereby; (iii) if any Collateral shall be evidenced by a
promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for liens permitted by and subject to the terms of
Section 9.2 of the Consulting Contract ("Permitted Liens"), and the Debtor will
defend the Collateral against all claims and demands of all persons at any time
claiming the same or any interest therein, except as expressly provided herein.
Debtor will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or except as may have been
filed by or for the benefit of Secured Party relating to this Security Agreement
or related agreements. Debtor shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor relative to the Collateral, which may in any
material way affect the value of the Collateral or the rights and remedies of
Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or


                                  Page 6 of 15

<PAGE>

otherwise disposed of in violation of these provisions, the security interest of
Secured Party shall continue in such Collateral or part thereof notwithstanding
such sale, transfer, assignment, exchange or other disposition, and Debtor will
hold the proceeds thereof in a separate account for Secured Party's benefit.
Debtor will, at Secured Party's request, transfer such proceeds to Secured Party
in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Consulting Contract, Debtor
will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Consulting
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance on each Project
and related assets with such coverages and in such amounts as are reasonably
satisfactory to Secured Party, including without limitation, loss of business
income coverage, and naming Secured Party as an additional insured, lender loss
payee and mortgagee, if applicable. Upon request, the Debtor shall provide to
the Secured Party certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.;

          (j) Except as expressly permitted by the Consulting Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party' s sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than


                                  Page 7 of 15

<PAGE>

thirty (30) days delinquent and will in a timely manner record and assign to
Secured Party, to the extent and at the earliest time permitted by law, any such
liens and rights to under such guaranties;

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and


                                  Page 8 of 15

<PAGE>

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

     6. DEFAULTS AND REMEDIES

          6.1 EVENTS OF DEFAULT. Each of the following occurrences shall
constitute an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Consulting Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

          6.2 REMEDIES. Upon the occurrence and continuation of an Event of
Default hereunder, the Debtor expressly covenants and agrees that Secured Party
may, at its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Consulting Contract is terminated and either (i) the the
Gaming Facility has not opened for business to the general public, or (ii) the
Debtor does not or at any time fails to continue operations of Class II Gaming
and/or Class III Gaming at the Project's Gaming Facility or any material portion
of the Project Facilities, Secured Party may immediately take possession of any
of the Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's places of business, premises and property to exercise Secured
Party's rights hereunder; and without notice (except as specified below), sell
the Collateral or any part thereof in one or more parcels at one or more public
or private sales, at any of Secured Party's offices or elsewhere, at such time
or times, for cash, on credit or for future delivery,


                                  Page 9 of 15

<PAGE>

and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor acknowledges and agrees that, to the extent notice of
sale shall be required by law, at least ten (10) days' written notice to Debtor
of the time and place of any public sale or of the date on or after which any
private sale is to be made shall constitute reasonable notification. Any public
sale shall be held at such time or times during ordinary business hours and at
such place or places as Secured Party may fix in the notice of such sale.
Notwithstanding the foregoing, Secured Party shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. Secured Party
may, without notice or publication, adjourn any public or private sale, or cause
the same to be adjourned from time to time by announcement at the time and place
fixed for sale or, with respect to a private sale, after which such sale may
take place, and any such sale may, without further notice, be made at the time
and place to which it was so adjourned or, with respect to a private sale, after
which such sale may take place. Each purchaser at any such sale shall hold the
property sold free from any claim or right on the part of Debtor, and the Debtor
hereby waives, to the full extent permitted by law, all rights of stay and/or
appraisal which Debtor now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted. The Debtor also hereby
waives any claims against Secured Party arising by reason of the fact that the
price at which any Collateral may have been sold at a private sale was less than
the price which might have been obtained at a public sale, even if Secured Party
accepts the first offer received and does not offer such Collateral to more than
one offeree. The parties hereto agree that the notice provisions, method, manner
and terms of any sale, transfer or disposition of any Collateral in compliance
with the terms set forth herein or any other provision of this Security
Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and


                                 Page 10 of 15

<PAGE>

neither the Secured Party nor any of their officers, directors, trustees,
employees, representatives or agents shall, in the absence of willful misconduct
or gross negligence, be responsible to the Debtor for any act or failure to act
pursuant to this Section 6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:          Pawnee Chilocco Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Secured Party:   Lakes Pawnee Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

               and     Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center


                                 Page 11 of 15

<PAGE>

                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Consulting Contract, Debtor shall not assign any of its interest under this
Security Agreement without the prior written consent of Secured Party. Any
purported assignment inconsistent with this provision shall, at the option of
Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way


                                 Page 12 of 15

<PAGE>

be affected or impaired thereby and shall nonetheless remain in full force and
effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured
Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms hereof, and execute and deliver to Debtor such documents as
Debtor may reasonably request to


                                 Page 13 of 15

<PAGE>

evidence such termination. Such reassignment and redelivery shall be without
warranty by or recourse to Secured Party, and shall be at the expense of Debtor;
provided, however, that this Security Agreement (including all representations,
warranties and covenants contained herein) shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by Secured
Party in respect of the indebtedness and obligations secured hereunder is
rescinded or must otherwise be restored or returned by Secured Party upon or in
connection with the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Debtor or any other person or upon or in connection with the
appointment of any intervenor or conservator of, or trustee or similar official
for, Debtor or any other person or any substantial part of its assets, or
otherwise, all as though such payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the security agreement referred to in
the Consulting Contract. As such and without limiting the scope of such
agreements, the provisions of Article 12 of the Consulting Contract apply to
this Agreement and are hereby incorporated by reference, including, without
limitation, the limited sovereign immunity waiver, limitations on recourse and
arbitration provisions contained therein and the Resolution of Limited Waiver.
This Agreement will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles. The parties hereto may
not change the law governing this Agreement without express written consent of
the Debtor and Secured Party.

        [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>


          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        PAWNEE CHILOCCO GAMING CORPORATION

ATTEST:


By: /s/ Leslie Hand                     By: /s/ Monty Matlock
    ---------------------------------       ------------------------------------
Name: Leslie Hand                       Name: Monty Matlock
      -------------------------------         ----------------------------------
Its: President                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES PAWNEE CONSULTING, LLC

ATTEST:


By: /s/ Kevin Kean                      By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Kevin Kean                        Name: Timothy J. Cope
      -------------------------------   Title: President and Chief Financial
Its:                                           Officer
     --------------------------------

<PAGE>

                                   EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
           (PAWNEE CHILOCCO GAMING CORPORATION COLLATERAL LOCATIONS)

1.   ____________________________________________________, OKLAHOMA

2.   ____________________________________________________, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.109
<SEQUENCE>44
<FILENAME>c92713exv10w109.txt
<DESCRIPTION>MANAGEMENT AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.109

                              MANAGEMENT AGREEMENT

                              FOR A GAMING FACILITY
                                       AND
                          RELATED ANCILLARY FACILITIES

                                     BETWEEN

                       PAWNEE CHILOCCO GAMING CORPORATION,
                        A WHOLLY-OWNED SUBSIDIARY OF THE
                     PAWNEE TRIBAL DEVELOPMENT CORPORATION,
                        A GOVERNMENTAL SUBDIVISION OF THE
                           PAWNEE NATION OF OKLAHOMA,
                          A FEDERALLY RECOGNIZED TRIBE

                                       AND

                          LAKES PAWNEE MANAGEMENT, LLC
                      A MINNESOTA LIMITED LIABILITY COMPANY

                             DATED: JANUARY 12, 2005


                                      -1-

<PAGE>

     THIS MANAGEMENT AGREEMENT, is made and entered into this 12th day of
January, 2005 by and between Pawnee Chilocco Gaming Corporation ("Pawnee"), a
wholly owned subsidiary of the Pawnee Tribal Development Corporation ("Pawnee
TDC"), each created under the Constitution of and a governmental subdivision of
the Pawnee Nation of Oklahoma ("Pawnee Nation"), a federally recognized Indian
tribe, located in the State of Oklahoma, with business offices located at 871
Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes Pawnee
Management, LLC, a Minnesota limited liability company (hereinafter referred to
as "Lakes"), whose business office is located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

                                    RECITALS

     A. The Pawnee Nation is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribally-chartered corporation and governmental
subdivision, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation. Pawnee TDC has established Pawnee, a wholly-owned subsidiary of Pawnee
TDC and tribally-chartered corporation, as the legal entity which will own and
operate certain gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     B. The United States government holds lands in the State of Oklahoma in
trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     C. In compliance with the Indian Gaming Regulatory Act of 1988, P.L.
100-497, 25 U.S.C. Section 2701 et seq. as it may from time to time be amended,
the governing body of the Pawnee Nation has enacted a tribal ordinance
regulating the operation of gaming activities conducted on Pawnee Nation "Indian
lands" (hereinafter referred to as the "Gaming Ordinance"), creating the Pawnee
Nation Gaming Commission, and authorizing Class II and Class III gaming on its
"Indian lands" subject to the provisions of the Gaming Ordinance and a
Tribal-State Compact or gaming procedures issued by the Secretary of the U.S.
Department of the Interior.

     D. The Pawnee Nation is committed to using any gaming activities to provide
employment and improve the social, economic, education, and health needs of its
members; to increase the revenues of the tribe; and to enhance the Pawnee
Nation's economic self-sufficiency and self-determination. The Pawnee gaming
projects are expected to generate substantial revenues for the Pawnee TDC, and
therefore significantly improve the social, economic and health conditions of
present and future tribal members, while strengthening the Pawnee Nation's
overall economic self-sufficiency and self-determination.


                                      -2-

<PAGE>

     E. Pawnee presently lacks the resources to operate a gaming operation on
its own and desires to retain the services of a management company, with
knowledge and experience in the gaming industry, to manage and operate certain
of its gaming operations and related resort facilities.

     F. Lakes has represented to Pawnee that it has the managerial capacity to
commence operation of the Project's Gaming Facility and Ancillary Facilities (as
defined herein); and Pawnee has selected Lakes, and Lakes agrees, to provide the
management expertise necessary to the conducting of successful tribal gaming
operation at the Project's Gaming Facility and the successful operation of its
Ancillary Facilities.

     G. This Management Agreement shall become effective when all the necessary
approvals listed in Section 2.19 are received (the "Effective Date") and shall
continue for a term as described in Section 2.19, unless otherwise provided in
this Management Agreement.

     H. This Management Agreement is entered into pursuant to the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as that
statute may be amended. All gaming conducted at the Gaming Facility (as defined
herein) will at all times comply with the IGRA, applicable tribal law and the
Tribal-State Compact or gaming procedures issued by the Secretary, if any.

     J. Any dispute regarding this Management Agreement between the parties or
any other Transaction Documents is to be subject to the dispute resolution and
governing law provisions contained herein, as well as the Resolution of Limited
Waiver attached hereto.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Pawnee and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     As they are used in this Management Agreement, the terms listed below shall
have the meaning assigned to them in this Article:

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.


                                      -3-

<PAGE>

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Project's Gaming Facility; provided, however, unless the
parties otherwise agree, the term "Ancillary Facilities" shall not include any
of the Pawnee Tribe's existing enterprises consisting of fuel and retail sales
made at the existing U.S. Hwy 412 & State Hwy 18 "Travel Plaza" currently
operated by the Pawnee TDC or retail sales made at its existing "Trading Post"
convenience store operated by the Pawnee TDC as currently constructed at this
time.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Class II Gaming" means games as defined in 25 U.S.C. Section 2703(7)(A),
as such law may be amended and as defined by the National Indian Gaming
Commission in 25 C.F.R. Section 502.3 and amendments thereto, but only to the
extent such games are authorized by tribal ordinance and licensed by the Gaming
Commission.

     "Class III Gaming" means all gaming that is not Class I or Class II Gaming
as defined in the IGRA, including, but not limited to, the forms of gaming
listed as Class III games by the National Indian Gaming Commission in 25 C.F.R.
Section 502.4 and amendments thereto, but only to the extent such gaming is
allowed by a Tribal-State Compact or gaming procedures issued by the Secretary,
tribal ordinance, and licensed by the Gaming Commission.

     "Commencement Date" means the first day that Lakes is legally able to
commence management of the Class II and/or Class III gaming operations conducted
at the Project's Gaming Facility under all Legal Requirements.

     "Costs of Gaming Operation" means the total of all expenses for the
operation of the Class II and/or Class III Gaming activities conducted at the
Project's Gaming Facility pursuant to Generally Accepted Accounting Principles
("GAAP"), including but not limited to the following: (1) fees imposed upon the
Gaming Facility by the National Indian Gaming Commission based upon its gross
receipts from Class II and/or Class III Gaming activities; (2) any contributions
and license/regulatory fee reimbursements payable to the State pursuant to a
Tribal-State Compact; (3) the amount, if any, required by a Tribal-State Compact
to fund or support programs for the treatment and assistance of compulsive
gamblers and for the prevention of compulsive gambling; (4) license or other
fees for background investigations upon "key employees" and "primary management
officials" as defined in 25 C.F.R. Section 502.14 and Section 502.19; (5)
depreciation and amortization applicable to the Gaming Facility based upon an
assumed thirty (30) years life consistent with GAAP, and depreciation and
amortization of all other assets (including without limitation all capital
replacements and improvements, and fixtures, furnishings and equipment) located
therein in accordance with GAAP; (6) costs of administration, recruiting,
hiring, firing and training employees working in or for the Gaming Facility's
Class II and/or Class III Gaming activities; (7) compensation and benefits to
Gaming Facility employees; (8) reasonable and customary regulatory fees imposed
on the Gaming Facility by the Gaming Commission (which amounts shall be subject
to the provisions of Section 5.1 contained herein), (9) management fees


                                      -4-

<PAGE>

to be paid Lakes under Section 5.5(b) hereof; and (10) total gaming-related
costs, fees and expenses, including, without limitation: materials, supplies,
inventory, utilities, repairs and maintenance (excluding capital replacements,
the costs of which shall be amortized as hereinabove provided), insurance and
bonding, marketing, advertising, annual audits, accounting, legal or other
professional and consulting services, security or guard services, and such other
costs, expenses or fees necessarily, customarily and reasonably incurred in the
operation of the Class II and/or Class III Gaming activities conducted at the
Gaming Facility, and reasonable and necessary travel expenses incurred
subsequent to the Commencement Date for officers and employees of Lakes and
authorized representatives of Pawnee in connection with the Gaming Facility's
operations; provided, however, that "Costs of Gaming Operation" shall
specifically not include any license fees or costs of Lakes or its employees in
connection with licensing with either the NIGC or Gaming Commission.

     "Costs of Ancillary Operations" means all expenses and costs pursuant to
Generally Accepted Accounting Principles incurred in operating the Project's
Ancillary Facilities in which neither Class II Gaming nor Class III Gaming is
conducted, including, without limitation: (1) depreciation and amortization
applicable to such non-gaming facilities based upon an assumed thirty (30) years
life consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(2) all employment costs relating to non-gaming employees working in or for such
commercial business facilities; (3) management fees to be paid Lakes under
Section 5.5(b) hereof; (4) non-gaming supplies and materials, insurance and
other non-gaming costs reasonably and customarily incurred in operation of the
Ancillary Facilities in which neither Class II nor Class III Gaming may be
conducted.

     "Dominion Account" shall have the meaning described in Section 2.8(a)
herein.

     "Dominion Account Agreement" shall mean the Dominion Account Agreement to
be executed by Pawnee in favor of the Lakes in a form to be agreed to by Pawnee
and Lakes together with all amendments, substitutions and renewals thereof.

     "Effective Date" means the effective date of this Management Agreement as
determined pursuant to Section 2.19 herein.

     "Fiscal Year" means the accounting year used for the operation of the
Project as agreed upon by Lakes and Pawnee.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project in accordance with the
standards set forth in this Management Agreement, including, without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;


                                      -5-

<PAGE>

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project in accordance with the standards set forth in this
     Management Agreement.

     "Gaming Commission" means the Pawnee Nation Gaming Commission established,
or to be established, by the Gaming Ordinance, as amended (which ordinance must
be approved by the NIGC), with authority to license and regulate gaming
activities on "Indian lands" upon which the Pawnee Nation conducts gaming
activities under IGRA and which is a subordinate governmental entity of the
Pawnee Nation and is entitled to all sovereign governmental immunity of the
tribe.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming activities on the Gaming Facility Site,
each whether now existing or hereafter construed or acquired.

     "Gaming Facility Site" shall mean the lands to be used as the site for
constructing the Gaming Facility described on attached EXHIBIT A, including the
land upon which the Project's Class II and/or Class III Gaming activities are
conducted (which is land upon which Class II and/or Class III Gaming may legally
be conducted under IGRA and the Tribal-State Compact).

     "Gaming Ordinance" means the tribal ordinance enacted by the governing body
of the Pawnee Nation and approved by the NIGC in compliance with the Indian
Gaming Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as
it may from time to time be amended, regulating the operation of gaming
activities conducted on Pawnee Nation "Indian lands", creating the Pawnee Nation
Gaming Commission, and authorizing Class II and Class III gaming on its "Indian
lands" subject to the provisions of the Gaming Ordinance and a Tribal-State
Compact or gaming procedures issued by the Secretary of the U.S. Department of
the Interior.

     "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and


                                      -6-

<PAGE>

pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession.

     "Governmental Authorities" means the United States, the BIA, the State, the
Pawnee Nation and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming and/or Class III Gaming at
the Gaming Facility, the operation of the Project Facilities, or Pawnee's or
Lakes' obligations under this Management Agreement or any Transaction Document.

     "Gross Gaming Revenues" means the Project's total revenue from Class II
and/or Class III Gaming activities (excluding any insurance proceeds received
other than business interruption insurance proceeds and insurance proceeds
received to reimburse the Project for any claims included, or to be included, as
Costs of Gaming Operations).

     "Gross Ancillary Revenues" means the Project's total receipts from the sale
or rental of food, beverages, souvenirs, hotel facilities, equipment and all
other goods and services supplied for non-Class II and/or non-Class III Gaming
activities at the Ancillary Facilities that are incidental to the operation of
the Project (excluding any insurance proceeds received other than business
interruption insurance proceeds and insurance proceeds received to reimburse the
Enterprise for any claims included, or to be included, as Costs of Ancillary
Operations).

     "Gross Total Revenues" means the total of Gross Gaming Revenues and Gross
Ancillary Revenues of the Project.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Indemnity Agreement" shall mean the Indemnity Agreement between Pawnee and
Lakes described in Section 7.5 in the form agreed to by the parties, together
with all amendments, substitutions and renewals thereof.

     "Legal Requirements" means any and all present and future judicial,
administrative, and federal, state, local or tribal rulings or decisions, and
any and all present and future federal, state, local and tribal laws,
ordinances, rules, regulations, permits, licenses and certificates, in any way
applicable to Pawnee, Lakes, the Gaming Facility Site, the Project Facilities,
and the Project, including without limitation, IGRA, the Tribal-State Compact,
and the Gaming Ordinance.

     "Limited Recourse" means that all liabilities or obligations of Pawnee
related to this Management Agreement, the Operating Note, any Transaction
Documents, the Project Facilities, or the Project contemplated by this
Management Agreement, and any related awards, judgments or decrees, shall be
payable solely out of the undistributed and future Net Total Revenues of the
Project, and shall be a limited recourse obligation of Pawnee, with no recourse
to any of Pawnee's


                                      -7-

<PAGE>

assets other than such undistributed and future Net Total Revenues of the
Project (except as to: (i) a security interest in the Furnishings and Equipment,
(ii) the security interest in the Gross Total Revenues pursuant to the Dominion
Account Agreement, (iii) as to any mortgages or deeds of trust on fee lands upon
which the Project is located, and (iv) as permitted under Section 10.3(d) herein
and by Paragraph 5(c) of the Resolution of Limited Waiver attached hereto as
Exhibit B). In no event, except as permitted under Section 10.3(d) herein and by
Paragraph 5(c) of the Resolution of Limited Waiver attached hereto as Exhibit
B), shall Lakes have recourse to (a) the physical property of the Project
Facilities (other than Furnishings and Equipment and to any mortgages or deeds
of trust on fee lands upon which the Project is located subject to the security
interest securing the Operating Note), (b) Net Total Revenue distributions
already received by Pawnee from the Project and made to the Pawnee TDC in
accordance with this Management Agreement and/or the Dominion Account Agreement,
(c) assets of the Pawnee TDC purchased with such Net Total Revenue
distributions, or (d) any other asset of the Pawnee TDC or Pawnee Nation (other
than such undistributed and future Net Total Revenues of the Project, the
security interest in the Furnishings and Equipment and any mortgages or deeds of
trust on fee lands upon which the Project is located).

     "Lakes" means Lakes Pawnee Management, LLC, a Minnesota limited liability
company with its business office located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

     "Management Agreement" shall mean this Management Agreement for a Gaming
Facility and Related Ancillary Facilities between the parties that deals with
the management of the Project and its operations, as the same may be amended or
modified from time to time, subject to all Legal Requirements.

     "Material Breach" shall have the meaning described in Section 6.1 herein.

     "Minimum Guaranteed Monthly Payments" means the minimum monthly amount
payable to Pawnee, which amount shall be determined pursuant to Section 5.3
hereof.

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to the IGRA.

     "Net Gaming Revenues" means Gross Gaming Revenues less (1) amounts paid out
as, or paid for, prizes; and (2) Costs of Gaming Operation (excluding management
compensation as set forth in Section 5.5 (b) herein).

     "Net Ancillary Revenues" means Gross Ancillary Revenues less Costs of
Ancillary Operations.

     "Net Total Revenues" means the sum of Net Gaming Revenues plus Net
Ancillary Revenues.

     "NIGC Approval" means written approval by the NIGC Chairman of this
Management


                                      -8-

<PAGE>

Agreement.

     "Notes and Security Provisions" shall have the meaning set forth in Section
6.4(b) hereof.

     "Operating Note" means the promissory note evidencing the Minimum
Guaranteed Payment Advances under Section 5.3(b) herein and the Working Capital
Advances under Section 5.7 herein made by Lakes, substantially in a form to be
agreed to by Pawnee and Lakes, together with all amendments, substitutions and
renewals thereof.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the business enterprise of Pawnee created to engage in
Class II and/or Class III Gaming at the Gaming Facility located at the Gaming
Facility Site, and which shall include any other lawful commercial activity
conducted in the Ancillary Facilities including, but not limited to, operating
and managing office space, kids arcade, child care facility, hotel with swimming
pool and golf course, restaurant, RV park, retail stores, entertainment
facilities, or the sale of fuel, food, beverages, alcohol, tobacco, gifts, and
souvenirs, and any other amenities which the parties mutually agree should be
included as part of the Project.

     "Project Accounts" shall have the meaning described in Section 2.8 herein.

     "Project Facilities" means the permanent buildings, structures and
improvements used by the Project for its gaming and ancillary operations,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operations,
each whether now existing or hereafter constructed or acquired.

     "Replacement" shall have the meaning described in Section 6.4(c) herein.

     "Resolution of Limited Waiver" refers to the limited waiver of sovereign
immunity to be adopted by Pawnee in the form attached hereto as EXHIBIT B and
evidencing all approvals required pursuant to Pawnee's governing documents and
applicable law (it being understood and agreed that Pawnee shall take such
further actions to ratify, adopt and enforce the attached form of Resolution of
Limited Waiver as shall be required by law or regulation due to future changes
in its own legal or governing status to fully preserve its stated intent).

     "Scope of Project Description Sheet" shall mean the Scope of Project
Description Sheet dated January 12, 2005, which substantially describes the
scope of the Project currently contemplated by Pawnee and Lakes.

     "Secretary" means the Secretary of the Interior of the United States, or
her appropriately designated representative/agent.


                                      -9-

<PAGE>

     "Security Agreement" shall mean the Security Agreement to be executed by
Pawnee in favor of Lakes in a form to be agreed to by Pawnee and Lakes, together
with all amendments, substitutions and renewals thereof.

     "State" means the State of Oklahoma wherein the Gaming Site is located.

     "Transaction Documents" shall have the meaning described in Section 9.12(b)
herein.

     "Tribal Agreement" shall mean the agreement between the Pawnee Nation and
Pawnee TDC and Lakes or its affiliates described in Section 9.12(i).

     "Tribal-State Compact" means an agreement which may be entered into between
the Pawnee Nation and the State concerning Class III Gaming and any amendments
or other modifications thereto, which agreement must be approved by the
Secretary and published in the Federal Register.

     "UCC Financing Statements" means UCC-1 financing statements naming Pawnee
as debtor and naming Lakes or any third party lenders providing funding to the
Project as a secured party, in the form approved by the parties.

     "Working Capital Advances" shall have the meaning described in Section 5.7
herein.

                                    ARTICLE 2
                           AUTHORITY AND DUTY OF LAKES

     2.1 Appointment as Agent. Subject to the terms and conditions of this
Management Agreement, Pawnee hereby appoints Lakes to act as the exclusive agent
for Pawnee for all matters related to the management of the operations of the
Project Facilities and the Project during the term of this Management Agreement.
Lakes' agency responsibilities shall include, among other things, maintenance
and improvement of the Project Facilities, management and operation of the
Project's Class II and/or Class III Gaming activities within the Gaming
Facility, and all other revenue producing activities that are conducted by the
Project in the Ancillary Facilities, such as the sale of food and beverages.
Lakes accepts such appointment as Pawnee's exclusive agent for the term of this
Management Agreement. Subject to the provisions of this Management Agreement and
specifically the restrictions in this Article 2 and the budget provisions in
Article 5 hereof, Lakes shall have, and Pawnee does hereby grant to Lakes, the
power and authority as agent for Pawnee, to exercise the rights of Pawnee under
and to execute, modify, or amend any contracts associated with the operations of
the Project Facilities and Project (excluding this Management Agreement or
compacts or other agreements with the State or any other governmental agency,
which shall remain the sole and exclusive authority of the Pawnee Nation),
including, without limitation, purchase orders, equipment and retail leases,
contracts for services, including utilities, and maintenance and repair
services, relating to the operation of the


                                      -10-

<PAGE>

Project Facilities and the Project except for real estate agreements and
contracts (excluding retail leases); provided, however, that in no event shall
Lakes execute any contracts or agreements which require payments exceeding
$250,000 in the aggregate, or which have a term exceeding one (1) year. The
duties and authorities of Lakes shall be subject in all events to receipt of all
necessary licenses, consents or approvals from the Gaming Commission.

     2.2 Limitations. Lakes shall have no authority to waive or impair Pawnee's
sovereign immunity. Except as stated herein, Lakes shall have no authority as
Pawnee's agent under this Management Agreement without the prior written
approval of Pawnee (not to be unreasonably withheld): (a) to incur costs which
are materially in excess of the expenditures to be agreed upon in the operating
budget or the capital expenditure budget to be developed pursuant to Section 5.1
hereof; (b) to sell, encumber or otherwise dispose of any personal property or
equipment located in the Project Facilities, except for inventory sold in the
regular course of business and other items which must be replaced due to age,
obsolescence, or wear and tear; (c) to purchase any goods or services from Lakes
or any of Lakes' affiliated companies as a Costs of Gaming Operations or Costs
of Ancillary Operations unless such arrangement is specifically approved in
writing by Pawnee. Except as specifically authorized in this Article 2, Lakes
shall not hold itself out to any third party as the agent or representative of
Pawnee.

     2.3 Lakes' Authority and Responsibility.

          (a) Lakes, through the Project's general manager, shall conduct and
direct all business and affairs in connection with the day-to-day operation,
management and maintenance of the Project and the Project Facilities, including
the establishment of operating days and hours. It is the parties' intention that
the Project Facilities be open 24 hours daily, seven days a week. Lakes is
hereby granted the necessary power and authority to act, through the Project's
general manager, in order to fulfill all of its responsibilities under this
Management Agreement. Nothing herein grants or is intended to grant Lakes a
titled interest to the Project Facilities or to the Project. Lakes hereby
accepts such retention and engagement. Pawnee shall have the sole proprietary
interest in and ultimate responsibility for the conduct of all Class II and/or
Class III Gaming conducted by the Project, subject to the rights and
responsibilities of Lakes under this Management Agreement.

          (b) In managing, operating, maintaining and repairing the Project and
the Project Facilities under this Management Agreement, Lakes' duties, through
the Project's general manager, shall include, without limitation, the following:
(i) Lakes shall use reasonable measures for the orderly physical administration,
management, and operation of the Project and the Project Facilities, including
without limitation cleaning, painting, decorating, plumbing, carpeting, grounds
care and such other maintenance and repair work as is reasonably necessary; (ii)
Lakes shall comply with all duly enacted statutes, regulations and ordinances of
the Pawnee Nation; and (iii) Lakes shall comply with all applicable provisions
of the Internal Revenue Code including, but not limited to, the prompt filing of
any cash transaction reports and W-2G reports that may be required by the
Internal Revenue Service of the United States or under the Tribal-State Compact.


                                      -11-

<PAGE>

     2.4 Compliance with Laws.

          (a) Lakes, through the Project's general manager, shall assist Pawnee
in compliance with all terms and conditions of the Tribal-State Compact, the
Gaming Ordinance, IGRA and any gaming regulations (collectively, the "Governing
Laws"), the violation of which would materially impair the conduct of gaming
permitted to be conducted under IGRA by the Project. Without limiting the
foregoing, Lakes shall also supply the NIGC with all information necessary to
comply with the National Environmental Policy Act, as it may be amended from
time to time, and comply with NIGC's regulations relating thereto. Lakes shall
ensure compliance with requirements concerning the reporting and withholding of
taxes with respect to the winnings from gaming operations pursuant to this
Management Agreement. Pawnee agrees to cooperate with Lakes and aid Lakes in
ensuring compliance with the foregoing laws, regulations and requirements. In
managing and operating the Project Facilities and the Project, Lakes shall
comply with all laws, rules, regulations, ordinances, compacts and all other
agreements affecting the same, including without limitation the Governing Laws.

          (b) The parties shall use their best efforts to obtain all necessary
approvals of Governmental Authorities of this Management Agreement.

     2.5 Security. Lakes shall provide for appropriate security for the
operation of the Project Facilities. All aspects of Project Facilities security
shall be the responsibility of Lakes. Upon agreement of Pawnee and Lakes, any
security officer may be bonded and insured in an amount commensurate with his or
her enforcement duties and obligations. The cost of any charge for security and
increased public safety services will be a Costs of Gaming Operations or Costs
of Ancillary Operations, as appropriate.

     2.6 Accounting, Financial Records, and Audits.

          (a) Lakes, through the Project's general manager, shall maintain full
and accurate records and books of account for operations of gaming activities
and related ancillary operations managed by Lakes. Such records shall be
maintained at Lakes' office located within the Project Facilities and shall be
made available for immediate inspection and verification at all times.
Inspection or verification by the Governmental Authorities shall be coordinated
through the Gaming Commission.

          (b) Prior to the Commencement Date, and subject to the approval of
Pawnee and the Gaming Commission, which approvals shall not be unreasonably
withheld and which shall occur prior to the Commencement Date, Lakes, through
the Project's general manager, shall establish and maintain such approved
accounting systems and procedures that shall: (i) include procedures for
internal accounting controls; (ii) permit the preparation of financial
statements in accordance with GAAP ; (iii) be susceptible to audit; (iv) allow
the Project, Pawnee and NIGC to calculate the annual fee under 25 CFR Section
514.1; (v) permit the calculation of Lakes' compensation under Section 5.5(b)
herein; and (vi) provide for the allocation of operating expenses or overhead
expenses among Pawnee, the Project and Lakes, or any other user of shared
facilities or services.


                                      -12-

<PAGE>

Supporting records and the agreed upon accounting system shall be sufficiently
detailed to permit the calculation and payment of Lakes' compensation hereunder
and to permit the performance of any fee or contribution computations required
under IGRA, a Tribal-State Compact and other applicable laws or regulations.

          (c) Net Gaming Revenues, Net Ancillary Revenues, and Net Total
Revenues will be calculated by Lakes, through the Project's general manager, for
purposes of distribution monthly in accordance with Section 5.5 and copies of
such calculations shall be promptly supplied to Pawnee as required by Section
5.4 herein.

          (d) All records shall be maintained so as to permit the preparation of
financial statements in accordance with generally accepted accounting principles
consistently applied and in accordance with procedures to be mutually agreed
upon by the parties. Lakes, through the Project's general manager, shall, as a
Costs of Gaming Operations, furnish to Pawnee and the Gaming Commission, monthly
financial reports in accordance with Section 5.4 herein. Such reports shall
provide reasonable detail as requested by Pawnee and the Gaming Commission with
respect to revenues and expenses of each profit center of the Project. In
addition, all gaming operations conducted within the Gaming Facility shall be
subject to special outside annual audits, which the Gaming Commission may cause
to be conducted, and all contracts or subcontracts for supplies, services or
concessions for a contract amount in excess of $25,000 annually relating to
gaming activities within the Gaming Facility shall be subject to audits, which
audits the Gaming Commission may cause to conducted by an independent certified
public accountant from a Big Five accounting firm with more than five (5) years
experience in audits of gaming enterprise operations selected and approved by
the Gaming Commission. The cost of such audits and audit reports (including the
annual audit under Section 5.6 herein) shall constitute Costs of Gaming
Operation. The Lakes shall make any reports or presentations to Pawnee officials
as are requested.

     2.7. Cash Monitoring. Lakes, through the Project's general manager, will
promulgate, and all parties and their respective employees, agents, and
representatives will obey operational policies consistent with the Gaming
Ordinance respecting the handling of cash, security systems, and access to cash
cage, counting rooms, and other places where cash is kept and handled. Pawnee
and the Gaming Commission and its authorized representatives shall have the
right to monitor and investigate systems for cash management implemented by
Lakes and to verify daily Gross Gaming Revenues, Gross Ancillary Revenues, and
Gross Total Revenues.

     2.8 Bank Accounts, Reserve Funds and Permitted Investments.

          (a) On or prior to the Commencement Date, Pawnee and Lakes shall
execute the Dominion Account Agreement and create the Dominion Account
("Dominion Account") described therein. Gross Gaming Revenues and Gross
Ancillary Revenues shall be deposited daily into the Dominion Account, which
shall be subject to the lien of the Dominion Account Agreement and established
at a commercial bank, of Pawnee's choice, organized under the laws of the United
States of America or any state thereof provided such bank is a member of the


                                      -13-

<PAGE>

Federal Deposit Insurance Corporation and has combined capital, undivided
profits and surplus of at least $500,000,000. Lakes shall also establish other
segregated bank accounts with the approval of Pawnee for the operation of the
Project (the "Project Accounts"), which accounts must indicate the custodial
nature of the accounts. The signatures of authorized representatives of Lakes
shall be the only signatures required to make withdrawals (by check or
otherwise) from such accounts for single withdrawals of less than $250,000,
provided that the monies withdrawn by Lakes are to be used only for the purposes
set forth herein and provided further that if the amount of any single
withdrawal exceeds $250,000 (excluding payout and prizes and transfers to any
designated payroll accounts, taxes, and purchases of cash for day-to-day
operational purposes, or Lakes' compensation under Section 5.5 herein), then the
signature of Pawnee's designated representative will also be required.

          (b) Lakes agrees that subject to the terms of Sections 5.3(b) and
6.4(b) hereof, Lakes shall make or permit timely transfers from the Dominion
Account to the Project Accounts of all funds needed to pay (i) Costs of Gaming
Operations; (ii) Costs of Ancillary Operations; (iii) required debt service on
the Project Facilities, as well as any other third party loans to which Lakes
has consented in writing pursuant to the terms of this Management Agreement or
other agreement; (iv) the Minimum Guaranteed Monthly Payment; (v) Minimum
Guaranty Payment Advances; and (vi) disbursements required pursuant to Section
5.5 hereof. Upon the termination of this Management Agreement and so long as:
(a) any amounts remain owing to Lakes hereunder or with respect to any related
Transaction Document, and (b) the Project shall continue in operation pursuant
to the terms of Section 6.4 hereof, then Lakes shall continue to permit
transfers from the Dominion Account to the Project Accounts for payment of the
amounts described above, but shall specifically exclude any Costs of Gaming
Operations or Costs of Ancillary Operations otherwise payable to Pawnee or any
of its Affiliates with the exception of reasonable gaming license fees and any
costs or expense associated with the provision of reasonable supplies and/or
services provided by Pawnee to the Project.

          (c) Surplus funds deposited in the Dominion Account and the Project
Accounts may be invested by Lakes in the following permitted investments: (i) a
money market mutual fund registered under the Investment Company Act of 1940
that invests exclusively in (1) marketable direct obligations issued or
unconditionally guaranteed by the United State Government or issued by an agency
thereof and backed by the full faith and credit of the United States, (2)
commercial paper having, at the time of acquisition, a rating of A-1 or P-1 or
better from either Standard & Poor's Corporation or Moody's Investors Service,
Inc., respectively; or (ii) other investments as may be directed by Lakes with
the prior written consent of Pawnee.

     2.9 Enforcement of Rights.

          (a) During the term of this Management Agreement, except as otherwise
provided in Section 2.9 (b) herein, Pawnee and Lakes shall mutually agree with
respect to the handling of the defense, prosecution or settlement of civil
disputes with third parties relating to gaming and other management activities
conducted or contracts executed by Lakes, as agent for Pawnee. The parties will
assist and cooperate with each other with respect to such third-party


                                      -14-

<PAGE>

claims and disputes. All uninsured liabilities incurred or expenses incurred by
Pawnee and Lakes or any of the employees, officers or directors of any party in
defending such claims by third parties or prosecuting claims against third
parties shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending upon the circumstances and nature of the claim,
except with respect to claims and liabilities resulting from criminal
misconduct, which shall be governed by Article 7 herein.

          (b) All claims brought against Pawnee or Lakes or any of the
employees, officers or directors of any party arising out of or relating to
gaming or other ancillary operations conducted pursuant to this Management
Agreement that may be settled and released for a total settlement amount of less
than $100,000 may be paid and settled by Lakes on behalf of Pawnee and/or Lakes
in accordance with Lakes' good faith business judgment.

     2.10 Fire and Safety Services. Lakes, through the Project's general
manager, shall be responsible for obtaining adequate coverage for fire and
safety services and may, in its discretion, have such services provided on a
contractual basis by the local fire and police departments. The costs of any
fire and safety protection services shall be appropriately allocated between
Costs of Gaming Operation and Costs of Ancillary Operations, and, if provided by
a department of the Pawnee Nation, shall not exceed the actual cost of providing
such services.

     2.11 Timely Payment of Costs of Gaming Operations and Costs of Ancillary
Operations. Lakes shall be responsible for paying Costs of Gaming Operation and
Costs of Ancillary Operations on behalf of the Project from the bank account(s)
established pursuant to Section 2.8 herein so as to avoid any late-payment
penalties, except those incurred as a result of good faith payment disputes) to
the extent funds of the Project are available; provided, however, that payment
of all such costs (and taxes or similar payments arising from Project
operations) shall be solely the legal responsibility of the Project.

     2.12 Acquisition of Gaming and Other Equipment.

          (a) All gaming equipment shall be acquired by Lakes, as agent for
Pawnee, on behalf of the Project from Gaming Commission licensed distributors
and manufacturers.

          (b) All acquisitions of new equipment after the public opening of the
Project Facilities shall be purchased by Lakes as agent for Pawnee on behalf of
the Project on a cash on delivery basis, unless otherwise agreed by Pawnee.

     2.13 Hours of Operation. Unless otherwise agreed by the parties, the
Project Facilities shall be operated seven days per week and twenty-four hours
per day, subject to any restrictions in the IGRA, the Gaming Ordinance and a
Tribal-State Compact.

     2.14 Access to Operations. Lakes, through the Project's general manager,
shall provide immediate access by appropriate officials of the Gaming Commission
and Pawnee's designated representative to the gaming operation, including all
books and records in addition to those listed


                                      -15-

<PAGE>

in the access requirements set forth in Sections 2.6 and 2.7 herein.

     2.15 Increased Public Safety Services. The parties agree that increased
actual costs of law enforcement and police protection services required as a
result of Class II and/or Class III Gaming in the Gaming Facility shall be paid
as Costs of Gaming Operation.

     2.16 Advertising. Lakes, through the Project's general manager, shall
contract for and place advertising, subject to prior approval of the general
concepts of the advertising by Pawnee. Advertising costs will be included in the
operating budgets prepared in accordance with Article 5 herein.

     2.17 Certain Meetings. The parties agree that, to facilitate oversight of
the activities conducted pursuant to this Management Agreement and to maintain
communication generally between the individuals who will be involved in
supervising those activities, Pawnee or its designated representative and the
Lakes' principal individuals will meet at least monthly to review operations of
the Project Facilities and any current issues pertaining thereto.

     2.18 Maintenance. Lakes, through the Project's general manager, will cause
the Project Facilities to be repaired and maintained and operated in a clean,
good and orderly condition. Repairs and maintenance will be paid as Costs of
Gaming Operation if related to the gaming operations of the Project, or as Costs
of Ancillary Operation if related to the other ancillary operations of the
Project.

     2.19 Term. Notwithstanding the date of signature of the parties hereto,
this Management Agreement shall become effective automatically (without need of
amendment, ratification or other action of the parties) upon written approval of
the Gaming Ordinance and this Management Agreement by the Chairman of the
National Indian Gaming Commission. The Commencement Date shall be the first day
upon which Lakes may legally manage the Gaming Facility's gaming operations
under IGRA. Unless sooner terminated as provided herein, this Management
Agreement shall, subject to Legal Requirements, continue for a term of seven (7)
years from the Commencement Date, provided however that the Notes and Security
Provisions, including without limitation, each of (a) the Security Agreement,
Dominion Account Agreement, Indemnity Agreement and the UCC Financing
Statements, and (b) sections 2.8 and Article 7 hereof shall each survive and
remain effective until terminated under Article 6 hereof and the amounts owing
to Lakes or its Affiliate by Pawnee under this Management Agreement and related
Transaction Documents have been paid in full. In the event that the cost to
develop the Project Facilities is less than twenty six million dollars
($26,000,000), then the term shall be five (5) years.

     2.20 Pawnee Representatives. Pawnee hereby acknowledges and agrees that to
the extent any authorization, consent or other approval of the Pawnee is
required under this Management Agreement or any related Transaction Documents
and Pawnee shall provide to Lakes a resolution naming any individual or
individuals authorized to represent Pawnee for purposes or for the purpose of
the operation and performance of this Management Agreement and related
Transaction Documents, then Lakes shall be entitled to rely on all decisions,
authorizations,


                                      -16-

<PAGE>

consents, and approvals provided by such individual or individuals, as
applicable, until such time as Pawnee shall deliver to Lakes an additional
resolution revoking or otherwise modifying such authority.

     2.21 Gaming Facility Site. Pawnee and Lakes mutually agreed that the site
to be used for constructing the Gaming Facility ("Gaming Facility Site") shall
be those lands described on attached EXHIBIT A, (which is land upon which Class
II and/or Class III Gaming may legally be conducted under IGRA and the
Tribal-State Compact).

     2.22 Scope of Project. The scope of the Project subject to this Management
Agreement shall be subject to the mutual approval of the parties. It is
contemplated the scope of the Project will be substantially as described on the
Scope of Project Description Sheet dated January 12, 2005, subject to such
changes as may be necessary or appropriate taking into account competitive
conditions, financing and other circumstances. The parties understand that
market, Tribal-State Compact, governmental or other conditions may change and it
may be necessary to expand or decrease the scope of the Project.

     2.23 Non-Encumbering Assets. Pawnee agrees not to encumber any of the
assets of the Project Facilities or the Project without the written consent of
Lakes, which consent will not be unreasonably withheld; except that Pawnee shall
have the right without the consent of Lakes to grant security interests in the
Project's revenues which are subordinate to Lakes' interests under this
Management Agreement and all related Transaction Documents pursuant to a
subordination agreement in form and substance acceptable to Lakes. Pawnee agrees
to enter into a limited, transactional waiver of sovereign immunity and consent
to jurisdiction and arbitration as to Lakes in connection with this Management
Agreement and any related Transaction Documents, as provided in the Resolution
of Limited Waiver.

                                    ARTICLE 3
                                PERSONNEL MATTERS

     3.1 Employees. All employees involved with operation of the Gaming
Facility's Class II and/or Class III Gaming activities and related ancillary
activities throughout the Project Facilities subject to management by Lakes
under this Management Agreement shall be employees of Pawnee. Subject to the
applicable requirements in the Tribal-State Compact, the employment relationship
shall be governed by Pawnee Nation substantive law and any applicable federal
law, subject to the Pawnee Nation's reasonable Indian preference policies, and
all matters will be subject to dispute resolution procedures in the manner
described in this Management Agreement. Lakes, on behalf of the Project, shall
be solely responsible for the hiring, training, promoting, and firing of all
such employees except for the general manager as agreed to by Pawnee and Lakes,
whose employment, advancement and termination shall be subject to approval of
Pawnee, such approval not to be unreasonably withheld. Lakes shall develop a
policy and procedure in conjunction with Pawnee, to implement an executive
development program for employees who are members of the Pawnee Nation whereby
members will be prepared through training and education to assume key


                                      -17-

<PAGE>

management positions within the gaming and ancillary operations of the Project.
All salaries, wages, employee insurance, worker compensation premiums,
employment taxes, government exactions of any kind related to employment,
benefits, and overhead related to the hiring, supervising, and discharge of
employees, will be Costs of Gaming Operations or Costs of Ancillary Operations,
as appropriate.

     3.2 Project Employee Policies. Lakes, through the Project's general
manager, shall prepare a draft of personnel policies and procedures (the
"Project Employee Policies"), including a job classification system with salary
levels and scales, which policies and procedures shall be subject to approval by
Pawnee. The Project Employee Policies shall include a grievance procedure in
order to establish fair and uniform standards for the Project employees, which
will include procedures for the resolution of disputes between the Project and
Project employees. At a minimum, the Project Employee Policies shall provide for
an employee grievance process which provides the following:

     A written "Board of Review" process will be created by the Project's
     general manager to provide Project employees with a procedure for bringing
     work related issues to the attention of Project management so they may be
     promptly and permanently resolved in a fair and equitable manner. The Board
     of Review process will be available to all Project employees except: (1)
     employees at the director level and above, and (2) employees discharged for
     actions involving violations of tribal gaming regulations or law, or
     federal, state, or local law. Project employees will be eligible to use the
     Board of Review process if they have: (a) completed thirty (30) work
     shifts, and progressed through the chain of command in their home
     department in the Project, (b) brought the work related issue to the
     attention of the Project's human resources department, and (c) completed a
     Board of Review hearing request form within the allotted time frame. The
     Project's human resources department shall be responsible for selecting
     hearing panel members as outlined in written procedures to be adopted. The
     Board of Review will be empowered to make the full range of decisions
     available and appropriate (i.e. providing back pay and an apology to the
     employee, or upholding the employee's discharge). The Board of Review's
     decision on the work related issue will final and binding, and there will
     be no appeal beyond the Board of Review.

Lakes, through the Project's general manager, shall be responsible for
administering the Project Employee Policies. Any material revisions to the
Project Employee Policies shall not be effective unless they are approved by
Pawnee. All such actions shall comply with applicable tribal law, subject to the
applicable requirements in a Tribal-State Compact.

     3.3 Employee Background Checks. A background investigation shall be
conducted by the Gaming Commission in compliance with all Legal Requirements, to
the extent applicable, on each applicant for employment as soon as reasonably
practicable. No individual whose prior activities, criminal record, if any, or
reputation, habits and associations are known to pose a threat to the public
interest, the effective regulation of Class II and/or Class III Gaming, or to
the gaming licenses of Lakes or the Project, or to create or enhance the dangers
of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of Project gaming activities, shall knowingly be


                                      -18-

<PAGE>

employed by the Project or Pawnee. The background investigation procedures
employed by the Gaming Commission shall be formulated in consultation with Lakes
and shall satisfy all regulatory requirements independently applicable to Lakes;
provided, however, that this provision shall not be deemed to limit or impair
the exclusive authority of the Gaming Commission pursuant to the Gaming
Ordinance or the exercise of its discretion thereunder. Any cost associated with
obtaining such background investigations shall constitute Costs of Gaming
Operation.

     3.4 Pawnee Nation and Indian Preference. Lakes, through the Project's
general manager, shall adhere in regard to recruitment, employment, reduction in
force, promotion, training and related employment actions to a publicly
announced policy and practice of Pawnee Nation Preference and/or any publicly
announced policy of Indian preference, both of which must be reasonably
promulgated by the Pawnee Nation.

     3.5 Conflict of Interest.

          (a) Lakes covenants that it will not unduly interfere with, or attempt
to influence the internal affairs or government decisions of the Pawnee Nation
or any of its Affiliates for its gain or advantage.

          (b) Lakes hereby certifies that no payments have been made or will be
made in the future by Lakes to any tribal official, relative of any tribal
official or government employee for the purpose of obtaining any special
privilege, gain, advantage or consideration for Lakes in connection with this
Management Agreement, except for the fees payable to the Gaming Commission and
amounts payable to Pawnee pursuant to this Management Agreement. However,
nothing in this provision shall prohibit Lakes from making contributions to
community organizations within the Pawnee Nation or to the Pawnee Nation for the
purpose of funding community activities.

          (c) No member of the Gaming Commission, or any Pawnee Nation tribal
court official may be employed by Lakes or be a "Party in Interest" as defined
in Section 8.1 (a) herein with respect to this Management Agreement or a gaming
equipment agreement or have any direct or indirect financial interest in the
gaming to be operated pursuant to this Management Agreement. tribal officials
shall not be eligible for employment at the Project Facilities and Project, but
will be eligible to enter into contracts for the provision of goods or services
for the Project Facilities and Project.

          (d) Lakes further agrees to comply with all conflict of interest rules
set forth in regulations or ordinances of the Pawnee Nation.

     3.6 Participation in Tribal Functions. Lakes acknowledges that personnel
who are members of the Pawnee Nation have cultural and religious
responsibilities to perform in regard to tribal rituals and similar activities.
Lakes, through the Project's general manager, will schedule working hours and
take other actions, with the assistance and advice of Pawnee, to accommodate
tribal members in performing these responsibilities without affecting their
employment status or


                                      -19-

<PAGE>

position.

                                    ARTICLE 4
                                    INSURANCE

     4.1 Duty to Maintain. Lakes, acting as agent of Pawnee, shall maintain
during the course of this Management Agreement, appropriately allocated as a
Cost of Gaming Operation or a Cost of Ancillary Operations, insurance coverages
in forms and amounts that will adequately protect Pawnee and Lakes, but in no
case less than the amounts set forth in this Article, or as required by a
Tribal-State Compact.

     4.2 Workers' Compensation. Lakes, acting as agent of Pawnee, shall maintain
adequate workers' compensation insurance in accordance with all applicable laws,
including employer's liability insurance, in the amounts agreed to by the Lakes
and Pawnee, or as required by the Tribal-State Compact.

     4.3 Commercial General Liability. Lakes, acting as agent of Pawnee, shall
purchase on Pawnee's behalf and maintain commercial general liability insurance
covering operations of the Project, including blanket contractual liability
coverage, broad form property liability coverage, and personal injury coverage
in the amount of $1,000,000 per person/$3,000,000 per occurrence for bodily
injury and $1,000,000 per person/$3,000,000 per occurrence for property damage,
or as required by the Tribal-State Compact or the Gaming Commission.

     4.4 Automobile. Lakes, acting as agent of Pawnee, shall maintain
comprehensive automobile liability insurance covering operations of the Project,
including all owned, hired and non-owned automobiles, trucks, buses, trailers,
motorcycles or other equipment licensed for highway use with limits and coverage
approved by Lakes and Pawnee.

     4.5 Pawnee and Lakes to be Insured. Insurance set forth in Sections 4.3 and
4.4 hereof shall name Pawnee and Lakes as insureds, and such policies shall be
endorsed to prohibit the insurer from raising tribal sovereign immunity as a
defense to the payment of claim by the insurer.

     4.6 Property Insurance. Lakes shall also, acting a agent for Pawnee,
procure replacement value all-risk casualty and extended hazard insurance in
appropriate coverage amounts which shall insure the Project Facilities and any
fixtures, improvements and contents located therein against lost or damage by
fire, theft and vandalism. Such casualty insurance policy or policies shall name
Pawnee, Lakes, and the Project Facilities as insureds. All such casualty
insurance proceeds shall be applied to the immediate replacement of the
applicable Project Facilities' part or fixture, improvements or contents therein
unless the parties agree otherwise. Subject to the terms of Sections 6.4 and 6.6
hereof, any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Dominion Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such excess proceeds
(except business interruption insurance proceeds) shall be excluded from Net
Total Revenues for purposes of calculating the management


                                      -20-

<PAGE>

compensation of Lakes under Section 5.5(b) hereof.

     4.7 Fidelity Bond. Lakes, acting as agent of Pawnee, shall maintain
fidelity bonds on Project employees and in such amounts as Lakes and Pawnee
shall deem reasonable.

     4.8 Unemployment Insurance. Lakes, acting as agent for Pawnee, shall
maintain adequate unemployment compensation/disability insurance with respect to
the Project employees in compliance with the Tribal-State Compact, if
applicable.

     4.9 Evidence of Insurance. From time to time as reasonably requested by
Pawnee, Lakes shall supply to Pawnee and any necessary Governmental Authorities
copies of the insurance policies applicable to the Project Facilities or Project
operations as required by this Article.

     4.10 Insurance Proceeds. Subject to the terms of Sections 6.4 and 6.6
hereof, any insurance proceeds received with respect to the Project, except as
provided in Section 4.6 hereof, shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided, however, that if there is any insurance recovery for a
claim related to the operation of the Project for which either Pawnee or Lakes
has previously paid from its own separate funds, then, to the extent of amounts
paid by either of such parties, the insurance proceeds will be paid over to them
and the balance shall be deposited into the Dominion Account as above.

                                    ARTICLE 5
                     BUDGETS, COMPENSATION AND REIMBURSEMENT

     5.1 Projections and Budgets.

          (a) The parties shall use their best efforts to project expected
revenues and expenses for the first three (3) years of Lakes' operation of the
Project, and the projections, as described in the business plan to be submitted
to the NIGC with this Management Agreement, represent the parties' mutual
expectations.

          (b) Lakes shall prepare an initial operating budget for the first
Fiscal Year of Project operations under its management pursuant to this
Management Agreement and submit the same to Pawnee for approval by Pawnee prior
to the Commencement Date. Annual operating budgets shall be submitted by Lakes
to Pawnee thereafter by no later than thirty (30) days prior to the commencement
of the next Fiscal Year. The proposed initial operating budget and each
subsequent annual operating budget shall be subject to approval or disapproval
within thirty (30) days of submission to Pawnee, such approval not to be
unreasonably withheld. Pawnee may approve or disapprove of any item on such
proposed budget. The parties recognize that mutually agreeable adjustments may
be made to previously approved operating budgets from time to time during any
Fiscal Year, to reflect the impact of unforeseen circumstances, financial
constraints, or other events. Lakes agrees to keep Pawnee informed regarding any
items of revenue or expense that are reasonably anticipated to cause a material
change to the operating budget previously


                                      -21-

<PAGE>

approved by Pawnee. Lakes shall operate the Project and make expenditures in
connection therewith in accordance with such approved operating budget. In the
event Pawnee and Lakes are unable to resolve any disputed portions of the
proposed operating budget before commencement of the Fiscal Year, the undisputed
portions of the operating budget shall be deemed adopted and approved, and those
line items in dispute shall be determined by increasing the preceding Fiscal
Year's actual expense for the corresponding line items by an amount determined
by Lakes which does not exceed the increase in the Consumer Price Index for All
Urban Consumers published by the U.S. Bureau of Labor Statistics, U.S. City
Average, all items (1997-98=100), or any successor or replacement index thereto,
for the Fiscal Year prior to the Fiscal Year with respect to which adjustment to
the line item(s) is being calculated. The resulting adjusted operating budget
shall be deemed to be in effect for that Fiscal Year until such time as Pawnee
and Lakes have resolved the disputed items.

          (c) Lakes shall prepare an annual capital expenditure budget and
submit such budget to Pawnee for approval by Pawnee prior to the Commencement
Date. Annual capital expenditure budgets shall be submitted by Lakes to Pawnee
thereafter by no later than thirty (30) days prior to the commencement of each
succeeding Fiscal Year. The proposed capital expenditure budgets shall be
subject to approval or disapproval within thirty (30) days of submission to
Pawnee for approval, such approval not to be unreasonably withheld. Pawnee may
approve or disapprove of any item on such proposed budget. The parties recognize
that mutually agreeable adjustments may be made to previously approved capital
expenditure budgets from time to time during any budget year, to reflect the
impact of unforeseen circumstances, financial constraints, or other events.
Lakes agrees to keep Pawnee informed and obtain Pawnee's approval regarding any
projects or expenditures that are reasonably anticipated to cause a material
change to the capital expenditure budget previously approved by Pawnee. Lakes
shall make capital expenditures in accordance with such approved capital
expenditure budget.

     5.2 Intentionally omitted.

     5.3 Minimum Guaranteed Monthly Payments.

          (a) During the term of this Management Agreement, provided that the
Commencement Date has occurred, the Project shall, subject to the provisions of
Section 5.3(b) below, pay Pawnee One Hundred Thousand Dollars ($100,000) per
month (the "Minimum Guaranteed Monthly Payment"), beginning on the Commencement
Date and continuing for the remainder of the term of the Management Agreement.
The Minimum Guaranteed Monthly Payment shall be payable to Pawnee in arrears on
the twentieth (20th) day of each calendar month following the month in which the
Commencement Date occurs, which payment shall have priority over the Operating
Note, any obligations to repay funding provided by any third party lender in
connection with financing the development, construction equipping of the Project
Facilities, and payment of Lakes' compensation. If the Commencement Date is a
date other than the first day of a calendar month, the first payment will be
prorated from the Commencement Date to the end of the month. The Minimum
Guaranteed Monthly Payment shall be prorated if gaming is conducted at the


                                      -22-

<PAGE>

Gaming Facility for any other partial months.

          (b) Minimum Guaranteed Monthly Payments shall be deducted from any
disbursements of Net Total Revenues received by Pawnee under Section 5.5 hereof
in any given month; provided, however, that if the Net Total Revenues in a given
month are less than $100,000, Lakes shall advance the funds necessary to
compensate for the deficiency from its own funds (the "Minimum Guaranteed
Payment Advances", which advances shall not accrue interest but shall be
evidenced by an Operating Note in a form agreed to by Pawnee and Lakes), and
provided further that the Minimum Guaranteed Monthly Payments shall be reduced
to $10,000 per month for the remaining months in a Fiscal Year after Pawnee has
received in such Fiscal Year Total Net Revenue distributions of $1,200,000.
Lakes shall be entitled to recoup any Minimum Guaranteed Payment Advances made
under this subsection from the Net Total Revenues of the Project in succeeding
months during the term hereof, as provided in Section 5.5 hereof (and any
amounts outstanding on account of Minimum Guaranteed Payment Advances at the end
of the term of this Management Agreement shall be immediately due and payable by
Pawnee). In no event shall this recoupment payment for Minimum Guaranteed
Payment Advances result in Pawnee receiving less than its Minimum Guaranteed
Monthly Payment in any month, and in no event shall Lakes be allowed or entitled
to interest on any Minimum Guaranteed Payment Advances. Minimum Guaranteed
Monthly Payments shall be prorated with respect to any months (or portions
thereof) that Class II Gaming or Class III Gaming is suspended or terminated at
the Gaming Facility, and no Minimum Guaranteed Monthly Payments shall be
required with respect to any months that no Class II Gaming or Class III Gaming
is conducted at the Gaming Facility or accrue subsequent to termination of this
Management Agreement.

          (c) Any obligations owing by Pawnee under the Operating Note shall be
repaid solely as a Limited Recourse obligation of Pawnee without any other
liability or guarantee on the part of Pawnee. Except for the Minimum Guaranteed
Monthly Payment to Pawnee, repayment of the Operating Note obligations shall
have first priority on any Net Gaming and Net Ancillary Revenues generated by
the Project. Pawnee agrees to grant to Lakes a first priority and perfected
security interest, including a Dominion Account arrangement pursuant to the
Dominion Account Agreement (in a form consistent with the terms of this
Management Agreement), on any Net Gaming and Net Ancillary Revenues of the
Project in order to secure repayment of the Operating Note, and such Operating
Note shall also be secured on a first priority and perfected basis by any
Furnishings and Equipment pursuant to the Security Agreement and by first
priority liens in the additional recourse assets described in the definition of
"Limited Recourse."

     5.4 Daily and Monthly Statements. Lakes shall furnish to Pawnee's
designated representative financial statements identifying for each day the
Gross Gaming Revenues attributable to the Enterprise's Class II and/or Class III
Gaming on each day that such reports are normally available. Within fifteen (15)
days after the end of each calendar month, Lakes shall provide verifiable
financial statements in accordance with GAAP to Pawnee and the Gaming Commission
covering the preceding month's operations of the Enterprise, including operating
statements, balance sheets, income statements and statements reflecting the
amounts computed to be distributed in accordance with Section 5.5 hereof.


                                      -23-

<PAGE>

     5.5 Distribution of Net Total Revenues.

          (a) All Net Total Revenues shall be disbursed on a monthly basis as
set forth below, paid on the twentieth day of each calendar month for the
preceding month. Such Net Total Revenues shall be disbursed from the Project
Bank Account(s) to the extent available for payment of the following accounts in
the following order of priority:

          (i)  The Minimum Guaranteed Monthly Payment described in Section 5.3
               hereof;

          (ii) All outstanding Minimum Guaranteed Payment Advances and Working
               Capital Advances (and accrued interest thereon) or any other
               amounts owing to Lakes under the Operating Note;

          (iii) Current principal, interest and any other payments due on any
               obligations to repay funding provided by any third party lender
               in connection with financing the development, construction, and
               equipping of the Project Facilities,

          (iv) Management compensation due Lakes under Section 5.5(b) below;
               provide that if the distribution under this subsection in any
               month is insufficient to fund such payment in full, the unpaid
               amount shall be deferred and paid under subsection (vi) below;

          (v)  Any amounts deferred (including interest on any deferred
               management compensation which interest shall accrue, from the
               date the management compensation is deferred, at the greater of
               the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or
               any successor bank) plus two percent (2%) or the same rate for
               the financing provided by any third party lender for the
               development, construction and equipping of the Project
               Facilities) under subsections (ii), (iii), (and (iv) above;

          (vi) Any monthly capital replacement or other reserve contributions
               which have been created with the written approval of the Lakes
               and Pawnee;

          (vii) Any indemnification or other obligations then owing by Pawnee to
               Lakes under any Transaction Document and not paid as Costs of
               Gaming Operations or Costs of Ancillary Operations (provided
               Lakes has provided written notice to Pawnee that above amounts
               are owed under the Transaction Documents, and Pawnee has not
               disputed the same or such amounts have been determined to be
               owing through an arbitration proceeding under Article 10 hereof);
               and


                                      -24-

<PAGE>

          (viii) All remaining Net Total Revenues shall be disbursed to Pawnee
               at the same time the management compensation is paid to Lakes,
               subject to the rights of the Lakes under the Dominion Account
               Agreement upon the occurrence of a Material Breach by Pawnee or
               pursuant to the terms of the Operating Note.

          (b) As compensation for Lakes' management services hereunder, (i) in
the event that this Management Agreement is approved by the NIGC before Class II
and/or Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive thirty percent (30%) of Net Total Revenues for the
prior calendar month less any amounts earned by and due to a Lakes' Affiliate
for any development fees in connection with the Project, and (ii) in the event
that this Management Agreement is approved by the NIGC after Class II and/or
Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive thirty percent (30%) of Net Total Revenues for the
prior calendar month less any amounts due to a Lakes' Affiliate for any
consulting fees earned that month in connection with the Project under any
contract between Pawnee and the Lakes Affiliate still in effect at that time,
for so long as this Management Agreement shall remain in effect during the term
hereof and as provided for in this Management Agreement. Any amounts owing to
Lakes hereunder shall be Limited Recourse obligations of the Tribe and shall be
subject to the security provisions described in Section 5.3(c) hereof, including
the Dominion Account Agreement and Security Agreement.

          (c) Lakes, on behalf of the Project, is responsible for making the Net
Total Revenues disbursements to the appropriate party.

     5.6 Annual Audit. With respect to each Fiscal Year, Pawnee shall cause an
audit to be conducted by an independent certified public accountant from a Big
Five accounting firm with more than five (5) years experience in audits of
gaming resort operations selected and approved by Pawnee, and on or before one
hundred twenty (120) days after the end of such year, such accounting firm shall
issue a report with financial statements in accordance with GAAP with respect to
the preceding Fiscal Year (or portion of the year in the case of the first year)
operations of the Project, including operating statements, balance sheets,
income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof, such report to be approved at
an annual meeting to be held at a location mutually agreed upon by the parties.
In addition, upon termination of this Management Agreement in accordance with
its terms, such accounting firm shall conduct an audit, and on or before ninety
(90) days after the termination date, shall issue a report setting forth the
same information as is required in the annual report, in each case with respect
to the portion of the Fiscal Year ending on the termination date. If the Net
Total Revenues or other amounts paid to Pawnee or Lakes in accordance with
Section 5.5 above for the relevant period are different from the amount which
should have been paid to such party based on the report prepared by the
accounting firm and based upon the provisions of this Management Agreement, then
to the extent either party received an overpayment, it shall repay and deposit
the amount of such overpayment into the bank account referenced in Section 2.8
(a) hereof within


                                      -25-

<PAGE>

twenty-five (25) days of the receipt by such party of the accountant's report,
and to the extent either party received an underpayment, it shall receive a
distribution from the bank account referenced in Section 2.8 (a) hereof of the
amount of such underpayment within ten (10) days of the receipt by such party of
the accountant's report. Lakes may make adjustment to future payments to correct
a discrepancy if required distributions are not made.

     5.7 Advances for Working Capital. Where amounts in bank accounts
established pursuant to Section 2.8 hereof are insufficient to meet Costs of
Gaming Operation or Costs of Ancillary Operation, during the first six (6)
months after the Commencement Date, Lakes shall advance monies to the Project
sufficient to meet Costs of Gaming Operations and Costs of Ancillary Operations.
Thereafter, Pawnee shall advance such monies to the Project sufficient to meet
Costs of Gaming Operations and Costs of Ancillary Operations. If Lakes makes any
advances hereunder ("Working Capital Advances", which advances shall be
evidenced by an Operating Note substantially in a form to be agreed to by Pawnee
and Lakes and shall accrue interest, from the date the advances are made, at the
greater of the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or any
successor bank) plus two percent (2%) or the same rate for the financing
provided by any third party lender for the development, construction and
equipping of the Project Facilities), Lakes shall be repaid as provided in
Section 5.5 hereof (and any amounts outstanding on account of Working Capital
Advances at the end of the term of this Management Agreement shall be
immediately due and payable by Pawnee). Any Working Capital Advances shall be
Limited Recourse obligations of Pawnee and shall be subject to the security
provisions described in Section 5.3(c) hereof, including the Dominion Account
Agreement and Security Agreement. Any advances made by Pawnee hereunder shall
accrue interest at the same rate as applies to Working Capital Advances made by
Lakes.

     5.8 Development and Construction Cost Repayment. The maximum dollar amount
for repayment of development and construction costs for the Project Facilities
shall be Two Hundred Million Dollars ($200,000,000). Subject to any applicable
Legal Requirements, the parties may increase the maximum repayment amount by
mutual written agreement.

                                    ARTICLE 6
                           TERMINATION/MATERIAL BREACH

     6.1 Termination for Cause. Subject to the provisions of Section 8.2, either
party may terminate this Management Agreement if the other party commits or
allows to be committed a Material Breach (as hereinafter defined) of this
Management Agreement and fails to cure such breach within thirty (30) calendar
days after receipt of a written notice from the non-breaching party identifying
the nature of the Material Breach in specific detail and its intention to
terminate this Management Agreement; provided, however, that if the nature of
such breach (but specifically excluding breaches curable by the payment of
money) is such that it is not possible to cure such breach within thirty (30)
days, such thirty-day period shall be extended for so long as the breaching
party shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60)


                                      -26-

<PAGE>

days, and provided further that Lakes shall not be entitled to an extension of
such thirty-day cure period in the event of theft, embezzlement or willful
misconduct with respect to the handling of money or other property. Termination
is not an exclusive remedy for claims of a Material Breach, and the parties
shall be entitled to other rights and remedies as may be available pursuant to
the terms hereof or under applicable law. For purposes of this Management
Agreement, a "Material Breach" is any of the following circumstances: (i)
failure of Lakes to provide Pawnee with the monthly Minimum Guaranteed Monthly
Payments pursuant to Section 5.3 hereof, unless suspended pursuant to the terms
of Sections 5.3(b) or 6.4(a) hereof; (ii) material failure of either party to
perform a material obligation hereunder, or any document or agreement related
hereto for reasons not excused under Section 9.6 hereof (Force Majeure); (iii)
if any of Lakes' employees commits theft, embezzlement or crime of moral
turpitude and if, after knowledge of such act or, if disputed, after
determination by arbitration under Article 10, Lakes does not remove such
employee from connection with Class II and/or Class III Gaming operations of the
Project; (iv) default under this Management Agreement or the Operating Note, or
any document or agreement related hereto or thereto, and any default by either
Pawnee TDC or the Pawnee Nation under that certain Tribal Agreement dated
January 12, 2005executed by such parties in favor of Lakes; or (v) any
representation or warranty made pursuant to Section 9.11 or 9.12 hereof proves
to be knowingly false or erroneous in any material way when made or shall fail
to be true and correct in all material respect at any time during the term of
this Management Agreement. Any final notice of termination hereunder shall be in
writing detailing the reason the party considers the Material Breach not to be
cured and must be delivered to the other party before such termination becomes
effective.

     6.2 Mutual Consent. This Management Agreement may be terminated at any time
upon the mutual written consent and approval of the parties.

     6.3 Involuntary Termination Due to Changes in Law or Tribal-State Compact.
The parties hereby agree to use their best efforts to conduct Class II and/or
Class III Gaming activities in accordance with this Management Agreement and to
ensure that such activities and this Management Agreement conform to and comply
with all applicable laws and a Tribal-State Compact. Pawnee agrees that, except
as may be required by federal law, neither Pawnee, Pawnee TDC nor Pawnee Nation
will enact or pass any new ordinances subsequent to the execution of this
Management Agreement that would materially impair the rights of Lakes under this
Management Agreement. Pawnee covenants and affirmatively states that neither
Pawnee, Pawnee TDC nor Pawnee Nation has or will impose any tax, fee or
assessment on Lakes, the Project or its Project Facilities, this Management
Agreement, the Operating Note and any related security documents and instruments
described herein other than the fees and assessments described in "Costs of
Gaming Operation." In the event of any change in state or federal laws that
results in a final determination by the Secretary, the National Indian Gaming
Commission, or a court of competent jurisdiction that this Management Agreement
is unlawful, Pawnee and Lakes shall use their respective good faith best efforts
to amend this Management Agreement in a mutually satisfactory manner which will
comply with the change in applicable laws and not materially change the rights,
duties and obligations of the parties hereunder. In the event such amendment can
not be legally effected following exhaustion of all such good faith best efforts
(including the lapse of all legal proceedings and appeal periods without
favorable results) performance of this Management Agreement shall be


                                      -27-

<PAGE>

automatically suspended effective upon the date that performance of this
Management Agreement becomes unlawful by such final determination, and either
party shall have the right to terminate such suspended Management Agreement
(except the Notes and Security Provisions, as defined in Section 6.4 (b)) upon
written notice to the other party.

     6.4 Other Rights upon Material Breach; Ownership of Assets and Repayment of
Obligations on Termination.

          (a) Upon the occurrence of any Material Breach or upon the occurrence
of any event or circumstance which with the giving of notice or the passage of
time or both would constitute a Material Breach, Lakes may suspend its
obligation to make any Minimum Guaranteed Payment Advances, until such time as
the default has been cured. Upon the occurrence of any Material Breach, Lakes
may suspend its obligation to make any Working Capital Advances until such time
as the Material Breach has been cured.

          (b) Upon termination, except in connection with Lakes' security
interests in the Net Total Revenues of the Project pursuant to Pawnee's Limited
Recourse obligations under the Transaction Documents (if not yet satisfied), or
any other security interests or liens in any Furnishings and Equipment and other
collateral described in the Transaction Documents, Pawnee will retain full
ownership of the Project Facilities, Plans and Specifications therefor, and the
Project and its assets; and Lakes will have no rights to the Project and its
assets or the Project Facilities (or any equipment, books and records, materials
or furnishings therein that were purchased with Costs of Gaming Operations or
Costs of Ancillary Operations) except as to the security interests and liens
recited above or as may be established otherwise by a proceeding pursuant to
Article 10 hereof. In the event of any termination (whether voluntary or
involuntary), Pawnee shall continue to have the obligation to pay unpaid
principal and interest and other amounts due under this Management Agreement,
the Operating Note or any Transaction Document executed in connection herewith,
together with any unpaid compensation owed to Lakes under Section 5.5(b) hereof
(if not yet satisfied), each of which shall become due and payable on such
termination date. Any and all obligations and provisions contained in this
Management Agreement concerning indemnity obligations or repayment of the
Operating Note, and the security therefore, including the Security Agreement and
Dominion Account Agreement, together with any unpaid compensation owed to Lakes
under Section 5.5(b) hereof and any other amounts owing to Lakes under this
Management Agreement or any other Transaction Documents and the terms and
provisions set forth in Articles 9 and 10 hereof excluding Sections 9.21 and
9.22 (collectively, the "Notes and Security Provisions"), shall survive
termination of this Management Agreement. In the event of termination for any
reason, and subject to its rights under the dispute resolution provisions under
Article 10 herein, Lakes shall cooperate with Pawnee in the orderly transition
of management of the Project, and shall provide Pawnee or its designee with any
and all books, records, documents, contracts, and all other information relating
to the Project Facilities or the Project, whether such information shall be in
electronic, hard copy or any other form. If at the time of termination Pawnee's
obligations under the Transaction Documents remain unsatisfied in full, then
Pawnee may either pay the obligations in full, or to the extent economically
feasible (as hereinafter defined), Pawnee agrees to continue to operate and
maintain the Project Facilities in accordance with reasonable industry
standards, and as


                                      -28-

<PAGE>

to any portions of the Project Facilities that are no longer economically
feasible to operate, Pawnee and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such liquidation proceeds shall be excluded from Net Total Revenues for purposes
of calculating the management compensation of any Replacement whether under
Section 5.5(b) hereof or otherwise; and Pawnee shall keep the Project Facilities
and all related assets insured for the coverages and amounts required by this
Management Agreement and name Lakes as an additional insured, loss payee and
mortgagee, as applicable and provide evidence thereof upon request until all
amounts owing to Lakes have been paid in full, and if any portion of the Project
assets are damaged by any casualty and it is economically feasible for Pawnee to
continue to operate such damaged assets, then Pawnee shall repair and
reconstruct such operations that were damaged and are to be continued, and any
excess insurance proceeds that are not used to repair and reconstruct the
applicable damaged Project assets shall be deposited into the Dominion Account
and disbursed in accordance with the same terms and provisions applicable to
Gross Total Revenues, provided however that such excess proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise. As used herein and in Section 6.6(d) hereof, the term "economically
feasible" shall mean that the gross revenues derived from any applicable
operations is in excess of that needed to pay the Costs of Gaming Operations or
Costs of Ancillary Operations, as applicable to the operations in question.

          (c) Subject to the provisions of Section 6.1, in the event of
termination of this Management Agreement for any reason prior to the full
repayment to Lakes of any amounts owed to it by Pawnee under the Transaction
Documents, including without limitation, the Operating Note, Pawnee shall, as
promptly as reasonably possible, appoint a person or entity qualified to manage
the Project Facilities and operate the Project (the "Replacement") and use its
best efforts to obtain approvals of all required Governmental Authorities for
such Replacement, provided the obligation to continue to operate under Section
6.4(b) exists. Pawnee agrees to keep full and accurate financial records of
operations of the Project by such Replacement and to allow Lakes to audit such
records at reasonable times prior to full repayment to Lakes of any amounts owed
to it by Pawnee under the Transaction Documents, including without limitation,
the Operating Note, and that Pawnee's compliance with this paragraph shall not
preclude the Lakes from exercising any of its other rights and remedies
hereunder or any document or agreement related hereto, including, without
limitation, rights under the Operating Note and the Dominion Account Agreement.

     6.5 Notice of Termination. In the event of a proposed termination pursuant
to this Article, Pawnee shall provide notice of the termination to the NIGC or
other appropriate Governmental Authorities within ten (10) days after the
termination.

     6.6 Cessation of either Class II or Class III Gaming at the Gaming
Facility.

          (a) If, during the term of this Management Agreement, either Class II
or Class III Gaming (once legally permitted at the Gaming Facility) cannot be
lawfully conducted at the


                                      -29-

<PAGE>

Gaming Facility by reason of the application of any legislation or court or
administrative agency order or decree adopted or issued by a governmental entity
having the authority to do so, Lakes shall, within sixty (60) days after such
legislation, order or decree becomes effective, elect to:

               (i) retain Lakes' interest in this Management Agreement and
          suspend both Class II and Class III Gaming operations until such date
          on which both Class II and Class III Gaming at the Gaming Facility
          becomes lawful (during which period the term of the Management
          Agreement will be tolled until both Class II and Class III Gaming at
          the Gaming Facility becomes lawful or the parties mutually agreed
          otherwise, and the period of cessation shall not be deemed to have
          been part of the term of the Management Agreement and the term shall
          be extended by the length of time of the cessation); or

               (ii) retain Lakes' interest in this Management Agreement, suspend
          Class II and Class III gaming operations until such date on which both
          Class II and Class III Gaming at the Gaming Facility becomes lawful
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming at the Gaming Facility becomes lawful or
          the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and with the prior approval of Pawnee, which approval
          shall not be unreasonably withheld, use the Gaming Facility for any
          other lawful purpose pursuant to a use agreement containing terms
          reasonably acceptable to Lakes and Pawnee; or

               (iii) terminate both Class II and Class III Gaming operations and
          terminate this Management Agreement.

          Lakes shall give Pawnee written notice of Lakes' election within such
     sixty-day period.

          (b) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6 (a)(i) or (ii) above, Lakes shall have the right
(but not the obligation) to commence either Class II or Class III Gaming
operations within sixty (60) days after the date on which both Class II and
Class III Gaming becomes lawful. Lakes may exercise such right by giving Pawnee
written notice of such exercise within thirty (30) days after the date on which
both Class II and Class III Gaming becomes lawful. Any reasonable payment to any
third party made during the period during which either Class II or Class III
Gaming is unlawful to preserve or eliminate any leasehold or purchase contract
rights of the Gaming Facility shall be paid by Lakes from Project funds after
mutual approval of Pawnee and Lakes as Costs of Gaming Operation or Cost of
Ancillary Operations, as applicable, and reimbursed after both Class II and
Class III Gaming is recommenced.

          (c) If, during the term of this Management Agreement, the Gaming
Facility is damaged by casualty or other occurrence to the extent, as reasonably
determined by Lakes, that either Class II or Class III Gaming cannot be
conducted at the Gaming Facility, Lakes shall elect


                                      -30-

<PAGE>

to:

               (i) retain Lakes' interest in this Management Agreement pending
          repair or reconstruction of the Gaming Facility, suspend all gaming
          operations pending the repair or reconstruction of the Gaming Facility
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming can be conducted at the Gaming Facility
          or the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and arrange for such repair or reconstruction in the
          manner described in this Section 6.6; or

               (ii) terminate this Management Agreement, such termination to be
          effective on the sixtieth (60th) day after written notice of
          termination shall have been delivered to Pawnee.

          Lakes shall give Pawnee written notice of Lakes' election under
subsection within sixty (60) days after such casualty or occurrence.

          (d) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6(c)(i) above, Pawnee shall be obligated to make such
repairs or reconstruction as the Lakes shall reasonably determine should be made
to the Project Facilities (to the extent that insurance proceeds are available
or as otherwise mutually agreed by Pawnee and Lakes), and Lakes shall promptly
verify the amount of insurance proceeds available to pay the cost of repair or
reconstruction. If the Lakes elects to retain its interests under Section
6.6(c)(i) above, Lakes is hereby granted the authority to submit, adjust and
settle, on behalf of Pawnee, all insurance claims associated with the casualty
or occurrence; provided, however, that Lakes shall obtain Pawnee's prior written
consent (which consent shall not be unreasonably withheld) to any settlement.
Lakes shall provide copies of all settlement documents to Pawnee. If the Lakes
does not elect to retain its interest under Section 6.6(c)(i) above and if
Pawnee's obligations under the Transaction Documents are not yet satisfied,
then: (a) Pawnee shall have the authority to submit, adjust and settle all
insurance claims provided that any final settlement shall be with the prior
written consent of Lakes which will not be unreasonably withheld, and Pawnee
shall provide copies of all settlement documents to the Lakes; (b) to the extent
economically feasible (as defined in Section 6.4(b), Pawnee shall have the
obligation to continue to operate and maintain the Project Facilities and
Project in accordance with reasonable industry standards, and as to any portions
of the project Facilities and the Enterprise that are no longer economically
feasible to operate, Pawnee and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such liquidation proceeds shall be excluded from Net Total Revenues for purposes
of calculating the management compensation of any Replacement whether under
Section 5.5(b) hereof or otherwise; (c) Pawnee shall repair and reconstruct such
operations that were damaged and are to be continued; and (d) any excess
insurance proceeds that are not used to repair and reconstruct the applicable
damaged Project



                                      -31-

<PAGE>

assets shall be deposited into the Dominion Account and disbursed in accordance
with the same terms and provisions applicable to Gross Total Revenues, provided
however that such excess proceeds shall be excluded from Net Total Revenues for
purposes of calculating the management compensation of any Replacement whether
under Section 5.5(b) hereof or otherwise.

          (e) If Lakes elects to terminate this Management Agreement under this
Section 6.6, the provisions of Section 6.4 above shall apply.

     6.7 Renewal Option.

          The parties by mutual agreement may decide to renew or extend the
Management Agreement of this Management Agreement. Any such renewal or extension
shall only become effective upon approval by the NIGC and appropriate licensing
by the Gaming Commission.

     6.8 Buy-out Option.

          Following thirty-six (36) months of continuous operation of the
Project's gaming operations by Lakes, Pawnee shall have the option to buy out
the Lakes' remaining rights under this Management Agreement for an amount equal
to the present value, using a discount rate which is the greater of (i) two
percent (2%) above the prime interest rate of Chase Manhattan Bank U.S.A., N.A.
(or any successor bank) or (ii) or the same rate for the financing provided by
any third party lender for the development, construction and equipping of the
Project Facilities of the Remaining Management Fees (as hereinafter defined).
The term "Remaining Management Fees" shall mean the total monthly compensation
which would have been payable to Lakes under Section 5.5(b) hereof for the
balance of the term of this Agreement, assuming that such monthly compensation
would be the average of the compensation paid to Lakes during the most recent
operating twelve months prior to such buy out. Notwithstanding the foregoing,
Pawnee buy-out option rights may only be exercised after the first four years of
the Project's gaming operation if the final cost of developing the Project
Facilities exceeds twenty six million dollars ($26,000,000).

     6.9 Cumulative Remedies.

          All rights or remedies of either Pawnee or Lakes under this Management
Agreement or any other Transaction Documents shall be cumulative and may be
exercised singularly in any order or concurrently, at such party's respective
option, and the exerciser or enforcement of any such right or remedy shall
neither be a condition to nor bar to the exercise or enforcement of any other
right or remedy.

                                    ARTICLE 7
                              RELEASE AND INDEMNITY

     7.1 Third-Party Claims. Except for claims resulting from the other party's
own gross negligence or willful or criminal misconduct, neither party shall be
entitled to recover from, and


                                      -32-

<PAGE>

expressly releases, the other party, its agents, directors, officers and
employees, from or for any third-party damages, claims, causes of action, losses
and/or expenses of whatever kind or nature, including attorneys' fees and
expenses incurred in defending such claims in connection with the lawful
operation of the Project Facilities and Project in accordance with the terms of
this Management Agreement; and such claims, damages, losses or expenses shall be
considered either Costs of Gaming Operation or Costs of Ancillary Operations,
depending on the circumstances and nature of the claim, payable from the bank
accounts established pursuant to Section 2.8(a) hereof.

     7.2 Indemnity from Lakes. Notwithstanding Section 7.1, Lakes shall
indemnify and hold Pawnee, its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Lakes, its officers and directors in connection with
Lakes' performance of this Management Agreement, and no such damages, losses or
expenses shall be paid from the bank accounts established pursuant to Section
2.8 (a) hereof, nor shall such losses or expenses be considered Costs of Gaming
Operations or Costs of Ancillary Operations.

     7.3 Indemnity from Pawnee. Notwithstanding Section 7.1, Pawnee shall upon
request indemnify and hold Lakes, its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Pawnee, its officers, directors, or tribal government
employees, in connection with the Pawnee's performance of this Management
Agreement, and no such damages, losses or expenses shall be considered Costs of
Gaming Operations or Costs of Ancillary Operations.

     7.4 Indemnity Against Unauthorized Debt and Liabilities. The parties
expressly agree that neither this Management Agreement nor its performance
creates or implies a partnership between the parties or authorizes either party
to act as agent for the other except to the extent expressly provided herein.
Lakes hereby agrees to indemnify and hold Pawnee harmless from any third-party
claims, actions and liabilities, including reasonable attorneys' fees on account
of obligations or debts of Lakes that Lakes is not authorized to undertake as
agent for Pawnee pursuant to the terms of this Management Agreement. Pawnee
likewise agrees to indemnify and hold Lakes harmless from any third-party
claims, actions and liabilities on account of any of the separate obligations or
debts of Pawnee, Pawnee TDC or Pawnee Nation that are not authorized Costs of
Gaming Operations or Costs of Ancillary Operations pursuant to this Management
Agreement.

     7.5 Indemnity Agreement. In connection with any indemnity obligations
hereunder, the parties agree they will comply with the terms and conditions set
forth in the Indemnity Agreement in a form agreed to by Pawnee and Lakes.

                                    ARTICLE 8
                               PARTIES IN INTEREST


                                      -33-

<PAGE>

     8.1 Payment of Fees and Submission of Information for Background
Investigations.

     Upon execution of this Management Agreement, Lakes shall pay the fees
required by federal and tribal regulations for background investigations for the
"Parties in Interest" as defined herein, and it shall submit the information
required by this Section in duplicate to the National Indian Gaming Commission
and the Gaming Commission and update such information at any time that changes
occur in prior submissions so as to allow complete background investigations. In
no event shall the cost of background investigations under this Section relating
to Gaming Commission regulations exceed $10,000 per individual without the
mutual consent of the parties, which consent shall not be unreasonably be
withheld.

          (a) As used in this Section 8.1, the term, "Parties in Interest"
includes any person or entity with a financial interest in, or having management
responsibility for, this Management Agreement or for which background
investigations are required by 25 C.F.R. Part 537, and any amendments thereto.

          (b) Lakes shall require sufficient information and identification from
each "Party in Interest" to perform a background investigation for the purpose
of determining the suitability of such persons for employment in a Class II
and/or Class III Gaming operation, including, at a minimum, the information
required by the National Indian Gaming Commission as set forth in 25 C.F.R. Part
537.

          (c) Without limiting the foregoing, Lakes shall obtain a current set
of fingerprints on each person for whom background investigations are required
by the Gaming Commission and the National Indian Gaming Commission, using forms
supplied by the National Indian Gaming Commission and/or the Gaming Commission,
which shall be referred to the Federal Bureau of Investigation (FBI) Fingerprint
Identification Division or other law enforcement agency designated by the Gaming
Commission.

          (d) The parties hereby agree that a listing of all "Parties in
Interest" as defined in Section 8.1 (a) above shall be submitted to the NIGC.
All such "Parties in Interest", as such listing shall be supplemented from time
to time, shall be required to furnish the information required by this Section
8.1 prior to obtaining such interest. All necessary Governmental Authorities
must approve any change in the "Parties in Interest". Any change of a person
listed as a one of the "Parties in Interest" shall not constitute a change in
persons with a financial interest in or management responsibility for a
management contract.

     8.2 Removal; Divestiture. Should the Gaming Commission or the National
Indian Gaming Commission, by agency action, find that any individual with a
"direct or indirect financial interest" in this Management Agreement (as defined
in 25 C.F.R. Section 502.17, and any amendments thereto) whose prior activities,
criminal record, if any, or reputation, habits, and associations pose a threat
to the public interest, or the tribal interest, or the effective regulation of
gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices and methods and activities in the


                                      -34-

<PAGE>

conduct of gaming or the carrying on of related business and financial
arrangements, or should such agency revoke the license of such person, and
should either agency notify Lakes or Pawnee of such finding or revocation, then
Lakes shall require such individual to divest his or her interest in this
Management Agreement and shall immediately remove such person from all
association with gaming operations under this Management Agreement upon receipt
of such notice, provided that any individual subject to such removal/divesture
shall be permitted to be revested and able to associate with gaming operations
in the event the agency action is reversed upon agency administrative or
judicial appeal. In addition, if any individual with "direct or indirect
financial interest" in this Management Agreement (as defined in 25 C.F.R.
Section 502.17, and any amendments thereto): (a) has been or is subsequently
convicted of a felony relating to gaming, (b) knowingly or willfully provided
materially false statements to Pawnee, the Gaming Commission or the National
Indian Gaming Commission, or refused to respond to questions from either of such
agencies, or (c) attempts to unduly interfere or unduly influence for his or her
gain or advantage any decision or process of tribal government relating to Class
II and/or Class III Gaming and if Lakes becomes aware of such conflicts or
prohibited actions, then Lakes shall notify Pawnee of such event and shall
immediately take all necessary steps to cause such individual to divest his or
her interest in Lakes. Any disputed Gaming Commission action potentially
involving removal/divestiture of Lakes is subject to the provisions of Article
10 and other applicable law or regulations.

                                    ARTICLE 9
                                  MISCELLANEOUS

     9.1 Assignment and Subcontractors. The rights and obligations under this
Management Agreement shall not be assigned or subcontracted by any party without
the prior written consent of the other party and without first obtaining prior
approval by the National Indian Gaming Commission or the BIA, if applicable, and
any other necessary regulatory approvals. However, Pawnee reserves the right to
assign its rights and obligations under this Management Agreement to a tribally
chartered entity that it wholly owns and controls, and the Lakes reserves the
right to assign its rights and obligations under this Management Agreement to a
wholly owned subsidiary provided that the original Lakes hereunder, or an
affiliated entity reasonably satisfactory to Pawnee, remains obligated hereunder
by means of a guaranty or other accommodation reasonably satisfactory to Pawnee,
and further provided that Lakes shall have received prior approval from the
National Indian Gaming Commission and any other necessary regulatory approvals.
Any assigning party engaging in a permitted assignment described above shall and
shall cause its assignee to execute and deliver to the other party such
assignment and assumption agreements together with evidence of the due
authorization, execution, delivery and enforceability of such assignment
documents as may be reasonably requested. Other than as expressly provided
herein or in Section 9.2 below, any attempted assignment or subcontracting
without such consent and approval shall be void. Approval of any assignment or
subcontract to any new party must be preceded by a complete background
investigation of the new party as required by Section 8.1. Subject to the
preceding requirements, this Management Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors and
assigns.

     9.2 Change of Control in Ownership Interest. Any Change of Control (as
defined herein)


                                      -35-

<PAGE>

in Lakes shall require prior written consent of Pawnee and be subject to Legal
Requirements, or this Management Agreement shall be terminated. For purposes of
this Management Agreement, a "Change of Control" means the acquisition by any
person or affiliated group of persons not presently members of Lakes of
beneficial ownership of 51% or more of membership interest in Lakes.

     9.3 Notices. Any notice, consent or any other communication permitted or
required by this Management Agreement shall be in writing and shall be effective
on the date sent and shall be delivered by personal service, via telecopier with
reasonable evidence of transmission, express delivery or by certified or
registered mail, postage prepaid, return receipt requested, and, until written
notice of a new address or addresses is given, shall be addressed as follows:

     If to the Tribe:   Pawnee Chilocco Gaming Corporation
                        871 Little D. Drive, Building 68
                        P.O. Box 280
                        Pawnee, OK 74058,
                        Attention: Chairman

     With a copy to:    David J. Ketelsleger, Esq.
                        McAfee & Taft
                        Two Leadership Square
                        Tenth Floor
                        211 North Robinson
                        Oklahoma City, OK 73102-7103

     If to the Lakes:   Lakes Pawnee Management, LLC
                        130 Cheshire Lane
                        Minnetonka, MN 55305
                        Attention: Timothy J. Cope

     With a copy to:    Kevin C. Quigley, Esq.
                        Johnson Hamilton Quigley Twait & Foley PLC
                        W1450 First National Bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

     and                Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140

     Copies of any notices shall be given to the Gaming Commission.


                                      -36-

<PAGE>

     9.4 Amendments. This Management Agreement may be amended only by written
instrument duly executed by all of the parties hereto and with any and all
necessary regulatory approvals previously obtained.

     9.5 Counterparts. This Management Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one and the same agreement.

     9.6 Force Majeure. No party shall be in default in performance due
hereunder if such failure or performance is due to causes beyond its reasonable
control, including acts of God, war, terrorism, fires, floods, or accidents
causing damage to or destruction of the Project Facilities or property necessary
to operate the Facility, or any other causes, contingencies, or circumstances
not subject to its reasonable control which prevent or hinder performance of
this Management Agreement; provided, however, that the foregoing shall not
excuse any obligations of Pawnee or its Affiliates to make monetary payments to
Lakes as and when required hereunder or in any related document or agreement.

     9.7 Time is Material. The parties agree that time is of the essence and the
time and schedule requirements set forth in this Management Agreement are
material terms of this Management Agreement.

     9.8 Further Assurances. The parties hereto agree to do all acts and deliver
necessary documents as shall from time to time be reasonably required to carry
out the terms and provisions of this Management Agreement.

     9.9 Severability. In the event that any provision of this Management
Agreement is, by final order of a court of competent jurisdiction or Government
Authority, held to be illegal or void, the validity of the remaining portions of
the Management Agreement shall be enforced as if the Management Agreement did
not contain such illegal or void clauses or provisions, and the parties shall
use their best efforts to negotiate an amendment to this Management Agreement
which will comply with the judicial order and maintain the originally
contemplated rights, duties and obligations of the parties hereunder.

     9.10 Sovereign Immunity. Except for the Resolution of Limited Waiver
attached hereto as EXHIBIT B and incorporated herein by reference, nothing in
this Management Agreement shall be deemed or construed to constitute a waiver of
sovereign immunity of Pawnee and the only applicable waivers of sovereign
immunity shall be those expressly provided and executed by the Pawnees duly
authorized representative and substantially conforming to the form as approved
by the parties. The parties agree that they will not amend or alter the
Resolution of Limited Waiver which will in any way lessen the rights of any
party as set forth in the Resolution of Limited Waiver, including without
limitation the covenant therein of Pawnee to preserve its effective terms in the
event of future changes in its legal status or governance. This Section 9.10
shall survive termination of this Management Agreement, regardless of the reason
for the termination.


                                      -37-

<PAGE>

     9.11 Representations and Warranties of Lakes. The Lakes hereby represents
and warrants as follows:

          (a) This Management Agreement and all other agreements contemplated
     hereby have been duly authorized, executed and delivered by Lakes and, when
     approved by necessary Governmental Authorities as set forth (where
     applicable), will constitute a valid and binding obligation, enforceable
     against Lakes in accordance with its terms.

          (b) The execution and delivery of this Management Agreement and all
     other agreements contemplated hereby, the performance by Lakes of its
     obligations hereunder or thereunder and the consummation by Lakes of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Lakes or any of its affiliated companies is a party or any law,
     regulation, rule or ordinance or any order, judgment or decree of any
     federal, state, tribal or local court or require any regulatory approval
     beyond those contemplated herein.

          (c) Lakes has the full legal right, power and authority and has taken
     all action necessary to enter into this Management Agreement, to perform
     its obligations hereunder, and to consummate all other transactions
     contemplated by this Management Agreement.

     9.12 Representations and Warranties of Pawnee. Pawnee hereby represents and
warrants as follows:

          (a) Pawnee is a wholly-owned subsidiary of Pawnee TDC, established to
     own and operate the Project Facilities and the Project. Pawnee and Pawnee
     TDC are created under the laws of and are governmental instruments of the
     Pawnee Nation, a duly organized and recognized Indian tribe under the laws
     of Pawnee Nation and the United States.

          (b) Pawnee has full legal right, power and authority under the laws
     for the Pawnee Nation and has taken all official action necessary (i) to
     enter into this Management Agreement and authorize Pawnee to execute and
     deliver this Management Agreement, the Operating Note, Dominion Account
     Agreement, Security Agreement, Indemnity Agreement and any and all other
     documents and agreements related thereto or contemplated thereby
     (collectively, the "Transaction Documents"), (ii) to perform its
     obligations hereunder and thereunder, and (iii) to consummate all other
     transactions contemplated by this Management Agreement and the other
     Transaction Documents.

          (c) This Management Agreement, the Operating Note, and the other
     Transaction Documents, when executed and delivered by Pawnee and approved
     by necessary Governmental Authorities, will constitute valid, binding and
     perfected obligations, enforceable against Pawnee in accordance with their
     terms.

          (d) The execution and delivery of this Management Agreement, the
     Operating Note, and the other Transaction Documents, the performance by
     Pawnee of its obligations


                                      -38-

<PAGE>

     hereunder and the consummation by Pawnee of the transactions contemplated
     hereby will not violate any contract or agreement to which Pawnee, Pawnee
     TDC or Pawnee Nation is a party, law, regulation, rule or ordinance or any
     order judgment or decree of any federal, state, tribal or local court, or
     require any approval by Governmental Authorities beyond those contemplated
     herein.

          (e) Neither Lakes, the Project, the Project Facilities nor the
     transaction(s) between the parties contemplated by this Management
     Agreement, the Operating Note, and any related security documents and
     instruments described herein are now, or at any time during the term of
     this Management Agreement will be, subject to any tribal tax of any sort
     other than (i) reasonable pass-through taxes on Project patron which are
     consistent with gaming resort industry practices, and (ii) the fees and
     assessments described in the definition of "Costs of Operations."

          (f) The Pawnee Nation is legally permitted to conduct Class II Gaming
     (and Class III Gaming in the event of a Compact) activities in the State
     under all Legal Requirements, and the Gaming Facility Site for the Project
     constitutes "Indian lands" upon which the Pawnee Nation may legally conduct
     gaming under IGRA.

          (g) None of Pawnee, Pawnee TDC, Pawnee Nation or any of their
     Affiliates has enacted any law, ordinance, rule or regulation impairing the
     rights or obligations of Pawnee or Lakes under this Management Agreement or
     under any Transaction Documents contemplated hereby.

          (h) Prior to the Commencement Date, and except as permitted by Section
     2.23 hereof, Pawnee will not cause or voluntarily permit any lien or
     encumbrance to be created on the Project Facilities or the Project's Gaming
     Facility Site.

          (i) The Pawnee Nation has entered into an agreement with Lakes or its
     Affiliate that all gaming and related project facilities will be owned and
     operated by Pawnee or another subsidiary of Pawnee TDC and granting Lakes
     or its Affiliate the first right of refusal to manage any gaming projects
     owned and operated by Pawnee or another subsidiary of Pawnee TDC under the
     same terms and conditions described in this Management Agreement, and the
     agreement shall contain representations, warranties and covenants
     substantially similar to those contained in Articles 9 and 10 hereof
     insofar as applicable.

     9.13 Governing Law. This Management Agreement has been negotiated, made and
executed at Pawnee's office located in the State of Oklahoma and shall be
governed by and construed in accordance with the laws of the State of Oklahoma,
without regard to its conflict of laws provisions, and applicable federal laws.

     9.14 Entire Agreement. This Management Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all prior
agreements relating to management of gaming and ancillary operations conducted
by Pawnee at the Project Facilities.


                                      -39-

<PAGE>

     9.15 Representatives of Pawnee. Pawnee shall furnish to Lakes a list of the
authorized representatives who are empowered to act on behalf of Pawnee for the
purposes of this Management Agreement and Pawnee shall keep such list current.
Pawnee hereby acknowledges and agrees that to the extent any authorization,
consent or other approval of Pawnee is required under this Management Agreement
or any related Transaction Documents and Pawnee shall provide to Lakes a
resolution naming any individual or individuals authorized to represent the
Pawnee for purposes or for the purpose of the operation and performance of
Management Agreement and related Transaction Documents, then Lakes shall be
entitled to rely on all decisions, authorizations, consents, and approvals
provided by such individual or individuals, as applicable, until such time as
Pawnee shall deliver to Lakes an additional tribal resolution revoking or
otherwise modifying such authority.

     9.16 Limitations of Liability. Lakes expressly agrees that Pawnee's total
aggregate liability for damages for breach of the Management Agreement shall be
limited in accordance with the Resolution of Limited Waiver attached hereto as
EXHIBIT B and incorporated herein by reference. Pawnee shall bear no liability
for further damages.

     9.17 Approvals. Unless otherwise provided herein, all approvals or consents
required by either party hereunder shall not be unreasonably withheld or
delayed. Unless otherwise provided herein, approval by Pawnee's Board of
Directors or its duly authorized representative(s) shall be deemed to constitute
approval by Pawnee and approval by the Chief Executive Officer of the Lakes
shall be deemed to constitute approval by the Lakes.

     9.18 Best Efforts. Except as otherwise provided herein, Lakes and Pawnee
shall use their best efforts to perform and fulfill their obligations under this
Management Agreement in the manner required by this Management Agreement.

     9.19 Request for NIGC Approval. The parties specifically request that the
NIGC, or the Secretary where appropriate, approve this Management Agreement and
the other Transaction Documents, if required, or declare that such approval is
not required.

     9.20 Non-disclosure. The parties agree not to divulge to third parties the
terms of this Management Agreement or any other proprietary or confidential
information exchanged between the parties pursuant to this Management Agreement,
unless (i) the information is required to be disclosed pursuant to judicial
order or Legal Requirements, (ii) the information is at the time of disclosure
already in the public domain, or (iii) to the extent required in order to obtain
financing. This prohibition shall not apply to disclosures by either party to
their attorneys, accountants, or other professional advisers. In situations
where disclosure of the terms of this Management Agreement to regulatory,
governmental or judicial entities is required by law or regulations, the parties
will make reasonable efforts to secure confidential treatment of the economic
terms of this Management Agreement by such entities; provided, however, this
disclosure restriction shall not prohibit Lakes making any SEC filings it deems
legally necessary. The parties agree to consult with each other and cooperate
regarding any press releases regarding this Management Agreement and the
relationships described herein.


                                      -40-

<PAGE>

     9.21 Other Business Opportunities. During the term of this Management
Agreement, or until Lakes is repaid in full on the Operating Note, whichever is
later, Pawnee agrees that, subject to all Legal Requirements, Pawnee may pursue
other commercial, gaming and economic development opportunities in the State;
provided it grants to Lakes the right of first refusal to participate with
Pawnee upon the terms and conditions proposed by Pawnee, with prompt response by
Lakes required, but in no event later than thirty (30) days after written notice
from Pawnee. In the event that Lakes declines to participate with Pawnee upon
such terms and conditions, Pawnee shall have the right to pursue such
opportunity but may not offer to an unrelated third party terms and conditions
more favorable than those offered to Lakes. If Pawnee does not enter into a
signed agreement with such unrelated third party regarding the other commercial,
gaming and economic development opportunity which has been declined by Lakes
within one (1) year of such declination, then Lakes' right of first refusal
granted herein is reinstated for that opportunity.

     9.22 Use of Trade Marks and Trade Names. To assure that Pawnee can continue
operation of the Project Facilities without disruption in the event that this
Management Agreement is terminated or not renewed, Lakes agrees that it will not
use any trade mark or trade name to identify any portion of the Project
Facilities or services offered within the Project Facilities unless such trade
mark or trade name is registered in the name of Pawnee.

     9.23 Recitals. The recitals at the beginning of this Management Agreement
are true and are incorporated by reference herein.

     9.24 Non-Competition. Lakes agrees that, during the term of this Management
Agreement, it will not finance, manage, or consult in connection with any
facility where Gaming Operations are or will be conducted within a radius of
twenty-five (25) miles from the Gaming Facility Site without the prior written
consent of Pawnee. Pawnee agrees that, during the term of this Management
Agreement, neither it nor its Affiliates will solicit or enter into any
negotiations or agreements with any person or company with respect to any Gaming
Operations to be conducted within twenty-five (25) miles of the Gaming Facility
Site, nor conduct any Gaming Operations within twenty-five (25) miles of the
Gaming Facility Site, without the prior written consent of Lakes.

                                   ARTICLE 10
                               DISPUTE RESOLUTION

     10.1 Disputes Between the Enterprise and Patrons. Disputes that arise
between the Project and any patron of the Project Facilities shall be resolved
in accordance with the Tribal-State Compact and tribal ordinances, if
applicable.

     10.2 Disputes Between the Project and Project Employees. Pawnee and Lakes
shall jointly


                                      -41-

<PAGE>

develop an employee dispute resolution policy, and Lakes, as agent of Pawnee,
shall ensure that the Project's general manager shall implement and administer
the employee dispute resolution policy after its adoption.

     10.3 Disputes Between Pawnee and Lakes. Disputes between Pawnee and Lakes
with respect to this Management Agreement, the Operating Note, or any other
Transaction Documents, or a party's performance hereunder or thereunder, shall
be resolved by the following dispute resolution process and pursuant to the
Resolution of Limited Waiver attached hereto as Exhibit B.

     (a) The parties shall use their best efforts to settle the dispute. To this
effect, they shall consult and negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties.

     (b) If the parties do not reach such solution within a period of ten (10)
days, then, upon notice by either party to the other, all disputes shall be
settled by arbitration administered by the American Arbitration Association in
accordance with the provisions of its Commercial Arbitration Rules in effect at
the time of submission; except that: (a) the question whether or not a dispute
is arbitrable shall be a matter for binding arbitration by the arbitrators, such
question shall not be determined by any court and, in determining any such
question, all doubts shall be resolved in favor of arbitrability; and (b)
discovery shall be permitted in accordance with the Federal Rules of Civil
Procedure, subject to supervision as to scope and appropriateness by the
arbitrators. Unless the parties otherwise agree to in writing, arbitration
proceedings shall be held in Oklahoma City, Oklahoma.

     (c) The arbitration proceedings shall be conducted before a panel of three
neutral arbitrators, all of whom shall be currently licensed attorneys, actively
engaged in the practice of law for at least ten (10) years, one of which shall
have five (5) years of experience in federal Indian law, and one of which shall
have five (5) years of experience in the gaming industry. The arbitrator
selected by the claimant and the arbitrator selected by respondent shall, within
ten (10) days of their appointment, select a third neutral arbitrator. In the
event that they are unable to do so, the parties or their attorneys may request
the American Arbitration Association to appoint the third neutral arbitrator.
Prior to the commencement of hearings, each of the arbitrators appointed shall
provide an oath or undertaking of impartiality. Pawnee further agrees that any
arbitration proceeding held in connection with any dispute with respect to the
this Management Agreement, the Operating Note, or any other Transaction Document
may be consolidated with any other arbitration proceeding involving Lakes or its
Affiliates and any of Pawnee's Affiliates.

     (d) The arbitration award shall be in writing signed by each of the
arbitrators, and shall state the basis for the award. The arbitration award
shall be set forth in reasonable detail as to its findings of fact and law, and
basis of determination of award form and amount. In connection with any
arbitration award, the arbitrators shall be empowered to take the actions and
enforce the judicial remedies described in Paragraph 5 of the Resolution of
Limited Waiver; provided however, that although the arbitrators may award
damages in the event Pawnee or the Gaming Commission do not to comply with the
award, the arbitrators may not require Pawnee or the Gaming Commission


                                      -42-

<PAGE>

to take or modify any governmental legislative decision or action which the
arbitrators have determined has resulted in the dispute between the parties and
is contrary to the parties rights, liabilities or obligations under this
Management Agreement, the Operating Note, or any other Transaction Document
("Specific Performance Restriction"). Provided further, that: (a) should the
arbitrators determine that there has been an intentional bad faith violation of
a party's rights under this Management Agreement or any other Transaction
Documents by Pawnee or Gaming Commission, and if Pawnee or the Gaming Commission
do not reverse such intentional bad faith violation through governmental
legislative decision or action within thirty (30) days after the being notified
by the arbitrators of such determination, then the arbitrators shall award
one-and-half (1 1/2 ) times damages to Lakes for damages suffered as a
consequence of Pawnee's or Gaming Commission's intentional bad faith violation;
and (b) such Specific Performance Restriction shall not prevent Lakes from
enforcing the Operating Note, the Security Agreement, the Dominion Account
Agreement, nor from realizing on collateral encumbered thereby.

     (e) Except to the extent such enforcement will be inconsistent with a
specific provision of this Agreement, arbitration awards made pursuant to this
Article 10 shall be enforceable in federal court under Title 9 of the United
States Code and any applicable tribal, federal or state law governing the
enforcement of arbitration awards. In addition to any basis for appeal of an
arbitration award stated in Title 9 of the United States Code or any applicable
law governing the enforcement of arbitration awards, either party hereto may
appeal an arbitration award on the basis that the arbitrator or arbitrators
incorrectly decided a question of law in making the award, or the award was made
in an arbitrary or capricious manner or in manifest disregard of the factual
evidence.

     (f) Either party hereto, without having to exhaust any tribal remedies
first, shall have the right to seek and obtain a court order from a court having
jurisdiction over the parties requiring that the circumstances specified in the
order be maintained pending completion of the arbitration proceedings, to the
extent permitted by applicable law.

     (g) Judgment on any arbitration award may be entered in any court having
jurisdiction over the parties. The arbitrators shall not have the power to award
punitive, exemplary or consequential damages, or any damages excluded by or in
excess of any damage limitations expressed in this Agreement.

     (h) Pawnee hereby expressly waives, and also waives its right to assert,
sovereign immunity and any and all defenses based thereon with respect to
Claims; and Pawnee hereby consent to (i) binding arbitration under the
Commercial Arbitration Rules of the American Arbitration Association, and (ii)
judicial proceedings in or before the United States District Court for the
Northern District of Oklahoma, or if that court determines it is without
jurisdiction, then to the courts of the State of Oklahoma and all courts to
which an appeal therefrom may be available, but solely to compel, enforce,
modify or vacate any arbitration award.


                                      -43-

<PAGE>

     (i) To the extent lawful in connection with any such dispute, Pawnee
expressly waives the application of the doctrines of exhaustion of tribal
remedies or comity that might otherwise require that a claim be heard first in
tribal court or other tribal forum of Pawnee Nation.

     (j) The parties agree that: (1) in the event that a dispute submitted to
arbitration under this section involves the right of Lakes to continue to
receive compensation under Section 5.5 hereof, or (2) in the event that Lakes
appeals an agency decision under Section 8.2 for removal/divestiture, then any
compensation which is asserted to be due to Lakes during such dispute shall, if
not paid to Lakes, be deposited into an interest bearing escrow account with the
entity that is designated as the "Depository" under the Dominion Account
Agreement and Lakes shall be granted a security interest in said escrow account
which interest is contingent, as follows: such escrow funds shall be released to
Lakes upon an arbitration award being issued in its favor or on the date the
agency action under Section 8.2 is reversed by agency administrative or judicial
appeal; provided that upon final conclusion of such arbitration or agency
administrative or judicial appeal, any portion of such escrowed funds not
expressly awarded to Lakes shall be immediately released unconditionally to
Pawnee.

        [Rest of page left blank intentionally; signature page to follow]


                                      -44-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Management Agreement
as of the above written date.

Pawnee Chilocco Gaming Corporation      Lakes Pawnee Management, LLC


By: /s/ Monty Matlock                   By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Monty Matlock                     Timothy J. Cope
      -------------------------------   Its: President & Chief Financial Officer
Its:  Chairman
     --------------------------------


ATTEST:


By: /s/ Leslie Hand
    ---------------------------------
Name: Leslie Hand
      -------------------------------
Its: President
     --------------------------------


Approved pursuant to 25 U.S.C.
Section 2711

National Indian Gaming Commission


By:
    ---------------------------------
Print Name: Philip N. Hogen
Its Chairman


                                      -45-

<PAGE>

                                LIST OF EXHIBITS

Exhibit A   Legal Description of Gaming Facility Site

Exhibit B   Resolution of Limited Waiver of Immunity from Suit


                                      -46-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.110
<SEQUENCE>45
<FILENAME>c92713exv10w110.txt
<DESCRIPTION>OPERATING NOTE
<TEXT>
<PAGE>
                                                                  Exhibit 10.110

                                 OPERATING NOTE

                                                           Minnetonka, Minnesota
                                                                January 12, 2005

     FOR VALUE RECEIVED, PAWNEE CHILOCCO GAMING CORPORATION ("MAKER"), A WHOLLY
OWNED SUBSIDIARY OF THE PAWNEE TRIBAL DEVELOPMENT CORPORATION, EACH CREATED
UNDER THE CONSTITUTION OF AND A GOVERNMENTAL SUBDIVISION OF THE PAWNEE NATION OF
OKLAHOMA, A FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the order of
LAKES PAWNEE MANAGEMENT, LLC, A MINNESOTA LIMITED LIABILITY COMPANY ("LENDER"),
in the United States of America, in immediately available funds, at such place
as the holder hereof may from time to time designate, or in the absence of such
designation, at the office of the Lender, 130 Cheshire Lane, Minnetonka,
Minnesota 55305, the principal sum of the aggregate unpaid principal amount of
all "Guaranteed Minimum Payment Advances" and "Working Capital Advances" made to
Maker pursuant to Sections 5.3(b) and 5.7, respectively, of the Management
Agreement for a Gaming Facility and Related Ancillary Facilities dated January
12, 2005 entered into between the Maker and Lender (the "Management Contract"),
plus interest on any Working Capital Advances from the date of such advances, in
like money, in accordance with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Management Contract.

     2. Interest. No interest shall accrue on any Minimum Guaranteed Payment
Advances. Each Working Capital Advance as and when made pursuant to the terms of
the Amended Memorandum Agreement shall bear interest at the Interest Rate, as
described herein, from and including the date the proceeds of such Working
Capital Advance are advanced (such date the "Funding Date" of such Advance)
through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be a Limited Recourse obligation, as defined in
the Management Contract, and secured by the real and personal property described
therein. Principal and interest, as applicable, on each Minimum Guaranteed
Payment Advance and Working Capital Advance (each an "Advance") shall be repaid
in accordance with the terms and provisions set forth in the Management
Contract. The Maker shall have the right to prepay all or any part of this
Operating Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity. In the event that the term of the Management Contract is
tolled under Section 6.6 thereof, Maker's obligation to make the monthly
installment payment hereunder shall be likewise tolled until the tolling under
Section 6.6 ceases (except to the extent that the Project shall receive any
business interruption insurance proceeds in connection with tolling under
Section 6.6, in which case Maker's obligation to make monthly installment
payments shall not be tolled).

     4. Interest Rate. The Interest Rate means an interest rate equal to the
greater of the prime rate of Chase Manhattan Bank, N.A. (or any successor Bank
by acquisition or merger) plus two percent (2%) per annum or the same rate as
the financing provided by any third party lender for


                                       -1-

<PAGE>

the development, construction and equipping of the Project Facilities in place
at the time of the advance, fixed as of the first business day of each calendar
month. Interest at the foregoing rate shall accrue and shall be payable as a
Limited Recourse obligation as provided in the Management Contract. Interest
shall be computed for the actual number of days elapsed on the basis of a year
consisting of 360 days. It is intended that the rate of interest hereon shall
never exceed the maximum rate, if any, which may be legally charged on the Loan
evidenced by this Operating Note ("Maximum Rate"), and if the provisions for
interest contained in this Operating Note would result in a rate higher than the
Maximum Rate, interest shall nevertheless be limited to the Maximum Rate and any
amounts which may be paid toward interest in excess of the Maximum Rate shall be
applied to the reduction of principal, or, at the lawfully exercised option of
the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books all Advances made to the Maker and all payments of principal amounts and
interest in respect of such Advances, which shall be presumptive evidence as to
the outstanding principal amount of all Advances; provided, however, that the
failure to make such notation with respect to any Advance or payments shall not
limit or otherwise affect the obligations of Maker.

     6. Default; Acceleration. If any Event of Default occurs, then the
outstanding principal amount of this Operating Note, any interest accrued
thereon from time to time, and any other sums then remaining unpaid hereunder,
at the option of the holder hereof and without notice, shall become immediately
due and payable and Lender may exercise any other rights or remedies available
under any Transaction Documents or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Operating Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  A material default by Maker in the performance by Maker of any of its
          covenants or commitments under the Management Contract or any
          Transaction Document or under any other agreement entered into with or
          in favor of Lender or any Affiliate of Lender, or a material default
          by Maker's Affiliate under any agreement executed by an Affiliate of
          Maker in favor of Lender or any Affiliate of Lender which default is
          not cured by Maker or its Affiliate as applicable within the
          applicable cure period thereunder after written notice of default is
          delivered to Maker or its Affiliate; provided, however, that if the
          nature of such default (but specifically excluding defaults curable by
          the payment of money) is such that it is not possible to cure such
          default within the cure period, such period shall be extended for so
          long as the


                                       -2-

<PAGE>

          breaching party shall be using diligent efforts to effect a cure
          thereof but no more than an additional sixty (60) days; or

     (d)  The Management Contract shall be terminated by either the Maker or the
          Lender; or

     (e)  Any representation or warranty given to the Lender by the Maker (or
          any of its representatives) in connection with entering into the
          Management Contract or the other Transaction Documents and/or any
          borrowing thereunder, or given by an Affiliate of Maker in connection
          with any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, or required to be furnished under
          the terms thereof, shall prove untrue or misleading in any material
          respect (as determined by the Lender in the exercise of its reasonable
          judgment) as of the time when given or shall fail to be true and
          correct in all material respects at any time during the term of the
          agreement; or

     (f)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or

     (g)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing or shall be insolvent.

     7. Security. This Operating Note shall be secured by a security interest
the Collateral granted by Maker to Lender pursuant to the Management Contract
and the other Transaction Documents, including the Dominion Account Agreement.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Operating Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Operating Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no


                                       -3-

<PAGE>

event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS OPERATING NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Operating Note.

     12. Applicable Law. This Operating Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Operating Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Operating Note is found by
a court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Operating Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this
Operating Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Operating Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Operating Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Operating Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Operating Note.

     16. Successors and Assigns. This Operating Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Operating Note.


                                       -4-

<PAGE>

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 9.3 of the Management Contract.

     18. Dispute Resolution/Limited Waiver of Sovereign Immunity. Maker and
Lender expressly agree that any dispute in connection with this Operating Note
shall be subject to the dispute resolution procedures and the limited waiver of
sovereign immunity contained in the Management Contract and the Resolution of
Limited Waiver attached thereto as Exhibit B, the terms of which are hereby
incorporated by reference thereto.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       -5-

<PAGE>

IN WITNESS WHEREOF, Maker has caused this Operating Note to be executed under
seal and delivered as of the date first above written.

                                        MAKER:

                                        PAWNEE CHILOCCO GAMING CORPORATION


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        ATTEST:


                                        By: /s/ Tommie Briggs
                                            ------------------------------------
                                        Name: Tommie Briggs
                                              ----------------------------------
                                        Title: Treasurer
                                               ---------------------------------

                [Signature page to Pawnee Chilocco Operating Note
                    in favor of Lakes Pawnee Management, LLC]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.111
<SEQUENCE>46
<FILENAME>c92713exv10w111.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.111

                           DOMINION ACCOUNT AGREEMENT
                               (Lakes Management)
                                 (Chilocco Site)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 12, 2005 (the "Effective Date'"), between Pawnee Chilocco Gaming
Corporation ("Pawnee") (and sometimes hereinafter referred to as the
"Borrower"), a wholly owned subsidiary of the Pawnee Tribal Development
Corporation ("Pawnee TDC"), each created under the Constitution of and a
governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee Nation"), a
federally recognized Indian tribe, located in the State of Oklahoma, whose
business office is located at 871 Little D. Drive, Building 68, P.O. Box 28,
Pawnee, OK 74058, and Lakes Pawnee Management, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes"), whose business office is
located at 130 Cheshire Lane, Minnetonka, Minnesota 55305, and when it has
executed a counterpart signature page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is created under the Constitution of and a
governmental subdivision of the Pawnee Nation, a federally recognized Indian
tribe eligible for the special programs and services provided by the United
States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee nation may legally conduct gaming under applicable federal law.

     WHEREAS, Pawnee TDC is vested with the sovereign immunity of the tribe, and
has been established to control and manage the economic affairs of the Pawnee
Nation; and Pawnee TDC has established Pawnee as a legal entity which will own
and operate specified gaming projects which are to be developed by Pawnee TDC on
behalf of the Pawnee Nation.

     WHEREAS, Lakes has entered into an agreement with Pawnee dated January 12,
2005 ("Management Contract"), pursuant to which Lakes is to manage the Project's
Gaming Facility and related Ancillary Facilities owned by Pawnee.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of Gross Total Revenues
derived by the Borrower with respect to the Project (as set forth in the
Management Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Management Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Management
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean (i) all loans, compensation, fees, expenses and
other amounts owing by (a) Borrower to Lakes or its Affiliates under or with
respect to the Operating Note, and each of the other Transaction Documents (as
each of such terms are defined in the Management Contract), and (b) the Pawnee
Nation and/or Pawnee TDC to Lakes or its Affiliates under or with respect to the
Tribal Agreement or any other document or agreement executed in favor of Lakes
or its Affiliates by Pawnee Nation or Pawnee TDC in connection with the Project,
each of the foregoing, whether now existing or hereafter incurred or arising,
and (ii) together with any costs, expenses or other amounts hereafter owing by
the Borrower to Agent or Lakes pursuant to the terms of this Agreement, each of
the foregoing, whether now existing or hereafter incurred or arising.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.


                                                                          Page 2

<PAGE>

     "Project" shall have the meaning assigned to such term in the Management
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the Gross Total Revenues (as such term is
defined in the Management Contract) of the Project, including without limitation
credit card receivables and other accounts receivable related to the Project.

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Management Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Notwithstanding
any other term or provision contained herein or in the Management Contract, only
Lakes shall have the authority to make withdrawals from or exercise any other
rights with respect to Project Dominion Account; provided that upon written
notice to the Agent, Lakes may grant the Borrower the right (which may be
subsequently revoked by Lakes at any time) to make withdrawals and transfers
from the Project Dominion Account subject to any conditions set forth in such
notice. Agent hereby acknowledges the security interest in the Collateral
granted to Lakes by Borrower. On the date of execution of this Agreement, the
Borrower shall cause to be delivered to Lakes (a) such financing statements and
similar documents necessary to perfect the security interest granted to Lakes
pursuant to Section 3.1 hereof (the "Financing Statements") and (b) a legal
opinion in form and substance reasonably acceptable to Lakes, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by the Borrower, together with opinions as to the
Borrower's sovereign immunity waiver and noncontravention with laws and
agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct Lakes, any other manager of the Project, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be permitted provided the
collecting bank(s) execute and deliver the Joinder Agreement attached hereto as
Exhibit A with the Borrower, Lakes and the collecting banks in form mutually
acceptable to each of such parties), the Borrower shall transfer or cause to be
transferred all such Project Revenues or other Collateral, consisting of cash
and other collected funds directly by wire transfer of immediate available funds
to the Project Dominion Account on each Business Day. In the event that the
Borrower receives any payment that should have been deposited into


                                                                          Page 3

<PAGE>

the Project Dominion Account as provided pursuant to this Agreement, the
Borrower agrees that it will hold such amounts in trust for the benefit of
Lakes, and shall not commingle any such funds with any of its funds or other
property and shall immediately transfer such amounts to the Agent for deposit
into the Project Dominion Account. The Borrower agrees that the Agent's
officers, agents and employees are irrevocably authorized by it to endorse for
payment to the Agent any instruments received by the Agent for deposit into the
Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Subject to the terms
of this Agreement, Lakes acknowledges and agrees that during each calendar month
it shall make or permit such transfers from the Project Dominion Account to and
for the benefit of each of the Borrower and Lakes in such amounts and
priorities, for such purposes and as and when required pursuant to the terms of
Sections 2.8(b) and 5.5 of the Management Contract. Lakes further acknowledges
and agrees that transfers from the Project Dominion Account to Project Accounts
under Section 2.8(b) of the Management Contract and payment of the Minimum
Guaranteed Monthly Payment shall be timely made notwithstanding any provision of
this Dominion Agreement (except as otherwise provided under Section 5.2 hereof).
In connection with any such withdrawals and transfers and any other aspects of
the Project Dominion Account, the Agent shall acknowledge and comply with only
the withdrawal requests and other directions received from Lakes, except as
expressly provided in Section 2.2 above or pursuant to an arbitration award made
in an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges that when it shall release any funds from the Project Dominion
Account, then its security interest in such funds shall also be deemed to have
been released concurrently therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of any Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes itself and its Affiliates, subject only to Permitted Liens, of
all of the Borrower's right, title and interest in and


                                                                          Page 4

<PAGE>

to the Collateral. The Borrower represents and warrants that the Borrower is
(or, to the extent that the Collateral is acquired after the date hereof, will
be) the sole legal and beneficial owner of its respective Collateral and has
exclusive possession and control thereof; there are no security interests in,
liens, charges or encumbrances on, or adverse claims of title to, or any other
interest whatsoever in, such Collateral or any portion thereof except for
Permitted Liens; and that no financing statement, notice of lien, mortgage, deed
of trust or instrument similar in effect covering the Collateral or any portion
thereof or any proceeds thereof ("LIEN NOTICE") exists or is on file in any
public office, except as relates to Permitted Liens and except as may have been
filed in favor of Lakes relating to this Agreement or related agreements, or for
which duly executed termination statements have been delivered to Lakes for
filing. Without the prior written consent of Lakes, Borrower will not in any way
encumber, or hypothecate, or create or permit to exist, any lien, security
interest, charge or encumbrance or adverse claim upon or other interest in the
Collateral, except for Permitted Liens, and the Borrower will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein, except as expressly provided herein. The
Borrower will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or encumbrances permitted
by the Management Contract or any other Transaction Document or except as may
have been filed by or for the benefit of Lakes relating to this Security
Agreement or related agreements. The Borrower shall promptly notify Lakes of any
attachment or other legal process levied against any of the Collateral and any
information received by any Borrower relative to the Collateral, which may in
any material way affect the value of the Collateral or the rights and remedies
of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;


                                                                          Page 5

<PAGE>

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
and Lakes until such time as Lakes delivers a written notice to Agent and the
Borrower in accordance with Section 5.2 that Lakes is thereby exercising
exclusive control over the Project Dominion Account ("Notice of Exclusive
Control"), provided that the proceeds of any such investments are deposited in
or credited to the Project Dominion Account contemporaneously with such
transaction; and provided, further, such investment instructions shall not
affect the type or nature of Collateral for attachment and perfection purposes
under the Oklahoma Uniform Commercial Code (as may be amended from time to time)
or any other applicable law. After Agent receives the Notice of Exclusive
Control, it will immediately cease complying with any investment instructions
concerning Project Dominion Account originated by Borrower or its
representatives and shall comply with only such investment instructions as are
originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Management Contract has been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Management Contract.

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:


                                                                          Page 6

<PAGE>

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or LAKES may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach and
termination of the Management Contract, the Borrower will furnish the following
to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of the Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,
               shall be and remain subject to the provisions of Section 9.20 of
               the Management Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief


                                                                          Page 7

<PAGE>

               financial officer of the Borrower or an appropriate officer of
               the manager of the Project, substantially in the form set forth
               in Exhibit B stating that, except as explained in reasonable
               detail in such certificate, all Gross Total Revenues with respect
               to the Project has been deposited into the Project Dominion
               Account for the period covered by such financial statement. If
               such certificate discloses an exception to such certification,
               such certificate shall set forth what action the Borrower has
               taken or proposes to take with respect thereto.

     (d) Insurance. At such time as Lakes shall no longer be the Manager of the
Project, the Borrower shall cause to be maintained insurance as required by the
Management Contract and naming Lakes as an additional insured, loss payee and
mortgagee, if applicable. Upon request, the Borrower shall provide to the Agent
and Lakes certificates of insurance or copies of insurance policies evidencing
that such insurance satisfying the requirements of such Management Contract is
in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended for so long as the Borrower shall be using diligent efforts to
effect a cure thereof.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under the Operating Note and
shall have continued beyond any applicable grace or cure period.


                                                                          Page 8

<PAGE>

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower under
Section 5.5 of the Management Contract, and to apply the same towards the
repayment of the Obligations, and to endorse in the name of the Borrower any
checks, drafts, notes or other instruments or documents received in payment of
or on account of the Project Revenues or other Collateral; and any such proceeds
so received and prepaid shall be applied to installments of principal on the
Obligations in the inverse order of their maturity; and provided further that
Lakes may obtain any injunctive or other relief as is necessary for the
enforcement of this Agreement and the terms and provisions set forth herein, and
may exercise such other rights and remedies available by law or agreement;
PROVIDED, HOWEVER, that any and all obligations of Borrower and remedies of
Lakes shall be Limited Recourse and shall be subject to the limitations set
forth in the Resolution of Limited Waiver attached to the Management Contract;
and provided further that, notwithstanding any term or provision contained
herein, Lakes shall take all steps necessary to continue to permit and cause the
necessary withdrawals and transfers to be made from the Project Dominion Account
in accordance with Section 2.3 hereof, with the exception that Lakes shall be
entitled to retain all amounts otherwise payable to the Borrower under Section
6.5 (including any payments required to be made under Section 5.5(a)(i)) of the
Management Contract and apply the same towards the repayment of the Obligations;
and in no event shall Lakes exercise any remedy against the Borrower (excluding
other third parties) with respect to the Project Revenues other than such
remedies as are necessary to require their deposit into the Project Dominion
Account or seeking an accounting and turnover of any Project Revenues held in
trust by the Borrower as required under Section 2.2 hereof until such time that
the Borrower shall have ceased business operations at the Project, at which time
Lakes may exercise all rights and remedies under applicable law or by agreement
and apply all proceeds of the Collateral to the repayment of the Obligations.
Borrower agrees that, to the extent notice of sale shall be required by law with
respect to the disposition of any Collateral, at least ten (10) calendar days
notice to the Borrower of the time and place of any public sale or the time
after which a private sale is to be made shall constitute reasonable
notification. Lakes agrees that it shall withdraw and terminate any Notice of
Exclusive Control at such time that all outstanding Events of Default have been
cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and in exercising any such powers or
authority, the right to pay all expenses incurred in connection therewith,
including attorneys' fees. Borrower hereby agrees that it shall be bound by any
such payment made or incurred or act taken by Lakes hereunder and shall
reimburse Lakes for all reasonable payments made and expenses incurred under
this Agreement, which amounts shall be secured under this Agreement. Lakes shall
have no obligation to make any of the foregoing payments or perform any of the
foregoing acts


                                                                          Page 9

<PAGE>

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required


                                                                         Page 10

<PAGE>

to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement, and any such amounts
shall be deemed to be Costs of Gaming Operations under the Management Contract
and subject to the terms of Section 2.9 thereof.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,


                                                                         Page 11

<PAGE>

administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the Borrower shall not be and Lakes shall be responsible
for such related costs and expenses. If Borrower shall fail to pay any of such
costs when due, Lakes may make a withdrawal or proceeds from the Project
Dominion Account in an amount sufficient to cause the payment of the same or
reimburse Lakes for any such payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days prior to the Commencement Date (as estimated by the Borrower and
Lakes), Borrower shall select an eligible financial institution to act as the
agent (the "Agent") under this Agreement and cause the Agent to execute a
counterpart signature page to this Agreement, thereby becoming a party hereto.
Thereafter, there shall at all times be an Agent hereunder. Any such Agent shall
be a financial institution organized and doing business under the laws of the
United States of America or of any State, having a combined capital, undivided
profits and surplus of at least $500,000,000. If at any time the Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.


                                                                         Page 12

<PAGE>

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of resignation, the resigning Agent
may petition any court of competent jurisdiction for the appointment of a
Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower and Lakes (so long as a
Notice of Exclusive Control has not been issued by Lakes to the Agent) and
delivered to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.


                                                                         Page 13

<PAGE>

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Pawnee Chilocco Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Lakes:           Lakes Pawnee Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.


                                                                         Page 14

<PAGE>

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition without invalidating the remaining provisions
hereof, provided, however that where the provisions of any such applicable law
may be waived, they hereby are waived by the Parties to the fullest extent
permitted by law to the end that this Agreement shall be deemed to be a valid
and binding agreement in accordance with its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Management Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient; provided, however, that any and all
remedies of the Agent and Lakes shall be Limited Recourse. No failure on the
part of the Agent or Lakes to exercise and no delay in exercising, any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any power or right preclude any other or further exercise
thereof of any other power or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the Dominion Account Agreement as
defined and referred to in Section 2.8(a) of the Management Contract. As such
and without limiting the scope of such Management Contract, the provisions of
Section 9.10 and Article 10 of the Management Contract apply to this Agreement
and are hereby incorporated by reference, including, without limitation, the
limited sovereign immunity waiver, limitations on recourse and arbitration and
jurisdiction provisions contained therein and the Resolution of Limited Waiver
attached thereto. This Agreement and the Project Dominion Account will be
governed by the internal laws of the State of Oklahoma without giving effect to
its conflict of laws principles and without limiting the foregoing, the Oklahoma
Uniform Commercial Code (as may be amended form time to time) notwithstanding
any provision therein or other applicable law that would otherwise make such


                                                                         Page 15

<PAGE>

laws inapplicable to the Borrower. The parties hereto may not change the law
governing this Agreement and the Project Dominion Account without express
written consent of the Borrower, Agent and LAKES.

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Management Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 16

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        Pawnee Chilocco Gaming Corporation


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its:  Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Leslie Hand
                                            ------------------------------------
                                        Name: Leslie Hand
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------


                                        LAKES PAWNEE MANAGEMENT, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: ________ , 200__

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
dated January 12, 2005 (as amended or otherwise modified from time to time, the
"Dominion Agreement") by and among Pawnee Chilocco Gaming Corporation
("Borrower"), Lakes Pawnee Management, LLC ("Lakes") and
____________________________________ ("Agent"), the Collecting Bank, must
execute and deliver a Joinder Agreement in accordance with the Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and management services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Pawnee Chilocco Gaming Corporation (the
"Borrower"), do hereby provide this Compliance Certificate in connection with
that certain Dominion Account Agreement dated January 12, 2005 (the "Dominion
Agreement"), by and between the Borrower, Lakes, and __________________________
Bank (the "Bank"); capitalized terms used but not otherwise defined herein shall
have the meaning set forth in the Dominion Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No. _____________
          with the Bank.

                                        PAWNEE CHILOCCO GAMING CORPORATION


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.112
<SEQUENCE>47
<FILENAME>c92713exv10w112.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.112

                               SECURITY AGREEMENT

                           (LAKES PAWNEE MANAGEMENT)

                                (CHILOCCO SITE)

     This Security Agreement is made and entered into on January 12, 2005, by
and between Pawnee Chilocco Gaming Corporation (hereinafter referred to as
"Pawnee" or "Debtor"), a wholly owned subsidiary of the Pawnee Tribal
Development Corporation ("Pawnee TDC"), each created under the Constitution of
and a governmental subdivision of the Pawnee Nation of Oklahoma ("Pawnee
Nation"), a federally recognized Indian tribe, whose business office is located
at 871 Little D. Drive, Building 68, P.O. Box 280, Pawnee, OK 74058, and Lakes
Pawnee Management, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes" or "Secured Party"), whose business office is located at
130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the Constitution of and a governmental
subdivision of the Pawnee Nation, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Pawnee Nation over which the Pawnee Nation
possesses sovereign governmental powers and the Pawnee Nation holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Pawnee Nation may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into an agreement with Debtor dated
January 12, 2005 (as amended from time to time, the "Management Contract"),
pursuant to which Lakes is to manage the Project's Gaming Facility and related
Ancillary Facilities owned by Debtor.

     WHEREAS, pursuant to the Management Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Management Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                   AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

          1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges
and grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the Debtor's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each


                                  Page 1 of 15

<PAGE>

case whether now owned or hereafter acquired by Debtor in order to secure the
payment and performance of the obligations of Debtor to Secured Party described
in Section 3 herein below. On the date of execution of this Agreement, Debtor
shall cause to be delivered to Secured Party: (a) such financing statements and
similar documents necessary to perfect the security interest granted to Secured
Party pursuant to this Agreement (the "Financing Statements"), and (b) a legal
opinion in form and substance reasonably acceptable to Secured Party, opining as
to the due authorization, execution, delivery and enforceability of this
Agreement and the Financing Statements by Debtor, together with opinions as to
Debtor's sovereign immunity waiver and non-contravention with laws and
agreements.

          2. COLLATERAL. The Collateral under this Security Agreement includes
all of the following assets of the Debtor which are or are to be installed,
attached, and/or used upon or in connection with, relate to or arise from
(including without limitation the ownership and/or operation of) the Project,
the Gaming Facility Site and/or the Project Facilities, each whether now owned
or hereafter acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Management
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Management Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "Project" means the business enterprise of the Debtor now or hereafter
created to engage in Class II Gaming and III Gaming (as defined in the Indian
Gaming Regulatory Act of 1988, Public Law 100-497 ("IGRA")) at the Project's
Gaming Facility, and to conduct the operations of any Ancillary Facilities of
the Project, including, but not limited to, operating and managing office space,
kids arcade, child care facility, hotel with swimming pool and golf course,
restaurant, RV park, retail stores, entertainment facilities, or the sale of
fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs.

          "Project Facilities" means the buildings, structures and improvements
to be


                                  Page 2 of 15

<PAGE>

constructed and used by the Project for its gaming and ancillary operations.

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

          3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Operating Note, and
each of the other Transaction Documents (as each of such terms are defined in
the Management Contract), and (b) the Pawnee Nation and/or Pawnee TDC to Secured
Party or its Affiliates under or with respect to the Tribal Agreement or any
other document or agreement executed in favor of Secured Party or its Affiliates
by Pawnee Nation or Pawnee TDC in connection with the Project, each of the
foregoing, whether now existing or hereafter incurred or arising, (ii) any and
all sums advanced by Secured Party in order to preserve the Collateral or
preserve Secured Party's security interest in the Collateral (or the priority
thereof) and (iii) the expenses of retaking, holding, preparing for sale or
lease, selling or otherwise disposing of or realizing on the Collateral, of any
proceeding for the collection or enforcement of any indebtedness, obligations or
liabilities of Debtor referred to above, or of any exercise by Secured Party of
its rights hereunder, together with reasonable attorneys' fees and disbursements
and court costs (collectively, the "Secured Obligations"); PROVIDED HOWEVER,
Secured Party agrees to terminate this Security Agreement upon request if Debtor
has satisfied the following conditions: (a) all Secured Obligations have been
repaid in full to Secured Party and Secured Party has no further obligation, if
any, to make advances under the Management Contract with respect thereto, and
(b) the Management Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

          4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 2.23 of the Management Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and perform this Security Agreement. This Security Agreement constitutes a
legally valid and binding


                                  Page 3 of 15

<PAGE>

obligation of the Debtor, enforceable against the Debtor in accordance with its
terms subject to any limitations set forth in the Resolution of Limited Waiver
attached to the Management Contract. Subject to the completion of the items
identified in Section 4(c) below, the provisions of this Security Agreement are
effective to create in favor of Secured Party a valid and enforceable first,
prior and perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default under, or constitute an event
which with notice or lapse of time or both will result in a breach of or
constitute a default under, any agreement, indenture, mortgage, deed of trust,
equipment lease, instrument or other


                                  Page 4 of 15

<PAGE>

document to which Debtor is a party, conflict with or require approval,
authorization, notice or consent under any law, order, rule, regulation, license
or permit applicable to Debtor of any court or any federal or state government,
regulatory body or administrative agency, or any other governmental body having
jurisdiction over Debtor or its properties, or require notice, consent, approval
or authorization by or registration or filing with any person or entity
(including, without limitation, any stockholder or creditor of Debtor) other
than any notices to Debtor from Secured Party required hereunder except as may
be agreed to by Debtor and Secured Party. Except for the Permitted Liens, none
of the Collateral is subject to any agreement, indenture, mortgage, deed of
trust, equipment lease, instrument or other document to which Debtor is a party
that may restrict or inhibit Secured Party's rights or ability to sell or
dispose of the Collateral or any part thereof after the occurrence of an Event
of Default (as defined herein).

          5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than 21 days after a
request by Secured Party, procure or execute and deliver all further instruments
and documents (including, without limitation, notices, legal opinions, financing
statements, mortgagee waivers, landlord disclaimers and subordination
agreements) necessary or appropriate to and take any other actions which are
necessary or, in the judgment of Secured Party, desirable or appropriate to
perfect or to continue the perfection, priority and enforceability of Secured
Party's security interests in the Collateral, to enable Secured Party to
exercise and enforce its rights and remedies hereunder with respect to any
Collateral, to protect the Collateral against the rights, claims or interests of
third persons, or to effect or to assure further the purposes and provisions of
this Security Agreement, and will pay all reasonable costs incurred in
connection therewith. Without limiting the generality of the foregoing, Debtor
will: (i) mark conspicuously each item of chattel paper and each other contract
included in the Collateral with a legend, in form and substance satisfactory to
Secured Party, indicating that such chattel paper and other contracts are
subject to the security interests granted hereby; (ii) execute and file such
financing or continuation statements, or amendments thereto, and


                                  Page 5 of 15

<PAGE>

such other instruments or notices as may be necessary or desirable, which
Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a promissory note
or other instrument or chattel paper (other than checks received by any Debtor
in the ordinary course of business), deliver and pledge to Secured Party such
note or instrument or chattel paper duly endorsed and accompanied by duly
executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for Permitted Liens, and the Debtor will defend the
Collateral against all claims and demands of all persons at any time claiming
the same or any interest therein, except as expressly provided herein. Debtor
will not permit any Lien Notices to exist or be on file in any public office
with respect to all or any portion of the Collateral except, in each case, for
Lien Notices of holders of Permitted Liens or except as may have been filed by
or for the benefit of Secured Party relating to this Security Agreement or
related agreements. Debtor shall promptly notify Secured Party of any attachment
or other legal process levied against any of the Collateral and any information
received by any Debtor relative to the Collateral, which may in any material way
affect the value of the Collateral or the rights and remedies of Secured Party
in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or otherwise disposed of in violation of these
provisions, the security interest of Secured Party shall continue in such
Collateral or part thereof notwithstanding such sale, transfer, assignment,
exchange


                                  Page 6 of 15

<PAGE>

or other disposition, and Debtor will hold the proceeds thereof in a separate
account for Secured Party's benefit. Debtor will, at Secured Party's request,
transfer such proceeds to Secured Party in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Management Contract, Debtor
will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Management
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance with respect to
the Project and Collateral as required by the Management Contract and naming
Secured Party as an additional insured, loss payee and mortgagee, if applicable.
Upon request, the Debtor shall provide to the Secured Party certificates of
insurance or copies of insurance policies evidencing that such insurance
satisfying the requirements of such Management Contract is in effect at all
times;

          (j) Except as expressly permitted by the Management Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;

          (m) Intentionally omitted;


                                  Page 7 of 15

<PAGE>

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

          6. DEFAULTS AND REMEDIES


                                  Page 8 of 15

<PAGE>

          6.1 EVENTS OF DEFAULT. Each of the following occurrences shall
constitute an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Management Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

          6.2 REMEDIES. Upon the occurrence and continuation of an Event of
Default hereunder, the Debtor expressly covenants and agrees that Secured Party
may, at its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Management Contract is terminated and either (i) the
Commencement Date (as defined in the Management Contract) has not occurred, or
(ii) the Debtor does not or at any time fails to continue operations of Class II
Gaming and/or Class III Gaming at the Project's Gaming Facility or any material
portion of the Project Facilities, Secured Party may immediately take possession
of any of the Collateral wherever it may be found or require the Debtor to
assemble the Collateral or any part thereof and make it available at one or more
places as Secured Party may designate, and to deliver possession of the
Collateral or any part thereof to Secured Party, who shall have full right to
enter upon any or all of Debtor's places of business, premises and property to
exercise Secured Party's rights hereunder; and without notice (except as
specified below), sell the Collateral or any part thereof in one or more parcels
at one or more public or private sales, at any of Secured Party's offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor acknowledges and agrees that, to the extent notice of
sale shall be required by law, at least ten (10) days' written notice to Debtor
of the time and place of any public sale or of the date on or after which any
private sale is to be made shall constitute reasonable notification. Any public
sale


                                  Page 9 of 15

<PAGE>

shall be held at such time or times during ordinary business hours and at such
place or places as Secured Party may fix in the notice of such sale.
Notwithstanding the foregoing, Secured Party shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. Secured Party
may, without notice or publication, adjourn any public or private sale, or cause
the same to be adjourned from time to time by announcement at the time and place
fixed for sale or, with respect to a private sale, after which such sale may
take place, and any such sale may, without further notice, be made at the time
and place to which it was so adjourned or, with respect to a private sale, after
which such sale may take place. Each purchaser at any such sale shall hold the
property sold free from any claim or right on the part of Debtor, and the Debtor
hereby waives, to the full extent permitted by law, all rights of stay and/or
appraisal which Debtor now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted. The Debtor also hereby
waives any claims against Secured Party arising by reason of the fact that the
price at which any Collateral may have been sold at a private sale was less than
the price which might have been obtained at a public sale, even if Secured Party
accepts the first offer received and does not offer such Collateral to more than
one offeree. The parties hereto agree that the notice provisions, method, manner
and terms of any sale, transfer or disposition of any Collateral in compliance
with the terms set forth herein or any other provision of this Security
Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and


                                 Page 10 of 15

<PAGE>

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

          7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:          Pawnee Chilocco Gaming Corporation
                       871 Little D. Drive, Building 68
                       P.O. Box 280
                       Pawnee, OK 74058
                       Attention: Chairman

     With a copy to:   David J. Ketelsleger, Esq.
                       McAfee & Taft
                       Two Leadership Square
                       Tenth Floor
                       211 North Robinson
                       Oklahoma City, OK 73102-7103

If to Secured Party:   Lakes Pawnee Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140


                                 Page 11 of 15

<PAGE>

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Management Contract, Debtor shall not assign any of its interest under this
Security Agreement without the prior written consent of Secured Party. Any
purported assignment inconsistent with this provision shall, at the option of
Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.


                                 Page 12 of 15

<PAGE>

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured
Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms hereof, and execute and deliver to Debtor such documents as
Debtor may reasonably request to evidence such termination. Such reassignment
and redelivery shall be without warranty by or recourse to Secured Party, and
shall be at the expense of Debtor; provided, however, that this


                                 Page 13 of 15

<PAGE>

Security Agreement (including all representations, warranties and covenants
contained herein) shall continue to be effective or be reinstated, as the case
may be, if at any time any amount received by Secured Party in respect of the
indebtedness and obligations secured hereunder is rescinded or must otherwise be
restored or returned by Secured Party upon or in connection with the insolvency,
bankruptcy, dissolution, liquidation or reorganization of Debtor or any other
person or upon or in connection with the appointment of any intervenor or
conservator of, or trustee or similar official for, Debtor or any other person
or any substantial part of its assets, or otherwise, all as though such payments
had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the Security Agreement as defined and
referred to in the Management Contract. As such and without limiting the scope
of such agreements, the provisions of Section 9.10 and Article 10 of the
Management Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver attached thereto. This Agreement will be governed
by the internal laws of the State of Oklahoma without giving effect to its
conflict of laws principles. The parties hereto may not change the law governing
this Agreement without express written consent of the Debtor and Secured Party.

        [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        PAWNEE CHILOCCO GAMING CORPORATION

ATTEST:


By: /s/ Leslie Hand                     By: /s/ Monty Matlock
    ---------------------------------       ------------------------------------
Name: Leslie Hand                       Name: Monty Matlock
      -------------------------------         ----------------------------------
Its: President                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES PAWNEE MANAGEMENT, LLC

ATTEST:


By: /s/ Kevin Kean                      By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Kevin Kean                        Name: Timothy J. Cope
      -------------------------------
Its:                                    Title: President and Chief Financial
     --------------------------------          Officer

<PAGE>

                                   EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
           (PAWNEE CHILOCCO GAMING CORPORATION COLLATERAL LOCATIONS)

1.   ____________________________________________________, OKLAHOMA

2.   ____________________________________________________, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.113
<SEQUENCE>48
<FILENAME>c92713exv10w113.txt
<DESCRIPTION>INDEMNITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.113

                               INDEMNITY AGREEMENT

          This Indemnity Agreement is dated as of January 12, 2005, by and
between Pawnee Chilocco Gaming Corporation ("Pawnee"), a wholly-owned subsidiary
of the Pawnee Tribal Development Corporation ("Pawnee TDC"), each created under
the Constitution of and a governmental subdivision of the Pawnee Nation of
Oklahoma ("Pawnee Nation"), a federally recognized Indian tribe, located in the
State of Oklahoma, and Lakes Pawnee Management, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes"), whose business office is
located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                   WITNESSETH:

          WHEREAS, Lakes has entered into an agreement with Pawnee dated January
12, 2005 ("Management Contract"), pursuant to which Lakes is to manage the
Project's Gaming Facility and related Ancillary Facilities owned by Pawnee; and

          WHEREAS, Lakes and Pawnee have required the other to execute and
deliver this Indemnity Agreement to each other to induce Lakes to assist with
management of the Project Facilities and to induce Pawnee to allow Lakes to
comply with Environmental Laws in the management of the Project Facilities;

          NOW, THEREFORE, for valuable consideration, the receipt of which is
hereby acknowledged, Pawnee and Lakes agree as follows:

     1. RECITALS TRUE. The above recitals are true.

     2. DEFINITIONS. Capitalized terms used but not otherwise defined herein and
defined in the Management Contract shall have the same meaning herein as
therein. As used herein, the following additional terms shall have the following
meanings:

     (a) Environmental Laws: Together: (i) the Resource Conservation Recovery
Act, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C.
Sections 6901 et seq.; (ii) the Comprehensive Environmental Response,
Compensation and Liability Act, as amended by the Superfund Amendments and
Reauthorization Act, 42 U.S.C. Sections 9601 et seq.; (iii) the Clean Water Act,
33 U.S.C. Sections 466 et seq. and 33 U.S.C. Sections 1344 et seq.; (iv) the
Safe Drinking Water Act, 14 U.S.C. Sections 1401-1450; (v) the Toxic Substances
Control Act, 15 U.S.C. Sections 2601-2629; (vi) the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801 et seq.; (vii) all applicable
Oklahoma environmental laws; (viii) the Clean Air Act, 42 U.S.C. Sections 7401
et seq.; (ix) any other applicable federal, state, local or tribal environmental
laws or laws related to the regulation of Hazardous Materials; (x) any
applicable local, state or federal rules or regulations promulgated pursuant to
items (i) through (ix) and any similar local, state or federal laws, rules,
ordinances or regulations either in existence as of the date hereof, or enacted
or promulgated after the date of this Agreement, that concern the
transportation, storage, placement, handling, treatment, release, discharge,
generation, manufacture, production, disposal, management, control, discharge,
treatment, containment, and/or removal of substances or materials that are or
may become a threat to public health or the environment; or (xi) any common law
theory involving materials or substances which are or are alleged to be
hazardous to human health or the environment based on nuisance, trespass,
negligence, strict liability or other tortious conduct.

     (b) Hazardous Materials: Together: (i) any substance, material, or matter
that may give rise to liability under any Environmental Laws; (ii) any
"hazardous substance" listed in the U.S. Department of Transportation Table (49
C.F.R. 172.101), as the same may be amended from time to time; and (iii)
asbestos, lead paint, pcb's, urea formaldehyde foam insulation, radioactive
materials and any materials, the removal of which is required or the maintenance
of which is prohibited or penalized.


                                      -1-

<PAGE>

     (c) Lakes Indemnitee or Indemnitees: Lakes, its affiliates and subsidiaries
and any parent entities, together with their respective officers, directors,
shareholders, employees, agents, attorneys and other representatives, and their
successors and assigns. Each reference to any Lakes Indemnitee herein shall
refer jointly, severally and individually to each such party.

     (d) Pawnee Indemnitee or Indemnitees: Lakes, its affiliates and
subsidiaries and any parent entities, together with their respective officers,
directors, shareholders, employees, agents, attorneys and other representatives,
and their successors and assigns. Each reference to any Pawnee Indemnitee herein
shall refer jointly, severally and individually to each such party.

     (e) Project Claims: Any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, costs, expenses and disbursements (including,
but not limited to, all reasonable attorneys' fees and expenses and all other
professionals' or consultants' reasonable expenses incurred in investigating,
preparing for, serving as a witness in or defending against any action or
proceeding, whether actually commenced or threatened, which may be asserted
against any Lakes or Pawnee Indemnitee), arising from, in respect of, as a
consequence of, or in connection with any claims and matters (excluding
Environmental Losses) described in Sections 2.9, 7.1, 7.2, 7.3 and 7.4 of the
Management Contract, each whether now existing or hereafter arising.

     (f) Environmental Losses: Any and all liabilities, obligations, losses,
damages, penalties, claims, actions, suits, costs, expenses and disbursements
(including, but not limited to, all reasonable attorneys' fees and expenses and
all other professionals' or consultants' reasonable expenses incurred in
investigating, preparing for, serving as a witness in or defending against any
action or proceeding, whether actually commenced or threatened, which may be
asserted against any indemnitees), arising from, in respect of, as a consequence
of, or in connection with any of the following: (A) the remediation of any
Hazardous Material placed on or released from the Gaming Facility Site, Project
Facilities or the lands upon which they are located as may be required by law,
whether such removal is done or completed by Pawnee, Lakes, or any other person
or entity; (B) claims asserted at any time (prior to or after the date of this
Agreement) by any person or entity (including, without limitation, any
governmental agency or quasi-governmental authority, board, bureau, commission,
department, instrumentality or public body, court, or administrative tribunal (a
"Government Agency"), in connection with or in any way arising out of the
presence, storage, use, disposal, generation, transportation, or treatment of
any Hazardous Material on, in or under the Gaming Facility Site, Project
Facilities or the lands upon which they are located; (C) the violation or
claimed violation of any Environmental Laws in regard to the Gaming Facility
Site, Project Facilities or the lands upon which they are located; (D) the
preparation of an environmental audit on the Gaming Facility Site, Project
Facilities or the lands upon which they are located, whether conducted or
authorized by indemnitor, an indemnitee, or a third party; (E) the violation or
claimed violation of Oklahoma environmental laws, as a result of the condition
of the Gaming Facility Site, Project Facilities or the lands upon which they are
located, or any other applicable federal, state, local or tribal environmental
law or laws relating to the regulation of Hazardous Materials and the removal
from the Gaming Facility Site, Project Facilities or the lands upon which they
are located of paint, plaster, soil and other accessible material containing
levels of lead which are in violation of applicable law, each whether now
existing or hereafter arising.

     (g) Indemnified Obligations. With respect to Pawnee Indemnities, means the
Pawnee Project Indemnity Obligations and the Pawnee Environmental Indemnity
Obligations. With respect to Lakes Indemnities, means the Lakes Project
Indemnity Obligations and Lakes Environmental Indemnity Obligations.

     3. INDEMNITY.

     (a) Project Claims. Pawnee agrees to indemnify and to hold each Lakes
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or


                                      -2-

<PAGE>

incurred by, any of the Lakes Indemnitees resulting from or due to any Project
Claims excluding any such claims or losses resulting from a Lakes Indemnitee's
gross negligence or willful or criminal misconduct (individually and
collectively, the "Pawnee Project Indemnity Obligations"). Lakes agrees to
indemnify and to hold each Pawnee Indemnitee harmless from any and all claims,
causes of action, damages, penalties, fees and costs which may be asserted
against, or incurred by, any of the Pawnee Indemnitees resulting from Lakes'
gross negligence or willful or criminal misconduct (individually and
collectively, the "Lakes Project Indemnity Obligations").

     (b) Environmental Claims. Lakes agrees to indemnify and to hold each Pawnee
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or incurred by, any of
the Pawnee Indemnitees resulting from or due to any Environmental Losses arising
after the date of this Indemnity Agreement resulting from or due to Lakes' gross
negligence or willful or criminal misconduct (individually and collectively, the
"Lakes Environmental Indemnity Obligations"). Pawnee agrees to indemnify and to
hold each Lakes Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Lakes Indemnitees resulting from or due to any Environmental
Losses; excluding however any Environmental Losses arising after the date of
this Indemnity Agreement that result from Lakes gross negligence or willful or
criminal misconduct (individually and collectively, the "Pawnee Environmental
Indemnity Obligations").

     (c) Pawnee's duty to indemnify and hold harmless includes, but is not
limited to, loss or liability asserted in proceedings or actions commenced by
any person (including, but not limited to, any federal, state, or local
governmental agency or entity) before any court or administrative agency
asserting a claim for which Pawnee must indemnify Lakes Indemnitees under this
section. Lakes' duty to indemnify and hold harmless includes, but is not limited
to, loss or liability asserted in proceedings or actions commenced by any person
(including, but not limited to, any federal, state, or local governmental agency
or entity) before any court or administrative agency asserting a claim for which
Lakes must indemnify Pawnee Indemnitees under this section.

     (d) Each Lakes Indemnitee agrees that it shall not pay any Project Claim
asserted by any party without first offering Pawnee the opportunity and right to
assume the defense of any and all related actions or proceedings, but the
foregoing is not intended to restrict any Lakes Indemnitee's ability to obtain
reimbursement for any cost, expenses and related disbursements incurred in
connection with the investigation or defense of such claim or loss. Each Pawnee
Indemnitee agrees that it shall not pay any Project Claim asserted by any party
without first offering Lakes the opportunity and right to assume the defense of
any and all related actions or proceedings, but the foregoing is not intended to
restrict any Pawnee Indemnitee's ability to obtain reimbursement for any cost,
expenses and related disbursements incurred in connection with the investigation
or defense of such claim or loss.

     (e) Pawnee's obligations to indemnify and hold the Lakes Indemnitees
harmless hereunder shall survive any termination or expiration of the Management
Contract and the repayment and/or satisfaction of all obligations now or
hereafter owed by Pawnee to Lakes under the Management Contract and any other
instruments, documents or agreements related thereto. Lakes obligations to
indemnify and hold the Pawnee Indemnitees harmless hereunder shall survive any
termination or expiration of the Management Contract and the repayment and/or
satisfaction of all obligations now or hereafter owed by Lakes to Pawnee under
the Management Contract and any other instruments, documents or agreements
related thereto.

     4. ADVANCES UNDER OPERATING NOTE. Notwithstanding the foregoing and without
limiting the rights of Lakes under the Management Contract, all Project Claims
and Environmental Claims ultimately determined to be due from but not paid by
Pawnee on demand by any of the Lakes Indemnitees, shall be


                                      -3-

<PAGE>

deemed to be an Advance made by Lakes to Pawnee under the terms of the Operating
Note, shall accrue interest from the date incurred and shall continue to be
immediately due and payable. Notwithstanding the foregoing and without limiting
the rights of Pawnee under the Management Contract, all Project Claims and
Environmental Claims ultimately determined to be due from but not paid by Lakes
on demand by any Pawnee Indemnitees shall be deemed to be a prepayment made by
Pawnee to Lakes under the terms of the Operating Note; if the aggregate amount
of the Project Claims or Environmental Claims exceeds the outstanding balance of
the Operating Note, but only to the extent of the outstanding amount under the
Operating Note.

     5. OBLIGATION TO DEFEND.

     (a) Assumption of Defense. Upon request of any indemnitee, the indemnitor
shall be bound to defend any and all actions or proceedings that may be brought
against such indemnitee in connection with or arising out of any Indemnified
Obligations and the matters covered by this Agreement, and indemnitee shall give
written notice to the indemnitor of any litigation or proceedings pending,
threatened or commenced (whether or not served) against the indemnitee in
connection with any Indemnified Obligations. If indemnitor is defending an
indemnitee, indemnitor may settle the claim only with the indemnitee's prior
written consent, such consent not to be unreasonably withheld if the indemnitee
is not subject to any further liabilities, obligations, restrictions or
prohibitions with respect to said claim.

     (b) Delivery of Acknowledgment. Within 30 days from the date of receipt by
indemnitor from any indemnitee of a request to defend (which request shall refer
to such 30-day time period), indemnitor must acknowledge in a writing its duty
to defend and that such claim is covered in its entirety by this Agreement (the
"Acknowledgment") or if in the judgment of the indemnitor such claim is not
covered in its entirety by this Agreement, the statement of indemnitor to such
effect including its reasons for such judgment in reasonable detail; provided,
however, that until the Indemnitee receives the Acknowledgment, the Indemnitee
shall be entitled to defend such claim and Indemnitor shall be bound in the
manner set forth in Section 5(d) hereof.

     (c) Conduct of Defense; Participation by Indemnitee. If indemnitor is
defending an indemnitee, such defense shall be conducted by reputable attorneys
retained by indemnitor, reasonably satisfactory to said indemnitee, at
indemnitor's sole cost and expense. In addition, said indemnitee shall have the
right to participate in such proceedings at said indemnitee's sole cost and
expense and to be represented by attorneys in addition to the attorneys retained
by indemnitor of said indemnitee's own choosing and at said indemnitee's sole
cost and expense, except that if the Indemnitee reasonably concludes, by
applying applicable standards of professional responsibility, that the interests
of indemnitee and of indemnitor in the action conflict in such a manner as to
require retention of separate counsel for the indemnitee, indemnitor shall
reimburse indemnitee its reasonable fees for separate counsel chosen by the
indemnitee. Notwithstanding the foregoing, if an indemnitee, at any time,
refuses to enter into a settlement agreement negotiated by indemnitor or its
counsel, indemnitor shall no longer be liable for an adverse judgment against
such indemnitee to the extent that such adverse judgment exceeds said settlement
amount and such indemnitee shall be liable for all of its defense costs after
such refusal.

     (d) Indemnitor's Failure to Defend. If indemnitor fails to deliver the
Acknowledgment or fails to choose counsel reasonably satisfactory to the
indemnitee, indemnitor shall not thereafter be entitled to elect to defend such
action, and indemnitor shall be bound by and shall be conclusively liable for
the results obtained by the indemnitee, including without limitation the amount
of any judgment or good faith out-of-court settlement or compromise and all
costs and reasonable fees of counsel incurred by the indemnitee in connection
therewith, but subject always to the scope and limitations expressly set forth
in this Agreement.

     (e) Defense by Indemnitee. If an action or proceeding is brought against an
indemnitee or to which an indemnitee may be a party, and such indemnitee elects
to conduct its own defense because indemnitor fails to choose counsel reasonably
satisfactory to said indemnitee, indemnitor shall be conclusively


                                      -4-

<PAGE>

liable for the results obtained by the indemnitee, including without limitation
the amount of any judgment or good faith, out-of-court settlement or compromise.
In addition, indemnitor shall be liable for any and all costs and expenses,
including, but not limited to, all attorneys' fees, that said indemnitee incurs.

     6. ARBITRATION; LIMITED WAIVER OF SOVEREIGN IMMUNITY. Any disputes under
this Indemnification Agreement shall be subject to the dispute resolution and
arbitration provisions as provided in Article 10 of the Management Contract and
be resolved in the venues provided in Article 10 of the Management Contract.
Pawnee's limited waiver of sovereign immunity in Section 9.10 of the Management
Contract shall apply to this Agreement.

     7. LIMITED RECOURSE. The liability and obligations of Pawnee under or
relating to this Agreement shall always be Limited Recourse, and in no instance
shall any enforcement of any kind whatsoever be allowed against any assets of
Pawnee other than the limited assets of Pawnee specified in the definition of
the term "Limited Recourse" in the Management Contract.

     8. CAPTIONS, GENDER, AND NUMBER. Any section or paragraph, title or caption
contained in this Agreement is for convenience only and shall not be deemed a
part of this Agreement. As used in this Agreement, the masculine, feminine or
neuter gender, and the singular or plural number, shall each be deemed to
include the others whenever the context so allows.

     9. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of an
indemnitee in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power, right or privilege preclude any other or further exercise of any such
power, right of privilege. All powers, rights and privileges hereunder are
cumulative to, and not exclusive of, any powers, rights or privileges otherwise
available.

     10. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Oklahoma without giving effect to its
conflict of laws principles.

     11. AMENDMENTS, ASSIGNMENTS, ETC. Any provision of this Agreement may be
amended if, but only if, such amendment is in writing and is signed by each of
the parties hereto. No modification shall be implied from course of conduct.
This Agreement shall be binding on and inhered to the benefit of each of the
parties hereto and their respective successors and assigns, subject to the same
restrictions on assignability as set forth in the Management Contract. This
Agreement may be executed in separate counterparts and by facsimile and such
counterparts shall be deemed to constitute one binding document.

     12. NOTICES. Any notice or demand required to be given under this Agreement
shall be given in the same manner and shall be deemed effective in accordance
with the terms set forth in Section 9.3 of the Management Contract.

                 (Balance of this page intentionally left blank)


                                      -5-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Indemnity Agreement
to be executed under seal as of the 12th day of January, 2005

                                        Lakes Pawnee Management, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Kevin Kean
                                            ------------------------------------
                                        Name: Kevin Kean
                                              ----------------------------------
                                        Its:
                                             -----------------------------------


                                        Pawnee Chilocco Gaming Corporation


                                        By: /s/ Monty Matlock
                                            ------------------------------------
                                        Name: Monty Matlock
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Tommie Briggs
                                            ------------------------------------
                                        Name: Tommie Briggs
                                              ----------------------------------
                                        Its: Treasurer
                                             -----------------------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.114
<SEQUENCE>49
<FILENAME>c92713exv10w114.txt
<DESCRIPTION>GAMING OPERATINGS CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.114

                                GAMING OPERATIONS
                              CONSULTING AGREEMENT
                              (Lucky Eagle Casino)

     THIS GAMING OPERATIONS CONSULTING AGREEMENT (hereinafter referred to as the
"Agreement") is made as of the 19TH day of January, 2005 ("Effective Date") by
and between KTTT Enterprises ("Kickapoo"), a wholly-owned subsidiary of and a
governmental instrument of the Kickapoo Traditional Tribe of Texas ("Kickapoo
Tribe"), a federally recognized Indian tribe, and Lakes Kickapoo Consulting,
LLC, a Minnesota limited liability company ("Lakes").

                                    RECITALS

     A. The Kickapoo Tribe is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a wholly-owned subsidiary and governmental instrument of the
Kickapoo Tribe, Kickapoo is vested with the sovereign immunity of the tribe, and
the Kickapoo Tribe has established Kickapoo as the legal entity which will own
and operate any gaming projects which are to be developed by the Kickapoo Tribe.

     B. Kickapoo, on behalf of the Kickapoo Tribe, operates an established
gaming operation, known as the Kickapoo Lucky Eagle Casino, located near Eagle
Pass, Texas ("Gaming Facility," as further defined herein). This Gaming Facility
conducts Class II Gaming (and will conduct Class III Gaming activities in the
event of federal agency approval of a Tribal-State Compact between the Kickapoo
Tribe and the State of Texas permitting such gaming).

     C. The Gaming Facility has achieved less than desired business results and
Kickapoo desires immediate consulting services to help turn around the
performance of the Gaming Facility.

     D. The Gaming Facility, together with related amenities such as a hotel,
conference/convention facilities, food and beverage facilities, retail outlets,
golf course, and ancillary building and enterprises that enhance the Gaming
Facility ("Ancillary Facilities," as further defined herein) (the Gaming
Facility and the Ancillary Facilities together, the "Project Facilities") are
intended to generate substantial revenues for the Kickapoo Tribe and therefore
significantly improve the social, economic and health conditions of present and
future tribal members, while strengthening the Kickapoo Tribe's overall economic
self-sufficiency and self-determination.

     E. Lakes has the requisite skills, resources, experience, and expertise
related to operations of gaming facilities and related amenities to assist
Kickapoo in connection with the operations of the Project Facilities.

     F. Kickapoo presently lacks the operational expertise to improve the
business performance of its existing Project Facilities, and desires to retain
the services of the Lakes as set forth herein.


                                       -1-

<PAGE>

     G. For the compensation set forth herein, Lakes wishes to provide the
following services to Kickapoo as more fully set forth herein: (1) consulting
services in connection with the operations of the existing Project Facilities.

     H. Kickapoo desires to grant to Lakes the exclusive right to consult in
connection with operations of Kickapoo's Project Facilities as set forth in this
Agreement, and Lakes desires to undertake those responsibilities in accordance
with this Agreement. Kickapoo also desires to grant to Lakes the right to
participate in any other gaming project opportunity Kickapoo pursues in the
State of Texas under the same terms and conditions described herein.

     I. Kickapoo and Lakes intend that this Agreement shall be operative and
binding upon the date of execution by the parties ("Effective Date") and shall
supersede and replace the parties prior Gaming Operations Consulting and
Development Agreement dated December 29, 2004.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Kickapoo and
Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Agreement" means this Gaming Operations Consulting Agreement, as it may be
amended, supplemented, restated or replaced from time to time.

     "Adjusted Gross Revenues" " means, with respect to the Project Facilities
and any period of time, all revenues of any nature derived directly or
indirectly from the operation of the Project Facilities and permitted under GAAP
to be included in the Project Facilities' total revenues for that period, less
any credits or refunds made to customers, guests, or patrons of the Project
Facilities, not considered a Cost of Operations and not applied in any prior
period to reduce Revenues and any revenue sharing amounts paid to gaming machine
vendors pursuant to valid financing agreements. "Adjusted Gross Revenues" shall
not include (i) any gratuities or service charges added to the bill of a
customer, guest or patron of the Project Facilities and payable to employees of
the Project Facilities, (ii) promotional allowances for which there is a direct
offsetting item treated as a Cost of Operations, (iii) any sales, excise, gross
receipt, admission, entertainment, tourist or other taxes or charges (or
assessments equivalent thereto, or payments made in lieu thereof) that are
received from a customer, guest or patron and passed on to


                                       -2-

<PAGE>

governmental or quasi-governmental entities unrelated to the Kickapoo Tribe,
(iv) any lawful federal, state, or local taxes or impositions (including any
payment or fee in lieu of the foregoing) that are collected from patrons of or
vendors to the Project Facilities, (v) proceeds of indebtedness of the Kickapoo
Tribe, and (vi) proceeds from insurance or condemnation (other than proceeds of
business interruption insurance and other proceeds received to reimburse the
Project Facilities for any item accounted for under GAAP as a Cost of
Operations); (vii) any revenue sharing amounts paid to gaming machine vendors
pursuant to valid financing agreements.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, golf course, special events center, and any
other enterprise designed to promote, support, or enhance the Gaming Facility.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Capital Expenditures" means any expenditure that is considered a capital
expenditure under GAAP and also exceeds $5,000.

     "Claim" means any dispute, claim, question, or disagreement between
Kickapoo and Lakes or any Affiliate of Lakes that is directly or indirectly
related to this Agreement, any KTTT Note or the Project Facilities, whether
arising under law or in equity, whether arising as a matter of contract or a
tort, and whether arising during or after the expiration of this Agreement or
the maturity of any KTTT Note.

     "Class II Gaming" means class II gaming as defined in IGRA.

     "Class III Gaming" means class III gaming as defined in IGRA.

     "Collateral" is defined in Section 3.1(a).

     "Compact" means any Tribal-State Compact executed between the Kickapoo
Tribe and the State of Texas entered into and approved by the Secretary of the
United States Department of Interior either before or after the Effective Date
of this Agreement, and any amendments or modifications thereto.

     "Costs of Operations" means, with respect to any period of time occurring
on or after the Effective Date, the total of all costs required under GAAP to be
treated as operating expenses of the Project Facilities, including but not
limited to the following (so long as they constitute such expenses):

          (a) all fees imposed upon the Gaming Facility by the NIGC;

          (b) all amounts required to be paid to the State pursuant to a Compact
     or all amounts required to be paid to any local governmental entity under
     any agreement to mitigate off-reservation impacts related to the Gaming
     Facility;


                                       -3-

<PAGE>

          (c) license or other fees for background investigations performed by
     the Gaming Commission of "key employees" and "primary management officials"
     of the Gaming Facility, as defined in 25 C.F.R. Section 502.14 and 25
     C.F.R. Section 502.19, less any amounts collected from employees for those
     fees, provided, however, such amounts allocable hereunder shall not exceed
     $25 per employee per any 12 month period (although the Gaming Commission
     may charge employees more for such licenses or fees); and reasonable and
     customary regulatory fees imposed on the Gaming Facility by the Gaming
     Commission (which amounts shall be subject to an annually approved budget
     submitted by the Gaming Commission).

          (d) depreciation and amortization expenses computed over reasonable
     periods permitted under GAAP and as further set forth below; and

          (e) to the extent properly allocable to the operation of the Project
     Facilities under GAAP, the following:

               (1) costs of administration, recruiting, hiring, firing and
          training employees;

               (2) compensation and benefits of employees;

               (3) interest charges on indebtedness (including the Project
          Permanent Financing) related to the Project Facilities; and

               (4) all other expenses, including, without limitation, those
          incurred for materials, supplies, inventory, utilities, repairs and
          maintenance (excluding Capital Expenditures), insurance and bonding,
          marketing, advertising, annual audits, accounting, legal or other
          professional and consulting, surveillance/security or guard services;

provided however, that "Costs of Operations" do not include repayment of
principal or Capital Expenditures or capital leases; and notwithstanding the
foregoing, for purposes of this definition of Costs of Operations, depreciation
for personal property shall be determined on a straight-line basis over a period
of five (5) years from the date such property is placed in service, and
depreciation for real property, including improvements and buildings shall be
determined on a straight-line basis over a period of thirty (30) years.

     "Effective Date" means the date the parties execute this Agreement.

     "Equipment Contract" means any contract to finance or acquire equipment or
property for use in connection with the Project Facilities, whether constituting
or characterized as a loan or credit agreement, purchase agreement, financing
lease, capital lease, participating lease, license or otherwise.

     "Equipment Vendor" means any Person that sells, leases or licenses personal
property to Kickapoo for use in connection with the Project Facilities.


                                       -4-

<PAGE>

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project Facilities, including,
without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project Facilities for accessory purposes, including equipment for
     kitchens, laundries, dry cleaning, cocktail lounges, restaurants, public
     rooms, commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project Facilities); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project Facilities.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession.

     "Gaming Commission" means any tribal commission or body of the Kickapoo
Tribe that is lawfully performing the obligations and exercising the rights of
the tribal gaming regulatory agency established pursuant to the Kickapoo Tribe's
Gaming Ordinance.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming conducted at the Kickapoo Lucky Eagle
Casino, located near Eagle Pass, Texas.

     "Gaming Operation" means a "gaming operation" as defined in NIGC
regulations, 25 C.F.R.Section 502.10.

     "Gaming Ordinance" means any valid gaming ordinance of the Kickapoo Tribe
that is in effect for purposes of and to the extent required by IGRA or the
Compact.

     "Governmental Authority" means the United States, the BIA, the State, the
Kickapoo Tribe and any governmental court, agency, department, commission,
board, bureau or instrumentality of the foregoing (including the NIGC), but only
to the extent it has legal jurisdiction over Class II Gaming or Class III Gaming
at the Gaming Facility, the construction of


                                       -5-

<PAGE>

the Project Facilities, operation of the Project Facilities, or Kickapoo's or
Lakes' obligations under this Agreement or any KTTT Note.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "KTTT Event of Default" is defined in Section 8.3.

     "KTTT Note and KTTT Notes" are defined in Section 3.1(a).

     "Lakes" means Lakes Kickapoo Consulting, LLC, a Minnesota limited liability
company and a wholly owned subsidiary of Lakes Gaming and Resorts, LLC.

     "Lakes Event of Default" is defined in Section 8.1.

     "Legal Requirements" means the Compact and all present and future federal,
State, Tribe and local laws, ordinances, rules, regulations, permits, licenses
and certificates, and any and all present and future orders of courts and
administrative bodies of competent jurisdiction, applicable to the Project, the
Project Facilities, this Agreement, or any KTTT Note.

     "Management Contact" means a management contract as defined in IGRA.

     "Material Breach" by any party means (a) a material failure of the party to
perform a material obligation under this Agreement for reasons not excused under
Section 11.5 (Force Majeure); or (b) any material representation or warranty of
a party made in this Agreement proves to be knowingly false or erroneous in any
material way when made or at any time shall fail to be true and correct in all
material respects.

     "Monthly Consulting Fixed Fee" means the compensation to Lakes as described
in Section 5.1 herein.

     "NIGC" means the National Indian Gaming Commission established by IGRA.

     "Opening Date" means the first day on which the Gaming Facility is open to
the public for the conduct of Class II Gaming and/or Class III Gaming following
the Effective Date of this Agreement.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project Facilities" means the Gaming Facility and the Ancillary Facilities

     "Proprietary Interest" means proprietary interest in a Gaming Operation
within the meaning of IGRA.


                                       -6-

<PAGE>

     "State" means the State of Texas.

     "Term" of this Agreement is defined in Section 9.1.

     "Tribal Agreement" shall mean the agreement between the Kickapoo Tribe and
Lakes or its Affiliate as described in Section 6.2(n).

                                    ARTICLE 2
                    BUSINESS TURN-AROUND CONSULTING SERVICES

     Section 2.1 Project Facilities Operations Consulting. In connection with
operations of the Project Facilities, Lakes shall assist Kickapoo in its
operations of the Project Facilities by providing consulting services to
Kickapoo related to establishing and implementing improved and upgraded gaming
and ancillary systems in the following areas: making recommendations to Kickapoo
as to: (a) general Gaming Operations, (b) electronic gaming device operations,
(c) table game operations if permitted, (d) cage, vault and count room
operations, (e) surveillance department operations, (f) security department
operations, (g) marketing and advertising, (h) food and beverage operations, (i)
human resources, (j) facilities and maintenance (including waste water
treatment), (k) finance, (l) information systems, (m) transportation and Project
Facilities access, and (n) other tribal economic development opportunities and
strategies. Lakes shall continue to provide the Project Facilities operations
consulting services as described above until either this Agreement expires or is
properly terminated. At all times, Kickapoo shall have the sole proprietary
interest in and management responsibility for the conduct of all Gaming
Operations conducted at the Gaming Facility during the period Lakes is providing
operations consulting services under this Agreement.

     Section 2.2 Cooperative Efforts. Both parties to this Agreement shall
exercise their best efforts to fully cooperate with each other in the
performance of the operations consulting services to be rendered hereunder;
provided, however, that it shall be within the sole discretion of Kickapoo to
determine whether or not to act upon or implement the technical assistance,
consultation or advice provided by Lakes.

     Section 2.3 No Management Services Provided. The parties expressly
acknowledge that this Agreement is for consulting services only and that Lakes
shall not engage in any management activities or perform any management services
hereunder with respect to the Project Facilities' operations. The parties
expressly acknowledge that the decision to adopt, approve or implement any
proposal, suggestion or recommendation made by Lakes in connection with its
operations consulting services shall rest exclusively with Kickapoo.

     Section 2.4 Exclusive Right to Develop and Consult. Kickapoo hereby grants
to Lakes the exclusive right to provide consulting services (and to assist in
the financing, development, construction, and equipping) in connection with
operations of any Class II Gaming and/or Class III Gaming facility and any
ancillary facilities enhancing such gaming facility operated by Kickapoo in the
State of Texas, including a hotel, any conference/convention facilities, food
and beverage outlets, retail outlets, golf course, and any other enterprise
designed to promote, support, or enhance such gaming facility.


                                       -7-

<PAGE>

     Section 2.5 Equipment Contracts. Lakes will assist in the selection,
ordering, expediting, and installation of furniture, fixtures and equipment
required for the Project Facilities. Lakes shall propose to Kickapoo for its
approval one or more contractors to provide equipment or personal property for
use in connection with operations of the Project Facilities, (the "Equipment
Contractor"). As soon as reasonably practical, Kickapoo shall either approve or
reject each proposed Equipment Contractor. In the case of a rejection, the
process shall be repeated until Kickapoo has approved a Equipment Contractor
proposed. Once the Equipment Contractor has been approved by Kickapoo, Lakes
shall negotiate and propose to Kickapoo for its approval one or more forms of
agreements for execution by Kickapoo to engage the Equipment Contractor (the
"Equipment Contract").

                                    ARTICLE 3
                           BUSINESS IMPROVEMENTS LOAN

     Section 3.1 Business Improvements Loan. Subject to the terms and conditions
in this Article 3, Lakes shall make advances if needed from time to time to
Kickapoo with respect to certain improvements to the Project Facilities designed
to assist business turn-around (collectively the "Business Improvements Loan")
in an amount to be agreed to by the parties, but not to exceed $2,000,000. Lakes
shall have no obligation to advance any funds under the Business Improvements
Loan in excess of the amount agreed to by the parties. Lakes' obligation to
advance funds to Kickapoo under the Business Improvements Loan shall be subject
to each of the following requirements:

     (a)  All advances made pursuant to the Business Improvements Loan shall be
          evidenced by one or more promissory notes prepared by Lakes,
          substantially in the form attached as EXHIBIT A to this Agreement
          ("KTTT Note"), in each case executed on behalf of Kickapoo, and dated
          the date of the applicable loan (collectively the "KTTT Notes"), to be
          payable from and secured by a pledge in (i) all Adjusted Gross
          Revenues from the Project Facilities or any other gaming project and
          any ancillary facilities related thereto owned directly or indirectly
          by Kickapoo or the Kickapoo Tribe; (ii) the Furnishing and Equipment
          of the Project Facilities or any other gaming project and any
          ancillary facilities related thereto owed directly or indirectly by
          Kickapoo or the Kickapoo Tribe; and (iii) any fee lands upon which the
          Project Facilities are located (collectively, the "Collateral"). In no
          event shall Lakes have recourse to Adjusted Gross Revenue
          distributions already received by Kickapoo from the Project Facilities
          and made to the Kickapoo Tribe in accordance with this Agreement
          and/or any applicable dominion account agreement.

     (b)  If the principal amount of the KTTT Note is exceeded by any pending
          advance on the Business Improvements Loan, prior to such advance being
          made and prior to Lakes having any obligation to fund such advance,
          Kickapoo shall execute and deliver to Lakes either (i) an amendment to
          such KTTT Note, increasing the principal amount of the note by an
          amount at least equal to the pending advance,


                                       -8-

<PAGE>

          or (ii) an additional KTTT Note with a principal amount at least equal
          to the principal amount of the pending advance, as determined by
          Lakes.

     (c)  Amounts advanced from time to time as part of the Business
          Improvements Loan shall bear interest, from the date of advance, at
          the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or any
          successor bank) plus two percent (2%).

     (d)  Unless otherwise agreed by the parties in writing, all principal and
          interest accrued on the Business Improvements Loan shall become due
          and payable in thirty-six (36) equal monthly installments beginning on
          the 25th day of the first full calendar month following twelve (12)
          months after the date the first loan advance is made (the "Maturity
          Date"), which payments shall be adjusted from time to time as
          necessary to fully repay all principal, plus accrued interest thereon,
          by the Maturity Date. Notwithstanding the foregoing, Business
          Improvements Loan shall become due and owing in its entirety upon (i)
          the occurrence of a KTTT Event of Default under Section 8.3, which
          default is either incapable of cure or has not been cured within the
          time period set forth in Section 8.4, or (ii) termination of this
          Agreement under Section 9.3.

     (e)  The Business Improvements Loan may be prepaid without penalty by
          Kickapoo at any time, in whole or in part, together with accrued and
          unpaid interest thereon.

     (f)  No amounts shall be loaned under the Business Improvements Loan in
          excess of the amount agreed to by the parties, unless Lakes in its
          sole discretion agrees to advance such funds.

     (g)  The Business Improvements Loan, together with interest thereon, shall
          be payable from and secured by a pledge of the Collateral.

          To that end, Kickapoo hereby pledges and grants a security interest in
          the Collateral to Lakes to secure Kickapoo's obligations under this
          Agreement and under the KTTT Notes, further agrees to entered into
          standard and customary dominion account agreements/security
          agreements/mortgages or deeds of trust necessary to evidence and
          effectuate such liens, and authorizes Lakes to file those financing
          statements and similar documents and agreements as Lakes may believe
          appropriate to perfect such liens.

     (h)  Notwithstanding anything to the contrary in this Article 3, Lakes
          shall not be obligated to fund any advances on the Business
          Improvements Loan after the earliest of:

          (i)  the second anniversary of the first advance under the Business
               Improvements Loan;

          (ii) the failure of Kickapoo to cure, within the time prescribed in
               this Agreement, any default under this Agreement, any KTTT Note,
               or any related documents or agreements for which Kickapoo
               receives written notice;


                                       -9-

<PAGE>

          (iii) sixty (60) days after written notice by Lakes that a reasonable
               basis exists for concluding that this Agreement or the operation
               of the Project's Gaming Facility is not lawful;

          (iv) any determination by Lakes that a reasonable basis exists for
               concluding that any material terms of this Agreement or the KTTT
               Notes are not valid or binding obligations of the Kickapoo; and

          (v)  any reasonable determination by Lakes (which may be based on the
               advice of legal counsel) that any representations contained in
               Section 6.2 are not true and correct.

          (vii) the commencement of any litigation which, in the reasonable
               determination of Lakes, has a reasonable likelihood of preventing
               operations of the Project Facilities for more than three (3)
               months after the Effective Date of this Agreement.

                                    ARTICLE 4
                       CONDITIONS PRECEDENT TO OBLIGATIONS

     Section 4.1 Conditions Precedent to First Advance of the Business
Improvements Loan or to Perform any Obligations. Notwithstanding Sections 2.1 or
3.1, Lakes is not required to make any advance under the Business Improvements
Loan or perform any obligations under this Agreement until Lakes receives each
of the following in form and substance reasonably satisfactory to Lakes:

     (a)  copy of tribal laws in a form sufficient as determined by Lakes to
          perfect the security interests and liens granted to it hereunder;

     (b)  copy of one or more resolutions of the governing bodies of Kickapoo
          and the Kickapoo Tribe authorizing and ratifying the adoption, or the
          execution, delivery and performance by the Kickapoo Tribe or Kickapoo,
          as applicable, of (i) the Compact (if in effect), (ii) the Gaming
          Ordinance, (iii) this Agreement, and (iv) the KTTT Notes and related
          documents and security instruments;

     (c)  original of any license(s) required by any Government Authority for
          the Lakes services (as described in this Agreement) in connection with
          the operations of the Project Facilities;

     (d)  an opinion of an attorney for Kickapoo in form reasonably satisfactory
          to Lakes to the effect that (i) this Agreement, the KTTT Notes, and
          any security instruments to be executed by Kickapoo in connection with
          this Agreement will be valid, binding and perfected obligations of
          Kickapoo, enforceable in accordance with their terms, (ii) the
          Kickapoo Tribe is an Indian tribe within the meaning of IGRA, (iii)
          each of the actions of Kickapoo or Kickapoo Tribe, as applicable,
          referred to above in this Section have been validly taken by Kickapoo
          or


                                      -10-

<PAGE>

          Kickappo Tribe and is in full force and effect, (iv) the Kickapoo
          Tribe is legally permitted to conduct Class II Gaming (and Class III
          Gaming in the event of a Compact) activities in the State under all
          Legal Requirements, (v) the site for the Gaming Facility constitutes
          "Indian lands" upon which the Kickapoo Tribe may legally conduct
          gaming under IGRA, and (vi) The Kickapoo Tribe has entered into an
          agreement with Lakes or its Affiliate which (i) confirms that all
          gaming and related project facilities of the Kickapoo Tribe will be
          owned and operated by Kickapoo or another subsidiary of the Kickapoo
          Tribe, (2) grants Lakes or its Affiliate the right to participate in
          any gaming projects owned and operated by Kickapoo or another
          subsidiary of the Kickapoo Tribe under the same terms and conditions
          described in this Agreement, and (3) contains representations,
          warranties and covenants substantially similar to those contained in
          Articles 6 and 7 hereof, insofar as applicable; and with respect to
          such agreement, the same constitutes valid, binding and enforceable
          obligations of the Kickapoo Tribe, enforceable in accordance with
          their terms.

     (e)  a letter from the NIGC determining that the site for the Gaming
          Facility constitutes "Indian lands" upon which the Kickapoo Tribe may
          legally conduct gaming under IGRA

                                    ARTICLE 5
                      COMPENSATION FOR CONSULTING SERVICES

     Section 5.1 Consulting Services Compensation. For its services under this
Agreement, Lakes shall receive a fee equal to a flat fee of $100 per month for
eighty-four (84) months in accordance with the payment terms described in
Section 5.2 below ("Monthly Consulting Fixed Fee")

     Section 5.2 Terms of Payment. The Monthly Consulting Fixed Fee shall be
earned but not paid during the first twelve (12) months of this Agreement.
Thereafter, the Monthly Consulting Fixed Fee shall be due and paid commencing on
the 25th day of the following calendar month, and become due and payable on the
25th day of each successive month. Any unpaid Monthly Consulting Fixed Fees
accrued during the first twelve (12) months of this Agreement shall be paid in
equal monthly installments amortized over the remaining six (6) years term of
this Agreement.

     Section 5.3 Consulting Fee Security. To secure payment of the Monthly
Consulting Fixed Fees, Kickapoo hereby pledges and grants a security interest to
the extent permitted in all Collateral to Lakes to secure Kickapoo's obligations
under this Agreement in connection with payment of the Monthly Consulting Fixed
Fees, further agrees to enter into standard and customary dominion account
agreements/security agreements/mortgages or deeds of trust necessary to evidence
and effectuate such liens, and authorizes Lakes to file those financing
statements and similar documents and agreements as Lakes may believes
appropriate to perfect such liens.


                                      -11-

<PAGE>

                                    ARTICLE 6
                         REPRESENTATIONS AND WARRANTIES

     Section 6.1 Representations and Warranties of Lakes. Lakes represents and
warrants to Kickapoo that:

     (a)  Organization. Lakes is a limited liability company duly formed and
          validly existing under the laws of the State of Minnesota.

     (b)  Authority. Lakes has the full legal right and authority to enter into
          this Agreement, to perform its obligations under this Agreement, and
          to consummate all other transactions contemplated by this Agreement.

     (c)  Binding Obligation. This Agreement has been duly executed and
          delivered by Lakes and constitutes a legal, valid and binding
          obligation of Lakes, enforceable against Lakes in accordance with its
          terms, except as enforceability may be limited by future bankruptcy,
          insolvency or similar proceedings, limitations on rights of creditors
          generally and principles of equity, and assuming such agreements are
          binding against the other parties thereto.

     (d)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Lakes,
          threatened against Lakes, its Affiliates, or any of its assets or
          properties that could have a material adverse effect on its ability to
          enter into or perform this Agreement.

     (e)  No Violation or Conflict. The execution, delivery and performance by
          Lakes of this Agreement does not violate any Legal Requirement
          applicable to Lakes, other than a violation that shall not materially
          adversely affect the Project or Kickapoo's obligations or rights under
          this Agreement. The execution, delivery and performance of this
          Agreement does not conflict with or result in any breach of any
          provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon any asset of Lakes under, or
          result in the acceleration of any obligation under the terms of any
          agreement or document binding upon Lakes, other than a conflict,
          breach, default or imposition that shall not materially adversely
          affect any particular Project or Kickapoo's obligations or rights
          under this Agreement.

     (f)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Lakes is required
          for Lakes to execute, deliver and perform its obligations hereunder;
          provided that Lakes makes no representation or warranty with respect
          to any consent that may be required by the Gaming Commission,
          Kickapoo, the Kickapoo Tribe, NIGC or BIA.


                                      -12-

<PAGE>

     (g)  Full Disclosure. No representation or warranty of Lakes in this
          Agreement and no report or statement delivered to Kickapoo by or on
          behalf of Lakes, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading.

     (h)  Financial Capacity. Lakes has the financial capacity to finance any
          and all amounts necessary in order to comply with Lakes' commitment to
          provide the Business Improvements Loan under Article 3 hereof, and
          the provision of such financing will not result in Lakes becoming
          insolvent or otherwise being unable to pay its debts as they become
          due.

     (i)  Brokers' Fees and Other Fees and Expenses. Except for the letter
          agreement dated August 20, 2004 with Kevin Kean and the definitive
          consulting agreement to be negotiated and executed as contemplated
          thereunder, neither Lakes nor any of its Affiliates has as of the
          Effective Date of this Agreement engaged, nor has any liability or
          obligation to pay any fees, commissions or expenses with respect to,
          any broker, finder or agent, investment banker, or any similar advisor
          or services provider, with respect to or in connection with the
          transactions contemplated by this Agreement for which Lakes or its
          Affiliates could become liable or obligated, and neither Kickapoo nor
          any of its Affiliates has any liability or obligation to pay any of
          such amounts.

     Section 6.2 Representations and Warranties by Kickapoo. Kickapoo represents
and warrants to Lakes that:

     (a)  Organization. Kickapoo is a wholly-owned subsidiary of and a
          governmental instrument of the Kickapoo Tribe, which is an Indian
          tribe eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Kickapoo has taken all action required by tribal
          law without the necessity of further action to authorize the
          execution, delivery and performance of this Agreement, all KTTT Notes
          and related security documents and instruments described herein.
          Kickapoo has all requisite power and authority to enter into this
          Agreement, all KTTT Notes, and related security documents and
          instruments described herein to perform its obligations under this
          Agreement, all KTTT Notes, and related security documents and
          instruments described herein, and to consummate all other transactions
          contemplated by this Agreement, the KTTT Notes and related security
          documents and instruments described herein.

     (c)  Binding Obligations. Each of this Agreement (including but not limited
          to, the waiver of sovereign immunity in Article 10), the KTTT Notes
          and related security documents and instruments described herein has
          been duly executed and delivered by Kickapoo and is a legal, valid,
          binding and perfected obligation of Kickapoo, enforceable against
          Kickapoo in accordance with its terms, except as


                                      -13-

<PAGE>

          enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The site for the Gaming Facility constitutes
          "Indian lands" upon which the Kickapoo Tribe may legally conduct
          gaming under IGRA.

     (e)  Gaming Permitted. The Kickapoo Tribe is legally permitted to conduct
          Class II Gaming (and Class III Gaming in the event of a Compact)
          activities in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Kickapoo Tribe and the State and
          approved and published by the Secretary of the United States
          Department of the Interior, the Compact will be in effect and will be
          a valid and binding obligation of the Kickapoo Tribe. Kickapoo will
          then have the right to engage in Class III Gaming at the Gaming
          Facility to be operated by the Kickapoo in connection with this
          Agreement to the extent set forth in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes to enter into this
          Agreement and perform its obligations under this Agreement have been
          granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Kickapoo or Kickapoo Tribe or affecting either the site of
          the Gaming Facility or the Project Facilities, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect the Project Facilities
          or Lake's obligations or rights under this Agreement, any KTTT Note
          and related security documents and instruments described herein.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          Kickapoo of this Agreement, any KTTT Note and related security
          documents and instruments described herein does not violate any Legal
          Requirements. The execution, delivery and performance of this
          Agreement, any KTTT Note and related security documents and
          instruments described herein by Kickapoo does not conflict with or
          result in any breach of any provision of, or constitute a default
          under, or result in the imposition of any lien or charge upon any
          asset of Kickapoo under, or result in the acceleration of any
          obligation under the terms of any agreement or document binding upon
          Kickapoo, other than a conflict, breach, default or imposition as
          shall not materially adversely affect the Project Facilities or Lake's
          obligations or rights under this Agreement, any KTTT Note and related
          security documents and instruments described herein.

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of
          Kickapoo, threatened, against Kickapoo or the Kickapoo Tribe, or any
          of the assets or properties of Kickapoo,


                                      -14-

<PAGE>

          that could have a material adverse effect on the Project Facilities,
          Kickapoo's ability to enter into or perform this Agreement or Lakes'
          obligations or rights under this Agreement, any KTTT Note and related
          security documents and instruments described herein.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Kickapoo is required
          to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of Kickapoo in this
          Agreement and no report or statement delivered to Lakes by or on
          behalf of Kickapoo, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading. Kickapoo has fully disclosed the existence and
          terms of all agreements and Legal Requirements, written or oral,
          relating to the Project Facilities.

     (m)  No Tribal Tax. Neither the Project Facilities nor the transaction(s)
          between the parties contemplated by this Agreement, the KTTT Notes,
          and any related security documents and instruments described herein
          are now, or at any time during the term of this Agreement will be,
          subject to any tribal tax of any sort other than (i) reasonable
          pass-through taxes on Project Facilities patrons which are consistent
          with gaming resort industry practices, and (ii) license or other fees
          for background investigations performed by the Gaming Commission of
          "key employees" and "primary management officials" of the Gaming
          Facility, as defined in 25 C.F.R.Section 502.14 and 25 C.F.R. Section
          502.19, and reasonable and customary regulatory fees imposed on the
          Gaming Facility by the Gaming Commission (which amounts shall be
          subject to an annually approved budget submitted by the Gaming
          Commission).

     (n)  Tribal Agreement. The Kickapoo Tribe has entered into an agreement
          with Lakes or its Affiliate which (i) confirms that all gaming and
          related project facilities of the Kickapoo Tribe will be owned and
          operated by Kickapoo or another subsidiary of the Kickapoo Tribe, (2)
          grants Lakes or its Affiliate the right to participate in any gaming
          projects owned and operated by Kickapoo or another subsidiary of the
          Kickapoo Tribe under the same terms and conditions described in this
          Agreement, and (3) contains representations, warranties and covenants
          substantially similar to those contained in Articles 6 and 7 hereof,
          insofar as applicable; and with respect to such agreement, the same
          constitutes valid, binding and enforceable obligations of the Kickapoo
          Tribe, enforceable in accordance with their terms.


                                      -15-

<PAGE>

                                    ARTICLE 7
                                    COVENANTS

     Section 7.1 Covenants of Lakes. Lakes covenants and agrees as follows:

     (a)  Additional Documents. Lakes shall execute any additional instruments
          as may be reasonably required by Kickapoo to carry out the intent of
          this Agreement or to perfect or give further assurances of any of the
          rights granted or provided for under this Agreement.

     Section 7.2 Covenants of Kickapoo. Kickapoo covenants and agrees as
follows:

     (a)  Additional Documents. Kickapoo shall execute any additional
          instruments as may be reasonably required by Lakes to carry out the
          intent of this Agreement or to perfect or give further assurance of
          any of the rights granted or provided for under this Agreement or any
          KTTT Note, including execution of the related security documents and
          instruments described herein.

     (b)  Non-Impairment. Neither Kickapoo nor the Kickapoo Tribe shall enact
          any law, ordinance, rule or regulation impairing the rights or
          obligations of Kickapoo or Lakes under this Agreement or under any
          contracts entered into by Kickapoo or impairing the rights and
          obligations of Lakes in furtherance of the equipping or operations of
          the Project Facilities, including but not limited to this Agreement
          and any contract or agreement entered into or contemplated by this
          Agreement.

     (c)  Records. Kickapoo shall maintain or cause to be maintained full and
          accurate accounts and records for the Project Facilities according to
          GAAP.

     (d)  No Liens. Unless Lakes otherwise consents in writing, Kickapoo shall
          not cause or voluntarily permit any lien or encumbrance to be created
          on the Project Facilities, the site for the Gaming Facility or any
          proceeds of the Business Improvements Loan.

     (e)  No Tax. Neither Kickapoo nor the Kickapoo Tribe shall impose any tax,
          fee or assessment on Lakes, the Project Facilities, this Agreement,
          the KTTT Notes, and any related security documents and instruments
          described herein other than (i) reasonable pass-through taxes on
          Project patron which are consistent with gaming resort industry
          practices, and (ii) license or other fees for background
          investigations performed by the Gaming Commission of "key employees"
          and "primary management officials" of the particular Project's Gaming
          Facility, as defined in 25 C.F.R. Section 502.14 and 25 C.F.R. Section
          502.19, and reasonable and customary regulatory fees imposed on the
          Gaming Facility by the Gaming Commission (which amounts shall be
          subject to an annually approved budget submitted by the Gaming
          Commission).


                                      -16-

<PAGE>

                                   ARTICLE 8
                                EVENTS OF DEFAULT

     Section 8.1 Events of Default by Lakes. Each of the following occurring
prior the date on which the Project has been substantially completed shall
constitute a "Lakes Event of Default":

     (a)  A Material Breach by Lakes.

     (b)  Lakes violates any of the covenants in Section 7.1 of this Agreement,
          and sixty (60) days have passed following a request by Kickapoo to
          Lakes to cure the violation, during which the violation has not been
          cured.

     (c)  Subject to Section 8.3, any license, permit or approval required to be
          received or maintained by Lakes to perform its obligations under this
          Agreement is denied, suspended, or revoked by proper and reasonable
          action of any state or federal Governmental Authority, and all rights
          to appeal or review the action have been exhausted.

     (d)  Lakes or any Affiliate of Lakes material to the Project Facilities
          has: (i) filed for relief under the United States Bankruptcy Code or
          has suffered the filing of an involuntary petition under the
          Bankruptcy Code that is not dismissed within sixty (60) days after
          filing; (ii) a receiver appointed to take possession of all or
          substantially all of the property of Lakes or any Affiliate of Lakes
          material to the Project Facilities ; or (iii) suffered an assignment
          for the benefit of creditors.

     Section 8.2 Cure of Lakes Default. Upon the occurrence of a Lakes Event of
Default, Kickapoo may provide written notice to Lakes of Kickapoo's intention to
terminate this Agreement and, if it is possible for Lakes to cure the Lakes
Event of Default, Lakes shall have thirty (30) days following receipt of the
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Lakes shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
The discontinuance or correction of a Lakes Event of Default shall constitute a
cure thereof. If Lakes fails to cure the Lakes Event of Default within the cure
period, Kickapoo may: (a) suspend all performance of Kickapoo under this
Agreement; (b) terminate this Agreement under Section 9.4; or (c) pursue any
other remedy available at law or in equity, subject to the provisions of Section
10.1.

     Section 8.3 Events of Default by Kickapoo. Each of the following shall
constitute a "KTTT Event of Default":


                                      -17-

<PAGE>

     (a)  (i) A Material Breach by Kickapoo exists, or (ii) an "KTTT Event of
          Default" by Kickapoo exists under the KTTT Note, security agreement,
          dominion account agreement, mortgage or other document or instrument
          in favor of Lakes or its Affiliates and related thereto or this
          Agreement; or (iii) the Kickapoo Tribe shall be in default of any
          agreement now or hereafter executed by it in favor of Lakes or its
          Affiliates.

     (b)  The Gaming Commission or any other applicable governmental authority
          of the Kickapoo Tribe, in bad faith, without due process or
          unreasonably, denies, revokes, fails to renew or otherwise impairs any
          license, permit or approval required for Lakes or any Affiliate of
          Lakes to perform its obligations or enjoy its rights under this
          Agreement.

     (c)  Kickapoo violates any of the covenants in Section 7.2 of this
          Agreement, and after sixty (60) days have passed following a request
          by Lakes to Kickapoo to cure the violation, during which the violation
          has not been cured.

     (d)  Kickapoo or any Affiliate of Kickapoo material to the Project
          Facilities has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of Kickapoo's property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Compact (if in effect) is determined by any court of competent
          jurisdiction to be invalid and such determination becomes final and
          non-appealable.

     (f)  The Kickapoo Tribe is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     (g)  Any order or judgment of any court of competent jurisdiction enjoins
          the operations of the Project Facilities in any material manner, and
          the injunction continues for thirty (30) days.

     Section 8.4 Cure of KTTT Event Default. Upon the occurrence of a KTTT Event
of Default, Lakes may provide written notice to Kickapoo of such default, and,
if it is possible for Kickapoo or the Kickapoo Tribe to cure the KTTT Event of
Default, Kickapoo shall have thirty (30) days following receipt of notice to
effect a cure; provided, however, that if the nature of such breach (but
specifically excluding breaches curable by the payment of money) is such that it
is not possible to cure such breach within thirty (30) days, such thirty-day
period shall be extended for so long as Kickapoo or Kickapoo Tribe shall be
using diligent efforts to effect a cure thereof but no more than an additional
sixty (60) days. The discontinuance or correction of a KTTT Event of Default
shall constitute a cure thereof. If Kickapoo or the Kickapoo Tribe fails to cure
the KTTT Event of Default within the cure period, Lakes may take any one or more
of the following actions: (a) suspend all performance of Lakes under this
Agreement; (b) declare


                                      -18-

<PAGE>

all principal and interest accrued on all KTTT Notes and the Project Development
Fees to be immediately due and owing, (c) terminate this Agreement under Section
9.3; or (d) pursue any other remedy available by agreement, at law or in equity,
subject to the provisions of Section 10.1.

                                    ARTICLE 9
                                TERM OF AGREEMENT

     Section 9.1 Term. This Agreement shall become effective and binding upon
the parties on the Effective Date, and shall continue in effect for seven (7)
years from the Effective Date or until the Monthly Consulting Fixed Fee(s) and
the Business Improvements Loan have been fully paid, whichever date is later,
subject to earlier termination as provided in Article 7 or this Article;
provided that (a) all rights of any party to assert a Claim against the other
shall survive the termination of this Agreement, and (b) all provisions of
Article 9 and Article 10 shall survive a termination.

     Section 9.2 Mutual Termination. This Agreement may be terminated at any
time by the mutual written consent of Lakes and Kickapoo.

     Section 9.3 Termination by Lakes. This Agreement may be terminated upon
notice by Lakes to Kickapoo if an uncured KTTT Event of Default exists under
Section 7.3 and all applicable grace and cure periods have expired.

     Section 9.4 Termination by Kickapoo. This Agreement may be terminated upon
notice by Kickapoo to Lakes if an uncured Lakes Event of Default exists under
Section 7.1 and all applicable grace and cure periods have expired.

     Section 9.5 Buy-out Option. Following forty-eight (48) months of continuous
operation of the Project's gaming operations following the Opening Date,
Kickapoo shall have the option to buy out the Lakes' remaining rights under this
Agreement for an amount equal to the present value, using a discount rate which
is the greater of either two percent (2%) above the prime interest rate of Chase
Manhattan Bank U.S.A., N.A. (or any successor bank) in place at the time the
buy-out option is exercised of the Remaining Consulting Fees (as hereinafter
defined). The term "Remaining Consulting Fees" shall mean the total Monthly
Consulting Fixed Fees which would have been payable to Lakes under Section 5.1
hereof for the balance of the term of this Agreement.

                                   ARTICLE 10
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                           JURISDICTION; GOVERNING LAW

     Section 10.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:


                                      -19-

<PAGE>

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Del Rio, Texas.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality. Kickapoo further agrees that any arbitration
          proceeding held in connection with any Claim may be consolidated with
          any other arbitration proceeding involving Lakes or its Affiliates and
          any of Kickapoo's Affiliates.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 12 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained


                                      -20-

<PAGE>

          pending completion of the arbitration proceedings, to the extent
          permitted by applicable law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  Kickapoo hereby expressly waives, and also waives its right to assert,
          sovereign immunity and any and all defenses based thereon with respect
          to any Claims; and Kickapoo hereby consents to (i) binding arbitration
          under the Commercial Arbitration Rules of the American Arbitration
          Association, (ii) empowering the arbitrators to take the actions and
          enforce the judicial remedies described in paragraph 5 of the Kickapoo
          Resolution of Limited Waiver of Sovereign Immunity dated January 19,
          2005 issued in connection with the execution of this Agreement, and
          (iii) judicial proceedings in or before the United States District
          Court for the Western District of Texas, or if that court determines
          it is without jurisdiction, then to the courts of the State of Texas
          and all courts to which an appeal therefrom may be available, but
          solely to compel, enforce, modify or vacate any arbitration award.

     (g)  To the extent lawful in connection with any such Claims, Kickapoo
          expressly waives the application of the doctrines of exhaustion of
          tribal remedies or comity that might otherwise require that Claims be
          heard first in tribal court or other tribal forum of Kickapoo Tribe.
          The waivers set forth herein only extend to claims or proceedings
          brought by Lakes and any award of damages against Kickapoo shall be
          payable solely out of the Collateral.

     Section 10.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                   ARTICLE 11
                                  MISCELLANEOUS

     Section 11.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes may assign this Agreement
to a wholly owned subsidiary without Kickapoo's consent; provided further that
Lakes shall remain obligated for the performance of the Lakes subsidiary
hereunder. Other than as expressly provided in this Section 11.1, any attempted
assignment or subcontracting without prior written consent shall be void.
Subject to the preceding requirements, this Agreement is binding upon and inures
to the benefit of the parties and their respective successors and assigns.

     Section 11.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the


                                      -21-

<PAGE>

date sent; (c) must be delivered by personal service, via fax with reasonable
evidence of transmission, express delivery or by certified or registered mail,
postage prepaid, return receipt requested; and (d) until written notice of a new
address or addresses is given, must be addressed as follows:

     If to Kickapoo:   KTTT Enterprises
                       ATTN: Juan Garza, Jr., Council Chairman
                       HCR 1, Box 9700
                       Eagle Pass, Texas 78852
                       (830) 757-9228 (Fax)

     With a Copy to:   Roy Bernal, Tribal Administrator
                       Kickapoo Traditional Tribe of Texas
                       HCR 1, Box 9700
                       Eagle Pass, Texas 78852
                       (830) 757-9228 (Fax)

                       Gloria E. Hernandez, Tribal Attorney
                       HCR 1, Box 9700
                       Eagle Pass, Texas 78852
                       (830) 757-9228 (Fax)
                       (copy to counsel does not constitute notice to a party)

     If to Lakes:      Lakes Kickapoo Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN 55305
                       Attn: Timothy J. Cope

     With a Copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

     and               Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140
                       (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.


                                      -22-

<PAGE>

     Section 11.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 11.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 11.5 Force Majeure. No party shall be in default in the performance
due under this Agreement if that failure of performance is due to causes beyond
its reasonable control, including but not limited to acts of God, war,
terrorism, fires, floods, or accidents causing material damage to or destruction
of the Project Facilities.

     Section 11.6 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 11.7 Entire Agreement. This Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all
provisions of any prior agreements between the parties relating to the
development, financing, construction and equipping of the Project Facilities
(including the parties' Gaming Operations Consulting and Development Agreement
dated December 29, 2004), and any other matter addressed in this Agreement; but
shall specifically exclude any agreement related to the management of the
Project Facilities.

     Section 11.8 Indemnification by Lakes. Lakes shall immediately indemnify
Kickapoo and its Affiliates, agents, officers, employees, consultants, and
attorneys (each a "Kickapoo Indemnitee") from and against any and all damages,
claims, losses or expenses of whatever kind or nature, including attorneys' fees
and expenses as and when incurred in defending those claims, losses or expenses,
to the extent they result from (a) the gross negligence or willful misconduct of
Lakes with respect to (i) the Project Facilities or (ii) the performance or
non-performance of Lakes' obligations under this Agreement, or (b) the
performance by Kickapoo of any of its obligations under this Agreement but
excluding any claims, loss or expense arising from the gross negligence or
willful misconduct of Kickapoo. Kickapoo and Lakes shall consult and agree on
the defense and settlement of any matter in which indemnification is required of
Lakes, Kickapoo shall have the right to retain its separate counsel to advise it
thereon (but such counsel shall be at Kickapoo's own expense), and upon the
occurrence of any such claim, the parties shall enter into a mutually acceptable
agreement providing for the procedures by which any such claims shall be
prosecuted and related costs and expenses shall be reimbursed. Kickapoo shall be
listed as an insured on all insurance policies with respect to the Project
Facilities.

     Section 11.9 Indemnification by Kickapoo. Kickapoo shall immediately
indemnify Lakes and its Affiliates, agents, officers, employees, consultants,
and attorneys ( each a "Lakes Indemnitee") from and against any and all damages,
claims, losses or expenses of whatever kind or nature, including attorneys' fees
and expenses as and when incurred in defending those


                                      -23-

<PAGE>

claims, losses or expenses, to the extent they result from (a) the gross
negligence or willful misconduct of Kickapoo with respect to (i) the Project
Facilities or (ii) the performance or non-performance of Kickapoo's obligations
under this Agreement, or (b) the performance by Lakes of any of its obligations
under this Agreement but excluding any claims, loss or expense arising from the
gross negligence or willful misconduct of Lakes. Kickapoo and Lakes shall
consult and agree on the defense and settlement of any matter in which
indemnification is required of Kickapoo, Lakes shall have the right to retain
its separate counsel to advise it thereon (but such counsel shall be at Lakes'
own expense), and upon the occurrence of any such claim, the parties shall enter
into a mutually acceptable agreement providing for the procedures by which any
such claims shall be prosecuted and related costs and expenses shall be
reimbursed. Lakes shall be listed as an additional insured on all insurance
policies with respect to the Project Facilities. Kickapoo further agrees to
indemnify and hold each Lakes Indemnittee harmless from any and all liabilities,
claims, losses and expenses arising from any prior agreements entered into by
Kickapoo or the Kickapoo Tribe with any Persons or entities in connection with
development, construction and/or operation of the Project Facilities.

     Section 11.10 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 11.11 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 11.12 Cooperation; Approvals. Each of the parties agrees to
cooperate in good faith with the other to timely implement the purposes of this
Agreement. Any consents or approvals required to be given in connection with
this Agreement shall not be unreasonably withheld or delayed by the parties or
their Affiliates.

     Section 11.14 No Management Contract or Grant of Proprietary Interest. Each
party agrees that it is their intent that neither this Agreement nor any of the
KTTT Notes or and related security documents and instruments described herein
(individually or collectively) constitute a "Management Contract" within the
meaning of IGRA. Upon the Effective Date, the parties shall submit this
Agreement to the NIGC for review and determination that it is not a Management
Contract and therefore does not require the approval of the NIGC in order to be
valid, regardless of whether it constitutes a "collateral agreement" as that
term is defined in IGRA. Each party shall use its best efforts to pursue such
determination and timely execute, deliver, and if necessary, record any and all
additional instruments, certifications, and other documents as may be required
by the NIGC in order to issue such determination; provided that such required
instrument or other document shall not materially change the respective rights,
remedies or obligations of the parties under this Agreement. If the NIGC finds
that this Agreement does constitute a Management Contract within the meaning of
IGRA, then the parties shall immediately take all necessary steps to amend or
modify the Agreement in a way that preserves the economic benefits of the
transactions to both parties without constituting a Management Contract.


                                      -24-

<PAGE>

     Section 11.15 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to the Project Facilities shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project Facilities, including in connection with obtaining the Project
Permanent Financing.

     Section 11.16 Effective Date. This Agreement shall become effective and
binding upon the date of execution by the parties.

                            [Signature Page Follows]


                                      -25-

<PAGE>

     The parties have executed this Gaming Operations Consulting Agreement as of
the date stated in the introductory clause.

                                        KTTT ENTERPRISES


                                        By /s/ Juan Garza JR.
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Jose P Trevino
                                           -------------------------------------
                                        Its: Member
                                            ------------------------------------


                                        LAKES KICKAPOO CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------

       [Signature Page to Kickapoo Gaming Operations Consulting Agreement
                            -- Kickapoo Lucky Eagle]


                                       26

<PAGE>

                                    EXHIBIT A
                                FORM OF KTTT NOTE


                                       27
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.115
<SEQUENCE>50
<FILENAME>c92713exv10w115.txt
<DESCRIPTION>TRIBAL AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.115

                                TRIBAL AGREEMENT
                     (LAKES CONSULTING - LUCKY EAGLE CASINO)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 19, 2005 ("Effective Date") by and among the Kickapoo Traditional
Tribe of Texas ("Kickapoo Tribe"), a federally recognized Indian tribe, and
Lakes Kickapoo Consulting, LLC, a Minnesota limited liability company ("Lakes
Consulting").

                                    RECITALS

     A. The Kickapoo Tribe is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. The Kickapoo Tribe has established KTTT Enterprises
("Kickapoo"), a wholly-owned subsidiary of and a governmental instrument of the
Kickapoo Tribe, as the legal entity which will own and operate any gaming
projects which are to be developed by the Kickapoo Tribe.

     B. Lakes Consulting has entered into a Gaming Operations Consulting
Agreement with Kickapoo dated January 19, 2005 (as amended from time to time,
the "Consulting Contract"), pursuant to which Lakes Consulting is to provide
certain consulting services to Kickapoo with respect to the Kickapoo Lucky Eagle
Casino and related ancillary facilities owned by Kickapoo on behalf of the
Kickapoo Tribe as described with specificity therein.

     C. Pursuant to the terms of the Consulting Contract, the Kickapoo Tribe is
required to execute and deliver this Agreement to induce Lakes Consulting to
enter into the Consulting Contract together with certain additional documents
and agreements referred to therein or related thereto.

     D. The Kickapoo Tribe and Lakes Consulting intend that this Agreement shall
be operative and binding upon the date of execution by the parties (the
"Effective Date"), and shall supersede and replace the parties prior Tribal
Agreement dated December 29, 2004 relating to the Project Facilities and the
Consulting Contract.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, the Kickapoo
Tribe and Lakes Consulting agree as follows:


                                      -1-

<PAGE>

                                    ARTICLE 1

                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Consulting
Contract and/or the other documents and agreements executed by Kickapoo with
respect thereto:

     "Claim" means any dispute, claim, question, or disagreement between the
Kickapoo Tribe and any of Lakes Consulting or any of its Affiliates that is
directly or indirectly related to this Agreement, any of the other Transaction
Documents, the Gaming Project or the Project Facilities, whether arising under
law or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or any of the other
Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(n) hereof.

     "Kickapoo Entities" means individually and collectively, each of Kickapoo
and Kickapoo Tribe.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Consulting Contract, the KTTT Notes, the security agreements,
dominion account agreements, mortgages, resolutions of limited waiver and each
other document or instrument now or hereafter executed by any Kickapoo Entities
in favor of Lakes Consulting or its respective Affiliates and related thereto or
hereto or any Gaming Projects

                                    ARTICLE 2

                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. The Kickapoo Tribe represents
and warrants to Lakes Consulting that:

     (a)  Organization. Kickapoo is a wholly-owned and duly organized subsidiary
          of and a duly organized governmental instrument of the Kickapoo Tribe,
          and the Kickapoo Tribe is a federally recognized Indian tribe eligible
          to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. The Kickapoo Tribe and Kickapoo have taken all
          action required by tribal or other law without the necessity of
          further action as is necessary to authorize the applicable Kickapoo
          Entity to execute, deliver and perform each of the Transaction
          Documents that such Kickapoo Entity is party to. Each Kickapoo Entity
          that is a party to any of the Transaction Documents has all requisite
          power and authority to enter into the Transaction Documents to the
          extent a party thereto and to perform its respective obligations
          thereunder, and to consummate all other transactions contemplated
          thereby.


                                      -2-

<PAGE>

     (c)  Binding Obligations. Each of Transaction Documents (i) has been duly
          executed and delivered by each Kickapoo Entity to the extent it is a
          party thereto, and (ii) constitutes the legal, valid, binding,
          perfected and enforceable obligation of each Kickapoo Entity to the
          extent it is a party thereto, enforceable in accordance with its
          respective terms, except as enforceability may be limited by future
          bankruptcy, insolvency or similar proceedings, limitations on rights
          of creditors generally and principles of equity, and assuming the
          foregoing agreements are binding against the other parties thereto.

     (d)  Gaming Facility Site. The site for the Gaming Facility constitutes
          "Indian lands" upon which the Kickapoo Tribe may legally conduct
          gaming under IGRA.

     (e)  Gaming Permitted. The Kickapoo Tribe is legally permitted to conduct
          Class II Gaming (and Class III Gaming in the event of a Compact)
          activities in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Kickapoo Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Kickapoo Tribe. Kickapoo will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          Kickapoo to the extent set forth in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Consulting to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Kickapoo or the Kickapoo Tribe or affecting the Gaming
          Facility Site or the Project Facilities, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect the Project Facilities
          or the obligations or rights of Lakes Consulting under any of the
          Transaction Documents to which it is a party.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          the applicable Kickapoo Entity of each Transaction Documents that such
          Kickapoo Entity is party to does not violate any Legal Requirements
          nor conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of any Kickapoo Entity, including without
          limitation the Project Facilities, or result in the acceleration of
          any obligation of any Kickapoo Entity under the terms of any agreement
          or document binding upon such party, other than a conflict, breach,
          default or imposition as shall not materially adversely affect the
          Project Facilities or the obligations or rights of Lakes Consulting
          under any of the Transaction Documents to which it is a party.


                                      -3-

<PAGE>

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of any
          Kickapoo Entity, threatened, against any Kickapoo Entity or their
          respective Affiliates, or any of the assets or properties of any of
          such entities, that could have a material adverse effect on the
          Project Facilities, or any Kickapoo Entity's ability to enter into or
          perform any of the Transaction Documents to the extent it is a party
          thereto.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Kickapoo is required
          to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of any Kickapoo Entity
          in this Agreement or the other Transaction Documents and no report or
          statement delivered to any of Lakes Consulting or its respective
          Affiliates by or on behalf of any Kickapoo Entity, contains any untrue
          statement or omits to state a material fact necessary to make any such
          representation, warranty, report or statement, in light of the
          circumstances in which they were made, not misleading. Each Kickapoo
          Entity has fully disclosed to Lakes Consulting the existence and terms
          of all material agreements and Legal Requirements, written or oral,
          relating to any particular Project.

     (m)  No Tribal Tax. Neither the Project, Project Facilities nor the
          transaction(s) between the parties contemplated by the Transaction
          Document are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax of any sort other than (i)
          reasonable pass-through taxes on Project Facilities patrons which are
          consistent with gaming resort industry practices, and (ii) license or
          other fees for background investigations performed by the Gaming
          Commission of "key employees" and "primary management officials" of
          the Gaming Facility, as defined in 25 C.F.R. Section 502.14 and 25
          C.F.R. Section 502.19, and reasonable and customary regulatory fees
          imposed on the Gaming Facility by the Gaming Commission (which amounts
          shall be subject to an annually approved budget submitted by the
          Gaming Commission).

     (n)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of the Kickapoo
          Tribe are/will be owned and operated by Kickapoo, or if any Gaming
          Project is owned by another subsidiary of the Kickapoo Tribe, then
          such subsidiary has entered into a consulting agreement and related
          documents with Lakes Consulting and/or its Affiliates on substantially
          similar terms and conditions as are set forth in the Consulting
          Contract and the other Transaction Documents, and otherwise satisfied
          the required conditions each as set forth in Section 3.1(f) hereof.


                                      -4-

<PAGE>

                                    ARTICLE 3

                                    COVENANTS

Section 3.1 Covenants. The Kickapoo Tribe covenants and agrees as follows:

     (a)  Additional Documents. It shall or shall cause Kickapoo to execute any
          additional instruments as may be reasonably required by Lakes
          Consulting to carry out the intent of any of the Transaction Documents
          or to perfect or give further assurance of any of the rights granted
          or provided for under such Transaction Documents.

     (b)  Non-Impairment. It shall not and shall not permit Kickapoo or any of
          their other governmental instrumentalities or subsidiaries to enact
          any law, ordinance, rule or regulation impairing the rights or
          obligations of any Kickapoo Entity or any of Lakes Consulting or its
          respective Affiliates under any of the Transaction Documents.

     (c)  Records. It shall or shall cause Kickapoo to maintain or cause to be
          maintained full and accurate accounts and records for the Project
          Facilities according to GAAP.

     (d)  No Liens. Except as otherwise expressly permitted by the Transaction
          Documents, it shall not and shall not permit Kickapoo or any of its
          other governmental instrumentalities or subsidiaries to cause or
          voluntarily permit any lien or encumbrance to be created on the
          Project Facilities, or the Gaming Facility Site.

     (e)  No Tax. It shall not and shall not permit Kickapoo or any of their
          other governmental instrumentalities or subsidiaries to impose any
          tax, fee or assessment on any of Lakes Consulting, its respective
          Affiliates, any Contractor, the Project and its Project Facilities,
          and/or any of the Transaction Documents other than (i) reasonable
          pass-through taxes on Project Facilities patrons which are consistent
          with gaming resort industry practices, and (ii) license or other fees
          for background investigations performed by the Gaming Commission of
          "key employees" and "primary management officials" of the Gaming
          Facility, as defined in 25 C.F.R. Section 502.14 and 25 C.F.R. Section
          502.19, and reasonable and customary regulatory fees imposed on the
          Gaming Facility by the Gaming Commission (which amounts shall be
          subject to an annually approved budget submitted by the Gaming
          Commission).


                                      -5-

<PAGE>

     (f)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all Gaming Projects shall be owned and
          operated by Kickapoo; provided that a Gaming Project may be owned and
          operated by another subsidiary of the Kickapoo Tribe so long as prior
          to acquiring such ownership, (i) such subsidiary shall have entered
          into a consulting agreement and related documents with Lakes
          Consulting and/or its Affiliates on substantially similar terms and
          conditions as are set forth in the Consulting Contract and the
          Transaction Documents related thereto; (ii) Lakes Consulting shall
          have received the following, each in form and substance reasonably
          acceptable to it: (aa) certified copies of the organizational
          documents of the new subsidiary, together with reasonable evidence
          that such subsidiary is wholly owned by the Kickapoo Tribe, (bb) new
          Resolutions of Limited Waiver with respect to all of such documents
          and agreements from each of the new subsidiary of the Kickapoo Tribe
          containing substantially the same resolutions and terms as set forth
          in the Resolutions of Limited Waiver received by Lakes Consulting in
          connection with the execution of the original Transaction Documents,
          (cc) legal opinions from counsel to each of the new subsidiary and the
          Kickapoo Tribe with respect to the such new documents and agreements
          containing substantially the same opinions as provided to Lakes
          Consulting in connection with the execution of the original
          Transaction Documents, and (dd) the Kickapoo Tribe shall have executed
          and delivered an amendment to this Agreement incorporating all such
          new documents and agreements as additional "Transaction Documents"
          hereunder and such projects and related assets shall be subject to the
          same terms and restrictions set forth herein; and (iii) at the time of
          satisfaction of the foregoing conditions, no "Event of Default" by any
          Kickapoo Entity under the Transaction Documents has occurred and is
          continuing.

                                    ARTICLE 4

                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute an
"Event of Default" under this Agreement:

     (a)  A Material Breach by the Kickapoo Tribe exists. As used in this
          paragraph, the term "Material Breach" shall mean any of the following
          circumstances (i) material failure of either of such parties to
          perform a material obligation hereunder or any other Transaction
          Document to which it is a party, or (ii) any representation or
          warranty made pursuant to Section 2.1 hereof proves to be knowingly
          false or erroneous in any material way when made or at any time shall
          fail to be true and correct in all material respects.


                                      -6-

<PAGE>

     (b)  The Kickapoo Tribe violates any of the covenants in Section 3.1 of
          this Agreement, and after sixty (60) days have passed following a
          request by Lakes Consulting to cure the violation, during which the
          violation has not been cured.

     (c)  The Kickapoo Tribe has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of such entities property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Kickapoo Tribe is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     Section 4.2 Cure of Event Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to the Kickapoo Tribe of such default
and, if it is possible for the Kickapoo Tribe to cure the Event of Default, it
shall have thirty (30) days following receipt of notice to effect a cure;
provided, however, that if the nature of such breach (but specifically excluding
breaches curable by the payment of money) is such that it is not possible to
cure such breach within thirty (30) days, such thirty-day period shall be
extended for so long as the Kickapoo Tribe shall be using diligent efforts to
effect a cure thereof but no more than an additional sixty (60) days. Upon the
occurrence of any of the events described in Section 4.1 and during any
applicable cure period, Lakes Consulting may suspend its performance under the
Transaction Documents. The discontinuance or correction of an Event of Default
shall constitute a cure thereof. If the Kickapoo Tribe fails to cure the Event
of Default within the cure period, Lakes Consulting may take any one or more of
the following actions: (a) suspend all performance of Lakes Consulting under the
Transaction Documents; (b) declare all obligations of any Kickapoo Entity under
the Transaction Documents to be immediately due and owing, (c) terminate the
Consulting Contract; and/or or (d) pursue any other remedy available at law, in
equity or by agreement, subject to the provisions of Article 5 hereof.

                                    ARTICLE 5

DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT JURISDICTION;
                                 GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter


                                      -7-

<PAGE>

          for binding arbitration by the arbitrators, such question shall not be
          determined by any court and, in determining any such question, all
          doubts shall be resolved in favor of arbitrability; and (b) discovery
          shall be permitted in accordance with the Federal Rules of Civil
          Procedure, subject to supervision as to scope and appropriateness by
          the arbitrators. Unless the parties otherwise agree to in writing,
          arbitration proceedings shall be held at Del Rio, Texas.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 5 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  The Kickapoo Tribe hereby expressly waives, and also waives its right
          to assert, sovereign immunity and any and all defenses based thereon
          with respect to any


                                      -8-

<PAGE>

          Claims; and such parties further hereby consents to (i) binding
          arbitration under the Commercial Arbitration Rules of the American
          Arbitration Association, (ii) to empowering the arbitrators to take
          the actions and enforce the judicial remedies described in the
          Kickapoo Tribe's Resolution of Limited Waiver of Sovereign Immunity
          dated January 19, 2005 issued in connection with the execution of the
          Transaction Documents ("Resolution of Limited Waiver"), and (iii)
          judicial proceedings in or before the United States District Court for
          the Western District of Texas or if that court determines it is
          without jurisdiction, then to the courts of the State of Texas and all
          courts to which an appeal therefrom may be available, but solely to
          compel, enforce, modify or vacate any arbitration award.

     (g)  To the extent lawful in connection with any such Claims, the Kickapoo
          Tribe expressly waives the application of the doctrines of exhaustion
          of tribal remedies or comity that might otherwise require that Claims
          be heard first in tribal court or other tribal forum of Kickapoo
          Tribe. The waivers set forth herein only extend to claims or
          proceedings brought by Lakes Consulting and its Affiliates and any
          award of damages against the Kickapoo Tribe or its Affiliates shall be
          payable solely out of the Collateral (as defined in the Resolution of
          Limited Waiver) whether now or hereafter owned by Kickapoo, any other
          Kickapoo Entity or their Affiliates.

     (h)  The Kickapoo Tribe, on behalf of itself and each of its Affiliates,
          agrees that any arbitration proceeding hereunder may be consolidated
          with any other arbitration proceeding that any of Lakes Consulting or
          its respective Affiliates may bring against Kickapoo or any other
          Affiliates of the Kickapoo Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                    ARTICLE 6

                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Consulting may assign this
Agreement to a wholly owned subsidiary without the consent of the Kickapoo
Tribe; provided further that Lakes Consulting, as applicable, shall remain
obligated for the performance of its subsidiary hereunder. Other than as
expressly provided in this Section 6.1, any attempted assignment or
subcontracting without prior written consent shall be void. Subject to the
preceding requirements, this Agreement is binding upon and inures to the benefit
of the parties and their respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt


                                      -9-

<PAGE>

requested; and (d) until written notice of a new address or addresses is given,
must be addressed as follows:

If to the Kickapoo Tribe:   The Kickapoo Tribe
                            ATTN: Juan Garza, Jr., Council Chairman
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

     With a copy to:        Roy Bernal, Tribal Administrator
                            Kickapoo Traditional Tribe of Texas
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

          and               Gloria E. Hernandez, Tribal Attorney
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)
                            (copy to counsel does not constitute notice
                            to a party)

If to Lakes Consulting:     Lakes Kickapoo Consulting, LLC
                            130 Cheshire Lane
                            Minnetonka, MN 55305
                            Attn: Timothy J. Cope

     With a copy to:        Kevin C. Quigley, Esq.
                            Hamilton Quigley Twait & Foley PLC
                            W1450 First National bank Building
                            332 Minnesota Street
                            St. Paul, MN 55101-1314

          and               Brian J. Klein, Esq.
                            Maslon, Edelman, Borman & Brand, LLP
                            3300 Wells Fargo Center
                            90 South Seventh Street
                            Minneapolis, MN 55402-4140
                            (copy to counsel does not constitute notice
                            to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

Section 6.3 Amendments. This Agreement may be amended only by written instrument
duly executed by all of the parties and with any and all necessary regulatory
approvals, if any, required by Legal Requirements; and this Agreement shall
supersede and replace the parties prior Tribal Agreement dated December 29, 2004
relating to the Project Facilities and the Consulting Contract.


                                      -10-

<PAGE>

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project..

                            [Signature Page Follows]


                                      -11-

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        THE KICKAPOO TRADITIONAL TRIBE OF TEXAS

/s/ Juan Garza JR.
- -------------------------------------
Juan Garza, Jr. Council Chairman

/s/ Jesus Anico
- -------------------------------------
Jesus Anico, Council Secretary

/s/ Rogelio Elizondo
- -------------------------------------
Rogelio Elizondo, Council Treasurer

/s/ Jose ("Pepe") Trevino
- -------------------------------------
Jose ("Pepe") Trevino, Council Member

/s/ Jorge Hernandez
- -------------------------------------
Jorge Hernandez, Council Member


                                        LAKES KICKAPOO CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                           Timothy J. Cope
                                        Its: President and Chief Financial
                                             Officer

 [Signature Page to Kickapoo Tribal Agreement - Consulting - Lucky Eagle Casino]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.116
<SEQUENCE>51
<FILENAME>c92713exv10w116.txt
<DESCRIPTION>KTTT NOTE
<TEXT>
<PAGE>
                                                                  Exhibit 10.116

                                    KTTT NOTE
                              (Lucky Eagle Casino)

                                                                  Minnetonka, MN
$2,000,000                                                      January 19, 2005

     FOR VALUE RECEIVED, KTTT ENTERPRISES ("MAKER"), A WHOLLY-OWNED SUBSIDIARY
AND A GOVERNMENTAL INSTRUMENT OF THE KICKAPOO TRADITIONAL TRIBE OF TEXAS, A
FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the order of LAKES
KICKAPOO CONSULTING, LLC, A MINNESOTA LIMITED LIABILITY COMPANY ("LENDER"), in
the United States of America, in immediately available funds, at such place as
the holder hereof may from time to time designate, or in the absence of such
designation, at the office of the Lender, 130 Cheshire Lane, Minnetonka,
Minnesota 55305, the principal sum not to exceed of TWO MILLION U.S. DOLLARS
($2,000,000), or the aggregate unpaid principal amount of all advances made to
Maker pursuant to the "Business Improvements Loan" as set forth in Article 3 of
the Gaming Operations Consulting Agreement dated January 19, 2005 between the
parties for the Kickapoo Lucky Eagle Casino (the "Gaming Consulting Agreement"),
plus interest thereon from the date of such advances, in like money, in
accordance with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Gaming Consulting Agreement.

     2. Advances. Pursuant to the Gaming Consulting Agreement, Lender has agreed
to extend the Business Improvements Loan to Maker, such funds to be loaned in
more than one advances (each, an "Advance") as entered on the Schedule of
Advances attached hereto as Schedule A. Each Advance shall bear interest at the
Interest Rate, as described herein, from and including the date the proceeds of
such Advance are advanced (such date the "Funding Date" of such Advance) through
the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be limited to the Collateral as described in the
Gaming Consulting Agreement. Principal and interest on this Note shall be paid
in thirty-six equal monthly installments beginning on the 25th day of the first
full calendar month following twelve (12) months after the date the first
advance is provided by Lender (the "Maturity Date"), which payments shall be
adjusted from time to time as necessary to fully repay all principal, plus
accrued interest thereon, by the Maturity Date. Maker shall have the right to
prepay all or any part of this KTTT Note at any time without penalty or premium
provided any partial payment is at least $10,000 or an even multiple thereof,
but any such prepayment shall be applied to the installments of principal due
hereunder in the inverse order of maturity.

     4. Interest Rate. The Interest Rate means, as to each Advance, an interest
rate equal to the prime rate of Chase Manhattan Bank, N.A. (or any successor
Bank) plus two percent (2%), per annum, in place at the time of the advance,
fixed as of the first business day of each calendar month.


                                      -1-

<PAGE>

Interest at the foregoing rate shall accrue and be compounded monthly and shall
be payable solely from the Collateral as provided in Gaming Consulting
Agreement. Interest shall be computed for the actual number of days elapsed on
the basis of a year consisting of 360 days. It is intended that the rate of
interest hereon shall never exceed the maximum rate, if any, which may be
legally charged on the Business Improvements Loan evidenced by the KTTT Note
("Maximum Rate"), and if the provisions for interest contained in this KTTT Note
would result in a rate higher than the Maximum Rate, interest shall nevertheless
be limited to the Maximum Rate and any amounts which may be paid toward interest
in excess of the Maximum Rate shall be applied to the reduction of principal,
or, at the lawfully exercised option of the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books and on Schedule A attached hereto all Advances made to the Maker and all
payments of principal amounts in respect of such Advances, which shall be
presumptive evidence as to the outstanding principal amount of all Advances;
provided, however, that the failure to make such notation with respect to any
Advance or payments shall not limit or otherwise affect the obligations of
Maker.

     6. Default; Acceleration. If any Event of Default occurs in the payment of
any principal, interest or any other sums when due hereunder, or in the
performance of any covenant or agreement hereunder, and such default continues
beyond any applicable notice, grace and/or cure period, then the outstanding
principal amount of the Business Improvements Loan, any interest accrued thereon
from time to time, and any other sums then remaining unpaid hereunder, at the
option of the holder hereof and without notice, shall become immediately due and
payable and Lender may exercise any other rights or remedies available under the
Gaming Consulting Agreement or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this KTTT Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts due hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and


                                      -2-

<PAGE>

          such action or proceeding shall not have been dismissed within sixty
          (60) days; or

     (d)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing; or

     (e)  Any representation or warranty given to the Lender by Maker (or any of
          its representatives) in connection with entering into the Gaming
          Consulting Agreement and/or any borrowing thereunder, or given by an
          Affiliate of Maker in connection with any agreement executed by an
          Affiliate of Maker in favor of Lender or any Affiliate of Lender, or
          required to be furnished under the terms thereof, shall prove untrue
          or misleading in any material respect (as determined by Lender in the
          exercise of its reasonable judgment) as of the time when given or
          shall fail to be true and correct in all material respects at any time
          during the term of the agreement; or

     (f)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Gaming Consulting Agreement or under any
          other agreement entered into with or in favor of Lender or any
          Affiliate of Lender, or default by Maker's Affiliate under any
          agreement executed by an Affiliate of Maker in favor of Lender or any
          Affiliate of Lender, which default is not cured by Maker or its
          Affiliate as applicable within the cure period provided thereunder
          after written notice of default is delivered to Maker or its
          Affiliate; or

     (g)  The Gaming Consulting Agreement shall be terminated by either the
          Maker or the Lender.

     7. Security. This KTTT Note is secured by a security interest in the
Collateral granted by Maker to Lender pursuant to the Gaming Consulting
Agreement, including standard and customary dominion account agreements/security
agreements/mortgages or deed of trust necessary to evidence and perfect Lender's
liens on such Collateral.

     8. Presentment Waiver. Maker and all endorsers, guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this KTTT Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
KTTT Note and any other related documents, shall be cumulative and concurrent
and may be pursued singularly, successively or together, at the sole discretion
of the Lender, and may be exercised as often as


                                      -3-

<PAGE>

occasion therefor shall occur; and the failure to exercise any such right or
remedy shall in no event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS NOTE IS USED OR IS
INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE EXTENSION
OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR COMMERCIAL
AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER, FAMILY OR
HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION, CERTIFICATION,
REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this KTTT Note.

     12. Applicable Law. This KTTT Note shall be construed in accordance with
and governed by the internal laws and decisions of the State of Texas, without
giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this KTTT Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this KTTT Note is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
KTTT Note to be illegal, invalid, unlawful, void or unenforceable as written,
then it is the intent of all parties hereto that such portion, provision or
provisions shall be given force to the fullest possible extent that it or they
are legal, valid and enforceable, that the remainder of this KTTT Note shall be
construed as if such illegal, invalid, unlawful, void or unenforceable portion,
provision or provisions were not contained herein, and that the rights,
obligations and interest of Maker and holder hereof under the remainder of this
KTTT Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this KTTT Note shall be valid unless the same is in writing and signed by the
party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought. This KTTT Note is intended by the parties to
supersede and replace that KTTT Note dated December, 2004 executed in
connection with the parties prior December 29, 2004 consulting agreement
relating to the Project Facilities.

     15. Time is Material. Time is hereby declared to be of the essence of this
KTTT Note and of every part hereof, and the time and schedule requirements set
forth herein are material terms


                                      -4-

<PAGE>

of this KTTT Note.

     16. Successors and Assigns. This KTTT Note shall inure to the benefit of
and shall be binding on the parties hereto and their respective successors and
assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this KTTT Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 11.2 of the Gaming Consulting Agreement.

     18. Dispute Resolution Limited Waiver of Sovereign Immunity. Maker and
Lender agree that any dispute in connection with this KTTT Note shall be subject
to the dispute resolution procedures and limited waiver of sovereign immunity
contained in Article 10 of the Gaming Consulting Agreement, the terms of which
are incorporated by reference herein.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                      -5-

<PAGE>

     IN WITNESS WHEREOF, Maker has caused this KTTT Note to be executed and
delivered as of the date first above written.

                                        MAKER:

                                        KTTT ENTERPRISES


                                        By: /s/ Juan Garza JR.
                                            ------------------------------------
                                        Name: Juan Garza JR.
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        By: /s/ Jose P. Trevino
                                            ------------------------------------
                                        Name: Jose P. Trevino
                                              ----------------------------------
                                        Title: Member
                                               ---------------------------------

      [Signature Page to KTTT Note - Lucky Eagle in favor of Lakes Kickapoo
                                Consulting, LLC]

<PAGE>

                                   Schedule A
                             (Schedule of Advances)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.117
<SEQUENCE>52
<FILENAME>c92713exv10w117.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.117

                               SECURITY AGREEMENT
                     (LAKES CONSULTING - LUCKY EAGLE CASINO)

          This Security Agreement is made and entered into on January 19, 2005,
by and between KTTT Enterprises (hereinafter referred to as "Kickapoo" or
"Debtor"), a wholly-owned subsidiary and a governmental instrument of the
Kickapoo Traditional Tribe of Texas ("Kickapoo Tribe"), a federally recognized
Indian tribe, whose business office is located at HCR 1, Box 9700, Eagle Pass,
Texas 78852, and Lakes Kickapoo Consulting, LLC, a Minnesota limited liability
company (hereinafter referred to as "Lakes" or "Secured Party"), whose business
office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the laws of and a governmental
instrument of the Kickapoo Tribe, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Texas in
trust for the benefit of the Kickapoo Tribe over which the Kickapoo Tribe
possesses sovereign governmental powers and the Kickapoo Tribe holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Kickapoo Tribe may legally conduct gaming under applicable federal law.

     WHEREAS, Kickapoo, on behalf of the Kickapoo Tribe, operates an established
gaming operation, known as the Kickapoo Lucky Eagle Casino, located near Eagle
Pass, Texas; and this gaming facility conducts Class II Gaming (and will conduct
Class III Gaming activities in the event of federal agency approval of a
Tribal-State Compact between the Kickapoo Tribe and the State of Texas
permitting such gaming).

     WHEREAS, Secured Party has entered into a Gaming Operations Consulting
Agreement with Debtor dated January 19, 2005 (as heretofore and hereafter
amended, the "Consulting Contract"), pursuant to which Lakes is to provide
certain consulting services to Debtor for the Lucky Eagle Casino and related
ancillary facilities as more specifically described therein.

     WHEREAS, pursuant to the Consulting Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Consulting Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:


                                  Page 1 of 15

<PAGE>

     1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges and
grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the Debtor's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each case whether now
owned or hereafter acquired by Debtor in order to secure the payment and
performance of the obligations of Debtor to Secured Party described in Section 3
herein below. On the date of execution of this Agreement, Debtor shall cause to
be delivered to Secured Party: (a) such financing statements and similar
documents necessary to perfect the security interest granted to Secured Party
pursuant to this Agreement (the "Financing Statements"), and (b) a legal opinion
in form and substances reasonably acceptable to Secured Party, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by Debtor, together with opinions as to Debtor's
sovereign immunity waiver and non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Gaming Facility, the
site of the Gaming Facility, and/or the Project Facilities, each whether now
owned or hereafter acquired (collectively all of the following property and
similar or after-acquired property under this Section 2 being hereinafter
referred to as (the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Consulting
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Consulting Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Texas.

     3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the KTTT Notes, the
Consulting Contract, this Agreement, and each dominion account


                                  Page 2 of 15

<PAGE>

agreement, mortgage, or other document or instrument in favor of Secured Party
or its Affiliates (as such term is defined in the Consulting Contract) and
related thereto or hereto (collectively, the "Transaction Documents"), and (b)
the Kickapoo Tribe or its Affiliates to Secured Party or its Affiliates under or
with respect to the Tribal Agreement or any other document or agreement executed
in favor of Secured Party or its Affiliates in connection with the Project
Facilities, each of the foregoing, whether now existing or hereafter incurred or
arising; (ii) any and all sums advanced by Secured Party in order to preserve
the Collateral or preserve Secured Party's security interest in the Collateral
(or the priority thereof); and (iii) the expenses of retaking, holding,
preparing for sale or lease, selling or otherwise disposing of or realizing on
the Collateral, of any proceeding for the collection or enforcement of any
indebtedness, obligations or liabilities of Debtor referred to above, or of any
exercise by Secured Party of its rights hereunder, together with reasonable
attorneys' fees and disbursements and court costs (collectively, the "Secured
Obligations"); PROVIDED HOWEVER, Secured Party agrees to terminate this Security
Agreement upon request if Debtor has satisfied the following conditions: (a) all
Secured Obligations have been repaid in full to Secured Party and Secured Party
has no further obligation, if any, to make advances under the Consulting
Contract with respect thereto, and (b) the Consulting Contract has been
terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

     4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

          (a) the Debtor is (or, to the extent that the Collateral is acquired
after the date hereof, will be) the sole legal and beneficial owner of its
respective Collateral and has exclusive possession and control thereof; there
are no security interests in, liens, charges or encumbrances on, or adverse
claims of title to, or any other interest whatsoever in, such Collateral or any
portion thereof except such liens permitted by and subject to the terms of
Section 7.2 of the Consulting Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

          (b) the Debtor has full right, power and authority to execute, deliver
and perform this Security Agreement. This Security Agreement constitutes a
legally valid and binding obligation of the Debtor, enforceable against the
Debtor in accordance with its terms subject to any limitations set forth in the
Kickapoo Resolution of Limited Waiver dated January 19, 2005 related to and
approving the Transaction Documents (the "Resolution of Limited Waiver").
Subject to the completion of the items identified in Section 4(c) below, the
provisions of this Security Agreement are effective to create in favor of
Secured Party a valid and enforceable first, prior and perfected security
interest in the Collateral;

          (c) except for the filing or recording of the financing statements and


                                  Page 3 of 15

<PAGE>

fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or any governmental authority or regulatory body is
required, except as may be agreed to by Debtor and Secured Party: (i) for the
grant by the Debtor of the security interest in the Collateral pursuant to this
Security Agreement or for the execution, delivery or performance of this
Security Agreement by the Debtor, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor does not do business, and for the previous five years has
not done business, under any fictitious business names or trade names;

          (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor, the consummation of the transactions herein contemplated,
the fulfillment of the terms hereof or the exercise by Secured Party of any
rights or remedies hereunder will constitute or result in a breach of any of the
terms or provisions of, or constitute a default under, or constitute an event
which with notice or lapse of time or both will result in a breach of or
constitute a default under, any agreement, indenture, mortgage, deed of trust,
equipment lease, instrument or other document to which Debtor is a party,
conflict with or require approval, authorization, notice or consent under any
law, order, rule, regulation, license or permit applicable to Debtor of any
court or any federal or state government, regulatory body or administrative
agency, or any other governmental body having jurisdiction over Debtor or its
properties, or require notice, consent, approval or authorization by or
registration or filing with any person or entity (including, without limitation,
any stockholder or creditor of Debtor) other than any notices to Debtor from
Secured Party required hereunder except as may be agreed to by Debtor and
Secured Party. Except for the Permitted Liens, none of the Collateral is subject
to any agreement, indenture, mortgage, deed of trust, equipment


                                  Page 4 of 15

<PAGE>

lease, instrument or other document to which Debtor is a party that may restrict
or inhibit Secured Party's rights or ability to sell or dispose of the
Collateral or any part thereof after the occurrence of an Event of Default (as
defined herein).

     5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor will promptly, and in no event later than twenty one (21)
days after a request by Secured Party, procure or execute and deliver all
further instruments and documents (including, without limitation, notices, legal
opinions, financing statements, mortgagee waivers, landlord disclaimers and
subordination agreements) necessary or appropriate to and take any other actions
which are necessary or, in the judgment of Secured Party, desirable or
appropriate to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes' and provisions of this Security Agreement, and will pay all reasonable
costs incurred in connection therewith. Without limiting the generality of the
foregoing, Debtor will: (i) mark conspicuously each item of chattel paper and
each other contract included in the Collateral with a legend, in form and
substance satisfactory to Secured Party, indicating that such chattel paper and
other contracts are subject to the security interests granted hereby; (ii)
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable,
which Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a promissory note
or other instrument or chattel paper (other than checks received by any Debtor
in the ordinary course of business), deliver and pledge to Secured Party such
note or instrument or chattel paper duly endorsed and accompanied by duly
executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the


                                  Page 5 of 15

<PAGE>

security interests created or purported to be created hereby, shall cause such
warehouseman, bailee, consignee, agent or processor to execute any financing
statements or other documents which Secured Party may request, and, upon the
request of Secured Party after the occurrence and during the continuation of an
Event of Default, shall instruct such person to hold all such Collateral for
Secured Party's account subject to Secured Party's instructions; (v) deliver and
pledge to Secured Party all securities and instruments (other than checks
received by Debtor in the ordinary course of business) constituting Collateral
duly endorsed and accompanied by duly executed instruments of transfer or
assignments, all in form and substance satisfactory to Secured Party; and (vi)
at the request of Secured Party, deliver to Secured Party any and all
certificates of title, applications for title or similar evidence of ownership
of all Collateral and shall cause Secured Party to be named as lienholder on any
such certificate of title or other evidence of ownership;

          (e) without the prior written consent of Secured Party, Debtor will
not in any way encumber, or hypothecate, or create or permit to exist, any lien,
security interest, charge or encumbrance or adverse claim upon or other interest
in the Collateral, except for liens permitted by and subject to the terms of
Section 7.2 of the Consulting Contract ("Permitted Liens"), and the Debtor will
defend the Collateral against all claims and demands of all persons at any time
claiming the same or any interest therein, except as expressly provided herein.
Debtor will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or except as may have been
filed by or for the benefit of Secured Party relating to this Security Agreement
or related agreements. Debtor shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor relative to the Collateral, which may in any
material way affect the value of the Collateral or the rights and remedies of
Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor will
not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or otherwise disposed of in violation of these
provisions, the security interest of Secured Party shall continue in such
Collateral or part thereof notwithstanding such sale, transfer, assignment,
exchange or other disposition, and Debtor will hold the proceeds thereof in a
separate account for Secured Party's benefit. Debtor will, at Secured Party's
request, transfer such proceeds to Secured Party in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
where permitted by law;

          (h) Except as expressly permitted by the Consulting Contract, Debtor
will


                                  Page 6 of 15

<PAGE>

not enter into any indenture, mortgage, deed of trust, contract, undertaking,
document, instrument or other agreement, except for the Consulting Contract and
any documents, instruments or agreements related thereto or issue any securities
which may materially restrict or inhibit Secured Party's rights or ability to
sell or otherwise dispose of the Collateral or any part thereof after the
occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance on the Project
Facilities and related assets with such coverages and in such amounts as are
reasonably satisfactory to Secured Party, including without limitation, loss of
business income coverage, and naming Secured Party as an additional insured,
lender loss payee and mortgagee, if applicable. Upon request, the Debtor shall
provide to the Secured Party certificates of insurance or copies of insurance
policies evidencing that such insurance is in effect at all times.;

          (j) Except as expressly permitted by the Consulting Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

          (k) Debtor will keep and maintain the Collateral in good condition,
working order and repair and from time to time will make or cause to be made all
repairs, replacements and other improvements in connection therewith that are
necessary or desirable toward such end. Debtor will not misuse or abuse the
Collateral, or waste or allow it to deteriorate except for the ordinary wear and
tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties,
will not voluntarily permit any such payments to become more than thirty (30)
days delinquent and will in a timely manner record and assign to Secured Party,
to the extent and at the earliest time permitted by law, any such liens and
rights to under such guaranties;

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;


                                  Page 7 of 15

<PAGE>

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor hereby agrees that it
shall be bound by any such payment made or incurred or act taken by Secured
Party hereunder and shall reimburse Secured Party for all reasonable payments
made and expenses incurred under this Security Agreement, which amounts shall be
secured under this Security Agreement. Secured Party shall have no obligation to
make any of the foregoing payments or perform any of the foregoing acts;

          (q) if any Debtor shall become entitled to receive or shall receive
any certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

     6. DEFAULTS AND REMEDIES

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor herein or in any report, certificate or other document furnished by
or on behalf of the Debtor pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.


                                  Page 8 of 15

<PAGE>

          (b) The Debtor shall default in the due observance or performance of
any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such default
(but specifically excluding defaults curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such 30-day
period shall be extended for so long as the Debtor shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Consulting Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor expressly covenants and agrees that Secured Party may, at
its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all advances made by Secured Party to Debtor hereunder,
all other indebtedness owed by Debtor to Secured Party and all Secured
Obligations to be immediately due and payable, whereupon all unpaid principal
and interest on said advances and other indebtedness and Secured Obligations
shall become and be immediately due and payable;

          (b) if the Consulting Contract is terminated and either (i) the Gaming
Facility has not opened for business to the general public, or (ii) the Debtor
does not or at any time fails to continue operations of Class II Gaming and/or
Class III Gaming at the Gaming Facility or any material portion of the Project
Facilities, Secured Party may immediately take possession of any of the
Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's places of business, premises and property to exercise Secured
Party's rights hereunder; and without notice (except as specified below), sell
the Collateral or any part thereof in one or more parcels at one or more public
or private sales, at any of Secured Party's offices or elsewhere, at such time
or times, for cash, on credit or for future delivery, and at such price or
prices and upon such other terms as shall be commercially reasonable. The Debtor
acknowledges and agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days' written notice to Debtor of the time and place of
any public sale or of the date on or after which any private sale is to be made
shall constitute reasonable notification. Any public sale shall be held at such
time or times during ordinary business hours and at such place or places as
Secured Party may fix in the notice of such sale. Notwithstanding the foregoing,
Secured Party shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. Secured Party may, without notice or
publication, adjourn any public or private sale, or cause the same to be
adjourned from time to time by announcement at the time and place fixed for sale
or, with respect to a private sale, after which such sale may take place, and
any such sale may, without further notice, be made at the time and place to
which it was so adjourned or, with respect to a private sale, after which such
sale may take place. Each purchaser at any such sale shall hold the property
sold free from any claim or right


                                  Page 9 of 15

<PAGE>

on the part of Debtor, and the Debtor hereby waives, to the full extent
permitted by law, all rights of stay and/or appraisal which Debtor now has or
may at any time in the future have under any rule of law or statute now existing
or hereafter enacted. The Debtor also hereby waives any claims against Secured
Party arising by reason of the fact that the price at which any Collateral may
have been sold at a private sale was less than the price which might have been
obtained at a public sale, even if Secured Party accepts the first offer
received and does not offer such Collateral to more than one offeree. The
parties hereto agree that the notice provisions, method, manner and terms of any
sale, transfer or disposition of any Collateral in compliance with the terms set
forth herein or any other provision of this Security Agreement are commercially
reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Texas Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and

          (e) The Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS


                                  Page 10 of 15

<PAGE>

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

     If to Debtor:          KTTT Enterprises
                            ATTN: Juan Garza, Jr., Council Chairman
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

     With a copy to:        Roy Bernal, Tribal Administrator
                            Kickapoo Traditional Tribe of Texas
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

     and                    Gloria E. Hernandez, Tribal Attorney
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

     If to Secured Party:   Lakes Kickapoo Consulting, LLC
                            130 Cheshire Lane
                            Minnetonka, MN
                            Attention: Timothy J. Cope

     With a copy to:        Kevin C. Quigley, Esq.
                            Hamilton Quigley Twait & Foley PLC
                            W1450 First National Bank Building
                            332 Minnesota Street
                            St. Paul, MN 55101-1314

     and                    Brian J. Klein, Esq.
                            Maslon, Edelman, Borman & Brand, LLP
                            3300 Wells Fargo Center
                            90 South Seventh Street
                            Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.


                                  Page 11 of 15

<PAGE>

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Consulting Contract, Debtor shall not assign any of their respective interest
under this Security Agreement without the prior written consent of Secured
Party. Any purported assignment inconsistent with this provision shall, at the
option of Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof; and shall supersede and replace
the parties prior Security Agreement (consulting) dated December 29, 2004
relating to the Project Facilities. Acceptance of or acquiescence in a course of
performance rendered under this Security Agreement shall not be relevant to
determine the meaning of this Security Agreement even though the accepting or
acquiescing party had knowledge of the nature of the performance and opportunity
for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor hereby irrevocably appoints Secured


                                  Page 12 of 15

<PAGE>

Party its attorney-in-fact, which appointment is coupled with an interest, with
full authority in the place and stead of Debtor and in the name of Debtor,
Secured Party or otherwise, from time to time in Secured Party's discretion (a)
to execute and file financing and continuation statements (and amendments
thereto and modifications thereof) on behalf and in the name of the Debtor with
respect to the security interests granted or purported to be granted hereby, (b)
to take any action and to execute any instrument which Secured Party may deem
necessary or advisable to exercise its rights under Section 5(p) hereunder, and
(c) upon the occurrence and during the continuance of an Event of Default, to
take any action and to execute any instrument which Secured Party may deem
necessary or advisable to accomplish the purposes of this Security Agreement,
including, without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms hereof, and execute and deliver to Debtor such documents as
Debtor may reasonably request to evidence such termination. Such reassignment
and redelivery shall be without warranty by or recourse to Secured Party, and
shall be at the expense of Debtor; provided however, that this Security
Agreement (including all representations, warranties and covenants contained
herein) shall continue to be effective or be reinstated, as the case may be, if
at any time any amount received by Secured Party in respect of the indebtedness
and obligations secured hereunder is rescinded or must otherwise be restored or
returned by Secured Party upon or in connection with the insolvency, bankruptcy,
dissolution, liquidation or reorganization of Debtor or any other person or upon
or in connection with the appointment of any intervenor or conservator of, or
trustee or similar official for, Debtor or any other person or any substantial
part of its assets, or otherwise, all as though such payments had not


                                  Page 13 of 15

<PAGE>

been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the security agreement referred to in
Section 3.1(g) of the Consulting Contract. As such and without limiting the
scope of such agreements, the provisions of Article 10 of the Consulting
Contract apply to this Agreement and are hereby incorporated by reference,
including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver. This Agreement will be governed by the internal
laws of the State of Texas without giving effect to its conflict of laws
principles. The parties hereto may not change the law governing this Agreement
without express written consent of the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                  Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        KTTT ENTERPRISES

ATTEST:


By: /s/ Juan Garza JR                   By: /s/ Rogelio Elizondo
    ---------------------------------       ------------------------------------
Name: Juan Garza JR                     Name: Rogelio Elizondo
      -------------------------------         ----------------------------------
Its: Chairman                           Title: Treasurer
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES KICKAPOO CONSULTING, LLC

ATTEST:


By: /s/ Jesus Anico                     By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Jesus Anico                       Name: Timothy J. Cope
      -------------------------------   Title: President and Chief Financial
Its: Secretary                                 Officer
     --------------------------------

       [Signature Page to Kickapoo Security Agreement - Lucky Eagle Casino
                   in favor of Lakes Kickapo Consulting, LLC]

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
                     (KTTT ENTERPRISES COLLATERAL LOCATIONS)

1. THE KICKAPOO LUCKY EAGLE CASINO COMPLEX LOCATED NEAR EAGLE PASS, TEXAS, USA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.118
<SEQUENCE>53
<FILENAME>c92713exv10w118.txt
<DESCRIPTION>TRIBAL AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.118

                                TRIBAL AGREEMENT
                        (LAKES MANAGEMENT - LUCKY EAGLE)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 19, 2005 ("Effective Date") by and among the Kickapoo Traditional
Tribe of Texas ("Kickapoo Tribe"), a federally recognized Indian tribe, and
Lakes Kickapoo Management, LLC, a Minnesota limited liability company ("Lakes
Management").

                                    RECITALS

     A. The Kickapoo Tribe is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. The Kickapoo Tribe has established KTTT Enterprises
("Kickapoo"), a wholly-owned subsidiary of and a governmental instrument of the
Kickapoo Tribe, as the legal entity which will own and operate the gaming
projects which are to be developed by the Kickapoo Tribe.

     B. Lakes Management has entered into a Management Agreement with Kickapoo
dated January 19, 2005 (as amended from time to time, the "Management
Contract"), pursuant to which Lakes Management is to provide certain management
services to Kickapoo with respect to the Kickapoo Lucky Eagle Casino and related
ancillary facilities owned by Kickapoo on behalf of the Kickapoo Tribe as
described with specificity therein.

     C. Pursuant to the terms of the Management Contract, the Kickapoo Tribe is
required to execute and deliver this Agreement to induce Lakes Management to
enter into the Management Contract together with certain additional documents
and agreements referred to therein or related thereto.

     D. The Kickapoo Tribe and Lakes Management intend that this Agreement shall
be operative and binding upon the date of execution by the parties (the
"Effective Date"); and shall supersede and replace the parties prior Tribal
Agreement dated December 29, 2004 relating to the Project Facilities and the
Management Contract.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, the Kickapoo
Tribe and Lakes Management agree as follows:


                                      -1-

<PAGE>

                                    ARTICLE 1

                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Management
Contract and/or the other documents and agreements executed by Kickapoo with
respect thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
the Kickapoo and any of Lakes Management or any of its Affiliates that is
directly or indirectly related to this Agreement, any of the other Transaction
Documents, a Gaming Project or any Project Facilities, whether arising under law
or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or any of the other
Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(n) hereof.

     "Kickapoo Entities" means individually and collectively, each of Kickapoo
and the Kickapoo Tribe.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Management Contract, the Operating Note, the security
agreements, dominion account agreements, mortgages, resolutions of limited
waiver and each other document or instrument now or hereafter executed by the
Kickapoo Tribe in favor of Lakes Management or its respective Affiliates and
related thereto or hereto or any Gaming Projects.

                                    ARTICLE 2

                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. The Kickapoo Tribe represents
and warrants to Lakes Management that:

     (a)  Organization. Kickapoo is a wholly-owned and duly organized subsidiary
          of and a duly organized governmental instrument of the KickapooTribe,
          and the Kickapoo Tribe is a federally recognized Indian tribe eligible
          to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. The Kickapoo Tribe and Kickapoo have taken all
          action required by tribal or other law without the necessity of
          further action as is necessary to authorize the applicable Kickapoo
          Entity to execute, deliver and perform each of the Transaction
          Documents that such Kickapoo Entity is party to. Each Kickapoo Entity
          that is a party to any of the Transaction Documents has all requisite
          power and authority to enter into the Transaction Documents to the
          extent a party thereto and to perform its respective obligations
          thereunder, and to consummate all other transactions contemplated
          thereby.


                                      -2-

<PAGE>

     (c)  Binding Obligations. Each of Transaction Documents (i) has been duly
          executed and delivered by each Kickapoo Entity to the extent it is a
          party thereto, and (ii) constitutes the legal, valid, binding,
          perfected and enforceable obligation of each Kickapoo Entity to the
          extent it is a party thereto, enforceable in accordance with its
          respective terms, except as enforceability may be limited by future
          bankruptcy, insolvency or similar proceedings, limitations on rights
          of creditors generally and principles of equity, and assuming the
          foregoing agreements are binding against the other parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for the Project
          constitutes "Indian lands" upon which the Kickapoo Tribe may legally
          conduct gaming under IGRA.

     (e)  Gaming Permitted. The Kickapoo Tribe is legally permitted to conduct
          Class II Gaming (and Class III Gaming in the event of a Compact)
          activities in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Kickapoo Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Kickapoo Tribe. Kickapoo will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          Kickapoo to the extent set forth in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Management to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Kickapoo or the Kickapoo Tribe or affecting the Gaming
          Facility Site or the Project and the Project Facilities, whether
          arising from contracts, instruments, orders, judgments, decrees or
          otherwise, that are likely to materially and adversely affect the
          Project Facilities or the obligations or rights of Lakes Management
          under any of the Transaction Documents to which it is a party.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          the applicable Kickapoo Entity of each Transaction Documents that such
          Kickapoo Entity is party to does not violate any Legal Requirements
          nor conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of any Kickapoo Entity, including without
          limitation the Project or the Project Facilities, or result in the
          acceleration of any obligation of any Kickapoo Entity under the terms
          of any agreement or document binding upon such party, other than a
          conflict, breach, default or imposition as shall not materially
          adversely affect the Project or the obligations or rights of Lakes
          Management under any of the Transaction Documents to which it is a
          party.


                                      -3-

<PAGE>

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of any
          Kickapoo Entity, threatened, against any Kickapoo Entity or their
          respective Affiliates, or any of the assets or properties of any of
          such entities, that could have a material adverse effect on the
          Project, the Project Facilities, or any Kickapoo Entity's ability to
          enter into or perform any of the Transaction Documents to the extent
          it is a party thereto.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Kickapoo is required
          to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of any Kickapoo Entity
          in this Agreement or the other Transaction Documents and no report or
          statement delivered to any of Lakes Management or its respective
          Affiliates by or on behalf of any Kickapoo Entity, contains any untrue
          statement or omits to state a material fact necessary to make any such
          representation, warranty, report or statement, in light of the
          circumstances in which they were made, not misleading. Each Kickapoo
          Entity has fully disclosed to Lakes Management the existence and terms
          of all material agreements and Legal Requirements, written or oral,
          relating to any particular Project.

     (m)  No Tribal Tax. Neither the Project, Project Facilities nor the
          transaction(s) between the parties contemplated by the Transaction
          Document are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax of any sort other than (i)
          reasonable pass-through taxes on Project Facilities patrons which are
          consistent with gaming resort industry practices, and (ii) license or
          other fees for background investigations performed by the Gaming
          Commission of "key employees" and "primary management officials" of
          the Gaming Facility, as defined in 25 C.F.R. Section 502.14 and 25
          C.F.R. Section 502.19, and reasonable and customary regulatory fees
          imposed on the Gaming Facility by the Gaming Commission (which amounts
          shall be subject to an annually approved budget submitted by the
          Gaming Commission).

     (n)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of the Kickapoo
          Tribe are/will be owned and operated by Kickapoo, or if any Gaming
          Project is owned by another subsidiary of the Kickapoo Tribe, then (i)
          if the Gaming Project constitutes the Project, Gaming Facility and
          Project Facilities described and defined in the Management Contract,
          such subsidiary has entered into a Management Contract and related
          documents with Lakes Management and/or its Affiliates with respect
          thereto on the same terms and conditions as are set forth in the
          Management Contract and the other Transaction Documents unless
          otherwise agreed to in writing by Lakes or its


                                      -4-

<PAGE>

          Affiliate, and has otherwise satisfied the terms and conditions
          required by Section 3.1 (f) hereof, or (ii) with respect to any other
          Gaming Projects, such subsidiary has entered into a written agreement
          with Lakes Management and/or its Affiliates granting such entity the
          same right of first refusal to manage such projects as has been
          granted to Lakes Management under the terms of Section 9.21 of the
          Management Contract, and has otherwise satisfied the required
          conditions each as set forth in Section 3.1(f) hereof.

                                    ARTICLE 3

                                    COVENANTS

Section 3.1 Covenants. The Kickapoo Tribe covenants and agrees as follows:

     (a)  Additional Documents. It shall or shall cause Kickapoo to execute any
          additional instruments as may be reasonably required by Lakes
          Management to carry out the intent of any of the Transaction Documents
          or to perfect or give further assurance of any of the rights granted
          or provided for under such Transaction Documents.

     (b)  Non-Impairment. It shall not and shall not permit Kickapoo or any of
          their other governmental instrumentalities or subsidiaries to enact
          any law, ordinance, rule or regulation impairing the rights or
          obligations of any Kickapoo Entity or any of Lakes Management or its
          respective Affiliates under any of the Transaction Documents.

     (c)  Records. It shall or shall cause Kickapoo to maintain or cause to be
          maintained full and accurate accounts and records for the Project and
          its Project Facilities according to GAAP.

     (d)  No Liens. Except as otherwise expressly permitted by the Transaction
          Documents, it shall not and shall not permit Kickapoo or any of its
          other governmental instrumentalities or subsidiaries to cause or
          voluntarily permit any lien or encumbrance to be created on the
          Project Facilities or the Gaming Facility Site.

     (e)  No Tax. It shall not and shall not permit Kickapoo or any of their
          other governmental instrumentalities or subsidiaries to impose any
          tax, fee or assessment on any of Lakes Management, its respective
          Affiliates, any Contractor, the Project and its Project Facilities,
          and/or any of the Transaction Documents other than (i) reasonable
          pass-through taxes on Project Facilities patrons which are consistent
          with gaming resort industry practices, and (ii) license or other fees
          for background investigations performed by the Gaming Commission of
          "key employees" and "primary management officials" of the Gaming
          Facility, as defined in 25 C.F.R.


                                      -5-

<PAGE>

          Section 502.14 and 25 C.F.R. Section 502.19, and reasonable and
          customary regulatory fees imposed on the Gaming Facility by the Gaming
          Commission (which amounts shall be subject to an annually approved
          budget submitted by the Gaming Commission).

     (f)  Gaming Project Ownership. All Gaming Projects shall be owned and
          operated by Kickapoo; provided that a Gaming Project may be owned and
          operated by another subsidiary of the Kickapoo Tribe so long as prior
          to acquiring such ownership, (i) if the Project, Gaming Facility and
          Project Facilities described and defined in the Management Contract
          are owned by such other subsidiary, such subsidiary shall with respect
          to Lakes Management has entered into a management agreement and
          related documents with Lakes Management and/or its Affiliates on
          substantially similar terms and conditions as are set forth in the
          Management Contract and the Transaction Documents related thereto;
          (ii) with respect to any other gaming projects owned or to be owned by
          such other subsidiary, the subsidiary has entered into a written
          agreement with Lakes Management and/or its Affiliates granting such
          entity the same right of first refusal to manage such projects as has
          been granted to Lakes Management under the terms of Section 9.21 of
          the Management Contract; (iii) Lakes Management shall have received
          the following, each in form and substance reasonably acceptable to it:
          (aa) certified copies of the organizational documents of the new
          subsidiary, together with reasonable evidence that such subsidiary is
          wholly owned by the Kickapoo Tribe, (bb) new Resolutions of Limited
          Waiver with respect to all of such documents and agreements from each
          of the new subsidiary of the Kickapoo Tribe containing substantially
          the same resolutions and terms as set forth in the Resolutions of
          Limited Waiver received by Lakes Management in connection with the
          execution of the original Transaction Documents, (cc) legal opinions
          from counsel to each of the new subsidiary and the Kickapoo Tribe with
          respect to the such new documents and agreements containing
          substantially the same opinions as provided to Lakes Management in
          connection with the execution of the original Transaction Documents,
          and (dd) the Kickapoo Tribe shall have executed and delivered an
          amendment to this Agreement incorporating all such new documents and
          agreements as additional "Transaction Documents" hereunder and such
          projects and related assets shall be subject to the same terms and
          restrictions set forth herein; and (iv) at the time of satisfaction of
          the foregoing conditions, no "Event of Default" by any Kickapoo Entity
          under the Transaction Documents has occurred and is continuing.


                                      -6-

<PAGE>

                                    ARTICLE 4

                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by the Kickapoo Tribe exists. As used in this
          paragraph, the term "Material Breach" shall mean any of the following
          circumstances (i) material failure of either of such parties to
          perform a material obligation hereunder or any other Transaction
          Document to which it is a party, or (ii) any representation or
          warranty made pursuant to Section 2.1 hereof proves to be knowingly
          false or erroneous in any material way when made or at any time shall
          fail to be true and correct in all material respects.

     (b)  The Kickapoo Tribe violates any of the covenants in Section 3.1 of
          this Agreement, and after sixty (60) days have passed following a
          request by Lakes Management to cure the violation, during which the
          violation has not been cured.

     (d)  The Kickapoo Tribe has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of such entities property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Kickapoo Tribe is no longer an Indian tribe eligible to conduct
          gaming within the meaning of IGRA.

     Section 4.2 Cure of Event Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to the Kickapoo Tribe of such default
and, if it is possible for the Kickapoo Tribe to cure the Event of Default, it
shall have thirty (30) days following receipt of notice to effect a cure;
provided, however, that if the nature of such breach (but specifically excluding
breaches curable by the payment of money) is such that it is not possible to
cure such breach within thirty (30) days, such thirty-day period shall be
extended for so long as the Kickapoo Tribe shall be using diligent efforts to
effect a cure thereof but no more than an additional sixty (60) days. Upon the
occurrence of any of the events described in Section 4.1 and during any
applicable cure period, Lakes Management may suspend its performance under the
Transaction Documents. The discontinuance or correction of an Event of Default
shall constitute a cure thereof. If the Kickapoo Tribe fails to cure the Event
of Default within the cure period, Lakes Management may take any one or more of
the following actions: (a) suspend all performance of Lakes Management under the
Transaction Documents; (b) declare all obligations of any Kickapoo Entity under
the Transaction Documents to be immediately due and owing, (c) terminate the
Management Contract; and/or or (d) pursue any other remedy available at law, in
equity or by agreement, subject to the provisions of Article 5 hereof.


                                      -7-

<PAGE>

                                    ARTICLE 5

DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT JURISDICTION;
                                  GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Del Rio,Texas.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 5 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question


                                      -8-

<PAGE>

          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  The Kickapoo Tribe hereby expressly waives, and also waives its right
          to assert, sovereign immunity and any and all defenses based thereon
          with respect to any Claims; and such parties further hereby consents
          to (i) binding arbitration under the Commercial Arbitration Rules of
          the American Arbitration Association, (ii) to empowering the
          arbitrators to take the actions and enforce the judicial remedies
          described in the Kickapoo Tribe's Resolution of Limited Waiver of
          Sovereign Immunity dated January 19, 2005 issued in connection with
          the execution of the Transaction Documents ("Resolution of Limited
          Waiver"), and (iii) judicial proceedings in or before the United
          States District Court for the Western District of Texas or if that
          court determines it is without jurisdiction, then to the courts of the
          State of Texas and all courts to which an appeal therefrom may be
          available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, the Kickapoo
          Tribe expressly waives the application of the doctrines of exhaustion
          of tribal remedies or comity that might otherwise require that Claims
          be heard first in tribal court or other tribal forum of Kickapoo
          Tribe. The waivers set forth herein only extend to claims or
          proceedings brought by Lakes Management and its Affiliates and any
          award of damages against the Kickapoo Tribe or its Affiliates shall be
          payable solely out of the Collateral (as defined in the Resolution of
          Limited Waiver) whether now or hereafter owned by Kickapoo, any other
          Kickapoo Entity or their Affiliates.

     (h)  The Kickapoo Tribe, on behalf of itself and each of its Affiliates,
          agrees that any arbitration proceeding hereunder may be consolidated
          with any other arbitration proceeding that any of Lakes Management or
          its respective Affiliates may bring against Kickapoo or any other
          Affiliates of the Kickapoo Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.


                                      -9-

<PAGE>

                                    ARTICLE 6

                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Management may assign this
Agreement to a wholly owned subsidiary without the consent of the Kickapoo
Tribe; provided further that Lakes Management, as applicable, shall remain
obligated for the performance of its subsidiary hereunder. Other than as
expressly provided in this Section 6.1, any attempted assignment or
subcontracting without prior written consent shall be void. Subject to the
preceding requirements, this Agreement is binding upon and inures to the benefit
of the parties and their respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:

If to the Kickapoo Tribe:   The Kickapoo Tribe
                            ATTN: Juan Garza, Jr., Council Chairman
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

     With a copy to:        Roy Bernal, Tribal Administrator
                            Kickapoo Traditional Tribe of Texas
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)

          and               Gloria E. Hernandez, Tribal Attorney
                            HCR 1, Box 9700
                            Eagle Pass, Texas 78852
                            (830) 757-9228 (Fax)
                            (copy to counsel does not constitute notice
                            to a party)

If to Lakes Management:     Lakes Kickapoo Management, LLC
                            130 Cheshire Lane
                            Minnetonka, MN 55305
                            Attn: Timothy J. Cope

     With a copy to:        Kevin C. Quigley, Esq.
                            Hamilton Quigley Twait & Foley PLC
                            W1450 First National bank Building
                            332 Minnesota Street


                                      -10-

<PAGE>

                            St. Paul, MN 55101-1314

          and               Brian J. Klein, Esq.
                            Maslon, Edelman, Borman & Brand, LLP
                            3300 Wells Fargo Center
                            90 South Seventh Street
                            Minneapolis, MN 55402-4140
                            (copy to counsel does not constitute notice
                            to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements; and this Agreement
shall supersede and replace the parties prior Tribal Agreement dated December
29, 2004 relating to the Project Facilities and the Management Contract.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.


                                      -11-

<PAGE>

                            [Signature Page Follows]


                                      -12-

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

THE KICKAPOO TRADITIONAL TRIBE OF TEXAS

/s/ Juan Garza, Jr.
- ----------------------------------------
Juan Garza, Jr. Council Chairman

/s/ Jesus Anico
- ----------------------------------------
Jesus Anico, Council Secretary

/s/ Rogelio Elizondo
- ----------------------------------------
Rogelio Elizondo, Council Treasurer

/s/ Jose ("Pepe") Trevino
- ----------------------------------------
Jose ("Pepe") Trevino, Council Member

/s/ Jorge Hernandez
- ----------------------------------------
Jorge Hernandez, Council Member


                                           LAKES KICKAPOO MANAGEMENT, LLC


                                           By /s/ Timothy Cope
                                              ----------------------------------
                                              Timothy J. Cope
                                           Its: President and Chief Financial
                                                Officer

 [Signature Page to Kickapoo Tribal Agreement - Management - Lucky Eagle Casino]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.119
<SEQUENCE>54
<FILENAME>c92713exv10w119.txt
<DESCRIPTION>MANAGEMENT AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.119


                              MANAGEMENT AGREEMENT

                              FOR A GAMING FACILITY
                                       AND
                          RELATED ANCILLARY FACILITIES

                                     BETWEEN

                                KTTT ENTERPRISES,
                        A WHOLLY-OWNED SUBSIDIARY OF AND
                        A GOVERNMENTAL INSTRUMENT OF THE
                      KICKAPOO TRADITIONAL TRIBE OF TEXAS,
                          A FEDERALLY RECOGNIZED TRIBE

                                       AND

                         LAKES KICKAPOO MANAGEMENT, LLC
                      A MINNESOTA LIMITED LIABILITY COMPANY

                             DATED: JANUARY 19, 2005


                                      -1-

<PAGE>

     THIS MANAGEMENT AGREEMENT, is made and entered into this 19th day of
January, 2005 by and between KTTT Enterprises ("Kickapoo"), a wholly-owned
subsidiary of and a governmental instrument of the Kickapoo Traditional Tribe of
Texas ("Kickapoo Tribe"), a federally recognized Indian tribe, located in the
State of Texas, with business offices located at HCR 1, Box 9700, Eagle Pass,
Texas 78852 and Lakes Kickapoo Management, LLC, a Minnesota limited liability
company (hereinafter referred to as "Lakes"), whose business office is located
at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     A. The Kickapoo Tribe is a federally recognized Indian tribe eligible for
the special programs and services provided by the United States to Indian
tribes, and is recognized as possessing and exercising powers of
self-government. As a tribal governmental entity, Kickapoo is vested with the
sovereign immunity of the tribe, and the Kickapoo Tribe has established
Kickapoo, a wholly-owned subsidiary and governmental instrument of the Kickapoo
Tribe, as the legal entity which will own and operate any gaming projects which
are to be developed by the Kickapoo Tribe.

     B. The United States government holds lands in the State of Texas in trust
for the benefit of the Kickapoo Tribe over which the Kickapoo Tribe possesses
sovereign governmental powers and the Kickapoo Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Kickapoo Tribe
may legally conduct gaming under applicable federal law.

     C. In compliance with the Indian Gaming Regulatory Act of 1988, P.L.
100-497, 25 U.S.C. Section 2701 et seq. as it may from time to time be amended,
the governing body of the Kickapoo Tribe has enacted a tribal ordinance
regulating the operation of gaming activities conducted on Kickapoo Tribe
"Indian lands" (hereinafter referred to as the "Gaming Ordinance"), creating the
Kickapoo Tribe Gaming Commission, and authorizing Class II and Class III gaming
on its "Indian lands" subject to the provisions of the Gaming Ordinance and a
Tribal-State Compact or gaming procedures issued by the Secretary of the U.S.
Department of the Interior.

     D. Kickapoo, on behalf of the Kickapoo Tribe, operates an established
gaming operation, known as the Kickapoo Lucky Eagle Casino, located near Eagle
Pass, Texas ("Gaming Facility," as further defined herein). This Gaming Facility
conducts Class II Gaming (and will conduct Class III Gaming activities in the
event of federal agency approval of a Tribal-


                                      -2-

<PAGE>

State Compact between the Kickapoo Tribe and the State of Texas permitting such
gaming or the Secretarial Procedures are approved and issued).

     E. The Kickapoo Tribe is committed to using any gaming activities to
provide employment and improve the social, economic, education, and health needs
of its members; to increase the revenues of the tribe; and to enhance the
Kickapoo Tribe's economic self-sufficiency and self-determination. The Kickapoo
gaming operations are expected to generate substantial revenues for the Kickapoo
Tribe, and therefore significantly improve the social, economic and health
conditions of present and future tribal members, while strengthening the
Kickapoo Tribe's overall economic self-sufficiency and self-determination.

     F. Kickapoo presently lacks the resources to operate a gaming operation at
the Gaming Facility on its own and desires to retain the services of a
management company, with knowledge and experience in the gaming industry, to
manage and operate its gaming operations and related resort facilities.

     G. Lakes has represented to Kickapoo that it has the managerial capacity to
commence operation of the Gaming Facility and Ancillary Facilities (as defined
herein); and Kickapoo has selected Lakes, and Lakes agrees, to provide the
management expertise necessary to the conducting of successful tribal gaming
operations at the Gaming Facility and the successful operation of its Ancillary
Facilities.

     H. This Management Agreement shall become effective when all the necessary
approvals listed in Section 2.19 are received (the "Effective Date") and shall
continue for a term as described in Section 2.19, unless otherwise provided in
this Management Agreement.

     I. This Management Agreement is entered into pursuant to the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as that
statute may be amended. All gaming conducted at the Gaming Facility (as defined
herein) will at all times comply with the IGRA, applicable tribal law and the
Tribal-State Compact or gaming procedures issued by the Secretary, if any.

     J. Any dispute regarding this Management Agreement between the parties or
any other Transaction Documents is to be subject to the dispute resolution and
governing law provisions contained herein, as well as the Resolution of Limited
Waiver attached hereto.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Kickapoo and
Lakes agree as follows:


                                      -3-

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

     As they are used in this Management Agreement, the terms listed below shall
have the meaning assigned to them in this Article:

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, golf course, special events center and any
other enterprise designed to promote, support, or enhance the Project's Gaming
Facility.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Class II Gaming" means games as defined in 25 U.S.C. Section 2703(7)(A),
as such law may be amended and as defined by the National Indian Gaming
Commission in 25 C.F.R. Section 502.3 and amendments thereto, but only to the
extent such games are authorized by tribal ordinance and licensed by the Gaming
Commission.

     "Class III Gaming" means all gaming that is not Class I or Class II Gaming
as defined in the IGRA, including, but not limited to, the forms of gaming
listed as Class III games by the National Indian Gaming Commission in 25 C.F.R.
Section 502.4 and amendments thereto, but only to the extent such gaming is
allowed by a Tribal-State Compact or gaming procedures issued by the Secretary,
tribal ordinance, and licensed by the Gaming Commission.

     "Commencement Date" means the first day that Lakes is legally able to
commence management of the Class II and/or Class III gaming operations conducted
at the Project's Gaming Facility under all Legal Requirements.

     "Costs of Gaming Operation" means the total of all expenses for the
operation of the Class II and/or Class III Gaming activities conducted at the
Project's Gaming Facility pursuant to Generally Accepted Accounting Principles
("GAAP"), including but not limited to the following: (1) fees imposed upon the
Gaming Facility by the National Indian Gaming Commission based upon its gross
receipts from Class II and/or Class III Gaming activities; (2) any contributions
and license/regulatory fee reimbursements payable to the State pursuant to a
Tribal-State Compact; (3) the amount, if any, required by a Tribal-State Compact
to fund or support programs for the treatment and assistance of compulsive
gamblers and for the prevention of compulsive gambling;


                                      -4-

<PAGE>

(4) license or other fees for background investigations upon "key employees" and
"primary management officials" as defined in 25 C.F.R. Section 502.14 and
Section 502.19; (5) depreciation and amortization applicable to the Gaming
Facility based upon an assumed thirty (30) years life consistent with GAAP, and
depreciation and amortization of all other assets (including without limitation
all capital replacements and improvements, and fixtures, furnishings and
equipment) located therein in accordance with GAAP; (6) costs of administration,
recruiting, hiring, firing and training employees working in or for the Gaming
Facility's Class II and/or Class III Gaming activities; (7) compensation and
benefits to Gaming Facility employees; (8) reasonable and customary regulatory
fees imposed on the Gaming Facility by the Gaming Commission (which amounts
shall be subject to the provisions of Section 5.1 contained herein), (9)
management fees to be paid Lakes under Section 5.5(b) hereof; and (10) total
gaming-related costs, fees and expenses, including, without limitation:
materials, supplies, inventory, utilities, repairs and maintenance (excluding
capital replacements, the costs of which shall be amortized as hereinabove
provided), insurance and bonding, marketing, advertising, annual audits,
accounting, legal or other professional and consulting services, security or
guard services, and such other costs, expenses or fees necessarily, customarily
and reasonably incurred in the operation of the Class II and/or Class III Gaming
activities conducted at the Gaming Facility, and reasonable and necessary travel
expenses incurred subsequent to the Commencement Date for officers and employees
of Lakes and authorized representatives of Kickapoo in connection with the
Gaming Facility's operations; provided, however, that "Costs of Gaming
Operation" shall specifically not include any license fees or costs of Lakes or
its employees in connection with licensing with either the NIGC or Gaming
Commission.

     "Costs of Ancillary Operations" means all expenses and costs pursuant to
Generally Accepted Accounting Principles incurred in operating the Project's
Ancillary Facilities in which neither Class II Gaming nor Class III Gaming is
conducted, including, without limitation: (1) depreciation and amortization
applicable to such non-gaming facilities based upon an assumed thirty (30) years
life consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(2) all employment costs relating to non-gaming employees working in or for such
commercial business facilities; (3) management fees to be paid Lakes under
Section 5.5(b) hereof; (4) non-gaming supplies and materials, insurance and
other non-gaming costs reasonably and customarily incurred in operation of the
Ancillary Facilities in which neither Class II nor Class III Gaming may be
conducted.

     "Dominion Account" shall have the meaning described in Section 2.8(a)
herein.

     "Dominion Account Agreement" shall mean the Dominion Account Agreement to
be executed by Kickapoo in favor of the Lakes in a form to be agreed to by
Kickapoo and Lakes together with all amendments, substitutions and renewals
thereof.

     "Effective Date" means the effective date of this Management Agreement as
determined pursuant to Section 2.19 herein.


                                      -5-

<PAGE>

     "Fiscal Year" means the accounting year used for the operation of the
Project as agreed upon by Lakes and Kickapoo.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project in accordance with the
standards set forth in this Management Agreement, including, without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project in accordance with the standards set forth in this
     Management Agreement.

     "Gaming Commission" means the Kickapoo Tribe Gaming Commission established,
or to be established, by the Gaming Ordinance, as amended (which ordinance must
be approved by the NIGC), with authority to license and regulate gaming
activities on "Indian lands" upon which the Kickapoo Tribe conducts gaming
activities under IGRA and which is a subordinate governmental entity of the
Kickapoo Tribe and is entitled to all sovereign governmental immunity of the
tribe.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming activities on the Gaming Facility Site,
each whether now existing or hereafter construed or acquired.

     "Gaming Facility Site" shall mean the lands to be used as the site for the
Gaming Facility described on attached EXHIBIT A, including the land upon which
the Project's Class II and/or Class III Gaming activities are conducted (which
is land upon which Class II and/or Class III Gaming may legally be conducted
under IGRA and the Tribal-State Compact).


                                      -6-

<PAGE>

     "Gaming Ordinance" means the tribal ordinance enacted by the governing body
of the Kickapoo Tribe and approved by the NIGC in compliance with the Indian
Gaming Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as
it may from time to time be amended, regulating the operation of gaming
activities conducted on Kickapoo Tribe "Indian lands", creating the Kickapoo
Tribe Gaming Commission, and authorizing Class II and Class III gaming on its
"Indian lands" subject to the provisions of the Gaming Ordinance and a
Tribal-State Compact or gaming procedures issued by the Secretary of the U.S.
Department of the Interior.

     "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession.

     "Governmental Authorities" means the United States, the BIA, the State, the
Kickapoo Tribe and any governmental court, agency, department, commission,
board, bureau or instrumentality of the foregoing (including the NIGC), but only
to the extent it has legal jurisdiction over Class II Gaming and/or Class III
Gaming at the Gaming Facility, the operation of the Project Facilities, or
Kickapoo's or Lakes' obligations under this Management Agreement or any
Transaction Document.

     "Gross Gaming Revenues" means the Project's total revenue from Class II
and/or Class III Gaming activities (excluding any insurance proceeds received
other than business interruption insurance proceeds and insurance proceeds
received to reimburse the Project for any claims included, or to be included, as
Costs of Gaming Operations).

     "Gross Ancillary Revenues" means the Project's total receipts from the sale
or rental of food, beverages, souvenirs, hotel facilities, equipment and all
other goods and services supplied for non-Class II and/or non-Class III Gaming
activities at the Ancillary Facilities that are incidental to the operation of
the Project (excluding any insurance proceeds received other than business
interruption insurance proceeds and insurance proceeds received to reimburse the
Enterprise for any claims included, or to be included, as Costs of Ancillary
Operations).

     "Gross Total Revenues" means the total of Gross Gaming Revenues and Gross
Ancillary Revenues of the Project.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Indemnity Agreement" shall mean the Indemnity Agreement between Kickapoo
and Lakes described in Section 7.5 in the form agreed to by the parties,
together with all amendments, substitutions and renewals thereof.


                                      -7-

<PAGE>

     "Legal Requirements" means any and all present and future judicial,
administrative, and federal, state, local or tribal rulings or decisions, and
any and all present and future federal, state, local and tribal laws,
ordinances, rules, regulations, permits, licenses and certificates, in any way
applicable to Kickapoo, Lakes, the Gaming Facility Site, the Project Facilities,
and the Project, including without limitation, the IGRA, the Tribal-State
Compact, and the Gaming Ordinance.

     "Limited Recourse" means that all liabilities or obligations of Kickapoo
related to this Management Agreement, the Operating Note, any Transaction
Documents, the Project Facilities, or the Project contemplated by this
Management Agreement, and any related awards, judgments or decrees, shall be
payable solely out of the undistributed and future Gross Total Revenues of the
Project or any other gaming project and any ancillary facilities related thereto
owned directly or indirectly by Kickapoo or the Kickapoo Tribe, and shall be a
limited recourse obligation of Kickapoo, with no recourse to any of Kickapoo's
assets other than such undistributed and future Gross Total Revenues of the
Project or any other gaming project and any ancillary facilities related thereto
owned directly or indirectly by Kickapoo or the Kickapoo Tribe and except as to:
(i) the Furnishings and Equipment of the Project or any other gaming project and
any ancillary facilities related thereto owned directly or indirectly by
Kickapoo or the Kickapoo Tribe, (ii) the security interest in the Gross Total
Revenues pursuant to the Dominion Account Agreement and any security interest or
liens in any Furnishings and Equipment of the Project, (iii) any mortgages or
deeds of trust on fee lands upon which the Project is located, and (iv) as
permitted under Section 10.3(d) herein and by Paragraph 5(c) of the Resolution
of Limited Waiver attached hereto as Exhibit B. In no event, except as permitted
under Section 10.3(d) herein and by Paragraph 5(c) of the Resolution of Limited
Waiver attached hereto as Exhibit B), shall Lakes have recourse to (a) the
physical property of the Project Facilities (other than Furnishings and
Equipment and to any mortgages or deeds of trust on fee lands upon which the
Project is located subject to the security interest securing the Operating
Note), (b) Net Total Revenue distributions already received by Kickapoo from the
Project and made to the Kickapoo Tribe in accordance with this Management
Agreement and/or the Dominion Account Agreement, (c) assets of the Kickapoo
Tribe purchased with such Net Total Revenue distributions, or (d) or any other
asset of the Kickapoo Tribe (other than such undistributed and future Gross
Total Revenues of the Project or any other gaming project and any ancillary
facilities related thereto owned directly or indirectly by Kickapoo or the
Kickapoo Tribe, the Furnishings and Equipment or any other gaming project and
any ancillary facilities related thereto owned directly or indirectly by
Kickapoo or the Kickapoo Tribe, and any mortgages or deeds of trust on fee lands
upon which the Project is located).

     "Lakes" means Lakes Kickapoo Management, LLC, a Minnesota limited liability
company with its business office located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

     "Management Agreement" shall mean this Management Agreement for a Gaming
Facility and Related Ancillary Facilities between the parties that deals with
the management of the Project and its operations, as the same may be amended or
modified from time to time, subject to all Legal Requirements.


                                      -8-

<PAGE>

     "Material Breach" shall have the meaning described in Section 6.1 herein.

     "Minimum Guaranteed Monthly Payments" means the minimum monthly amount
payable to Kickapoo, which amount shall be determined pursuant to Section 5.3
hereof.

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to the IGRA.

     "Net Gaming Revenues" means Gross Gaming Revenues less (1) amounts paid out
as, or paid for, prizes; and (2) Costs of Gaming Operation (excluding management
compensation as set forth in Section 5.5(b) herein).

     "Net Ancillary Revenues" means Gross Ancillary Revenues less Costs of
Ancillary Operations.

     "Net Total Revenues" means the sum of Net Gaming Revenues plus Net
Ancillary Revenues.

     "NIGC Approval" means written approval by the NIGC Chairman of this
Management Agreement.

     "Notes and Security Provisions" shall have the meaning set forth in Section
6.4(a) hereof.

     "Operating Note" means the promissory note evidencing the Minimum
Guaranteed Payment Advances under Section 5.3(b) herein and the Working Capital
Advances under Section 5.7 herein made by Lakes, substantially in a form to be
agreed to by Kickapoo and Lakes, together with all amendments, substitutions and
renewals thereof.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the business enterprise of Kickapoo created to engage in
Class II and/or Class III Gaming at the Gaming Facility located at the Gaming
Facility Site, and which shall include any other lawful commercial activity
conducted in the Ancillary Facilities including, but not limited to, operating
and managing office space, kids arcade, child care facility, hotel with swimming
pool and golf course, restaurant, RV park, retail stores, entertainment
facilities, or the sale of fuel, food, beverages, alcohol, tobacco, gifts, and
souvenirs, and any other amenities which the parties mutually agree should be
included as part of the Project.

     "Project Accounts" shall have the meaning described in Section 2.8 herein.


                                      -9-

<PAGE>

     "Project Facilities" means a gaming resort project constructed on Kickapoo
Tribe's trust and/or fee lands located near Eagle Pass, Texas, including the
permanent buildings, structures and improvements used by the Project for its
gaming and ancillary operations, together with all furniture, fixtures and
equipment and personal property (whether tangible or intangible) to be used in
connection with the operations, each whether now existing or hereafter
constructed or acquired.

     "Replacement" shall have the meaning described in Section 6.4(c) herein.

     "Resolution of Limited Waiver" refers to the limited waiver of sovereign
immunity to be adopted by Kickapoo in the form attached hereto as EXHIBIT B and
evidencing all approvals required pursuant to Kcikapoo's governing documents and
applicable law (it being understood and agreed that Kickapoo shall take such
further actions to ratify, adopt and enforce the attached form of Resolution of
Limited Waiver as shall be required by law or regulation due to future changes
in its own legal or governing status to fully preserve its stated intent).

     "Scope of Project Description Sheet" shall mean the Scope of Project
Description Sheet dated January 19, 2005, which substantially describes the
scope of the Project currently contemplated by Kickapoo and Lakes.

     "Secretary" means the Secretary of the Interior of the United States, or
her appropriately designated representative/agent.

     "Security Agreement" shall mean the Security Agreement to be executed by
Kickapoo in favor of Lakes in a form to be agreed to by Kickapoo and Lakes,
together with all amendments, substitutions and renewals thereof.

     "State" means the State of Texas wherein the Gaming Facility Site is
located.

     "Transaction Documents" shall have the meaning described in Section 9.12(b)
herein.

     "Tribal Agreement" shall mean the agreement between the Kickapoo Tribe and
Lakes or its Affiliate as described in Section 9.12(i).

     Tribal-State Compact" means an agreement which may be entered into between
the Kickapoo Tribe and the State concerning Class III Gaming and any amendments
or other modifications thereto, which agreement must be approved by the
Secretary and published in the Federal Register.

     "UCC Financing Statements" means UCC-1 financing statements naming Kickapoo
as debtor and naming Lakes or any third party lenders providing funding to the
Project as a secured party, in the form approved by the parties.


                                      -10-

<PAGE>

     "Working Capital Advances" shall have the meaning described in Section 5.7
herein.

                                    ARTICLE 2
                           AUTHORITY AND DUTY OF LAKES

     2.1 Appointment as Agent. Subject to the terms and conditions of this
Management Agreement, Kickapoo hereby appoints Lakes to act as the exclusive
agent for Kickapoo for all matters related to the management of the operations
of the Project Facilities and the Project during the term of this Management
Agreement. Lakes' agency responsibilities shall include, among other things,
maintenance and improvement of the Project Facilities, management and operation
of the Project's Class II and/or Class III Gaming activities within the Gaming
Facility, and all other revenue producing activities that are conducted by the
Project in the Ancillary Facilities, such as the sale of food and beverages.
Lakes accepts such appointment as Kickapoo's exclusive agent for the term of
this Management Agreement. Subject to the provisions of this Management
Agreement and specifically the restrictions in this Article 2 and the budget
provisions in Article 5 hereof, Lakes shall have, and Kickapoo does hereby grant
to Lakes, the power and authority as agent for Kickapoo, to exercise the rights
of Kickapoo under and to execute, modify, or amend any contracts associated with
the operations of the Project Facilities and Project (excluding this Management
Agreement or compacts or other agreements with the State or any other
governmental agency, which shall remain the sole and exclusive authority of the
Kickapoo Tribe), including, without limitation, purchase orders, equipment and
retail leases, contracts for services, including utilities, and maintenance and
repair services, relating to the operation of the Project Facilities and the
Project except for real estate agreements and contracts (excluding retail
leases); provided, however, that in no event shall Lakes execute any contracts
or agreements which require payments exceeding $250,000 in the aggregate, or
which have a term exceeding one (1) year. The duties and authorities of Lakes
shall be subject in all events to receipt of all necessary licenses, consents or
approvals from the Gaming Commission.

     2.2 Limitations. Lakes shall have no authority to waive or impair
Kickapoo's sovereign immunity. Except as stated herein, Lakes shall have no
authority as Kickapoo's agent under this Management Agreement without the prior
written approval of Kickapoo (not to be unreasonably withheld): (a) to incur
costs which are materially in excess of the expenditures to be agreed upon in
the operating budget or the capital expenditure budget to be developed pursuant
to Section 5.1 hereof; (b) to sell, encumber or otherwise dispose of any
personal property or equipment located in the Project Facilities, except for
inventory sold in the regular course of business and other items which must be
replaced due to age, obsolescence, or wear and tear; (c) to purchase any goods
or services from Lakes or any of Lakes' affiliated companies as a Costs of
Gaming Operations or Costs of Ancillary Operations unless such arrangement is
specifically approved in writing by Kickapoo. Except as specifically authorized
in this Article 2, Lakes shall not hold itself out to any third party as the
agent or representative of Kickapoo.

     2.3 Lakes' Authority and Responsibility.


                                      -11-

<PAGE>

          (a) Lakes, through the Project's general manager, shall conduct and
direct all business and affairs in connection with the day-to-day operation,
management and maintenance of the Project and the Project Facilities, including
the establishment of operating days and hours. It is the parties' intention that
the Project Facilities be open 24 hours daily, seven days a week. Lakes is
hereby granted the necessary power and authority to act, through the Project's
general manager, in order to fulfill all of its responsibilities under this
Management Agreement. Nothing herein grants or is intended to grant Lakes a
titled interest to the Project Facilities or to the Project. Lakes hereby
accepts such retention and engagement. Kickapoo shall have the sole proprietary
interest in and ultimate responsibility for the conduct of all Class II and/or
Class III Gaming conducted by the Project, subject to the rights and
responsibilities of Lakes under this Management Agreement.

          (b) In managing, operating, maintaining and repairing the Project and
the Project Facilities under this Management Agreement, Lakes' duties, through
the Project's general manager, shall include, without limitation, the following:
(i) Lakes shall use reasonable measures for the orderly physical administration,
management, and operation of the Project and the Project Facilities, including
without limitation cleaning, painting, decorating, plumbing, carpeting, grounds
care and such other maintenance and repair work as is reasonably necessary; (ii)
Lakes shall comply with all duly enacted statutes, regulations and ordinances of
the Kickapoo Tribe; and (iii) Lakes shall comply with all applicable provisions
of the Internal Revenue Code including, but not limited to, the prompt filing of
any cash transaction reports and W-2G reports that may be required by the
Internal Revenue Service of the United States or under the Tribal-State Compact.

     2.4 Compliance with Laws.

          (a) Lakes, through the Project's general manager, shall assist
Kickapoo in compliance with all terms and conditions of the Tribal-State
Compact, the Gaming Ordinance, IGRA and any gaming regulations (collectively,
the "Governing Laws"), the violation of which would materially impair the
conduct of gaming permitted to be conducted under IGRA by the Project. Without
limiting the foregoing, Lakes shall also supply the NIGC with all information
necessary to comply with the National Environmental Policy Act, as it may be
amended from time to time, and comply with NIGC's regulations relating thereto.
Lakes shall ensure compliance with requirements concerning the reporting and
withholding of taxes with respect to the winnings from gaming operations
pursuant to this Management Agreement. Kickapoo agrees to cooperate with Lakes
and aid Lakes in ensuring compliance with the foregoing laws, regulations and
requirements. In managing and operating the Project Facilities and the Project,
Lakes shall comply with all laws, rules, regulations, ordinances, compacts and
all other agreements affecting the same, including without limitation the
Governing Laws.

          (b) The parties shall use their best efforts to obtain all necessary
approvals of Governmental Authorities of this Management Agreement.


                                      -12-

<PAGE>

     2.5 Security. Lakes, through the Project's general manager, shall provide
for appropriate security for the operation of the Project Facilities. All
aspects of Project Facilities security shall be the responsibility of Lakes.
Upon agreement of Kickapoo and Lakes, any security officer may be bonded and
insured in an amount commensurate with his or her enforcement duties and
obligations. The cost of any charge for security and increased public safety
services will be a Costs of Gaming Operations or Costs of Ancillary Operations,
as appropriate.

     2.6 Accounting, Financial Records, and Audits.

          (a) Lakes, through the Project's general manager, shall maintain full
and accurate records and books of account for operations of gaming activities
and related ancillary operations managed by Lakes. Such records shall be
maintained at Lakes' office located within the Project Facilities and shall be
made available for immediate inspection and verification at all times.
Inspection or verification by the Governmental Authorities shall be coordinated
through the Gaming Commission.

          (b) Prior to the Commencement Date, and subject to the approval of
Kickapoo and the Gaming Commission, which approvals shall not be unreasonably
withheld and which shall occur prior to the Commencement Date, Lakes, through
the Project's general manager, shall establish and maintain such approved
accounting systems and procedures that shall: (i) include procedures for
internal accounting controls; (ii) permit the preparation of financial
statements in accordance with GAAP ; (iii) be susceptible to audit; (iv) allow
the Project, Kickapoo and NIGC to calculate the annual fee under 25 CFR Section
514.1; (v) permit the calculation of Lakes' compensation under Section 5.5(b)
herein; and (vi) provide for the allocation of operating expenses or overhead
expenses among Kickapoo, the Project and Lakes, or any other user of shared
facilities or services. Supporting records and the agreed upon accounting system
shall be sufficiently detailed to permit the calculation and payment of Lakes'
compensation hereunder and to permit the performance of any fee or contribution
computations required under IGRA, a Tribal-State Compact and other applicable
laws or regulations.

          (c) Net Gaming Revenues, Net Ancillary Revenues, and Net Total
Revenues will be calculated by Lakes, through the Project's general manager, for
purposes of distribution monthly in accordance with Section 5.5 and copies of
such calculations shall be promptly supplied to Kickapoo as required by Section
5.4 herein.

          (d) All records shall be maintained so as to permit the preparation of
financial statements in accordance with generally accepted accounting principles
consistently applied and in accordance with procedures to be mutually agreed
upon by the parties. Lakes, through the Project's general manager, shall, as a
Costs of Gaming Operations, furnish to Kickapoo and the Gaming Commission,
monthly financial reports in accordance with Section 5.4 herein. Such reports
shall provide reasonable detail as requested by Kickapoo and the Gaming
Commission with respect to revenues and expenses of each profit center of the
Project. In addition, all gaming


                                      -13-

<PAGE>

operations conducted within the Gaming Facility shall be subject to special
outside annual audits, which the Gaming Commission may cause to be conducted,
and all contracts or subcontracts for supplies, services or concessions for a
contract amount in excess of $25,000 annually relating to gaming activities
within the Gaming Facility shall be subject to audits, which audits the Gaming
Commission may cause to conducted by an independent certified public accountant
from a Big Five accounting firm with more than five (5) years experience in
audits of gaming enterprise operations selected and approved by the Gaming
Commission. The cost of such audits and audit reports (including the annual
audit under Section 5.6 herein) shall constitute Costs of Gaming Operation. The
Lakes shall make any reports or presentations to Kickapoo officials as are
requested.

     2.7. Cash Monitoring. Lakes, through the Project's general manager, will
promulgate, and all parties and their respective employees, agents, and
representatives will obey operational policies consistent with the Gaming
Ordinance respecting the handling of cash, security systems, and access to cash
cage, counting rooms, and other places where cash is kept and handled. Kickapoo
and the Gaming Commission and its authorized representatives shall have the
right to monitor and investigate systems for cash management implemented by
Lakes and to verify daily Gross Gaming Revenues, Gross Ancillary Revenues, and
Gross Total Revenues.

     2.8 Bank Accounts, Reserve Funds and Permitted Investments.

          (a) On or prior to the Commencement Date, Kickapoo and Lakes shall
execute the Dominion Account Agreement and create the Dominion Account
("Dominion Account") described therein. Gross Gaming Revenues and Gross
Ancillary Revenues shall be deposited daily into the Dominion Account, which
shall be subject to the lien of the Dominion Account Agreement and established
at a commercial bank, of Kickapoo's choice, organized under the laws of the
United States of America or any state thereof provided such bank is a member of
the Federal Deposit Insurance Corporation and has combined capital, undivided
profits and surplus of at least $500,000,000. Lakes shall also establish other
segregated bank accounts with the approval of Kickapoo for the operation of the
Project (the "Project Accounts"), which accounts must indicate the custodial
nature of the accounts. The signatures of authorized representatives of Lakes
shall be the only signatures required to make withdrawals (by check or
otherwise) from such accounts for single withdrawals of less than $250,000,
provided that the monies withdrawn by Lakes are to be used only for the purposes
set forth herein and provided further that if the amount of any single
withdrawal exceeds $250,000 (excluding payout and prizes and transfers to any
designated payroll accounts, taxes, and purchases of cash for day-to-day
operational purposes, or Lakes' compensation under Section 5.5(b) herein), then
the signature of Kickapoo's designated representative will also be required.

          (b) Lakes agrees that subject to the terms of Sections 5.3(b) and
6.4(b) hereof, Lakes shall make or permit timely transfers from the Dominion
Account to the Project Accounts of all funds needed to pay (i) Costs of Gaming
Operations; (ii) Costs of Ancillary Operations; (iii) required debt service on
the Project Facilities, as well as any other third party loans to which Lakes


                                      -14-

<PAGE>

has consented in writing pursuant to the terms of this Management Agreement or
other agreement; (iv) the Minimum Guaranteed Monthly Payment; (v) Minimum
Guaranty Payment Advances; and (vi) disbursements required pursuant to Section
5.5 hereof. Upon the termination of this Management Agreement and so long as:
(a) any amounts remain owing to Lakes hereunder or with respect to any related
Transaction Document, and (b) the Project shall continue in operation pursuant
to the terms of Section 6.4 hereof, then Lakes shall continue to permit
transfers from the Dominion Account to the Project Accounts for payment of the
amounts described above, but shall specifically exclude any Costs of Gaming
Operations or Costs of Ancillary Operations otherwise payable to Kickapoo or any
of its Affiliates with the exception of reasonable gaming license fees and any
costs or expense associated with the provision of reasonable supplies and/or
services provided by Kickapoo to the Project.

          (c) Surplus funds deposited in the Dominion Account and the Project
Accounts may be invested by Lakes in the following permitted investments: (i) a
money market mutual fund registered under the Investment Company Act of 1940
that invests exclusively in (1) marketable direct obligations issued or
unconditionally guaranteed by the United State Government or issued by an agency
thereof and backed by the full faith and credit of the United States, (2)
commercial paper having, at the time of acquisition, a rating of A-1 or P-1 or
better from either Standard & Poor's Corporation or Moody's Investors Service,
Inc., respectively; or (ii) other investments as may be directed by Lakes with
the prior written consent of Kickapoo.

     2.9 Enforcement of Rights.

          (a) During the term of this Management Agreement, except as otherwise
provided in Section 2.9 (b) herein, Kickapoo and Lakes shall mutually agree with
respect to the handling of the defense, prosecution or settlement of civil
disputes with third parties relating to gaming and other management activities
conducted or contracts executed by Lakes, as agent for Kickapoo. The parties
will assist and cooperate with each other with respect to such third-party
claims and disputes. All uninsured liabilities incurred or expenses incurred by
Kickapoo and Lakes or any of the employees, officers or directors of any party
in defending such claims by third parties or prosecuting claims against third
parties shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending upon the circumstances and nature of the claim,
except with respect to claims and liabilities resulting from criminal
misconduct, which shall be governed by Article 7 herein.

          (b) All claims brought against Kickapoo or Lakes or any of the
employees, officers or directors of any party arising out of or relating to
gaming or other ancillary operations conducted pursuant to this Management
Agreement that may be settled and released for a total settlement amount of less
than $100,000 may be paid and settled by Lakes on behalf of Kickapoo and/or
Lakes in accordance with Lakes' good faith business judgment.

     2.10 Fire and Safety Services. Lakes, through the Project's general
manager, shall be responsible for obtaining adequate coverage for fire and
safety services and may, in its discretion,


                                      -15-

<PAGE>

have such services provided on a contractual basis by the local fire and police
departments. The costs of any fire and safety protection services shall be
appropriately allocated between Costs of Gaming Operation and Costs of Ancillary
Operations, and, if provided by a department of the Kickapoo Tribe, shall not
exceed the actual cost of providing such services.

     2.11 Timely Payment of Costs of Gaming Operations and Costs of Ancillary
Operations. Lakes shall be responsible for paying Costs of Gaming Operation and
Costs of Ancillary Operations on behalf of the Project from the bank account(s)
established pursuant to Section 2.8 herein so as to avoid any late-payment
penalties, except those incurred as a result of good faith payment disputes) to
the extent funds of the Project are available; provided, however, that payment
of all such costs (and taxes or similar payments arising from Project
operations) shall be solely the legal responsibility of the Project.

     2.12 Acquisition of Gaming and Other Equipment.

          (a) All gaming equipment shall be acquired by Lakes, as agent for
Kickapoo, on behalf of the Project, as agent for Kickapoo, from Gaming
Commission licensed distributors and manufacturers.

          (b) All acquisitions of new equipment after the public opening of the
Project Facilities shall be purchased by Lakes, as agent for Kickapoo, on behalf
of the Project on a cash on delivery basis, unless otherwise agreed by Kickapoo.

     2.13 Hours of Operation. Unless otherwise agreed by the parties, the
Project Facilities shall be operated seven days per week and twenty-four hours
per day, subject to any restrictions in the IGRA, the Gaming Ordinance and a
Tribal-State Compact.

     2.14 Access to Operations. Lakes, through the Project's general manager,
shall provide immediate access by appropriate officials of the Gaming Commission
and Kickapoo's designated representative to the gaming operation, including all
books and records in addition to those listed in the access requirements set
forth in Sections 2.6 and 2.7 herein.

     2.15 Increased Public Safety Services. The parties agree that increased
actual costs of law enforcement and police protection services required as a
result of Class II and/or Class III Gaming in the Gaming Facility shall be paid
as Costs of Gaming Operation.

     2.16 Advertising. Lakes, through the Project's general manager, shall
contract for and place advertising, subject to prior approval of the general
concepts of the advertising by Kickapoo. Advertising costs will be included in
the operating budgets prepared in accordance with Article 5 herein.

     2.17 Certain Meetings. The parties agree that, to facilitate oversight of
the activities conducted pursuant to this Management Agreement and to maintain
communication generally between the individuals who will be involved in
supervising those activities, Kickapoo or its


                                      -16-

<PAGE>

designated representative and the Lakes' principal individuals will meet at
least monthly to review operations of the Project Facilities and any current
issues pertaining thereto.

     2.18 Maintenance. Lakes, through the Project's general manager, will cause
the Project Facilities to be repaired and maintained and operated in a clean,
good and orderly condition. Repairs and maintenance will be paid as Costs of
Gaming Operation if related to the gaming operations of the Project, or as Costs
of Ancillary Operation if related to the other ancillary operations of the
Project.

     2.19 Term. Notwithstanding the date of signature of the parties hereto,
this Management Agreement shall become effective automatically (without need of
amendment, ratification or other action of the parties) upon written approval of
the Gaming Ordinance and this Management Agreement by the Chairman of the
National Indian Gaming Commission. The Commencement Date shall be the first day
upon which Lakes may legally manage the Gaming Facility's gaming operations
under IGRA. Unless sooner terminated as provided herein, this Management
Agreement shall continue for a term of seven (7) years from the Commencement
Date, provided however that the Notes and Security Provisions, including without
limitation, each of (a) the Security Agreement, Dominion Account Agreement,
Indemnity Agreement and the UCC Financing Statements, and (b) sections 2.8 and
Article 7 hereof shall each survive and remain effective until terminated under
Article 6 hereof and the amounts owing to Lakes or its Affiliate by Kickapoo
under this Management Agreement and related Transaction Documents have been paid
in full.

     2.20 Kickapoo Representatives. Kickapoo hereby acknowledges and agrees that
to the extent any authorization, consent or other approval of the Kickapoo is
required under this Management Agreement or any related Transaction Documents
and Kickapoo shall provide to Lakes a resolution naming any individual or
individuals authorized to represent Kickapoo for purposes or for the purpose of
the operation and performance of this Management Agreement and related
Transaction Documents, then Lakes shall be entitled to rely on all decisions,
authorizations, consents, and approvals provided by such individual or
individuals, as applicable, until such time as Kickapoo shall deliver to Lakes
an additional resolution revoking or otherwise modifying such authority.

     2.21 Gaming Facility Site. Kickapoo and Lakes mutually agreed that the site
to be used for the Gaming Facility ("Gaming Facility Site") shall be those lands
described on attached EXHIBIT A, (which is land upon which Class II and/or Class
III Gaming may legally be conducted under IGRA and the Tribal-State Compact).

     2.22 Scope of Project. The scope of the Project subject to this Management
Agreement shall be subject to the mutual approval of the parties. It is
contemplated the scope of the Project will be substantially as described on the
Scope of Project Description Sheet dated January 19, 2005, subject to such
changes as may be necessary or appropriate taking into account competitive
conditions, financing and other circumstances. The parties understand that
market, Tribal-State Compact, governmental or other conditions may change and it
may be necessary to expand or


                                      -17-

<PAGE>

decrease the scope of the Project.

     2.23 Non-Encumbering Assets. Kickapoo agrees not to encumber any of the
assets of the Project Facilities or the Project without the written consent of
Lakes, which consent will not be unreasonably withheld; except that Kickapoo
shall have the right without the consent of Lakes to grant security interests in
the Project's revenues which are subordinate to Lakes' interests under this
Management Agreement and all related Transaction Documents pursuant to a
subordination agreement in form and substance acceptable to Lakes. Kickapoo
agrees to enter into a limited, transactional waiver of sovereign immunity and
consent to jurisdiction and arbitration as to Lakes in connection with this
Management Agreement and any related Transaction Documents, as provided in the
Resolution of Limited Waiver.

                                    ARTICLE 3
                                PERSONNEL MATTERS

     3.1 Employees. All employees involved with operation of the Gaming
Facility's Class II and/or Class III Gaming activities and related ancillary
activities throughout the Project Facilities subject to management by Lakes
under this Management Agreement shall be employees of Kickapoo. Subject to the
applicable requirements in the Tribal-State Compact, the employment relationship
shall be governed by the Kickapoo Tribe's substantive law and any applicable
federal law, subject to the Kickapoo Tribe's reasonable Indian preference
policies, and all matters will be subject to dispute resolution procedures in
the manner described in this Management Agreement. Lakes, on behalf of the
Project, shall be solely responsible for the hiring, training, promoting, and
firing of all such employees except for the general manager as agreed to by
Kickapoo and Lakes, whose employment, advancement and termination shall be
subject to approval of Kickapoo, such approval not to be unreasonably withheld.
Lakes shall develop a policy and procedure in conjunction with Kickapoo, to
implement an executive development program for employees who are members of the
Kickapoo Tribe whereby members will be prepared through training and education
to assume key management positions within the gaming and ancillary operations of
the Project. All salaries, wages, employee insurance, worker compensation
premiums, employment taxes, government exactions of any kind related to
employment, benefits, and overhead related to the hiring, supervising, and
discharge of employees, will be Costs of Gaming Operations or Costs of Ancillary
Operations, as appropriate.

     3.2 Project Employee Policies. Lakes, through the Project's general
manager, shall prepare a draft of personnel policies and procedures (the
"Project Employee Policies"), including a job classification system with salary
levels and scales, which policies and procedures shall be subject to approval by
Kickapoo. The Project Employee Policies shall include a grievance procedure in
order to establish fair and uniform standards for the Project employees, which
will include procedures for the resolution of disputes between the Project and
Project employees. At a minimum, the Project Employee Policies shall provide for
an employee grievance process which provides the following:


                                      -18-

<PAGE>

     A written "Board of Review" process will be created by the Project's
     general manager to provide Project employees with a procedure for bringing
     work related issues to the attention of Project management so they may be
     promptly and permanently resolved in a fair and equitable manner. The Board
     of Review process will be available to all Project employees except: (1)
     employees at the director level and above, and (2) employees discharged for
     actions involving violations of tribal gaming regulations or law, or
     federal, state, or local law. Project employees will be eligible to use the
     Board of Review process if they have: (a) completed thirty (30) work
     shifts, and progressed through the chain of command in their home
     department in the Project, (b) brought the work related issue to the
     attention of the Project's human resources department, and (c) completed a
     Board of Review hearing request form within the allotted time frame. The
     Project's human resources department shall be responsible for selecting
     hearing panel members as outlined in written procedures to be adopted. The
     Board of Review will be empowered to make the full range of decisions
     available and appropriate (i.e. providing back pay and an apology to the
     employee, or upholding the employee's discharge). The Board of Review's
     decision on the work related issue will final and binding, and there will
     be no appeal beyond the Board of Review.

Lakes, through the Project's general manager, shall be responsible for
administering the Project Employee Policies. Any material revisions to the
Project Employee Policies shall not be effective unless they are approved by
Kickapoo. All such actions shall comply with applicable tribal law, subject to
the applicable requirements in a Tribal-State Compact.

     3.3 Employee Background Checks. A background investigation shall be
conducted by the Gaming Commission in compliance with all Legal Requirements, to
the extent applicable, on each applicant for employment as soon as reasonably
practicable. No individual whose prior activities, criminal record, if any, or
reputation, habits and associations are known to pose a threat to the public
interest, the effective regulation of Class II and/or Class III Gaming, or to
the gaming licenses of Lakes or the Project, or to create or enhance the dangers
of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of Project gaming activities, shall knowingly be employed by the Project
or Kickapoo. The background investigation procedures employed by the Gaming
Commission shall be formulated in consultation with Lakes and shall satisfy all
regulatory requirements independently applicable to Lakes; provided, however,
that this provision shall not be deemed to limit or impair the exclusive
authority of the Gaming Commission pursuant to the Gaming Ordinance or the
exercise of its discretion thereunder. Any cost associated with obtaining such
background investigations shall constitute Costs of Gaming Operation.

     3.4 Kickapoo Tribe and Indian Preference. Lakes, through the Project's
general manager, shall adhere in regard to recruitment, employment, reduction in
force, promotion, training and related employment actions to a publicly
announced policy and practice of Kickapoo Tribe Preference and/or any publicly
announced policy of Indian preference, both of which must be reasonably
promulgated by the Kickapoo Tribe.


                                      -19-

<PAGE>

     3.5 Conflict of Interest.

          (a) Lakes covenants that it will not unduly interfere with, or attempt
to influence the internal affairs or government decisions of the Kickapoo Tribe
or any of its Affiliates for its gain or advantage.

          (b) Lakes hereby certifies that no payments have been made or will be
made in the future by Lakes to any tribal official, relative of any tribal
official or government employee for the purpose of obtaining any special
privilege, gain, advantage or consideration for Lakes in connection with this
Management Agreement, except for the fees payable to the Gaming Commission and
amounts payable to Kickapoo pursuant to this Management Agreement. However,
nothing in this provision shall prohibit Lakes from making contributions to
community organizations within the Kickapoo Tribe or to the Kickapoo Tribe for
the purpose of funding community activities.

          (c) No member of the Gaming Commission, or any Kickapoo Tribe tribal
court official may be employed by Lakes or be a "Party in Interest" as defined
in Section 8.1 (a) herein with respect to this Management Agreement or a gaming
equipment agreement or have any direct or indirect financial interest in the
gaming to be operated pursuant to this Management Agreement. tribal officials
shall not be eligible for employment at the Project Facilities and Project, but
will be eligible to enter into contracts for the provision of goods or services
for the Project Facilities and Project.

          (d) Lakes further agrees to comply with all conflict of interest rules
set forth in regulations or ordinances of the Kickapoo Tribe.

     3.6 Participation in Tribal Functions. Lakes acknowledges that personnel
who are members of the Kickapoo Tribe have cultural and religious
responsibilities to perform in regard to tribal rituals and similar activities.
Lakes, through the Project's general manager, will schedule working hours and
take other actions, with the assistance and advice of Kickapoo, to accommodate
tribal members in performing these responsibilities without affecting their
employment status or position.

                                    ARTICLE 4
                                    INSURANCE

     4.1 Duty to Maintain. Lakes, acting as agent of Kickapoo, shall maintain
during the course of this Management Agreement, appropriately allocated as a
Cost of Gaming Operation or a Cost of Ancillary Operations, insurance coverages
in forms and amounts that will adequately protect Kickapoo and Lakes, but in no
case less than the amounts set forth in this Article, or as required by a
Tribal-State Compact.

     4.2 Workers' Compensation. Lakes, acting as agent of Kickapoo, shall
maintain


                                      -20-

<PAGE>

adequate workers' compensation insurance in accordance with all applicable laws,
including employer's liability insurance, in the amounts agreed to by the Lakes
and Kickapoo, or as required by the Tribal-State Compact.

     4.3 Commercial General Liability. Lakes, acting as agent of Kickapoo, shall
purchase on Kickapoo's behalf and maintain commercial general liability
insurance covering operations of the Project, including blanket contractual
liability coverage, broad form property liability coverage, and personal injury
coverage in the amount of $1,000,000 per person/$3,000,000 per occurrence for
bodily injury and $1,000,000 per person/$3,000,000 per occurrence for property
damage, or as required by the Tribal-State Compact or the Gaming Commission.

     4.4 Automobile. Lakes, acting as agent of Kickapoo, shall maintain
comprehensive automobile liability insurance covering operations of the Project,
including all owned, hired and non-owned automobiles, trucks, buses, trailers,
motorcycles or other equipment licensed for highway use with limits and coverage
approved by Lakes and Kickapoo.

     4.5 Kickapoo and Lakes to be Insured. Insurance set forth in Sections 4.3
and 4.4 hereof shall name Kickapoo and Lakes as insureds, and such policies
shall be endorsed to prohibit the insurer from raising tribal sovereign immunity
as a defense to the payment of claim by the insurer.

     4.6 Property Insurance. Lakes shall also, acting a agent for Kickapoo,
procure replacement value all-risk casualty and extended hazard insurance in
appropriate coverage amounts which shall insure the Project Facilities and any
fixtures, improvements and contents located therein against lost or damage by
fire, theft and vandalism. Such casualty insurance policy or policies shall name
Kickapoo, Lakes, and the Project Facilities as insureds. All such casualty
insurance proceeds shall be applied to the immediate replacement of the
applicable Project Facilities' part or fixture, improvements or contents therein
unless the parties agree otherwise. Subject to the terms of Sections 6.4 and 6.6
hereof, any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Dominion Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such excess proceeds
(except business interruption insurance proceeds) shall be excluded from Net
Total Revenues for purposes of calculating the management compensation of Lakes
under Section 5.5(b) hereof.

     4.7 Fidelity Bond. Lakes, acting as agent of Kickapoo, shall maintain
fidelity bonds on Project employees and in such amounts as Lakes and Kickapoo
shall deem reasonable.

     4.8 Unemployment Insurance. Lakes, acting as agent for Kickapoo, shall
maintain adequate unemployment compensation/disability insurance with respect to
the Project employees in compliance with the Tribal-State Compact, if
applicable.

     4.9 Evidence of Insurance. From time to time as reasonably requested by
Kickapoo, Lakes shall supply to Kickapoo and any necessary Governmental
Authorities copies of the


                                      -21-

<PAGE>

insurance policies applicable to the Project Facilities or Project operations as
required by this Article.

     4.10 Insurance Proceeds. Subject to the terms of Sections 6.4 and 6.6
hereof, any insurance proceeds received with respect to the Project, except as
provided in Section 4.6 hereof, shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided, however, that if there is any insurance recovery for a
claim related to the operation of the Project for which either Kickapoo or Lakes
has previously paid from its own separate funds, then, to the extent of amounts
paid by either of such parties, the insurance proceeds will be paid over to them
and the balance shall be deposited into the Dominion Account as above.

                                    ARTICLE 5
                     BUDGETS, COMPENSATION AND REIMBURSEMENT

     5.1 Projections and Budgets.

          (a) The parties shall use their best efforts to project expected
revenues and expenses for the first three (3) years of Lakes' operation of the
Project, and the projections, as described in the business plan to be submitted
to the NIGC with this Management Agreement, represent the parties' mutual
expectations.

          (b) Annual operating budgets shall be submitted by Lakes to Kickapoo
by no later than thirty (30) days prior to the commencement of the next Fiscal
Year for the operation of the Project. Each annual operating budget shall be
subject to approval or disapproval within thirty (30) days of submission to
Kickapoo, such approval not to be unreasonably withheld. Kickapoo may approve or
disapprove of any item on such proposed budget. The parties recognize that
mutually agreeable adjustments may be made to previously approved operating
budgets from time to time during any Fiscal Year, to reflect the impact of
unforeseen circumstances, financial constraints, or other events. Lakes agrees
to keep Kickapoo informed regarding any items of revenue or expense that are
reasonably anticipated to cause a material change to the operating budget
previously approved by Kickapoo. Lakes shall operate the Project and make
expenditures in connection therewith in accordance with such approved operating
budget. In the event Kickapoo and Lakes are unable to resolve any disputed
portions of the proposed operating budget before commencement of the Fiscal
Year, the undisputed portions of the operating budget shall be deemed adopted
and approved, and those line items in dispute shall be determined by increasing
the preceding Fiscal Year's actual expense for the corresponding line items by
an amount determined by Lakes which does not exceed the increase in the Consumer
Price Index for All Urban Consumers published by the U.S. Bureau of Labor
Statistics, U.S. City Average, all items (1997-98=100), or any successor or
replacement index thereto, for the Fiscal Year prior to the Fiscal Year with
respect to which adjustment to the line item(s) is being calculated. The
resulting adjusted operating budget shall be deemed to be in effect for that
Fiscal Year until such time as Kickapoo and Lakes have resolved the disputed
items.


                                      -22-

<PAGE>

          (c) Lakes shall prepare an annual capital expenditure budget and
submit such budget to Kickapoo for approval by Kickapoo prior to the
Commencement Date. Annual capital expenditure budgets shall be submitted by
Lakes to Kickapoo thereafter by no later than thirty (30) days prior to the
commencement of each succeeding Fiscal Year. The proposed capital expenditure
budgets shall be subject to approval or disapproval within thirty (30) days of
submission to Kickapoo for approval, such approval not to be unreasonably
withheld. Kickapoo may approve or disapprove of any item on such proposed
budget. The parties recognize that mutually agreeable adjustments may be made to
previously approved capital expenditure budgets from time to time during any
budget year, to reflect the impact of unforeseen circumstances, financial
constraints, or other events. Lakes agrees to keep Kickapoo informed and obtain
Kickapoo's approval regarding any projects or expenditures that are reasonably
anticipated to cause a material change to the capital expenditure budget
previously approved by Kickapoo. Lakes shall make capital expenditures in
accordance with such approved capital expenditure budget.

     5.2 Intentionally omitted.

     5.3 Minimum Guaranteed Monthly Payments.

          (a) During the term of this Management Agreement, provided that the
Commencement Date has occurred, the Project shall, subject to the provisions of
Section 5.3(b) below, pay Kickapoo Four Hundred Sixteen Thousand Seven Hundred
Dollars ($416,700) per month (the "Minimum Guaranteed Monthly Payment"),
beginning on the Commencement Date and continuing for the remainder of the term
of the Management Agreement. The Minimum Guaranteed Monthly Payment shall be
payable to Kickapoo in arrears on the twentieth (20th) day of each calendar
month following the month in which the Commencement Date occurs, which payment
shall have priority over the Operating Note, any obligations to repay funding
provided by any third party lender in connection with financing the development,
construction, and equipping of the Project Facilities, and payment of Lakes'
compensation. If the Commencement Date is a date other than the first day of a
calendar month, the first payment will be prorated from the Commencement Date to
the end of the month. The Minimum Guaranteed Monthly Payment shall be prorated
if gaming is conducted at the Gaming Facility for any other partial months.

          (b) Minimum Guaranteed Monthly Payments shall be deducted from any
disbursements of Net Total Revenues received by Kickapoo under Section 5.5
hereof in any given month; provided, however, that if the Net Total Revenues in
a given month are less than $416,700, Lakes shall advance the funds necessary to
compensate for the deficiency from its own funds (the "Minimum Guaranteed
Payment Advances", which advances shall not accrue interest but shall be
evidenced by an Operating Note in a form agreed to by Kickapoo and Lakes), and
provided further that the Minimum Guaranteed Monthly Payments shall be reduced
to $10,000 per month for the remaining months in a Fiscal Year after Kickapoo
has received in such Fiscal Year Total Net Revenue distributions of
$500,000,400. Lakes shall be entitled to recoup any Minimum Guaranteed Payment
Advances made under this subsection from the Net Total Revenues of the Project
in succeeding months during the term hereof, as provided in Section 5.5 hereof
(and any amounts


                                      -23-

<PAGE>

outstanding on account of Minimum Guaranteed Payment Advances at the end of the
term of this Management Agreement shall be immediately due and payable by
Kickapoo). In no event shall this recoupment payment for Minimum Guaranteed
Payment Advances result in Kickapoo receiving less than its Minimum Guaranteed
Monthly Payment in any month, and in no event shall Lakes be allowed or entitled
to interest on any Minimum Guaranteed Payment Advances. Minimum Guaranteed
Monthly Payments shall be prorated with respect to any months (or portions
thereof) that Class II Gaming or Class III Gaming is suspended or terminated at
the Gaming Facility, and no Minimum Guaranteed Monthly Payments shall be
required with respect to any months that no Class II Gaming or Class III Gaming
is conducted at the Gaming Facility or accrue subsequent to termination of this
Management Agreement.

          (c) Any obligations owing by Kickapoo under the Operating Note shall
be repaid solely as a Limited Recourse obligation of Kickapoo without any other
liability or guarantee on the part of Kickapoo. Except for the Minimum
Guaranteed Monthly Payment to Kickapoo, repayment of the Operating Note
obligations shall have first priority on any Net Gaming and Net Ancillary
Revenues generated by the Project. Kickapoo agrees to grant to Lakes a first
priority and perfected security interest, including a Dominion Account
arrangement pursuant to the Dominion Account Agreement (in a form consistent
with the terms of this Management Agreement), on any Net Gaming and Net
Ancillary Revenues of the Project in order to secure repayment of the Operating
Note, and such Operating Note shall also be secured on a first priority and
perfected basis by any Furnishings and Equipment pursuant to the Security
Agreement and by first priority liens in the additional recourse assets
described in the definition of "Limited Recourse."

     5.4 Daily and Monthly Statements. Lakes shall furnish to Kickapoo's
designated representative financial statements identifying for each day the
Gross Gaming Revenues attributable to the Project's Class II and/or Class III
Gaming on each day that such reports are normally available. Within fifteen (15)
days after the end of each calendar month, Lakes shall provide verifiable
financial statements in accordance with GAAP to Kickapoo and the Gaming
Commission covering the preceding month's operations of the Enterprise,
including operating statements, balance sheets, income statements and statements
reflecting the amounts computed to be distributed in accordance with Section 5.5
hereof.

     5.5 Distribution of Net Total Revenues.

          (a) All Net Total Revenues shall be disbursed on a monthly basis as
set forth below, paid on the twentieth day of each calendar month for the
preceding month. Such Net Total Revenues shall be disbursed from the Project
Bank Account(s) to the extent available for payment of the following accounts in
the following order of priority:

          (i)  The Minimum Guaranteed Monthly Payment described in Section 5.3
               hereof;

          (ii) All outstanding Minimum Guaranteed Payment Advances and Working
               Capital Advances (and accrued interest thereon) or


                                      -24-

<PAGE>

               any other amounts owing to Lakes under the Operating Note;

          (iii) Current principal, interest and any other payments due on any
               obligations to repay funding provided by any third party lender
               in connection with financing the development, construction, and
               equipping of the Project Facilities,

          (iv) Management compensation due Lakes under Section 5.5(b) below;
               provide that if the distribution under this subsection in any
               month is insufficient to fund such payment in full, the unpaid
               amount shall be deferred and paid under subsection (vi) below;

          (v)  Any amounts deferred (including interest on any deferred
               management compensation which interest shall accrue, from the
               date the management compensation is deferred, at the greater of
               the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or
               any successor bank) plus two percent (2%) or the same rate for
               the financing provided by any third party lender for the
               development, construction and equipping of the Project
               Facilities) under subsections (ii), (iii), (and (iv) above;

          (vi) Any monthly capital replacement or other reserve contributions
               which have been created with the written approval of the Lakes
               and Kickapoo;

          (vii) Any indemnification or other obligations then owing by Kickapoo
               to Lakes under any Transaction Document and not paid as Costs of
               Gaming Operations or Costs of Ancillary Operations (provided
               Lakes has provided written notice to Kickapoo that above amounts
               are owed under the Transaction Documents, and Kickapoo has not
               disputed the same or such amounts have been determined to be
               owing through an arbitration proceeding under Article 10 hereof);
               and

          (viii) All remaining Net Total Revenues shall be disbursed to Kickapoo
               at the same time the management compensation is paid to Lakes,
               subject to the rights of the Lakes under the Dominion Account
               Agreement upon the occurrence of a Material Breach by Kickapoo or
               pursuant to the terms of the Operating Note.

          (b) As compensation for Lakes' management services hereunder, once Net
Total Revenues from the Project exceed Twelve Million Dollars ($12,000,000) for
each twelve (12) month period following the Commencement Date, Lakes shall
receive thirty percent (30%) of Net Total Revenues for the prior calendar month
less any amounts due to a Lakes' Affiliate for any consulting fees earned that
month in connection with the Project Facilities under any contract


                                      -25-

<PAGE>

between Kickapoo and the Lakes Affiliate still in effect at that time, for so
long as this Management Agreement shall remain in effect during the term hereof
and as provided for in this Management Agreement. Any amounts owing to Lakes
hereunder shall be Limited Recourse obligations of Kickapoo and shall be subject
to the security provisions described in Section 5.3(c) hereof, including the
Dominion Account Agreement and Security Agreement.

          (c) Lakes, on behalf of the Project, is responsible for making the Net
Total Revenues disbursements to the appropriate party.

     5.6 Annual Audit. With respect to each Fiscal Year, Kickapoo shall cause an
audit to be conducted by an independent certified public accountant from a Big
Five accounting firm with more than five (5) years experience in audits of
gaming resort operations selected and approved by Kickapoo, and on or before one
hundred twenty (120) days after the end of such year, such accounting firm shall
issue a report with financial statements in accordance with GAAP with respect to
the preceding Fiscal Year (or portion of the year in the case of the first year)
operations of the Project, including operating statements, balance sheets,
income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof, such report to be approved at
an annual meeting to be held at a location mutually agreed upon by the parties.
In addition, upon termination of this Management Agreement in accordance with
its terms, such accounting firm shall conduct an audit, and on or before ninety
(90) days after the termination date, shall issue a report setting forth the
same information as is required in the annual report, in each case with respect
to the portion of the Fiscal Year ending on the termination date. If the Net
Total Revenues or other amounts paid to Kickapoo or Lakes in accordance with
Section 5.5 above for the relevant period are different from the amount which
should have been paid to such party based on the report prepared by the
accounting firm and based upon the provisions of this Management Agreement, then
to the extent either party received an overpayment, it shall repay and deposit
the amount of such overpayment into the bank account referenced in Section 2.8
(a) hereof within twenty-five (25) days of the receipt by such party of the
accountant's report, and to the extent either party received an underpayment, it
shall receive a distribution from the bank account referenced in Section 2.8 (a)
hereof of the amount of such underpayment within ten (10) days of the receipt by
such party of the accountant's report. Lakes may make adjustment to future
payments to correct a discrepancy if required distributions are not made.

     5.7 Advances for Working Capital. Where amounts in bank accounts
established pursuant to Section 2.8 hereof are insufficient to meet Costs of
Gaming Operation or Costs of Ancillary Operation, during the first six (6)
months after the Commencement Date, Lakes shall advance monies to the Project
sufficient to meet Costs of Gaming Operations and Costs of Ancillary Operations.
Thereafter, Kickapoo shall advance such monies to the Project sufficient to meet
Costs of Gaming Operations and Costs of Ancillary Operations. If Lakes makes any
advances hereunder ("Working Capital Advances", which advances shall be
evidenced by an Operating Note substantially in a form to be agreed to by
Kickapoo and Lakes and shall accrue interest, from the date the advances are
made, at the greater of the prime interest rate of Chase Manhattan Bank U.S.A.,
N.A. (or any successor bank) plus two percent (2%) or the same rate for the
financing provided by any third party lender for the development, construction
and equipping of the Project


                                      -26-

<PAGE>

Facilities), Lakes shall be repaid as provided in Section 5.5 hereof (and any
amounts outstanding on account of Working Capital Advances at the end of the
term of this Management Agreement shall be immediately due and payable by
Kickapoo). Any Working Capital Advances shall be Limited Recourse obligations of
Kickapoo and shall be subject to the security provisions described in Section
5.3(c) hereof, including the Dominion Account Agreement and Security Agreement.
Any advances made by Kickapoo hereunder shall accrue interest at the same rate
as applies to Working Capital Advances made by Lakes.

     5.8 Development and Construction Cost Repayment. The maximum dollar amount
for repayment of development and construction costs for the Project Facilities
shall be zero dollars ($0). Subject to any applicable Legal Requirements, the
parties may increase the maximum repayment amount by mutual written agreement.

                                    ARTICLE 6
                           TERMINATION/MATERIAL BREACH

     6.1 Termination for Cause. Subject to the provisions of Section 8.2, either
party may terminate this Management Agreement if the other party commits or
allows to be committed a Material Breach (as hereinafter defined) of this
Management Agreement and fails to cure such breach within thirty (30) calendar
days after receipt of a written notice from the non-breaching party identifying
the nature of the Material Breach in specific detail and its intention to
terminate this Management Agreement; provided, however, that if the nature of
such breach (but specifically excluding breaches curable by the payment of
money) is such that it is not possible to cure such breach within thirty (30)
days, such thirty-day period shall be extended for so long as the breaching
party shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days, and provided further that Lakes shall not be
entitled to an extension of such thirty-day cure period in the event of theft,
embezzlement or willful misconduct with respect to the handling of money or
other property. Termination is not an exclusive remedy for claims of a Material
Breach, and the parties shall be entitled to other rights and remedies as may be
available pursuant to the terms hereof or under applicable law. For purposes of
this Management Agreement, a "Material Breach" is any of the following
circumstances: (i) failure of Lakes to provide Kickapoo with the monthly Minimum
Guaranteed Monthly Payments pursuant to Section 5.3 hereof, unless suspended
pursuant to the terms of Sections 5.3(b) or 6.4(a) hereof, (ii) material failure
of either party to perform a material obligation hereunder, or any document or
agreement related hereto for reasons not excused under Section 9.6 hereof (Force
Majeure), (iii) if any of Lakes' employees commits theft, embezzlement or crime
of moral turpitude and if, after knowledge of such act or, if disputed, after
determination by arbitration under Article 10, Lakes does not remove such
employee from connection with Class II and/or Class III Gaming operations of the
Project, (iv) default under this Management Agreement or the Operating Note, or
any document or agreement related hereto or thereto, and any default by the
Kickapoo Tribe under that certain Tribal Agreement dated January 19, 2005
executed by such parties in favor of Lakes; or (v) any representation or
warranty made pursuant to Section 9.11 or 9.12 hereof proves to be knowingly
false or erroneous in any material


                                      -27-

<PAGE>

way when made or shall fail to be true and correct in all material respect at
any time during the term of this Management Agreement. Any final notice of
termination hereunder shall be in writing detailing the reason the party
considers the Material Breach not to be cured and must be delivered to the other
party before such termination becomes effective.

     6.2 Mutual Consent. This Management Agreement may be terminated at any time
upon the mutual written consent and approval of the parties.

     6.3 Involuntary Termination Due to Changes in Law or Tribal-State Compact.
The parties hereby agree to use their best efforts to conduct Class II and/or
Class III Gaming activities in accordance with this Management Agreement and to
ensure that such activities and this Management Agreement conform to and comply
with all applicable laws and a Tribal-State Compact. Kickapoo agrees that,
except as may be required by federal law, neither Kickapoo nor the Kickapoo
Tribe will enact or pass any new ordinances subsequent to the execution of this
Management Agreement that would materially impair the rights of Lakes under this
Management Agreement. Kickapoo covenants and affirmatively states that neither
Kickapoo or the Kickapoo Tribe has or will impose any tax, fee or assessment on
Lakes, the Project or its Project Facilities, this Management Agreement, the
Operating Note and any related security documents and instruments described
herein other than the fees and assessments described in "Costs of Gaming
Operation." In the event of any change in state or federal laws that results in
a final determination by the Secretary, the National Indian Gaming Commission,
or a court of competent jurisdiction that this Management Agreement is unlawful,
Kickapoo and Lakes shall use their respective good faith best efforts to amend
this Management Agreement in a mutually satisfactory manner which will comply
with the change in applicable laws and not materially change the rights, duties
and obligations of the parties hereunder. In the event such amendment can not be
legally effected following exhaustion of all such good faith best efforts
(including the lapse of all legal proceedings and appeal periods without
favorable results) performance of this Management Agreement shall be
automatically suspended effective upon the date that performance of this
Management Agreement becomes unlawful by such final determination, and either
party shall have the right to terminate such suspended Management Agreement
(except the Notes and Security Provisions, as defined in Section 6.4 (b)) upon
written notice to the other party.

     6.4 Other Rights upon Material Breach; Ownership of Assets and Repayment of
Obligations on Termination.

          (a) Upon the occurrence of any Material Breach or upon the occurrence
of any event or circumstance which with the giving of notice or the passage of
time or both would constitute a Material Breach, Lakes may suspend its
obligation to make any Minimum Guaranteed Payment Advances, until such time as
the default has been cured. Upon the occurrence of any Material Breach, Lakes
may suspend its obligation to make any Working Capital Advances until such time
as the Material Breach has been cured.

          (b) Upon termination, except in connection with Lakes' security
interests in the Net Total Revenues of the Project pursuant to Kickapoo's
Limited Recourse obligations under the


                                      -28-

<PAGE>

Transaction Documents (if not yet satisfied), or any other security interests or
liens in any Furnishings and Equipment and other collateral described in the
Transaction Documents, Kickapoo will retain full ownership of the Project
Facilities, Plans and Specifications therefor, and the Project and its assets;
and Lakes will have no rights to the Project and its assets or the Project
Facilities (or any equipment, books and records, materials or furnishings
therein that were purchased with Costs of Gaming Operations or Costs of
Ancillary Operations) except as to the security interests and liens recited
above or as may be established otherwise by a proceeding pursuant to Article 10
hereof. In the event of any termination (whether voluntary or involuntary),
Kickapoo shall continue to have the obligation to pay unpaid principal and
interest and other amounts due under this Management Agreement, the Operating
Note or any Transaction Document executed in connection herewith, together with
any unpaid compensation owed to Lakes under Section 5.5(b) hereof (if not yet
satisfied), each of which shall become due and payable on such termination date.
Any and all obligations and provisions contained in this Management Agreement
concerning indemnity obligations or repayment of the Operating Note, and the
security therefore, including the Security Agreement and Dominion Account
Agreement, together with any unpaid compensation owed to Lakes under Section
5.5(b) hereof and any other amounts owing to Lakes under this Management
Agreement or any other Transaction Documents and the terms and provisions set
forth in Articles 9 and 10 hereof excluding Sections 9.21 and 9.22
(collectively, the "Notes and Security Provisions"), shall survive termination
of this Management Agreement. In the event of termination for any reason, and
subject to its rights under the dispute resolution provisions under Article 10
herein, Lakes shall cooperate with Kickapoo in the orderly transition of
management of the Project, and shall provide Kickapoo or its designee with any
and all books, records, documents, contracts, and all other information relating
to the Project Facilities or the Project, whether such information shall be in
electronic, hard copy or any other form. If at the time of termination
Kickapoo's obligations under the Transaction Documents remain unsatisfied in
full, then Kickapoo may either pay the obligations in full, or to the extent
economically feasible (as hereinafter defined), Kickapoo agrees to continue to
operate and maintain the Project Facilities in accordance with reasonable
industry standards, and as to any portions of the Project Facilities that are no
longer economically feasible to operate, Kickapoo and the Lakes shall conduct an
orderly liquidation of such assets and any liquidation proceeds (net of
reasonable sale costs) shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided however that such liquidation proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise; and Kickapoo shall keep the Project Facilities and all related assets
insured for the coverages and amounts required by this Management Agreement and
name Lakes as an additional insured, loss payee and mortgagee, as applicable and
provide evidence thereof upon request until all amounts owing to Lakes have been
paid in full, and if any portion of the Project assets are damaged by any
casualty and it is economically feasible for Kickapoo to continue to operate
such damaged assets, then Kickapoo shall repair and reconstruct such operations
that were damaged and are to be continued, and any excess insurance proceeds
that are not used to repair and reconstruct the applicable damaged Project
assets shall be deposited into the Dominion Account and disbursed in accordance
with the same terms and provisions applicable to Gross Total Revenues, provided
however that such excess proceeds shall be excluded from Net Total Revenues for
purposes of calculating the management compensation of any Replacement


                                      -29-

<PAGE>

whether under Section 5.5(b) hereof or otherwise. As used herein and in Section
6.6(d) hereof, the term "economically feasible" shall mean that the gross
revenues derived from any applicable operations is in excess of that needed to
pay the Costs of Gaming Operations or Costs of Ancillary Operations, as
applicable to the operations in question.

          (c) Subject to the provisions of Section 6.1, in the event of
termination of this Management Agreement for any reason prior to the full
repayment to Lakes of any amounts owed to it by Kickapoo under the Transaction
Documents, including without limitation, the Operating Note, Kickapoo shall, as
promptly as reasonably possible, appoint a person or entity qualified to manage
the Project Facilities and operate the Project (the "Replacement") and use its
best efforts to obtain approvals of all required Governmental Authorities for
such Replacement, provided the obligation to continue to operate under Section
6.4(b) exists. Kickapoo agrees to keep full and accurate financial records of
operations of the Project by such Replacement and to allow Lakes to audit such
records at reasonable times prior to full repayment to Lakes of any amounts owed
to it by Kickapoo under the Transaction Documents, including without limitation,
the Operating Note, and that Kickapoo's compliance with this paragraph shall not
preclude the Lakes from exercising any of its other rights and remedies
hereunder or any document or agreement related hereto, including, without
limitation, rights under the Operating Note and the Dominion Account Agreement.

     6.5 Notice of Termination. In the event of a proposed termination pursuant
to this Article, Kickapoo shall provide notice of the termination to the NIGC or
other appropriate Governmental Authorities within ten (10) days after the
termination.

     6.6 Cessation of either Class II and/or Class III Gaming at the Gaming
Facility.

          (a) If, during the term of this Management Agreement, either Class II
or Class III Gaming (once permitted at the Gaming Facility under IGRA) cannot be
lawfully conducted at the Gaming Facility by reason of the application of any
legislation or court or administrative agency order or decree adopted or issued
by a governmental entity having the authority to do so, Lakes shall, within
sixty (60) days after such legislation, order or decree becomes effective, elect
to:

               (i) retain Lakes' interest in this Management Agreement and
          suspend both Class II and Class III Gaming operations until such date
          on which either Class II and/or Class III Gaming at the Gaming
          Facility becomes lawful again (during which period the term of the
          Management Agreement will be tolled until either Class II and/or Class
          III Gaming at the Gaming Facility becomes lawful again and can be
          recommenced operationally or the parties mutually agreed otherwise,
          and the period of cessation shall not be deemed to have been part of
          the term of the Management Agreement and the term shall be extended by
          the length of time of the cessation); or

               (ii) retain Lakes' interest in this Management Agreement, suspend
          Class II and Class III gaming operations until such date on which
          either Class II and/or Class III Gaming at the Gaming Facility becomes
          lawful again (during which period


                                      -30-

<PAGE>

          the term of the Management Agreement will be tolled until Class II
          and/or Class III Gaming at the Gaming Facility becomes lawful again
          and can be recommenced operationally at the Gaming Facility or the
          parties mutually agreed otherwise, and the period of cessation shall
          not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and with the prior approval of Kickapoo, which approval
          shall not be unreasonably withheld, use the Gaming Facility for any
          other lawful purpose pursuant to a use agreement containing terms
          reasonably acceptable to Lakes and Kickapoo; or

               (iii) terminate both Class II and Class III Gaming operations and
          terminate this Management Agreement.

          Lakes shall give Kickapoo written notice of Lakes' election within
     such sixty-day period.

          (b) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6 (a)(i) or (ii) above, Lakes shall have the right
(but not the obligation) to commence either Class II or Class III Gaming
operations within sixty (60) days after the date on which both Class II and
Class III Gaming becomes lawful. Lakes may exercise such right by giving
Kickapoo written notice of such exercise within thirty (30) days after the date
on which both Class II and Class III Gaming becomes lawful. Any reasonable
payment to any third party made during the period during which either Class II
or Class III Gaming is unlawful to preserve or eliminate any leasehold or
purchase contract rights of the Gaming Facility shall be paid by Lakes from
Project funds after mutual approval of Kickapoo and Lakes as Costs of Gaming
Operation or Cost of Ancillary Operations, as applicable, and reimbursed after
both Class II and Class III Gaming is recommenced.

          (c) If, during the term of this Management Agreement, the Gaming
Facility is damaged by casualty or other occurrence to the extent, as reasonably
determined by Lakes, that either Class II or Class III Gaming cannot be
conducted at the Gaming Facility, Lakes shall elect to:

               (i) retain Lakes' interest in this Management Agreement pending
          repair or reconstruction of the Gaming Facility, suspend all gaming
          operations pending the repair or reconstruction of the Gaming Facility
          (during which period the term of the Management Agreement will be
          tolled until Class II and/or Class III Gaming at the Gaming Facility
          becomes lawful again and can be recommenced operationally at the
          Gaming Facility or the parties mutually agreed otherwise, and the
          period of cessation shall not be deemed to have been part of the term
          of the Management Agreement and the term shall be extended by the
          length of time of the cessation), and arrange for such repair or
          reconstruction in the manner described in this Section 6.6; or

               (ii) terminate this Management Agreement, such termination to be
          effective on the sixtieth (60th) day after written notice of
          termination shall have been


                                      -31-

<PAGE>

          delivered to Kickapoo.

          Lakes shall give Kickapoo written notice of Lakes' election under
subsection within sixty (60) days after such casualty or occurrence.

          (d) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6(c)(i) above, Kickapoo shall be obligated to make
such repairs or reconstruction as the Lakes shall reasonably determine should be
made to the Project Facilities (to the extent that insurance proceeds are
available or as otherwise mutually agreed by Kickapoo and Lakes), and Lakes
shall promptly verify the amount of insurance proceeds available to pay the cost
of repair or reconstruction. If the Lakes elects to retain its interests under
Section 6.6(c)(i) above, Lakes is hereby granted the authority to submit, adjust
and settle, on behalf of Kickapoo, all insurance claims associated with the
casualty or occurrence; provided, however, that Lakes shall obtain Kickapoo's
prior written consent (which consent shall not be unreasonably withheld) to any
settlement. Lakes shall provide copies of all settlement documents to Kickapoo.
If the Lakes does not elect to retain its interest under Section 6.6(c)(i) above
and if Kickapoo's obligations under the Transaction Documents are not yet
satisfied, then: (a) Kickapoo shall have the authority to submit, adjust and
settle all insurance claims provided that any final settlement shall be with the
prior written consent of Lakes which will not be unreasonably withheld, and
Kickapoo shall provide copies of all settlement documents to the Lakes; (b) to
the extent economically feasible (as defined in Section 6.4(b), Kickapoo shall
have the obligation to continue to operate and maintain the Project Facilities
and Project in accordance with reasonable industry standards, and as to any
portions of the Project Facilities and the Project that are no longer
economically feasible to operate, Kickapoo and the Lakes shall conduct an
orderly liquidation of such assets and any liquidation proceeds (net of
reasonable sale costs) shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided however that such liquidation proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise; (c) Kickapoo shall repair and reconstruct such operations that were
damaged and are to be continued; and (d) any excess insurance proceeds that are
not used to repair and reconstruct the applicable damaged Project assets shall
be deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such excess proceeds shall be excluded from Net Total Revenues for purposes of
calculating the management compensation of any Replacement whether under Section
5.5(b) hereof or otherwise.

          (e) If Lakes elects to terminate this Management Agreement under this
Section 6.6, the provisions of Section 6.4 above shall apply.

     6.7 Renewal Option.

          The parties by mutual agreement may decide to renew or extend the
Management Agreement of this Management Agreement. Any such renewal or extension
shall only become effective upon approval by the NIGC and appropriate licensing
by the Gaming Commission.


                                      -32-

<PAGE>

     6.8 Buyout Option.

          Following forty-eight (48) months of continuous operation of the
Project's gaming operations by Lakes, Kickapoo shall have the option to buy out
the Lakes' remaining rights under this Management Agreement for an amount equal
to the present value, using a discount rate which is the greater of (i) two
percent (2%) above the prime interest rate of Chase Manhattan Bank U.S.A., N.A.
(or any successor bank) or (ii) or the same rate for the financing provided by
any third party lender for the development, construction and equipping of the
Project Facilities of the Remaining Management Fees (as hereinafter defined).
The term "Remaining Management Fees" shall mean the total monthly compensation
which would have been payable to Lakes under Section 5.5(b) hereof for the
balance of the term of this Agreement, assuming that such monthly compensation
would be the average of the compensation paid to Lakes during the most recent
operating twelve months prior to such buy out.

     6.9 Cumulative Remedies.

          All rights or remedies of either Kickapoo or Lakes under this
Management Agreement or any other Transaction Documents shall be cumulative and
may be exercised singularly in any order or concurrently, at such party's
respective option, and the exerciser or enforcement of any such right or remedy
shall neither be a condition to nor bar to the exercise or enforcement of any
other right or remedy.

                                    ARTICLE 7
                              RELEASE AND INDEMNITY

     7.1 Third-Party Claims. Except for claims resulting from the other party's
own gross negligence or willful or criminal misconduct, neither party shall be
entitled to recover from, and expressly releases, the other party, its agents,
directors, officers and employees, from or for any third-party damages, claims,
causes of action, losses and/or expenses of whatever kind or nature, including
attorneys' fees and expenses incurred in defending such claims in connection
with the lawful operation of the Project Facilities and Project in accordance
with the terms of this Management Agreement; and such claims, damages, losses or
expenses shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending on the circumstances and nature of the claim,
payable from the bank accounts established pursuant to Section 2.8(a) hereof.

     7.2 Indemnity from Lakes. Notwithstanding Section 7.1, Lakes shall
indemnify and hold Kickapoo, its agents, directors, officers and employees,
harmless against any and all damages, claims, losses or expenses of whatever
kind or nature, including reasonable attorneys' fees and expenses incurred in
defending such claims, resulting from the gross negligence or willful or
criminal misconduct of Lakes, its officers and directors in connection with
Lakes' performance of this Management Agreement, and no such damages, losses or
expenses shall be paid from the bank accounts established pursuant to Section
2.8 (a) hereof, nor shall such losses or expenses be considered Costs of Gaming
Operations or Costs of Ancillary Operations.


                                      -33-

<PAGE>

     7.3 Indemnity from Kickapoo. Notwithstanding Section 7.1, Kickapoo shall
upon request indemnify and hold Lakes, its agents, directors, officers and
employees, harmless against any and all damages, claims, losses or expenses of
whatever kind or nature, including reasonable attorneys' fees and expenses
incurred in defending such claims, resulting from the gross negligence or
willful or criminal misconduct of Kickapoo, its officers, directors, or tribal
government employees, in connection with the Kickapoo's performance of this
Management Agreement, and no such damages, losses or expenses shall be
considered Costs of Gaming Operations or Costs of Ancillary Operations.

     7.4 Indemnity Against Unauthorized Debt and Liabilities. The parties
expressly agree that neither this Management Agreement nor its performance
creates or implies a partnership between the parties or authorizes either party
to act as agent for the other except to the extent expressly provided herein.
Lakes hereby agrees to indemnify and hold Kickapoo harmless from any third-party
claims, actions and liabilities, including reasonable attorneys' fees on account
of obligations or debts of Lakes that Lakes is not authorized to undertake as
agent for Kickapoo pursuant to the terms of this Management Agreement. Kickapoo
likewise agrees to indemnify and hold Lakes harmless from any third-party
claims, actions and liabilities on account of any of the separate obligations or
debts of Kickapoo or the Kickapoo Tribe that are not authorized Costs of Gaming
Operations or Costs of Ancillary Operations pursuant to this Management
Agreement.

     7.5 Indemnity Agreement. In connection with any indemnity obligations
hereunder, the parties agree they will comply with the terms and conditions set
forth in the Indemnity Agreement in a form agreed to by Kickapoo and Lakes.

                                    ARTICLE 8
                               PARTIES IN INTEREST

     8.1 Payment of Fees and Submission of Information for Background
Investigations.

     Upon execution of this Management Agreement, Lakes shall pay the fees
required by federal and tribal regulations for background investigations for the
"Parties in Interest" as defined herein, and it shall submit the information
required by this Section in duplicate to the National Indian Gaming Commission
and the Gaming Commission and update such information at any time that changes
occur in prior submissions so as to allow complete background investigations. In
no event shall the cost of background investigations under this Section relating
to Gaming Commission regulations exceed $10,000 per individual without the
mutual consent of the parties, which consent shall not be unreasonably be
withheld.

          (a) As used in this Section 8.1, the term, "Parties in Interest"
includes any person or entity with a financial interest in, or having management
responsibility for, this Management Agreement or for which background
investigations are required by 25 C.F.R. Part 537, and any amendments thereto.


                                      -34-

<PAGE>

          (b) Lakes shall require sufficient information and identification from
each "Party in Interest" to perform a background investigation for the purpose
of determining the suitability of such persons for employment in a Class II
and/or Class III Gaming operation, including, at a minimum, the information
required by the National Indian Gaming Commission as set forth in 25 C.F.R. Part
537.

          (c) Without limiting the foregoing, Lakes shall obtain a current set
of fingerprints on each person for whom background investigations are required
by the Gaming Commission and the National Indian Gaming Commission, using forms
supplied by the National Indian Gaming Commission and/or the Gaming Commission,
which shall be referred to the Federal Bureau of Investigation (FBI) Fingerprint
Identification Division or other law enforcement agency designated by the Gaming
Commission.

          (d) The parties hereby agree that a listing of all "Parties in
Interest" as defined in Section 8.1 (a) above shall be submitted to the NIGC.
All such "Parties in Interest", as such listing shall be supplemented from time
to time, shall be required to furnish the information required by this Section
8.1 prior to obtaining such interest. All necessary Governmental Authorities
must approve any change in the "Parties in Interest". Any change of a person
listed as a one of the "Parties in Interest" shall not constitute a change in
persons with a financial interest in or management responsibility for a
management contract.

     8.2 Removal; Divestiture. Should the Gaming Commission or the National
Indian Gaming Commission, by agency action, find that any individual with a
"direct or indirect financial interest" in this Management Agreement (as defined
in 25 C.F.R. Section 502.17, and any amendments thereto) whose prior activities,
criminal record, if any, or reputation, habits, and associations pose a threat
to the public interest, or the tribal interest, or the effective regulation of
gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices and methods and activities in the conduct of gaming or the carrying on
of related business and financial arrangements, or should such agency revoke the
license of such person, and should either agency notify Lakes or Kickapoo of
such finding or revocation, then Lakes shall require such individual to divest
his or her interest in this Management Agreement and shall immediately remove
such person from all association with gaming operations under this Management
Agreement upon receipt of such notice, provided that any individual subject to
such removal/divesture shall be permitted to be revested and able to associate
with gaming operations in the event the agency action is reversed upon agency
administrative or judicial appeal. In addition, if any individual with "direct
or indirect financial interest" in this Management Agreement (as defined in 25
C.F.R. Section 502.17, and any amendments thereto): (a) has been or is
subsequently convicted of a felony relating to gaming, (b) knowingly or
willfully provided materially false statements to Kickapoo, the Gaming
Commission or the National Indian Gaming Commission, or refused to respond to
questions from either of such agencies, or (c) attempts to unduly interfere or
unduly influence for his or her gain or advantage any decision or process of
tribal government relating to Class II and/or Class III Gaming and if Lakes
becomes aware of such conflicts or prohibited actions, then Lakes shall notify
Kickapoo of such event and shall immediately take all necessary steps to cause
such individual to divest his or her interest in


                                      -35-

<PAGE>

Lakes. Any disputed Gaming Commission action potentially involving
removal/divestiture of Lakes is subject to the provisions of Article 10 and
other applicable law or regulations.

                                    ARTICLE 9
                                  MISCELLANEOUS

     9.1 Assignment and Subcontractors. The rights and obligations under this
Management Agreement shall not be assigned or subcontracted by any party without
the prior written consent of the other party and without first obtaining prior
approval by the National Indian Gaming Commission or the BIA, if applicable, and
any other necessary regulatory approvals. However, Kickapoo reserves the right
to assign its rights and obligations under this Management Agreement to a
tribally chartered entity that it wholly owns and controls, and the Lakes
reserves the right to assign its rights and obligations under this Management
Agreement to a wholly owned subsidiary provided that the original Lakes
hereunder, or an affiliated entity reasonably satisfactory to Kickapoo, remains
obligated hereunder by means of a guaranty or other accommodation reasonably
satisfactory to Kickapoo, and further provided that Lakes shall have received
prior approval from the National Indian Gaming Commission and any other
necessary regulatory approvals. Any assigning party engaging in a permitted
assignment described above shall and shall cause its assignee to execute and
deliver to the other party such assignment and assumption agreements together
with evidence of the due authorization, execution, delivery and enforceability
of such assignment documents as may be reasonably requested. Other than as
expressly provided herein or in Section 9.2 below, any attempted assignment or
subcontracting without such consent and approval shall be void. Approval of any
assignment or subcontract to any new party must be preceded by a complete
background investigation of the new party as required by Section 8.1. Subject to
the preceding requirements, this Management Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors and
assigns.

     9.2 Change of Control in Ownership Interest. Any Change of Control (as
defined herein) in Lakes shall require prior written consent of Kickapoo and be
subject to Legal Requirements, or this Management Agreement shall be terminated.
For purposes of this Management Agreement, a "Change of Control" means the
acquisition by any person or affiliated group of persons not presently members
of Lakes of beneficial ownership of 51% or more of membership interest in Lakes.

     9.3 Notices. Any notice, consent or any other communication permitted or
required by this Management Agreement shall be in writing and shall be effective
on the date sent and shall be delivered by personal service, via telecopier with
reasonable evidence of transmission, express delivery or by certified or
registered mail, postage prepaid, return receipt requested, and, until written
notice of a new address or addresses is given, shall be addressed as follows:

     If to Kickapoo:    KTTT ENTERPRISES
                        HCR 1, Box 9700
                        Eagle Pass, Texas 78852


                                      -36-

<PAGE>

                        Attention: Juan Garza, Jr., Chairman

     With a copy to:    KICKAPOO TRADITIONAL TRIBE OF TEXAS
                        HCR 1, Box 9700
                        Eagle Pass, Texas 78852
                        Attention: Roy Bernal, Tribal Administrator

          and           TRIBAL ATTORNEY
                        HCR 1, Box 9700
                        Eagle Pass, Texas 78852
                        Attention: Gloria E. Hernandez

     If to the Lakes:   Lakes Kickapoo Management, LLC
                        130 Cheshire Lane
                        Minnetonka, MN 55305
                        Attention: Timothy J. Cope

     With a copy to:    Kevin C. Quigley, Esq.
                        Johnson Hamilton Quigley Twait & Foley PLC
                        W1450 First National Bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

          and           Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140

     Copies of any notices shall be given to the Gaming Commission.

     9.4 Amendments. This Management Agreement may be amended only by written
instrument duly executed by all of the parties hereto and with any and all
necessary regulatory approvals previously obtained.

     9.5 Counterparts. This Management Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one and the same agreement.

     9.6 Force Majeure. No party shall be in default in performance due
hereunder if such failure or performance is due to causes beyond its reasonable
control, including acts of God, war, terrorism, fires, floods, or accidents
causing damage to or destruction of the Project Facilities or property necessary
to operate the Project Facilities, or any other causes, contingencies, or
circumstances not subject to its reasonable control which prevent or hinder
performance of this


                                      -37-

<PAGE>

Management Agreement; provided, however, that the foregoing shall not excuse any
obligations of Kickapoo or Kickapoo Tribe to make monetary payments to the Lakes
as and when required hereunder or in any related document or agreement.

     9.7 Time is Material. The parties agree that time is of the essence and the
time and schedule requirements set forth in this Management Agreement are
material terms of this Management Agreement.

     9.8 Further Assurances. The parties hereto agree to do all acts and deliver
necessary documents as shall from time to time be reasonably required to carry
out the terms and provisions of this Management Agreement.

     9.9 Severability. In the event that any provision of this Management
Agreement is, by final order of a court of competent jurisdiction or Government
Authority, held to be illegal or void, the validity of the remaining portions of
the Management Agreement shall be enforced as if the Management Agreement did
not contain such illegal or void clauses or provisions, and the parties shall
use their best efforts to negotiate an amendment to this Management Agreement
which will comply with the judicial order and maintain the originally
contemplated rights, duties and obligations of the parties hereunder.

     9.10 Sovereign Immunity. Except for the Resolution of Limited Waiver
attached hereto as EXHIBIT B and incorporated herein by reference, nothing in
this Management Agreement shall be deemed or construed to constitute a waiver of
sovereign immunity of Kickapoo and the only applicable waivers of sovereign
immunity shall be those expressly provided and executed by the Kickapoo's duly
authorized representative and substantially conforming to the form as approved
by the parties. The parties agree that they will not amend or alter the
Resolution of Limited Waiver which will in any way lessen the rights of any
party as set forth in the Resolution of Limited Waiver, including without
limitation the covenant therein of Kickapoo to preserve its effective terms in
the event of future changes in its legal status or governance. This Section 9.10
shall survive termination of this Management Agreement, regardless of the reason
for the termination.

     9.11 Representations and Warranties of Lakes. The Lakes hereby represents
and warrants as follows:

          (a) This Management Agreement and all other agreements contemplated
     hereby have been duly authorized, executed and delivered by Lakes and, when
     approved by necessary Governmental Authorities as set forth (where
     applicable), will constitute a valid and binding obligation, enforceable
     against Lakes in accordance with its terms.

          (b) The execution and delivery of this Management Agreement and all
     other agreements contemplated hereby, the performance by Lakes of its
     obligations hereunder or thereunder and the consummation by Lakes of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Lakes or any of its affiliated companies is a party or any law,
     regulation, rule or ordinance or any order, judgment or decree of any
     federal,


                                      -38-

<PAGE>

     state, tribal or local court or require any regulatory approval beyond
     those contemplated herein.

          (c) Lakes has the full legal right, power and authority and has taken
     all action necessary to enter into this Management Agreement, to perform
     its obligations hereunder, and to consummate all other transactions
     contemplated by this Management Agreement.

     9.12 Representations and Warranties of Kickapoo. Kickapoo hereby represents
and warrants as follows:

          (a) Kickapoo is a wholly-owned subsidiary of and governmental
     instrument of the Kickapoo Tribe, a duly organized and recognized Indian
     tribe under the laws of Kickapoo Tribe and the United States; and Kickapoo
     has been established to own and operate the Project Facilities.

          (b) Kickapoo has full legal right, power and authority under the laws
     for the Kickapoo Tribe and has taken all official action necessary (i) to
     enter into this Management Agreement and authorize Kickapoo to execute and
     deliver this Management Agreement, the Operating Note, Dominion Account
     Agreement, Security Agreement, Indemnity Agreement and any and all other
     documents and agreements related thereto or contemplated thereby
     (collectively, the "Transaction Documents"), (ii) to perform its
     obligations hereunder and thereunder, and (iii) to consummate all other
     transactions contemplated by this Management Agreement and the other
     Transaction Documents.

          (c) This Management Agreement, the Operating Note, and the other
     Transaction Documents, when executed and delivered by Kickapoo and approved
     by necessary Governmental Authorities, will constitute a valid, binding and
     perfected obligations, enforceable against Kickapoo in accordance with
     their terms.

          (d) The execution and delivery of this Management Agreement, the
     Operating Note, and the other Transaction Documents, the performance by
     Kickapoo of its obligations hereunder and the consummation by Kickapoo of
     the transactions contemplated hereby will not violate any contract or
     agreement to which Kickapoo or the Kickapoo Tribe is a party, law,
     regulation, rule or ordinance or any order judgment or decree of any
     federal, state, tribal or local court, or require any approval by
     Governmental Authorities beyond those contemplated herein.

          (e) Neither Lakes, the Project, the Project Facilities nor the
     transaction(s) between the parties contemplated by this Management
     Agreement, the Operating Note, and any related security documents and
     instruments described herein are now, or at any time during the term of
     this Management Agreement will be, subject to any tribal tax of any sort
     other than (i) reasonable pass-through taxes on Project patrons which are
     consistent with gaming resort industry practices, and (ii) the fees and
     assessments described in the definition of "Costs of Operations."


                                      -39-

<PAGE>

          (f) The Kickapoo Tribe is legally permitted to conduct Class II Gaming
     (and Class III Gaming in the event of a Compact) activities in the State
     under all Legal Requirements, and the Gaming Facility Site for the Project
     constitutes "Indian lands" upon which the Kickapoo Tribe may legally
     conduct gaming under IGRA.

          (g) Neither Kickapoo nor the Kickapoo Tribe or any of their Affiliates
     has enacted any law, ordinance, rule or regulation impairing the rights or
     obligations of Kickapoo or Lakes under this Management Agreement or under
     any Transaction Documents contemplated hereby.

          (h) Prior to the Commencement Date, and except as permitted by Section
     2.23 hereof, Kickapoo will not cause or voluntarily permit any lien or
     encumbrance to be created on the Project Facilities or the Project's Gaming
     Facility Site.

          (i) The Kickapoo Tribe has entered into an agreement with Lakes or its
     Affiliate that all gaming and related project facilities will be owned and
     operated by Kickapoo or another subsidiary of the Kickapoo Tribe and
     granting Lakes or its Affiliate the first right of refusal to manage any
     gaming projects owned and operated by Kickapoo or another subsidiary of the
     Kickapoo Tribe under the same terms and conditions described in this
     Management Agreement, and the agreement shall contain representations,
     warranties and covenants substantially similar to those contained in
     Articles 9 and 10 hereof insofar as applicable.

     9.13 Governing Law. This Management Agreement has been negotiated, made and
executed at Kickapoo's office located in the State of Texas and shall be
governed by and construed in accordance with the laws of the State of Texas,
without regard to its conflict of laws provisions, and applicable federal laws.

     9.14 Entire Agreement. This Management Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all prior
agreements relating to management of gaming and ancillary operations conducted
by Kickapoo at the Project Facilities, and is intended by the parties to
supersede and replace the management agreement dated December 29, 2004 executed
by the parties in connection with the Project Facilities.

     9.15 Representatives of Kickapoo. Kickapoo shall furnish to Lakes a list of
the authorized representatives who are empowered to act on behalf of Kickapoo
for the purposes of this Management Agreement and Kickapoo shall keep such list
current. Kickapoo hereby acknowledges and agrees that to the extent any
authorization, consent or other approval of Kickapoo is required under this
Management Agreement or any related Transaction Documents and Kickapoo shall
provide to Lakes a resolution naming any individual or individuals authorized to
represent the Kickapoo for purposes or for the purpose of the operation and
performance of Management Agreement and related Transaction Documents, then
Lakes shall be entitled to rely on all decisions, authorizations, consents, and
approvals provided by such individual or individuals, as applicable, until such
time as Kickapoo shall deliver to Lakes an additional tribal resolution revoking
or otherwise modifying such authority.


                                      -40-

<PAGE>

     9.16 Limitations of Liability.

          Lakes expressly agrees that Kickapoo's total aggregate liability for
damages for breach of the Management Agreement shall be limited in accordance
with the Resolution of Limited Waiver attached hereto as EXHIBIT B and
incorporated herein by reference. Kickapoo shall bear no liability for further
damages.

     9.17 Approvals. Unless otherwise provided herein, all approvals or consents
required by either party hereunder shall not be unreasonably withheld or
delayed. Unless otherwise provided herein, approval by Kickapoo's Board of
Directors or its duly authorized representative(s) shall be deemed to constitute
approval by Kickapoo and approval by the Chief Executive Officer of the Lakes
shall be deemed to constitute approval by the Lakes.

     9.18 Best Efforts. Except as otherwise provided herein, Lakes and Kickapoo
shall use their best efforts to perform and fulfill their obligations under this
Management Agreement in the manner required by this Management Agreement.

     9.19 Request for NIGC Approval. The parties specifically request that the
NIGC, or the Secretary where appropriate, approve this Management Agreement and
the other Transaction Documents, if required, or declare that such approval is
not required.

     9.20 Non-disclosure. The parties agree not to divulge to third parties the
terms of this Management Agreement or any other proprietary or confidential
information exchanged between the parties pursuant to this Management Agreement,
unless (i) the information is required to be disclosed pursuant to judicial
order or Legal Requirements, (ii) the information is at the time of disclosure
already in the public domain, or (iii) to the extent required in order to obtain
financing. This prohibition shall not apply to disclosures by either party to
their attorneys, accountants, or other professional advisers. In situations
where disclosure of the terms of this Management Agreement to regulatory,
governmental or judicial entities is required by law or regulations, the parties
will make reasonable efforts to secure confidential treatment of the economic
terms of this Management Agreement by such entities; provided, however, this
disclosure restriction shall not prohibit Lakes making any SEC filings it deems
legally necessary. The parties agree to consult with each other and cooperate
regarding any press releases regarding this Management Agreement and the
relationships described herein.

     9.21 Other Business Opportunities. During the term of this Management
Agreement, or until Lakes is repaid in full on the Operating Note, whichever is
later, Kickapoo agrees that, subject to all Legal Requirements, Kickapoo may
pursue other commercial, gaming and economic development opportunities in the
State; provided it grants to Lakes the right of first refusal to participate
with Kickapoo upon the terms and conditions proposed by Kickapoo with prompt
response by Lakes required, but in no event later than thirty (30) days after
written notice from Kickapoo. In the event that Lakes declines to participate
with Kickapoo upon such terms and conditions, Kickapoo shall have the right to
pursue such opportunity but may not offer to an unrelated third party terms and
conditions more favorable than those contained offered to Lakes. If


                                      -41-

<PAGE>

Kickapoo does not enter into a signed agreement with such unrelated third party
regarding the other commercial, gaming and economic development opportunity
which has been declined by Lakes within one (1) year of such declination, then
Lakes' right of first refusal granted herein is reinstated for that opportunity.

     9.22 Use of Trade Marks and Trade Names. To assure that Kickapoo can
continue operation of the Project Facilities without disruption in the event
that this Management Agreement is terminated or not renewed, Lakes agrees that
it will not use any trade mark or trade name to identify any portion of the
Project Facilities or services offered within the Project Facilities unless such
trade mark or trade name is registered in the name of Kickapoo.

     9.23 Recitals. The recitals at the beginning of this Management Agreement
are true and are incorporated by reference herein.

                                   ARTICLE 10
                               DISPUTE RESOLUTION

     10.1 Disputes Between the Enterprise and Patrons. Disputes that arise
between the Project and any patron of the Project Facilities shall be resolved
in accordance with the Tribal-State Compact and tribal ordinances, if
applicable.

     10.2 Disputes Between the Project and Project Employees. Kickapoo and Lakes
shall jointly develop an employee dispute resolution policy, and Lakes, as agent
of Kickapoo, shall ensure that the Project's general manager shall implement and
administer the employee dispute resolution policy after its adoption.

     10.3 Disputes Between Kickapoo and Lakes. Disputes between Kickapoo and
Lakes with respect to this Management Agreement, the Operating Note, or any
other Transaction Documents, or a party's performance hereunder or thereunder,
shall be resolved by the following dispute resolution process and pursuant to
the Resolution of Limited Waiver attached hereto as EXHIBIT B.

     (a) The parties shall use their best efforts to settle the dispute. To this
effect, they shall consult and negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties.

     (b) If the parties do not reach such solution within a period of ten (10)
days, then, upon notice by either party to the other, all disputes shall be
settled by arbitration administered by the American Arbitration Association in
accordance with the provisions of its Commercial Arbitration Rules in effect at
the time of submission; except that: (a) the question whether or not a dispute
is arbitrable shall be a matter for binding arbitration by the arbitrators, such
question shall not be determined by any court and, in determining any such
question, all doubts shall be resolved in favor of arbitrability; and (b)
discovery shall be permitted in accordance with the Federal Rules of Civil


                                      -42-

<PAGE>

Procedure, subject to supervision as to scope and appropriateness by the
arbitrators. Unless the parties otherwise agree to in writing, arbitration
proceedings shall be held in Del Rio, Texas.

     (c) The arbitration proceedings shall be conducted before a panel of three
neutral arbitrators, all of whom shall be currently licensed attorneys, actively
engaged in the practice of law for at least ten (10) years, one of which shall
have five (5) years of experience in federal Indian law, and one of which shall
have five (5) years of experience in the gaming industry. The arbitrator
selected by the claimant and the arbitrator selected by respondent shall, within
ten (10) days of their appointment, select a third neutral arbitrator. In the
event that they are unable to do so, the parties or their attorneys may request
the American Arbitration Association to appoint the third neutral arbitrator.
Prior to the commencement of hearings, each of the arbitrators appointed shall
provide an oath or undertaking of impartiality. Kickapoo further agrees that any
arbitration proceeding held in connection with any dispute with respect to the
this Management Agreement, the Operating Note, or any other Transaction Document
may be consolidated with any other arbitration proceeding involving Lakes or its
Affiliates and any of Kickapoo's Affiliates.

     (d) The arbitration award shall be in writing signed by each of the
arbitrators, and shall state the basis for the award. The arbitration award
shall be set forth in reasonable detail as to its findings of fact and law, and
basis of determination of award form and amount. In connection with any
arbitration award, the arbitrators shall be empowered to take the actions and
enforce the judicial remedies described in Paragraph 5 of the Resolution of
Limited Waiver; provided however, that although the arbitrators may award
damages in the event Kickapoo, the Gaming Commission or any other applicable
governmental authority of the Kickapoo Tribe do not to comply with the award,
the arbitrators may not require Kickapoo, the Gaming Commission or any other
applicable governmental authority of the Kickapoo Tribe to take or modify any
governmental legislative decision or action which the arbitrators have
determined has resulted in the dispute between the parties and is contrary to
the parties rights, liabilities or obligations under this Management Agreement,
the Operating Note, or any other Transaction Document ("Specific Performance
Restriction"). Provided further, that: (a) should the arbitrators determine that
there has been an intentional bad faith violation of a party's rights under this
Management Agreement or any other Transaction Documents by Kickapoo or the
Gaming Commission, and if Kickapoo, the Gaming Commission or any other
applicable governmental authority of the Kickapoo Tribe do not reverse such
intentional bad faith violation through governmental legislative decision or
action within thirty (30) days after the being notified by the arbitrators of
such determination, then the arbitrators shall award one-and-half (1 1/2 ) times
damages to Lakes for damages suffered as a consequence of the intentional bad
faith violation by Kickapoo, the gaming Commission or any other applicable
governmental authority of the Kickapoo Tribe; and (b) such Specific Performance
Restriction shall not prevent Lakes from enforcing the Operating Note, the
Security Agreement, the Dominion Account Agreement, nor from realizing on
collateral encumbered thereby.

     (e) Except to the extent such enforcement will be inconsistent with a
specific provision of this Agreement, arbitration awards made pursuant to this
Article 10 shall be enforceable in federal court under Title 9 of the United
States Code and any applicable tribal, federal or state law


                                      -43-

<PAGE>

governing the enforcement of arbitration awards. In addition to any basis for
appeal of an arbitration award stated in Title 9 of the United States Code or
any applicable law governing the enforcement of arbitration awards, either party
hereto may appeal an arbitration award on the basis that the arbitrator or
arbitrators incorrectly decided a question of law in making the award, or the
award was made in an arbitrary or capricious manner or in manifest disregard of
the factual evidence.

     (f) Either party hereto, without having to exhaust any tribal remedies
first, shall have the right to seek and obtain a court order from a court having
jurisdiction over the parties requiring that the circumstances specified in the
order be maintained pending completion of the arbitration proceedings, to the
extent permitted by applicable law.

     (g) Judgment on any arbitration award may be entered in any court having
jurisdiction over the parties. The arbitrators shall not have the power to award
punitive, exemplary or consequential damages, or any damages excluded by or in
excess of any damage limitations expressed in this Agreement.

     (h) Kickapoo hereby expressly waives, and also waives its right to assert,
sovereign immunity and any and all defenses based thereon with respect to
disputes between Kickapoo and Lakes with respect to this Management Agreement,
the Operating Note, or any other Transaction Documents, or a party's performance
hereunder or thereunder; and Kickapoo hereby consent to (i) binding arbitration
under the Commercial Arbitration Rules of the American Arbitration Association,
and (ii) judicial proceedings in or before the United States District Court for
the Western District of Texas, or if that court determines it is without
jurisdiction, then to the courts of the State of Texas and all courts to which
an appeal therefrom may be available, but solely to compel, enforce, modify or
vacate any arbitration award.

     (i) To the extent lawful in connection with any such dispute, Kickapoo
expressly waive the application of the doctrines of exhaustion of tribal
remedies or comity that might otherwise require that a claim be heard first in
tribal court or other tribal forum of Kickapoo Tribe.

     (j) The parties agree that: (1) in the event that a dispute submitted to
arbitration under this section involves the right of Lakes to continue to
receive compensation under Section 5.5 hereof, or (2) in the event that Lakes
appeals an agency decision under Section 8.2 for removal/divestiture, then any
compensation which is asserted to be due to Lakes during such dispute shall, if
not paid to Lakes, be deposited into an interest bearing escrow account with the
entity that is designated as the "Depository" under the Dominion Account
Agreement and Lakes shall be granted a security interest in said escrow account
which interest is contingent, as follows: such escrow funds shall be released to
Lakes upon an arbitration award being issued in its favor or on the date the
agency action under Section 8.2 is reversed by agency administrative or judicial
appeal; provided that upon final conclusion of such arbitration or agency
administrative or judicial appeal, any portion of such escrowed funds not
expressly awarded to Lakes shall be immediately released unconditionally to
Kickapoo.


                                      -44-

<PAGE>

        [Rest of page left blank intentionally; signature page to follow]


                                      -45-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Management Agreement
as of the above written date.

KTTT Enterprises                      Lakes Kickapoo Management, LLC


By: /s/ Juan Garza JR.                By: /s/ Timothy Cope
    -------------------------------       --------------------------------------
Name: Juan Garza JR.                  Timothy J. Cope
      -----------------------------   Its: President and Chief Financial Officer
Its: Chairman
     ------------------------------

ATTEST:


By: /s/ Jesus Anico
    -------------------------------
Name: Jesus Anico
      -----------------------------
Its: Secretary
     ------------------------------

Approved pursuant to 25 U.S.C. Section 2711

National Indian Gaming Commission


By:
    -------------------------------
Print Name: Philip N. Hogen
Its: Chairman


                                      -46-

<PAGE>

                                LIST OF EXHIBITS


Exhibit A   Legal Description of Gaming Facility Site
Exhibit B   Resolution of Limited Waiver of Immunity from Suit


                                      -47-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.120
<SEQUENCE>55
<FILENAME>c92713exv10w120.txt
<DESCRIPTION>OPERATING NOTE
<TEXT>
<PAGE>
                                                                  Exhibit 10.120

                                 OPERATING NOTE
                              (Lucky Eagle Casino)

                                                           Minnetonka, Minnesota
                                                                January 19, 2005

     FOR VALUE RECEIVED, KTTT ENTERPRISES ("MAKER"), A WHOLLY-OWNED SUBSIDIARY
OF AND A GOVERNMENTAL INSTRUMENT OF THE KICKAPOO TRADITIONAL TRIBE OF TEXAS, A
FEDERALLY RECOGNIZED INDIAN TRIBE, promises to pay to the order of LAKES
KICKAPOO MANAGEMENT, LLC, A MINNESOTA LIMITED LIABILITY COMPANY ("LENDER"), in
the United States of America, in immediately available funds, at such place as
the holder hereof may from time to time designate, or in the absence of such
designation, at the office of the Lender, 130 Cheshire Lane, Minnetonka,
Minnesota 55305, the principal sum of the aggregate unpaid principal amount of
all "Guaranteed Minimum Payment Advances" and "Working Capital Advances" made to
Maker pursuant to Sections 5.3(b) and 5.7, respectively, of the Management
Agreement for a Gaming Facility and Related Ancillary Facilities dated January
19, 2005 entered into between the Maker and Lender for the Kickapoo Lucky Eagle
Casino (the "Management Contract"), plus interest on any Working Capital
Advances from the date of such advances, in like money, in accordance with the
following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Management Contract.

     2. Interest. No interest shall accrue on any Minimum Guaranteed Payment
Advances. Each Working Capital Advance as and when made pursuant to the terms of
the Management Contract shall bear interest at the Interest Rate, as described
herein, from and including the date the proceeds of such Working Capital Advance
are advanced (such date the "Funding Date" of such Advance) through the date of
payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be a Limited Recourse obligation, as defined in
the Management Contract, and secured by the real and personal property described
therein. Principal and interest, as applicable, on each Minimum Guaranteed
Payment Advance and Working Capital Advance (each an "Advance"), which advances
shall be repaid in accordance with the terms and provisions set forth in the
Management Contract. The Maker shall have the right to prepay all or any part of
this Operating Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity. In the event that the term of the Management Contract is
tolled under Section 6.6 thereof, Maker's obligation to make the monthly
installment payment hereunder shall be likewise tolled until the tolling under
Section 6.6 ceases (except to the extent that the Project shall receive any
business interruption insurance proceeds in connection with tolling under
Section 6.6, in which case Maker's obligation to make monthly installment
payments shall not be tolled).

     4. Interest Rate. The Interest Rate means an interest rate equal to the
greater of the prime rate of Chase Manhattan Bank, N.A. (or any successor Bank
by acquisition or merger) plus


                                      -1-

<PAGE>

two percent (2%), per annum in place at the time of the advance, fixed as of the
first business day of each calendar month. Interest at the foregoing rate shall
accrue and shall be payable as a Limited Recourse obligation as provided in the
Management Contract. Interest shall be computed for the actual number of days
elapsed on the basis of a year consisting of 360 days. It is intended that the
rate of interest hereon shall never exceed the maximum rate, if any, which may
be legally charged on the Loan evidenced by this Operating Note ("Maximum
Rate"), and if the provisions for interest contained in this Operating Note
would result in a rate higher than the Maximum Rate, interest shall nevertheless
be limited to the Maximum Rate and any amounts which may be paid toward interest
in excess of the Maximum Rate shall be applied to the reduction of principal,
or, at the lawfully exercised option of the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books all Advances made to the Maker and all payments of principal amounts and
interest in respect of such Advances, which shall be presumptive evidence as to
the outstanding principal amount of all Advances; provided, however, that the
failure to make such notation with respect to any Advance or payments shall not
limit or otherwise affect the obligations of Maker.

     6. Default; Acceleration. If any Event of Default occurs, then the
outstanding principal, amount of this Operating Note, any interest accrued
thereon from time to time, and any other sums then remaining unpaid hereunder,
at the option of the holder hereof and without notice, shall become immediately
due and payable and Lender may exercise any other rights or remedies available
under any Transaction Documents or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Operating Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Management Contract or any Transaction
          Document or under any other agreement entered into with or in favor of
          Lender or any Affiliate of Lender, or default by Maker's Affiliate
          under any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, which default is not cured by Maker
          or its Affiliate as applicable within the cure period provided
          thereunder after written notice of default is delivered to Maker or
          its Affiliate; provided, however, that if the nature of such default
          (but specifically excluding defaults curable by the payment of money)
          is such that it is not possible to cure such default within thirty
          (30) days, such 30-day period shall be extended for so long as the
          breaching party


                                      -2-

<PAGE>

          shall be using diligent efforts to effect a cure thereof; or

     (d)  The Management Contract shall be terminated by either the Maker or the
          Lender; or

     (e)  Any representation or warranty given to the Lender by the Maker (or
          any of its representatives) in connection with entering into the
          Management Contract or the other Transaction Documents and/or any
          borrowing thereunder, or given by an Affiliate of Maker in connection
          with any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, or required to be furnished under
          the terms thereof, shall prove untrue or misleading in any material
          respect (as determined by the Lender in the exercise of its reasonable
          judgment) as of the time when given or shall fail to be true and
          correct in all material respects at any time during the term of the
          agreement; or

     (f)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or

     (g)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing or shall be insolvent.

     7. Security. This Operating Note shall be secured by a security interest
the Collateral granted by Maker to Lender pursuant to the Management Contract
and the other Transaction Documents, including the Dominion Account Agreement.

     8. Presentment Waiver. Maker and all endorsers, guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Operating Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Operating Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no
event be construed as a waiver or release thereof.


                                      -3-

<PAGE>

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS OPERATING NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Operating Note.

     12. Applicable Law. This Operating Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Texas,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Operating Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Operating Note is found by
a court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Operating Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this
Operating Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Operating Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Operating Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought, and this Operating Note shall supersede and
replace the Operating Note dated December 29, 2004 executed by Maker in favor of
Lender in connection with the Project Facilities.

     15. Time is Material. Time is hereby declared to be of the essence of this
Operating Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Operating Note.

     16. Successors and Assigns. This Operating Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Operating Note.


                                      -4-

<PAGE>

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 9.3 of the Management Contract.

     18. Dispute Resolution/Limited Waiver of Sovereign Immunity. Maker and
Lender expressly agree that any dispute in connection with this Operating Note
shall be subject to the dispute resolution procedures and the limited waiver of
sovereign immunity contained in the Management Contract and the Resolution of
Limited Waiver attached thereto as Exhibit B, the terms of which are hereby
incorporated by reference thereto.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                      -5-

<PAGE>

IN WITNESS WHEREOF, Maker has caused this Operating Note to be executed under
seal and delivered as of the date first above written.

                                        MAKER:

                                        KTTT ENTERPRISES


                                        By: /s/ Juan Garza JR
                                            ------------------------------------
                                        Name: Juan Garza JR
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------

                                        ATTEST:


                                        By: /s/ Jesus Anico
                                            ------------------------------------
                                        Name: Jesus Anico
                                              ----------------------------------
                                        Title: Secretary
                                               ---------------------------------

            [Signature page to Kickapoo Operating Note - Lucky Eagle
                   in favor of Lakes Kickapoo Management, LLC]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.121
<SEQUENCE>56
<FILENAME>c92713exv10w121.txt
<DESCRIPTION>SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.121

                               SECURITY AGREEMENT

                     (LAKES MANAGEMENT - LUCKY EAGLE CASINO)

          This Security Agreement is made and entered into on January 19, 2005,
by and between KTTT Enterprises (hereinafter referred to as "Kickapoo" or
"Debtor"), a wholly-owned subsidiary of and a governmental instrument of the
Kickapoo Traditional Tribe of Texas ("Kickapoo Tribe"), a federally recognized
Indian tribe, whose business office is located at HCR 1, Box 9700, Eagle Pass,
Texas 78852, and Lakes Kickapoo Management, LLC, a Minnesota limited liability
company (hereinafter referred to as "Lakes" or "Secured Party"), whose business
office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is created under the laws of and a governmental
instrument of the Kickapoo Tribe, a federally recognized Indian tribe eligible
for the special programs and services provided by the United States to Indians
because of their status as Indians and is recognized as possessing powers of
self-government.

     WHEREAS, the United States government holds lands in the State of Texas in
trust for the benefit of the Kickapoo Tribe over which the Kickapoo Tribe
possesses sovereign governmental powers and the Kickapoo Tribe holds or intends
to acquire interests in lands which constitute "Indian lands" upon which the
Kickapoo Tribe may legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into an agreement with Debtor dated
January 19, 2005 (as amended from time to time, the "Management Contract"),
pursuant to which, as more specifically described therein, Lakes is to manage
the Lucky Eagle Casino and related ancillary facilities owned by Debtor on
behalf of the Kickapoo Tribe.

     WHEREAS, pursuant to the Management Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Management Contract, the Debtor has agreed to execute this Security Agreement in
favor of Secured Party and to grant a security interest to Secured Party in all
of its right, title and interest in the property described herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

          1. CREATION OF SECURITY INTEREST. The Debtor hereby assigns, pledges
and grants to Secured Party, for and on behalf of Secured Party itself and its
Affiliates, a security interest in the Debtor's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each


                                  Page 1 of 15

<PAGE>

case whether now owned or hereafter acquired by Debtor in order to secure the
payment and performance of the obligations of Debtor to Secured Party described
in Section 3 herein below. On the date of execution of this Agreement, Debtor
shall cause to be delivered to Secured Party: (a) such financing statements and
similar documents necessary to perfect the security interest granted to Secured
Party pursuant to this Agreement (the "Financing Statements"), and (b) a legal
opinion in form and substances reasonably acceptable to Secured Party, opining
as to the due authorization, execution, delivery and enforceability of this
Agreement and the Financing Statements by Debtor, together with opinions as to
Debtor's sovereign immunity waiver and non-contravention with laws and
agreements.

          2. COLLATERAL. The Collateral under this Security Agreement includes
all of the following assets of the Debtor which are or are to be installed,
attached, and/or used upon or in connection with, relate to or arise from
(including without limitation the ownership and/or operation of) the Project,
the Gaming Facility Site and/or the Project Facilities, each whether now owned
or hereafter acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
(the "Collateral").

               (a) any Furnishings and Equipment (as defined in the Management
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Management Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Texas.

          3. SECURED OBLIGATIONS OF DEBTOR. The Collateral secures and shall
hereafter secure the following, whether now existing or hereafter incurred: (i)
all loans, compensation, fees, expenses and other amounts owing by (a) Debtor to
Secured Party or its Affiliates under or with respect to the Operating Note, and
each of the other Transaction Documents (as each of such terms are defined in
the Management Contract), and (b) the Kickapoo Tribe or its Affiliates to
Secured Party of its Affiliates under or with respect to the Tribal Agreement,
each of the foregoing, whether


                                  Page 2 of 15

<PAGE>

now existing or hereafter incurred or arising; (ii) any and all sums advanced by
Secured Party in order to preserve the Collateral or preserve Secured Party's
security interest in the Collateral (or the priority thereof); and (iii) the
expenses of retaking, holding, preparing for sale or lease, selling or otherwise
disposing of or realizing on the Collateral, of any proceeding for the
collection or enforcement of any indebtedness, obligations or liabilities of
Debtor referred to above, or of any exercise by Secured Party of its rights
hereunder, together with reasonable attorneys' fees and disbursements and court
costs (collectively, the "Secured Obligations"); PROVIDED HOWEVER, Secured Party
agrees to terminate this Security Agreement upon request if Debtor has satisfied
the following conditions: (a) all Secured Obligations have been repaid in full
to Secured Party and Secured Party has no further obligation, if any, to make
advances under the Management Contract with respect thereto, and (b) the
Management Contract has been terminated in accordance with its terms.

          All payments and performance by Debtor with respect to any Secured
Obligations shall be in accordance with the terms under which said indebtedness,
obligations and liabilities were or are hereafter incurred or created.

          4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. The Debtor represents and
warrants that:

               (a) the Debtor is (or, to the extent that the Collateral is
acquired after the date hereof, will be) the sole legal and beneficial owner of
its respective Collateral and has exclusive possession and control thereof;
there are no security interests in, liens, charges or encumbrances on, or
adverse claims of title to, or any other interest whatsoever in, such Collateral
or any portion thereof except such liens permitted by and subject to the terms
of Section 2.23 of the Management Contract and that are created by this Security
Agreement ("Permitted Liens"); and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("Lien Notice") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Secured Party relating to this Security
Agreement or related agreements, or for which duly executed termination
statements have been delivered to Secured Party for filing;

               (b) the Debtor has full right, power and authority to execute,
deliver and perform this Security Agreement. This Security Agreement constitutes
a legally valid and binding obligation of the Debtor, enforceable against the
Debtor in accordance with its terms subject to any limitations set forth in the
Resolution of Limited Waiver attached to the Management Contract. Subject to the
completion of the items identified in Section 4(c) below, the provisions of this
Security Agreement are effective to create in favor of Secured Party a valid and
enforceable first, prior and perfected security interest in the Collateral;

               (c) except for the filing or recording of the financing
statements and fixture filings that are to be filed in connection with this
Security Agreement, no authorization, approval or other action by, no notice to
or registration or filing with, any person or entity, including without
limitation, any stockholder or creditor of Debtor or any governmental authority
or regulatory body is required, except as may be agreed to by Debtor and Secured
Party: (i) for the grant by the Debtor of the security interest in the
Collateral pursuant to this Security Agreement or for the


                                  Page 3 of 15

<PAGE>

execution, delivery or performance of this Security Agreement by the Debtor,
(ii) for the perfection or maintenance of such security interest created hereby,
including the first priority nature of such security interest, or the exercise
by Secured Party of the rights and remedies provided for in this Security
Agreement (other than any required governmental consent or filing with respect
to any patents, trademarks, copyrights, governmental claims, tax refunds,
licenses or permits and the exercise of remedies requiring prior court
approval), or (iii) for the enforceability of such security interest against
third parties, including, without limitation, judgment lien creditors;

               (d) Debtor does not do business, and for the previous five years
has not done business, under any fictitious business names or trade names;

               (e) the Collateral has not been and will not be used or bought by
Debtor for personal, family or household purposes;

               (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

               (g) Intentionally omitted;

               (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

               (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

               (j) none of the execution, delivery and performance of this
Security Agreement by Debtor, the consummation of the transactions herein
contemplated, the fulfillment of the terms hereof or the exercise by Secured
Party of any rights or remedies hereunder will constitute or result in a breach
of any of the terms or provisions of, or constitute a default under, or
constitute an event which with notice or lapse of time or both will result in a
breach of or constitute a default under, any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor is
a party, conflict with or require approval, authorization, notice or consent
under any law, order, rule, regulation, license or permit applicable to Debtor
of any court or any federal or state government, regulatory body or
administrative agency, or any other governmental body having jurisdiction over
Debtor or its properties, or require notice, consent, approval or authorization
by or registration or filing with any person or entity (including, without
limitation, any stockholder or creditor of Debtor) other than any notices to
Debtor from Secured Party required hereunder except as may be agreed to by
Debtor and Secured Party. Except for the Permitted Liens, none of the Collateral
is subject to any agreement, indenture, mortgage, deed of trust, equipment
lease, instrument or other document to which Debtor is a party that may restrict
or inhibit Secured Party's rights or ability to sell or dispose of the
Collateral or any part thereof after the occurrence of an Event of Default (as
defined herein).


                                  Page 4 of 15

<PAGE>

          5. COVENANTS OF DEBTOR. The Debtor covenants and agrees that:

               (a) Debtor will not move or permit to be moved the Collateral or
any portion thereof to any location other than that set forth in Section 4(f)
hereof or locations established in compliance with Section 5(b) hereof without
the prior written consent of the Secured Party and the prior filing of a
financing statement with the proper office and in the proper form to perfect or
continue the perfection (without loss of priority) of the security interests
created herein, which filing shall be satisfactory in form, substance and
location to Secured Party prior to such filing;

               (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

               (c) Intentionally Omitted;

               (d) Debtor will promptly, and in no event later than 21 days
after a request by Secured Party, procure or execute and deliver all further
instruments and documents (including, without limitation, notices, legal
opinions, financing statements, mortgagee waivers, landlord disclaimers and
subordination agreements) necessary or appropriate to and take any other actions
which are necessary or, in the judgment of Secured Party, desirable or
appropriate to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes' and provisions of this Security Agreement, and will pay all reasonable
costs incurred in connection therewith. Without limiting the generality of the
foregoing, Debtor will: (i) mark conspicuously each item of chattel paper and
each other contract included in the Collateral with a legend, in form and
substance satisfactory to Secured Party, indicating that such chattel paper and
other contracts are subject to the security interests granted hereby; (ii)
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable,
which Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a promissory note
or other instrument or chattel paper (other than checks received by any Debtor
in the ordinary course of business), deliver and pledge to Secured Party such
note or instrument or chattel paper duly endorsed and accompanied by duly
executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the


                                  Page 5 of 15

<PAGE>

continuation of an Event of Default, shall instruct such person to hold all such
Collateral for Secured Party's account subject to Secured Party's instructions;
(v) deliver and pledge to Secured Party all securities and instruments (other
than checks received by Debtor in the ordinary course of business) constituting
Collateral duly endorsed and accompanied by duly executed instruments of
transfer or assignments, all in form and substance satisfactory to Secured
Party; and (vi) at the request of Secured Party, deliver to Secured Party any
and all certificates of title, applications for title or similar evidence of
ownership of all Collateral and shall cause Secured Party to be named as
lienholder on any such certificate of title or other evidence of ownership;

               (e) without the prior written consent of Secured Party, Debtor
will not in any way encumber, or hypothecate, or create or permit to exist, any
lien, security interest, charge or encumbrance or adverse claim upon or other
interest in the Collateral, except for Permitted Liens, and the Debtor will
defend the Collateral against all claims and demands of all persons at any time
claiming the same or any interest therein, except as expressly provided herein.
Debtor will not permit any Lien Notices to exist or be on file in any public
office with respect to all or any portion of the Collateral except, in each
case, for Lien Notices of holders of Permitted Liens or except as may have been
filed by or for the benefit of Secured Party relating to this Security Agreement
or related agreements. Debtor shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor relative to the Collateral, which may in any
material way affect the value of the Collateral or the rights and remedies of
Secured Party in respect thereto;

               (f) without the prior written consent of Secured Party, Debtor
will not sell, transfer, assign (by operation of law or otherwise), exchange or
otherwise dispose of all or any portion of the Collateral or any interest
therein, except that the Debtor may sell worn-out or obsolete equipment provided
that the proceeds thereof are applied to the Secured Obligations or used to
purchase new collateral of equal or greater value and the Secured Party shall be
granted a first priority security interest therein. If the proceeds of any such
prohibited sale are notes, instruments, documents of title, letters of credit or
chattel paper, such proceeds shall be promptly delivered to Secured Party to be
held as Collateral hereunder (with all necessary or appropriate endorsements).
If the Collateral, or any part thereof or interest therein, is sold,
transferred, assigned, exchanged, or otherwise disposed of in violation of these
provisions, the security interest of Secured Party shall continue in such
Collateral or part thereof notwithstanding such sale, transfer, assignment,
exchange or other disposition, and Debtor will hold the proceeds thereof in a
separate account for Secured Party's benefit. Debtor will, at Secured Party's
request, transfer such proceeds to Secured Party in kind;

               (g) Secured Party is hereby authorized to file one or more
financing statements or fixture filings, and continuations thereof and
amendments thereto, relative to all or any part of the Collateral, without the
signature of Debtor where permitted by law;

               (h) Except as expressly permitted by the Management Contract,
Debtor will not enter into any indenture, mortgage, deed of trust, contract,
undertaking, document, instrument or other agreement, except for the Management
Contract and any documents, instruments or agreements related thereto or issue
any securities which may materially restrict or inhibit Secured Party's rights
or ability to sell or otherwise dispose of the Collateral or any part thereof
after the


                                  Page 6 of 15

<PAGE>

occurrence of an Event of Default;

               (i) The Debtor shall cause to be maintained, insurance with
respect to the Project and Collateral as required by the Management Contract and
naming Secured Party as an additional insured, loss payee and mortgagee, if
applicable. Upon request, the Debtor shall provide to the Secured Party
certificates of insurance or copies of insurance policies evidencing that such
insurance satisfying the requirements of such Management Contract is in effect
at all times;

               (j) Except as expressly permitted by the Management Contract, the
Debtor will pay and discharge all taxes, assessments and governmental charges or
levies against the Collateral prior to delinquency thereof and will keep the
Collateral free of all unpaid claims and charges (including claims for labor,
materials and supplies) whatsoever;

               (k) Debtor will keep and maintain the Collateral in good
condition, working order and repair and from time to time will make or cause to
be made all repairs, replacements and other improvements in connection therewith
that are necessary or desirable toward such end. Debtor will not misuse or abuse
the Collateral, or waste or allow it to deteriorate except for the ordinary wear
and tear of its normal and expected use in Debtor's business in accordance with
Debtor's policies as then in effect (provided that no changes are made to
Debtor's policies as in effect on the date hereof that would be materially
adverse to the interests of the Secured Party), and will comply with all laws,
statutes and regulations pertaining to the use or ownership of the Collateral.
Debtor will promptly notify Secured Party regarding any material loss or damage
to any material Collateral or portion thereof;

               (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guaranty
payments due Debtor under any contracts or other agreements with third parties,
will not voluntarily permit any such payments to become more than thirty (30)
days delinquent and will in a timely manner record and assign to Secured Party,
to the extent and at the earliest time permitted by law, any such liens and
rights to under such guaranties;

               (m) Intentionally omitted;

               (n) Intentionally omitted;

               (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

               (p) Secured Party shall have the right at any time, but shall not
be obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any


                                  Page 7 of 15

<PAGE>

encumbrance, charge or lien (including any Permitted Liens) applicable or
purported to be applicable to any Collateral hereunder, and whether prior to or
after the occurrence of any Event of Default, appear in and defend any action or
proceeding purporting to affect its security interest in and/or the value of any
Collateral, and in exercising any such powers or authority, the right to pay all
expenses incurred in connection therewith, including attorneys' fees. Debtor
hereby agrees that it shall be bound by any such payment made or incurred or act
taken by Secured Party hereunder and shall reimburse Secured Party for all
reasonable payments made and expenses incurred under this Security Agreement,
which amounts shall be secured under this Security Agreement. Secured Party
shall have no obligation to make any of the foregoing payments or perform any of
the foregoing acts;

               (q) if any Debtor shall become entitled to receive or shall
receive any certificate, instrument, option or rights, whether as an addition
to, in substitution of, or in exchange for any or all of the Collateral or any
part thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

               (r) Secured Party is hereby authorized to pay all reasonable
costs and expenses incurred in the exercise or enforcement of its rights
hereunder, including attorneys' fees, and to apply any Collateral or proceeds
thereof against such amounts, and then to credit or use any further proceeds of
the Collateral in accordance herewith; provided however that if the Debtor is
the prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

               (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

          6. DEFAULTS AND REMEDIES

          6.1 EVENTS OF DEFAULT. Each of the following occurrences shall
constitute an Event of Default:

               (a) Any material representation or warranty made by or on behalf
of the Debtor herein or in any report, certificate or other document furnished
by or on behalf of the Debtor pursuant to this Agreement shall prove to be false
or misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects.

               (b) The Debtor shall default in the due observance or performance
of any of its material obligations hereunder and such default shall continue for
thirty (30) days (unless a shorter or longer cure period is provided under the
terms of this Agreement) after written notice thereof has been sent to the
Debtor by Secured Party; provided, however, that if the nature of such


                                  Page 8 of 15

<PAGE>

default (but specifically excluding defaults curable by the payment of money) is
such that it is not possible to cure such breach within thirty (30) days, such
30-day period shall be extended for so long as the Debtor shall be using
diligent efforts to effect a cure thereof but no more than an additional sixty
(60) days.

               (c) A Material Breach (as defined in the Management Contract) or
an "Event of Default" (as defined in any other Transaction Document) shall
occur.

          6.2 REMEDIES. Upon the occurrence and continuation of an Event of
Default hereunder, the Debtor expressly covenants and agrees that Secured Party
may, at its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

               (a) declare all advances made by Secured Party to Debtor
hereunder, all other indebtedness owed by Debtor to Secured Party and all
Secured Obligations to be immediately due and payable, whereupon all unpaid
principal and interest on said advances and other indebtedness and Secured
Obligations shall become and be immediately due and payable;

               (b) if the Management Contract is terminated and either (i) the
Commencement Date (as defined in the Management Contract) has not occurred, or
(ii) the Debtor does not or at any time fails to continue operations of Class II
Gaming and/or Class III Gaming at the Gaming Facility or any material portion of
the Project Facilities, Secured Party may immediately take possession of any of
the Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's places of business, premises and property to exercise Secured
Party's rights hereunder; and without notice (except as specified below), sell
the Collateral or any part thereof in one or more parcels at one or more public
or private sales, at any of Secured Party's offices or elsewhere, at such time
or times, for cash, on credit or for future delivery, and at such price or
prices and upon such other terms as shall be commercially reasonable. The Debtor
acknowledges and agrees that, to the extent notice of sale shall be required by
law, at least ten (10) days' written notice to Debtor of the time and place of
any public sale or of the date on or after which any private sale is to be made
shall constitute reasonable notification. Any public sale shall be held at such
time or times during ordinary business hours and at such place or places as
Secured Party may fix in the notice of such sale. Notwithstanding the foregoing,
Secured Party shall not be obligated to make any sale of Collateral regardless
of notice of sale having been given. Secured Party may, without notice or
publication, adjourn any public or private sale, or cause the same to be
adjourned from time to time by announcement at the time and place fixed for sale
or, with respect to a private sale, after which such sale may take place, and
any such sale may, without further notice, be made at the time and place to
which it was so adjourned or, with respect to a private sale, after which such
sale may take place. Each purchaser at any such sale shall hold the property
sold free from any claim or right on the part of Debtor, and the Debtor hereby
waives, to the full extent permitted by law, all rights of stay and/or appraisal
which Debtor now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted. The Debtor also hereby waives any
claims against Secured Party arising by reason of the fact that the price at
which any Collateral


                                  Page 9 of 15

<PAGE>

may have been sold at a private sale was less than the price which might have
been obtained at a public sale, even if Secured Party accepts the first offer
received and does not offer such Collateral to more than one offeree. The
parties hereto agree that the notice provisions, method, manner and terms of any
sale, transfer or disposition of any Collateral in compliance with the terms set
forth herein or any other provision of this Security Agreement are commercially
reasonable;

               (c) exercise any or all of the rights and remedies provided for
by the Texas Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor is the prevailing party in any
action or proceeding seeking enforcement of this Agreement, then the Debtor
shall not be and Secured Party shall be responsible for such related costs and
expenses. Secured Party may exercise its rights under this Security Agreement
independently of any other collateral or guaranty that Debtor may have granted
or provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor to secure any
Secured Obligation or to proceed against any guarantor before enforcing its
rights under this Security Agreement. The Debtor shall reimburse Secured Party
upon demand for, or Secured Party may apply any proceeds of Collateral to, the
reasonable costs and expenses (including attorneys' fees, transfer taxes and any
other charges) incurred by Secured Party in connection with any sale,
disposition, repair, replacement, alteration, addition, improvement or retention
of any Collateral hereunder; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses;;

               (d) the powers conferred on the Secured Party by this Section 6.2
and otherwise in this Agreement are solely to protect the Secured Party's
interests in the Collateral and shall not impose any duty upon it to exercise
any such powers. The Secured Party shall be accountable only for amounts that it
actually receives as a result of the exercise of such powers, and neither the
Secured Party nor any of their officers, directors, trustees, employees,
representatives or agents shall, in the absence of willful misconduct or gross
negligence, be responsible to the Debtor for any act or failure to act pursuant
to this Section 6.2 or otherwise pursuant to this Agreement; and

               (e) The Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

          7. MISCELLANEOUS PROVISIONS

               (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class


                                 Page 10 of 15

<PAGE>

mail or overnight courier, postage prepaid, to the parties addressed as follows:

If to Debtor:          KTTT Enterprises
                       ATTN: Juan Garza, Jr., Council Chairman
                       HCR 1, Box 9700
                       Eagle Pass, Texas 78852
                       (830) 757-9228 (Fax)

     With a copy to:   Roy Bernal, Tribal Administrator
                       Kickapoo Traditional Tribe of Texas
                       HCR 1, Box 9700
                       Eagle Pass, Texas 78852
                       (830) 757-9228 (Fax)

          and          Gloria E. Hernandez, Tribal Attorney
                       HCR 1, Box 9700
                       Eagle Pass, Texas 78852
                       (830) 757-9228 (Fax)

If to Secured Party:   Lakes Kickapoo Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

               (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security


                                 Page 11 of 15

<PAGE>

Agreement or any provision hereof.

               (c) Amendments. This Security Agreement or any provision hereof
may be changed, waived, or terminated only by a statement in writing signed by
the party against which such change, waiver or termination is sought to be
enforced, and then any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

               (d) No Waiver. No failure on the part of Secured Party to
exercise, and no delay in exercising, and no course of dealing with respect to,
any power, privilege or right under this Security Agreement or any related
agreement shall operate as a waiver thereof nor shall any single or partial
exercise by Secured Party of any power, privilege or right under this Security
Agreement or any related agreement preclude any other or further exercise
thereof or the exercise of any other power, privilege or right. The powers,
privileges and rights in this Security Agreement are cumulative and are not
exclusive of any other remedies provided by law. No waiver by Secured Party of
any default hereunder shall be effective unless in writing, nor shall any waiver
operate as a waiver of any other default or of the same default on a future
occasion.

               (e) Binding Agreement. All rights of Secured Party hereunder
shall inure to the benefit of its successors and assigns. Subject to the terms
of the Management Contract, Debtor shall not assign any of their respective
interest under this Security Agreement without the prior written consent of
Secured Party. Any purported assignment inconsistent with this provision shall,
at the option of Secured Party, be null and void.

               (f) Entire Agreement. This Security Agreement, together with any
other agreement executed in connection herewith, is intended by the parties as a
final expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof; and shall supersede and replace
the parties prior Security Agreement (management) dated December 29, 2004
relating to the Project Facilities. Acceptance of or acquiescence in a course of
performance rendered under this Security Agreement shall not be relevant to
determine the meaning of this Security Agreement even though the accepting or
acquiescing party had knowledge of the nature of the performance and opportunity
for objection.

               (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

               (h) Survival of Provisions. All representations, warranties and
covenants of Debtor contained herein shall survive the execution and delivery of
this Security Agreement, and shall terminate only upon the termination of this
Security Agreement pursuant to Subsection 7(k) hereof.

               (i) Power of Attorney. The Debtor hereby irrevocably appoints
Secured Party its attorney-in-fact, which appointment is coupled with an
interest, with full authority in the


                                 Page 12 of 15

<PAGE>

place and stead of Debtor and in the name of Debtor, Secured Party or otherwise,
from time to time in Secured Party's discretion (a) to execute and file
financing and continuation statements (and amendments thereto and modifications
thereof) on behalf and in the name of the Debtor with respect to the security
interests granted or purported to be granted hereby, (b) to take any action and
to execute any instrument which Secured Party may deem necessary or advisable to
exercise its rights under Section 5(p) hereunder, and (c) upon the occurrence
and during the continuance of an Event of Default, to take any action and to
execute any instrument which Secured Party may deem necessary or advisable to
accomplish the purposes of this Security Agreement, including, without
limitation:

                    (i) to obtain and adjust insurance required to be paid to
Secured Party pursuant hereto;

                    (ii) to ask, demand, collect, sue for, recover, compound,
receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral;

                    (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

                    (iv) to sell, convey or otherwise transfer any item of
Collateral to any purchaser thereof; and

                    (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

               (j) Counterparts. This Security Agreement and any amendments,
waivers, consents or supplements may be executed in any number of counterparts
and by facsimile, each of which when so executed and delivered shall be deemed
an original, but all of which shall together constitute one and the same
agreement.

               (k) Termination of Agreement. Unless earlier terminated pursuant
to Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor all of the Collateral hereunder which has
not been sold, disposed of, retained or applied by Secured Party in accordance
with the terms hereof, and execute and deliver to Debtor such documents as
Debtor may reasonably request to evidence such termination. Such reassignment
and redelivery shall be without warranty by or recourse to Secured Party, and
shall be at the expense of Debtor; provided however, that this Security
Agreement (including all representations, warranties and covenants contained
herein) shall continue to be effective or be reinstated, as the case may be, if
at any time any amount received by Secured Party in respect of the indebtedness
and obligations secured hereunder is rescinded or must otherwise be restored or
returned by Secured Party upon or in connection with the insolvency, bankruptcy,
dissolution, liquidation or reorganization of Debtor or any other person or upon
or in connection with the appointment of any intervenor or conservator of, or
trustee or similar official for, Debtor or any other person or any substantial
part of its assets, or otherwise, all as though such payments had not


                                 Page 13 of 15

<PAGE>

been made.

               (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the Security Agreement as defined and
referred to in the Management Contract. As such and without limiting the scope
of such agreements, the provisions of Section 9.10 and Article 10 of the
Management Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver attached thereto. This Agreement will be governed
by the internal laws of the State of Texas without giving effect to its conflict
of laws principles. The parties hereto may not change the law governing this
Agreement without express written consent of the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        KTTT ENTERPRISES


By: /s/ Juan Garza JR.                  By:
    ---------------------------------       ------------------------------------
Name: Juan Garza JR.                    Name:
      -------------------------------         ----------------------------------
Its: Chairman                           Title:
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES KICKAPOO MANAGEMENT, LLC

ATTEST:


By: /s/ Jesus Anico                     By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Jesus Anico                       Name: Timothy J. Cope
      -------------------------------   Title: President and Chief Financial
Its: Secretary                                 Officer
     --------------------------------

       [Signature Page to Kickapoo Security Agreement - Lucky Eagle Casino
                   in favor of Lakes Kickapo Management, LLC]

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
                     (KTTT ENTERPRISES COLLATERAL LOCATIONS)

1.   THE KICKAPOO LUCKY EAGLE CASINO COMPLEX LOCATED NEAR EAGLE PASS, TEXAS, USA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.122
<SEQUENCE>57
<FILENAME>c92713exv10w122.txt
<DESCRIPTION>GAMING DEVELOPMENT CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.122

                                GAMING OPERATIONS
                              CONSULTING AGREEMENT
                                (CIMARRON CASINO)

     THIS GAMING DEVELOPMENT CONSULTING AGREEMENT (hereinafter referred to as
the "Agreement") is made as of January 27, 2005 ("Effective Date") by and
between the Iowa Tribe of Oklahoma, a federally-chartered corporation ("Iowa
Corp"), created pursuant to Section 3 of the Oklahoma Indian Welfare Act of June
26, 1936 (49 Stat. 1967), as issued on January 4, 1938 by the Secretary of the
Interior and ratified on February 5, 1938 located in Iowa Indian Country within
the physical boarders of the State of Oklahoma, with business offices located at
RR 1, P.O. Box 721, Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma, a
federally-recognized Indian tribe with a Constitution approved and ratified
under the Oklahoma Indian Welfare Act, and Lakes Iowa Consulting, LLC, a
Minnesota limited liability company ("Lakes").

                                    RECITALS

     A. The Iowa Tribe of Oklahoma ("Iowa Tribe") is a federally recognized
Indian tribe eligible for the special programs and services provided by the
United States to Indian tribes, and is recognized as possessing and exercising
powers of self-government. The Iowa Tribe, pursuant to Section 3 of the Oklahoma
Indian Welfare Act of June 26, 1936 (49 Stat. 1967), was issued a corporate
charter for Iowa Corp on January 4, 1938 by the Secretary of the Interior and
said corporate charter was ratified by the Iowa Tribe on February 5, 1938. Iowa
Corp is vested with sovereign immunity, and is the entity that controls and
manages the economic affairs of the Iowa Tribe, including its tribal gaming
operations.

     B. The Iowa Tribe, through Iowa Corp, operates an established gaming
operation, known as the Cimarron Casino, located in Perkins, Oklahoma ("Gaming
Facility," as further defined herein). This Gaming Facility conducts Class II
Gaming (and also Class III Gaming activities in the event of federal agency
approval of a Tribal-State Compact between the Iowa Tribe and the State of
Oklahoma permitting such gaming).

     C. The Gaming Facility has achieved less than desired business results and
Iowa Corp desires immediate consulting services to help turn around the
performance of the Gaming Facility.

     D. The Gaming Facility, together with related amenities such as a hotel,
food and beverage facilities, retail outlets, and ancillary building and
enterprises that enhance the Gaming Facility ("Ancillary Facilities," as further
defined herein) (the Gaming Facility and the Ancillary Facilities together, the
"Project Facilities") are intended to generate substantial revenues for Iowa
Corp, and therefore significantly improve the social, economic and health
conditions of present


                                      -1-

<PAGE>

and future tribal members, while strengthening the Iowa Tribe's overall economic
self-sufficiency and self-determination of the Iowa Tribe.

     E. Lakes has the requisite skills, resources, experience, and expertise
related to operations of gaming facilities and related amenities to assist Iowa
Corp in connection with the operations of the Project Facilities.

     F. Iowa Corp presently lacks the operational expertise to improve the
business performance of its existing Project Facilities, and desires to retain
the services of the Lakes as set forth herein.

     G. For the compensation set forth herein, Lakes wishes to provide the
following services to Iowa Corp as more fully set forth herein: (1) consulting
services in connection with operations of the Project Facilities.

     H. Iowa Corp, the Iowa Tribe and Lakes intend that this Agreement shall be
operative and binding upon the date of execution by the parties ("Effective
Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Iowa Corp, the
Iowa Tribe and Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Agreement" means this Gaming Operations Consulting Agreement, as it may be
amended, supplemented, restated or replaced from time to time.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Gaming Facility; provided, however, unless the parties
otherwise agree, the term "Ancillary Facilities" shall not include any of the
Iowa Tribe's existing enterprises consisting of (1) fuel and retail sales made
at the existing "Iowa Mini Mart" located in Carney, OK on Hwy. 177, (2) "Perkins
Smoke Shop" located on West Freeman Ave. in Perkins, OK, or (3) "Bah-Kho-Je
Gallery and RV Park" located on Hwy. 33 in Perkins, OK currently operated by
Iowa Corp.


                                      -2-

<PAGE>

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Capital Expenditures" means any expenditure that is considered a capital
expenditure under GAAP.

     "Claim" means any dispute, claim, question, or disagreement between Iowa
Corp or the Iowa Tribe and Lakes or any Affiliate of Lakes that is directly or
indirectly related to this Agreement, any Iowa Corp Note or the Project
Facilities, whether arising under law or in equity, whether arising as a matter
of contract or a tort, and whether arising during or after the expiration of
this Agreement or the maturity of any Iowa Corp Note.

     "Class II Gaming" means class II gaming as defined in IGRA.

     "Class III Gaming" means class III gaming as defined in IGRA.

     "Collateral" is defined in Section 3.1(a).

     "Compact" means any Tribal-State Compact executed between the Iowa Tribe
and the State of Oklahoma entered into and approved by the United States
Secretary of the Interior either before or after the Effective Date of this
Agreement, and any amendments or modifications thereto.

     "Costs of Operations" means, with respect to any period of time occurring
on or after the Opening Date, the total of all costs required under GAAP to be
treated as operating expenses of the Gaming Facility, including but not limited
to the following (so long as they constitute such expenses):

          (a) all fees imposed upon the Gaming Facility by the NIGC;

          (b) all amounts required to be paid to the State pursuant to a Compact
     or all amounts required to be paid to any local governmental entity under
     any agreement to mitigate off-reservation impacts related to the Gaming
     Facility;

          (c) license or other fees for background investigations performed by
     the Gaming Commission of "key employees" and "primary management officials"
     of the Gaming Facility, as defined in 25 C.F.R. Section 502.14 and 25
     C.F.R. Section 502.19, less any amounts collected from employees for those
     fees, provided, however, such amounts allocable hereunder shall not exceed
     $25 per employee per any 12 month period (although the Gaming Commission
     may charge employees more for such licenses or fees); and reasonable and
     customary regulatory fees imposed on the Gaming Facility by the Gaming
     Commission (which amounts shall be subject to an annually approved budget
     submitted by the Gaming Commission).

          (d) depreciation and amortization expenses computed over reasonable
     periods permitted under GAAP and as further set forth below; and


                                      -3-

<PAGE>

          (e) to the extent properly allocable to the operation of the Gaming
     Facility under GAAP, the following:

               (1) costs of administration, recruiting, hiring, firing and
          training employees;

               (2) compensation and benefits of employees;

               (3) interest charges on indebtedness (including the Project
          Permanent Financing) related to the Gaming Facility; and

               (4) all other expenses, including, without limitation, those
          incurred for materials, supplies, inventory, utilities, repairs and
          maintenance (excluding Capital Expenditures), insurance and bonding,
          marketing, advertising, annual audits, accounting, legal or other
          professional and consulting, surveillance/security or guard services;

provided however, that "Costs of Operations" do not include repayment of
principal or Capital Expenditures or capital leases; and notwithstanding the
foregoing, for purposes of this definition of Costs of Operations, depreciation
for personal property shall be determined on a straight-line basis over a period
of seven (7) years from the date such property is placed in service, and
depreciation for real property, including improvements and buildings shall be
determined on a straight-line basis over a period of thirty (30) years.

     "Effective Date" means the date the parties execute this Agreement.

     "Equipment Contract" means any contract to finance or acquire equipment or
property for use in connection with the Project Facilities, whether constituting
or characterized as a loan or credit agreement, purchase agreement, financing
lease, capital lease, participating lease, license or otherwise.

     "Equipment Vendor" means any Person that sells, leases or licenses personal
property to Iowa Corp for use in connection with the Project Facilities.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project Facilities, including,
without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project Facilities for accessory purposes, including equipment for
     kitchens, laundries, dry


                                      -4-

<PAGE>

     cleaning, cocktail lounges, restaurants, public rooms, commercial and
     parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project Facilities); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project Facilities.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession.

     "Gaming Commission" means any tribal commission or body of the Iowa Tribe
that is lawfully performing the obligations and exercising the rights of the
tribal gaming regulatory agency established pursuant to the Iowa Tribe's Gaming
Ordinance.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming conducted at the Cimarron casino located
in Perkins, Oklahoma.

     "Gaming Operation" means a "gaming operation" as defined in NIGC
regulations, 25 C.F.R. Section 502.10.

     "Gaming Ordinance" means any valid gaming ordinance of the Iowa Tribe that
is in effect for purposes of and to the extent required by IGRA or the Compact.

     "Governmental Authority" means the United States, the BIA, the State, the
Iowa Tribe and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming or Class III Gaming at the
Gaming Facility, the construction of the Project Facilities, operation of the
Project Facilities, or Iowa Corp's, the Iowa Tribe's or Lakes' obligations under
this Agreement or any Iowa Corp Note.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Lakes" means Lakes Iowa Consulting, LLC, a Minnesota limited liability
company and a wholly-owned subsidiary of Lakes Gaming and Resorts, LLC.

     "Lakes Event of Default" is defined in Section 8.1.

     "Legal Requirements" means the Compact and all present and future federal,
State, Tribe and local laws, ordinances, rules, regulations, permits, licenses
and certificates, and any and all


                                      -5-

<PAGE>

present and future orders of courts and administrative bodies of competent
jurisdiction, applicable to the Project, the Project Facilities, this Agreement,
or any Iowa Corp Note.

     "Management Contact" means a management contract as defined in IGRA.

     "Material Breach" by any party means (a) a material failure of the party to
perform a material obligation under this Agreement for reasons not excused under
Section 13.5 (Force Majeure); or (b) any material representation or warranty
made by a party to this Agreement proves to be knowingly false or erroneous in
any material way when made or at any time shall fail to be true and correct in
all material respects.

     "Monthly Consulting Fixed Fee" means the compensation to Lakes as described
in Section 5.1 herein.

     "NIGC" means the National Indian Gaming Commission, established by IGRA.

     "Opening Date" means the first day on which the Gaming Facility is open to
the public for the conduct of Class II Gaming and/or Class III Gaming following
the Effective Date of this Agreement.

     "Iowa Corp Note or Iowa Corp Notes" are defined in Section 3.1(a).

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project Facilities" means the Gaming Facility and the Ancillary Facilities
in connection with the Project.

     "Proprietary Interest" means proprietary interest in a Gaming Operation
within the meaning of IGRA.

     "Revenues" means, with respect to the Project Facilities and any period of
time, all revenues of any nature derived directly or indirectly from the
operation of the Project Facilities and permitted under GAAP to be included in
the Project Facilities' total revenues for that period, less any credits or
refunds made to customers, guests, or patrons of the Project Facilities, not
considered a Cost of Operations and not applied in any prior period to reduce
Revenues. "Revenues" shall not include (i) any gratuities or service charges
added to the bill of a customer, guest or patron of the Project Facilities and
payable to employees of the Project Facilities, (ii) promotional allowances for
which there is not a direct offsetting item treated as a Cost of Operations,
(iii) any sales, excise, gross receipt, admission, entertainment, tourist or
other taxes or charges (or assessments equivalent thereto, or payments made in
lieu thereof) that are received from a customer, guest or patron and passed on
to governmental or quasi-governmental entities unrelated to the Iowa Corp, (iv)
any lawful federal, state, or local taxes or impositions (including any payment
or fee in lieu of the foregoing) that are collected from patrons of or vendors
to the Project Facilities, (v) proceeds of indebtedness of the Iowa Corp, and
(vi) proceeds from insurance or condemnation (other than proceeds of business
interruption insurance and other


                                      -6-

<PAGE>

proceeds received to reimburse the Project Facilities for any item accounted for
under GAAP as a Cost of Operations).

     "State" means the State of Oklahoma.

     "Term" of this Agreement is defined in Section 9.1.

     "Tribal Agreement" shall mean the agreement between the Iowa Tribe and
Lakes or its affiliates described in Section 6.2(n).

     "Tribal Event of Default" is defined in Section 8.3.

                                    ARTICLE 2
                    BUSINESS TURN-AROUND CONSULTING SERVICES

     Section 2.1 Project Facilities Operations Consulting. In connection with
operations of the Project Facilities, Lakes shall assist Iowa Corp in its
operations of the Project Facilities by providing consulting services to Iowa
Corp related to establishing and implementing improved and upgraded gaming and
ancillary systems in the following areas: making recommendations to Iowa Corp as
to: (a) general Gaming Operations, (b) electronic gaming device operations, (c)
table game operations if permitted, (d) cage, vault and count room operations,
(e) surveillance department operations, (f) security department operations, (g)
marketing and advertising, (h) food and beverage operations, (i) human
resources, (j) facilities and maintenance (including waste water treatment), (k)
finance, (l) information systems, (m) transportation and Project Facilities
access, and (n) other tribal economic development opportunities and strategies.
Lakes shall continue to provide the Project Facilities operations consulting
services as described above until either this Agreement expires or is properly
terminated. At all times, Iowa Corp shall have the sole proprietary interest in
and management responsibility for the conduct of all Gaming Operations conducted
at the Gaming Facility during the period Lakes is providing operations
consulting services under this Agreement.

     Section 2.2 Cooperative Efforts. Both parties to this Agreement shall
exercise their best efforts to fully cooperate with each other in the
performance of the operations consulting services to be rendered hereunder;
provided, however, that it shall be within the sole discretion of Iowa Corp to
determine whether or not to act upon or implement the technical assistance,
consultation or advice provided by Lakes.

     Section 2.3 No Management Services Provided. The parties expressly
acknowledge that this Agreement is for consulting services only and that Lakes
shall not engage in any management activities or perform any management services
hereunder with respect to the Project Facilities' operations. The parties
expressly acknowledge that the decision to adopt, approve or implement any
proposal, suggestion or recommendation made by Lakes in connection with its
operations consulting services shall rest exclusively with Iowa Corp.


                                      -7-

<PAGE>

     Section 2.4 Exclusive Right to Develop and Consult. Iowa Corp and the Iowa
Tribe hereby grant to Lakes the exclusive right to provide consulting services
(and to assist in the financing, development, construction, and equipping) in
connection with operations of any Class II Gaming and/or Class III Gaming
facility and any ancillary facilities enhancing such gaming facility operated by
Iowa Corp or the Iowa Tribe in Iowa Indian Country, including a hotel, any
convention center, food and beverage outlets, retail outlets, and any other
enterprise designed to promote, support, or enhance such gaming facility.

     Section 2.5 Equipment Contracts. Lakes will assist in the selection,
ordering, expediting, and installation of furniture, fixtures and equipment
required for the Project Facilities. Lakes shall propose to Iowa Corp for its
approval one or more contractors to provide equipment or personal property for
use in connection with operations of the Project Facilities, (the "Equipment
Contractor"). As soon as reasonably practical, Iowa Corp shall either approve or
reject each proposed Equipment Contractor. In the case of a rejection, the
process shall be repeated until Iowa Corp has approved a Equipment Contractor
proposed. Once the Equipment Contractor has been approved by Iowa Corp, Lakes
shall negotiate and propose to Iowa Corp for its approval one or more forms of
agreements for execution by Iowa Corp to engage the Equipment Contractor (the
"Equipment Contract").

                                    ARTICLE 3
                           BUSINESS IMPROVEMENTS LOAN

     Section 3.1 Business Improvements Loan. Subject to the terms and conditions
in this Article 3, Lakes shall make advances if needed from time to time to Iowa
Corp with respect to certain improvements to the Project Facilities designed to
assist business turn-around (collectively the "Business Improvements Loan") in
an amount to be agreed to by the parties, but not to exceed $1,000,000. Lakes
shall have no obligation to advance any funds under the Business Improvements
Loan in excess of the amount agreed to by the parties. Lakes' obligation to
advance funds to Iowa Corp under the Business Improvements Loan shall be subject
to each of the following requirements:

     (a)  All advances made pursuant to the Business Improvements Loan shall be
          evidenced by one or more promissory notes prepared by Lakes,
          substantially in the form attached as EXHIBIT A to this Agreement
          ("Iowa Corp Note"), in each case executed on behalf of Iowa Corp, and
          dated the date of the applicable loan (collectively the "Iowa Corp
          Notes"), to be payable from and secured by a pledge in (i) all
          Revenues from the Project Facilities or any other gaming project and
          any ancillary facilities related thereto owned directly or indirectly
          by Iowa Corp or the Iowa Tribe; (ii) the Furnishing and Equipment of
          the Project Facilities or any other gaming project and any ancillary
          facilities related thereto owned directly or indirectly by Iowa Corp
          or the Iowa Tribe; and (iii) any fee lands upon which the Project
          Facilities are located (collectively, the "Collateral"). In no event
          shall Lakes have recourse to Revenue distributions already received by
          Iowa Corp from


                                      -8-

<PAGE>

          the Project Facilities and made to the Iowa Tribe in accordance with
          this Agreement and/or any applicable dominion account agreement.

     (b)  If the principal amount of the Iowa Corp Note is exceeded by any
          pending advance on the Business Improvements Loan, prior to such
          advance being made and prior to Lakes having any obligation to fund
          such advance, Iowa Corp shall execute and deliver to Lakes either (i)
          an amendment to such Iowa Corp Note, increasing the principal amount
          of the note by an amount at least equal to the pending advance, or
          (ii) an additional Iowa Corp Note with a principal amount at least
          equal to the principal amount of the pending advance, as determined by
          Lakes.

     (c)  Amounts advanced from time to time as part of the Project Preliminary
          Development Loan shall bear interest, from the date of advance, at the
          greater of either the prime interest rate of Chase Manhattan Bank
          U.S.A., N.A. (or any successor bank) plus two percent (2%).

     (d)  Unless otherwise agreed by the parties in writing, all principal and
          interest accrued on each Business Improvements Loan shall become due
          and payable in twenty-four (24) equal monthly installments beginning
          on the 25th day following twelve (12) months after the date the first
          loan advance is made (the "Maturity Date"), which payments shall be
          adjusted from time to time as necessary to fully repay all principal,
          plus accrued interest thereon, by the Maturity Date. Notwithstanding
          the foregoing, the Project Preliminary Development Loan shall become
          due and owing in its entirety upon (i) the occurrence of a Tribal
          Event of Default under Section 8.3, which default is either incapable
          of cure or has not been cured within the time period set forth in
          Section 8.4, or (ii) termination of this Agreement under Section 9.3.

     (e)  The Business Improvements Loan may be prepaid without penalty by Iowa
          Corp at any time, in whole or in part, together with accrued and
          unpaid interest thereon.

     (f)  No amounts shall be loaned under the Business Improvements Loan in
          excess of the amount agreed to by the parties, unless Lakes in its
          sole discretion agrees to advance such funds.

     (g)  The Business Improvements Loan, together with interest thereon, shall
          be payable from and secured by a pledge of the Collateral.

          To that end, Iowa Corp and the Iowa Tribe hereby pledge and grant a
          security interest in the Collateral to Lakes to secure their
          obligations under this Agreement and under the Iowa Corp Notes,
          further agrees to entered into standard and customary dominion account
          agreements/security agreements/mortgages or deeds of trust necessary
          to evidence and effectuate such liens, and authorize Lakes to file
          those financing statements and similar documents and agreements as
          Lakes may believe appropriate to perfect such liens.


                                      -9-

<PAGE>

     (i)  Notwithstanding anything to the contrary in this Article 3, Lakes
          shall not be obligated to fund any advances on the Business
          Improvements Loan after the earliest of:

          (i)  the second anniversary of the first advance under the Business
               Improvements Loan;

          (ii) the failure of Iowa Corp or the Iowa Tribe to cure, within the
               time prescribed in this Agreement, any default under this
               Agreement, any Iowa Corp Note, or related documents or agreements
               for which Iowa Corp or the Iowa Tribe receives written notice;

          (iii) sixty (60) days after written notice by Lakes that a reasonable
               basis exists for concluding that this Agreement, the development
               of the Project, or the operation of the Gaming Facility is not
               lawful;

          (iv) any determination by Lakes that a reasonable basis exists for
               concluding that any material terms of this Agreement or the Iowa
               Corp Notes are not valid or binding obligations of Iowa Corp or
               the Iowa Tribe;

          (v)  any reasonable determination by Lakes (which may be based on the
               advice of legal counsel) that any representations contained in
               Section 6.2 are not true and correct; and

          (vi) the commencement of any litigation which, in the reasonable
               determination of Lakes, has a reasonable likelihood of preventing
               operations of the Project Facilities for more than three (3)
               months after the Effective Date of this Agreement.

                                    ARTICLE 4
                       CONDITIONS PRECEDENT TO OBLIGATIONS

     Section 4.1 Conditions Precedent to First Advance of Business Improvements
Loan or to Perform any Obligations. Notwithstanding Sections 2.1 or 3.1, Lakes
is not required to make any advance under the Business Improvements Loan or
perform any obligations under this Agreement until Lakes receives each of the
following in form and substance reasonably satisfactory to Lakes:

     (a)  copy of tribal laws in a form sufficient as determined by Lakes to
          perfect the security interests and liens granted to it under Section
          3.1;

     (b)  copy of one or more resolutions of the governing bodies of Iowa Corp
          and the Iowa Tribe authorizing and ratifying the adoption, or the
          execution, delivery and performance by the Iowa Tribe, or Iowa Corp,
          as applicable, of (i) the Compact (if in effect), (ii) the Gaming
          Ordinance, (iii) this Agreement, and (iv) the Iowa Corp Notes and
          related documents and security instruments;


                                      -10-

<PAGE>

     (c)  original of any license(s) required by any Government Authority for
          the Lakes services (as described in this Agreement) in connection with
          the operations of the Project Facilities;

     (d)  an opinion of an attorney for Iowa Corp in form reasonably
          satisfactory to Lakes to the effect that (i) this Agreement, the Iowa
          Corp Notes, and any security instruments to be executed by Iowa Corp
          or the Iowa Tribe in connection with this Agreement will be valid,
          binding and perfected obligations of Iowa Corp and the Iowa Tribe,
          enforceable in accordance with their terms, (ii) the Iowa Tribe is an
          Indian tribe within the meaning of IGRA, (iii) each of the actions of
          Iowa Tribe, or Iowa Corp, as applicable, referred to above in this
          Section have been validly taken by that entity and is in full force
          and effect, (iv) the Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements, (v) the site for the Gaming
          Facility constitutes "Indian lands" upon which the Iowa Tribe may
          legally conduct gaming under IGRA, and (vi) the Iowa Tribe has entered
          into an agreement with Lakes or its Affiliate that confirms all gaming
          and related project facilities of the Iowa Tribe will be owned and
          operated by Iowa Corp or another subsidiary of the Iowa Tribe, grants
          Lakes or its Affiliate the right to participate in any gaming projects
          owned and operated by Iowa Corp or another subsidiary of the Iowa
          Tribe under the same terms and conditions described in this Agreement
          unless otherwise agreed to in writing by the parties, and contains
          representations, warranties and covenants substantially similar to
          those contained in Articles 6 and 7 hereof insofar as applicable, and
          with respect to such agreement, the same constitutes the valid,
          binding and enforceable obligations of the Iowa Tribe, enforceable in
          accordance with their terms.

     (e)  a letter from the NIGC determining that the site for the Gaming
          Facility constitutes "Indian lands" upon which the Iowa Tribe may
          legally conduct gaming under IGRA.

                                    ARTICLE 5
                      COMPENSATION FOR CONSULTING SERVICES

     Section 5.1 Section 5.1 Consulting Services Compensation. For its services
under this Agreement, Lakes shall receive a fee equal to a flat fee of $50,000
per month for one hundred twenty (120) months in accordance with the payment
terms described in Section 5.2 below ("Monthly Consulting Fixed Fee")

     Section 5.2 Terms of Payment. The Monthly Consulting Fixed Fee shall be due
and paid commencing on the 25th day of the following calendar month after the
effective Date of this Agreement, and become due and payable on the 25th day of
each successive month.


                                      -11-

<PAGE>

     Section 5.3 Consulting Fee Security. To secure payment of the Monthly
Consulting Fixed Fee, Iowa Corp and the Iowa Tribe hereby pledge and grant a
security interest in all Collateral to Lakes to secure Iowa Corp's and the Iowa
Tribe's obligations under this Agreement in connection with payment of the
Monthly Consulting Fixed Fee, further agree to enter into standard and customary
dominion account agreements/security agreements/mortgages or deeds of trust
necessary to evidence and effectuate such liens, and authorize Lakes to file
those financing statements and similar documents and agreements as Lakes may
believes appropriate to perfect such liens.

                                    ARTICLE 6
                         REPRESENTATIONS AND WARRANTIES

     Section 6.1 Representations and Warranties of Lakes. Lakes represents and
warrants to Iowa Corp that:

     (a)  Organization. Lakes is a limited liability company duly formed and
          validly existing under the laws of the State of Minnesota.

     (b)  Authority. Lakes has the full legal right and authority to enter into
          this Agreement, to perform its obligations under this Agreement, and
          to consummate all other transactions contemplated by this Agreement.

     (c)  Binding Obligation. This Agreement has been duly executed and
          delivered by Lakes and constitutes a legal, valid and binding
          obligation of Lakes, enforceable against Lakes in accordance with its
          terms, except as enforceability may be limited by future bankruptcy,
          insolvency or similar proceedings, limitations on rights of creditors
          generally and principles of equity, and assuming such agreements are
          binding against the other parties thereto.

     (d)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Lakes,
          threatened against Lakes, its Affiliates, or any of its assets or
          properties that could have a material adverse effect on its ability to
          enter into or perform this Agreement.

     (e)  No Violation or Conflict. The execution, delivery and performance by
          Lakes of this Agreement does not violate any Legal Requirement
          applicable to Lakes, other than a violation that shall not materially
          adversely affect the Project or Iowa Corps obligations or rights under
          this Agreement. The execution, delivery and performance of this
          Agreement does not conflict with or result in any breach of any
          provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon any asset of Lakes under, or
          result in the acceleration of any obligation under the terms of any
          agreement or document binding upon Lakes, other than a conflict,
          breach, default or imposition that shall not materially


                                      -12-

<PAGE>

          adversely affect the Project or Iowa Corp's obligations or rights
          under this Agreement.

     (f)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Lakes is required
          for Lakes to execute, deliver and perform its obligations hereunder;
          provided that Lakes makes no representation or warranty with respect
          to any consent that may be required by the Gaming Commission, the Iowa
          Tribe, Iowa Corp, the NIGC or the BIA.

     (g)  Full Disclosure. No representation or warranty of Lakes in this
          Agreement and no report or statement delivered to Iowa Corp by or on
          behalf of Lakes, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading.

     (h)  Financial Capacity. Lakes has the financial capacity to finance any
          and all amounts necessary in order to comply with Lakes' commitment to
          provide the Business Improvements Loan under Article 3 hereof, and the
          provision of such financing will not result in Lakes becoming
          insolvent or otherwise being unable to pay its debts as they become
          due.

     (i)  Brokers' Fees and Other Fees and Expenses. Except for the letter
          agreement dated August 20, 2004 with Kevin Kean and the definitive
          consulting agreement to be negotiated and executed as contemplated
          thereunder, neither Lakes nor any of its Affiliates has as of the
          Effective Date of this Agreement engaged, nor has any liability or
          obligation to pay any fees, commissions or expenses with respect to,
          any broker, finder or agent, investment banker, or any similar advisor
          or services provider, with respect to or in connection with the
          transactions contemplated by this Agreement for which Lakes or its
          Affiliates could become liable or obligated, and neither Iowa Corp nor
          any of its Affiliates has any liability or obligation to pay any of
          such amounts.

     Section 6.2 Representations and Warranties by Iowa Corp and the Iowa Tribe.
Iowa Corp and the Iowa Tribe represent and warrant to Lakes that:

     (a)  Organization. Iowa Corp is a federally-chartered corporation, created
          pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
          1936 (49 Stat. 1967), whose federal charter was issued on January 4,
          1938 by the Secretary of the Interior and ratified by the Iowa Tribe
          on February 5, 1938; and the Iowa Tribe is a federally recognized
          Indian Tribe duly organized under the Constitution and laws of the
          Iowa Tribe and the United States, and is eligible to conduct gaming
          within the meaning of IGRA.

     (b)  Authority and Power. Iowa Corp and the Iowa Tribe have taken all
          action required by tribal law without the necessity of further action
          to authorize the execution, delivery and performance of this
          Agreement, all Iowa Corp Notes and


                                      -13-

<PAGE>

          related security documents and instruments described herein (to the
          extent a party thereto). Iowa Corp and the Iowa Tribe, to the extent a
          party thereto, have all requisite power and authority to enter into
          this Agreement, all Iowa Corp Notes, and related security documents
          and instruments described herein and to perform their obligations
          under this Agreement, all Iowa Corp Notes, and related security
          documents and instruments described herein, and to consummate all
          other transactions contemplated by this Agreement, the Iowa Corp Notes
          and related security documents and instruments described herein.

     (c)  Binding Obligations. Each of this Agreement (including but not limited
          to, the waiver of sovereign immunity in Article 10), the Iowa Corp
          Notes and related security documents and instruments described herein
          has been duly executed and delivered by Iowa Corp and the Iowa tribe
          and is a legal, valid, binding and perfected obligation of Iowa Corp
          and the Iowa Tribe, to the extent a party thereto, enforceable against
          Iowa Corp and the Iowa Tribe in accordance with its terms, except as
          enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The site for the Gaming Facility constitutes
          "Indian lands" upon which the Iowa Tribe may legally conduct gaming
          under IGRA.

     (e)  Gaming Permitted. The Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Iowa Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Iowa Tribe. Iowa Corp will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          the Iowa Corp in connection with this Agreement to the extent set
          forth in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes to enter into this
          Agreement and perform its obligations under this Agreement have been
          granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Iowa Corp or the Iowa Tribe or affecting either the site of
          the Gaming Facility or the Project Facilities, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect the Project Facilities
          or Lake's obligations or rights under this Agreement, any Iowa Corp
          Note and related security documents and instruments described herein.


                                      -14-

<PAGE>

     (i)  No Violation or Conflict. The execution, delivery and performance by
          Iowa Corp and the Iowa Tribe of this Agreement, any Iowa Corp Note and
          related security documents and instruments described herein does not
          violate any Legal Requirements. The execution, delivery and
          performance of this Agreement, any Iowa Corp Note and related security
          documents and instruments described herein by Iowa Corp or the Iowa
          Tribe does not conflict with or result in any breach of any provision
          of, or constitute a default under, or result in the imposition of any
          lien or charge upon any asset of Iowa Corp under, or result in the
          acceleration of any obligation under the terms of any agreement or
          document binding upon Iowa Corp, other than a conflict, breach,
          default or imposition as shall not materially adversely affect the
          Project Facilities or Lake's obligations or rights under this
          Agreement, any Iowa Corp Note and related security documents and
          instruments described herein.

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Iowa
          Corp or the Iowa Tribe, threatened, against Iowa Corp or the Iowa
          Tribe, or any of the assets or properties of Iowa Corp, that could
          have a material adverse effect on the Project Facilities, Iowa Corp's
          ability to enter into or perform this Agreement or Lakes' obligations
          or rights under this Agreement, any Iowa Corp Note and related
          security documents and instruments described herein.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Iowa Corp or the
          Iowa Tribe is required to execute, deliver and perform its obligations
          hereunder.

     (l)  Full Disclosure. No representation or warranty of Iowa Corp or the
          Iowa Tribe in this Agreement and no report or statement delivered to
          Lakes by or on behalf of Iowa Corp or the Iowa Tribe, contains any
          untrue statement or omits to state a material fact necessary to make
          any such representation, warranty, report or statement, in light of
          the circumstances in which they were made, not misleading. Iowa Corp
          and the Iowa Tribe have fully disclosed the existence and terms of all
          material agreements and Legal Requirements, written or oral, relating
          to the Project Facilities.

     (m)  No Tribal Tax. Neither the Project, the Project Facilities nor the
          transaction(s) between the parties contemplated by this Agreement, the
          Iowa Corp Notes, and any related security documents and instruments
          described herein are now, or at any time during the term of this
          Agreement will be, subject to any tribal tax of any sort other than
          (i) reasonable pass-through taxes on Project patrons which are
          consistent with gaming resort industry practices, and (ii) the fees
          and assessments described in clause (c) of the definition of "Costs of
          Operations."

     (n)  Tribal Agreement. The Iowa Tribe has entered into an agreement with
          Lakes or its Affiliate which (i) confirms that all gaming and related
          project facilities of the Iowa Tribe will be owned and operated by
          Iowa Corp or another subsidiary of the Iowa Tribe, (ii) grants Lakes
          or its Affiliate the right to participate in any gaming projects owned
          and operated by Iowa Corp or another subsidiary of


                                      -15-

<PAGE>

          the Iowa Tribe under the same terms and conditions described in this
          Agreement, and (iii) contains representations, warranties and
          covenants substantially similar to those contained in Articles 6 and 7
          hereof, insofar as applicable, and with respect to such agreement, the
          same constitutes valid, binding and enforceable obligations of Iowa
          Tribe, enforceable in accordance with their terms.

                                    ARTICLE 7
                                    COVENANTS

     Section 7.1 Covenants of Lakes. Lakes covenants and agrees as follows:

          (a)  Additional Documents. Lakes shall execute any additional
               instruments as may be reasonably required by Iowa Corp to carry
               out the intent of this Agreement or to perfect or give further
               assurances of any of the rights granted or provided for under
               this Agreement.

     Section 7.2 Covenants of Iowa Corp and the Iowa Tribe. Iowa Corp and the
Iowa Tribe covenant and agree as follows:

          (a)  Additional Documents. Iowa Corp and the Iowa Tribe shall execute
               any additional instruments as may be reasonably required by Lakes
               to carry out the intent of this Agreement or to perfect or give
               further assurance of any of the rights granted or provided for
               under this Agreement or any Iowa Corp Note, including execution
               of the related security documents and instruments described
               herein.

          (b)  Non-Impairment. Neither Iowa Corp nor the Iowa Tribe shall enact
               any law, ordinance, rule or regulation impairing the rights or
               obligations of the parties under this Agreement or under any
               related contracts entered into by Iowa Corp or impairing the
               rights and obligations of Lakes in furtherance of equipping or
               operations of the Project Facilities, including but not limited
               to this Agreement and any contract or agreement entered into or
               contemplated by this Agreement.

          (c)  Records. Iowa Corp shall maintain or cause to be maintained full
               and accurate accounts and records for the Project and its Project
               Facilities according to GAAP.

          (d)  No Liens. Unless Lakes otherwise consents in writing, neither
               Iowa Corp nor the Iowa Tribe shall cause or voluntarily permit
               any lien or encumbrance to be created on the Project Facilities,
               the site for the Gaming Facility or any proceeds of the Business
               Improvements Loan.


                                      -16-

<PAGE>

          (e)  No Tax. Neither Iowa Corp nor the Iowa Tribe shall impose any
               tax, fee or assessment on Lakes, any Contractor, the Project
               Facilities, this Agreement, the Iowa Corp Notes, and any related
               security documents and instruments described herein other than
               (i) reasonable pass-through taxes on Project patrons which are
               consistent with gaming resort industry practices, and (ii) the
               fees and assessments described in clause (c) of the definition of
               "Costs of Operations."

                                    ARTICLE 8
                                EVENTS OF DEFAULT

     Section 8.1 Events of Default by Lakes. Each of the following occurring
prior the date on which the Project has been substantially completed shall
constitute a "Lakes Event of Default":

     (a)  A Material Breach by Lakes.

     (b)  Lakes violates any of the covenants in Section 7.1 of this Agreement,
          and sixty (60) days have passed following a request by Iowa Corp to
          Lakes to cure the violation, during which the violation has not been
          cured.

     (c)  Subject to Section 8.3, any license, permit or approval required to be
          received or maintained by Lakes to perform its obligations under this
          Agreement is denied, suspended, or revoked by proper and reasonable
          action of any state or federal Governmental Authority, and all rights
          to appeal or review the action have been exhausted.

     (d)  Lakes or any Affiliate of Lakes material to the Project Facilities
          has: (i) filed for relief under the United States Bankruptcy Code or
          has suffered the filing of an involuntary petition under the
          Bankruptcy Code that is not dismissed within sixty (60) days after
          filing; (ii) a receiver appointed to take possession of all or
          substantially all of the property of Lakes or any Affiliate of Lakes
          material to the Project Facilities; or (iii) suffered an assignment
          for the benefit of creditors.

     Section 8.2 Cure of Lakes Default. Upon the occurrence of a Lakes Event of
Default, Iowa Corp may provide written notice to Lakes of Iowa Corp's intention
to terminate this Agreement and, if it is possible for Lakes to cure the Lakes
Event of Default, Lakes shall have thirty (30) days following receipt of the
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Lakes shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
The discontinuance or correction of a Lakes Event of Default shall constitute a
cure thereof. If Lakes fails to cure the Lakes Event of Default within


                                      -17-

<PAGE>

the 30-day period, Iowa Corp may: (a) suspend all performance of Iowa Corp under
this Agreement; (b) terminate this Agreement under Section 9.4; or (c) pursue
any other remedy available at law or in equity, subject to the provisions of
Section 10.1.

     Section 8.3 Events of Default by Iowa Corp or the Iowa Tribe. Each of the
following shall constitute a "Tribal Event of Default":

     (a)  (i) a Material Breach by Iowa Corp or the Iowa Tribe exists; or (ii)
          an "Event of Default" by Iowa Corp or the Iowa Tribe exists under the
          Iowa Corp Note, security agreement, dominion account agreement,
          mortgage or other document or instrument in favor of Lakes or its
          Affiliates and related thereto or this Agreement; or (iii) the Iowa
          Tribe shall be in default of any agreement now or hereafter executed
          by it in favor of Lakes or its Affiliates.

     (b)  The Gaming Commission or any other applicable governmental authority
          of the Iowa Tribe, in bad faith, without due process or unreasonably,
          denies, revokes, fails to renew or otherwise impairs any license,
          permit or approval required for Lakes or any Affiliate of Lakes to
          perform its obligations or enjoy its rights under this Agreement.

     (c)  Iowa Corp or the Iowa Tribe violate any of the covenants in Section
          7.2 of this Agreement, and after sixty (60) days have passed following
          a request by Lakes to Iowa Corp or the Iowa Tribe to cure the
          violation, during which the violation has not been cured.

     (d)  Iowa Corp or any Affiliate of Iowa Corp material to the Project
          Facilities has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of Iowa Corp's property; or (iii) suffered an
          assignment for the benefit of creditors.

     (e)  The Compact (if in effect) is determined by any court of competent
          jurisdiction to be invalid and such determination becomes final and
          non-appealable.

     (f)  The Iowa Tribe is no longer an Indian tribe eligible to conduct gaming
          within the meaning of IGRA.

     (g)  Any order or judgment of any court of competent jurisdiction enjoins
          the operations of the Project Facilities in any material manner, and
          the injunction continues for thirty (30) days.


                                      -18-

<PAGE>

     Section 8.4 Cure of Tribal Event Default. Upon the occurrence of a Tribal
Event of Default, Lakes may provide written notice to Iowa Corp or the Iowa
Tribe of such default and, if it is possible for Iowa Corp or Iowa Tribe to cure
the Tribal Event of Default, Iowa Corp or the Iowa Tribe shall have thirty (30)
days following receipt of notice to effect a cure; provided, however, that if
the nature of such breach (but specifically excluding breaches curable by the
payment of money) is such that it is not possible to cure such breach within
thirty (30) days, such thirty-day period shall be extended for so long as Iowa
Corp or the Iowa Tribe shall be using diligent efforts to effect a cure thereof
but no more than an additional sixty (60) days. Upon the occurrence of any of
the events described in Section 10.3 and during any applicable cure period,
Lakes may suspend its performance under this Agreement. The discontinuance or
correction of a Tribal Event of Default shall constitute a cure thereof. If Iowa
Corp or the Iowa Tribe fails to cure the Tribal Event of Default within the
30-day period, Lakes may take any one or more of the following actions: (a)
suspend all performance of Lakes under this Agreement; (b) declare all principal
and interest accrued on all Iowa Corp Notes and any Project Development Fees to
be immediately due and owing, (c) terminate this Agreement under Section 9.3; or
(d) pursue any other remedy available by agreement, at law or in equity, subject
to the provisions of Section 10.1.

                                    ARTICLE 9
                                TERM OF AGREEMENT

     Section 9.1 Term. This Agreement shall become effective and binding upon
the parties on the Effective Date, and shall continue in effect for twelve (12)
years from the Effective Date or until the Monthly Consulting Fixed Fees and the
Business Improvements Loan applicable hereunder have been fully paid, whichever
date is later, subject to earlier termination as provided in Article 8 or this
Article; provided that (a) all rights of any party to assert a Claim against the
other shall survive the termination of this Agreement, and (b) all provisions of
Article 10 and Article 11 shall survive a termination.

     Section 9.2 Mutual Termination. This Agreement may be terminated at any
time by the mutual written consent of the parties.

     Section 9.3 Termination by Lakes. This Agreement may be terminated upon
notice by Lakes to Iowa Corp and the Iowa Tribe if an uncured Tribal Event of
Default exists under Section 8.3 and all applicable grace and cure periods have
expired.

     Section 9.4 Termination by Iowa Corp. This Agreement may be terminated upon
notice by Iowa Corp to Lakes if an uncured Lakes Event of Default exists under
Section 8.1 and all applicable grace and cure periods have expired.

     Section 9.5 Buy-out Option. Following sixty (60) months of continuous
operation of the Gaming Facility's gaming operations following the Effective
Date of this Agreement, Iowa Corp shall have the option to buy out the Lakes'
remaining rights under this Agreement for an amount equal to the present value,
using a discount rate which is the greater of either two percent


                                      -19-

<PAGE>

(2%) above the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or any
successor bank) at the time the buy-out option is exercised of the Remaining
Consulting Fees (as hereinafter defined). The term "Remaining Consulting Fees"
shall mean the total Monthly Consulting Fixed Fees which would have been payable
to Lakes for the Project under Section 5.1 hereof for the balance of the term of
this Agreement.

                                   ARTICLE 10
DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT JURISDICTION;
                                  GOVERNING LAW

     Section 10.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to the parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by a
          party to the other parties, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality. Iowa Corp and the Iowa Tribe further agree that any
          arbitration proceeding held in connection with any Claim may be
          consolidated with any other arbitration proceeding involving Lakes or
          its Affiliates and any of Iowa Corp's Affiliates.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of


                                      -20-

<PAGE>

          award form and amount. Except to the extent such enforcement will be
          inconsistent with a specific provision of this Agreement, arbitration
          awards made pursuant to this Article 12 shall be enforceable in
          federal court under Title 9 of the United States Code and any
          applicable tribal, federal or state law governing the enforcement of
          arbitration awards. In addition to any basis for appeal of an
          arbitration award stated in Title 9 of the United States Code or any
          applicable law governing the enforcement of arbitration awards, any
          party hereto may appeal an arbitration award on the basis that the
          arbitrators incorrectly decided a question of law in making the award,
          or the award was made in an arbitrary or capricious manner or in
          manifest disregard of the factual evidence.

     (d)  Each party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  Iowa Corp and the Iowa Tribe hereby expressly waive, and also waive
          its right to assert, sovereign immunity and any and all defenses based
          thereon with respect to any Claims; and Iowa Corp and the Iowa Tribe
          hereby consent to (i) binding arbitration under the Commercial
          Arbitration Rules of the American Arbitration Association, (ii)
          empowering the arbitrators to take the actions and enforce the
          judicial remedies described in paragraph 5 of the Resolution of
          Limited Waiver of Sovereign Immunity dated January 27, 2005 issued by
          Iowa Corp and the Iowa Tribe in connection with the execution of this
          Agreement, and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, Iowa Corp and
          the Iowa Tribe expressly waive the application of the doctrines of
          exhaustion of tribal remedies or comity that might otherwise require
          that Claims be heard first in tribal court or other tribal forum of
          the Iowa Tribe. The waivers set forth herein only extend to claims or
          proceedings brought by Lakes and any award of damages against Iowa
          Corp or the Iowa Tribe shall be payable solely out of the Collateral.

     Section 10.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.


                                      -21-

<PAGE>

                                   ARTICLE 11
                                  MISCELLANEOUS

     Section 11.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes may assign this Agreement
to a wholly owned subsidiary without Iowa Corp's or the Iowa Tribe's consent;
provided further that Lakes shall remain obligated for the performance of the
Lakes subsidiary hereunder. Other than as expressly provided in this Section
11.1, any attempted assignment or subcontracting without prior written consent
shall be void. Subject to the preceding requirements, this Agreement is binding
upon and inures to the benefit of the parties and their respective successors
and assigns.

     Section 11.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:

     If to Iowa Corp:        Iowa Tribe of Oklahoma
                             a federally-chartered corporation
                             RR 1, P.O. Box 721
                             Perkins, OK 74059
                             Attn: Chairman

     With a Copy to:         David McCullough, Esq.
                             Doerner, Saunders, Daniel & Anderson, L.L.P.
                             211 N. Robinson Ave. Suite 501
                             Oklahoma City, OK 73102-7112
                             (copy to counsel does not constitute notice to a
                             party)

     If to the Iowa Tribe:   The Iowa Tribe of Oklahoma
                             A federally recognized Indian tribe
                             RR 1, P.O. Box 721
                             Perkins, OK 74059
                             Attn: Chairman

     With a Copy to:         David McCullough, Esq.
                             Doerner, Saunders, Daniel & Anderson, L.L.P.
                             211 N. Robinson Ave. Suite 501
                             Oklahoma City, OK 73102-7112
                             (copy to counsel does not constitute notice to a
                             party)


                                      -22-

<PAGE>

     If to Lakes:            Lakes Iowa Consulting, LLC
                             130 Cheshire Lane
                             Minnetonka, MN 55305
                             Attn: Timothy J. Cope

     With a Copy to:         Kevin C. Quigley, Esq.
                             Hamilton Quigley Twait & Foley PLC
                             W1450 First National bank Building
                             332 Minnesota Street
                             St. Paul, MN 55101-1314

          and                Brian J. Klein, Esq.
                             Maslon, Edelman, Borman & Brand, LLP
                             3300 Wells Fargo Center
                             90 South Seventh Street
                             Minneapolis, MN 55402-4140
                             (copy to counsel does not constitute notice to a
                             party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 11.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 11.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 11.5 Force Majeure. No party shall be in default in the performance
due under this Agreement if that failure of performance is due to causes beyond
its reasonable control, including but not limited to acts of God, war,
terrorism, fires, floods, or accidents causing material damage to or destruction
of the Project Facilities.

     Section 11.6 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 11.7 Entire Agreement. This Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all
provisions of any prior agreements between the parties relating to the equipping
and operations of the Project Facilities, and any other matter addressed in this
Agreement; but shall specifically exclude any agreement related to the
management of the Project Facilities.

     Section 11.8 Indemnification by Lakes. Lakes shall indemnify Iowa Corp and
it's agents, enrolled members, officers, employees, consultants, and attorneys
(each a "Iowa Corp


                                      -23-

<PAGE>

Indemnitee") from and against any and all damages, claims, losses or expenses of
whatever kind or nature, including attorneys' fees and expenses incurred in
defending those claims, losses or expenses, to the extent they result from the
gross negligence or willful misconduct of Lakes with respect to (a) the Project
Facilities or (b) non-performance of any of Lake's obligations under this
Agreement. Lakes shall have the sole right to control the defense and settlement
of any matter in which indemnification is required of Lakes, and shall pay its
attorneys' fees, provided that, with respect to those matters, Lakes shall not
be responsible for the attorneys' fees of attorneys hired by the Iowa Corp
Indemnitee.

     Section 11.9 Indemnification by Iowa Corp and the Iowa Tribe. Iowa Corp and
the Iowa Tribe shall immediately indemnify Lakes and its Affiliates, agents,
officers, employees, consultants, and attorneys ( each a "Lakes Indemnitee")
from and against any and all damages, claims, losses or expenses of whatever
kind or nature, including attorneys' fees and expenses as and when incurred in
defending those claims, losses or expenses, to the extent they result from (a)
the gross negligence or willful misconduct of Iowa Corp, the Iowa Tribe with
respect to (i) the Project Facilities or (ii) the performance or non-performance
of Iowa Corp's, the Iowa Tribe's obligations under this Agreement, or (b) the
performance by Lakes of any of its obligations under this Agreement but
excluding any claims, loss or expense arising from the gross negligence or
willful misconduct of Lakes. Iowa Corp and Lakes shall consult and agree on the
defense and settlement of any matter in which indemnification is required of
Iowa Corp or the Iowa Tribe, Lakes shall have the right to retain its separate
counsel to advise it thereon (but such counsel shall be at Lakes' own expense),
and upon the occurrence of any such claim, the parties shall enter into a
mutually acceptable agreement providing for the procedures by which any such
claims shall be prosecuted and related costs and expenses shall be reimbursed.
Lakes shall be listed as an additional insured on all insurance policies with
respect to any Project. Iowa Corp and the Iowa Tribe further agree to indemnify
and hold each Lakes Indemnittee harmless from any and all liabilities, claims,
losses and expenses arising from any prior agreements entered into by Iowa Corp
or the Iowa Tribe with any Persons or entities in connection with development,
construction and/or operation of the Project Facilities.

     Section 11.10 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 11.11 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 11.12 Cooperation; Approvals. Each of the parties agrees to
cooperate in good faith with the other to timely implement the purposes of this
Agreement. Any consents or approvals required to be given in connection with
this Agreement shall not be unreasonably withheld or delayed by the parties or
their Affiliates.

     Section 11.14 No Management Contract or Grant of Proprietary Interest. The
parties agree that it is their intent that neither this Agreement nor any of the
Iowa Corp Notes or and related security documents and instruments described
herein (individually or collectively) constitute a "Management Contract" within
the meaning of IGRA. Upon the Effective Date, the parties shall submit this
Agreement to the NIGC for review and determination that it is not a


                                      -24-

<PAGE>

Management Contract and therefore does not require the approval of the NIGC in
order to be valid, regardless of whether it constitutes a "collateral agreement"
as that term is defined in IGRA. Each party shall use its best efforts to pursue
such determination and timely execute, deliver, and if necessary, record any and
all additional instruments, certifications, and other documents as may be
required by the NIGC in order to issue such determination; provided that such
required instrument or other document shall not materially change the respective
rights, remedies or obligations of the parties under this Agreement. If the NIGC
finds that this Agreement does constitute a Management Contract within the
meaning of IGRA, then the parties shall immediately take all necessary steps to
amend or modify the Agreement in a way that preserves the economic benefits of
the transactions to both parties without constituting a Management Contract.

     Section 11.15 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to the Project Facilities shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project Facilities.

                            [Signature Page Follows]


                                      -25-

<PAGE>

     The parties have executed this Gaming Operations Consulting Agreement as of
the date stated in the introductory clause.

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier Jr.
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        IOWA TRIBE OF OKLAHOMA
                                        a federally recognized Indian tribe


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier Jr.
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------

        [Signature Page to Iowa Gaming Operations Consulting Agreement -
                                Cimarron Casino]


                                       26

<PAGE>

                                    EXHIBIT A
                             FORM OF IOWA CORP NOTE
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.123
<SEQUENCE>58
<FILENAME>c92713exv10w123.txt
<DESCRIPTION>IOWA CORP NOTE (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.123

                                 IOWA CORP NOTE
                                (CIMARRON CASINO)

                                                                  Minnetonka, MN
                                                                January 27, 2005

     FOR VALUE RECEIVED, IOWA TRIBE OF OKLAHOMA ("MAKER"), A FEDERALLY-CHARTERED
CORPORATION , CREATED PURSUANT TO SECTION 3 OF THE OKLAHOMA INDIAN WELFARE ACT
OF JUNE 26, 1936 (49 STAT. 1967), UNDER A FEDERAL CHARTER ISSUED TO THE IOWA
TRIBE OF OKLAHOMA ("IOWA TRIBE"), A FEDERALLY RECOGNIZED INDIAN TRIBE, promises
to pay to the order of LAKES IOWA CONSULTING, LLC, A MINNESOTA LIMITED LIABILITY
COMPANY ("LENDER"), in the United States of America, in immediately available
funds, at such place as the holder hereof may from time to time designate, or in
the absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the aggregate unpaid principal amount of all
advances made to Maker pursuant to the "Business Improvements Loan" as set forth
in Article 3 of the Gaming Operations Consulting Agreement for the Cimarron
Casino located in Perkins, Oklahoma dated January 27, 2005 between the parties
for the Cimarron Casino (the "Gaming Operations Consulting Agreement"), plus
interest thereon from the date of such advances, in like money, in accordance
with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Gaming Operations Consulting Agreement.

     2. Advances. Pursuant to the Gaming Operations Consulting Agreement, Lender
has agreed to extend the Business Improvements Loan to Maker, such funds to be
loaned in more than one advances (each, an "Advance") as entered on the Schedule
of Advances attached hereto as Schedule A. Each Advance shall bear interest at
the Interest Rate, as described herein, from and including the date the proceeds
of such Advance are advanced (such date the "Funding Date" of such Advance)
through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be limited to the Collateral as described in the
Gaming Operations Consulting Agreement. Commencing on the twenty-fifth (25th)
day following twelve (12) months after the date the first loan advance is made
(the "Maturity Date"), which payments shall be adjusted from time to time as
necessary to fully repay all principal, plus accrued interest thereon, by the
Maturity Date. , principal and interest on this Iowa Corp Note shall be paid in
twenty-four equal monthly installments. Maker shall have the right to prepay all
or any part of this Iowa Corp Note at any time without penalty or premium
provided any partial payment is at least $10,000 or an even multiple thereof,
but any such prepayment shall be applied to the installments of principal due
hereunder in the inverse order of maturity.

     4. Interest Rate. The Interest Rate means, as to each Advance, an interest
rate equal to the greater of the prime rate of Chase Manhattan Bank, N.A. (or
any successor Bank) plus two percent (2%), per annum in place at the time of the
advance, fixed as of the first business day of each


                                       -1-

<PAGE>

calendar month. Interest at the foregoing rate shall accrue and be compounded
annually and shall be payable solely from the Collateral as provided in Gaming
Operations Consulting Agreement. Interest shall be computed for the actual
number of days elapsed on the basis of a year consisting of 360 days. It is
intended that the rate of interest hereon shall never exceed the maximum rate,
if any, which may be legally charged on the Business Improvements Loan evidenced
by Iowa Note ("Maximum Rate"), and if the provisions for interest contained in
this Iowa Note would result in a rate higher than the Maximum Rate, interest
shall nevertheless be limited to the Maximum Rate and any amounts which may be
paid toward interest in excess of the Maximum Rate shall be applied to the
reduction of principal, or, at the lawfully exercised option of the Lender,
returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books and on Schedule A attached hereto all Advances made to the Maker and all
payments of principal amounts in respect of such Advances, which shall be
presumptive evidence as to the outstanding principal amount of all Advances;
provided, however, that the failure to make such notation with respect to any
Advance or payments shall not limit or otherwise affect the obligations of
Maker.

     6. Default; Acceleration. If any Event of Default occurs in the payment of
any principal, interest or any other sums when due hereunder, or in the
performance of any covenant or agreement hereunder, and such default continues
beyond any applicable notice, grace and/or cure period, then the outstanding
principal amount of the Business Improvements Loan, any interest accrued thereon
from time to time, and any other sums then remaining unpaid hereunder, at the
option of the holder hereof and without notice, shall become immediately due and
payable and Lender may exercise any other rights or remedies available under the
Gaming Operations Consulting Agreement or applicable law. Failure to exercise
any such option shall not constitute a waiver of the right to exercise the same
at a later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Iowa Corp Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts due hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project Facilities, and with respect to which (i) the
          creditor has accelerated the maturity of the indebtedness of Maker to
          such creditor, or (ii) the creditor has initiated action to collect
          such indebtedness; or

     (c)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or


                                       -2-

<PAGE>

     (d)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing; or

     (e)  Any representation or warranty given to the Lender by Maker (or any of
          its representatives) in connection with entering into the Gaming
          Operations Consulting Agreement and/or any borrowing thereunder, or
          given by an Affiliate of Maker in connection with any agreement
          executed by an Affiliate of Maker in favor of Lender or any Affiliate
          of Lender, or required to be furnished under the terms thereof, shall
          prove untrue or misleading in any material respect (as determined by
          Lender in the exercise of its reasonable judgment) as of the time when
          given or shall fail to be true and correct in all material respects at
          any time during the term of the agreement; or

     (f)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Gaming Operations Consulting Agreement or
          under any other agreement entered into with or in favor of Lender or
          any Affiliate of Lender, or default by Maker's Affiliate under any
          agreement executed by an Affiliate of Maker in favor of Lender or any
          Affiliate of Lender, which default is not cured by Maker or its
          Affiliate as applicable within the applicable cure period after
          written notice of default is delivered to Maker or its Affiliate; or

     (g)  The Gaming Operations Consulting Agreement shall be terminated by
          either the Maker or the Lender.

     7. Security. This Iowa Corp Note is secured by a security interest in the
Collateral granted by Maker to Lender pursuant to the Gaming Operations
Consulting Agreement, including standard and customary dominion account
agreements/security agreements/mortgages or deed of trust necessary to evidence
and perfect Lender's liens on such Collateral.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Iowa Corp Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Iowa Corp Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no


                                       -3-

<PAGE>

event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS IOWA CORP NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Iowa Corp Note.

     12. Applicable Law. This Iowa Corp Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Iowa Corp Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Iowa Note is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Iowa Corp Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this Iowa
Corp Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Iowa Corp Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Iowa Corp Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Iowa Corp Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Iowa Corp Note.

     16. Successors and Assigns. This Iowa Corp Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the


                                       -4-

<PAGE>

Lender shall be deemed to include and apply to every subsequent holder of this
Iowa Corp Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 11.2 of the Gaming Operations Consulting Agreement.

     18. Dispute Resolution Limited Waiver of Sovereign Immunity. Maker and
Lender agree that any dispute in connection with this Iowa Corp Note shall be
subject to the dispute resolution procedures and limited waiver of sovereign
immunity contained in Article 10 of the Gaming Operations Consulting Agreement,
the terms of which are incorporated by reference herein.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       -5-

<PAGE>

     IN WITNESS WHEREOF, Maker has caused this Iowa Corp Note to be executed and
delivered as of the date first above written.

                                        MAKER:

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Title: Secretary
                                               ---------------------------------

    [Signature Page to Iowa Corp Note in favor of Lakes Iowa Consulting, LLC]

<PAGE>

                                   Schedule A
                             (Schedule of Advances)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.124
<SEQUENCE>59
<FILENAME>c92713exv10w124.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.124

                           DOMINION ACCOUNT AGREEMENT
                  (Lakes Consulting - Iowa -- Cimarron Casino)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 27, 2005 (the "Effective Date'"), between Iowa Tribe of Oklahoma, a
federally-chartered corporation ("Iowa Corp" and sometimes hereinafter referred
to as the "Borrower"), created pursuant to Section 3 of the Oklahoma Indian
Welfare Act of June 26, 1936 (49 Stat. 1967) under a federal charter issued to
the Iowa Tribe of Oklahoma ("Iowa Tribe"), a federally recognized tribe, whose
business office is located at RR 1, P.O. Box 721, Perkins, Oklahoma 74059, and
Lakes Iowa Consulting, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes"), whose business office is located at 130 Cheshire Lane,
Minnetonka, Minnesota 55305, and when it has executed a counterpart signature
page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Iowa Corp is vested with the sovereign immunity of the Iowa Tribe,
and has been established to control and manage the economic affairs of the Iowa
Tribe; and is the legal entity which owns and operates the Cimarron Casino
located in Perkins. Oklahoma.

     WHEREAS, Lakes has entered into a Gaming Operations Consulting Agreement
with Borrower and the Iowa Tribe dated January 27, 2005 (as heretofore and
hereafter amended, the "Consulting Contract"), pursuant to which Lakes is to
provide certain consulting services to Borrower for the Cimarron Casino.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of gross Revenues derived by
the Borrower with respect to the Project Facilities (as set forth in the
Consulting Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Consulting Contract.

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:


                                                                          Page 1

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Consulting
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Account Rights" shall have the meaning assigned to such term in Section
2.3 hereof.

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, Public Law
100-497.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean all loans, compensation, fees, expenses and other
amounts owing by (i) the Borrower to Lakes or its Affiliates under or with
respect to the Consulting Contract, the Iowa Corp Notes, the Security Agreement,
and each of the other Transaction Documents, (ii) the Iowa Tribe and its
Affiliates under or with respect to the Tribal Agreement and any other documents
or agreement executed in favor of Lakes or its Affiliates in connection with the
Project Facilities, (iii) together with any costs, expenses or other amounts
hereafter owing by the Borrower to Agent or Lakes pursuant to the terms of this
Agreement, each of the foregoing, whether now existing or hereafter incurred or
arising.

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Consulting Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all


                                                                          Page 2

<PAGE>

Project Revenues shall be deposited, together with any replacement or
supplemental accounts related thereto.

     "Project Facilities" shall have the meaning assigned to such term in the
Consulting Contract and which shall include, without limitation, the gaming
operations of the Gaming Facility and any other gaming facility owned and
operated in Iowa Indian Country by an instrument of the Iowa Tribe.

     "Project Revenues" shall mean the Revenues (as such term is defined in the
Consulting Contract) of the Project Facilities, including without limitation
credit card receivables and other accounts receivable related to such Project
Facilities.

     "Resolution of Limited Waiver" shall mean that certain Iowa Corp Resolution
Regarding Limited Waiver of Sovereign Immunity - Resolution No. ______ dated
January 27, 2005, issued in connection with the Transaction Documents.

     "Transaction Documents" shall mean each of this Agreement, the Consulting
Contract, the Iowa Corp Notes, the Security Agreement, and any and all other
documents and agreements executed by Borrower in favor of Lakes or related
thereto or contemplated thereby (collectively, the "Transaction Documents").

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Agent hereby
acknowledges the security interest in the Collateral granted to Lakes by
Borrower. On the date of execution of this Agreement, the Borrower shall cause
to be delivered to Lakes (a) such financing statements and similar documents
necessary to perfect the security interest granted to Lakes pursuant to Section
3.1 hereof (the "Financing Statements") and (b) a legal opinion in form and
substance reasonably acceptable to Lakes, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by the Borrower, together with opinions as to the Borrower's
sovereign immunity waiver and noncontravention with laws and agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct any manager of the Project Facilities, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be permitted provided the
collecting bank(s) execute and deliver the Joinder Agreement attached hereto as
Exhibit A with the Borrower, Lakes and the collecting banks in form mutually
acceptable to each of such parties), the Borrower shall transfer or cause to be
transferred all such


                                                                          Page 3

<PAGE>

Project Revenues or other Collateral, consisting of cash and other collected
funds directly by wire transfer of immediate available funds to the Project
Dominion Account on each Business Day. In the event that the Borrower receives
any payment that should have been deposited into the Project Dominion Account as
provided pursuant to this Agreement, the Borrower agrees that it will hold such
amounts in trust for the benefit of Lakes, and shall not commingle any such
funds with any of its funds or other property and shall immediately transfer
such amounts to the Agent for deposit into the Project Dominion Account. The
Borrower agrees that the Agent's officers, agents and employees are irrevocably
authorized by it to endorse for payment to the Agent any instruments received by
the Agent for deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Notwithstanding any
other term or provision contained herein or in the Consulting Contract, only
Borrower shall have the authority to make withdrawals from or exercise any other
rights (collectively, the "Account Rights") with respect to Project Dominion
Account; provided that in accordance with Sections 3.2 and 5.2 hereof, Lakes may
revoke such rights of Borrower to make withdrawals and transfers from the
Project Dominion Account. Upon Agent's receipt of a Notice of Exclusive Control
from Lakes, then in connection with any such withdrawals and transfers and any
other aspects of the Project Dominion Account, the Agent shall acknowledge and
comply with only the withdrawal requests and other directions received from
Lakes, except pursuant to an arbitration award made in an arbitration proceeding
to which Lakes and the Borrower are parties. Lakes acknowledges that when it
shall release any funds from the Project Dominion Account, then its security
interest in such funds shall also be deemed to have been released concurrently
therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or after the occurrence of an Event of Default, solely by
Lakes. All interest accruing with respect to amounts now or hereafter on deposit
with respect to the Project Dominion Account shall be deposited into the Project
Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes and its Affiliates, subject only to Permitted Liens of all of
the Borrower's right, title and interest in and to the Collateral. The Borrower
represents and warrants that the Borrower is (or, to the extent that the


                                                                          Page 4

<PAGE>

Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except for Permitted Liens; and that
no financing statement, notice of lien, mortgage, deed of trust or instrument
similar in effect covering the Collateral or any portion thereof or any proceeds
thereof ("LIEN NOTICE") exists or is on file in any public office, except as
relates to Permitted Liens and except as may have been filed in favor of Lakes
relating to this Agreement or related agreements, or for which duly executed
termination statements have been delivered to Lakes for filing. Without the
prior written consent of Lakes, Borrower will not in any way encumber, or
hypothecate, or create or permit to exist, any lien, security interest, charge
or encumbrance or adverse claim upon or other interest in the Collateral, except
for Permitted Liens, and the Borrower will defend the Collateral against all
claims and demands of all persons at any time claiming the same or any interest
therein, except as expressly provided herein. The Borrower will not permit any
Lien Notices to exist or be on file in any public office with respect to all or
any portion of the Collateral except, in each case, for Lien Notices of holders
of Permitted Liens or encumbrances permitted by the Consulting Contract or
except as may have been filed by or for the benefit of Lakes relating to this
Security Agreement or related agreements. The Borrower shall promptly notify
Lakes of any attachment or other legal process levied against any of the
Collateral and any information received by any Borrower relative to the
Collateral, which may in any material way affect the value of the Collateral or
the rights and remedies of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;


                                                                          Page 5

<PAGE>

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
and Lakes until such time as Lakes delivers a written notice to Agent and the
Borrower in accordance with Section 5.2 that Lakes is thereby exercising
exclusive control over the Project Dominion Account ("NOTICE OF EXCLUSIVE
CONTROL"), provided that the proceeds of any such investments are deposited in
or credited to the Project Dominion Account contemporaneously with such
transaction; and provided, further, such investment instructions shall not
affect the type or nature of Collateral for attachment and perfection purposes
under the Oklahoma Uniform Commercial Code (as may be amended from time to time)
or any other applicable law. After Agent receives the Notice of Exclusive
Control, it will immediately cease complying with any investment instructions
concerning Project Dominion Account originated by Borrower or its
representatives and shall comply with only such investment instructions as are
originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Consulting Contract have been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Consulting Contract.


                                                                          Page 6

<PAGE>

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or Lakes may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach and
termination of the Consulting Contract, the Borrower will furnish the following
to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of each Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,


                                                                          Page 7

<PAGE>

               shall be and remain subject to the provisions of Section 11.15 of
               the Consulting Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager of each Project, substantially in the form
               set forth in Exhibit B stating that, except as explained in
               reasonable detail in such certificate, all gross Project Revenues
               with respect to each Project has been deposited into the Project
               Dominion Account for the period covered by such financial
               statement. If such certificate discloses an exception to such
               certification, such certificate shall set forth what action the
               Borrower has taken or proposes to take with respect thereto.

     (d) Insurance. The Borrower shall cause to be maintained insurance on each
Project and related assets with such coverages and in such amounts as are
reasonably satisfactory to Lakes, including without limitation, loss of business
income coverage, and naming Lakes as an additional insured, lender loss payee
and mortgagee, if applicable. Upon request, the Borrower shall provide to the
Agent and Lakes certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended an


                                                                          Page 8

<PAGE>

additional reasonable period of time for so long as the Borrower shall be using
diligent efforts to effect a cure thereof but no more than an additional sixty
(60) days.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under any Iowa Corp Note or
other Transaction Document and shall have continued beyond any applicable grace
or cure period.

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower, and to
apply the same towards the repayment of the Obligations, and to endorse in the
name of the Borrower any checks, drafts, notes or other instruments or documents
received in payment of or on account of the Project Revenues or other
Collateral; and any such proceeds so received and prepaid shall be applied to
instalments of principal on the Obligations in the inverse order of their
maturity; and provided further that Lakes may obtain any injunctive or other
relief as is necessary for the enforcement of this Agreement and the terms and
provisions set forth herein, and may exercise such other rights and remedies
available by law or agreement; PROVIDED, HOWEVER, that notwithstanding any term
or provision contained herein, Lakes shall take all steps necessary to continue
to permit and cause the necessary withdrawals and transfers to be made from the
Project Dominion Account in accordance with Section 5.3 hereof; and in no event
shall Lakes exercise any remedy against the Borrower (excluding other third
parties) with respect to the Project Revenues other than such remedies as are
necessary to require their deposit into the Project Dominion Account or seeking
an accounting and turnover of any Project Revenues held in trust by the Borrower
as required under Section 2.2 hereof until such time that the Borrower shall
have ceased business operations or in accordance with Section 5.3 it is
determined that any portion thereof is no longer economically feasible to
operate at the Project, at which time Lakes may exercise all rights and remedies
under applicable law or by agreement and apply all proceeds of the Collateral to
the repayment of the Obligations. Borrower agrees that, to the extent notice of
sale shall be required by law with respect to the disposition of any Collateral,
at least ten (10) calendar days notice to the Borrower of the time and place of
any public sale or the time after which a private sale is to be made shall
constitute reasonable notification. Lakes agrees that it shall withdraw and
terminate any Notice of Exclusive Control at such time that all outstanding
Events of Default have been cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and


                                                                          Page 9

<PAGE>

in exercising any such powers or authority, the right to pay all expenses
incurred in connection therewith, including attorneys' fees. Borrower hereby
agrees that it shall be bound by any such payment made or incurred or act taken
by Lakes hereunder and shall reimburse Lakes for all reasonable payments made
and expenses incurred under this Agreement, which amounts shall be secured under
this Agreement. Lakes shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WITHDRAWALS AFTER DEFAULT/TERMINATION. Upon the occurrence of
an Event of Default and if Lakes shall issue the Notice of Exclusive Control to
Agent, Lakes and Borrower agree that until all obligations under the Transaction
Documents have been indefeasible paid, then during any applicable cure period
related thereto or if the Consulting Contract is terminated, (a) Lakes shall
permit the release of and turnover to Borrower monthly of such funds from the
Project Dominion Account as are reasonably necessary to pay normal and customary
operating costs and expenses related to the operation of the Project, excluding
any amounts that are payable to the Borrower, the Iowa Tribe or any other
affiliate of any of such parties and excluding debt service on any indebtedness
for borrowed money or capital leases except as otherwise approved by Lakes in
writing (collectively, the "Permitted Operating Costs"); and in connection
therewith, Borrower shall provide a proposed operating expense budget to Lakes
for its approval, which shall be updated from time to time at Lakes request and
any funds provided to Borrower shall be spent, used and applied only in
accordance with such budget; and (b) to the extent economically feasible (as
hereinafter defined), Borrower agrees to continue to operate and maintain the
Project and Project Facilities in accordance with reasonable industry standards,
and as to any portions of the Project Facilities that are no longer economically
feasible to operate, Borrower and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Project Dominion Account and disbursed in accordance with
the same terms and provisions set forth in clause (a) above, provided however
that such liquidation proceeds shall be excluded


                                                                         Page 10

<PAGE>

from net total revenues for purposes of calculating the management compensation
of any manager of the Project; and Borrower shall keep the Project Facilities
and all related assets insured for the coverages and amounts required by this
Agreement and name Lakes as an additional insured, lender loss payee and
mortgagee, as applicable and provide evidence thereof upon request until all
amounts owing to Lakes have been paid in full, and if any portion of the Project
assets are damaged by any casualty and it is economically feasible for Borrower
to continue to operate such damaged assets, then Borrower shall repair and
reconstruct such operations that were damaged and are to be continued, and any
excess insurance proceeds that are not used to repair and reconstruct the
applicable damaged Project assets shall be deposited into the Project Dominion
Account and disbursed in accordance with the same terms and provisions set forth
herein, provided however that such excess proceeds shall be excluded from net
total revenues for purposes of calculating the management compensation of any
manager of the Project. As used herein, the term "economically feasible" shall
mean that the gross Revenues derived from any applicable operations is in excess
of that needed to pay the Permitted Operating Costs for such operations.

     Section 5.4 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.


                                                                         Page 11

<PAGE>

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement. If Borrower shall fail to
pay any of such costs when due, Lakes may make a withdrawal of proceeds from the
Project Dominion Account in an amount sufficient to cause the payment of the
same or reimburse Lakes for any such payment.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,
administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the


                                                                         Page 12

<PAGE>

Borrower shall not be and Lakes shall be responsible for such related costs and
expenses. If Borrower shall fail to pay any of such costs when due, Lakes may
make a withdrawal of proceeds from the Project Dominion Account in an amount
sufficient to cause the payment of the same or reimburse Lakes for any such
payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting any action hereunder, the Agent (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days after the date of this Agreement, Borrower shall select an eligible
financial institution to act as the agent (the "Agent") under this Agreement and
cause the Agent to execute a counterpart signature page to this Agreement,
thereby becoming a party hereto. Thereafter, there shall at all times be an
Agent hereunder. Any such Agent shall be a financial institution organized and
doing business under the laws of the United States of America or of any State,
having a combined capital, undivided profits and surplus of at least
$500,000,000. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of


                                                                         Page 13

<PAGE>

resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower (so long as a Notice of
Exclusive Control has not been issued by Lakes to the Agent) and Lakes delivered
to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.

                                    ARTICLE 7


                                                                         Page 14

<PAGE>

                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Iowa Tribe of Oklahoma
                       a federally-chartered corporation
                       RR 1, P.O. Box 721
                       Perkins. OK 74059
                       Attention: Chairman

     With a copy to:   David McCullough, Esq.
                       Doerner, Saunders, Daniel & Anderson, L.L.P.
                       211 N. Robinson Ave. Suite 501
                       Oklahoma City, OK 73102-7112

If to Lakes:           Lakes Iowa Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN 55305
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition without invalidating the remaining provisions
hereof, provided, however that where the provisions of any such applicable


                                                                         Page 15

<PAGE>

law may be waived, they hereby are waived by the Parties to the fullest extent
permitted by law to the end that this Agreement shall be deemed to be a valid
and binding agreement in accordance with its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Consulting Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient. No failure on the part of the Agent or
Lakes to exercise and no delay in exercising, any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power or right preclude any other or further exercise thereof of any other power
or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the dominion account agreement referred
to in Section 3.1(g) of the Consulting Contract. As such and without limiting
the scope of such Consulting Contract, the provisions of Article 10 of the
Consulting Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration and jurisdiction provisions contained
therein and the Resolution of Limited Waiver. This Agreement and the Project
Dominion Account will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles and without limiting
the foregoing, the Oklahoma Uniform Commercial Code (as may be amended form time
to time) notwithstanding any provision therein or other applicable law that
would otherwise make such laws inapplicable to the Borrower. The parties hereto
may not change the law governing this Agreement and the Project Dominion Account
without express written consent of the Borrower, Agent and Lakes.

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Consulting Contract and this Agreement, this Agreement shall control.


                                                                         Page 16

<PAGE>

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        IOWATRIBE OF OKLAHOMA
                                        A FEDERALLY-CHARTERED CORPORATION


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA CONSULTING, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Rob Wyre
                                            ------------------------------------
                                        Name: Rob Wyre
                                              ----------------------------------
                                        Its: Sr. V.P. OPS.
                                             -----------------------------------

Date of Joinder of Agent: ________, 200_

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
(Consulting)(Cimarron) dated January 27, 2005 (as amended or otherwise modified
from time to time, the "Dominion Agreement") by and among Iowa Tribe of
Oklahoma, a federally-chartered corporation ("Borrower"), Lakes Iowa Consulting,
LLC ("Lakes") and ____________________________________ ("Agent"), the Collecting
Bank, must execute and deliver a Joinder Agreement in accordance with the
Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and consulting services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No. ________
          maintained by the Borrower with the Collecting Bank (such account,
          together with any replacement thereof shall hereinafter be referred to
          as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Iowa Tribe of Oklahoma, a
federally-chartered corporation (the "Borrower"), do hereby provide this
Compliance Certificate in connection with that certain Dominion Account
Agreement (Consulting)(Cimarron) dated January 27, 2005 (the "Dominion
Agreement"), by and between the Borrower, Lakes, and __________________________
Bank (the "Bank"); capitalized terms used but not otherwise defined herein shall
have the meaning set forth in the Dominion Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          Facilities from ________________, 200__ to ______________, 200__ have
          been deposited into the Project Dominion Account, Account No.
          __________ with the Bank.

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.125
<SEQUENCE>60
<FILENAME>c92713exv10w125.txt
<DESCRIPTION>SECURITY AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.125

                               SECURITY AGREEMENT

                  (LAKES CONSULTING - IOWA -- CIMARRON CASINO)

          This Security Agreement is made and entered into on January 27, 2005,
by and between the Iowa Tribe of Oklahoma, a federally-chartered corporation
(hereinafter referred to as "Iowa Corp" or "Debtor"), created pursuant to
Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967),
as issued on January 4, 1938 by the Secretary of the Interior and ratified on
February 5, 1938 located in Iowa Indian Country within the physical boarders of
the State of Oklahoma, with business offices located at RR 1, P.O. Box 721,
Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma ("Iowa Tribe"), a
federally-recognized tribe with a Constitution approved and ratified under the
Oklahoma Indian Welfare Act, and Lakes Iowa Consulting, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes" or "Secured Party"), whose
business office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into a Gaming Operations Consulting
Agreement for the Cimarron Casino with Debtor and the Iowa Tribe dated January
27, 2005 (as heretofore and hereafter amended, the "Consulting Contract"),
pursuant to which Lakes is to provide certain consulting services to Debtor as
more specifically described therein.

     WHEREAS, pursuant to the Consulting Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Consulting Contract, the Debtor and the Iowa Tribe has agreed to execute this
Security Agreement in favor of Secured Party and to grant a security interest to
Secured Party in all of its right, title and interest in the property described
herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor and the Iowa Tribe hereby
assign, pledge and grant to Secured Party, for and on behalf of Secured Party
itself and its Affiliates, a security


                                  Page 1 of 15

<PAGE>

interest in the Debtor's and the Iowa Tribe's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each case whether now
owned or hereafter acquired by Debtor or the Iowa Tribe in order to secure the
payment and performance of the obligations of Debtor and the Iowa Tribe to
Secured Party described in Section 3 herein below. On the date of execution of
this Agreement, Debtor and the Iowa Tribe shall cause to be delivered to Secured
Party: (a) such financing statements and similar documents necessary to perfect
the security interest granted to Secured Party pursuant to this Agreement (the
"Financing Statements"), and (b) a legal opinion in form and substance
reasonably acceptable to Secured Party, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by Debtor, together with opinions as to Debtor's and the Iowa Tribe's
sovereign immunity waiver and non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Gaming Facility, the
site of the Gaming Facility, and/or the Project Facilities, each whether now
owned or hereafter acquired (collectively all of the following property and
similar or after-acquired property under this Section 2 being hereinafter
referred to as the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Consulting
Contract); and each of the foregoing whether now owned or hereafter at any time
acquired by Debtor and wherever located, and includes all replacements,
additions, parts, appurtenances, accessions, substitutions, repairs, proceeds,
products, offspring, rents and profits, license rights and software attached or
relating thereto or therefrom, and all documents, records, ledger sheets and
files of Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Consulting Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR AND THE IOWA TRIBE. The Collateral secures
and shall hereafter secure the following, whether now existing or hereafter
incurred: (i) all loans, compensation, fees, expenses and other amounts owing by
(a) Debtor and/or the Iowa Tribe to Secured Party or its Affiliates under or
with respect to the Iowa Corp Notes, the Consulting Contract,


                                  Page 2 of 15

<PAGE>

this Agreement, and each dominion account agreement, mortgage, or other document
or instrument in favor of Secured Party or its Affiliates (as such term is
defined in the Consulting Contract)and related thereto or hereto (collectively,
the "Transaction Documents"), and (b) the Iowa Tribe to Secured Party or its
Affiliates under or with respect to the Tribal Agreement or any other document
or agreement executed in favor of Secured Party or its Affiliates by the Iowa
Tribe in connection with the Project Facilities, each of the foregoing, whether
now existing or hereafter incurred or arising, (ii) any and all sums advanced by
Secured Party in order to preserve the Collateral or preserve Secured Party's
security interest in the Collateral (or the priority thereof) and (iii) the
expenses of retaking, holding, preparing for sale or lease, selling or otherwise
disposing of or realizing on the Collateral, of any proceeding for the
collection or enforcement of any indebtedness, obligations or liabilities of
Debtor or the Iowa Tribe referred to above, or of any exercise by Secured Party
of its rights hereunder, together with reasonable attorneys' fees and
disbursements and court costs (collectively, the "Secured Obligations");
PROVIDED HOWEVER, Secured Party agrees to terminate this Security Agreement upon
request if Debtor has satisfied the following conditions: (a) all Secured
Obligations have been repaid in full to Secured Party and Secured Party has no
further obligation, if any, to make advances under the Consulting Contract with
respect thereto, and (b) the Consulting Contract has been terminated in
accordance with its terms.

          All payments and performance by Debtor and the Iowa Tribe with respect
to any Secured Obligations shall be in accordance with the terms under which
said indebtedness, obligations and liabilities were or are hereafter incurred or
created.

     4. REPRESENTATIONS AND WARRANTIES OF DEBTOR AND THE IOWA TRIBE. The Debtor
and the Iowa Tribe represent and warrant that:

          (a) the Debtor and the Iowa Tribe are (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except such liens permitted by and
subject to the terms of Section 7.2 of the Consulting Contract and that are
created by this Security Agreement ("Permitted Liens"); and that no financing
statement, notice of lien, mortgage, deed of trust or instrument similar in
effect covering the Collateral or any portion thereof or any proceeds thereof
("Lien Notice") exists or is on file in any public office, except as relates to
Permitted Liens and except as may have been filed in favor of Secured Party
relating to this Security Agreement or related agreements, or for which duly
executed termination statements have been delivered to Secured Party for filing;

          (b) the Debtor and the Iowa Tribe have full right, power and authority
to execute, deliver and perform this Security Agreement. This Security Agreement
constitutes a legally valid and binding obligation of the Debtor and the Iowa
Tribe, enforceable against each in accordance with its terms subject to any
limitations set forth in the Resolution of Limited Waiver dated January 27, 2005
of each related to and approving the Transaction Documents (the "Resolution of
Limited Waiver"). Subject to the completion of the items identified in Section
4(c) below, the provisions of this Security Agreement are effective to create in
favor of Secured Party a valid and enforceable first, prior and perfected
security interest in the Collateral;


                                  Page 3 of 15

<PAGE>

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or the Iowa Tribe or any governmental authority or
regulatory body is required, except as may be agreed to by Debtor or the Iowa
Tribe and Secured Party: (i) for the grant by the Debtor and the Iowa Tribe of
the security interest in the Collateral pursuant to this Security Agreement or
for the execution, delivery or performance of this Security Agreement by the
Debtor and the Iowa Tribe, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor and the Iowa Tribe do not do business, and for the previous
five years has not done business, under any fictitious business names or trade
names;

          (e) the Collateral has not been and will not be used or bought by
Debtor or the Iowa Tribe for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor or the Iowa Tribe, the consummation of the transactions
herein contemplated, the fulfillment of the terms hereof or the exercise by
Secured Party of any rights or remedies hereunder will constitute or result in a
breach of any of the terms or provisions of, or constitute a default under, or
constitute an event which with notice or lapse of time or both will result in a
breach of or constitute a default under, any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor or
the Iowa Tribe is a party, conflict with or require approval, authorization,
notice or consent under any law, order, rule, regulation, license or permit
applicable to Debtor or the Iowa Tribe of any court or any federal or state
government, regulatory body or administrative agency, or any other governmental
body having jurisdiction over Debtor or the Iowa Tribe or their properties, or
require notice, consent, approval or authorization by or


                                  Page 4 of 15

<PAGE>

registration or filing with any person or entity (including, without limitation,
any stockholder or creditor of Debtor) other than any notices to Debtor or the
Iowa Tribe from Secured Party required hereunder except as may be agreed to by
Debtor or the Iowa Tribe and Secured Party. Except for the Permitted Liens, none
of the Collateral is subject to any agreement, indenture, mortgage, deed of
trust, equipment lease, instrument or other document to which Debtor or the Iowa
Tribe is a party that may restrict or inhibit Secured Party's rights or ability
to sell or dispose of the Collateral or any part thereof after the occurrence of
an Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR AND THE IOWA TRIBE. The Debtor and the Iowa Tribe
covenant and agree that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor and the Iowa Tribe will promptly, and in no event later
than 21 days after a request by Secured Party, procure or execute and deliver
all further instruments and documents (including, without limitation, notices,
legal opinions, financing statements, mortgagee waivers, landlord disclaimers
and subordination agreements) necessary or appropriate to and take any other
actions which are necessary or, in the judgment of Secured Party, desirable or
appropriate to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes and provisions of this Security Agreement, and will pay all reasonable
costs incurred in connection therewith. Without limiting the generality of the
foregoing, Debtor will: (i) mark conspicuously each item of chattel paper and
each other contract included in the Collateral with a legend, in form and
substance satisfactory to Secured Party, indicating that such chattel paper and
other contracts are subject to the security interests granted hereby; (ii)
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable,
which Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a


                                  Page 5 of 15

<PAGE>

promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor and the
Iowa Tribe will not in any way encumber, or hypothecate, or create or permit to
exist, any lien, security interest, charge or encumbrance or adverse claim upon
or other interest in the Collateral, except for liens permitted by and subject
to the terms of Section 7.2 of the Consulting Contract ("Permitted Liens"), and
the Debtor and the Iowa Tribe will defend the Collateral against all claims and
demands of all persons at any time claiming the same or any interest therein,
except as expressly provided herein. Debtor and the Iowa Tribe will not permit
any Lien Notices to exist or be on file in any public office with respect to all
or any portion of the Collateral except, in each case, for Lien Notices of
holders of Permitted Liens or except as may have been filed by or for the
benefit of Secured Party relating to this Security Agreement or related
agreements. Debtor and the Iowa Tribe shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor or the Iowa Tribe relative to the Collateral,
which may in any material way affect the value of the Collateral or the rights
and remedies of Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor or the
Iowa Tribe will not sell, transfer, assign (by operation of law or otherwise),
exchange or otherwise dispose of all or any portion of the Collateral or any
interest therein, except that the Debtor or the Iowa Tribe may sell worn-out or
obsolete equipment provided that the proceeds thereof are applied to the Secured
Obligations or used to purchase new collateral of equal or greater value and the
Secured Party shall be granted a first priority security interest therein. If
the proceeds of any such prohibited sale are notes, instruments, documents of
title, letters of credit or chattel paper, such proceeds shall be promptly
delivered to Secured Party to be held as Collateral hereunder (with all
necessary or appropriate endorsements). If the Collateral, or any part thereof
or interest therein, is sold, transferred, assigned, exchanged, or otherwise
disposed of in violation of these provisions, the security interest of Secured
Party shall continue in such Collateral or part thereof notwithstanding such
sale, transfer, assignment, exchange or other disposition, and Debtor and the
Iowa Tribe will


                                  Page 6 of 15

<PAGE>

hold the proceeds thereof in a separate account for Secured Party's benefit.
Debtor or the Iowa Tribe will, at Secured Party's request, transfer such
proceeds to Secured Party in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
or the Iowa Tribe where permitted by law;

          (h) Except as expressly permitted by the Consulting Contract, Debtor
and the Iowa Tribe will not enter into any indenture, mortgage, deed of trust,
contract, undertaking, document, instrument or other agreement, except for the
Consulting Contract and any documents, instruments or agreements related thereto
or issue any securities which may materially restrict or inhibit Secured Party's
rights or ability to sell or otherwise dispose of the Collateral or any part
thereof after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance on the Project
Facilities and related assets with such coverages and in such amounts as are
reasonably satisfactory to Secured Party, including without limitation, loss of
business income coverage, and naming Secured Party as an additional insured,
lender loss payee and mortgagee, if applicable. Upon request, the Debtor shall
provide to the Secured Party certificates of insurance or copies of insurance
policies evidencing that such insurance is in effect at all times;

          (j) Except as expressly permitted by the Consulting Contract, the
Debtor and the Iowa Tribe will pay and discharge all taxes, assessments and
governmental charges or levies against the Collateral prior to delinquency
thereof and will keep the Collateral free of all unpaid claims and charges
(including claims for labor, materials and supplies) whatsoever;

          (k) Debtor and the Iowa Tribe will keep and maintain the Collateral in
good condition, working order and repair and from time to time will make or
cause to be made all repairs, replacements and other improvements in connection
therewith that are necessary or desirable toward such end. Debtor and the Iowa
Tribe will not misuse or abuse the Collateral, or waste or allow it to
deteriorate except for the ordinary wear and tear of its normal and expected use
in Debtor's business in accordance with Debtor's policies as then in effect
(provided that no changes are made to Debtor's policies as in effect on the date
hereof that would be materially adverse to the interests of the Secured Party),
and will comply with all laws, statutes and regulations pertaining to the use or
ownership of the Collateral. Debtor or the Iowa Tribe will promptly notify
Secured Party regarding any material loss or damage to any material Collateral
or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guarantee
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;


                                  Page 7 of 15

<PAGE>

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor and the Iowa Tribe
hereby agree that each shall be bound by any such payment made or incurred or
act taken by Secured Party hereunder and shall reimburse Secured Party for all
reasonable payments made and expenses incurred under this Security Agreement,
which amounts shall be secured under this Security Agreement. Secured Party
shall have no obligation to make any of the foregoing payments or perform any of
the foregoing acts;

          (q) if Debtor shall become entitled to receive or shall receive any
certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.


                                  Page 8 of 15

<PAGE>

     6. DEFAULTS AND REMEDIES

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor or the Iowa Tribe herein or in any report, certificate or other
document furnished by or on behalf of the Debtor or the Iowa Tribe pursuant to
this Agreement shall prove to be false or misleading in any material respect
when made or at any time shall fail to be true and correct in all material
respects.

          (b) The Debtor or the Iowa Tribe shall default in the due observance
or performance of any of its material obligations hereunder and such default
shall continue for thirty (30) days (unless a shorter or longer cure period is
provided under the terms of this Agreement) after written notice thereof has
been sent to the Debtor or the Iowa Tribe by Secured Party; provided, however,
that if the nature of such default (but specifically excluding defaults curable
by the payment of money) is such that it is not possible to cure such breach
within thirty (30) days, such 30-day period shall be extended for so long as the
Debtor or the Iowa Tribe shall be using diligent efforts to effect a cure
thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Consulting Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor and the Iowa Tribe expressly covenant and agree that
Secured Party may, at its option, in addition to other rights and remedies
provided herein or otherwise available to it, without notice to or demand upon
Debtor or the Iowa Tribe (except as otherwise required herein), exercise any one
or more of the rights as set forth as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Consulting Contract is terminated and either (i) the Gaming
Facility has not opened for business to the general public, or (ii) the Debtor
does not or at any time fails to continue operations of Class II Gaming and/or
Class III Gaming at the Gaming Facility or any material portion of the Project
Facilities, Secured Party may immediately take possession of any of the
Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's or the Iowa Tribe's places of business, premises and property to
exercise Secured Party's rights hereunder; and without notice (except as
specified below), sell the Collateral or any part thereof in one or more parcels
at one or more public or private sales, at any of Secured Party's offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor and the Iowa Tribe acknowledge and agree that, to the
extent notice of sale shall be required by law, at least ten (10) days written
notice to Debtor or the Iowa Tribe of the time and place of any public sale or
of the date on or after which any private sale is to be made shall constitute
reasonable notification.


                                  Page 9 of 15

<PAGE>

Any public sale shall be held at such time or times during ordinary business
hours and at such place or places as Secured Party may fix in the notice of such
sale. Notwithstanding the foregoing, Secured Party shall not be obligated to
make any sale of Collateral regardless of notice of sale having been given.
Secured Party may, without notice or publication, adjourn any public or private
sale, or cause the same to be adjourned from time to time by announcement at the
time and place fixed for sale or, with respect to a private sale, after which
such sale may take place, and any such sale may, without further notice, be made
at the time and place to which it was so adjourned or, with respect to a private
sale, after which such sale may take place. Each purchaser at any such sale
shall hold the property sold free from any claim or right on the part of Debtor
or the Iowa Tribe, and the Debtor and the Iowa Tribe hereby waive, to the full
extent permitted by law, all rights of stay and/or appraisal which Debtor or the
Iowa Tribe now has or may at any time in the future have under any rule of law
or statute now existing or hereafter enacted. The Debtor and the Iowa Tribe also
hereby waive any claims against Secured Party arising by reason of the fact that
the price at which any Collateral may have been sold at a private sale was less
than the price which might have been obtained at a public sale, even if Secured
Party accepts the first offer received and does not offer such Collateral to
more than one offeree. The parties hereto agree that the notice provisions,
method, manner and terms of any sale, transfer or disposition of any Collateral
in compliance with the terms set forth herein or any other provision of this
Security Agreement are commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor or the Iowa Tribe is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor or the Iowa Tribe shall not be and Secured Party
shall be responsible for such related costs and expenses. Secured Party may
exercise its rights under this Security Agreement independently of any other
collateral or guaranty that Debtor or the Iowa Tribe may have granted or
provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor or the Iowa Tribe to
secure any Secured Obligation or to proceed against any guarantor before
enforcing its rights under this Security Agreement. The Debtor or the Iowa Tribe
shall reimburse Secured Party upon demand for, or Secured Party may apply any
proceeds of Collateral to, the reasonable costs and expenses (including
attorneys' fees, transfer taxes and any other charges) incurred by Secured Party
in connection with any sale, disposition, repair, replacement, alteration,
addition, improvement or retention of any Collateral hereunder; provided however
that if the Debtor or the Iowa Tribe is the prevailing party in any action or
proceeding seeking enforcement of this Agreement, then the Debtor or the Iowa
Tribe shall not be and Secured Party shall be responsible for such related costs
and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or


                                 Page 10 of 15

<PAGE>

agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:           Iowa Tribe of Oklahoma
                        a federally-chartered corporation
                        RR 1, P.O. Box 721
                        Perkins, OK 74059
                        Attention: Chairman

     With a copy to:    David McCullough, Esq.
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112

If to the Iowa Tribe:   Iowa Tribe of Oklahoma
                        a federally recognized Indian tribe
                        RR 1, P.O. Box 721
                        Perkins, OK 74059
                        Attention: Chairman

     With a copy to:    David McCullough, Esq.
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112

If to Secured Party:    Lakes Iowa Consulting, LLC
                        130 Cheshire Lane
                        Minnetonka, MN
                        Attention: Timothy J. Cope


                                 Page 11 of 15

<PAGE>

     With a copy to:    Kevin C. Quigley, Esq.
                        Hamilton Quigley Twait & Foley PLC
                        W1450 First National Bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

          and           Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Consulting Contract, neither Debtor nor the Iowa Tribe shall assign any of its
interest under this Security Agreement without the prior written consent of
Secured Party. Any purported assignment inconsistent with this provision shall,
at the option of Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their


                                 Page 12 of 15

<PAGE>

agreement and is intended as a complete and exclusive statement of the terms and
conditions thereof. Acceptance of or acquiescence in a course of performance
rendered under this Security Agreement shall not be relevant to determine the
meaning of this Security Agreement even though the accepting or acquiescing
party had knowledge of the nature of the performance and opportunity for
objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor and the Iowa Tribe contained herein shall survive the
execution and delivery of this Security Agreement, and shall terminate only upon
the termination of this Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor and the Iowa Tribe hereby
irrevocably appoint Secured Party its attorney-in-fact, which appointment is
coupled with an interest, with full authority in the place and stead of Debtor
and the Iowa Tribe and in the name of each, Secured Party or otherwise, from
time to time in Secured Party's discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Debtor or the Iowa Tribe with respect to the
security interests granted or purported to be granted hereby, (b) to take any
action and to execute any instrument which Secured Party may deem necessary or
advisable to exercise its rights under Section 5(p) hereunder, and (c) upon the
occurrence and during the continuance of an Event of Default, to take any action
and to execute any instrument which Secured Party may deem necessary or
advisable to accomplish the purposes of this Security Agreement, including,
without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,


                                 Page 13 of 15

<PAGE>

consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor or the Iowa Tribe all of the Collateral
hereunder which has not been sold, disposed of, retained or applied by Secured
Party in accordance with the terms hereof, and execute and deliver to Debtor or
the Iowa Tribe such documents as each may reasonably request to evidence such
termination. Such reassignment and redelivery shall be without warranty by or
recourse to Secured Party, and shall be at the expense of Debtor or the Iowa
Tribe; provided, however, that this Security Agreement (including all
representations, warranties and covenants contained herein) shall continue to be
effective or be reinstated, as the case may be, if at any time any amount
received by Secured Party in respect of the indebtedness and obligations secured
hereunder is rescinded or must otherwise be restored or returned by Secured
Party upon or in connection with the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Debtor or the Iowa Tribe or any other person or
upon or in connection with the appointment of any intervenor or conservator of,
or trustee or similar official for, Debtor, the Iowa Tribe or any other person
or any substantial part of its assets, or otherwise, all as though such payments
had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the security agreement referred to in
Section 3.1(g) of the Consulting Contract. As such and without limiting the
scope of such agreements, the provisions of Article 10 of the Consulting
Contract apply to this Agreement and are hereby incorporated by reference,
including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver. This Agreement will be governed by the internal
laws of the State of Oklahoma without giving effect to its conflict of laws
principles. The parties hereto may not change the law governing this Agreement
without express written consent of the Debtor, the Iowa Tribe and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        IOWA TRIBE OF OKLAHOMA
                                        A federally-chartered corporation

ATTEST:


By: /s/ Eugene Big Soldier Jr.          By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr.            Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Secretary                          Title: Chairman
     --------------------------------          ---------------------------------


                                        IOWA TRIBE OF OKLAHOMA
                                        a federally recognized Indian tribe

ATTEST:


By: /s/ Eugene Big Soldier Jr.          By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr.            Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its:  Secretary                         Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
                                        LAKES IOWA CONSULTING, LLC

ATTEST:


By: /s/ Rob Wyre                        By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Rob Wyre                          Name: Timothy J. Cope
      -------------------------------   Title: President and
Its: Sr. V.P. Ops                              Chief Financial Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
                           (IOWA COLLATERAL LOCATIONS)

1.   IOWA CIMARRON CASINO LOCATED IN IOWA INDIAN COUNTRY IN PERKINS, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.126
<SEQUENCE>61
<FILENAME>c92713exv10w126.txt
<DESCRIPTION>TRIBAL AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.126

                                TRIBAL AGREEMENT
                    (LAKES IOWA CONSULTING - CIMARRON CASINO)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 27, 2005 ("Effective Date") by and among the Iowa Tribe of
Oklahoma ("Iowa Tribe"), a federally recognized Indian tribe, and Lakes Iowa
Consulting, LLC, a Minnesota limited liability company ("Lakes Consulting").

                                    RECITALS

     A. The Iowa Tribe is a federally recognized Indian tribe eligible for the
special programs and services provided by the United States to Indian tribes,
and is recognized as possessing and exercising powers of self-government. The
Iowa Tribe, pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
1936 (49 Stat. 1967), was issued a corporate charter for Iowa Corp on January 4,
1938 by the Secretary of the Interior and said corporate charter was ratified by
the Iowa Tribe on February 5, 1938. Iowa Corp is vested with sovereign immunity,
and is the entity that controls and manages the economic affairs of the Iowa
Tribe, including tribal gaming operations.

     B. Lakes Consulting has entered into a Consulting Agreement with Iowa Corp
and the Iowa Tribe dated January 27, 2005 (as amended from time to time, the
"Consulting Contract"), pursuant to which Lakes Consulting is to provide certain
consulting services to Iowa Corp with respect to the Cimarron Casino located in
Perkins, Oklahoma owned by Iowa Corp on behalf of the Iowa Tribe as described
with specificity therein.

     C. Pursuant to the terms of the Consulting Contract, the Iowa Tribe is
required to execute and deliver this Agreement to induce Lakes Consulting to
enter into the Consulting Contract together with certain additional documents
and agreements referred to therein or related thereto.

     D. The Iowa Tribe and Lakes Consulting intend that this Agreement shall be
operative and binding upon the date of execution by the parties (the "Effective
Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, the Iowa Tribe
and Lakes Consulting agree as follows:


                                       1

<PAGE>

                                   ARTICLE 1
                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Consulting
Contract and/or the other documents and agreements executed by Iowa with respect
thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
the Iowa Tribe and any of Lakes Consulting or any of its Affiliates that is
directly or indirectly related to this Agreement, any of the other Transaction
Documents, a Gaming Project or any Project Facilities, whether arising under law
or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or any of the other
Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(n) hereof.

     "Iowa Entities" means individually and collectively, each of Iowa Corp and
the Iowa Tribe.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Consulting Contract, the Iowa Corp Notes, the security
agreements, dominion account agreements, mortgages, resolutions of limited
waiver and each other document or instrument now or hereafter executed by any of
Iowa, Iowa Corp and/or the Iowa Tribe in favor of Lakes Consulting or its
respective Affiliates and related thereto or hereto or any Gaming Projects

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. The Iowa Tribe represents and
warrants to Lakes Consulting that:

     (a)  Organization. The Iowa Tribe is a federally recognized Indian tribe
          eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Each of Iowa Corp and Iowa Tribe has taken all
          action required by tribal or other law without the necessity of
          further action as is necessary to authorize the applicable Iowa Entity
          to execute, deliver and perform each of the Transaction Documents that
          such Iowa Entity is party to. Each Iowa Entity that is a party to any
          of the Transaction Documents has all requisite power and authority to
          enter into the Transaction Documents to the extent a party thereto and
          to perform its respective obligations thereunder, and to consummate
          all other transactions contemplated thereby.


                                       2

<PAGE>

     (c)  Binding Obligations. Each Transaction Documents (i) has been duly
          executed and delivered by each Iowa Entity to the extent it is a party
          thereto, and (ii) constitutes the legal, valid, binding, perfected and
          enforceable obligation of each Iowa Entity to the extent it is a party
          thereto, enforceable in accordance with its respective terms, except
          as enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The site for the Gaming Facility constitutes
          "Indian lands" upon which the Iowa Tribe may legally conduct gaming
          under IGRA.

     (e)  Gaming Permitted. The Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Iowa Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Iowa Tribe. Iowa Corp will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          the Iowa Corp under the Transaction Documents to the extent set forth
          in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Consulting to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by any of Iowa Corp or the Iowa Tribe or affecting the site of
          the Gaming Facility or affecting any of the Project Facilities,
          whether arising from contracts, instruments, orders, judgments,
          decrees or otherwise, that are likely to materially and adversely
          affect the Project Facilities or the obligations or rights of Lakes
          Consulting under any of the Transaction Documents to which it is a
          party.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          the applicable Iowa Entity of each Transaction Documents that such
          Iowa Entity is party to does not violate any Legal Requirements nor
          conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of any Iowa Entity, including without limitation
          the Project Facilities, or result in the acceleration of any
          obligation of any Iowa Entity under the terms of any agreement or
          document binding upon such party, other than a conflict, breach,
          default or imposition as shall not materially adversely affect the
          Project Facilities or the obligations or rights of Lakes Consulting
          under any of the Transaction Documents to which it is a party.


                                       3

<PAGE>

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of any Iowa
          Entity, threatened, against any Iowa Entity or their respective
          Affiliates, or any of the assets or properties of any of such
          entities, that could have a material adverse effect on the Project
          Facilities, any Iowa Entity's ability to enter into or perform any of
          the Transaction Documents to the extent it is a party thereto.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by the Iowa Tribe is
          required to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of any Iowa Entity in
          this Agreement or the other Transaction Documents and no report or
          statement delivered to any of Lakes Consulting or its respective
          Affiliates by or on behalf of any Iowa Entity, contains any untrue
          statement or omits to state a material fact necessary to make any such
          representation, warranty, report or statement, in light of the
          circumstances in which they were made, not misleading. Each Iowa
          Entity has fully disclosed to Lakes Consulting the existence and terms
          of all material agreements and Legal Requirements, written or oral,
          relating to the Project.

     (m)  No Tribal Tax. Neither the Project Facilities nor the transaction(s)
          between the parties contemplated by the Transaction Document are now,
          or at any time during the term of this Agreement will be, subject to
          any tribal tax of any sort other than (i) reasonable pass-through
          taxes on Project Facilities patrons which are consistent with gaming
          resort industry practices, and (ii) the fees and assessments described
          in clause (c) of the definition of "Costs of Operations" contained in
          the Consulting Contract.

     (n)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of the Iowa
          Tribe are/will be owned and operated by Iowa Corp, or if any Gaming
          Project is owned by another subsidiary of the Iowa Tribe, then such
          subsidiary has entered into a consulting agreement and related
          documents with Lakes Consulting and/or its Affiliates on the same
          terms and conditions as are set forth in the Consulting Contract and
          the other Transaction Documents unless otherwise agreed to in writing
          by Lakes or its Affiliate, and otherwise satisfied the required
          conditions each as set forth in Section 3.1(f) hereof.

                                    ARTICLE 3
                                    COVENANTS

     Section 3.1 Covenants. The Iowa Tribe covenants and agrees as follows:


                                       4

<PAGE>

     (a)  Additional Documents. It shall or shall cause Iowa Corp to execute any
          additional instruments as may be reasonably required by Lakes
          Consulting to carry out the intent of any of the Transaction Documents
          or to perfect or give further assurance of any of the rights granted
          or provided for under such Transaction Documents.

     (b)  Non-Impairment. It shall not and shall not permit Iowa Corp or any of
          its other governmental instrumentalities or subsidiaries to enact any
          law, ordinance, rule or regulation impairing the rights or obligations
          of any Iowa Entity or any of Lakes Consulting or its respective
          Affiliates under any of the Transaction Documents.

     (c)  Records. It shall or shall cause Iowa Corp to maintain or cause to be
          maintained full and accurate accounts and records for any particular
          Gaming Project and its Project Facilities according to GAAP.

     (d)  No Liens. Except as otherwise expressly permitted by the Transaction
          Documents, it shall not and shall not permit Iowa Corp or any of its
          other governmental instrumentalities or subsidiaries to cause or
          voluntarily permit any lien or encumbrance to be created on the
          Project Facilities for any Gaming Project, any Gaming Project's Gaming
          Facility site or any proceeds of any Gaming Project Permanent
          Financing.

     (e)  No Tax. It shall not and shall not permit Iowa Corp or any of its
          other governmental instrumentalities or subsidiaries to impose any
          tax, fee or assessment on any of Lakes Consulting, its respective
          Affiliates, any Contractor, any Gaming Project and its Project
          Facilities, and/or any of the Transaction Documents other than the
          fees and assessments described in clause (c) of the definition of
          "Costs of Operations" contained in the Consulting Contract.

     (f)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all Gaming Projects shall be owned and
          operated by Iowa Corp; provided that a Gaming Project may be owned and
          operated by another subsidiary of the Iowa Tribe so long as prior to
          acquiring such ownership, (i) such subsidiary shall have entered into
          a consulting agreement and related documents with Lakes Consulting
          and/or its Affiliates on the same terms and conditions as are set
          forth in the Consulting Agreement and the Transaction Documents
          related thereto; (ii) Lakes Consulting shall have received the
          following, each in form and substance reasonably acceptable to it:
          (aa) certified copies of the organizational documents of the new
          subsidiary, together with reasonable evidence that such subsidiary is
          wholly owned by the Iowa Tribe, (bb) new Resolutions of Limited Waiver
          with respect to all of such documents and agreements from each of the
          new subsidiary and the Iowa Tribe


                                       5

<PAGE>

          containing substantially the same resolutions and terms as set forth
          in the Resolutions of Limited Waiver received by Lakes Consulting in
          connection with the execution of the original Transaction Documents,
          (bb) legal opinions from counsel to each of the new subsidiary and the
          Iowa Tribe with respect to the such new documents and agreements
          containing substantially the same opinions as provided to Lakes
          Consulting in connection with the execution of the original
          Transaction Documents, and (cc) the Iowa Tribe shall have executed and
          delivered an amendment to this Agreement incorporating all such new
          documents and agreements as additional "Transaction Documents"
          hereunder and such projects and related assets shall be subject to the
          same terms and restrictions set forth herein; and (iii) at the time of
          satisfaction of the foregoing conditions, no "Event of Default" by any
          Iowa Entity under the Transaction Documents has occurred and is
          continuing.

                                    ARTICLE 4
                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by the Iowa Tribe exists. As used in this paragraph,
          the term "Material Breach" shall mean any of the following
          circumstances (i) material failure of the Iowa Tribe to perform a
          material obligation hereunder or any other Transaction Document to
          which it is a party, or (ii) any representation or warranty made
          pursuant to Section 2.1 hereof proves to be knowingly false or
          erroneous in any material way when made or at any time shall fail to
          be true and correct in all material respects.

     (b)  The Iowa Tribe violates any of the covenants in Section 3.1 of this
          Agreement, and after sixty (60) days have passed following a request
          by Lakes Consulting to such Iowa Entity to cure the violation, during
          which the violation has not been cured.

     (c)  The Iowa Tribe has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of such entities property; or (iii) suffered an
          assignment for the benefit of creditors.

     (d)  The Iowa Tribe is no longer an Indian tribe eligible to conduct gaming
          within the meaning of IGRA.


                                       6

<PAGE>

     Section 4.2 Cure of Event Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to the Iowa Tribe of such default and,
if it is possible for such party to cure the Event of Default, it shall have
thirty (30) days following receipt of notice to effect a cure; provided,
however, that if the nature of such breach (but specifically excluding breaches
curable by the payment of money) is such that it is not possible to cure such
breach within thirty (30) days, such thirty-day period shall be extended for so
long as the Iowa Tribe shall be using diligent efforts to effect a cure thereof
but no more than an additional sixty (60) days. Upon the occurrence of any of
the events described in Section 4.1 and during any applicable cure period, Lakes
Consulting may suspend its performance under the Transaction Documents. The
discontinuance or correction of an Event of Default shall constitute a cure
thereof. If the Iowa Tribe fails to cure the Event of Default within the 30-day
period, Lakes Consulting may take any one or more of the following actions: (a)
suspend all performance of Lakes Consulting under the Transaction Documents; (b)
declare all obligations of any Iowa Entity under the Transaction Documents to be
immediately due and owing, (c) terminate the Consulting Contract; and/or or (d)
pursue any other remedy available at law, in equity or by agreement, subject to
the provisions of Article 5 hereof.

                                    ARTICLE 5
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                          JURISDICTION; GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their


                                       7

<PAGE>

          appointment, select a third neutral arbitrator. In the event that they
          are unable to do so, the parties or their attorneys may request the
          American Arbitration Association to appoint the third neutral
          arbitrator. Prior to the commencement of hearings, each of the
          arbitrators appointed shall provide an oath or undertaking of
          impartiality.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 5 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  The Iowa Tribe hereby expressly waives, and also waives its right to
          assert, sovereign immunity and any and all defenses based thereon with
          respect to any Claims; and such parties further hereby consents to (i)
          binding arbitration under the Commercial Arbitration Rules of the
          American Arbitration Association, (ii) to empowering the arbitrators
          to take the actions and enforce the judicial remedies described in the
          Iowa Tribe Resolution of Limited Waiver of Sovereign Immunity,
          Resolution I-05-08, dated January 27, 2005 issued in connection with
          the execution of the Transaction Documents (the "Resolution of Limited
          Waiver"), and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.


                                       8

<PAGE>

     (g)  To the extent lawful in connection with any such Claims, the Iowa
          Tribe expressly waives the application of the doctrines of exhaustion
          of tribal remedies or comity that might otherwise require that Claims
          be heard first in tribal court or other tribal forum of the Iowa
          Tribe. The waiver set forth herein only extend to claims or
          proceedings brought by Lakes Consulting and its Affiliates and any
          award of damages against the Iowa Tribe or its Affiliates shall be
          payable solely out of the Collateral (as defined in the Resolution of
          Limited Waiver) whether now or hereafter owned by Iowa Corp, any other
          Iowa Entity or their Affiliates.

     (h)  The Iowa Tribe, on behalf of itself and each of its Affiliates, agrees
          that any arbitration proceeding hereunder may be consolidated with any
          other arbitration proceeding that any of Lakes Consulting or its
          respective Affiliates may bring against Iowa Corp or any other
          Affiliates of the Iowa Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Consulting may assign this
Agreement to a wholly owned subsidiary without the consent of the Iowa Tribe;
provided further that Lakes Consulting, as applicable, shall remain obligated
for the performance of its subsidiary hereunder. Other than as expressly
provided in this Section 6.1, any attempted assignment or subcontracting without
prior written consent shall be void. Subject to the preceding requirements, this
Agreement is binding upon and inures to the benefit of the parties and their
respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:


                                       9

<PAGE>

     If to Iowa Tribe:   Iowa Tribe of Okalhoma
                         A federally recognized Indian tribe
                         RR 1, P.O. Box 721
                         Perkins, OK 74059
                         Attn: Chairman

     With a Copy to:     David McCullough, Esq.
                         Doerner, Saunders, Daniel & Anderson, L.L.P.
                         211 N. Robinson Ave. Suite 501
                         Oklahoma City, OK 73102-7112

                         (copy to counsel does not constitute notice to a party)

     If to Lakes:        Lakes Iowa Consulting, LLC
                         130 Cheshire Lane
                         Minnetonka, MN 55305
                         Attn: Timothy J. Cope

     With a Copy to:     Kevin C. Quigley, Esq.
                         Hamilton Quigley Twait & Foley PLC
                         W1450 First National bank Building
                         332 Minnesota Street
                         St. Paul, MN 55101-1314

          and            Brian J. Klein, Esq.
                         Maslon, Edelman, Borman & Brand, LLP
                         3300 Wells Fargo Center
                         90 South Seventh Street
                         Minneapolis, MN 55402-4140
                         (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.


                                       10

<PAGE>

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project.

                            [Signature Page Follows]


                                       11

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        IOWA TRIBE OF OKLAHOMA
                                        A FEDERALLY RECOGNIZED TRIBE


                                        By  /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By  /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA CONSULTING, LLC


                                        By  /s/ Timothy Cope
                                            ------------------------------------
                                            Timothy J. Cope
                                        Its: President and Chief Financial
                                             Officer

        [Signature Page to Iowa Tribal Agreement - Consulting - Cimarron]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.127
<SEQUENCE>62
<FILENAME>c92713exv10w127.txt
<DESCRIPTION>MANAGEMENT AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.127

                              MANAGEMENT AGREEMENT

                              FOR A GAMING FACILITY
                                       AND
                          RELATED ANCILLARY FACILITIES

                                     BETWEEN

                           THE IOWA TRIBE OF OKLAHOMA,
                       A FEDERALLY-CHARTERED CORPORATION,
          CREATED PURSUANT TO THE ACT OF JUNE 26, 1936 (49 STAT. 1967),

                           THE IOWA TRIBE OF OKLAHOMA,
                      A FEDERALLY RECOGNIZED INDIAN TRIBE,

                                       AND

                           LAKES IOWA MANAGEMENT, LLC
                      A MINNESOTA LIMITED LIABILITY COMPANY

                             DATED: JANUARY 27, 2005


                                       -1-

<PAGE>

     THIS MANAGEMENT AGREEMENT, is made and entered into this 27th day of
January, 2005 by and between the Iowa Tribe of Oklahoma, a federally-chartered
corporation ("Iowa Corp"), created pursuant to Section 3 of the Oklahoma Indian
Welfare Act of June 26, 1936 (49 Stat. 1967), as issued on January 4, 1938 by
the Secretary of the Interior and ratified on February 5, 1938 located in Iowa
Indian Country within the physical boarders of the State of Oklahoma, with
business offices located at RR1, P.O. Box 721, Perkins, Oklahoma 74059, the Iowa
Tribe of Oklahoma, a federally-recognized Indian tribe with a Constitution
approved and ratified under the Oklahoma Indian Welfare Act, and Lakes Iowa
Management, LLC, a Minnesota limited liability company ("Lakes"), whose business
office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     A. The Iowa Tribe of Oklahoma ("Iowa Tribe") is a federally recognized
Indian tribe eligible for the special programs and services provided by the
United States to Indian tribes, and is recognized as possessing and exercising
powers of self-government. The Iowa Tribe, pursuant to Section 3 of the Oklahoma
Indian Welfare Act of June 26, 1936 (49 Stat. 1967), was issued a corporate
charter for Iowa Corp on January 4, 1938 by the Secretary of the Interior and
said corporate charter was ratified by the Iowa Tribe on February 5, 1938. Iowa
Corp is vested with sovereign immunity, and is the entity that controls and
manages the economic affairs of the Iowa Tribe, including tribal gaming
operations.

     B. The United States government holds lands in the State of Oklahoma in
trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     C. In compliance with the Indian Gaming Regulatory Act of 1988, P.L.
100-497, 25 U.S.C. Section 2701 et seq. as it may from time to time be amended,
the governing body of the Iowa Tribe has enacted a tribal ordinance regulating
the operation of gaming activities conducted on Iowa Tribe "Indian lands"
(hereinafter referred to as the "Gaming Ordinance"), creating the Iowa Tribe
Gaming Commission, and authorizing Class II and Class III gaming on its "Indian
lands" subject to the provisions of the Gaming Ordinance and a Tribal-State
Compact or gaming procedures issued by the Secretary of the U.S. Department of
the Interior.

     D. The Iowa Tribe, through Iowa Corp, operates an established gaming
operation, known as the Cimarron Casino, located in Perkins, Oklahoma ("Gaming
Facility," as further defined herein). This Gaming Facility conducts Class II
Gaming (and will conduct Class III Gaming activities in the event of federal
agency approval of a Tribal-State Compact between the Iowa Tribe and the State
of Oklahoma permitting such gaming or the Secretarial Procedures are approved
and issued).


                                      -2-

<PAGE>

     E. The Iowa Tribe is committed to using any gaming activities to provide
employment and improve the social, economic, education, and health needs of its
members; to increase the revenues of the tribe; and to enhance the Iowa Tribe's
economic self-sufficiency and self-determination. The gaming operations of the
Iowa Tribe are expected to generate substantial revenues for Iowa Corp, and
therefore significantly improve the social, economic and health conditions of
present and future tribal members, while strengthening the Iowa Tribe's overall
economic self-sufficiency and self-determination.

     F. Iowa Corp presently lacks the resources to operate a gaming operation at
the Gaming Facility on its own and desires to retain the services of a
management company, with knowledge and experience in the gaming industry, to
manage and operate certain of its gaming operations and related resort
facilities.

     G. Lakes has represented to Iowa Corp that it has the managerial capacity
to commence operation of the Gaming Facility and Ancillary Facilities (as
defined herein); and Iowa Corp has selected Lakes, and Lakes agrees, to provide
the management expertise necessary to the conducting of successful tribal gaming
operations at the Gaming Facility and the successful operation of its Ancillary
Facilities.

     H. This Management Agreement shall become effective when all the necessary
approvals listed in Section 2.19 are received (the "Effective Date") and shall
continue for a term as described in Section 2.19, unless otherwise provided in
this Management Agreement.

     I. This Management Agreement is entered into pursuant to the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as that
statute may be amended. All gaming conducted at the Gaming Facility (as defined
herein) will at all times comply with the IGRA, applicable tribal law and the
Tribal-State Compact or gaming procedures issued by the Secretary, if any.

     J. Any dispute regarding this Management Agreement between the parties or
any other Transaction Documents is to be subject to the dispute resolution and
governing law provisions contained herein, as well as the Resolutions of Limited
Waiver attached hereto.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Iowa Corp, the
Iowa Tribe and Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     As they are used in this Management Agreement, the terms listed below shall
have the meaning assigned to them in this Article:


                                      -3-

<PAGE>

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Project's Gaming Facility; provided, however, unless the
parties otherwise agree, the term "Ancillary Facilities" shall not include any
of the Iowa Tribe's existing enterprises consisting of (1) fuel and retail sales
made at the existing "Iowa Mini Mart" located in Carney, OK on Hwy. 177, (2) the
"Perkins Smoke Shop" located on West Freeman Ave. in Perkins, OK or (3) the
"Bah-Kho-Je Gallery and RV Park" located on Hwy. 33 in Perkins, OK currently
operated by Iowa Corp.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Class II Gaming" means games as defined in 25 U.S.C. Section 2703(7)(A),
as such law may be amended and as defined by the National Indian Gaming
Commission in 25 C.F.R. Section 502.3 and amendments thereto, but only to the
extent such games are authorized by tribal ordinance and licensed by the Gaming
Commission.

     "Class III Gaming" means all gaming that is not Class I or Class II Gaming
as defined in the IGRA, including, but not limited to, the forms of gaming
listed as Class III games by the National Indian Gaming Commission in 25 C.F.R.
Section 502.4 and amendments thereto, but only to the extent such gaming is
allowed by a Tribal-State Compact or gaming procedures issued by the Secretary,
tribal ordinance, and licensed by the Gaming Commission.

     "Commencement Date" means the first day that Lakes is legally able to
commence management of the Class II and/or Class III gaming operations conducted
at the Project's Gaming Facility under all Legal Requirements.

     "Costs of Gaming Operation" means the total of all expenses for the
operation of the Class II and/or Class III Gaming activities conducted at the
Project's Gaming Facility pursuant to Generally Accepted Accounting Principles
("GAAP"), including but not limited to the following: (1) fees imposed upon the
Gaming Facility by the National Indian Gaming Commission based upon its gross
receipts from Class II and/or Class III Gaming activities; (2) any contributions
and license/regulatory fee reimbursements payable to the State pursuant to a
Tribal-State Compact or all amounts required to be paid to any local
governmental entity under any agreement to mitigate off-reservation impacts
related to the Gaming Facility; (3) the amount, if any, required by a
Tribal-State Compact to fund or support programs for the treatment and
assistance of compulsive gamblers and for the prevention of compulsive gambling;
(4) license or other fees for


                                      -4-

<PAGE>

background investigations upon "key employees" and "primary management
officials" as defined in 25 C.F.R. Section 502.14 and Section 502.19; (5)
depreciation and amortization applicable to the Gaming Facility based upon an
assumed thirty (30) years life consistent with GAAP, and depreciation and
amortization of all other assets (including without limitation all capital
replacements and improvements, and fixtures, furnishings and equipment) located
therein in accordance with GAAP; (6) costs of administration, recruiting,
hiring, firing and training employees working in or for the Gaming Facility's
Class II and/or Class III Gaming activities; (7) compensation and benefits to
Gaming Facility employees; (8) reasonable and customary regulatory fees imposed
on the Gaming Facility by the Gaming Commission (which amounts shall be subject
to the provisions of Section 5.1 contained herein), (9) management fees to be
paid Lakes under Section 5.5(b) hereof; and (10) total gaming-related costs,
fees and expenses, including, without limitation: materials, supplies,
inventory, utilities, repairs and maintenance (excluding capital replacements,
the costs of which shall be amortized as hereinabove provided), insurance and
bonding, marketing, advertising, annual audits, accounting, legal or other
professional and consulting services, security or guard services, and such other
costs, expenses or fees necessarily, customarily and reasonably incurred in the
operation of the Class II and/or Class III Gaming activities conducted at the
Gaming Facility, and reasonable and necessary travel expenses incurred
subsequent to the Commencement Date for officers and employees of Lakes and
authorized representatives of Iowa Corp in connection with the Gaming Facility's
operations; provided, however, that "Costs of Gaming Operation" shall
specifically not include any license fees or costs of Lakes or its employees in
connection with licensing with either the NIGC or Gaming Commission.

     "Costs of Ancillary Operations" means all expenses and costs pursuant to
Generally Accepted Accounting Principles incurred in operating the Project's
Ancillary Facilities in which neither Class II Gaming nor Class III Gaming is
conducted, including, without limitation: (1) depreciation and amortization
applicable to such non-gaming facilities based upon an assumed thirty (30) years
life consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(2) all employment costs relating to non-gaming employees working in or for such
commercial business facilities; (3) management fees to be paid Lakes under
Section 5.5(b) hereof; (4) non-gaming supplies and materials, insurance and
other non-gaming costs reasonably and customarily incurred in operation of the
Ancillary Facilities in which neither Class II nor Class III Gaming may be
conducted.

     "Dominion Account" shall have the meaning described in Section 2.8(a)
herein.

     "Dominion Account Agreement" shall mean the Dominion Account Agreement to
be executed by Iowa Corp in favor of the Lakes in a form to be agreed to by Iowa
Corp and Lakes together with all amendments, substitutions and renewals thereof.

     "Effective Date" means the effective date of this Management Agreement as
determined pursuant to Section 2.19 herein.


                                      -5-

<PAGE>

     "Fiscal Year" means the accounting year used for the operation of the
Project as agreed upon by Lakes and Iowa Corp.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project in accordance with the
standards set forth in this Management Agreement, including, without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project in accordance with the standards set forth in this
     Management Agreement.

     "Gaming Commission" means the Iowa Tribe Gaming Commission established, or
to be established, by the Gaming Ordinance, as amended (which ordinance must be
approved by the NIGC), with authority to license and regulate gaming activities
on "Indian lands" upon which the Iowa Tribe conducts gaming activities under
IGRA and which is a subordinate governmental entity of the Iowa Tribe and is
entitled to all sovereign governmental immunity of the tribe.

     "Gaming Facility" means the Cimarron Casino and all its buildings,
structures and improvements, together with all furniture, fixtures and equipment
and personal property (whether tangible or intangible) to be used in connection
with the operation of Class II Gaming and/or Class III Gaming activities on the
Gaming Facility Site, each whether now existing or hereafter construed or
acquired.

     "Gaming Facility Site" shall mean the lands to be used as the site for
constructing the Gaming Facility described on attached EXHIBIT A, including the
land upon which the Project's Class II and/or Class III Gaming activities are
conducted (which is land upon which Class II


                                      -6-

<PAGE>

and/or Class III Gaming may legally be conducted under IGRA and the Tribal-State
Compact).

     "Gaming Ordinance" means the tribal ordinance enacted by the governing body
of the Iowa Tribe and approved by the NIGC in compliance with the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as it may
from time to time be amended, regulating the operation of gaming activities
conducted on Iowa Tribe "Indian lands", creating the Iowa Tribe Gaming
Commission, and authorizing Class II and Class III gaming on its "Indian lands"
subject to the provisions of the Gaming Ordinance and a Tribal-State Compact or
gaming procedures issued by the Secretary of the U.S. Department of the
Interior.

     "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession.

     "Governmental Authorities" means the United States, the BIA, the State, the
Iowa Tribe and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming and/or Class III Gaming at
the Gaming Facility, the operation of the Project Facilities, or Iowa Corp's,
the Iowa Tribe's or Lakes' obligations under this Management Agreement or any
Transaction Document.

     "Gross Gaming Revenues" means the Project's total revenue from Class II
and/or Class III Gaming activities (excluding any insurance proceeds received
other than business interruption insurance proceeds and insurance proceeds
received to reimburse the Project for any claims included, or to be included, as
Costs of Gaming Operations).

     "Gross Ancillary Revenues" means the Project's total receipts from the sale
or rental of food, beverages, souvenirs, hotel facilities, equipment and all
other goods and services supplied for non-Class II and/or non-Class III Gaming
activities at the Ancillary Facilities that are incidental to the operation of
the Project (excluding any insurance proceeds received other than business
interruption insurance proceeds and insurance proceeds received to reimburse the
Enterprise for any claims included, or to be included, as Costs of Ancillary
Operations).

     "Gross Total Revenues" means the total of Gross Gaming Revenues and Gross
Ancillary Revenues of the Project.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.


                                      -7-

<PAGE>

     "Indemnity Agreement" shall mean the Indemnity Agreement between Iowa Corp,
the Iowa Tribe and Lakes described in Section 7.5 in the form agreed to by the
parties, together with all amendments, substitutions and renewals thereof.

     "Legal Requirements" means any and all present and future judicial,
administrative, and federal, state, local or tribal rulings or decisions, and
any and all present and future federal, state, local and tribal laws,
ordinances, rules, regulations, permits, licenses and certificates, in any way
applicable to Iowa Corp, the Iowa Tribe, Lakes, the Gaming Facility Site, the
Project Facilities, and the Project, including without limitation, IGRA, the
Tribal-State Compact, and the Gaming Ordinance.

     "Limited Recourse" means that all liabilities or obligations of Iowa Corp
or the Iowa Tribe related to this Management Agreement, the Operating Note, any
Transaction Documents, the Project Facilities, or the Project contemplated by
this Management Agreement, and any related awards, judgments or decrees, shall
be payable solely out of the undistributed and future Gross Total Revenues of
the Project or any other gaming project and any ancillary facilities related
thereto owned directly or indirectly by Iowa Corp or the Iowa Tribe except and
excluding the first four million dollars ($4,000,000) from the Project for each
twelve (12) month period following the Commencement Date (as defined herein),
and shall be a limited recourse obligation of Iowa Corp or the Iowa Tribe, with
no recourse to any of Iowa Corp's or the Iowa Tribe's assets other than such
undistributed and future Gross Total Revenues of the Project or any other gaming
project and any ancillary facilities related thereto owned directly or
indirectly by Iowa Corp or the Iowa Tribe, and except as to: (i) the Furnishings
and Equipment of the Project or any other gaming project and any ancillary
facilities related thereto owned directly or indirectly by Iowa Corp or the Iowa
Tribe, (ii) the security interest in the Gross Total Revenues pursuant to the
Dominion Account Agreement and any security interest or liens in any Furnishings
and Equipment of the Project, (iii) any mortgages or deeds of trust on fee lands
upon which the Project is located, and (iv) as permitted under Section 10.3(d)
herein and by Paragraph 5(c) of the Resolutions of Limited Waiver attached
hereto as Exhibit B and C. In no event, except as permitted under Section
10.3(d) herein and by Paragraph 5(c) of the Resolutions of Limited Waiver
attached hereto as Exhibit B), shall Lakes have recourse to (a) the physical
property of the Project Facilities (other than Furnishings and Equipment and to
any mortgages or deeds of trust on fee lands upon which the Project is located
subject to the security interest securing the Operating Note), (b) Net Total
Revenue distributions already received by Iowa Corp from the Project and made to
the Iowa Tribe in accordance with this Management Agreement and/or the Dominion
Account Agreement, (c) assets of the Iowa Corp or the Iowa Tribe purchased with
such Net Total Revenue distributions, or (d) any other asset of Iowa Corp or the
Iowa Tribe (other than such undistributed and future Gross Total Revenues of the
Project or any other gaming project and any ancillary facilities related thereto
owned directly or indirectly by Iowa Corp or the Iowa Tribe, the Furnishings and
Equipment or any other gaming project and any ancillary facilities related
thereto owned directly or indirectly by Iowa Corp or the Iowa Tribe and any
mortgages or deeds of trust on fee lands upon which the Project is located).


                                      -8-

<PAGE>

     "Lakes" means Lakes Iowa Management, LLC, a Minnesota limited liability
company with its business office located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

     "Management Agreement" shall mean this Management Agreement for a Gaming
Facility and Related Ancillary Facilities between the parties that deals with
the management of the Project and its operations, as the same may be amended or
modified from time to time, subject to all Legal Requirements.

     "Material Breach" shall have the meaning described in Section 6.1 herein.

     "Minimum Guaranteed Monthly Payments" means the minimum monthly amount
payable to Iowa Corp, which amount shall be determined pursuant to Section 5.3
hereof.

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to the IGRA.

     "Net Gaming Revenues" means Gross Gaming Revenues less (1) amounts paid out
as, or paid for, prizes; and (2) Costs of Gaming Operation (excluding management
compensation as set forth in Section 5.5 (b) herein).

     "Net Ancillary Revenues" means Gross Ancillary Revenues less Costs of
Ancillary Operations.

     "Net Total Revenues" means the sum of Net Gaming Revenues plus Net
Ancillary Revenues.

     "NIGC Approval" means written approval by the NIGC Chairman of this
Management Agreement.

     "Notes and Security Provisions" shall have the meaning set forth in Section
6.4(b) hereof.

     "Operating Note" means the promissory note evidencing the Minimum
Guaranteed Payment Advances under Section 5.3(b) herein and the Working Capital
Advances under Section 5.7 herein made by Lakes, substantially in a form to be
agreed to by Iowa Corp and Lakes, together with all amendments, substitutions
and renewals thereof.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the Cimarron Casino business enterprise of Iowa Corp
created to engage in Class II and/or Class III Gaming at the Gaming Facility
located at the Gaming Facility Site,


                                      -9-

<PAGE>

and which shall include any other lawful commercial activity conducted in the
Ancillary Facilities including, but not limited to, operating and managing
office space, kids arcade, child care facility, hotel with swimming pool and
golf course, restaurant, RV park, retail stores, entertainment facilities, or
the sale of fuel, food, beverages, alcohol, tobacco, gifts, and souvenirs, and
any other amenities which the parties mutually agree should be included as part
of the Project.

     "Project Accounts" shall have the meaning described in Section 2.8 herein.

     "Project Facilities" means the permanent buildings, structures and
improvements used by the Project for its gaming and ancillary operations,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operations,
each whether now existing or hereafter constructed or acquired.

     "Replacement" shall have the meaning described in Section 6.4(c) herein.

     "Resolutions of Limited Waiver" refers to the limited waiver of sovereign
immunity to be adopted by the Iowa Tribe and Iowa Corp in the form attached
hereto as EXHIBIT B AND C and evidencing all approvals required pursuant to the
governing documents of each and applicable law (it being understood and agreed
that Iowa Corp and the Iowa Tribe shall take such further actions to ratify,
adopt and enforce the attached form of Resolutions of Limited Waiver as shall be
required by law or regulation due to future changes in its own legal or
governing status to fully preserve its stated intent).

     "Scope of Project Description Sheet" shall mean the Scope of Project
Description Sheet dated January 27, 2005, which substantially describes the
scope of the Project currently contemplated by Iowa Corp and Lakes.

     "Secretary" means the Secretary of the Interior of the United States, or
her appropriately designated representative/agent.

     "Security Agreement" shall mean the Security Agreement to be executed by
the Iowa Tribe and Iowa Corp in favor of Lakes in a form to be agreed to by the
Iowa Tribe, Iowa Corp and Lakes, together with all amendments, substitutions and
renewals thereof.

     "State" means the State of Oklahoma wherein the Gaming Facility Site is
located.

     "Transaction Documents" shall have the meaning described in Section 9.12(b)
herein.

     "Tribal Agreement" shall mean the agreement between the Iowa Tribe and
Lakes or its Affiliates described in Section 9.12(i).

     "Tribal-State Compact" means an agreement which may be entered into between
the Iowa Tribe and the State concerning Class III Gaming and any amendments or
other modifications


                                      -10-

<PAGE>

thereto, which agreement must be approved by the Secretary and published in the
Federal Register.

     "UCC Financing Statements" means UCC-1 financing statements naming the Iowa
Tribe and/or Iowa Corp as debtor and naming Lakes or any third party lenders
providing funding to the Project as a secured party, in the form approved by the
parties.

     "Working Capital Advances" shall have the meaning described in Section 5.7
herein.

                                    ARTICLE 2
                           AUTHORITY AND DUTY OF LAKES

     2.1 Appointment as Agent. Subject to the terms and conditions of this
Management Agreement, Iowa Corp hereby appoints Lakes to act as the exclusive
agent for Iowa Corp for all matters related to the management of the operations
of the Project Facilities and the Project during the term of this Management
Agreement. Lakes' agency responsibilities shall include, among other things,
maintenance and improvement of the Project Facilities, management and operation
of the Project's Class II and/or Class III Gaming activities within the Gaming
Facility, and all other revenue producing activities that are conducted by the
Project in the Ancillary Facilities, such as the sale of food and beverages.
Lakes accepts such appointment as Iowa Corp's exclusive agent for the term of
this Management Agreement. Subject to the provisions of this Management
Agreement and specifically the restrictions in this Article 2 and the budget
provisions in Article 5 hereof, Lakes shall have, and Iowa Corp does hereby
grant to Lakes, the power and authority as agent for Iowa Corp, to exercise the
rights of Iowa Corp under and to execute, modify, or amend any contracts
associated with the operations of the Project Facilities and Project (excluding
this Management Agreement or compacts or other agreements with the State or any
other governmental agency, which shall remain the sole and exclusive authority
of the Iowa Tribe), including, without limitation, purchase orders, equipment
and retail leases, contracts for services, including utilities, and maintenance
and repair services, relating to the operation of the Project Facilities and the
Project except for real estate agreements and contracts (excluding retail
leases); provided, however, that in no event shall Lakes execute any contracts
or agreements which require payments exceeding $250,000 in the aggregate, or
which have a term exceeding one (1) year. The duties and authorities of Lakes
shall be subject in all events to receipt of all necessary licenses, consents or
approvals from the Gaming Commission.

     2.2 Limitations. Lakes shall have no authority to waive or impair Iowa
Corp's sovereign immunity. Except as stated herein, Lakes shall have no
authority as Iowa Corp's agent under this Management Agreement without the prior
written approval of Iowa Corp (not to be unreasonably withheld): (a) to incur
costs which are materially in excess of the expenditures to be agreed upon in
the operating budget or the capital expenditure budget to be developed pursuant
to Section 5.1 hereof; (b) to sell, encumber or otherwise dispose of any
personal property or equipment located in the Project Facilities, except for
inventory sold in the regular course of


                                      -11-

<PAGE>

business and other items which must be replaced due to age, obsolescence, or
wear and tear; (c) to purchase any goods or services from Lakes or any of Lakes'
affiliated companies as a Costs of Gaming Operations or Costs of Ancillary
Operations unless such arrangement is specifically approved in writing by Iowa
Corp. Except as specifically authorized in this Article 2, Lakes shall not hold
itself out to any third party as the agent or representative of Iowa Corp.

     2.3 Lakes' Authority and Responsibility.

          (a) Lakes, through the Project's general manager, shall conduct and
direct all business and affairs in connection with the day-to-day operation,
management and maintenance of the Project and the Project Facilities, including
the establishment of operating days and hours. It is the parties' intention that
the Project Facilities be open 24 hours daily, seven days a week. Lakes is
hereby granted the necessary power and authority to act, through the Project's
general manager, in order to fulfill all of its responsibilities under this
Management Agreement. Nothing herein grants or is intended to grant Lakes a
titled interest to the Project Facilities or to the Project. Lakes hereby
accepts such retention and engagement. Iowa Corp shall have the sole proprietary
interest in and ultimate responsibility for the conduct of all Class II and/or
Class III Gaming conducted by the Project, subject to the rights and
responsibilities of Lakes under this Management Agreement.

          (b) In managing, operating, maintaining and repairing the Project and
the Project Facilities under this Management Agreement, Lakes' duties, through
the Project's general manager, shall include, without limitation, the following:
(i) Lakes shall use reasonable measures for the orderly physical administration,
management, and operation of the Project and the Project Facilities, including
without limitation cleaning, painting, decorating, plumbing, carpeting, grounds
care and such other maintenance and repair work as is reasonably necessary; (ii)
Lakes shall comply with all duly enacted statutes, regulations and ordinances of
the Iowa Tribe; and (iii) Lakes shall comply with all applicable provisions of
the Internal Revenue Code including, but not limited to, the prompt filing of
any cash transaction reports and W-2G reports that may be required by the
Internal Revenue Service of the United States or under the Tribal-State Compact.

     2.4 Compliance with Laws.

          (a) Lakes, through the Project's general manager, shall assist Iowa
Corp in compliance with all terms and conditions of the Tribal-State Compact,
the Gaming Ordinance, IGRA and any gaming regulations (collectively, the
"Governing Laws"), the violation of which would materially impair the conduct of
gaming permitted to be conducted under IGRA by the Project. Without limiting the
foregoing, Lakes shall also supply the NIGC with all information necessary to
comply with the National Environmental Policy Act, as it may be amended from
time to time, and comply with NIGC's regulations relating thereto. Lakes shall
ensure compliance with requirements concerning the reporting and withholding of
taxes with respect to the winnings from gaming operations pursuant to this
Management Agreement. Iowa Corp agrees to cooperate with Lakes and aid Lakes in
ensuring compliance with the foregoing laws, regulations and


                                      -12-

<PAGE>

requirements. In managing and operating the Project Facilities and the Project,
Lakes shall comply with all laws, rules, regulations, ordinances, compacts and
all other agreements affecting the same, including without limitation the
Governing Laws.

          (b) The parties shall use their best efforts to obtain all necessary
approvals of Governmental Authorities of this Management Agreement.

     2.5 Security. Lakes shall provide for appropriate security for the
operation of the Project Facilities. All aspects of Project Facilities security
shall be the responsibility of Lakes. Upon agreement of Iowa Corp and Lakes, any
security officer may be bonded and insured in an amount commensurate with his or
her enforcement duties and obligations. The cost of any charge for security and
increased public safety services will be a Costs of Gaming Operations or Costs
of Ancillary Operations, as appropriate.

     2.6 Accounting, Financial Records, and Audits.

          (a) Lakes, through the Project's general manager, shall maintain full
and accurate records and books of account for operations of gaming activities
and related ancillary operations managed by Lakes. Such records shall be
maintained at Lakes' office located within the Project Facilities and shall be
made available for immediate inspection and verification at all times.
Inspection or verification by the Governmental Authorities shall be coordinated
through the Gaming Commission.

          (b) Prior to the Commencement Date, and subject to the approval of
Iowa Corp and the Gaming Commission, which approvals shall not be unreasonably
withheld and which shall occur prior to the Commencement Date, Lakes, through
the Project's general manager, shall establish and maintain such approved
accounting systems and procedures that shall: (i) include procedures for
internal accounting controls; (ii) permit the preparation of financial
statements in accordance with GAAP; (iii) be susceptible to audit; (iv) allow
the Project, Iowa Corp and NIGC to calculate the annual fee under 25 CFR Section
514.1; (v) permit the calculation of Lakes' compensation under Section 5.5(b)
herein; and (vi) provide for the allocation of operating expenses or overhead
expenses among Iowa Corp, the Project and Lakes, or any other user of shared
facilities or services. Supporting records and the agreed upon accounting system
shall be sufficiently detailed to permit the calculation and payment of Lakes'
compensation hereunder and to permit the performance of any fee or contribution
computations required under IGRA, a Tribal-State Compact and other applicable
laws or regulations.

          (c) Net Gaming Revenues, Net Ancillary Revenues, and Net Total
Revenues will be calculated by Lakes, through the Project's general manager, for
purposes of distribution monthly in accordance with Section 5.5 and copies of
such calculations shall be promptly supplied to Iowa Corp as required by Section
5.4 herein.

          (d) All records shall be maintained so as to permit the preparation of
financial


                                      -13-

<PAGE>

statements in accordance with generally accepted accounting principles
consistently applied and in accordance with procedures to be mutually agreed
upon by the parties. Lakes, through the Project's general manager, shall, as a
Costs of Gaming Operations, furnish to Iowa Corp and the Gaming Commission,
monthly financial reports in accordance with Section 5.4 herein. Such reports
shall provide reasonable detail as requested by Iowa Corp and the Gaming
Commission with respect to revenues and expenses of each profit center of the
Project. In addition, all gaming operations conducted within the Gaming Facility
shall be subject to special outside annual audits, which the Gaming Commission
may cause to be conducted, and all contracts or subcontracts for supplies,
services or concessions for a contract amount in excess of $25,000 annually
relating to gaming activities within the Gaming Facility shall be subject to
audits, which audits the Gaming Commission may cause to conducted by an
independent certified public accountant with more than five (5) years experience
in audits of gaming enterprise operations selected and approved by the Gaming
Commission. The cost of such audits and audit reports (including the annual
audit under Section 5.6 herein) shall constitute Costs of Gaming Operation. The
Lakes shall make any reports or presentations to Iowa Corp officials as are
requested.

     2.7. Cash Monitoring. Lakes, through the Project's general manager, will
promulgate, and all parties and their respective employees, agents, and
representatives will obey operational policies consistent with the Gaming
Ordinance respecting the handling of cash, security systems, and access to cash
cage, counting rooms, and other places where cash is kept and handled. Iowa Corp
and the Gaming Commission and its authorized representatives shall have the
right to monitor and investigate systems for cash management implemented by
Lakes and to verify daily Gross Gaming Revenues, Gross Ancillary Revenues, and
Gross Total Revenues.

     2.8 Bank Accounts, Reserve Funds and Permitted Investments.

          (a) On or prior to the Commencement Date, Iowa Corp and Lakes shall
execute the Dominion Account Agreement and create the Dominion Account
("Dominion Account") described therein. Gross Gaming Revenues and Gross
Ancillary Revenues shall be deposited daily into the Dominion Account, which
shall be subject to the lien of the Dominion Account Agreement and established
at a commercial bank, of Iowa Corp's choice, organized under the laws of the
United States of America or any state thereof provided such bank is a member of
the Federal Deposit Insurance Corporation and has combined capital, undivided
profits and surplus of at least $500,000,000. Lakes shall also establish other
segregated bank accounts with the approval of Iowa Corp for the operation of the
Project (the "Project Accounts"), which accounts must indicate the custodial
nature of the accounts. The signatures of authorized representatives of Lakes
shall be the only signatures required to make withdrawals (by check or
otherwise) from such accounts for single withdrawals of less than $250,000,
provided that the monies withdrawn by Lakes are to be used only for the purposes
set forth herein and provided further that if the amount of any single
withdrawal exceeds $250,000 (excluding payout and prizes and transfers to any
designated payroll accounts, taxes, and purchases of cash for day-to-day
operational purposes, or Lakes' compensation under Section 5.5 herein), then the
signature of Iowa Corp's designated representative will also be required.


                                      -14-

<PAGE>

          (b) Lakes agrees that subject to the terms of Sections 5.3(b) and
6.4(b) hereof, Lakes shall make or permit timely transfers from the Dominion
Account to the Project Accounts of all funds needed to pay (i) Costs of Gaming
Operations; (ii) Costs of Ancillary Operations; (iii) required debt service on
the Project Facilities, as well as any other third party loans to which Lakes
has consented in writing pursuant to the terms of this Management Agreement or
other agreement; (iv) the Minimum Guaranteed Monthly Payment; (v) Minimum
Guaranty Payment Advances; and (vi) disbursements required pursuant to Section
5.5 hereof. Upon the termination of this Management Agreement and so long as:
(a) any amounts remain owing to Lakes hereunder or with respect to any related
Transaction Document, and (b) the Project shall continue in operation pursuant
to the terms of Section 6.4 hereof, then Lakes shall continue to permit
transfers from the Dominion Account to the Project Accounts for payment of the
amounts described above, but shall specifically exclude any Costs of Gaming
Operations or Costs of Ancillary Operations otherwise payable to Iowa Corp or
any of its Affiliates with the exception of reasonable gaming license fees and
any costs or expense associated with the provision of reasonable supplies and/or
services provided by Iowa Corp to the Project.

          (c) Surplus funds deposited in the Dominion Account and the Project
Accounts may be invested by Lakes in the following permitted investments: (i) a
money market mutual fund registered under the Investment Company Act of 1940
that invests exclusively in (1) marketable direct obligations issued or
unconditionally guaranteed by the United State Government or issued by an agency
thereof and backed by the full faith and credit of the United States, (2)
commercial paper having, at the time of acquisition, a rating of A-1 or P-1 or
better from either Standard & Poor's Corporation or Moody's Investors Service,
Inc., respectively; or (ii) other investments as may be directed by Lakes with
the prior written consent of Iowa Corp.

     2.9 Enforcement of Rights.

          (a) During the term of this Management Agreement, except as otherwise
provided in Section 2.9 (b) herein, Iowa Corp and Lakes shall mutually agree
with respect to the handling of the defense, prosecution or settlement of civil
disputes with third parties relating to gaming and other management activities
conducted or contracts executed by Lakes, as agent for Iowa Corp. The parties
will assist and cooperate with each other with respect to such third-party
claims and disputes. All uninsured liabilities incurred or expenses incurred by
Iowa Corp and Lakes or any of the employees, officers or directors of any party
in defending such claims by third parties or prosecuting claims against third
parties shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending upon the circumstances and nature of the claim,
except with respect to claims and liabilities resulting from criminal
misconduct, which shall be governed by Article 7 herein.

          (b) All claims brought against Iowa Corp or Lakes or any of the
employees, officers or directors of any party arising out of or relating to
gaming or other ancillary operations conducted pursuant to this Management
Agreement that may be settled and released for a total


                                      -15-

<PAGE>

settlement amount of less than $100,000 may be paid and settled by Lakes on
behalf of Iowa Corp and/or Lakes in accordance with Lakes' good faith business
judgment.

     2.10 Fire and Safety Services. Lakes, through the Project's general
manager, shall be responsible for obtaining adequate coverage for fire and
safety services and may, in its discretion, have such services provided on a
contractual basis by the local fire and police departments. The costs of any
fire and safety protection services shall be appropriately allocated between
Costs of Gaming Operation and Costs of Ancillary Operations, and, if provided by
a department of the Iowa Tribe, shall not exceed the actual cost of providing
such services.

     2.11 Timely Payment of Costs of Gaming Operations and Costs of Ancillary
Operations. Lakes shall be responsible for paying Costs of Gaming Operation and
Costs of Ancillary Operations on behalf of the Project from the bank account(s)
established pursuant to Section 2.8 herein so as to avoid any late-payment
penalties, except those incurred as a result of good faith payment disputes) to
the extent funds of the Project are available; provided, however, that payment
of all such costs (and taxes or similar payments arising from Project
operations) shall be solely the legal responsibility of the Project.

     2.12 Acquisition of Gaming and Other Equipment.

          (a) All gaming equipment shall be acquired by Lakes, as agent for Iowa
Corp, on behalf of the Project from Gaming Commission licensed distributors and
manufacturers.

          (b) All acquisitions of new equipment after the public opening of the
Project Facilities shall be purchased by Lakes as agent for Iowa Corp on behalf
of the Project on a cash on delivery basis, unless otherwise agreed by Iowa
Corp.

     2.13 Hours of Operation. Unless otherwise agreed by the parties, the
Project Facilities shall be operated seven days per week and twenty-four hours
per day, subject to any restrictions in the IGRA, the Gaming Ordinance and a
Tribal-State Compact.

     2.14 Access to Operations. Lakes, through the Project's general manager,
shall provide immediate access by appropriate officials of the Gaming Commission
and Iowa Corp's designated representative to the gaming operation, including all
books and records in addition to those listed in the access requirements set
forth in Sections 2.6 and 2.7 herein.

     2.15 Increased Public Safety Services. The parties agree that increased
actual costs of law enforcement and police protection services required as a
result of Class II and/or Class III Gaming in the Gaming Facility shall be paid
as Costs of Gaming Operation.

     2.16 Advertising. Lakes, through the Project's general manager, shall
contract for and place advertising, subject to prior approval of the general
concepts of the advertising by Iowa Corp. Advertising costs will be included in
the operating budgets prepared in accordance with


                                      -16-

<PAGE>

Article 5 herein.

     2.17 Certain Meetings. The parties agree that, to facilitate oversight of
the activities conducted pursuant to this Management Agreement and to maintain
communication generally between the individuals who will be involved in
supervising those activities, Iowa Corp or its designated representative and the
Lakes' principal individuals will meet at least monthly to review operations of
the Project Facilities and any current issues pertaining thereto.

     2.18 Maintenance. Lakes, through the Project's general manager, will cause
the Project Facilities to be repaired and maintained and operated in a clean,
good and orderly condition. Repairs and maintenance will be paid as Costs of
Gaming Operation if related to the gaming operations of the Project, or as Costs
of Ancillary Operation if related to the other ancillary operations of the
Project.

     2.19 Term. Notwithstanding the date of signature of the parties hereto,
this Management Agreement shall become effective automatically (without need of
amendment, ratification or other action of the parties) upon written approval of
the Gaming Ordinance and this Management Agreement by the Chairman of the
National Indian Gaming Commission. The Commencement Date shall be the first day
upon which Lakes may legally manage the Gaming Facility's gaming operations
under IGRA. Unless sooner terminated as provided herein, this Management
Agreement shall, subject to Legal Requirements, continue for a term of seven (7)
years from the Commencement Date, provided however that the Notes and Security
Provisions, including without limitation, each of (a) the Security Agreement,
Dominion Account Agreement, Indemnity Agreement and the UCC Financing
Statements, and (b) sections 2.8 and Article 7 hereof shall each survive and
remain effective until terminated under Article 6 hereof and the amounts owing
to Lakes or its Affiliate by Iowa Corp under this Management Agreement and
related Transaction Documents have been paid in full.

     2.20 Iowa Corp Representatives. Iowa Corp hereby acknowledges and agrees
that to the extent any authorization, consent or other approval of the Iowa Corp
is required under this Management Agreement or any related Transaction Documents
and Iowa Corp shall provide to Lakes a resolution naming any individual or
individuals authorized to represent Iowa Corp for purposes or for the purpose of
the operation and performance of this Management Agreement and related
Transaction Documents, then Lakes shall be entitled to rely on all decisions,
authorizations, consents, and approvals provided by such individual or
individuals, as applicable, until such time as Iowa Corp shall deliver to Lakes
an additional resolution revoking or otherwise modifying such authority.

     2.21 Gaming Facility Site. Iowa Corp and Lakes mutually agreed that the
site to be used for the Gaming Facility ("Gaming Facility Site") shall be those
lands described on attached EXHIBIT A, (which is land upon which Class II and/or
Class III Gaming may legally be conducted under IGRA and the Tribal-State
Compact).


                                      -17-

<PAGE>

     2.22 Scope of Project. The scope of the Project subject to this Management
Agreement shall be subject to the mutual approval of the parties. It is
contemplated the scope of the Project will be substantially as described on the
Scope of Project Description Sheet dated January 27, 2005, subject to such
changes as may be necessary or appropriate taking into account competitive
conditions, financing and other circumstances. The parties understand that
market, Tribal-State Compact, governmental or other conditions may change and it
may be necessary to expand or decrease the scope of the Project.

     2.23 Non-Encumbering Assets. Iowa Corp and the Iowa Tribe agree not to
encumber any of the assets of the Project Facilities or the Project without the
written consent of Lakes, which consent will not be unreasonably withheld;
except that Iowa Corp shall have the right without the consent of Lakes to grant
security interests in the Project's revenues which are subordinate to Lakes'
interests under this Management Agreement and all related Transaction Documents
pursuant to a subordination agreement in form and substance acceptable to Lakes.
Iowa Corp and the Iowa Tribe agree to enter into a limited, transactional waiver
of sovereign immunity and consent to jurisdiction and arbitration as to Lakes in
connection with this Management Agreement and any related Transaction Documents,
as provided in the Resolutions of Limited Waiver.

                                    ARTICLE 3
                                PERSONNEL MATTERS

     3.1 Employees. All employees involved with operation of the Gaming
Facility's Class II and/or Class III Gaming activities and related ancillary
activities throughout the Project Facilities subject to management by Lakes
under this Management Agreement shall be employees of Iowa Corp. Subject to the
applicable requirements in the Tribal-State Compact, the employment relationship
shall be governed by Iowa Tribe substantive law and any applicable federal law,
subject to the Iowa Tribe's reasonable Indian preference policies, and all
matters will be subject to dispute resolution procedures in the manner described
in this Management Agreement. Lakes, on behalf of the Project, shall be solely
responsible for the hiring, training, promoting, and firing of all such
employees except for the general manager as agreed to by Iowa Corp and Lakes,
whose employment, advancement and termination shall be subject to approval of
Iowa Corp, such approval not to be unreasonably withheld. Lakes shall develop a
policy and procedure in conjunction with Iowa Corp, to implement an executive
development program for employees who are members of the Iowa Tribe whereby
members will be prepared through training and education to assume key management
positions within the gaming and ancillary operations of the Project. All
salaries, wages, employee insurance, worker compensation premiums, employment
taxes, government exactions of any kind related to employment, benefits, and
overhead related to the hiring, supervising, and discharge of employees, will be
Costs of Gaming Operations or Costs of Ancillary Operations, as appropriate.

     3.2 Project Employee Policies. Lakes, through the Project's general
manager, shall prepare a draft of personnel policies and procedures (the
"Project Employee Policies"), including a


                                      -18-

<PAGE>

job classification system with salary levels and scales, which policies and
procedures shall be subject to approval by Iowa Corp. The Project Employee
Policies shall include a grievance procedure in order to establish fair and
uniform standards for the Project employees, which will include procedures for
the resolution of disputes between the Project and Project employees. At a
minimum, the Project Employee Policies shall provide for an employee grievance
process which provides the following:

     A written "Board of Review" process will be created by the Project's
     general manager to provide Project employees with a procedure for bringing
     work related issues to the attention of Project management so they may be
     promptly and permanently resolved in a fair and equitable manner. The Board
     of Review process will be available to all Project employees except: (1)
     employees at the director level and above, and (2) employees discharged for
     actions involving violations of tribal gaming regulations or law, or
     federal, state, or local law. Project employees will be eligible to use the
     Board of Review process if they have: (a) completed thirty (30) work
     shifts, and progressed through the chain of command in their home
     department in the Project, (b) brought the work related issue to the
     attention of the Project's human resources department, and (c) completed a
     Board of Review hearing request form within the allotted time frame. The
     Project's human resources department shall be responsible for selecting
     hearing panel members as outlined in written procedures to be adopted. The
     Board of Review will be empowered to make the full range of decisions
     available and appropriate (i.e. providing back pay and an apology to the
     employee, or upholding the employee's discharge). The Board of Review's
     decision on the work related issue will final and binding, and there will
     be no appeal beyond the Board of Review.

Lakes, through the Project's general manager, shall be responsible for
administering the Project Employee Policies. Any material revisions to the
Project Employee Policies shall not be effective unless they are approved by
Iowa Corp. All such actions shall comply with applicable tribal law, subject to
the applicable requirements in a Tribal-State Compact.

     3.3 Employee Background Checks. A background investigation shall be
conducted by the Gaming Commission in compliance with all Legal Requirements, to
the extent applicable, on each applicant for employment as soon as reasonably
practicable. No individual whose prior activities, criminal record, if any, or
reputation, habits and associations are known to pose a threat to the public
interest, the effective regulation of Class II and/or Class III Gaming, or to
the gaming licenses of Lakes or the Project, or to create or enhance the dangers
of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of Project gaming activities, shall knowingly be employed by the Project
or Iowa Corp. The background investigation procedures employed by the Gaming
Commission shall be formulated in consultation with Lakes and shall satisfy all
regulatory requirements independently applicable to Lakes; provided, however,
that this provision shall not be deemed to limit or impair the exclusive
authority of the Gaming Commission pursuant to the Gaming Ordinance or the
exercise of its discretion thereunder. Any cost associated with obtaining such
background investigations shall constitute Costs of Gaming Operation.


                                      -19-

<PAGE>

     3.4 Iowa Tribe and Indian Preference. Lakes, through the Project's general
manager, shall adhere in regard to recruitment, employment, reduction in force,
promotion, training and related employment actions to a publicly announced
policy and practice of Iowa Tribe Preference and/or any publicly announced
policy of Indian preference, both of which must be reasonably promulgated by the
Iowa Tribe.

     3.5 Conflict of Interest.

          (a) Lakes covenants that it will not unduly interfere with, or attempt
to influence the internal affairs or government decisions of the Iowa Tribe or
any of its Affiliates for its gain or advantage.

          (b) Lakes hereby certifies that no payments have been made or will be
made in the future by Lakes to any tribal official, relative of any tribal
official or government employee for the purpose of obtaining any special
privilege, gain, advantage or consideration for Lakes in connection with this
Management Agreement, except for the fees payable to the Gaming Commission and
amounts payable to Iowa Corp pursuant to this Management Agreement. However,
nothing in this provision shall prohibit Lakes from making contributions to
community organizations within the Iowa Tribe or to the Iowa Tribe for the
purpose of funding community activities.

          (c) No member of the Gaming Commission, or any Iowa Tribe tribal court
official may be employed by Lakes or be a "Party in Interest" as defined in
Section 8.1 (a) herein with respect to this Management Agreement or a gaming
equipment agreement or have any direct or indirect financial interest in the
gaming to be operated pursuant to this Management Agreement. tribal officials
shall not be eligible for employment at the Project Facilities and Project, but
will be eligible to enter into contracts for the provision of goods or services
for the Project Facilities and Project.

          (d) Lakes further agrees to comply with all conflict of interest rules
set forth in regulations or ordinances of the Iowa Tribe.

     3.6 Participation in Tribal Functions. Lakes acknowledges that personnel
who are members of the Iowa Tribe have cultural and religious responsibilities
to perform in regard to tribal rituals and similar activities. Lakes, through
the Project's general manager, will schedule working hours and take other
actions, with the assistance and advice of Iowa Corp, to accommodate tribal
members in performing these responsibilities without affecting their employment
status or position.

                                    ARTICLE 4
                                    INSURANCE

     4.1 Duty to Maintain. Lakes, acting as agent of Iowa Corp, shall maintain
during the course of this Management Agreement, appropriately allocated as a
Cost of Gaming Operation or a


                                      -20-

<PAGE>

Cost of Ancillary Operations, insurance coverages in forms and amounts that will
adequately protect Iowa Corp and Lakes, but in no case less than the amounts set
forth in this Article, or as required by a Tribal-State Compact.

     4.2 Workers' Compensation. Lakes, acting as agent of Iowa Corp, shall
maintain adequate workers' compensation insurance in accordance with all
applicable laws, including employer's liability insurance, in the amounts agreed
to by the Lakes and Iowa Corp, or as required by the Tribal-State Compact.

     4.3 Commercial General Liability. Lakes, acting as agent of Iowa Corp,
shall purchase on Iowa Corp's behalf and maintain commercial general liability
insurance covering operations of the Project, including blanket contractual
liability coverage, broad form property liability coverage, and personal injury
coverage in the amount of $1,000,000 per person/$3,000,000 per occurrence for
bodily injury and $1,000,000 per person/$3,000,000 per occurrence for property
damage, or as required by the Tribal-State Compact or the Gaming Commission.

     4.4 Automobile. Lakes, acting as agent of Iowa Corp, shall maintain
comprehensive automobile liability insurance covering operations of the Project,
including all owned, hired and non-owned automobiles, trucks, buses, trailers,
motorcycles or other equipment licensed for highway use with limits and coverage
approved by Lakes and Iowa Corp.

     4.5 Iowa Corp and Lakes to be Insured. Insurance set forth in Sections 4.3
and 4.4 hereof shall name Iowa Corp and Lakes as insureds, and such policies
shall be endorsed to prohibit the insurer from raising tribal sovereign immunity
as a defense to the payment of claim by the insurer.

     4.6 Property Insurance. Lakes shall also, acting a agent for Iowa Corp,
procure replacement value all-risk casualty and extended hazard insurance in
appropriate coverage amounts which shall insure the Project Facilities and any
fixtures, improvements and contents located therein against lost or damage by
fire, theft and vandalism. Such casualty insurance policy or policies shall name
Iowa Corp, Lakes, and the Project Facilities as insureds. All such casualty
insurance proceeds shall be applied to the immediate replacement of the
applicable Project Facilities' part or fixture, improvements or contents therein
unless the parties agree otherwise. Subject to the terms of Sections 6.4 and 6.6
hereof, any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Dominion Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such excess proceeds
(except business interruption insurance proceeds) shall be excluded from Net
Total Revenues for purposes of calculating the management compensation of Lakes
under Section 5.5(b) hereof.

     4.7 Fidelity Bond. Lakes, acting as agent of Iowa Corp, shall maintain
fidelity bonds on Project employees and in such amounts as Lakes and Iowa Corp
shall deem reasonable.


                                      -21-

<PAGE>

     4.8 Unemployment Insurance. Lakes, acting as agent for Iowa Corp, shall
maintain adequate unemployment compensation/disability insurance with respect to
the Project employees in compliance with the Tribal-State Compact, if
applicable.

     4.9 Evidence of Insurance. From time to time as reasonably requested by
Iowa Corp, Lakes shall supply to Iowa Corp and any necessary Governmental
Authorities copies of the insurance policies applicable to the Project
Facilities or Project operations as required by this Article.

     4.10 Insurance Proceeds. Subject to the terms of Sections 6.4 and 6.6
hereof, any insurance proceeds received with respect to the Project, except as
provided in Section 4.6 hereof, shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided, however, that if there is any insurance recovery for a
claim related to the operation of the Project for which either Iowa Corp or
Lakes has previously paid from its own separate funds, then, to the extent of
amounts paid by either of such parties, the insurance proceeds will be paid over
to them and the balance shall be deposited into the Dominion Account as above.

                                    ARTICLE 5
                     BUDGETS, COMPENSATION AND REIMBURSEMENT

     5.1 Projections and Budgets.

          (a) The parties shall use their best efforts to project expected
revenues and expenses for the first three (3) years of Lakes' operation of the
Project, and the projections, as described in the business plan to be submitted
to the NIGC with this Management Agreement, represent the parties' mutual
expectations.

          (b) Lakes shall prepare an initial operating budget for the first
Fiscal Year of Project operations under its management pursuant to this
Management Agreement and submit the same to Iowa Corp for approval by Iowa Corp
prior to the Commencement Date. Annual operating budgets shall be submitted by
Lakes to Iowa Corp thereafter by no later than thirty (30) days prior to the
commencement of the next Fiscal Year. The proposed initial operating budget and
each subsequent annual operating budget shall be subject to approval or
disapproval within thirty (30) days of submission to Iowa Corp, such approval
not to be unreasonably withheld. Iowa Corp may approve or disapprove of any item
on such proposed budget. The parties recognize that mutually agreeable
adjustments may be made to previously approved operating budgets from time to
time during any Fiscal Year, to reflect the impact of unforeseen circumstances,
financial constraints, or other events. Lakes agrees to keep Iowa Corp informed
regarding any items of revenue or expense that are reasonably anticipated to
cause a material change to the operating budget previously approved by Iowa
Corp. Lakes shall operate the Project and make expenditures in connection
therewith in accordance with such approved operating budget. In the event Iowa
Corp and Lakes are unable to resolve any disputed portions of the proposed
operating budget before commencement


                                      -22-

<PAGE>

of the Fiscal Year, the undisputed portions of the operating budget shall be
deemed adopted and approved, and those line items in dispute shall be determined
by increasing the preceding Fiscal Year's actual expense for the corresponding
line items by an amount determined by Lakes which does not exceed the increase
in the Consumer Price Index for All Urban Consumers published by the U.S. Bureau
of Labor Statistics, U.S. City Average, all items (1997-98=100), or any
successor or replacement index thereto, for the Fiscal Year prior to the Fiscal
Year with respect to which adjustment to the line item(s) is being calculated.
The resulting adjusted operating budget shall be deemed to be in effect for that
Fiscal Year until such time as Iowa Corp and Lakes have resolved the disputed
items.

          (c) Lakes shall prepare an annual capital expenditure budget and
submit such budget to Iowa Corp for approval by Iowa Corp prior to the
Commencement Date. Annual capital expenditure budgets shall be submitted by
Lakes to Iowa Corp thereafter by no later than thirty (30) days prior to the
commencement of each succeeding Fiscal Year. The proposed capital expenditure
budgets shall be subject to approval or disapproval within thirty (30) days of
submission to Iowa Corp for approval, such approval not to be unreasonably
withheld. Iowa Corp may approve or disapprove of any item on such proposed
budget. The parties recognize that mutually agreeable adjustments may be made to
previously approved capital expenditure budgets from time to time during any
budget year, to reflect the impact of unforeseen circumstances, financial
constraints, or other events. Lakes agrees to keep Iowa Corp informed and obtain
Iowa Corp's approval regarding any projects or expenditures that are reasonably
anticipated to cause a material change to the capital expenditure budget
previously approved by Iowa Corp. Lakes shall make capital expenditures in
accordance with such approved capital expenditure budget.

     5.2 Intentionally omitted.

     5.3 Minimum Guaranteed Monthly Payments.

          (a) During the term of this Management Agreement, provided that the
Commencement Date has occurred, the Project shall, subject to the provisions of
Section 5.3(b) below, pay Iowa Corp the sum of _____________ Dollars
($_________) per month (the "Minimum Guaranteed Monthly Payment"), beginning on
the Commencement Date and continuing for the remainder of the term of the
Management Agreement. The Minimum Guaranteed Monthly Payment shall be payable to
Iowa Corp in arrears on the twentieth (20th) day of each calendar month
following the month in which the Commencement Date occurs, which payment shall
have priority over the Operating Note, any obligations to repay funding provided
by any third party lender in connection with financing the development,
construction equipping of the Project Facilities, and payment of Lakes'
compensation. If the Commencement Date is a date other than the first day of a
calendar month, the first payment will be prorated from the Commencement Date to
the end of the month. The Minimum Guaranteed Monthly Payment shall be prorated
if gaming is conducted at the Gaming Facility for any other partial months.

          (b) Minimum Guaranteed Monthly Payments shall be deducted from any


                                      -23-

<PAGE>

disbursements of Net Total Revenues received by Iowa Corp under Section 5.5
hereof in any given month; provided, however, that if the Net Total Revenues in
a given month are less than $_______, Lakes shall advance the funds necessary to
compensate for the deficiency from its own funds (the "Minimum Guaranteed
Payment Advances", which advances shall not accrue interest but shall be
evidenced by an Operating Note in a form agreed to by Iowa Corp and Lakes), and
provided further that the Minimum Guaranteed Monthly Payments shall be reduced
to $_________ per month for the remaining months in a Fiscal Year after Iowa
Corp has received in such Fiscal Year Total Net Revenue distributions of
$________. Lakes shall be entitled to recoup any Minimum Guaranteed Payment
Advances made under this subsection from the Net Total Revenues of the Project
in succeeding months during the term hereof, as provided in Section 5.5 hereof
(and any amounts outstanding on account of Minimum Guaranteed Payment Advances
at the end of the term of this Management Agreement shall be immediately due and
payable by Iowa Corp). In no event shall this recoupment payment for Minimum
Guaranteed Payment Advances result in Iowa Corp receiving less than its Minimum
Guaranteed Monthly Payment in any month, and in no event shall Lakes be allowed
or entitled to interest on any Minimum Guaranteed Payment Advances. Minimum
Guaranteed Monthly Payments shall be prorated with respect to any months (or
portions thereof) that Class II Gaming or Class III Gaming is suspended or
terminated at the Gaming Facility, and no Minimum Guaranteed Monthly Payments
shall be required with respect to any months that no Class II Gaming or Class
III Gaming is conducted at the Gaming Facility or accrue subsequent to
termination of this Management Agreement.

          (c) Any obligations owing by Iowa Corp under the Operating Note shall
be repaid solely as a Limited Recourse obligation of Iowa Corp without any other
liability or guarantee on the part of Iowa Corp. Except for the Minimum
Guaranteed Monthly Payment to Iowa Corp, repayment of the Operating Note
obligations shall have first priority on any Net Gaming and Net Ancillary
Revenues generated by the Project. Iowa Corp agrees to grant to Lakes a first
priority and perfected security interest, including a Dominion Account
arrangement pursuant to the Dominion Account Agreement (in a form consistent
with the terms of this Management Agreement), on any Net Gaming and Net
Ancillary Revenues of the Project in order to secure repayment of the Operating
Note, and such Operating Note shall also be secured on a first priority and
perfected basis by any Furnishings and Equipment pursuant to the Security
Agreement and by first priority liens in the additional recourse assets
described in the definition of "Limited Recourse."

     5.4 Daily and Monthly Statements. Lakes shall furnish to Iowa Corp's
designated representative financial statements identifying for each day the
Gross Gaming Revenues attributable to the Enterprise's Class II and/or Class III
Gaming on each day that such reports are normally available. Within fifteen (15)
days after the end of each calendar month, Lakes shall provide verifiable
financial statements in accordance with GAAP to Iowa Corp and the Gaming
Commission covering the preceding month's operations of the Enterprise,
including operating statements, balance sheets, income statements and statements
reflecting the amounts computed to be distributed in accordance with Section 5.5
hereof.

     5.5 Distribution of Net Total Revenues.


                                      -24-

<PAGE>

          (a) All Net Total Revenues shall be disbursed on a monthly basis as
set forth below, paid on the twentieth day of each calendar month for the
preceding month. Such Net Total Revenues shall be disbursed from the Project
Bank Account(s) to the extent available for payment of the following accounts in
the following order of priority:

          (i)  The Minimum Guaranteed Monthly Payment described in Section 5.3
               hereof;

          (ii) All outstanding Minimum Guaranteed Payment Advances and Working
               Capital Advances (and accrued interest thereon) or any other
               amounts owing to Lakes under the Operating Note;

          (iii) Current principal, interest and any other payments due on any
               obligations to repay funding provided by any third party lender
               in connection with financing the development, construction, and
               equipping of the Project Facilities,

          (iv) Management compensation due Lakes under Section 5.5(b) below;
               provide that if the distribution under this subsection in any
               month is insufficient to fund such payment in full, the unpaid
               amount shall be deferred and paid under subsection (vi) below;

          (v)  Any amounts deferred (including interest on any deferred
               management compensation which interest shall accrue, from the
               date the management compensation is deferred, at the greater of
               the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or
               any successor bank) plus two percent (2%) or the same rate for
               the financing provided by any third party lender for the
               development, construction and equipping of the Project
               Facilities) under subsections (ii), (iii), (and (iv) above;

          (vi) Any monthly capital replacement or other reserve contributions
               which have been created with the written approval of the Lakes
               and Iowa Corp;

          (vii) Any indemnification or other obligations then owing by Iowa Corp
               to Lakes under any Transaction Document and not paid as Costs of
               Gaming Operations or Costs of Ancillary Operations (provided
               Lakes has provided written notice to Iowa Corp that above amounts
               are owed under the Transaction Documents, and Iowa Corp has not
               disputed the same or such amounts have been determined to be
               owing through an arbitration proceeding under Article 10 hereof);
               and

          (viii) All remaining Net Total Revenues shall be disbursed to Iowa


                                      -25-

<PAGE>

               Corp at the same time the management compensation is paid to
               Lakes, subject to the rights of the Lakes under the Dominion
               Account Agreement upon the occurrence of a Material Breach by
               Iowa Corp or pursuant to the terms of the Operating Note.

          (b) As compensation for Lakes' management services hereunder, once Net
Total Revenues from the Project exceed four million dollars ($4,000,000) for
each twelve (12) month period following the Commencement Date, Lakes shall
receive thirty percent (30%) of Net Total Revenues for the prior calendar month
less any amounts due to a Lakes' Affiliate for any consulting fees earned that
month in connection with the Project Facilities under any contract between Iowa
Corp and the Lakes Affiliate still in effect at that time, for so long as this
Management Agreement shall remain in effect during the term hereof and as
provided for in this Management Agreement. Any amounts owing to Lakes hereunder
shall be Limited Recourse obligations of the Tribe and shall be subject to the
security provisions described in Section 5.3(c) hereof, including the Dominion
Account Agreement and Security Agreement.

          (c) Lakes, on behalf of the Project, is responsible for making the Net
Total Revenues disbursements to the appropriate party.

     5.6 Annual Audit. With respect to each Fiscal Year, Iowa Corp shall cause
an audit to be conducted by an independent certified public accountant from a
Big Five accounting firm with more than five (5) years experience in audits of
gaming resort operations selected and approved by Iowa Corp, and on or before
one hundred twenty (120) days after the end of such year, such accounting firm
shall issue a report with financial statements in accordance with GAAP with
respect to the preceding Fiscal Year (or portion of the year in the case of the
first year) operations of the Project, including operating statements, balance
sheets, income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof, such report to be approved at
an annual meeting to be held at a location mutually agreed upon by the parties.
In addition, upon termination of this Management Agreement in accordance with
its terms, such accounting firm shall conduct an audit, and on or before ninety
(90) days after the termination date, shall issue a report setting forth the
same information as is required in the annual report, in each case with respect
to the portion of the Fiscal Year ending on the termination date. If the Net
Total Revenues or other amounts paid to Iowa Corp or Lakes in accordance with
Section 5.5 above for the relevant period are different from the amount which
should have been paid to such party based on the report prepared by the
accounting firm and based upon the provisions of this Management Agreement, then
to the extent either party received an overpayment, it shall repay and deposit
the amount of such overpayment into the bank account referenced in Section 2.8
(a) hereof within twenty-five (25) days of the receipt by such party of the
accountant's report, and to the extent either party received an underpayment, it
shall receive a distribution from the bank account referenced in Section 2.8 (a)
hereof of the amount of such underpayment within ten (10) days of the receipt by
such party of the accountant's report. Lakes may make adjustment to future
payments to correct a discrepancy if required distributions are not made.


                                      -26-

<PAGE>

     5.7 Advances for Working Capital. Where amounts in bank accounts
established pursuant to Section 2.8 hereof are insufficient to meet Costs of
Gaming Operation or Costs of Ancillary Operation, during the first six (6)
months after the Commencement Date, Lakes shall advance monies to the Project
sufficient to meet Costs of Gaming Operations and Costs of Ancillary Operations.
Thereafter, Iowa Corp shall advance such monies to the Project sufficient to
meet Costs of Gaming Operations and Costs of Ancillary Operations. If Lakes
makes any advances hereunder ("Working Capital Advances", which advances shall
be evidenced by an Operating Note substantially in a form to be agreed to by
Iowa Corp and Lakes and shall accrue interest, from the date the advances are
made, at the greater of the prime interest rate of Chase Manhattan Bank U.S.A.,
N.A. (or any successor bank) plus two percent (2%) or the same rate for the
financing provided by any third party lender for the development, construction
and equipping of the Project Facilities), Lakes shall be repaid as provided in
Section 5.5 hereof (and any amounts outstanding on account of Working Capital
Advances at the end of the term of this Management Agreement shall be
immediately due and payable by Iowa Corp). Any Working Capital Advances shall be
Limited Recourse obligations of Iowa Corp and shall be subject to the security
provisions described in Section 5.3(c) hereof, including the Dominion Account
Agreement and Security Agreement. Any advances made by Iowa Corp hereunder shall
accrue interest at the same rate as applies to Working Capital Advances made by
Lakes.

     5.8 Development and Construction Cost Repayment. The maximum dollar amount
for repayment of development and construction costs for the Project Facilities
shall be zero dollars ($0). Subject to any applicable Legal Requirements, the
parties may increase the maximum repayment amount by mutual written agreement.

                                    ARTICLE 6
                           TERMINATION/MATERIAL BREACH

     6.1 Termination for Cause. Subject to the provisions of Section 8.2, either
party may terminate this Management Agreement if the other party commits or
allows to be committed a Material Breach (as hereinafter defined) of this
Management Agreement and fails to cure such breach within thirty (30) calendar
days after receipt of a written notice from the non-breaching party identifying
the nature of the Material Breach in specific detail and its intention to
terminate this Management Agreement; provided, however, that if the nature of
such breach (but specifically excluding breaches curable by the payment of
money) is such that it is not possible to cure such breach within thirty (30)
days, such thirty-day period shall be extended for so long as the breaching
party shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days, and provided further that Lakes shall not be
entitled to an extension of such thirty-day cure period in the event of theft,
embezzlement or willful misconduct with respect to the handling of money or
other property. Termination is not an exclusive remedy for claims of a Material
Breach, and the parties shall be entitled to other rights and remedies as may be
available pursuant to the terms hereof or under applicable law. For purposes of
this Management Agreement, a "Material Breach" is any of the following
circumstances: (i) failure of Lakes to provide Iowa Corp with the


                                      -27-

<PAGE>

monthly Minimum Guaranteed Monthly Payments pursuant to Section 5.3 hereof,
unless suspended pursuant to the terms of Sections 5.3(b) or 6.4(a) hereof; (ii)
material failure of either party to perform a material obligation hereunder, or
any document or agreement related hereto for reasons not excused under Section
9.6 hereof (Force Majeure); (iii) if any of Lakes' employees commits theft,
embezzlement or crime of moral turpitude and if, after knowledge of such act or,
if disputed, after determination by arbitration under Article 10, Lakes does not
remove such employee from connection with Class II and/or Class III Gaming
operations of the Project; (iv) default under this Management Agreement or the
Operating Note, or any document or agreement related hereto or thereto, and any
default by the Iowa Tribe under that certain Tribal Agreement dated January 27,
2005 executed in favor of Lakes; or (v) any representation or warranty made
pursuant to Section 9.11 or 9.12 hereof proves to be knowingly false or
erroneous in any material way when made or shall fail to be true and correct in
all material respect at any time during the term of this Management Agreement.
Any final notice of termination hereunder shall be in writing detailing the
reason the party considers the Material Breach not to be cured and must be
delivered to the other party before such termination becomes effective.

     6.2 Mutual Consent. This Management Agreement may be terminated at any time
upon the mutual written consent and approval of the parties.

     6.3 Involuntary Termination Due to Changes in Law or Tribal-State Compact.
The parties hereby agree to use their best efforts to conduct Class II and/or
Class III Gaming activities in accordance with this Management Agreement and to
ensure that such activities and this Management Agreement conform to and comply
with all applicable laws and a Tribal-State Compact. Iowa Corp and the Iowa
Tribe agree that, except as may be required by federal law, neither Iowa Corp
nor the Iowa Tribe will enact or pass any new ordinances subsequent to the
execution of this Management Agreement that would materially impair the rights
of Lakes under this Management Agreement. The Iowa Tribe and Iowa Corp covenant
and affirmatively state that neither Iowa Corp nor the Iowa Tribe has or will
impose any tax, fee or assessment on Lakes, the Project or its Project
Facilities, this Management Agreement, the Operating Note and any related
security documents and instruments described herein other than the fees and
assessments described in "Costs of Gaming Operation." In the event of any change
in state or federal laws that results in a final determination by the Secretary,
the National Indian Gaming Commission, or a court of competent jurisdiction that
this Management Agreement is unlawful, Iowa Corp, the Iowa Tribe and Lakes shall
use their respective good faith best efforts to amend this Management Agreement
in a mutually satisfactory manner which will comply with the change in
applicable laws and not materially change the rights, duties and obligations of
the parties hereunder. In the event such amendment can not be legally effected
following exhaustion of all such good faith best efforts (including the lapse of
all legal proceedings and appeal periods without favorable results) performance
of this Management Agreement shall be automatically suspended effective upon the
date that performance of this Management Agreement becomes unlawful by such
final determination, and either party shall have the right to terminate such
suspended Management Agreement (except the Notes and Security Provisions, as
defined in Section 6.4 (b)) upon written notice to the other party.


                                      -28-

<PAGE>

     6.4 Other Rights upon Material Breach; Ownership of Assets and Repayment of
Obligations on Termination.

          (a) Upon the occurrence of any Material Breach or upon the occurrence
of any event or circumstance which with the giving of notice or the passage of
time or both would constitute a Material Breach, Lakes may suspend its
obligation to make any Minimum Guaranteed Payment Advances, until such time as
the default has been cured. Upon the occurrence of any Material Breach, Lakes
may suspend its obligation to make any Working Capital Advances until such time
as the Material Breach has been cured.

          (b) Upon termination, except in connection with Lakes' security
interests in the Net Total Revenues of the Project pursuant to Iowa Corp and the
Iowa Tribe's Limited Recourse obligations under the Transaction Documents (if
not yet satisfied), or any other security interests or liens in any Furnishings
and Equipment and other collateral described in the Transaction Documents, Iowa
Corp will retain full ownership of the Project Facilities, Plans and
Specifications therefor, and the Project and its assets; and Lakes will have no
rights to the Project and its assets or the Project Facilities (or any
equipment, books and records, materials or furnishings therein that were
purchased with Costs of Gaming Operations or Costs of Ancillary Operations)
except as to the security interests and liens recited above or as may be
established otherwise by a proceeding pursuant to Article 10 hereof. In the
event of any termination (whether voluntary or involuntary), Iowa Corp shall
continue to have the obligation to pay unpaid principal and interest and other
amounts due under this Management Agreement, the Operating Note or any
Transaction Document executed in connection herewith, together with any unpaid
compensation owed to Lakes under Section 5.5(b) hereof (if not yet satisfied),
each of which shall become due and payable on such termination date. Any and all
obligations and provisions contained in this Management Agreement concerning
indemnity obligations or repayment of the Operating Note, and the security
therefore, including the Security Agreement and Dominion Account Agreement,
together with any unpaid compensation owed to Lakes under Section 5.5(b) hereof
and any other amounts owing to Lakes under this Management Agreement or any
other Transaction Documents and the terms and provisions set forth in Articles 9
and 10 hereof excluding Sections 9.21 and 9.22 (collectively, the "Notes and
Security Provisions"), shall survive termination of this Management Agreement.
In the event of termination for any reason, and subject to its rights under the
dispute resolution provisions under Article 10 herein, Lakes shall cooperate
with Iowa Corp in the orderly transition of management of the Project, and shall
provide Iowa Corp or its designee with any and all books, records, documents,
contracts, and all other information relating to the Project Facilities or the
Project, whether such information shall be in electronic, hard copy or any other
form. If at the time of termination Iowa Corp's obligations under the
Transaction Documents remain unsatisfied in full, then Iowa Corp may either pay
the obligations in full, or to the extent economically feasible (as hereinafter
defined), Iowa Corp agrees to continue to operate and maintain the Project
Facilities in accordance with reasonable industry standards, and as to any
portions of the Project Facilities that are no longer economically feasible to
operate, Iowa Corp and the Lakes shall conduct an orderly liquidation of such
assets and any liquidation proceeds (net of reasonable sale costs) shall be
deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such liquidation proceeds


                                      -29-

<PAGE>

shall be excluded from Net Total Revenues for purposes of calculating the
management compensation of any Replacement whether under Section 5.5(b) hereof
or otherwise; and Iowa Corp shall keep the Project Facilities and all related
assets insured for the coverages and amounts required by this Management
Agreement and name Lakes as an additional insured, loss payee and mortgagee, as
applicable and provide evidence thereof upon request until all amounts owing to
Lakes have been paid in full, and if any portion of the Project assets are
damaged by any casualty and it is economically feasible for Iowa Corp to
continue to operate such damaged assets, then Iowa Corp shall repair and
reconstruct such operations that were damaged and are to be continued, and any
excess insurance proceeds that are not used to repair and reconstruct the
applicable damaged Project assets shall be deposited into the Dominion Account
and disbursed in accordance with the same terms and provisions applicable to
Gross Total Revenues, provided however that such excess proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise. As used herein and in Section 6.6(d) hereof, the term "economically
feasible" shall mean that the gross revenues derived from any applicable
operations is in excess of that needed to pay the Costs of Gaming Operations or
Costs of Ancillary Operations, as applicable to the operations in question.

          (c) Subject to the provisions of Section 6.1, in the event of
termination of this Management Agreement for any reason prior to the full
repayment to Lakes of any amounts owed to it by Iowa Corp under the Transaction
Documents, including without limitation, the Operating Note, Iowa Corp shall, as
promptly as reasonably possible, appoint a person or entity qualified to manage
the Project Facilities and operate the Project (the "Replacement") and use its
best efforts to obtain approvals of all required Governmental Authorities for
such Replacement, provided the obligation to continue to operate under Section
6.4(b) exists. Iowa Corp agrees to keep full and accurate financial records of
operations of the Project by such Replacement and to allow Lakes to audit such
records at reasonable times prior to full repayment to Lakes of any amounts owed
to it by Iowa Corp under the Transaction Documents, including without
limitation, the Operating Note, and that Iowa Corp's compliance with this
paragraph shall not preclude the Lakes from exercising any of its other rights
and remedies hereunder or any document or agreement related hereto, including,
without limitation, rights under the Operating Note and the Dominion Account
Agreement.

     6.5 Notice of Termination. In the event of a proposed termination pursuant
to this Article, Iowa Corp shall provide notice of the termination to the NIGC
or other appropriate Governmental Authorities within ten (10) days after the
termination.

     6.6 Cessation of either Class II or Class III Gaming at the Gaming
Facility.

          (a) If, during the term of this Management Agreement, either Class II
or Class III Gaming (once legally permitted at the Gaming Facility) cannot be
lawfully conducted at the Gaming Facility by reason of the application of any
legislation or court or administrative agency order or decree adopted or issued
by a governmental entity having the authority to do so, Lakes shall, within
sixty (60) days after such legislation, order or decree becomes effective, elect
to:

               (i) retain Lakes' interest in this Management Agreement and
          suspend


                                      -30-

<PAGE>

          both Class II and Class III Gaming operations until such date on which
          both Class II and Class III Gaming at the Gaming Facility becomes
          lawful (during which period the term of the Management Agreement will
          be tolled until both Class II and Class III Gaming at the Gaming
          Facility becomes lawful or the parties mutually agreed otherwise, and
          the period of cessation shall not be deemed to have been part of the
          term of the Management Agreement and the term shall be extended by the
          length of time of the cessation); or

               (ii) retain Lakes' interest in this Management Agreement, suspend
          Class II and Class III gaming operations until such date on which both
          Class II and Class III Gaming at the Gaming Facility becomes lawful
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming at the Gaming Facility becomes lawful or
          the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and with the prior approval of Iowa Corp, which approval
          shall not be unreasonably withheld, use the Gaming Facility for any
          other lawful purpose pursuant to a use agreement containing terms
          reasonably acceptable to Lakes and Iowa Corp; or

               (iii) terminate both Class II and Class III Gaming operations and
          terminate this Management Agreement.

          Lakes shall give Iowa Corp written notice of Lakes' election within
     such sixty-day period.

          (b) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6 (a)(i) or (ii) above, Lakes shall have the right
(but not the obligation) to commence either Class II or Class III Gaming
operations within sixty (60) days after the date on which both Class II and
Class III Gaming becomes lawful. Lakes may exercise such right by giving Iowa
Corp written notice of such exercise within thirty (30) days after the date on
which both Class II and Class III Gaming becomes lawful. Any reasonable payment
to any third party made during the period during which either Class II or Class
III Gaming is unlawful to preserve or eliminate any leasehold or purchase
contract rights of the Gaming Facility shall be paid by Lakes from Project funds
after mutual approval of Iowa Corp and Lakes as Costs of Gaming Operation or
Cost of Ancillary Operations, as applicable, and reimbursed after both Class II
and Class III Gaming is recommenced.

          (c) If, during the term of this Management Agreement, the Gaming
Facility is damaged by casualty or other occurrence to the extent, as reasonably
determined by Lakes, that either Class II or Class III Gaming cannot be
conducted at the Gaming Facility, Lakes shall elect to:

               (i) retain Lakes' interest in this Management Agreement pending
          repair or reconstruction of the Gaming Facility, suspend all gaming
          operations pending the repair or reconstruction of the Gaming Facility
          (during which period the term of the


                                      -31-

<PAGE>

          Management Agreement will be tolled until Class III Gaming can be
          conducted at the Gaming Facility or the parties mutually agreed
          otherwise, and the period of cessation shall not be deemed to have
          been part of the term of the Management Agreement and the term shall
          be extended by the length of time of the cessation), and arrange for
          such repair or reconstruction in the manner described in this Section
          6.6; or

               (ii) terminate this Management Agreement, such termination to be
          effective on the sixtieth (60th) day after written notice of
          termination shall have been delivered to Iowa Corp.

          Lakes shall give Iowa Corp written notice of Lakes' election under
subsection within sixty (60) days after such casualty or occurrence.

          (d) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6(c)(i) above, Iowa Corp shall be obligated to make
such repairs or reconstruction as the Lakes shall reasonably determine should be
made to the Project Facilities (to the extent that insurance proceeds are
available or as otherwise mutually agreed by Iowa Corp and Lakes), and Lakes
shall promptly verify the amount of insurance proceeds available to pay the cost
of repair or reconstruction. If the Lakes elects to retain its interests under
Section 6.6(c)(i) above, Lakes is hereby granted the authority to submit, adjust
and settle, on behalf of Iowa Corp, all insurance claims associated with the
casualty or occurrence; provided, however, that Lakes shall obtain Iowa Corp's
prior written consent (which consent shall not be unreasonably withheld) to any
settlement. Lakes shall provide copies of all settlement documents to Iowa Corp.
If the Lakes does not elect to retain its interest under Section 6.6(c)(i) above
and if Iowa Corp's obligations under the Transaction Documents are not yet
satisfied, then: (a) Iowa Corp shall have the authority to submit, adjust and
settle all insurance claims provided that any final settlement shall be with the
prior written consent of Lakes which will not be unreasonably withheld, and Iowa
Corp shall provide copies of all settlement documents to the Lakes; (b) to the
extent economically feasible (as defined in Section 6.4(b), Iowa Corp shall have
the obligation to continue to operate and maintain the Project Facilities and
Project in accordance with reasonable industry standards, and as to any portions
of the project Facilities and the Enterprise that are no longer economically
feasible to operate, Iowa Corp and the Lakes shall conduct an orderly
liquidation of such assets and any liquidation proceeds (net of reasonable sale
costs) shall be deposited into the Dominion Account and disbursed in accordance
with the same terms and provisions applicable to Gross Total Revenues, provided
however that such liquidation proceeds shall be excluded from Net Total Revenues
for purposes of calculating the management compensation of any Replacement
whether under Section 5.5(b) hereof or otherwise; (c) Iowa Corp shall repair and
reconstruct such operations that were damaged and are to be continued; and (d)
any excess insurance proceeds that are not used to repair and reconstruct the
applicable damaged Project assets shall be deposited into the Dominion Account
and disbursed in accordance with the same terms and provisions applicable to
Gross Total Revenues, provided however that such excess proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise.


                                      -32-

<PAGE>

          (e) If Lakes elects to terminate this Management Agreement under this
Section 6.6, the provisions of Section 6.4 above shall apply.

     6.7 Renewal Option.

          The parties by mutual agreement may decide to renew or extend the term
of this Management Agreement. Any such renewal or extension shall only become
effective upon approval by the NIGC and appropriate licensing by the Gaming
Commission.

     6.8 Buy-out Option.

          Following forty-eight (48) months of continuous operation of the
Project's gaming operations by Lakes, Iowa Corp shall have the option to buy out
the Lakes' remaining rights under this Management Agreement for an amount equal
to the present value, using a discount rate which is the greater of (i) two
percent (2%) above the prime interest rate of Chase Manhattan Bank U.S.A., N.A.
(or any successor bank) or (ii) or the same rate for the financing provided by
any third party lender for the development, construction and equipping of the
Project Facilities of the Remaining Management Fees (as hereinafter defined).
The term "Remaining Management Fees" shall mean the total monthly compensation
which would have been payable to Lakes under Section 5.5(b) hereof for the
balance of the term of this Agreement, assuming that such monthly compensation
would be the average of the compensation paid to Lakes during the most recent
operating twelve months prior to such buy out.

     6.9 Cumulative Remedies.

          All rights or remedies of either Iowa Corp, the Iowa Tribe or Lakes
under this Management Agreement or any other Transaction Documents shall be
cumulative and may be exercised singularly in any order or concurrently, at such
party's respective option, and the exerciser or enforcement of any such right or
remedy shall neither be a condition to nor bar to the exercise or enforcement of
any other right or remedy.

                                    ARTICLE 7
                              RELEASE AND INDEMNITY

     7.1 Third-Party Claims. Except for claims resulting from the other party's
own gross negligence or willful or criminal misconduct, neither party shall be
entitled to recover from, and expressly releases, the other party, its agents,
directors, officers and employees, from or for any third-party damages, claims,
causes of action, losses and/or expenses of whatever kind or nature, including
attorneys' fees and expenses incurred in defending such claims in connection
with the lawful operation of the Project Facilities and Project in accordance
with the terms of this Management Agreement; and such claims, damages, losses or
expenses shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending on the circumstances and


                                      -33-

<PAGE>

nature of the claim, payable from the bank accounts established pursuant to
Section 2.8(a) hereof.

     7.2 Indemnity from Lakes. Notwithstanding Section 7.1, Lakes shall
indemnify and hold Iowa Corp and the Iowa Tribe, their agents, directors,
officers and employees, harmless against any and all damages, claims, losses or
expenses of whatever kind or nature, including reasonable attorneys' fees and
expenses incurred in defending such claims, resulting from the gross negligence
or willful or criminal misconduct of Lakes, its officers and directors in
connection with Lakes' performance of this Management Agreement, and no such
damages, losses or expenses shall be paid from the bank accounts established
pursuant to Section 2.8 (a) hereof, nor shall such losses or expenses be
considered Costs of Gaming Operations or Costs of Ancillary Operations.

     7.3 Indemnity from Iowa Corp and the Iowa Tribe. Notwithstanding Section
7.1, Iowa Corp and the Iowa Tribe shall upon request indemnify and hold Lakes,
its agents, directors, officers and employees, harmless against any and all
damages, claims, losses or expenses of whatever kind or nature, including
reasonable attorneys' fees and expenses incurred in defending such claims,
resulting from the gross negligence or willful or criminal misconduct of Iowa
Corp or the Iowa Tribe, their officers, directors, or tribal government
employees, in connection with the Iowa Corp's or the Iowa Tribe's performance of
this Management Agreement, and no such damages, losses or expenses shall be
considered Costs of Gaming Operations or Costs of Ancillary Operations.

     7.4 Indemnity Against Unauthorized Debt and Liabilities. The parties
expressly agree that neither this Management Agreement nor its performance
creates or implies a partnership between the parties or authorizes either party
to act as agent for the other except to the extent expressly provided herein.
Lakes hereby agrees to indemnify and hold Iowa Corp and the Iowa Tribe harmless
from any third-party claims, actions and liabilities, including reasonable
attorneys' fees on account of obligations or debts of Lakes that Lakes is not
authorized to undertake as agent for Iowa Corp or the Iowa Tribe pursuant to the
terms of this Management Agreement. Iowa Corp and the Iowa Tribe likewise agree
to indemnify and hold Lakes harmless from any third-party claims, actions and
liabilities on account of any of the separate obligations or debts of Iowa Corp
or the Iowa Tribe that are not authorized Costs of Gaming Operations or Costs of
Ancillary Operations pursuant to this Management Agreement.

     7.5 Indemnity Agreement. In connection with any indemnity obligations
hereunder, the parties agree they will comply with the terms and conditions set
forth in the Indemnity Agreement in a form agreed to by Iowa Corp, the Iowa
Tribe and Lakes.

                                    ARTICLE 8
                               PARTIES IN INTEREST

     8.1 Payment of Fees and Submission of Information for Background
Investigations.

     Upon execution of this Management Agreement, Lakes shall pay the fees
required by federal and tribal regulations for background investigations for the
"Parties in Interest" as defined


                                      -34-

<PAGE>

herein, and it shall submit the information required by this Section in
duplicate to the National Indian Gaming Commission and the Gaming Commission and
update such information at any time that changes occur in prior submissions so
as to allow complete background investigations. In no event shall the cost of
background investigations under this Section relating to Gaming Commission
regulations exceed $10,000 per individual without the mutual consent of the
parties, which consent shall not be unreasonably be withheld.

          (a) As used in this Section 8.1, the term, "Parties in Interest"
includes any person or entity with a financial interest in, or having management
responsibility for, this Management Agreement or for which background
investigations are required by 25 C.F.R. Part 537, and any amendments thereto.

          (b) Lakes shall require sufficient information and identification from
each "Party in Interest" to perform a background investigation for the purpose
of determining the suitability of such persons for employment in a Class II
and/or Class III Gaming operation, including, at a minimum, the information
required by the National Indian Gaming Commission as set forth in 25 C.F.R. Part
537.

          (c) Without limiting the foregoing, Lakes shall obtain a current set
of fingerprints on each person for whom background investigations are required
by the Gaming Commission and the National Indian Gaming Commission, using forms
supplied by the National Indian Gaming Commission and/or the Gaming Commission,
which shall be referred to the Federal Bureau of Investigation (FBI) Fingerprint
Identification Division or other law enforcement agency designated by the Gaming
Commission.

          (d) The parties hereby agree that a listing of all "Parties in
Interest" as defined in Section 8.1 (a) above shall be submitted to the NIGC.
All such "Parties in Interest", as such listing shall be supplemented from time
to time, shall be required to furnish the information required by this Section
8.1 prior to obtaining such interest. All necessary Governmental Authorities
must approve any change in the "Parties in Interest". Any change of a person
listed as a one of the "Parties in Interest" shall not constitute a change in
persons with a financial interest in or management responsibility for a
management contract.

     8.2 Removal; Divestiture. Should the Gaming Commission or the National
Indian Gaming Commission, by agency action, find that any individual with a
"direct or indirect financial interest" in this Management Agreement (as defined
in 25 C.F.R. Section 502.17, and any amendments thereto) whose prior activities,
criminal record, if any, or reputation, habits, and associations pose a threat
to the public interest, or the tribal interest, or the effective regulation of
gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices and methods and activities in the conduct of gaming or the carrying on
of related business and financial arrangements, or should such agency revoke the
license of such person, and should either agency notify Lakes or Iowa Corp of
such finding or revocation, then Lakes shall require such individual to divest
his or her interest in this Management Agreement and shall immediately remove
such person from all association with gaming operations under this Management
Agreement upon receipt of such notice, provided that


                                      -35-

<PAGE>

any individual subject to such removal/divesture shall be permitted to be
revested and able to associate with gaming operations in the event the agency
action is reversed upon agency administrative or judicial appeal. In addition,
if any individual with "direct or indirect financial interest" in this
Management Agreement (as defined in 25 C.F.R. Section 502.17, and any amendments
thereto): (a) has been or is subsequently convicted of a felony relating to
gaming, (b) knowingly or willfully provided materially false statements to Iowa
Corp, the Gaming Commission or the National Indian Gaming Commission, or refused
to respond to questions from either of such agencies, or (c) attempts to unduly
interfere or unduly influence for his or her gain or advantage any decision or
process of tribal government relating to Class II and/or Class III Gaming and if
Lakes becomes aware of such conflicts or prohibited actions, then Lakes shall
notify Iowa Corp of such event and shall immediately take all necessary steps to
cause such individual to divest his or her interest in Lakes. Any disputed
Gaming Commission action potentially involving removal/divestiture of Lakes is
subject to the provisions of Article 10 and other applicable law or regulations.

                                    ARTICLE 9
                                  MISCELLANEOUS

     9.1 Assignment and Subcontractors. The rights and obligations under this
Management Agreement shall not be assigned or subcontracted by any party without
the prior written consent of the other party and without first obtaining prior
approval by the National Indian Gaming Commission or the BIA, if applicable, and
any other necessary regulatory approvals. However, Iowa Corp reserves the right
to assign its rights and obligations under this Management Agreement to a
tribally chartered entity that it wholly owns and controls, and the Lakes
reserves the right to assign its rights and obligations under this Management
Agreement to a wholly owned subsidiary provided that the original Lakes
hereunder, or an affiliated entity reasonably satisfactory to Iowa Corp, remains
obligated hereunder by means of a guaranty or other accommodation reasonably
satisfactory to Iowa Corp, and further provided that Lakes shall have received
prior approval from the National Indian Gaming Commission and any other
necessary regulatory approvals. Any assigning party engaging in a permitted
assignment described above shall and shall cause its assignee to execute and
deliver to the other party such assignment and assumption agreements together
with evidence of the due authorization, execution, delivery and enforceability
of such assignment documents as may be reasonably requested. Other than as
expressly provided herein or in Section 9.2 below, any attempted assignment or
subcontracting without such consent and approval shall be void. Approval of any
assignment or subcontract to any new party must be preceded by a complete
background investigation of the new party as required by Section 8.1. Subject to
the preceding requirements, this Management Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors and
assigns.

     9.2 Change of Control in Ownership Interest. Any Change of Control (as
defined herein) in Lakes shall require prior written consent of Iowa Corp and be
subject to Legal Requirements, or this Management Agreement shall be terminated.
For purposes of this Management Agreement, a "Change of Control" means the
acquisition by any person or affiliated group of persons not presently members
of Lakes of beneficial ownership of 51% or more of membership interest in


                                      -36-

<PAGE>

Lakes.

     9.3 Notices. Any notice, consent or any other communication permitted or
required by this Management Agreement shall be in writing and shall be effective
on the date sent and shall be delivered by personal service, via telecopier with
reasonable evidence of transmission, express delivery or by certified or
registered mail, postage prepaid, return receipt requested, and, until written
notice of a new address or addresses is given, shall be addressed as follows:

     If to  Iowa Corp:     Iowa Tribe of Oklahoma
                           a federally-chartered corporation
                           RR 1, P.O. Box 721
                           Perkins. OK 74059
                           Attention: Chairman

     With a copy to:       David McCullough, Esq.
                           Doerner, Saundsers, Daniel & Anderson, L.L.P.
                           211 N. Robinson Ave. Suite 501
                           Oklahoma City, OK 73102-7112

     If to the Iowa Tribe: Iowa Tribe of Oklahoma
                           a federally recognized Indian tribe
                           RR 1, P.O. Box 721
                           Perkins. OK 74059
                           Attention: Chairman

     With a copy to:       David McCullough, Esq.
                           Doerner, Saundsers, Daniel & Anderson, L.L.P.
                           211 N. Robinson Ave. Suite 501
                           Oklahoma City, OK 73102-7112

     If to the Lakes:      Lakes Iowa Management, LLC
                           130 Cheshire Lane
                           Minnetonka, MN 55305
                           Attention: Timothy J. Cope

     With a copy to:       Kevin C. Quigley, Esq.
                           Johnson Hamilton Quigley Twait & Foley PLC
                           W1450 First National Bank Building
                           332 Minnesota Street
                           St. Paul, MN 55101-1314

     and                   Brian J. Klein, Esq.


                                      -37-

<PAGE>

                           Maslon, Edelman, Borman & Brand, LLP
                           3300 Wells Fargo Center
                           90 South Seventh Street
                           Minneapolis, MN 55402-4140

     Copies of any notices shall be given to the Gaming Commission.

     9.4 Amendments. This Management Agreement may be amended only by written
instrument duly executed by all of the parties hereto and with any and all
necessary regulatory approvals previously obtained.

     9.5 Counterparts. This Management Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one and the same agreement.

     9.6 Force Majeure. No party shall be in default in performance due
hereunder if such failure or performance is due to causes beyond its reasonable
control, including acts of God, war, terrorism, fires, floods, or accidents
causing damage to or destruction of the Project Facilities or property necessary
to operate the Facility, or any other causes, contingencies, or circumstances
not subject to its reasonable control which prevent or hinder performance of
this Management Agreement; provided, however, that the foregoing shall not
excuse any obligations of Iowa Corp or its Affiliates to make monetary payments
to Lakes as and when required hereunder or in any related document or agreement.

     9.7 Time is Material. The parties agree that time is of the essence and the
time and schedule requirements set forth in this Management Agreement are
material terms of this Management Agreement.

     9.8 Further Assurances. The parties hereto agree to do all acts and deliver
necessary documents as shall from time to time be reasonably required to carry
out the terms and provisions of this Management Agreement.

     9.9 Severability. In the event that any provision of this Management
Agreement is, by final order of a court of competent jurisdiction or Government
Authority, held to be illegal or void, the validity of the remaining portions of
the Management Agreement shall be enforced as if the Management Agreement did
not contain such illegal or void clauses or provisions, and the parties shall
use their best efforts to negotiate an amendment to this Management Agreement
which will comply with the judicial order and maintain the originally
contemplated rights, duties and obligations of the parties hereunder.

     9.10 Sovereign Immunity. Except for the Resolutions of Limited Waiver
attached hereto as EXHIBIT B AND C and incorporated herein by reference, nothing
in this Management Agreement shall be deemed or construed to constitute a waiver
of sovereign immunity of Iowa Corp and the Iowa Tribe and the only applicable
waivers of sovereign immunity shall be those expressly


                                      -38-

<PAGE>

provided and executed by the Iowa Corp's and the Iowa Tribe's duly authorized
representative and substantially conforming to the form as approved by the
parties. The parties agree that they will not amend or alter the Resolutions of
Limited Waiver which will in any way lessen the rights of any party as set forth
in the Resolutions of Limited Waiver, including without limitation the covenant
therein of Iowa Corp and the Iowa Tribe to preserve its effective terms in the
event of future changes in its legal status or governance. This Section 9.10
shall survive termination of this Management Agreement, regardless of the reason
for the termination.

     9.11 Representations and Warranties of Lakes. The Lakes hereby represents
and warrants as follows:

          (a) This Management Agreement and all other agreements contemplated
     hereby have been duly authorized, executed and delivered by Lakes and, when
     approved by necessary Governmental Authorities as set forth (where
     applicable), will constitute a valid and binding obligation, enforceable
     against Lakes in accordance with its terms.

          (b) The execution and delivery of this Management Agreement and all
     other agreements contemplated hereby, the performance by Lakes of its
     obligations hereunder or thereunder and the consummation by Lakes of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Lakes or any of its affiliated companies is a party or any law,
     regulation, rule or ordinance or any order, judgment or decree of any
     federal, state, tribal or local court or require any regulatory approval
     beyond those contemplated herein.

          (c) Lakes has the full legal right, power and authority and has taken
     all action necessary to enter into this Management Agreement, to perform
     its obligations hereunder, and to consummate all other transactions
     contemplated by this Management Agreement.

     9.12 Representations and Warranties of Iowa Corp and the Iowa Tribe. Iowa
Corp and the Iowa Tribe hereby represent and warrant as follows:

          (a) Iowa Corp is a federally-chartered corporation, created pursuant
     to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat.
     1967), whose federal charter was issued on January 4, 1938 by the Secretary
     of the Interior and ratified by the Iowa Tribe on February 5, 1938; and the
     Iowa Tribe is a federally recognized Indian Tribe duly organized under the
     Constitution and laws of the Iowa Tribe and the United States, and is
     eligible to conduct gaming within the meaning of IGRA.

          (b) Iowa Corp, under its corporate charter, and the Iowa Tribe, under
     its Constitution, have full legal right, power and authority and has taken
     all official action necessary, to the extent each is a party to the
     agreement or document, (i) to enter into this Management Agreement and
     authorize execution and deliver of this Management


                                      -39-

<PAGE>

     Agreement, the Operating Note, Dominion Account Agreement, Security
     Agreement, Indemnity Agreement and any and all other documents and
     agreements related thereto or contemplated thereby (collectively, the
     "Transaction Documents"), (ii) to perform its obligations hereunder and
     thereunder, and (iii) to consummate all other transactions contemplated by
     this Management Agreement and the other Transaction Documents.

          (c) This Management Agreement, the Operating Note, and the other
     Transaction Documents, when executed and delivered by Iowa Corp and the
     Iowa Tribe, to the extent each is a party to the agreement or document and
     approved by necessary Governmental Authorities, will constitute a valid,
     binding and perfected obligations, enforceable against Iowa Corp and the
     Iowa Tribe in accordance with their terms.

          (d) The execution and delivery of this Management Agreement, the
     Operating Note, and the other Transaction Documents, and the performance by
     Iowa Corp and the Iowa Tribe of its obligations hereunder to the extent
     each is a party to the agreement or document, and the consummation by Iowa
     Corp and the Iowa Tribe of the transactions contemplated hereby will not
     violate any contract or agreement to which Iowa Corp or the Iowa Tribe is a
     party, law, regulation, rule or ordinance or any order judgment or decree
     of any federal, state, tribal or local court, or require any approval by
     Governmental Authorities beyond those contemplated herein.

          (e) Neither Lakes, the Project, the Project Facilities nor the
     transaction(s) between the parties contemplated by this Management
     Agreement, the Operating Note, and any related security documents and
     instruments described herein are now, or at any time during the term of
     this Management Agreement will be, subject to any tribal tax of any sort
     other than (i) reasonable pass-through taxes on Project patrons which are
     consistent with gaming resort industry practices, and (ii) the fees and
     assessments described in the definition of "Costs of Operations."

          (f) The Iowa Tribe is legally permitted to conduct Class II Gaming
     (and Class III Gaming in the event of a Compact) activities in the State
     under all Legal Requirements, and the Gaming Facility Site for the Project
     constitutes "Indian lands" upon which the Iowa Tribe may legally conduct
     gaming under IGRA.

          (g) Neither Iowa Corp, the Iowa Tribe or any of their Affiliates has
     enacted any law, ordinance, rule or regulation impairing the rights or
     obligations of Iowa Corp, the Iowa Tribe or Lakes under this Management
     Agreement or under any Transaction Documents contemplated hereby.

          (h) Prior to the Commencement Date, and except as permitted by Section
     2.23 hereof, Iowa Corp and the Iowa Tribe will not cause or voluntarily
     permit any lien or encumbrance to be created on the Project Facilities or
     the Gaming Facility Site.


                                      -40-

<PAGE>

          (i) The Iowa Tribe has entered into an agreement with Lakes or its
     Affiliate which (i) confirms that all gaming and related project facilities
     of the Iowa Tribe will be owned and operated by Iowa Corp or another
     subsidiary of the Iowa Tribe, (ii) grants Lakes or its Affiliate the first
     right of refusal to manage any gaming projects owned and operated by Iowa
     Corp or another subsidiary of the Iowa Tribe under the same terms and
     conditions described in this Management Agreement unless otherwise agreed
     to in writing by the parties or their Affiliates, and (iii) contains
     representations, warranties and covenants substantially similar to those
     contained in Articles 9 and 10 hereof insofar as applicable.

     9.13 Governing Law. This Management Agreement has been negotiated, made and
executed at Iowa Corp's office located in the State of Oklahoma and shall be
governed by and construed in accordance with the laws of the State of Oklahoma,
without regard to its conflict of laws provisions, and applicable federal laws.

     9.14 Entire Agreement. This Management Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all prior
agreements relating to management of gaming and ancillary operations conducted
by Iowa Corp at the Project Facilities.

     9.15 Representatives of Iowa Corp. Iowa Corp shall furnish to Lakes a list
of the authorized representatives who are empowered to act on behalf of Iowa
Corp for the purposes of this Management Agreement and Iowa Corp shall keep such
list current. Iowa Corp hereby acknowledges and agrees that to the extent any
authorization, consent or other approval of Iowa Corp is required under this
Management Agreement or any related Transaction Documents and Iowa Corp shall
provide to Lakes a resolution naming any individual or individuals authorized to
represent the Iowa Corp for purposes or for the purpose of the operation and
performance of Management Agreement and related Transaction Documents, then
Lakes shall be entitled to rely on all decisions, authorizations, consents, and
approvals provided by such individual or individuals, as applicable, until such
time as Iowa Corp shall deliver to Lakes an additional tribal resolution
revoking or otherwise modifying such authority.

     9.16 Limitations of Liability. Lakes expressly agrees that Iowa Corp's and
the Iowa Tribe's total aggregate liability for damages for breach of the
Management Agreement shall be limited in accordance with the Resolutions of
Limited Waiver attached hereto as EXHIBIT B AND C and incorporated herein by
reference. Iowa Corp and the Iowa Tribe shall bear no liability for further
damages.

     9.17 Approvals. Unless otherwise provided herein, all approvals or consents
required by either party hereunder shall not be unreasonably withheld or
delayed. Unless otherwise provided herein, approval by Iowa Corp's Board of
Directors or its duly authorized representative(s), and by the Iowa Tribe's
Business Committee, shall be deemed to constitute approval by Iowa Corp and the
Iowa Tribe respectively; and approval by the Chief Executive Officer of the
Lakes shall be deemed to constitute approval by the Lakes.

     9.18 Best Efforts. Except as otherwise provided herein, Lakes and Iowa Corp
and the Iowa


                                      -41-

<PAGE>

Tribe shall use their best efforts to perform and fulfill their obligations
under this Management Agreement in the manner required by this Management
Agreement.

     9.19 Request for NIGC Approval. The parties specifically request that the
NIGC, or the Secretary where appropriate, approve this Management Agreement and
the other Transaction Documents, if required, or declare that such approval is
not required.

     9.20 Non-disclosure. The parties agree not to divulge to third parties the
terms of this Management Agreement or any other proprietary or confidential
information exchanged between the parties pursuant to this Management Agreement,
unless (i) the information is required to be disclosed pursuant to judicial
order or Legal Requirements, (ii) the information is at the time of disclosure
already in the public domain, or (iii) to the extent required in order to obtain
financing. This prohibition shall not apply to disclosures by either party to
their attorneys, accountants, or other professional advisers. In situations
where disclosure of the terms of this Management Agreement to regulatory,
governmental or judicial entities is required by law or regulations, the parties
will make reasonable efforts to secure confidential treatment of the economic
terms of this Management Agreement by such entities; provided, however, this
disclosure restriction shall not prohibit Lakes making any SEC filings it deems
legally necessary. The parties agree to consult with each other and cooperate
regarding any press releases regarding this Management Agreement and the
relationships described herein.

     9.21 Other Business Opportunities. During the term of this Management
Agreement, or until Lakes is repaid in full on the Operating Note, whichever is
later, Iowa Corp and the Iowa Tribe agree that, subject to all Legal
Requirements, Iowa Corp and the Iowa Tribe may pursue other gaming development
opportunities within Iowa Indian Country; provided Lakes is granted the right of
first refusal to participate with Iowa Corp or the Iowa Tribe upon the terms and
conditions proposed by Iowa Corp or the Iowa Tribe, with prompt response by
Lakes required, but in no event later than thirty (30) days after written notice
from Iowa Corp or the Iowa Tribe. In the event that Lakes declines to
participate with Iowa Corp or the Iowa Tribe upon such terms and conditions,
Iowa Corp and the Iowa Tribe shall have the right to pursue such opportunity but
may not offer to an unrelated third party terms and conditions more favorable
than those offered to Lakes. If Iowa Corp or the Iowa Tribe do not enter into a
signed agreement with such unrelated third party regarding the other commercial,
gaming and economic development opportunity which has been declined by Lakes
within one (1) year of such declination, then Lakes' right of first refusal
granted herein is reinstated for that opportunity.

     9.22 Use of Trade Marks and Trade Names. To assure that Iowa Corp can
continue operation of the Project Facilities without disruption in the event
that this Management Agreement is terminated or not renewed, Lakes agrees that
it will not use any trade mark or trade name to identify any portion of the
Project Facilities or services offered within the Project Facilities unless such
trade mark or trade name is registered in the name of Iowa Corp.

     9.23 Recitals. The recitals at the beginning of this Management Agreement
are true and are incorporated by reference herein.


                                      -42-

<PAGE>

                                   ARTICLE 10
                               DISPUTE RESOLUTION

     10.1 Disputes Between the Enterprise and Patrons. Disputes that arise
between the Project and any patron of the Project Facilities shall be resolved
in accordance with the Tribal-State Compact and tribal ordinances, if
applicable.

     10.2 Disputes Between the Project and Project Employees. Iowa Corp and
Lakes shall jointly develop an employee dispute resolution policy, and Lakes, as
agent of Iowa Corp, shall ensure that the Project's general manager shall
implement and administer the employee dispute resolution policy after its
adoption.

     10.3 Disputes Between Iowa Corp, the Iowa Tribe and Lakes. Disputes between
Iowa Corp, the Iowa Tribe and Lakes with respect to this Management Agreement,
the Operating Note, or any other Transaction Documents, or a party's performance
hereunder or thereunder, shall be resolved by the following dispute resolution
process and pursuant to the Resolutions of Limited Waiver attached hereto as
Exhibit B and C.

     (a) The parties shall use their best efforts to settle the dispute. To this
effect, they shall consult and negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties.

     (b) If the parties do not reach such solution within a period of ten (10)
days, then, upon notice by either party to the other, all disputes shall be
settled by arbitration administered by the American Arbitration Association in
accordance with the provisions of its Commercial Arbitration Rules in effect at
the time of submission; except that: (a) the question whether or not a dispute
is arbitrable shall be a matter for binding arbitration by the arbitrators, such
question shall not be determined by any court and, in determining any such
question, all doubts shall be resolved in favor of arbitrability; and (b)
discovery shall be permitted in accordance with the Federal Rules of Civil
Procedure, subject to supervision as to scope and appropriateness by the
arbitrators. Unless the parties otherwise agree to in writing, arbitration
proceedings shall be held in Oklahoma City, Oklahoma.

     (c) The arbitration proceedings shall be conducted before a panel of three
neutral arbitrators, all of whom shall be currently licensed attorneys, actively
engaged in the practice of law for at least ten (10) years, one of which shall
have five (5) years of experience in federal Indian law, and one of which shall
have five (5) years of experience in the gaming industry. The arbitrator
selected by the claimant and the arbitrator selected by respondent shall, within
ten (10) days of their appointment, select a third neutral arbitrator. In the
event that they are unable to do so, the parties or their attorneys may request
the American Arbitration Association to appoint the third neutral arbitrator.
Prior to the commencement of hearings, each of the arbitrators appointed shall
provide an


                                      -43-

<PAGE>

oath or undertaking of impartiality. Iowa Corp and the Iowa Tribe further agree
that any arbitration proceeding held in connection with any dispute with respect
to the this Management Agreement, the Operating Note, or any other Transaction
Document may be consolidated with any other arbitration proceeding involving
Lakes or its Affiliates and any of Iowa Corp or the Iowa Tribe's Affiliates.

     (d) The arbitration award shall be in writing signed by each of the
arbitrators, and shall state the basis for the award. The arbitration award
shall be set forth in reasonable detail as to its findings of fact and law, and
basis of determination of award form and amount. In connection with any
arbitration award, the arbitrators shall be empowered to take the actions and
enforce the judicial remedies described in Paragraph 5 of the Resolutions of
Limited Waiver; provided however, that although the arbitrators may award
damages in the event Iowa Corp, the Iowa Tribe or the Gaming Commission do not
to comply with the award, the arbitrators may not require Iowa Corp, the Iowa
Tribe or the Gaming Commission to take or modify any governmental legislative
decision or action which the arbitrators have determined has resulted in the
dispute between the parties and is contrary to the parties rights, liabilities
or obligations under this Management Agreement, the Operating Note, or any other
Transaction Document ("Specific Performance Restriction"). Provided further,
that: (a) should the arbitrators determine that there has been an intentional
bad faith violation of a party's rights under this Management Agreement or any
other Transaction Documents by Iowa Corp, the Iowa Tribe or Gaming Commission,
and if Iowa Corp, the Iowa Tribe or the Gaming Commission do not reverse such
intentional bad faith violation through governmental legislative decision or
action within thirty (30) days after the being notified by the arbitrators of
such determination, then the arbitrators shall award one-and-half (1 1/2 ) times
damages to Lakes for damages suffered as a consequence of Iowa Corp's, the Iowa
Tribe's or Gaming Commission's intentional bad faith violation; and (b) such
Specific Performance Restriction shall not prevent Lakes from enforcing the
Operating Note, the Security Agreement, the Dominion Account Agreement, nor from
realizing on collateral encumbered thereby.

     (e) Except to the extent such enforcement will be inconsistent with a
specific provision of this Agreement, arbitration awards made pursuant to this
Article 10 shall be enforceable in federal court under Title 9 of the United
States Code and any applicable tribal, federal or state law governing the
enforcement of arbitration awards. In addition to any basis for appeal of an
arbitration award stated in Title 9 of the United States Code or any applicable
law governing the enforcement of arbitration awards, either party hereto may
appeal an arbitration award on the basis that the arbitrator or arbitrators
incorrectly decided a question of law in making the award, or the award was made
in an arbitrary or capricious manner or in manifest disregard of the factual
evidence.

     (f) Any party hereto, without having to exhaust any tribal remedies first,
shall have the right to seek and obtain a court order from a court having
jurisdiction over the parties requiring that the circumstances specified in the
order be maintained pending completion of the arbitration proceedings, to the
extent permitted by applicable law.


                                      -44-

<PAGE>

     (g) Judgment on any arbitration award may be entered in any court having
jurisdiction over the parties. The arbitrators shall not have the power to award
punitive, exemplary or consequential damages, or any damages excluded by or in
excess of any damage limitations expressed in this Agreement.

     (h) Iowa Corp and the Iowa Tribe hereby expressly waive, and also waive its
right to assert, sovereign immunity and any and all defenses based thereon with
respect to disputes between Iowa Corp and the Iowa Tribe and Lakes with respect
to this Management Agreement, the Operating Note, or any other Transaction
Documents, or a party's performance hereunder or thereunder; and Iowa Corp and
the Iowa Tribe hereby consent to (i) binding arbitration under the Commercial
Arbitration Rules of the American Arbitration Association, and (ii) judicial
proceedings in or before the United States District Court for the Northern
District of Oklahoma, or if that court determines it is without jurisdiction,
then to the courts of the State of Oklahoma and all courts to which an appeal
therefrom may be available, but solely to compel, enforce, modify or vacate any
arbitration award.

     (i) To the extent lawful in connection with any such dispute, Iowa Corp and
the Iowa Tribe expressly waive the application of the doctrines of exhaustion of
tribal remedies or comity that might otherwise require that a claim be heard
first in tribal court or other tribal forum of the Iowa Tribe.

     (j) The parties agree that: (1) in the event that a dispute submitted to
arbitration under this section involves the right of Lakes to continue to
receive compensation under Section 5.5 hereof, or (2) in the event that Lakes
appeals an agency decision under Section 8.2 for removal/divestiture, then any
compensation which is asserted to be due to Lakes during such dispute shall, if
not paid to Lakes, be deposited into an interest bearing escrow account with the
entity that is designated as the "Depository" under the Dominion Account
Agreement and Lakes shall be granted a security interest in said escrow account
which interest is contingent, as follows: such escrow funds shall be released to
Lakes upon an arbitration award being issued in its favor or on the date the
agency action under Section 8.2 is reversed by agency administrative or judicial
appeal; provided that upon final conclusion of such arbitration or agency
administrative or judicial appeal, any portion of such escrowed funds not
expressly awarded to Lakes shall be immediately released unconditionally to Iowa
Corp.

        [Rest of page left blank intentionally; signature page to follow]


                                      -45-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Management Agreement
as of the above written date.

Iowa Tribe of Oklahoma                  Lakes Iowa Management, LLC
a federally-chartered corporation


By: /s/ Phoebe O'Dell                   By: /s/ Timothy Cope
   ----------------------------------       ------------------------------------
Name: Phoebe O'Dell                         Timothy J. Cope
     --------------------------------
Its: Chairman                           Its: President and Chief Financial
     --------------------------------        Officer

ATTEST:


By: /s/ Eugene Big Soldier Jr.
    ---------------------------------
Name: Eugene Big Soldier Jr.
      -------------------------------
Its: Secretary
     --------------------------------


Iowa Tribe of Oklahoma
a federally-recognized Indian tribe


By: /s/ Phoebe O'Dell
    ---------------------------------
Name: Phoebe O'Dell
      -------------------------------
Its: Chairman
     --------------------------------

ATTEST:


By: /s/ Eugene Big Soldier Jr.
    ---------------------------------
Name: Eugene Big Soldier Jr.
      -------------------------------
Its: Secretary
     --------------------------------

Approved pursuant to 25 U.S.C.
Section 2711

National Indian Gaming Commission


By:
    ---------------------------------
Print Name: Philip N. Hogen
Its Chairman


                                      -46-

<PAGE>

                                LIST OF EXHIBITS

<TABLE>
<S>         <C>
Exhibit A   Legal Description of Gaming Facility Site

Exhibit B   Resolution of Limited Waiver of Immunity from Suit - Iowa Corp

Exhibit C   Resolution of Limited Waiver of Immunity form Suit - Iowa Tribe
</TABLE>


                                      -47-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.128
<SEQUENCE>63
<FILENAME>c92713exv10w128.txt
<DESCRIPTION>OPERATING NOTE (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.128

                                 OPERATING NOTE
                                (Cimarron Casino)

                                                           Minnetonka, Minnesota
                                                                January 27, 2005

     FOR VALUE RECEIVED, IOWA TRIBE OF OKLAHOMA ("MAKER"), A FEDERALLY-CHARTERED
CORPORATION, CREATED PURSUANT TO SECTION 3 OF THE OKLAHOMA INDIAN WELFARE ACT
OF JUNE 26, 1936 (49 STAT. 1967), UNDER A FEDERAL CHARTER ISSUED TO THE IOWA
TRIBE OF OKLAHOMA ("IOWA TRIBE"), A FEDERALLY RECOGNIZED INDIAN TRIBE, promises
to pay to the order of LAKES IOWA MANAGEMENT, LLC, A MINNESOTA LIMITED LIABILITY
COMPANY ("LENDER"), in the United States of America, in immediately available
funds, at such place as the holder hereof may from time to time designate, or in
the absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the principal sum of the aggregate unpaid principal
amount of all "Guaranteed Minimum Payment Advances" and "Working Capital
Advances" made to Maker pursuant to Sections 5.3(b) and 5.7, respectively, of
the Management Agreement for a Gaming Facility and Related Ancillary Facilities
for the Cimarron Casino dated January 27, 2005 entered into between the parties
(the "Management Contract"), plus interest on any Working Capital Advances from
the date of such advances, in like money, in accordance with the following terms
and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Management Contract.

     2. Interest. No interest shall accrue on any Minimum Guaranteed Payment
Advances. Each Working Capital Advance as and when made pursuant to the terms of
the Amended Memorandum Agreement shall bear interest at the Interest Rate, as
described herein, from and including the date the proceeds of such Working
Capital Advance are advanced (such date the "Funding Date" of such Advance)
through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be a Limited Recourse obligation, as defined in
the Management Contract, and secured by the real and personal property described
therein. Principal and interest, as applicable, on each Minimum Guaranteed
Payment Advance and Working Capital Advance (each an "Advance") shall be repaid
in accordance with the terms and provisions set forth in the Management
Contract. The Maker shall have the right to prepay all or any part of this
Operating Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity. In the event that the term of the Management Contract is
tolled under Section 6.6 thereof, Maker's obligation to make the monthly
installment payment hereunder shall be likewise tolled until the tolling under
Section 6.6 ceases (except to the extent that the Project shall receive any
business interruption insurance proceeds in connection with tolling under
Section 6.6, in which case Maker's obligation to make monthly installment
payments shall not be tolled).

     4. Interest Rate. The Interest Rate means an interest rate equal to the
greater of the


                                       -1-

<PAGE>

prime rate of Chase Manhattan Bank, N.A. (or any successor Bank by acquisition
or merger) plus two percent (2%) per annum or the same rate as the financing
provided by any third party lender for the development, construction and
equipping of the Project Facilities in place at the time of the advance, fixed
as of the first business day of each calendar month. Interest at the foregoing
rate shall accrue and shall be payable as a Limited Recourse obligation as
provided in the Management Contract. Interest shall be computed for the actual
number of days elapsed on the basis of a year consisting of 360 days. It is
intended that the rate of interest hereon shall never exceed the maximum rate,
if any, which may be legally charged on the Loan evidenced by this Operating
Note ("Maximum Rate"), and if the provisions for interest contained in this
Operating Note would result in a rate higher than the Maximum Rate, interest
shall nevertheless be limited to the Maximum Rate and any amounts which may be
paid toward interest in excess of the Maximum Rate shall be applied to the
reduction of principal, or, at the lawfully exercised option of the Lender,
returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books all Advances made to the Maker and all payments of principal amounts and
interest in respect of such Advances, which shall be presumptive evidence as to
the outstanding principal amount of all Advances; provided, however, that the
failure to make such notation with respect to any Advance or payments shall not
limit or otherwise affect the obligations of Maker.

     6. Default; Acceleration. If any Event of Default occurs, then the
outstanding principal amount of this Operating Note, any interest accrued
thereon from time to time, and any other sums then remaining unpaid hereunder,
at the option of the holder hereof and without notice, shall become immediately
due and payable and Lender may exercise any other rights or remedies available
under any Transaction Documents or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Operating Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  A material default by Maker in the performance by Maker of any of its
          covenants or commitments under the Management Contract or any
          Transaction Document or under any other agreement entered into with or
          in favor of Lender or any Affiliate of Lender, or a material default
          by Maker's Affiliate under any agreement executed by an Affiliate of
          Maker in favor of Lender or any Affiliate of Lender which default is
          not cured by Maker or its Affiliate as applicable within the
          applicable cure period thereunder after written notice of default is
          delivered to Maker or its Affiliate; provided, however, that if the
          nature of such default (but specifically excluding


                                       -2-

<PAGE>

          defaults curable by the payment of money) is such that it is not
          possible to cure such default within the cure period, such period
          shall be extended for so long as the breaching party shall be using
          diligent efforts to effect a cure thereof but no more than an
          additional sixty (60) days; or

     (d)  The Management Contract shall be terminated by either the Maker or the
          Lender; or

     (e)  Any representation or warranty given to the Lender by the Maker (or
          any of its representatives) in connection with entering into the
          Management Contract or the other Transaction Documents and/or any
          borrowing thereunder, or given by an Affiliate of Maker in connection
          with any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, or required to be furnished under
          the terms thereof, shall prove untrue or misleading in any material
          respect (as determined by the Lender in the exercise of its reasonable
          judgment) as of the time when given or shall fail to be true and
          correct in all material respects at any time during the term of the
          agreement; or

     (f)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or

     (g)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing or shall be insolvent.

     7. Security. This Operating Note shall be secured by a security interest in
the Collateral granted by Maker to Lender pursuant to the Management Contract
and the other Transaction Documents, including the Dominion Account Agreement.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Operating Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Operating Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as


                                       -3-

<PAGE>

often as occasion therefor shall occur; and the failure to exercise any such
right or remedy shall in no event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS OPERATING NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Operating Note.

     12. Applicable Law. This Operating Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Operating Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Operating Note is found by
a court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Operating Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this
Operating Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Operating Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Operating Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Operating Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Operating Note.

     16. Successors and Assigns. This Operating Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the


                                       -4-

<PAGE>

Lender shall be deemed to include and apply to every subsequent holder of this
Operating Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 9.3 of the Management Contract.

     18. Dispute Resolution/Limited Waiver of Sovereign Immunity. Maker and
Lender expressly agree that any dispute in connection with this Operating Note
shall be subject to the dispute resolution procedures and the limited waiver of
sovereign immunity contained in the Management Contract and the Resolution of
Limited Waiver attached thereto as Exhibit B, the terms of which are hereby
incorporated by reference thereto.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       -5-

<PAGE>

IN WITNESS WHEREOF, Maker has caused this Operating Note to be executed under
seal and delivered as of the date first above written.

                                        MAKER:

                                        IOWA TRIBE OF OKLAHOMA
                                        A FEDERALLY-CHARTERED CORPORATION


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Title: Chairman
                                               ---------------------------------


                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Title: Secretary
                                               ---------------------------------

            [Signature page to Iowa Operating Note - Cimarron Casino
                     in favor of Lakes Iowa Management, LLC]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.129
<SEQUENCE>64
<FILENAME>c92713exv10w129.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.129

                           DOMINION ACCOUNT AGREEMENT
                      (Lakes Management - Cimarron Casino)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 27, 2005 (the "Effective Date'"), between Iowa Tribe of Oklahoma, a
federally-chartered corporation ("Iowa Corp" and sometimes hereinafter referred
to as the "Borrower"), created pursuant to Section 3 of the Oklahoma Indian
Welfare Act of June 26, 1936 (49 Stat. 1967) under a federal charter issued to
the Iowa Tribe of Oklahoma ("Iowa Tribe"), a federally recognized tribe, whose
business office is located at RR1, P.O. Box 721, Perkins, Oklahoma 74059, and
Lakes Iowa Management, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes"), whose business office is located at 130 Cheshire Lane,
Minnetonka, Minnesota 55305, and when it has executed a counterpart signature
page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Iowa Corp is vested with the sovereign immunity of the Iowa Tribe,
and has been established to control and manage the economic affairs of the Iowa
Tribe; and is the legal entity which owns and operates the Cimarron Casino
located in Perkins, Oklahoma.

     WHEREAS, Lakes has entered into an agreement with Iowa Corp and the Iowa
Tribe dated January 27, 2005 ("Management Contract"), pursuant to which Lakes is
to manage the Gaming Facility and related Ancillary Facilities for the Cimarron
Casino owned by Iowa Corp on behalf of the Iowa Tribe.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of Gross Total Revenues
derived by the Borrower with respect to the Project (as set forth in the
Management Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Management Contract.


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     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Management
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean all loans, compensation, fees, expenses and other
amounts owing by (i) the Borrower to Lakes or its Affiliates under or with
respect to the Management Contract, the Operating Note, the Security Agreement,
and each of the other Transaction Documents, (ii) the Iowa Tribe under and with
respect to the Tribal Agreement and any other documents or agreements executed
in favour of Lakes or its Affiliates in connection with the Project Facilities,
(iii) together with any costs, expenses or other amounts hereafter owing by the
Borrower to Agent or Lakes pursuant to the terms of this Agreement, each of the
foregoing, whether now existing or hereafter incurred or arising.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.

     "Project" shall have the meaning assigned to such term in the Management
Contract and which shall include, without limitation, the gaming operations of
the Project.


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<PAGE>

     "Project Revenues" shall mean the Gross Total Revenues (as such term is
defined in the Management Contract) of the Project, including without limitation
credit card receivables and other accounts receivable related to the Project.

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Management Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Notwithstanding
any other term or provision contained herein or in the Management Contract, only
Lakes shall have the authority to make withdrawals from or exercise any other
rights with respect to Project Dominion Account; provided that upon written
notice to the Agent, Lakes may grant the Borrower the right (which may be
subsequently revoked by Lakes at any time) to make withdrawals and transfers
from the Project Dominion Account subject to any conditions set forth in such
notice. Agent hereby acknowledges the security interest in the Collateral
granted to Lakes by Borrower. On the date of execution of this Agreement, the
Borrower shall cause to be delivered to Lakes (a) such financing statements and
similar documents necessary to perfect the security interest granted to Lakes
pursuant to Section 3.1 hereof (the "Financing Statements") and (b) a legal
opinion in form and substance reasonably acceptable to Lakes, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by the Borrower, together with opinions as to the
Borrower's sovereign immunity waiver and noncontravention with laws and
agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct Lakes, any other manager of the Project, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be permitted provided the
collecting bank(s) execute and deliver the Joinder Agreement attached hereto as
Exhibit A with the Borrower, Lakes and the collecting banks in form mutually
acceptable to each of such parties), the Borrower shall transfer or cause to be
transferred all such Project Revenues or other Collateral, consisting of cash
and other collected funds directly by wire transfer of immediate available funds
to the Project Dominion Account on each Business Day. In the event that the
Borrower receives any payment that should have been deposited into the Project
Dominion Account as provided pursuant to this Agreement, the Borrower agrees
that it will hold such amounts in trust for the benefit of Lakes, and shall not
commingle any such funds with any of its funds or other property and shall
immediately transfer such amounts to the


                                                                          Page 3

<PAGE>

Agent for deposit into the Project Dominion Account. The Borrower agrees that
the Agent's officers, agents and employees are irrevocably authorized by it to
endorse for payment to the Agent any instruments received by the Agent for
deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Subject to the terms
of this Agreement, Lakes acknowledges and agrees that during each calendar month
it shall make or permit such transfers from the Project Dominion Account to and
for the benefit of each of the Borrower and Lakes in such amounts and
priorities, for such purposes and as and when required pursuant to the terms of
Sections 2.8(b) and 5.5 of the Management Contract. Lakes further acknowledges
and agrees that transfers from the Project Dominion Account to Project Accounts
under Section 2.8(b) of the Management Contract and payment of the Minimum
Guaranteed Monthly Payment shall be timely made notwithstanding any provision of
this Dominion Agreement (except as otherwise provided under Section 5.2 hereof).
In connection with any such withdrawals and transfers and any other aspects of
the Project Dominion Account, the Agent shall acknowledge and comply with only
the withdrawal requests and other directions received from Lakes, except as
expressly provided in Section 2.2 above or pursuant to an arbitration award made
in an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges that when it shall release any funds from the Project Dominion
Account, then its security interest in such funds shall also be deemed to have
been released concurrently therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of any Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes itself and its Affiliates, subject only to Permitted Liens of
all of the Borrower's right, title and interest in and to the Collateral. The
Borrower represents and warrants that the Borrower is (or, to the extent that
the Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security


                                                                          Page 4

<PAGE>

interests in, liens, charges or encumbrances on, or adverse claims of title to,
or any other interest whatsoever in, such Collateral or any portion thereof
except for Permitted Liens; and that no financing statement, notice of lien,
mortgage, deed of trust or instrument similar in effect covering the Collateral
or any portion thereof or any proceeds thereof ("LIEN NOTICE") exists or is on
file in any public office, except as relates to Permitted Liens and except as
may have been filed in favor of Lakes relating to this Agreement or related
agreements, or for which duly executed termination statements have been
delivered to Lakes for filing. Without the prior written consent of Lakes,
Borrower will not in any way encumber, or hypothecate, or create or permit to
exist, any lien, security interest, charge or encumbrance or adverse claim upon
or other interest in the Collateral, except for Permitted Liens, and the
Borrower will defend the Collateral against all claims and demands of all
persons at any time claiming the same or any interest therein, except as
expressly provided herein. The Borrower will not permit any Lien Notices to
exist or be on file in any public office with respect to all or any portion of
the Collateral except, in each case, for Lien Notices of holders of Permitted
Liens or encumbrances permitted by the Management Contract or any other
Transaction Document or except as may have been filed by or for the benefit of
Lakes relating to this Security Agreement or related agreements. The Borrower
shall promptly notify Lakes of any attachment or other legal process levied
against any of the Collateral and any information received by any Borrower
relative to the Collateral, which may in any material way affect the value of
the Collateral or the rights and remedies of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;


                                                                          Page 5

<PAGE>

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
and Lakes until such time as Lakes delivers a written notice to Agent and the
Borrower in accordance with Section 5.2 that Lakes is thereby exercising
exclusive control over the Project Dominion Account ("Notice of Exclusive
Control"), provided that the proceeds of any such investments are deposited in
or credited to the Project Dominion Account contemporaneously with such
transaction; and provided, further, such investment instructions shall not
affect the type or nature of Collateral for attachment and perfection purposes
under the Oklahoma Uniform Commercial Code (as may be amended from time to time)
or any other applicable law. After Agent receives the Notice of Exclusive
Control, it will immediately cease complying with any investment instructions
concerning Project Dominion Account originated by Borrower or its
representatives and shall comply with only such investment instructions as are
originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Management Contract has been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Management Contract.

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or LAKES may reasonably request, in order to perfect and protect the
security interests granted


                                                                          Page 6

<PAGE>

hereby or, after an Event of Default, to enable the Agent or Lakes to exercise
and enforce its right and remedies hereunder with respect to any Collateral in
accordance with this Agreement. Without limiting the generality of the
foregoing, the Borrower will execute and file such financing statements or
continuation statements in respect thereof, or amendments thereto, and such
other instruments of notices, as may be necessary or desirable, or as the Agent
or Lakes may reasonably request, in order to perfect, preserve, and enhance the
security interests granted hereby. The Borrower hereby authorizes the Agent,
with the prior written consent of Lakes, or Lakes to file this Agreement (if the
Borrower shall fail to provide an appropriate financing statement within ten
(10) business days after request) or one or more continuation statements in
respect thereof, relating to all or any part of the Project Dominion Account or
the Project Revenues without the additional signature or consent of the Borrower
where permitted by law. A photocopy or other reproduction of this Agreement or
any financing statement covering the Project Dominion Account and Project
Revenues or any part thereof shall be sufficient as a financing statement where
permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach and
termination of the Management Contract, the Borrower will furnish the following
to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of the Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,
               shall be and remain subject to the provisions of Section 9.20 of
               the Management Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager of the Project, substantially in the form
               set forth in Exhibit B stating that, except as explained in
               reasonable detail in such certificate, all Gross Total


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<PAGE>

               Revenues with respect to the Project has been deposited into the
               Project Dominion Account for the period covered by such financial
               statement. If such certificate discloses an exception to such
               certification, such certificate shall set forth what action the
               Borrower has taken or proposes to take with respect thereto.

     (d) Insurance. At such time as Lakes shall no longer be the Manager of the
Project, the Borrower shall cause to be maintained insurance as required by the
Management Contract and naming Lakes as an additional insured, loss payee and
mortgagee, if applicable. Upon request, the Borrower shall provide to the Agent
and Lakes certificates of insurance or copies of insurance policies evidencing
that such insurance satisfying the requirements of such Management Contract is
in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended for so long as the Borrower shall be using diligent efforts to
effect a cure thereof.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under the Operating Note and
shall have continued beyond any applicable grace or cure period.

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes


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from the Project Dominion Account all amounts otherwise payable to the Borrower
under Section 5.5 of the Management Contract, and to apply the same towards the
repayment of the Obligations, and to endorse in the name of the Borrower any
checks, drafts, notes or other instruments or documents received in payment of
or on account of the Project Revenues or other Collateral; and any such proceeds
so received and prepaid shall be applied to installments of principal on the
Obligations in the inverse order of their maturity; and provided further that
Lakes may obtain any injunctive or other relief as is necessary for the
enforcement of this Agreement and the terms and provisions set forth herein, and
may exercise such other rights and remedies available by law or agreement;
PROVIDED, HOWEVER, that any and all obligations of Borrower and remedies of
Lakes shall be Limited Recourse and shall be subject to the limitations set
forth in the Resolution of Limited Waiver attached to the Management Contract;
and provided further that, notwithstanding any term or provision contained
herein, Lakes shall take all steps necessary to continue to permit and cause the
necessary withdrawals and transfers to be made from the Project Dominion Account
in accordance with Section 2.3 hereof, with the exception that Lakes shall be
entitled to retain all amounts otherwise payable to the Borrower under Section
6.5 (including any payments required to be made under Section 5.5(a)(i)) of the
Management Contract and apply the same towards the repayment of the Obligations;
and in no event shall Lakes exercise any remedy against the Borrower (excluding
other third parties) with respect to the Project Revenues other than such
remedies as are necessary to require their deposit into the Project Dominion
Account or seeking an accounting and turnover of any Project Revenues held in
trust by the Borrower as required under Section 2.2 hereof until such time that
the Borrower shall have ceased business operations at the Project, at which time
Lakes may exercise all rights and remedies under applicable law or by agreement
and apply all proceeds of the Collateral to the repayment of the Obligations.
Borrower agrees that, to the extent notice of sale shall be required by law with
respect to the disposition of any Collateral, at least ten (10) calendar days
notice to the Borrower of the time and place of any public sale or the time
after which a private sale is to be made shall constitute reasonable
notification. Lakes agrees that it shall withdraw and terminate any Notice of
Exclusive Control at such time that all outstanding Events of Default have been
cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and in exercising any such powers or
authority, the right to pay all expenses incurred in connection therewith,
including attorneys' fees. Borrower hereby agrees that it shall be bound by any
such payment made or incurred or act taken by Lakes hereunder and shall
reimburse Lakes for all reasonable payments made and expenses incurred under
this Agreement, which amounts shall be secured under this Agreement. Lakes shall
have no obligation to make any of the foregoing payments or perform any of the
foregoing acts

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account.


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Neither the Agent nor Lakes nor any of their directors, officers, trustees,
employees, representatives, or agents shall be liable for failure to demand,
collect or realize upon all or any part of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral in connection with the exercise of any of their rights and remedies
under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.


                                                                         Page 10

<PAGE>

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement, and any such amounts
shall be deemed to be Costs of Gaming Operations under the Management Contract
and subject to the terms of Section 2.9 thereof.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,
administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the Borrower shall not be and Lakes shall be responsible
for such related costs and expenses. If


                                                                         Page 11

<PAGE>

Borrower shall fail to pay any of such costs when due, Lakes may make a
withdrawal or proceeds from the Project Dominion Account in an amount sufficient
to cause the payment of the same or reimburse Lakes for any such payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days prior to the Commencement Date (as estimated by the Borrower and
Lakes), Borrower shall select an eligible financial institution to act as the
agent (the "Agent") under this Agreement and cause the Agent to execute a
counterpart signature page to this Agreement, thereby becoming a party hereto.
Thereafter, there shall at all times be an Agent hereunder. Any such Agent shall
be a financial institution organized and doing business under the laws of the
United States of America or of any State, having a combined capital, undivided
profits and surplus of at least $500,000,000. If at any time the Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of


                                                                         Page 12

<PAGE>

resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower and Lakes (so long as a
Notice of Exclusive Control has not been issued by Lakes to the Agent) and
delivered to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.


                                                                         Page 13

<PAGE>

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Iowa Tribe of Oklahoma
                       a federally-chartered corporation
                       RR 1, P.O. Box 721
                       Perkins, OK 74059
                       Attention: Chairman

     With a copy to:   David McCullough, Esq.
                       Doerner, Saunders, Daniel & Anderson, L.L.P.
                       211 N. Robinson Ave. Suite 501
                       Oklahoma City, Ok 73102-7112

If to Lakes:           Lakes Iowa Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as


                                                                         Page 14

<PAGE>

to such jurisdiction, be ineffective to the extent of such prohibition without
invalidating the remaining provisions hereof, provided, however that where the
provisions of any such applicable law may be waived, they hereby are waived by
the Parties to the fullest extent permitted by law to the end that this
Agreement shall be deemed to be a valid and binding agreement in accordance with
its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Management Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient; provided, however, that any and all
remedies of the Agent and Lakes shall be Limited Recourse. No failure on the
part of the Agent or Lakes to exercise and no delay in exercising, any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any power or right preclude any other or further exercise
thereof of any other power or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the Dominion Account Agreement as
defined and referred to in Section 2.8(a) of the Management Contract. As such
and without limiting the scope of such Management Contract, the provisions of
Section 9.10 and Article 10 of the Management Contract apply to this Agreement
and are hereby incorporated by reference, including, without limitation, the
limited sovereign immunity waiver, limitations on recourse and arbitration and
jurisdiction provisions contained therein and the Resolution of Limited Waiver
attached thereto. This Agreement and the Project Dominion Account will be
governed by the internal laws of the State of Oklahoma without giving effect to
its conflict of laws principles and without limiting the foregoing, the Oklahoma
Uniform Commercial Code (as may be amended form time to time) notwithstanding
any provision therein or other applicable law that would otherwise make such
laws inapplicable to the Borrower. The parties hereto may not change the law
governing this


                                                                         Page 15

<PAGE>

Agreement and the Project Dominion Account without express written consent of
the Borrower, Agent and LAKES.

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Management Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 16

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        Iowa Tribe of Oklahoma
                                        a federally-chartered corporation


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA MANAGEMENT, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Rob Wyre
                                            ------------------------------------
                                        Name: Rob Wyre
                                              ----------------------------------
                                        Its: SR VP OPS
                                             -----------------------------------

Date of Joinder of Agent: __________, 200_

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
(Management)(Cimarron) dated January 27, 2005 (as amended or otherwise modified
from time to time, the "Dominion Agreement") by and among Iowa Tribe of
Oklahoma, a federally-chartered corporation ("Borrower"), Lakes Iowa Management,
LLC ("Lakes") and ____________________________________ ("Agent"), the Collecting
Bank, must execute and deliver a Joinder Agreement in accordance with the
Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and management services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No. ________
          maintained by the Borrower with the Collecting Bank (such account,
          together with any replacement thereof shall hereinafter be referred to
          as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Iowa Tribe of Oklahoma, a
federally-chartered corporation (the "Borrower"), do hereby provide this
Compliance Certificate in connection with that certain Dominion Account
Agreement (Management)(Cimarron) dated January 27, 2005 (the "Dominion
Agreement"), by and between the Borrower, Lakes, and __________________________
Bank (the "Bank"); capitalized terms used but not otherwise defined herein shall
have the meaning set forth in the Dominion Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No. ___________
          with the Bank.

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.130
<SEQUENCE>65
<FILENAME>c92713exv10w130.txt
<DESCRIPTION>SECURITY AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.130

                               SECURITY AGREEMENT
                    (LAKES IOWA MANAGEMENT - CIMARRON CASINO)

          This Security Agreement is made and entered into on January 27, 2005,
by and between the Iowa Tribe of Oklahoma, a federally-chartered corporation
(hereinafter referred to as "Iowa Corp" or "Debtor"), created pursuant to
Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967),
as issued on January 4, 1938 by the Secretary of the Interior and ratified on
February 5, 1938 located in Iowa Indian Country within the physical boarders of
the State of Oklahoma, with business offices located at RR 1, P.O. Box 721,
Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma ("Iowa Tribe"), a
federally-recognized tribe with a Constitution approved and ratified under the
Oklahoma Indian Welfare Act, and Lakes Iowa Management, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes" or "Secured Party"), whose
business office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into an agreement with Debtor and the
Iowa Tribe dated January 27, 2005 (as amended from time to time, the "Management
Contract"), pursuant to which Lakes is to manage the Cimarron Casino's Gaming
Facility and related Ancillary Facilities owned by Debtor on behalf of the Iowa
Tribe.

     WHEREAS, pursuant to the Management Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Management Contract, the Debtor and the Iowa Tribe has agreed to execute this
Security Agreement in favor of Secured Party and to grant a security interest to
Secured Party in all of its right, title and interest in the property described
herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:


                                  Page 1 of 15

<PAGE>

     1. CREATION OF SECURITY INTEREST. The Debtor and the Iowa Tribe hereby
assign, pledge and grant to Secured Party, for and on behalf of Secured Party
itself and its Affiliates, a security interest in the Debtor' and the Iowa
Tribe's right, title and interest in and to the collateral described in Section
2 hereinbelow in each case whether now owned or hereafter acquired by Debtor or
the Iowa Tribe in order to secure the payment and performance of the obligations
of Debtor and/or the Iowa Tribe to Secured Party described in Section 3 herein
below. On the date of execution of this Agreement, Debtor and the Iowa Tribe
shall cause to be delivered to Secured Party: (a) such financing statements and
similar documents necessary to perfect the security interest granted to Secured
Party pursuant to this Agreement (the "Financing Statements"), and (b) a legal
opinion in form and substance reasonably acceptable to Secured Party, opining as
to the due authorization, execution, delivery and enforceability of this
Agreement and the Financing Statements by Debtor, together with opinions as to
Debtor's and the Iowa Tribe's sovereign immunity waiver and non-contravention
with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Project, the Gaming
Facility Site and/or the Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Management
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Management Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR AND THE IOWA TRIBE. The Collateral secures
and shall hereafter secure the following, whether now existing or hereafter
incurred: (i) all loans,


                                  Page 2 of 15

<PAGE>

compensation, fees, expenses and other amounts owing by (a) Debtor and/or the
Iowa Tribe to Secured Party or its Affiliates under or with respect to the
Operating Note, and each of the other Transaction Documents (as each of such
terms are defined in the Management Contract), and (b) the Iowa Tribe to Secured
Party or its Affiliates under or with respect to the Tribal Agreement or any
other document or agreement executed in favor of Secured Party or its Affiliates
by the Iowa Tribe in connection with the Project, each of the foregoing, whether
now existing or hereafter incurred or arising, (ii) any and all sums advanced by
Secured Party in order to preserve the Collateral or preserve Secured Party's
security interest in the Collateral (or the priority thereof) and (iii) the
expenses of retaking, holding, preparing for sale or lease, selling or otherwise
disposing of or realizing on the Collateral, of any proceeding for the
collection or enforcement of any indebtedness, obligations or liabilities of
Debtor or the Iowa Tribe referred to above, or of any exercise by Secured Party
of its rights hereunder, together with reasonable attorneys' fees and
disbursements and court costs (collectively, the "Secured Obligations");
PROVIDED HOWEVER, Secured Party agrees to terminate this Security Agreement upon
request if Debtor has satisfied the following conditions: (a) all Secured
Obligations have been repaid in full to Secured Party and Secured Party has no
further obligation, if any, to make advances under the Management Contract with
respect thereto, and (b) the Management Contract has been terminated in
accordance with its terms.

          All payments and performance by Debtor and the Iowa Tribe with respect
to any Secured Obligations shall be in accordance with the terms under which
said indebtedness, obligations and liabilities were or are hereafter incurred or
created.

     4. REPRESENTATIONS AND WARRANTIES OF DEBTOR AND THE IOWA TRIBE. The Debtor
and the Iowa Tribe represent and warrant that:

          (a) the Debtor and the Iowa Tribe are (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except such liens permitted by and
subject to the terms of Section 2.23 of the Management Contract and that are
created by this Security Agreement ("Permitted Liens"); and that no financing
statement, notice of lien, mortgage, deed of trust or instrument similar in
effect covering the Collateral or any portion thereof or any proceeds thereof
("Lien Notice") exists or is on file in any public office, except as relates to
Permitted Liens and except as may have been filed in favor of Secured Party
relating to this Security Agreement or related agreements, or for which duly
executed termination statements have been delivered to Secured Party for filing;

          (b) the Debtor and the Iowa Tribe have full right, power and authority
to execute, deliver and perform this Security Agreement. This Security Agreement
constitutes a legally valid and binding obligation of the Debtor and the Iowa
Tribe, enforceable against each in accordance with its terms subject to any
limitations set forth in the Resolutions of Limited Waiver of each attached to
the Management Contract. Subject to the completion of the items identified in
Section 4(c) below, the provisions of this Security Agreement are effective to
create in favor of Secured Party a valid and enforceable first, prior and
perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and


                                  Page 3 of 15

<PAGE>

fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or the Iowa Tribe or any governmental authority or
regulatory body is required, except as may be agreed to by Debtor or the Iowa
Tribe and Secured Party: (i) for the grant by the Debtor and the Iowa Tribe of
the security interest in the Collateral pursuant to this Security Agreement or
for the execution, delivery or performance of this Security Agreement by the
Debtor and the Iowa Tribe, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor and the Iowa Tribe do not do business, and for the previous
five years has not done business, under any fictitious business names or trade
names;

          (e) the Collateral has not been and will not be used or bought by
Debtor or the Iowa Tribe for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor or the Iowa Tribe, the consummation of the transactions
herein contemplated, the fulfillment of the terms hereof or the exercise by
Secured Party of any rights or remedies hereunder will constitute or result in a
breach of any of the terms or provisions of, or constitute a default under, or
constitute an event which with notice or lapse of time or both will result in a
breach of or constitute a default under, any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor or
the Iowa Tribe is a party, conflict with or require approval, authorization,
notice or consent under any law, order, rule, regulation, license or permit
applicable to Debtor or the Iowa Tribe of any court or any federal or state
government, regulatory body or administrative agency, or any other governmental
body having jurisdiction over Debtor or the Iowa Tribe or their properties, or
require notice, consent, approval or authorization by or registration or filing
with any person or entity (including, without limitation, any stockholder or


                                  Page 4 of 15

<PAGE>

creditor of Debtor) other than any notices to Debtor or the Iowa Tribe from
Secured Party required hereunder except as may be agreed to by Debtor or the
Iowa Tribe and Secured Party. Except for the Permitted Liens, none of the
Collateral is subject to any agreement, indenture, mortgage, deed of trust,
equipment lease, instrument or other document to which Debtor or the Iowa Tribe
is a party that may restrict or inhibit Secured Party's rights or ability to
sell or dispose of the Collateral or any part thereof after the occurrence of an
Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR AND THE IOWA TRIBE. The Debtor and the Iowa Tribe
covenant and agree that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor and the Iowa Tribe will promptly, and in no event later
than 21 days after a request by Secured Party, procure or execute and deliver
all further instruments and documents (including, without limitation, notices,
legal opinions, financing statements, mortgagee waivers, landlord disclaimers
and subordination agreements) necessary or appropriate to and take any other
actions which are necessary or, in the judgment of Secured Party, desirable or
appropriate to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes and provisions of this Security Agreement, and will pay all reasonable
costs incurred in connection therewith. Without limiting the generality of the
foregoing, Debtor will: (i) mark conspicuously each item of chattel paper and
each other contract included in the Collateral with a legend, in form and
substance satisfactory to Secured Party, indicating that such chattel paper and
other contracts are subject to the security interests granted hereby; (ii)
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable,
which Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a promissory note
or other instrument or chattel paper (other than checks received by any Debtor
in the


                                  Page 5 of 15

<PAGE>

ordinary course of business), deliver and pledge to Secured Party such note or
instrument or chattel paper duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance reasonably
satisfactory to Secured Party; (iv) if any Collateral is at any time in the
possession or control of any warehouseman, bailee, consignee or any of Debtor's
agents or processors, Debtor shall notify such warehouseman, bailee, consignee,
agent or processor of the security interests created or purported to be created
hereby, shall cause such warehouseman, bailee, consignee, agent or processor to
execute any financing statements or other documents which Secured Party may
request, and, upon the request of Secured Party after the occurrence and during
the continuation of an Event of Default, shall instruct such person to hold all
such Collateral for Secured Party's account subject to Secured Party's
instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor and the
Iowa Tribe will not in any way encumber, or hypothecate, or create or permit to
exist, any lien, security interest, charge or encumbrance or adverse claim upon
or other interest in the Collateral, except for Permitted Liens, and the Debtor
and the Iowa Tribe will defend the Collateral against all claims and demands of
all persons at any time claiming the same or any interest therein, except as
expressly provided herein. Debtor and the Iowa Tribe will not permit any Lien
Notices to exist or be on file in any public office with respect to all or any
portion of the Collateral except, in each case, for Lien Notices of holders of
Permitted Liens or except as may have been filed by or for the benefit of
Secured Party relating to this Security Agreement or related agreements. Debtor
and the Iowa Tribe shall promptly notify Secured Party of any attachment or
other legal process levied against any of the Collateral and any information
received by any Debtor or the Iowa Tribe relative to the Collateral, which may
in any material way affect the value of the Collateral or the rights and
remedies of Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor or the
Iowa Tribe will not sell, transfer, assign (by operation of law or otherwise),
exchange or otherwise dispose of all or any portion of the Collateral or any
interest therein, except that the Debtor or the Iowa Tribe may sell worn-out or
obsolete equipment provided that the proceeds thereof are applied to the Secured
Obligations or used to purchase new collateral of equal or greater value and the
Secured Party shall be granted a first priority security interest therein. If
the proceeds of any such prohibited sale are notes, instruments, documents of
title, letters of credit or chattel paper, such proceeds shall be promptly
delivered to Secured Party to be held as Collateral hereunder (with all
necessary or appropriate endorsements). If the Collateral, or any part thereof
or interest therein, is sold, transferred, assigned, exchanged, or otherwise
disposed of in violation of these provisions, the security interest of Secured
Party shall continue in such Collateral or part thereof notwithstanding such
sale, transfer, assignment, exchange or other disposition, and Debtor and the
Iowa Tribe will hold the proceeds thereof in a separate account for Secured
Party's benefit. Debtor or the Iowa Tribe will, at Secured Party's request,
transfer such proceeds to Secured Party in kind;


                                  Page 6 of 15

<PAGE>

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
or the Iowa Tribe where permitted by law;

          (h) Except as expressly permitted by the Management Contract, Debtor
and the Iowa Tribe will not enter into any indenture, mortgage, deed of trust,
contract, undertaking, document, instrument or other agreement, except for the
Management Contract and any documents, instruments or agreements related thereto
or issue any securities which may materially restrict or inhibit Secured Party's
rights or ability to sell or otherwise dispose of the Collateral or any part
thereof after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance with respect to
the Project and Collateral as required by the Management Contract and naming
Secured Party as an additional insured, loss payee and mortgagee, if applicable.
Upon request, the Debtor shall provide to the Secured Party certificates of
insurance or copies of insurance policies evidencing that such insurance
satisfying the requirements of such Management Contract is in effect at all
times;

          (j) Except as expressly permitted by the Management Contract, the
Debtor and the Iowa Tribe will pay and discharge all taxes, assessments and
governmental charges or levies against the Collateral prior to delinquency
thereof and will keep the Collateral free of all unpaid claims and charges
(including claims for labor, materials and supplies) whatsoever;

          (k) Debtor and the Iowa Tribe will keep and maintain the Collateral in
good condition, working order and repair and from time to time will make or
cause to be made all repairs, replacements and other improvements in connection
therewith that are necessary or desirable toward such end. Debtor and the Iowa
Tribe will not misuse or abuse the Collateral, or waste or allow it to
deteriorate except for the ordinary wear and tear of its normal and expected use
in Debtor's business in accordance with Debtor's policies as then in effect
(provided that no changes are made to Debtor's policies as in effect on the date
hereof that would be materially adverse to the interests of the Secured Party),
and will comply with all laws, statutes and regulations pertaining to the use or
ownership of the Collateral. Debtor or the Iowa Tribe will promptly notify
Secured Party regarding any material loss or damage to any material Collateral
or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guarantee
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;

          (m) Intentionally omitted;

          (n) Intentionally omitted;


                                  Page 7 of 15

<PAGE>

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor and the Iowa Tribe
hereby agree that each shall be bound by any such payment made or incurred or
act taken by Secured Party hereunder and shall reimburse Secured Party for all
reasonable payments made and expenses incurred under this Security Agreement,
which amounts shall be secured under this Security Agreement. Secured Party
shall have no obligation to make any of the foregoing payments or perform any of
the foregoing acts;

          (q) if Debtor shall become entitled to receive or shall receive any
certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

     6. DEFAULTS AND REMEDIES


                                  Page 8 of 15

<PAGE>

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor or the Iowa Tribe herein or in any report, certificate or other
document furnished by or on behalf of the Debtor or the Iowa Tribe pursuant to
this Agreement shall prove to be false or misleading in any material respect
when made or at any time shall fail to be true and correct in all material
respects.

          (b) The Debtor or the Iowa Tribe shall default in the due observance
or performance of any of its material obligations hereunder and such default
shall continue for thirty (30) days (unless a shorter or longer cure period is
provided under the terms of this Agreement) after written notice thereof has
been sent to the Debtor or the Iowa Tribe by Secured Party; provided, however,
that if the nature of such default (but specifically excluding defaults curable
by the payment of money) is such that it is not possible to cure such breach
within thirty (30) days, such 30-day period shall be extended for so long as the
Debtor or the Iowa Tribe shall be using diligent efforts to effect a cure
thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Management Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor expressly covenants and agrees that Secured Party may, at
its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Management Contract is terminated and either (i) the
Commencement Date (as defined in the Management Contract) has not occurred, or
(ii) the Debtor does not or at any time fails to continue operations of Class II
Gaming and/or Class III Gaming at the Project's Gaming Facility or any material
portion of the Project Facilities, Secured Party may immediately take possession
of any of the Collateral wherever it may be found or require the Debtor to
assemble the Collateral or any part thereof and make it available at one or more
places as Secured Party may designate, and to deliver possession of the
Collateral or any part thereof to Secured Party, who shall have full right to
enter upon any or all of Debtor's or the Iowa Tribe's places of business,
premises and property to exercise Secured Party's rights hereunder; and without
notice (except as specified below), sell the Collateral or any part thereof in
one or more parcels at one or more public or private sales, at any of Secured
Party's offices or elsewhere, at such time or times, for cash, on credit or for
future delivery, and at such price or prices and upon such other terms as shall
be commercially reasonable. The Debtor and the Iowa Tribe acknowledge and agree
that, to the extent notice of sale shall be required by law, at least ten (10)
days written notice to Debtor or the Iowa Tribe of the time and place of any
public sale or of the date on or after which any private sale is to be made
shall constitute reasonable notification. Any public sale shall be held at such
time or times


                                  Page 9 of 15

<PAGE>

during ordinary business hours and at such place or places as Secured Party may
fix in the notice of such sale. Notwithstanding the foregoing, Secured Party
shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. Secured Party may, without notice or publication,
adjourn any public or private sale, or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale or, with respect to
a private sale, after which such sale may take place, and any such sale may,
without further notice, be made at the time and place to which it was so
adjourned or, with respect to a private sale, after which such sale may take
place. Each purchaser at any such sale shall hold the property sold free from
any claim or right on the part of Debtor or the Iowa Tribe, and the Debtor and
the Iowa Tribe hereby waives, to the full extent permitted by law, all rights of
stay and/or appraisal which Debtor or the Iowa Tribe now has or may at any time
in the future have under any rule of law or statute now existing or hereafter
enacted. The Debtor or the Iowa Tribe also hereby waive any claims against
Secured Party arising by reason of the fact that the price at which any
Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale, even if Secured Party accepts the
first offer received and does not offer such Collateral to more than one
offeree. The parties hereto agree that the notice provisions, method, manner and
terms of any sale, transfer or disposition of any Collateral in compliance with
the terms set forth herein or any other provision of this Security Agreement are
commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor or the Iowa Tribe is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor or the Iowa Tribe shall not be and Secured Party
shall be responsible for such related costs and expenses. Secured Party may
exercise its rights under this Security Agreement independently of any other
collateral or guaranty that Debtor or the Iowa Tribe may have granted or
provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor or the Iowa Tribe to
secure any Secured Obligation or to proceed against any guarantor before
enforcing its rights under this Security Agreement. The Debtor or the Iowa Tribe
shall reimburse Secured Party upon demand for, or Secured Party may apply any
proceeds of Collateral to, the reasonable costs and expenses (including
attorneys' fees, transfer taxes and any other charges) incurred by Secured Party
in connection with any sale, disposition, repair, replacement, alteration,
addition, improvement or retention of any Collateral hereunder; provided however
that if the Debtor or the Iowa Tribe is the prevailing party in any action or
proceeding seeking enforcement of this Agreement, then the Debtor or the Iowa
Tribe shall not be and Secured Party shall be responsible for such related costs
and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or


                                 Page 10 of 15

<PAGE>

agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:         Iowa Tribe of Oklahoma
                      a federally-chartered corporation
                      RR1, P.O. Box 721
                      Perkins, OK 74059
                      Attention: Chairman

     With a copy to:  David McCullough, Esq.
                      Doerner, Saunders, Daniel & Anderson, L.L.P.
                      211 N. Robinson Ave. Suite 501
                      Oklahoma City, OK 73102-7112

If to the Iowa Tribe: Iowa Tribe of Oklahoma
                      a federally recognized Indian tribe
                      RR1, P.O. Box 721
                      Perkins, OK 74059
                      Attention: Chairman

     With a copy to:  David McCullough, Esq.
                      Doerner, Saunders, Daniel & Anderson, L.L.P.
                      211 N. Robinson Ave. Suite 501
                      Oklahoma City, OK 73102-7112

If to Secured Party:  Lakes Iowa Management, LLC
                      130 Cheshire Lane
                      Minnetonka, MN
                      Attention: Timothy J. Cope


                                 Page 11 of 15

<PAGE>

     With a copy to:  Kevin C. Quigley, Esq.
                      Hamilton Quigley Twait & Foley PLC
                      W1450 First National Bank Building
                      332 Minnesota Street
                      St. Paul, MN 55101-1314

          and         Brian J. Klein, Esq.
                      Maslon, Edelman, Borman & Brand, LLP
                      3300 Wells Fargo Center
                      90 South Seventh Street
                      Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Management Contract, neither Debtor nor the Iowa Tribe shall assign any of its
interest under this Security Agreement without the prior written consent of
Secured Party. Any purported assignment inconsistent with this provision shall,
at the option of Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other


                                 Page 12 of 15

<PAGE>

agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor and the Iowa Tribe contained herein shall survive the
execution and delivery of this Security Agreement, and shall terminate only upon
the termination of this Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor and the Iowa Tribe hereby
irrevocably appoint Secured Party its attorney-in-fact, which appointment is
coupled with an interest, with full authority in the place and stead of Debtor
and the Iowa Tribe and in the name of each, Secured Party or otherwise, from
time to time in Secured Party's discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Debtor and the Iowa Tribe with respect to the
security interests granted or purported to be granted hereby, (b) to take any
action and to execute any instrument which Secured Party may deem necessary or
advisable to exercise its rights under Section 5(p) hereunder, and (c) upon the
occurrence and during the continuance of an Event of Default, to take any action
and to execute any instrument which Secured Party may deem necessary or
advisable to accomplish the purposes of this Security Agreement, including,
without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.


                                 Page 13 of 15

<PAGE>

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor or the Iowa Tribe all of the Collateral
hereunder which has not been sold, disposed of, retained or applied by Secured
Party in accordance with the terms hereof, and execute and deliver to Debtor or
the Iowa Tribe such documents as Debtor may reasonably request to evidence such
termination. Such reassignment and redelivery shall be without warranty by or
recourse to Secured Party, and shall be at the expense of Debtor or the Iowa
Tribe; provided, however, that this Security Agreement (including all
representations, warranties and covenants contained herein) shall continue to be
effective or be reinstated, as the case may be, if at any time any amount
received by Secured Party in respect of the indebtedness and obligations secured
hereunder is rescinded or must otherwise be restored or returned by Secured
Party upon or in connection with the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Debtor or the Iowa Tribe or any other person or
upon or in connection with the appointment of any intervenor or conservator of,
or trustee or similar official for, Debtor, or the Iowa Tribe or any other
person or any substantial part of its assets, or otherwise, all as though such
payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the Security Agreement as defined and
referred to in the Management Contract. As such and without limiting the scope
of such agreements, the provisions of Section 9.10 and Article 10 of the
Management Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver attached thereto. This Agreement will be governed
by the internal laws of the State of Oklahoma without giving effect to its
conflict of laws principles. The parties hereto may not change the law governing
this Agreement without express written consent of the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:

                                        IOWA TRIBE OF OKLAHOMA
ATTEST:                                 a federally-chartered corporation


By: /s/ Eugene Big Soldier Jr.          By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr.            Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Secretary                          Title: Chairman
     --------------------------------          ---------------------------------


                                        IOWA TRIBE OF OKLAHOMA
ATTEST:                                 a federally recognized Indian tribe


By: /s/  Eugene Big Soldier Jr.         By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr.            Name:  Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Secretary                          Title: Chairman
     --------------------------------          ---------------------------------


                                        SECURED PARTY:

ATTEST:                                 LAKES IOWA MANAGEMENT, LLC


By: /s/ Rob Wyre                        By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Rob Wyre                          Name: Timothy J. Cope
      -------------------------------   Title: President and
Its: SR. V.P. Ops                              Chief Financial Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
                           (IOWA COLLATERAL LOCATIONS)

1.   IOWA CIMARRON CASINO LOCATE IN IOWA INDIAN COUNTRY IN PERKINS, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.131
<SEQUENCE>66
<FILENAME>c92713exv10w131.txt
<DESCRIPTION>INDEMNITY AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.131

                               INDEMNITY AGREEMENT
                                (CIMARRON CASINO)

     This Indemnity Agreement is dated as of January 27, 2005, by and between
the Iowa Tribe of Oklahoma, a federally-chartered corporation ("Iowa Corp"),
created pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
1936 (49 Stat. 1967), as issued on January 4, 1938 by the Secretary of the
Interior and ratified on February 5, 1938 located in Iowa Indian Country within
the physical boarders of the State of Oklahoma, with business offices located at
RR 1, P.O. Box 721, Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma, a
federally-recognized Indian tribe with a Constitution approved and ratified
under the Oklahoma Indian Welfare Act, and Lakes Iowa Management, LLC, a
Minnesota limited liability company (hereinafter referred to as "Lakes"), whose
business office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                   WITNESSETH:

          WHEREAS, Lakes has entered into an agreement with Iowa Corp and the
Iowa Tribe for the Cimarron Casino dated January 27, 2005 ("Management
Contract"), pursuant to which Lakes is to manage the Gaming Facility and related
Ancillary Facilities for the Cimarron Casino owned by Iowa Corp on behalf of the
Iowa Tribe; and

          WHEREAS, Lakes, Iowa Corp and the Iowa Tribe have required each to
execute and deliver this Indemnity Agreement to each other to induce Lakes to
assist with management of the Project Facilities and to induce Iowa Corp and the
Iowa Tribe to allow Lakes to comply with Environmental Laws in the management of
the Project Facilities;

          NOW, THEREFORE, for valuable consideration, the receipt of which is
hereby acknowledged, Iowa and Lakes agree as follows:

     1. RECITALS TRUE. The above recitals are true.

     2. DEFINITIONS. Capitalized terms used but not otherwise defined herein and
defined in the Management Contract shall have the same meaning herein as
therein. As used herein, the following additional terms shall have the following
meanings:

     (a) Environmental Laws: Together: (i) the Resource Conservation Recovery
Act, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C.
Sections 6901 et seq.; (ii) the Comprehensive Environmental Response,
Compensation and Liability Act, as amended by the Superfund Amendments and
Reauthorization Act, 42 U.S.C. Sections 9601 et seq.; (iii) the Clean Water Act,
33 U.S.C. Sections 466 et seq. and 33 U.S.C. Sections 1344 et seq.; (iv) the
Safe Drinking Water Act, 14 U.S.C. Sections 1401-1450; (v) the Toxic Substances
Control Act, 15 U.S.C. Sections 2601-2629; (vi) the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801 et seq.; (vii) all applicable
Oklahoma environmental laws; (viii) the Clean Air Act, 42 U.S.C. Sections 7401
et seq.; (ix) any other applicable federal, state, local or tribal environmental
laws or laws related to the regulation of Hazardous Materials; (x) any
applicable local, state or federal rules or regulations promulgated pursuant to
items (i) through (ix) and any similar local, state or federal laws, rules,
ordinances or regulations either in existence as of the date hereof, or enacted
or promulgated after the date of this Agreement, that concern the
transportation, storage, placement, handling, treatment, release, discharge,
generation, manufacture, production, disposal, management, control, discharge,
treatment, containment, and/or removal of substances or materials that are or
may become a threat to public health or the environment; or (xi)


                                       -1-

<PAGE>

any common law theory involving materials or substances which are or are alleged
to be hazardous to human health or the environment based on nuisance, trespass,
negligence, strict liability or other tortious conduct.

     (b) Hazardous Materials: Together: (i) any substance, material, or matter
that may give rise to liability under any Environmental Laws; (ii) any
"hazardous substance" listed in the U.S. Department of Transportation Table (49
C.F.R. 172.101), as the same may be amended from time to time; and (iii)
asbestos, lead paint, pcb's, urea formaldehyde foam insulation, radioactive
materials and any materials, the removal of which is required or the maintenance
of which is prohibited or penalized.

     (c) Lakes Indemnitee or Indemnitees: Lakes, its affiliates and subsidiaries
and any parent entities, together with their respective officers, directors,
shareholders, employees, agents, attorneys and other representatives, and their
successors and assigns. Each reference to any Lakes Indemnitee herein shall
refer jointly, severally and individually to each such party.

     (d) Iowa Indemnitee or Indemnitees: Iowa Corp and the Iowa Tribe, their
affiliates and subsidiaries and any parent entities, together with their
respective officers, directors, shareholders, employees, agents, attorneys and
other representatives, and their successors and assigns. Each reference to any
Iowa Indemnitee herein shall refer jointly, severally and individually to each
such party.

     (e) Project Claims: Any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, costs, expenses and disbursements (including,
but not limited to, all reasonable attorneys' fees and expenses and all other
professionals' or consultants' reasonable expenses incurred in investigating,
preparing for, serving as a witness in or defending against any action or
proceeding, whether actually commenced or threatened, which may be asserted
against any Lakes or Iowa Indemnitee), arising from, in respect of, as a
consequence of, or in connection with any claims and matters (excluding
Environmental Losses) described in Sections 2.9, 7.1, 7.2, 7.3 and 7.4 of the
Management Contract, each whether now existing or hereafter arising.

     (f) Environmental Losses: Any and all liabilities, obligations, losses,
damages, penalties, claims, actions, suits, costs, expenses and disbursements
(including, but not limited to, all reasonable attorneys' fees and expenses and
all other professionals' or consultants' reasonable expenses incurred in
investigating, preparing for, serving as a witness in or defending against any
action or proceeding, whether actually commenced or threatened, which may be
asserted against any indemnitees), arising from, in respect of, as a consequence
of, or in connection with any of the following: (i) the remediation of any
Hazardous Material placed on or released from the Gaming Facility Site, Project
Facilities or the lands upon which they are located as may be required by law,
whether such removal is done or completed by Iowa, Lakes, or any other person or
entity; (ii) claims asserted at any time (prior to or after the date of this
Agreement) by any person or entity (including, without limitation, any
governmental agency or quasi-governmental authority, board, bureau, commission,
department, instrumentality or public body, court, or administrative tribunal (a
"Government Agency"), in connection with or in any way arising out of the
presence, storage, use, disposal, generation, transportation, or treatment of
any Hazardous Material on, in or under the Gaming Facility Site, Project
Facilities or the lands upon which they are located; (iii) the violation or
claimed violation of any Environmental Laws in regard to the Gaming Facility
Site, Project Facilities or the lands upon which they are located; (iv) the
preparation of an environmental audit on the Gaming Facility Site, Project
Facilities or the lands upon which they are located, whether conducted or
authorized by indemnitor, an indemnitee, or a third party; (v) the violation or
claimed violation of Oklahoma environmental laws, as a result of the condition
of the Gaming Facility Site, Project Facilities or the lands upon which they are
located, or any other applicable federal, state, local or tribal environmental
law or laws relating to the regulation of Hazardous Materials and the removal
from the Gaming Facility Site, Project Facilities or the lands upon which they
are located of paint, plaster, soil


                                       -2-

<PAGE>

and other accessible material containing levels of lead which are in violation
of applicable law, each whether now existing or hereafter arising.

     (g) Indemnified Obligations. With respect to Iowa Indemnities, means the
Iowa Project Indemnity Obligations and the Iowa Environmental Indemnity
Obligations. With respect to Lakes Indemnities, means the Lakes Project
Indemnity Obligations and Lakes Environmental Indemnity Obligations.

     3. INDEMNITY.

     (a) Project Claims. Iowa Corp and the Iowa Tribe agree to indemnify and to
hold each Lakes Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Lakes Indemnitees resulting from or due to any Project Claims
excluding any such claims or losses resulting from a Lakes Indemnitee's gross
negligence or willful or criminal misconduct (individually and collectively, the
"Iowa Project Indemnity Obligations"). Lakes agrees to indemnify and to hold
each Iowa Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Iowa Indemnitees resulting from Lakes' gross negligence or
willful or criminal misconduct (individually and collectively, the "Lakes
Project Indemnity Obligations").

     (b) Environmental Claims. Lakes agrees to indemnify and to hold each Iowa
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or incurred by, any of
the Iowa Indemnitees resulting from or due to any Environmental Losses arising
after the date of this Indemnity Agreement resulting from or due to Lakes' gross
negligence or willful or criminal misconduct (individually and collectively, the
"Lakes Environmental Indemnity Obligations"). Iowa Corp and the Iowa Tribe agree
to indemnify and to hold each Lakes Indemnitee harmless from any and all claims,
causes of action, damages, penalties, fees and costs which may be asserted
against, or incurred by, any of the Lakes Indemnitees resulting from or due to
any Environmental Losses; excluding however any Environmental Losses arising
after the date of this Indemnity Agreement that result from Lakes gross
negligence or willful or criminal misconduct (individually and collectively, the
"Iowa Environmental Indemnity Obligations").

     (c) Iowa Corp's and the Iowa Tribe's duty to indemnify and hold harmless
includes, but is not limited to, loss or liability asserted in proceedings or
actions commenced by any person (including, but not limited to, any federal,
state, or local governmental agency or entity) before any court or
administrative agency asserting a claim for which Iowa must indemnify Lakes
Indemnitees under this section. Lakes' duty to indemnify and hold harmless
includes, but is not limited to, loss or liability asserted in proceedings or
actions commenced by any person (including, but not limited to, any federal,
state, or local governmental agency or entity) before any court or
administrative agency asserting a claim for which Lakes must indemnify Iowa
Indemnitees under this section.

     (d) Each Lakes Indemnitee agrees that it shall not pay any Project Claim
asserted by any party without first offering Iowa the opportunity and right to
assume the defense of any and all related actions or proceedings, but the
foregoing is not intended to restrict any Lakes Indemnitee's ability to obtain
reimbursement for any cost, expenses and related disbursements incurred in
connection with the investigation or defense of such claim or loss. Each Iowa
Indemnitee agrees that it shall not pay any Project Claim asserted by any party
without first offering Lakes the opportunity and right to assume the defense of
any and all related actions or proceedings, but the foregoing is not intended to
restrict any Iowa Indemnitee's ability to obtain reimbursement for any cost,
expenses and related disbursements incurred in connection with the investigation
or defense of such claim or loss.

     (e) Iowa Corp's and the Iowa Tribe's obligations to indemnify and hold the
Lakes Indemnitees harmless hereunder shall survive any termination or expiration
of the Management Contract and the repayment


                                       -3-

<PAGE>

and/or satisfaction of all obligations now or hereafter owed by Iowa to Lakes
under the Management Contract and any other instruments, documents or agreements
related thereto. Lakes' obligations to indemnify and hold the Iowa Indemnitees
harmless hereunder shall survive any termination or expiration of the Management
Contract and the repayment and/or satisfaction of all obligations now or
hereafter owed by Lakes to Iowa Corp or the Iowa Tribe under the Management
Contract and any other instruments, documents or agreements related thereto.

     4. ADVANCES UNDER OPERATING NOTE. Notwithstanding the foregoing and without
limiting the rights of Lakes under the Management Contract, all Project Claims
and Environmental Claims ultimately determined to be due from but not paid by
Iowa Corp or the Iowa Tribe on demand by any of the Lakes Indemnitees, shall be
deemed to be an Advance made by Lakes to Iowa Corp under the terms of the
Operating Note, shall accrue interest from the date incurred and shall continue
to be immediately due and payable. Notwithstanding the foregoing and without
limiting the rights of Iowa Corp or the Iowa Tribe under the Management
Contract, all Project Claims and Environmental Claims ultimately determined to
be due from but not paid by Lakes on demand by any Iowa Indemnitees shall be
deemed to be a prepayment made by Iowa Corp to Lakes under the terms of the
Operating Note; if the aggregate amount of the Project Claims or Environmental
Claims exceeds the outstanding balance of the Operating Note, but only to the
extent of the outstanding amount under the Operating Note.

     5. OBLIGATION TO DEFEND.

     (a) Assumption of Defense. Upon request of any indemnitee, the indemnitor
shall be bound to defend any and all actions or proceedings that may be brought
against such indemnitee in connection with or arising out of any Indemnified
Obligations and the matters covered by this Agreement, and indemnitee shall give
written notice to the indemnitor of any litigation or proceedings pending,
threatened or commenced (whether or not served) against the indemnitee in
connection with any Indemnified Obligations. If indemnitor is defending an
indemnitee, indemnitor may settle the claim only with the indemnitee's prior
written consent, such consent not to be unreasonably withheld if the indemnitee
is not subject to any further liabilities, obligations, restrictions or
prohibitions with respect to said claim.

     (b) Delivery of Acknowledgment. Within 30 days from the date of receipt by
indemnitor from any indemnitee of a request to defend (which request shall refer
to such 30-day time period), indemnitor must acknowledge in a writing its duty
to defend and that such claim is covered in its entirety by this Agreement (the
"Acknowledgment") or if in the judgment of the indemnitor such claim is not
covered in its entirety by this Agreement, the statement of indemnitor to such
effect including its reasons for such judgment in reasonable detail; provided,
however, that until the Indemnitee receives the Acknowledgment, the Indemnitee
shall be entitled to defend such claim and Indemnitor shall be bound in the
manner set forth in Section 5(d) hereof.

     (c) Conduct of Defense; Participation by Indemnitee. If indemnitor is
defending an indemnitee, such defense shall be conducted by reputable attorneys
retained by indemnitor, reasonably satisfactory to said indemnitee, at
indemnitor's sole cost and expense. In addition, said indemnitee shall have the
right to participate in such proceedings at said indemnitee's sole cost and
expense and to be represented by attorneys in addition to the attorneys retained
by indemnitor of said indemnitee's own choosing and at said indemnitee's sole
cost and expense, except that if the Indemnitee reasonably concludes, by
applying applicable standards of professional responsibility, that the interests
of indemnitee and of indemnitor in the action conflict in such a manner as to
require retention of separate counsel for the indemnitee, indemnitor shall
reimburse indemnitee its reasonable fees for separate counsel chosen by the
indemnitee. Notwithstanding the foregoing, if an indemnitee, at any time,
refuses to enter into a settlement agreement negotiated by indemnitor or its
counsel, indemnitor shall no longer be liable for an adverse judgment against
such indemnitee to the extent that such


                                       -4-

<PAGE>

adverse judgment exceeds said settlement amount and such indemnitee shall be
liable for all of its defense costs after such refusal.

     (d) Indemnitor's Failure to Defend. If indemnitor fails to deliver the
Acknowledgment or fails to choose counsel reasonably satisfactory to the
indemnitee, indemnitor shall not thereafter be entitled to elect to defend such
action, and indemnitor shall be bound by and shall be conclusively liable for
the results obtained by the indemnitee, including without limitation the amount
of any judgment or good faith out-of-court settlement or compromise and all
costs and reasonable fees of counsel incurred by the indemnitee in connection
therewith, but subject always to the scope and limitations expressly set forth
in this Agreement.

     (e) Defense by Indemnitee. If an action or proceeding is brought against an
indemnitee or to which an indemnitee may be a party, and such indemnitee elects
to conduct its own defense because indemnitor fails to choose counsel reasonably
satisfactory to said indemnitee, indemnitor shall be conclusively liable for the
results obtained by the indemnitee, including without limitation the amount of
any judgment or good faith, out-of-court settlement or compromise. In addition,
indemnitor shall be liable for any and all costs and expenses, including, but
not limited to, all attorneys' fees, that said indemnitee incurs.

     6. ARBITRATION; LIMITED WAIVER OF SOVEREIGN IMMUNITY. Any disputes under
this Indemnification Agreement shall be subject to the dispute resolution and
arbitration provisions as provided in Article 10 of the Management Contract and
be resolved in the venues provided in Article 10 of the Management Contract. The
limited waiver of sovereign immunity in Section 9.10 of the Management Contract
by Iowa Corp and the Iowa Tribe shall apply to this Agreement.

     7. LIMITED RECOURSE. The liability and obligations of Iowa Corp and the
Iowa Tribe under or relating to this Agreement shall always be joint and several
and shall be Limited Recourse, and in no instance shall any enforcement of any
kind whatsoever be allowed against any assets of Iowa Corp or the Iowa Tribe
other than the limited assets of Iowa Corp and the Iowa Tribe specified in the
definition of the term "Limited Recourse" in the Management Contract.

     8. CAPTIONS, GENDER, AND NUMBER. Any section or paragraph, title or caption
contained in this Agreement is for convenience only and shall not be deemed a
part of this Agreement. As used in this Agreement, the masculine, feminine or
neuter gender, and the singular or plural number, shall each be deemed to
include the others whenever the context so allows.

     9. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of an
indemnitee in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power, right or privilege preclude any other or further exercise of any such
power, right of privilege. All powers, rights and privileges hereunder are
cumulative to, and not exclusive of, any powers, rights or privileges otherwise
available.

     10. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Oklahoma without giving effect to its
conflict of laws principles.

     11. AMENDMENTS, ASSIGNMENTS, ETC. Any provision of this Agreement may be
amended if, but only if, such amendment is in writing and is signed by each of
the parties hereto. No modification shall be implied from course of conduct.
This Agreement shall be binding on and inhered to the benefit of each of the
parties hereto and their respective successors and assigns, subject to the same
restrictions on assignability as set forth in the Management Contract. This
Agreement may be executed in separate counterparts and by facsimile and such
counterparts shall be deemed to constitute one binding document.


                                       -5-

<PAGE>

     12. NOTICES. Any notice or demand required to be given under this Agreement
shall be given in the same manner and shall be deemed effective in accordance
with the terms set forth in Section 9.3 of the Management Contract.

                 (Balance of this page intentionally left blank)


                                       -6-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Indemnity Agreement
to be executed under seal as of the 27th day of January, 2005

                                        Lakes Iowa Management, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Rod Wyre
                                            ------------------------------------
                                        Name: Rod Wyre
                                              ----------------------------------
                                        Its: SR V.P. OPS
                                             -----------------------------------


                                        Iowa Tribe of Oklahoma
                                        a federally-chartered corporation


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        Iowa Tribe of Oklahoma
                                        a federally recognized Indian tribe


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairman
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Its: Secretary
                                             -----------------------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.132
<SEQUENCE>67
<FILENAME>c92713exv10w132.txt
<DESCRIPTION>TRIBAL AGREEMENT (CIMARRON CASINO)
<TEXT>
<PAGE>
                                                                  Exhibit 10.132

                                TRIBAL AGREEMENT
                      (LAKES MANAGEMENT -- CIMARRON CASINO)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 27, 2005 ("Effective Date") by and among the Iowa Tribe of
Oklahoma ("Iowa Tribe"), a federally recognized Indian tribe, and Lakes Iowa
Management, LLC, a Minnesota limited liability company ("Lakes Management").

                                    RECITALS

     A. The Iowa Tribe is a federally recognized Indian tribe eligible for the
special programs and services provided by the United States to Indian tribes,
and is recognized as possessing and exercising powers of self-government. The
Iowa Tribe, pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
1936 (49 Stat. 1967), was issued a corporate charter for Iowa Corp on January 4,
1938 by the Secretary of the Interior and said corporate charter was ratified by
the Iowa Tribe on February 5, 1938. Iowa Corp is vested with sovereign immunity,
and is the entity that controls and manages the economic affairs of the Iowa
Tribe, including tribal gaming operations.

     B. Lakes Consulting has entered into a management agreement with Iowa Corp
and the Iowa Tribe dated January 27, 2005 (as amended from time to time, the
"Management Contract"), pursuant to which Lakes Management is to provide certain
management services to Iowa Corp with respect the Cimarron Casino located in
Perkins, Oklahoma owned by Iowa Corp on behalf of the Iowa Tribe as described
with specificity therein.

     C. Pursuant to the terms of the Management Contract, the Iowa Tribe is
required to execute and deliver this Agreement to induce Lakes Management to
enter into the Management Contract together with certain additional documents
and agreements referred to therein or related thereto.

     D. The Iowa Tribe and Lakes Management intend that this Agreement shall be
operative and binding upon the date of execution by the parties (the "Effective
Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, the Iowa Tribe
and Lakes Management agree as follows:


                                       1

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Management
Contract and/or the other documents and agreements executed by Iowa with respect
thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
the Iowa Tribe and any of Lakes Management or any of its Affiliates that is
directly or indirectly related to this Agreement, any of the other Transaction
Documents, a Gaming Project or any Project Facilities, whether arising under law
or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or any of the other
Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(n) hereof.

     "Iowa Entities" means individually and collectively, each of Iowa Corp and
the Iowa Tribe.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Management Contract, the Operating Note, the security
agreements, dominion account agreements, mortgages, resolutions of limited
waiver and each other document or instrument now or hereafter executed by any of
Iowa Corp and/or the Iowa Tribe in favor of Lakes Management or its respective
Affiliates and related thereto or hereto or any Gaming Projects.

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. The Iowa Tribe represents and
warrants to Lakes Management that:

     (a)  Organization. The Iowa Tribe is a federally recognized Indian tribe
          eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Each of Iowa Corp and Iowa Tribe has taken all
          action required by tribal or other law without the necessity of
          further action as is necessary to authorize the applicable Iowa Entity
          to execute, deliver and perform each of the Transaction Documents that
          such Iowa Entity is party to. Each Iowa Entity that is a party to any
          of the Transaction Documents has all requisite power and authority to
          enter into the Transaction Documents to the extent a party thereto and
          to perform its respective obligations thereunder, and to consummate
          all other transactions contemplated thereby.


                                       2

<PAGE>

     (c)  Binding Obligations. Each of Transaction Documents (i) has been duly
          executed and delivered by each Iowa Entity to the extent it is a party
          thereto, and (ii) constitutes the legal, valid, binding, perfected and
          enforceable obligation of each Iowa Entity to the extent it is a party
          thereto, enforceable in accordance with its respective terms, except
          as enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for the Project
          constitutes "Indian lands" upon which the Iowa Tribe may legally
          conduct gaming under IGRA.

     (e)  Gaming Permitted. The Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Iowa Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Iowa Tribe. Iowa Corp will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          Iowa Corp under the Transaction Documents to the extent set forth in
          the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Management to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by any of Iowa Corp or the Iowa Tribe or affecting the Gaming
          Facility Site or the Project, whether arising from contracts,
          instruments, orders, judgments, decrees or otherwise, that are likely
          to materially and adversely affect the Project or the obligations or
          rights of Lakes Management under any of the Transaction Documents to
          which it is a party.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          the applicable Iowa Entity of each Transaction Documents that such
          Iowa Entity is party to does not violate any Legal Requirements nor
          conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of any Iowa Entity, including without limitation
          the Project, or result in the acceleration of any obligation of any
          Iowa Entity under the terms of any agreement or document binding upon
          such party, other than a conflict, breach, default or imposition as
          shall not materially adversely affect the Project or the obligations
          or rights of Lakes Management under any of the Transaction Documents
          to which it is a party.


                                       3

<PAGE>

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of any Iowa
          Entity, threatened, against any Iowa Entity or their respective
          Affiliates, or any of the assets or properties of any of such
          entities, that could have a material adverse effect on the Project,
          its Project Facilities, any Iowa Entity's ability to enter into or
          perform any of the Transaction Documents to the extent it is a party
          thereto.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by the Iowa Tribe is
          required to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of any Iowa Entity in
          this Agreement or the other Transaction Documents and no report or
          statement delivered to any of Lakes Management or its respective
          Affiliates by or on behalf of any Iowa Entity, contains any untrue
          statement or omits to state a material fact necessary to make any such
          representation, warranty, report or statement, in light of the
          circumstances in which they were made, not misleading. Each Iowa
          Entity has fully disclosed to Lakes Management the existence and terms
          of all material agreements and Legal Requirements, written or oral,
          relating to the Project.

     (m)  No Tribal Tax. Neither the Project, Project Facilities nor the
          transaction(s) between the parties contemplated by the Transaction
          Document are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax of any sort other than (i)
          reasonable pass-through taxes on Project patrons which are consistent
          with gaming resort industry practices, and (ii) the fees and
          assessments described in clause (c) of the definition of "Costs of
          Operations" as set forth in the Management Contract.

     (n)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of the Iowa
          Tribe are/will be owned and operated by Iowa Corp, or if any Gaming
          Project is owned by another subsidiary of the Iowa Tribe, then (i) if
          the Gaming Project constitutes the Project, Gaming Facility and
          Project Facilities described and defined in the Management Contract,
          such subsidiary has entered into a Management Contract and related
          documents with Lakes Management and/or its Affiliates with respect
          thereto on the same terms and conditions as are set forth in the
          Management Contract and the other Transaction Documents unless
          otherwise agreed to in writing by Lakes or its Affiliate, and has
          otherwise satisfied the terms and conditions required by Section 3.1
          (f) hereof, or (ii) with respect to any other Gaming Projects, the
          subsidiary has entered into a written agreement with Lakes Management
          and/or its Affiliates granting such entity the same right of first
          refusal to manage such projects as has been granted to Lakes
          Management under the terms of Section 9.21 of the Management


                                       4

<PAGE>

          Contract and has otherwise satisfied the terms and conditions required
          by Section 3.1 (f) hereof.

                                    ARTICLE 3
                                    COVENANTS

     Section 3.1 Covenants. The Iowa Tribe covenants and agrees as follows:

          (a)  Additional Documents. It shall or shall cause Iowa Corp to
               execute any additional instruments as may be reasonably required
               by Lakes Management to carry out the intent of any of the
               Transaction Documents or to perfect or give further assurance of
               any of the rights granted or provided for under such Transaction
               Documents.

          (b)  Non-Impairment. It shall not and shall not permit Iowa Corp or
               any of its other governmental instrumentalities or subsidiaries
               to enact any law, ordinance, rule or regulation impairing the
               rights or obligations of any Iowa Entity or any of Lakes
               Management or its respective Affiliates under any of the
               Transaction Documents.

          (c)  Records. It shall or shall cause Iowa Corp to maintain or cause
               to be maintained full and accurate accounts and records for any
               particular Gaming Project and its Project Facilities according to
               GAAP.

          (d)  No Liens. Except as otherwise expressly permitted by the
               Transaction Documents, it shall not and shall not permit Iowa
               Corp or any of its other governmental instrumentalities or
               subsidiaries to cause or voluntarily permit any lien or
               encumbrance to be created on the Project Facilities for any
               particular Gaming Project, any Gaming Project's Gaming Facility
               Site or any proceeds of the Gaming Project Permanent Financing.

          (e)  No Tax. It shall not and shall not permit Iowa Corp or any of
               their other governmental instrumentalities or subsidiaries to
               impose any tax, fee or assessment on any of Lakes Management, its
               respective Affiliates, any Contractor, any Gaming Project and its
               Project Facilities, and/or any of the Transaction Documents other
               than (i) reasonable pass-through taxes on Project patrons which
               are consistent with gaming resort industry practices, and (ii)
               the fees and assessments described in clause (c) of the
               definition of "Costs of Operations" as set forth in the
               Management Contract.

          (f)  Gaming Project Ownership. Except as otherwise expressly excluded
               under the Transaction Documents, all Gaming Projects shall be
               owned and operated by Iowa Corp; provided that a Gaming Project
               may be owned and operated by another subsidiary of the Iowa Tribe
               so long as prior to


                                       5

<PAGE>

               acquiring such ownership: (i) if the Project, Gaming Facility and
               Project Facilities described and defined in the Management
               Contract are owned by such other subsidiary, such subsidiary has
               entered into a Management Contract and related documents with
               Lakes Management and/or its Affiliates with respect thereto on
               the same terms and conditions as are set forth in the Management
               Contract and the Transaction Documents related thereto, (ii) with
               respect to any other gaming projects owned or to be owned by such
               other subsidiary, the subsidiary has entered into a written
               agreement with Lakes Management and/or its Affiliates granting
               such entity the same right of first refusal to manage such
               projects as has been granted to Lakes Management under the terms
               of Section 9.21 of the Management Contract; (iii) Lakes
               Management shall have received the following, each in form and
               substance reasonably acceptable to it: (aa) certified copies of
               the organizational documents of the new subsidiary, together with
               reasonable evidence that such subsidiary is wholly owned by the
               Iowa Tribe, (bb) new Resolutions of Limited Waiver with respect
               to all of such documents and agreements from each of the new
               subsidiary and the Iowa Tribe containing substantially the same
               resolutions and terms as set forth in the Resolutions of Limited
               Waiver received by Lakes Management in connection with the
               execution of the original Transaction Documents, (bb) legal
               opinions from counsel to each of the new subsidiary and the Iowa
               Tribe with respect to the such new documents and agreements
               containing substantially the same opinions as provided to Lakes
               Management in connection with the execution of the original
               Transaction Documents, and (cc) the Iowa Tribe shall have
               executed and delivered an amendment to this Agreement
               incorporating all such new documents and agreements as additional
               "Transaction Documents" hereunder and such projects and related
               assets shall be subject to the same terms and restrictions set
               forth herein; and (iv) at the time of satisfaction of the
               foregoing conditions, no "Event of Default" by any Iowa Entity
               under the Transaction Documents has occurred and is continuing.

                                    ARTICLE 4
                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by the Iowa Tribe exists. As used in this paragraph,
          the term "Material Breach" shall mean any of the following
          circumstances (i) material failure of the Iowa Tribe to perform a
          material obligation hereunder or any other Transaction Document to
          which it is a party, or (ii) any representation or warranty made
          pursuant to Section 2.1 hereof proves to be knowingly false or
          erroneous in any material way when made or at any time shall fail to
          be true and correct in all material respects.


                                       6

<PAGE>

     (b)  The Iowa Tribe violates any of the covenants in Section 3.1 of this
          Agreement, and after sixty (60) days have passed following a request
          by Lakes Management to such Iowa Entity to cure the violation, during
          which the violation has not been cured.

     (c)  The Iowa Tribe has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of such entities property; or (iii) suffered an
          assignment for the benefit of creditors.

     (d)  The Iowa Tribe is no longer an Indian tribe eligible to conduct gaming
          within the meaning of IGRA.

     Section 4.2 Cure of Event Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to the Iowa Tribe of such default and,
if it is possible for such party to cure the Event of Default, it shall have
thirty (30) days following receipt of notice to effect a cure; provided,
however, that if the nature of such breach (but specifically excluding breaches
curable by the payment of money) is such that it is not possible to cure such
breach within thirty (30) days, such thirty-day period shall be extended for so
long as either Iowa TDC or Iowa Tribe, as applicable, shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
Upon the occurrence of any of the events described in Section 4.1 and during any
applicable cure period, Lakes Management may suspend its performance under the
Transaction Documents. The discontinuance or correction of an Event of Default
shall constitute a cure thereof. If the Iowa Tribe fails to cure the Event of
Default within the 30-day period, Lakes Management may take any one or more of
the following actions: (a) suspend all performance of Lakes Management under the
Transaction Documents; (b) declare all obligations of any Iowa Entity under the
Transaction Documents to be immediately due and owing, (c) terminate the
Management Contract; and/or (d) pursue any other remedy available at law, in
equity or by agreement, subject to the provisions of Article 5 hereof.

                                    ARTICLE 5
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                          JURISDICTION; GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission;


                                       7

<PAGE>

          except that: (a) the question whether or not a Claim is arbitrable
          shall be a matter for binding arbitration by the arbitrators, such
          question shall not be determined by any court and, in determining any
          such question, all doubts shall be resolved in favor of arbitrability;
          and (b) discovery shall be permitted in accordance with the Federal
          Rules of Civil Procedure, subject to supervision as to scope and
          appropriateness by the arbitrators. Unless the parties otherwise agree
          to in writing, arbitration proceedings shall be held at Oklahoma City,
          Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 5 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.


                                       8

<PAGE>

     (f)  The Iowa Tribe hereby expressly waives, and also waives its right to
          assert, sovereign immunity and any and all defenses based thereon with
          respect to any Claims; and such parties further hereby consents to (i)
          binding arbitration under the Commercial Arbitration Rules of the
          American Arbitration Association, (ii) to empowering the arbitrators
          to take the actions and enforce the judicial remedies described in the
          Iowa Tribe Resolution of Limited Waiver of Sovereign Immunity,
          Resolution I-05-09, dated January 27, 2005 issued in connection with
          the execution of the Transaction Documents (the "Resolution of Limited
          Waiver"), and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, the Iowa
          Tribe expressly waives the application of the doctrines of exhaustion
          of tribal remedies or comity that might otherwise require that Claims
          be heard first in tribal court or other tribal forum of the Iowa
          Tribe. The waivers set forth herein only extend to claims or
          proceedings brought by Lakes Management and its Affiliates and any
          award of damages against the Iowa Tribe or its Affiliates shall be
          payable solely out of the Collateral (as defined in the Resolutions of
          Limited Waiver) whether now or hereafter owned by Iowa Corp, any other
          Iowa Entity or their Affiliates.

     (h)  The Iowa Tribe, on behalf of itself and each of its Affiliates, agrees
          that any arbitration proceeding hereunder may be consolidated with any
          other arbitration proceeding that any of Lakes Management or its
          respective Affiliates may bring against Iowa Corp or any other
          Affiliates of the Iowa Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Management may assign this
Agreement to a wholly owned subsidiary without the consent of the Iowa Tribe;
provided further that Lakes Management, as applicable, shall remain obligated
for the performance of its subsidiary hereunder. Other than as expressly
provided in this Section 6.1, any attempted assignment or subcontracting without
prior written consent shall be void. Subject to the preceding requirements, this
Agreement is binding upon and inures to the benefit of the parties and their
respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the


                                       9

<PAGE>

date sent; (c) must be delivered by personal service, via fax with reasonable
evidence of transmission, express delivery or by certified or registered mail,
postage prepaid, return receipt requested; and (d) until written notice of a new
address or addresses is given, must be addressed as follows:

If to the Iowa Tribe:   Iowa Tribe of Oklahoma
                        a fedrally recognized Indian tribe
                        RR 1, P.O. Box 721
                        Perkins, Ok 74059

With a Copy to:         David McCullough, Esq.
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112
                        (copy to counsel does not constitute notice to a party)

If to Lakes:            Lakes Iowa Management, LLC
                        130 Cheshire Lane
                        Minnetonka, MN 55305
                        Attn: Timothy J. Cope

With a Copy to:         Kevin C. Quigley, Esq.
                        Hamilton Quigley Twait & Foley PLC
                        W1450 First National bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

     and                Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140
                        (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.


                                       10

<PAGE>

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                       11

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        IOWA TRIBE OF OKLAHOMA
                                        A FEDERALLY RECOGNIZED INDIAN TRIBE


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairman
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier JR.
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA MANAGEMENT, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                           Timothy J. Cope
                                        Its: President and Chief Financial
                                             Officer

        [Signature Page to Iowa Tribal Agreement - Management - Cimarron]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.133
<SEQUENCE>68
<FILENAME>c92713exv10w133.txt
<DESCRIPTION>GAMING DEVELOPMENT CONSULTING AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.133


                               GAMING DEVELOPMENT
                              CONSULTING AGREEMENT
                                  (NEW PROJECT)

     THIS GAMING DEVELOPMENT CONSULTING AGREEMENT (hereinafter referred to as
the "Agreement") is made as of January 27, 2005 ("Effective Date") by and
between the Iowa Tribe of Oklahoma, a federally-chartered corporation ("Iowa
Corp"), created pursuant to Section 3 of the Oklahoma Indian Welfare Act of June
26, 1936 (49 Stat. 1967), as issued on January 4, 1938 by the Secretary of the
Interior and ratified on February 5, 1938 located in Iowa Indian Country within
the physical boarders of the State of Oklahoma, with business offices located at
RR 1, P.O. Box 721, Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma, a
federally-recognized Indian tribe with a Constitution approved and ratified
under the Oklahoma Indian Welfare Act, and Lakes Iowa Consulting, LLC, a
Minnesota limited liability company ("Lakes").

                                    RECITALS

     A. The Iowa Tribe of Oklahoma ("Iowa Tribe") is a federally recognized
Indian tribe eligible for the special programs and services provided by the
United States to Indian tribes, and is recognized as possessing and exercising
powers of self-government. The Iowa Tribe, pursuant to Section 3 of the Oklahoma
Indian Welfare Act of June 26, 1936 (49 Stat. 1967), was issued a corporate
charter for Iowa Corp on January 4, 1938 by the Secretary of the Interior and
said corporate charter was ratified by the Iowa Tribe on February 5, 1938. Iowa
Corp is vested with sovereign immunity, and is the entity that controls and
manages the economic affairs of the Iowa Tribe, including its tribal gaming
operations.

     B. The Iowa Tribe, through Iowa Corp, wishes to develop, construct and
operate a new gaming facility project located in Iowa Indian Country which will
conduct Class II Gaming (and also Class III Gaming activities in the event of
federal agency approval of a Tribal-State Compact between the Iowa Tribe and the
State of Oklahoma permitting such gaming) ("Gaming Facility," as further defined
herein), together with related amenities such as a hotel, food and beverage
facilities, retail outlets, and ancillary building and enterprises that enhance
the Gaming Facility ("Ancillary Facilities," as further defined herein) (the
Gaming Facility and the Ancillary Facilities together, the "Project
Facilities"). The Project Facilities are expected to generate substantial
revenues for Iowa Corp, and therefore significantly improve the social, economic
and health conditions of present and future tribal members, while strengthening
the Iowa Tribe's overall economic self-sufficiency and self-determination of the
Iowa Tribe.

     C. Lakes has the requisite skills, resources, experience, and expertise
related to real estate acquisitions, financing, development and construction,
and operations of gaming facilities and related amenities to assist Iowa Corp in
the development, financing and construction of the


                                       -1-

<PAGE>

Project Facilities and to provide consulting services relating to operations of
the Project Facilities.

     D. Iowa Corp presently lacks the resources to develop and finance the
Project Facilities and desires to retain the services of the Lakes as set forth
herein.

     E. For the compensation set forth herein, Lakes wishes to provide the
following services to Iowa Corp as more fully set forth herein: (1) funding of
the Project Preliminary Development Loan; (2) assistance in arranging the
Project Permanent Financing; (3) development and construction management for the
Project Facilities; and (4) consulting services in connection with pre-opening
and post-opening operations of the Project Facilities.

     F. Iowa Corp desires to grant to Lakes the exclusive right to develop,
arrange for financing of, construct, equip and consult in connection with
pre-opening and post-opening operations of Iowa Corp's Project Facilities as set
forth in this Agreement, and Lakes desires to undertake those responsibilities
in accordance with this Agreement. Iowa Corp also desires to grant to Lakes,
unless otherwise agreed to in writing by Lakes, the right to participate in any
other gaming project opportunity Iowa Corp pursues in the State of Oklahoma
under the same terms and conditions described herein.

     G. Iowa Corp, the Iowa Tribe and Lakes intend that this Agreement shall be
operative and binding upon the date of execution by the parties ("Effective
Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Iowa Corp, the
Iowa Tribe and Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Agreement" means this Gaming Development Consulting Agreement, as it may
be amended, supplemented, restated or replaced from time to time.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Gaming Facility; provided, however, unless the parties
otherwise agree, the term "Ancillary Facilities" shall not include any of the
Iowa Tribe's existing enterprises consisting of (1) fuel and retail


                                       -2-

<PAGE>

sales made at the existing "Iowa Mini Mart" located in Carney, OK on Hwy. 177,
(2) "Perkins Smoke Shop" located on West Freeman Ave. in Perkins, OK, or (3)
"Bah-Kho-Je Gallery and RV Park" located on Hwy. 33 in Perkins, OK currently
operated by Iowa Corp.

     "Architect" any architectural or engineering firm duly licensed to provide
architectural services for the Project Facilities.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Capital Expenditures" means any expenditure that is considered a capital
expenditure under GAAP.

     "Claim" means any dispute, claim, question, or disagreement between Iowa
Corp or the Iowa Tribe and Lakes or any Affiliate of Lakes that is directly or
indirectly related to this Agreement, any Iowa Corp Note or the Project
Facilities, whether arising under law or in equity, whether arising as a matter
of contract or a tort, and whether arising during or after the expiration of
this Agreement or the maturity of any Iowa Corp Note.

     "Class II Gaming" means class II gaming as defined in IGRA.

     "Class III Gaming" means class III gaming as defined in IGRA.

     "Collateral" is defined in Section 3.1(a).

     "Compact" means any Tribal-State Compact executed between the Iowa Tribe
and the State of Oklahoma entered into and approved by the United States
Secretary of the Interior either before or after the Effective Date of this
Agreement, and any amendments or modifications thereto.

     "Contractor" means any Person providing materials or services for the
Project pursuant to a contract.

     "Costs of Operations" means, with respect to any period of time occurring
on or after the Opening Date, the total of all costs required under GAAP to be
treated as operating expenses of the Gaming Facility, including but not limited
to the following (so long as they constitute such expenses):

          (a) all fees imposed upon the Gaming Facility by the NIGC;

          (b) all amounts required to be paid to the State pursuant to a Compact
     or all amounts required to be paid to any local governmental entity under
     any agreement to mitigate off-reservation impacts related to the Gaming
     Facility;

          (c) license or other fees for background investigations performed by
     the Gaming Commission of "key employees" and "primary management officials"
     of the Gaming Facility, as defined in 25 C.F.R. Section 502.14 and 25
     C.F.R. Section 502.19, less any amounts collected from employees for those
     fees, provided, however, such amounts


                                       -3-

<PAGE>

     allocable hereunder shall not exceed $25 per employee per any 12 month
     period (although the Gaming Commission may charge employees more for such
     licenses or fees); and reasonable and customary regulatory fees imposed on
     the Gaming Facility by the Gaming Commission (which amounts shall be
     subject to an annually approved budget submitted by the Gaming Commission).

          (d) depreciation and amortization expenses computed over reasonable
     periods permitted under GAAP and as further set forth below; and

          (e) to the extent properly allocable to the operation of the Gaming
     Facility under GAAP, the following:

               (1) costs of administration, recruiting, hiring, firing and
          training employees;

               (2) compensation and benefits of employees;

               (3) interest charges on indebtedness (including the Project
          Permanent Financing) related to the Gaming Facility; and

               (4) all other expenses, including, without limitation, those
          incurred for materials, supplies, inventory, utilities, repairs and
          maintenance (excluding Capital Expenditures), insurance and bonding,
          marketing, advertising, annual audits, accounting, legal or other
          professional and consulting, surveillance/security or guard services;

provided however, that "Costs of Operations" do not include repayment of
principal or Capital Expenditures or capital leases; and notwithstanding the
foregoing, for purposes of this definition of Costs of Operations, depreciation
for personal property shall be determined on a straight-line basis over a period
of seven (7) years from the date such property is placed in service, and
depreciation for real property, including improvements and buildings shall be
determined on a straight-line basis over a period of thirty (30) years.

     "Design Professional" means any Person other than an Architect engaged in
the business of providing engineering, landscape, interior design or other
design services.

     "Development Committee" is defined in Section 2.2.

     "Effective Date" means the date the parties execute this Agreement.

     "Equipment Contract" means any contract to finance or acquire equipment or
property for use in connection with the Project Facilities, exclusive of
property to be provided pursuant to a Project Construction Contract, whether
constituting or characterized as a loan or credit agreement, purchase agreement,
financing lease, capital lease, participating lease, license or otherwise.

     "Equipment Vendor" means any Person that sells, leases or licenses personal
property to Iowa Corp for use in connection with the Project Facilities.


                                       -4-

<PAGE>

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project Facilities, including,
without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project Facilities.

     "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting
profession.

     "Gaming Commission" means any tribal commission or body of the Iowa Tribe
that is lawfully performing the obligations and exercising the rights of the
tribal gaming regulatory agency established pursuant to the Iowa Tribe's Gaming
Ordinance.

     "Gaming Facility" means, in connection with the Project, all buildings,
structures and improvements, together with all furniture, fixtures and equipment
and personal property (whether tangible or intangible) to be used in connection
with the operation of Class II Gaming and/or Class III Gaming.

     "Gaming Facility Site" is defined in Section 2.4.

     "Gaming Operation" means a "gaming operation" as defined in NIGC
regulations, 25 C.F.R. Section 502.10.

     "Gaming Ordinance" means any valid gaming ordinance of the Iowa Tribe that
is in effect for purposes of and to the extent required by IGRA or the Compact.

     "Governmental Authority" means the United States, the BIA, the State, the
Iowa Tribe and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class


                                       -5-

<PAGE>

II Gaming or Class III Gaming at the Gaming Facility, the construction of the
Project Facilities, operation of the Project Facilities, or Iowa Corp's, the
Iowa Tribe's or Lakes' obligations under this Agreement or any Iowa Corp Note.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Lakes" means Lakes Iowa Consulting, LLC, a Minnesota limited liability
company and a wholly-owned subsidiary of Lakes Gaming and Resorts, LLC.

     "Lakes Event of Default" is defined in Section 10.1.

     "Legal Requirements" means the Compact and all present and future federal,
State, Tribe and local laws, ordinances, rules, regulations, permits, licenses
and certificates, and any and all present and future orders of courts and
administrative bodies of competent jurisdiction, applicable to the Project, the
Project Facilities, this Agreement, or any Iowa Corp Note.

     "Management Contact" means a management contract as defined in IGRA.

     "Material Breach" by any party means (a) a material failure of the party to
perform a material obligation under this Agreement for reasons not excused under
Section 13.5 (Force Majeure); or (b) any material representation or warranty
made by a party to this Agreement proves to be knowingly false or erroneous in
any material way when made or at any time shall fail to be true and correct in
all material respects.

     "NIGC" means the National Indian Gaming Commission, established by IGRA.

     "Opening Date" means the first day on which the Gaming Facility is open to
the public for the conduct of Class II Gaming and/or Class III Gaming.

     "Iowa Corp Note or Iowa Corp Notes" are defined in Section 3.1(a).

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the development, construction and equipping and future
expansion of the Gaming Facility at the Gaming Facility Site and, if mutually
agreed by the Parties, the development, construction and equipping of one or
more Ancillary Facilities in connection with the Project, whether such work
shall occur simultaneously or in phases during the term of this Agreement, which
the parties anticipate to be developed under this Agreement.

     "Project Architect" is defined in Section 2.5(a).

     "Project Architectural Agreement" is defined in Section 2.5(b).


                                       -6-

<PAGE>

     "Project Budget" is defined in Section 2.7.

     "Project Construction Contract" is defined in Section 5.1.

     "Project Costs" means (a) all costs of any nature (whether considered an
expense or Capital Expenditure) incurred by or on behalf of Iowa Corp, or by or
on behalf of Lakes or its Affiliates, in connection with the Project in
accordance with this Agreement, including all amounts advanced by Lakes to Iowa
Corp for the Project, including but not limited to all amounts advanced under
the Project Preliminary Development Loan and all amounts evidenced by the Iowa
Corp Notes; and (b) all other amounts mutually agreed upon by Lakes and Iowa
Corp necessary for the development, construction and equipping of the Project.

     "Project Development Fee" means the Project Development Fee for the Project
as calculated pursuant to Section 7.1 herein.

     "Project General Contractor" is defined in Section 5.1.

     "Project Permanent Financing" means one or more debt financings, which may
be in the form of one or more loans, financings, operating leases, issues of
debt securities, or other credit facilities, for which the source of funding is
not Lakes or an Affiliate of Lakes, incurred or issued by or on behalf of Iowa
Corp to finance or refinance all of the Project Preliminary Development Loan and
Project Costs.

     "Project Permanent Financing Date" means the first day on which Project
Permanent Financing is advanced to or made available for the benefit of Iowa
Corp for development of the Project.

     "Project Preliminary Development Budget" is defined in Section 3.1.

     "Project Preliminary Development Loan" is defined in Section 3.1.

     "Project Facilities" means the Gaming Facility and the Ancillary Facilities
in connection with the Project.

     "Proprietary Interest" means proprietary interest in a Gaming Operation
within the meaning of IGRA.

     "Revenues" means, with respect to the Project and any period of time, all
revenues of any nature derived directly or indirectly from the operation of the
Project Facilities and permitted under GAAP to be included in the Project
Facilities' total revenues for that period, less any credits or refunds made to
customers, guests, or patrons of the Project Facilities, not considered a Cost
of Operations and not applied in any prior period to reduce Revenues. "Revenues"
shall not include (i) any gratuities or service charges added to the bill of a
customer, guest or patron of the Project Facilities and payable to employees of
the Project Facilities, (ii) promotional allowances for which there is not a
direct offsetting item treated as a Cost of Operations, (iii) any sales, excise,
gross receipt, admission, entertainment, tourist or other taxes or charges (or
assessments equivalent thereto, or payments made in lieu thereof) that are
received from a customer, guest or patron and passed on to governmental or
quasi-governmental entities unrelated to the Iowa Corp,


                                       -7-

<PAGE>

(iv) any lawful federal, state, or local taxes or impositions (including any
payment or fee in lieu of the foregoing) that are collected from patrons of or
vendors to the Project Facilities, (v) proceeds of indebtedness of the Iowa
Corp, and (vi) proceeds from insurance or condemnation (other than proceeds of
business interruption insurance and other proceeds received to reimburse the
Project Facilities for any item accounted for under GAAP as a Cost of
Operations).

     "State" means the State of Oklahoma.

     "Term" of this Agreement is defined in Section 11.1.

     "Tribal Agreement" shall mean the agreement between the Iowa Tribe and
Lakes or its affiliates described in Section 8.2(n).

     "Tribal Event of Default" is defined in Section 10.3.

                                    ARTICLE 2
                             PRE-CONSTRUCTION PHASE

     Section 2.1 Effective Date. This Agreement shall become effective and
binding upon the date of execution by the parties.

     Section 2.2 Creation of Development Committee. Within 15 days after the
Effective Date of this Agreement, the parties shall establish a Development
Committee that will have the powers, obligations and authorities as provided
herein. The Development Committee shall consist of five (5) persons: three Iowa
Corp representatives and two Lakes representatives. Decisions of the Development
Committee shall be made by majority vote of all members with at least one Iowa
Corp representative and one Lakes representative present and if not present, the
other Iowa Corp representatives and the other Lakes representative,
participating and voting via teleconference.

     Section 2.3 Exclusive Right to Develop. Iowa Corp and the Iowa Tribe hereby
grant to Lakes the exclusive right to assist in the financing, development,
construction, equipping and consulting in connection with pre-opening and
post-opening operations of any Class II Gaming and/or Class III Gaming facility
and any ancillary facilities enhancing such gaming facility operated by Iowa
Corp or the Iowa Tribe in the State of Oklahoma, including a hotel, any
convention center, food and beverage outlets, retail outlets, and any other
enterprise designed to promote, support, or enhance such gaming facility under
the same terms and conditions described herein; provided, however, that Lakes'
right to participate in the expansion and/or development of the gaming facility
currently operated by Iowa Corp in Perkins, Oklahoma (the "Cimarron Casino")
shall be determined and controlled by the terms of a separate written agreement
between the parties.


                                       -8-

<PAGE>

     Section 2.4 Gaming Facility Site Selection. The Development Committee shall
designate the location of the proposed site on which the Gaming Facility shall
be constructed (the "Gaming Facility Site"), provided, the site upon which the
facility housing Class II and/or Class III Gaming shall be located on and must
constitute "Indian lands" upon which the Iowa Tribe may legally conduct gaming
under IGRA.

     Section 2.5 Project Architect; Plans and Specifications; Design
Professionals. With respect to the pre-construction development of the Project,
the parties agree to the following provisions.

     (a)  Selection of Project Architect. As soon as reasonably practical after
          the Effective Date of this Agreement, Lakes shall propose to the
          Development Committee one or more Architects to provide customary
          architectural services with respect to the Project Facilities,
          although Iowa Corp also shall have the right to propose to the
          Development Committee additional architects for consideration.. As
          soon as reasonably practical, the Development Committee shall either
          approve or reject each proposed Architect. In the case of a rejection,
          the process described in this Section 2.5(a) shall be repeated until
          the Development Committee has approved one or more Architects proposed
          for the Project ("Project Architect").

     (b)  Project Architectural Agreement; Plans and Specifications. Once an
          Architect has been approved under Section 2.5(a), Lakes shall
          negotiate proposed agreements with each Architect approved, and shall
          propose the same to the Development Committee (each, a "Project
          Architectural Agreement"). As soon as reasonably practical, the
          Development Committee shall either approve or reject each proposed
          Project Architectural Agreement. In the case of a rejection, the
          process described in this Section 2.5(b) shall be repeated until the
          Development Committee has approved the Project Architectural
          Agreements proposed by Lakes. Upon approval, Iowa Corp shall take
          necessary action to authorize and execute the applicable Project
          Architectural Agreements. After execution of each Project
          Architectural Agreement, Lakes shall coordinate the Architect's
          preparation of mutually agreeable preliminary basic plans, drawings
          and specifications for the Project Facilities. Lakes shall also
          coordinate the Architect's preparation of mutually agreeable
          construction drawings and final design, plans and specifications for
          the Project Facilities, and propose the same for approval by the
          Development Committee. The completed and approved final plans,
          together with any modifications thereof proposed by Lakes and approved
          by the Development Committee, shall constitute the "Project Plans and
          Specifications."

     (c)  Selection of Additional Design Professionals for Project. If the
          Development Committee determines that design services for the Project
          Facilities from Design Professionals are desirable, Lakes and Iowa
          Corp may propose to the Development Committee one or more Design
          Professionals and the proposed services of each. As soon as reasonably
          practical, the Development Committee shall either approve or reject
          the proposed Design Professionals. In the case of a


                                       -9-

<PAGE>

          rejection, the process described in this Section 2.5(c) shall be
          repeated until the Development Committee has approved all Design
          Professionals proposed by Lakes. After approval of each Design
          Professional by the Development Committee, Lakes shall coordinate the
          services of each Design Professional.

     Section 2.6 Other Project Contractors. Lakes shall propose to the
Development Committee for its approval all third-party professionals, such as
environmental specialists, feasibility analysts, and others providing services
or materials to the Project Facilities as are customary for undertakings such as
the Project ("Project Contractors"). Iowa Corp shall also have the right to
propose Project Contractors to the Development Committee. Lakes, in consultation
with the Development Committee, and subject to the final approval by the
Development Committee, shall negotiate all Project Contractor contracts. All
contracts shall require the Project Contractor to adhere in regard to
recruitment, employment, reduction in force, promotion, training and related
employment actions to a publicly announced policy and practice of Iowa Tribe
preference and/or any publicly announced policy of Indian preference, both of
which must be reasonably promulgated by the Iowa Tribe. Except as provided in
this Agreement, each Project Contractor contract shall be between the Project
Contractor and Iowa Corp as determined by the Development Committee.
Notwithstanding the foregoing, all legal representation of Iowa Corp shall be
determined solely by Iowa Corp.

     Section 2.7 Project Budget. Lakes shall consult with the Architect to
develop and propose to the Development Committee a budget for all Project Costs
relating to the Project, along with a scheduled timeframe(s) for development of
the Project. Revisions to the Project budget may be proposed to the Development
Committee from time to time by Lakes until a final budget is approved by the
Development Committee. The Project budget approved by the Development Committee,
together with any modification thereafter proposed by Lakes and approved by the
Development Committee, shall include all Project Costs and shall be the "Project
Budget."

     Section 2.8 Contracts with Project Professionals. All professionals
providing services to the Project shall be independent of Lakes and its
Affiliates, unless otherwise agreed to by the parties in writing, and all
contracts with such professionals will be negotiated by Lakes and Iowa Corp on
an arms-length basis and in the best interests of Iowa Corp.

                                    ARTICLE 3
                      PROJECT PRELIMINARY DEVELOPMENT LOANS

     Section 3.1 Project Preliminary Development Loan. Subject to the terms and
conditions in this Article 3, Lakes shall make loans if needed from time to time
to Iowa Corp with respect to the Project for payment of Project preliminary
development costs (collectively the "Project Preliminary Development Loan") set
forth in a Project preliminary development budget proposed by Lakes and approved
by the Development Committee ("Project Preliminary Development Budget"). Lakes
shall have no obligation to advance any funds under the Project Preliminary
Development Loan in excess of the approved Project Preliminary Development
Budget. The Project Preliminary Development Loan for the Project shall become
part of its Project Costs and shall include all advances made by Lakes to Iowa
Corp for the Project,


                                      -10-

<PAGE>

including but not limited to those evidenced by the initial Iowa Corp Note. Any
Project Preliminary Development Loan and Lakes' obligation to advance funds to
Iowa Corp for the Project, shall be subject to each of the following
requirements:

     (a)  All advances made pursuant to the Project Preliminary Development Loan
          shall be evidenced by one or more promissory notes prepared by Lakes,
          substantially in the form attached as EXHIBIT A to this Agreement
          ("Iowa Corp Note"), in each case executed on behalf of Iowa Corp, and
          dated the date of the applicable loan (collectively with any note
          executed by Iowa Corp in favor of Lakes in connection with the
          development of the Project, the "Iowa Corp Notes"), to be payable from
          and secured by a pledge in (i) the proceeds of any Project Permanent
          Financing; (ii) all Revenues from the Project or any other gaming
          project and any ancillary facilities related thereto owned directly or
          indirectly by Iowa Corp or the Iowa Tribe; (iii) the Project's
          Furnishing and Equipment or of any other gaming project and any
          ancillary facilities related thereto owned directly or indirectly by
          Iowa Corp or the Iowa Tribe; (iv) any fee lands upon which the Project
          is located (collectively, the "Collateral"). In no event shall Lakes
          have recourse to Revenue distributions already received by Iowa Corp
          from the Project and made to the Iowa Tribe in accordance with this
          Agreement and/or any applicable dominion account agreement.

     (b)  If the principal amount of the Iowa Corp Note is exceeded by any
          pending advance on the Project Preliminary Development Loan, prior to
          such advance being made and prior to Lakes having any obligation to
          fund such advance, Iowa Corp shall execute and deliver to Lakes either
          (i) an amendment to such Iowa Corp Note, increasing the principal
          amount of the note by an amount at least equal to the pending advance,
          or (ii) an additional Iowa Corp Note with a principal amount at least
          equal to the principal amount of the pending advance, as determined by
          Lakes.

     (c)  Amounts advanced from time to time as part of the Project Preliminary
          Development Loan shall bear interest, from the date of advance, at the
          greater of either the prime interest rate of Chase Manhattan Bank
          U.S.A., N.A. (or any successor bank) plus two percent (2%) or the same
          rate as the Project Permanent Financing for the Project in place at
          the time of the advance.

     (d)  Unless otherwise agreed by the parties in writing, all principal and
          interest accrued on each Project Preliminary Development Loan shall
          become due and payable in twenty-four (24) equal monthly installments
          beginning on the 25th day following the Opening Date for the Project
          if the loan has not previously been repaid through the Project
          Permanent Financing. Iowa Corp shall use its best efforts to cause the
          Project Preliminary Development Loan to be paid out of the proceeds of
          the Project Permanent Financing. Notwithstanding the foregoing, the
          Project Preliminary Development Loan shall become due and owing in its
          entirety upon (i) the occurrence of a Tribal Event of Default under
          Section 10.3, which default is either incapable of cure or has not
          been cured within the time period set forth in Section 10.4, or (ii)
          termination of this Agreement under Section 11.3.


                                      -11-

<PAGE>

     (e)  The Project Preliminary Development Loan may be prepaid without
          penalty by Iowa Corp at any time, in whole or in part, together with
          accrued and unpaid interest thereon.

     (f)  No amounts shall be loaned under the Project Preliminary Development
          Loan except for costs set forth in the Project Preliminary Development
          Budget, unless Lakes in its sole discretion agrees to advance such
          funds, in which case, such advances shall be Project Costs. Lakes
          shall have no obligation to advance funds for costs unless such costs
          are set forth in the Project Preliminary Development Budget and such
          costs:

          (i)  have been approved in advance by the Development Committee, or

          (ii) constitute payments properly due within the terms and scope of
               Project Contractors contracts.

          Upon any such payment by Lakes, an advance on the Project Preliminary
          Development Loan shall automatically occur.

     (g)  The Project Preliminary Development Loan, together with interest
          thereon, shall be payable from and secured by a pledge of the
          Collateral.

          To that end, Iowa Corp and the Iowa Tribe hereby pledge and grant a
          security interest in all the Collateral to Lakes to secure Iowa Corp's
          and the Iowa Tribe's obligations under this Agreement and under the
          Iowa Corp Notes, further agree to enter into standard and customary
          dominion account agreements/security agreements/mortgages or deeds of
          trust necessary to evidence and effectuate such liens, and authorize
          Lakes to file those financing statements and similar documents and
          agreements as Lakes may believe appropriate to perfect such liens.

     (i)  Notwithstanding anything to the contrary in this Article 3, Lakes
          shall not be obligated to fund any advances on the Project Preliminary
          Development Loan after the earliest of:

          (i)  the Project Permanent Financing Date for the Project;

          (ii) the second anniversary of the first advance under the Project
               Preliminary Development Loan;

          (iii) the failure of Iowa Corp or the Iowa Tribe to cure, within the
               time prescribed in this Agreement, any default under this
               Agreement, any Iowa Corp Note, or any related documents or
               agreements for which Iowa Corp or the Iowa Tribe receives written
               notice;

          (iv) sixty (60) days after written notice by Lakes that a reasonable
               basis exists for concluding that this Agreement, the development
               of the Project, or the operation of the Project's Gaming Facility
               is not lawful;


                                      -12-

<PAGE>

          (v)  any determination by Lakes that a reasonable basis exists for
               concluding that any material terms of this Agreement or the Iowa
               Corp Notes are not valid or binding obligations of Iowa Corp or
               the Iowa Tribe ;

          (vi) any reasonable determination by Lakes (which may be based on the
               advice of legal counsel) that any representations contained in
               Section 8.2 are not true and correct; and

          (vii) the commencement of any litigation which, in the reasonable
               determination of Lakes, has a reasonable likelihood of delaying
               the completion of the Project Facilities for more than 24 months
               after the Effective Date of this Agreement.

     Section 3.2 Conditions Precedent to First Advance of Project Preliminary
Development Loan or to Perform any Obligations. Notwithstanding Section 3.1,
Lakes is not required to make any advance under the Project Preliminary
Development Loan or perform any obligations under this Agreement until Lakes
receives each of the following in form and substance reasonably satisfactory to
Lakes:

     (a)  copy of tribal laws in a form sufficient as determined by Lakes to
          perfect the security interests and liens granted to it under Section
          3.1;

     (b)  copy of one or more resolutions of the governing bodies of Iowa Corp
          and the Iowa Tribe authorizing and ratifying the adoption, or the
          execution, delivery and performance by the Iowa Tribe, or Iowa Corp,
          as applicable, of (i) the Compact (if in effect), (ii) the Gaming
          Ordinance, (iii) this Agreement, and (iv) the Iowa Corp Notes and
          related documents and security instruments;

     (c)  original of any license(s) required by any Government Authority for
          the Lakes services (as described in this Agreement) in connection with
          the development, construction and operation of the Project;

     (d)  an opinion of an attorney for Iowa Corp in form reasonably
          satisfactory to Lakes to the effect that (i) this Agreement, the Iowa
          Corp Notes, and any security instruments to be executed by Iowa Corp
          or the Iowa Tribe in connection with this Agreement will be valid,
          binding and perfected obligations of Iowa Corp and the Iowa Tribe,
          enforceable in accordance with their terms, (ii) the Iowa Tribe is an
          Indian tribe within the meaning of IGRA, (iii) each of the actions of
          Iowa Tribe, or Iowa Corp, as applicable, referred to above in this
          Section have been validly taken by that entity and is in full force
          and effect, (iv) the Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements, (v) the Gaming Facility
          Site for the Project constitutes "Indian lands" upon which the Iowa
          Tribe may legally conduct gaming under IGRA, and (vi) the Iowa Tribe
          has entered into an agreement with Lakes or its Affiliate that
          confirms all gaming and related project facilities of the Iowa Tribe
          will be owned and operated by Iowa


                                      -13-

<PAGE>

          Corp or another subsidiary of the Iowa Tribe, grants Lakes or its
          Affiliate the right to participate in any gaming projects owned and
          operated by Iowa Corp or another subsidiary of the Iowa Tribe under
          the same terms and conditions described in this Agreement unless
          otherwise agreed to in writing by the parties, and contains
          representations, warranties and covenants substantially similar to
          those contained in Articles 8 and 9 hereof insofar as applicable, and
          with respect to such agreement, the same constitutes the valid,
          binding and enforceable obligations of the Iowa Tribe, enforceable in
          accordance with their terms.

     (e)  designation by Iowa Corp of its members to the Development Committee
          and the formation of the Development Committee;

     (f)  a feasibility study has been conducted demonstrating to Lakes'
          satisfaction the economic viability of the Project, and Iowa Corp and
          Lakes have mutually agreed to the scope of the contemplated Project
          and entered into an addendum to this Agreement describing the
          contemplated scope of the Project; and

     (g)  a letter from the NIGC determining that the Gaming Facility Site for
          the Project constitutes "Indian lands" upon which the Iowa Tribe may
          legally conduct gaming under IGRA.

                                    ARTICLE 4
                          PROJECT PERMANENT FINANCINGS

     Section 4.1 Project Permanent Financing. Lakes shall use commercially
reasonable efforts to assist Iowa Corp in obtaining one or more sources of
Project Permanent Financing for the Project in amounts and at times as are
required for payment of expected Project Costs (other than those expected to be
funded by an Equipment Contract) as set forth in the Project Budget. The terms
of the Project Permanent Financing shall be subject to the approval of the
Development Committee, which approval shall not be unreasonably withheld.

     Section 4.2 Approval of Disbursements. Unless otherwise agreed to by the
Development Committee, no disbursement of proceeds from any Project Permanent
Financing shall be made without the approval of the Development Committee and,
with respect to costs payable pursuant to the Project Construction Contract,
without customary approvals or certifications by the Project Architect and
Project General Contractor.

                                    ARTICLE 5
                    PROJECT CONSTRUCTION AND EQUIPPING PHASES

     Section 5.1 Project General Contractor and Construction Contracts. Lakes
shall propose to the Development Committee for its approval one or more general
or prime contractors


                                      -14-

<PAGE>

to provide customary construction contracting services with respect to the
Project Facilities (the "Project General Contractor"). As soon as reasonably
practical, the Development Committee shall either approve or reject each
proposed Project General Contractor. In the case of a rejection, the process
described in this Section 5.1 shall be repeated until the Development Committee
has approved a Project General Contractor proposed by Lakes. Once the Project
General Contractor has been approved by the Development Committee, Lakes shall
negotiate and propose to the Development Committee for its approval one or more
forms of agreements for execution by Iowa Corp to engage the Project General
Contractor (the "Project Construction Contract"). After the Development
Committee has approved and Iowa Corp has entered into the Project Construction
Contract(s), no change orders shall be made without the written recommendation
of Lakes and written approval by the Development Committee.

     Section 5.2 Project Contractor Costs. All costs incurred by or paid
pursuant to the Project Construction Contract(s) in accordance with Project
Budget shall be Project Costs.

     Section 5.3 Project Equipment Contracts. Lakes shall propose to the
Development Committee for its approval one or more contractors to provide
equipment or personal property for use in connection with operations of the
Project Facilities, exclusive of property to be provided pursuant to a Project
Construction Contract (the "Project Equipment Contractor"). Iowa Corp shall also
have the right to propose Project Equipment Contractors to the Development
Committee. As soon as reasonably practical, the Development Committee shall
either approve or reject each proposed Project Equipment Contractor. In the case
of a rejection, the process described in this Section 5.3 shall be repeated
until the Development Committee has approved a Project Equipment Contractor
proposed. Once the Project Equipment Contractor has been approved by the
Development Committee, Lakes shall negotiate and propose to the Development
Committee for its approval one or more forms of agreements for execution by Iowa
Corp to engage the Project Equipment Contractor (the "Project Equipment
Contract"). After the Development Committee has approved and Iowa Corp has
entered into the Project Equipment Contract(s), no change orders shall be made
without the written recommendation of Lakes and written approval by the
Development Committee. Lakes will assist in the selection, ordering, expediting,
and installation of furniture, fixtures and equipment required for the Project
Facilities.

                                    ARTICLE 6
                   PRE AND POST-OPENING OPERATIONS CONSULTING

     Section 6.1 Project Operations Consulting. In connection with pre-opening
operations of the Project, Lakes shall assist Iowa Corp by providing consulting
services to Iowa Corp related to establishing and implementing initial gaming
and ancillary systems in the following areas: making recommendations to Iowa
Corp as to: (a) general Gaming Operations, (b) electronic gaming devices
operations, (c) table game operations if permitted, (d) cage, vault and count
room operations, (e) surveillance department operations, (f) security department
operations, (g) marketing and advertising, (h) food and beverage operations, (i)
human resources, (j) facilities and maintenance, (k) finance and (l) information
systems. At all times, Iowa Corp


                                      -15-

<PAGE>

shall have the sole proprietary interest in and management responsibility for
the conduct of all Gaming Operations conducted at the Project during the period
Lakes is providing operations consulting services under this Agreement.

     Section 6.2 Cooperative Efforts. Both parties to this Agreement shall
exercise their best efforts to fully cooperate with each other in the
performance of the operations consulting services to be rendered hereunder;
provided, however, that it shall be within the sole discretion of Iowa Corp to
determine whether or not to act upon or implement the technical assistance,
consultation or advice provided by Lakes.

     Section 6.3 No Management Services Provided. The parties expressly
acknowledge that this Agreement is for consulting services only and that Lakes
shall not engage in any management activities or perform any management services
hereunder with respect to the Project. The parties expressly acknowledge that
the decision to adopt, approve or implement any proposal, suggestion or
recommendation made by Lakes in connection with its operations consulting
services shall rest exclusively with Iowa Corp.

                                    ARTICLE 7
                                 DEVELOPMENT FEE

     Section 7.1 Project Development Fee. For its services under this Agreement
related to the Project, in addition to interest earned on the Project
Preliminary Development Loan, Lakes shall receive a fee equal to (a) two (2%)
percent of Project Costs ("Development Fixed Fee") and (b) a flat fee of
$500,000 per month for one hundred twenty (120) months in accordance with the
payment terms described in Section 7.2 ("Monthly Consulting Fixed Fee")
(collectively the "Project Development Fee").

     Section 7.2 Terms of Payment. The Development Fixed Fee shall be paid on
the Opening Date for the Project. No Monthly Consulting Fixed Fee shall be paid
prior to the Opening Date of the Project. After the Opening Date of the Project,
the Monthly Consulting Fixed Fee shall be due and paid commencing on the 25th
day of the following calendar month, and become due and payable on the 25th day
of each successive month.

     Section 7.3 Project Development Fee Security. To secure payment of the
Project Development Fee, Iowa Corp and the Iowa Tribe hereby pledge and grant a
security interest in all Collateral to Lakes to secure Iowa Corp's and the Iowa
Tribe's obligations under this Agreement in connection with payment of the
Project Development Fee, further agree to enter into standard and customary
dominion account agreements/security agreements/mortgages or deeds of trust
necessary to evidence and effectuate such liens, and authorize Lakes to file
those financing statements and similar documents and agreements as Lakes may
believes appropriate to perfect such liens.


                                      -16-

<PAGE>

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

     Section 8.1 Representations and Warranties of Lakes. Lakes represents and
warrants to Iowa Corp that:

     (a)  Organization. Lakes is a limited liability company duly formed and
          validly existing under the laws of the State of Minnesota.

     (b)  Authority. Lakes has the full legal right and authority to enter into
          this Agreement, to perform its obligations under this Agreement, and
          to consummate all other transactions contemplated by this Agreement.

     (c)  Binding Obligation. This Agreement has been duly executed and
          delivered by Lakes and constitutes a legal, valid and binding
          obligation of Lakes, enforceable against Lakes in accordance with its
          terms, except as enforceability may be limited by future bankruptcy,
          insolvency or similar proceedings, limitations on rights of creditors
          generally and principles of equity, and assuming such agreements are
          binding against the other parties thereto.

     (d)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Lakes,
          threatened against Lakes, its Affiliates, or any of its assets or
          properties that could have a material adverse effect on its ability to
          enter into or perform this Agreement.

     (e)  No Violation or Conflict. The execution, delivery and performance by
          Lakes of this Agreement does not violate any Legal Requirement
          applicable to Lakes, other than a violation that shall not materially
          adversely affect the Project or Iowa Corps obligations or rights under
          this Agreement. The execution, delivery and performance of this
          Agreement does not conflict with or result in any breach of any
          provision of, or constitute a default under, or result in the
          imposition of any lien or charge upon any asset of Lakes under, or
          result in the acceleration of any obligation under the terms of any
          agreement or document binding upon Lakes, other than a conflict,
          breach, default or imposition that shall not materially adversely
          affect the Project or Iowa Corp's obligations or rights under this
          Agreement.

     (f)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Lakes is required
          for Lakes to execute, deliver and perform its obligations hereunder;
          provided that Lakes makes no representation or warranty with respect
          to any consent that may be required by the Gaming Commission, the Iowa
          Tribe, Iowa Corp, the NIGC or the BIA.


                                      -17-

<PAGE>

     (g)  Full Disclosure. No representation or warranty of Lakes in this
          Agreement and no report or statement delivered to Iowa Corp by or on
          behalf of Lakes, contains any untrue statement or omits to state a
          material fact necessary to make any such representation, warranty,
          report or statement, in light of the circumstances in which they were
          made, not misleading.

     (h)  Financial Capacity. Lakes has the financial capacity to finance any
          and all amounts necessary in order to comply with Lakes' commitment to
          provide the Project Preliminary Development Loan under Article 3
          hereof, and the provision of such financing will not result in Lakes
          becoming insolvent or otherwise being unable to pay its debts as they
          become due.

     (i)  Brokers' Fees and Other Fees and Expenses. Except for the letter
          agreement dated August 20, 2004 with Kevin Kean and the definitive
          consulting agreement to be negotiated and executed as contemplated
          thereunder, neither Lakes nor any of its Affiliates has as of the
          Effective Date of this Agreement engaged, nor has any liability or
          obligation to pay any fees, commissions or expenses with respect to,
          any broker, finder or agent, investment banker, or any similar advisor
          or services provider, with respect to or in connection with the
          transactions contemplated by this Agreement for which Lakes or its
          Affiliates could become liable or obligated, and neither Iowa Corp nor
          any of its Affiliates has any liability or obligation to pay any of
          such amounts.

     Section 8.2 Representations and Warranties by Iowa Corp and the Iowa Tribe.
Iowa Corp and the Iowa Tribe represent and warrant to Lakes that:

     (a)  Organization. Iowa Corp is a federally-chartered corporation, created
          pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
          1936 (49 Stat. 1967), whose federal charter was issued on January 4,
          1938 by the Secretary of the Interior and ratified by the Iowa Tribe
          on February 5, 1938; and the Iowa Tribe is a federally recognized
          Indian Tribe duly organized under the Constitution and laws of the
          Iowa Tribe and the United States, and is eligible to conduct gaming
          within the meaning of IGRA.

     (b)  Authority and Power. Iowa Corp and the Iowa Tribe have taken all
          action required by tribal law without the necessity of further action
          to authorize the execution, delivery and performance of this
          Agreement, all Iowa Corp Notes and related security documents and
          instruments described herein (to the extent a party thereto). Iowa
          Corp and the Iowa Tribe, to the extent a party thereto, have all
          requisite power and authority to enter into this Agreement, all Iowa
          Corp Notes, and related security documents and instruments described
          herein and to perform their obligations under this Agreement, all Iowa
          Corp Notes, and related security documents and instruments described
          herein, and to consummate all other transactions contemplated by this
          Agreement, the Iowa Corp Notes and related security documents and
          instruments described herein.


                                      -18-

<PAGE>

     (c)  Binding Obligations. Each of this Agreement (including but not limited
          to, the waiver of sovereign immunity in Article 12), the Iowa Corp
          Notes and related security documents and instruments described herein
          has been duly executed and delivered by Iowa Corp and the Iowa tribe
          and is a legal, valid, binding and perfected obligation of Iowa Corp
          and the Iowa Tribe, to the extent a party thereto, enforceable against
          Iowa Corp and the Iowa Tribe in accordance with its terms, except as
          enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for the Project
          constitutes "Indian lands" upon which the Iowa Tribe may legally
          conduct gaming under IGRA.

     (e)  Gaming Permitted. The Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Iowa Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Iowa Tribe. Iowa Corp will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          the Iowa Corp in connection with this Agreement to the extent set
          forth in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes to enter into this
          Agreement and perform its obligations under this Agreement have been
          granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by Iowa Corp or the Iowa Tribe or affecting either the Gaming
          Facility Site or the Project Facilities, whether arising from
          contracts, instruments, orders, judgments, decrees or otherwise, that
          are likely to materially and adversely affect the Project or Lake's
          obligations or rights under this Agreement, any Iowa Corp Note and
          related security documents and instruments described herein.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          Iowa Corp and the Iowa Tribe of this Agreement, any Iowa Corp Note and
          related security documents and instruments described herein does not
          violate any Legal Requirements. The execution, delivery and
          performance of this Agreement, any Iowa Corp Note and related security
          documents and instruments described herein by Iowa Corp or the Iowa
          Tribe does not conflict with or result in any breach of any provision
          of, or constitute a default under, or result in the imposition of any
          lien or charge upon any asset of Iowa Corp under, or result in the
          acceleration of any obligation under the terms of any agreement or
          document binding upon Iowa Corp, other than a conflict, breach,
          default or imposition as shall not materially


                                      -19-

<PAGE>

          adversely affect the Project or Lake's obligations or rights under
          this Agreement, any Iowa Corp Note and related security documents and
          instruments described herein.

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of Iowa
          Corp or the Iowa Tribe, threatened, against Iowa Corp or the Iowa
          Tribe, or any of the assets or properties of Iowa Corp, that could
          have a material adverse effect on the Project, its Project Facilities,
          Iowa Corp's ability to enter into or perform this Agreement or Lakes'
          obligations or rights under this Agreement, any Iowa Corp Note and
          related security documents and instruments described herein.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by Iowa Corp or the
          Iowa Tribe is required to execute, deliver and perform its obligations
          hereunder.

     (l)  Full Disclosure. No representation or warranty of Iowa Corp or the
          Iowa Tribe in this Agreement and no report or statement delivered to
          Lakes by or on behalf of Iowa Corp or the Iowa Tribe, contains any
          untrue statement or omits to state a material fact necessary to make
          any such representation, warranty, report or statement, in light of
          the circumstances in which they were made, not misleading. Iowa Corp
          and the Iowa Tribe have fully disclosed the existence and terms of all
          material agreements and Legal Requirements, written or oral, relating
          to the Project.

     (m)  No Tribal Tax. Neither the Project, the Project Facilities nor the
          transaction(s) between the parties contemplated by this Agreement, the
          Iowa Corp Notes, and any related security documents and instruments
          described herein are now, or at any time during the term of this
          Agreement will be, subject to any tribal tax of any sort other than
          (i) reasonable pass-through taxes on Project patrons which are
          consistent with gaming resort industry practices, and (ii) the fees
          and assessments described in clause (c) of the definition of "Costs of
          Operations."

     (n)  Tribal Agreement. The Iowa Tribe has entered into an agreement with
          Lakes or its Affiliate which (i) confirms that all gaming and related
          project facilities of the Iowa Tribe will be owned and operated by
          Iowa Corp or another subsidiary of the Iowa Tribe, (ii) grants Lakes
          or its Affiliate the right to participate in any gaming projects owned
          and operated by Iowa Corp or another subsidiary of the Iowa Tribe
          under the same terms and conditions described in this Agreement, and
          (iii) contains representations, warranties and covenants substantially
          similar to those contained in Articles 8 and 9 hereof, insofar as
          applicable, and with respect to such agreement, the same constitutes
          valid, binding and enforceable obligations of Iowa Tribe, enforceable
          in accordance with their terms.


                                      -20-

<PAGE>

                                    ARTICLE 9
                                    COVENANTS

     Section 9.1 Covenants of Lakes. Lakes covenants and agrees as follows:

          (a)  Additional Documents. Lakes shall execute any additional
               instruments as may be reasonably required by Iowa Corp to carry
               out the intent of this Agreement or to perfect or give further
               assurances of any of the rights granted or provided for under
               this Agreement.

     Section 9.2 Covenants of Iowa Corp and the Iowa Tribe. Iowa Corp and the
Iowa Tribe covenant and agree as follows:

          (a)  Additional Documents. Iowa Corp and the Iowa Tribe shall execute
               any additional instruments as may be reasonably required by Lakes
               to carry out the intent of this Agreement or to perfect or give
               further assurance of any of the rights granted or provided for
               under this Agreement or any Iowa Corp Note, including execution
               of the related security documents and instruments described
               herein.

          (b)  Non-Impairment. Neither Iowa Corp nor the Iowa Tribe shall enact
               any law, ordinance, rule or regulation impairing the rights or
               obligations of the parties under this Agreement or under any
               related contracts entered into by Iowa Corp or impairing the
               rights and obligations of Lakes in furtherance of the design,
               development, construction, equipping or financing of the Project
               Facilities, including but not limited to this Agreement and any
               contract or agreement entered into or contemplated by this
               Agreement.

          (c)  Records. Iowa Corp shall maintain or cause to be maintained full
               and accurate accounts and records for the Project and its Project
               Facilities according to GAAP.

          (d)  No Liens. Prior to the Opening Date, unless Lakes otherwise
               consents, neither Iowa Corp nor the Iowa Tribe shall cause or
               voluntarily permit any lien or encumbrance to be created on the
               Project Facilities, the Gaming Facility Site or any proceeds of
               the Project Preliminary Development Loan or the Project Permanent
               Financing.

          (e)  No Tax. Neither Iowa Corp nor the Iowa Tribe shall impose any
               tax, fee or assessment on Lakes, any Contractor, the Project
               Facilities, this Agreement, the Iowa Corp Notes, and any related
               security documents and instruments described herein other than
               (i) reasonable pass-through taxes on Project patrons which are
               consistent with gaming resort industry


                                      -21-

<PAGE>

               practices, and (ii) the fees and assessments described in clause
               (c) of the definition of "Costs of Operations."

                                   ARTICLE 10
                                EVENTS OF DEFAULT

     Section 10.1 Events of Default by Lakes. Each of the following occurring
prior the date on which the Project has been substantially completed shall
constitute a "Lakes Event of Default":

     (a)  A Material Breach by Lakes.

     (b)  Lakes violates any of the covenants in Section 9.1 of this Agreement,
          and sixty (60) days have passed following a request by Iowa Corp to
          Lakes to cure the violation, during which the violation has not been
          cured.

     (c)  Subject to Section 10.3, any license, permit or approval required to
          be received or maintained by Lakes to perform its obligations under
          this Agreement is denied, suspended, or revoked by proper and
          reasonable action of any state or federal Governmental Authority, and
          all rights to appeal or review the action have been exhausted.

     (d)  Lakes or any Affiliate of Lakes material to the uncompleted portion of
          the particular Project has: (i) filed for relief under the United
          States Bankruptcy Code or has suffered the filing of an involuntary
          petition under the Bankruptcy Code that is not dismissed within sixty
          (60) days after filing; (ii) a receiver appointed to take possession
          of all or substantially all of the property of Lakes or any Affiliate
          of Lakes material to the Project; or (iii) suffered an assignment for
          the benefit of creditors.

     Section 10.2 Cure of Lakes Default. Upon the occurrence of a Lakes Event of
Default, Iowa Corp may provide written notice to Lakes of Iowa Corp's intention
to terminate this Agreement and, if it is possible for Lakes to cure the Lakes
Event of Default, Lakes shall have thirty (30) days following receipt of the
notice to effect a cure; provided, however, that if the nature of such breach
(but specifically excluding breaches curable by the payment of money) is such
that it is not possible to cure such breach within thirty (30) days, such
thirty-day period shall be extended for so long as Lakes shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
The discontinuance or correction of a Lakes Event of Default shall constitute a
cure thereof. If Lakes fails to cure the Lakes Event of Default within the
30-day period, Iowa Corp may: (a) suspend all performance of Iowa Corp under
this Agreement; (b) terminate this Agreement under Section 11.4; or (c) pursue
any other remedy available at law or in equity, subject to the provisions of
Section 12.1.


                                      -22-

<PAGE>

     Section 10.3 Events of Default by Iowa Corp or the Iowa Tribe. Each of the
following shall constitute a "Tribal Event of Default":

     (a)  (i) a Material Breach by Iowa Corp or the Iowa Tribe exists; or (ii)
          an "Event of Default" by Iowa Corp or the Iowa Tribe exists under the
          Iowa Corp Note, security agreement, dominion account agreement,
          mortgage or other document or instrument in favor of Lakes or its
          Affiliates and related thereto or this Agreement; or (iii) the Iowa
          Tribe shall be in default of any agreement now or hereafter executed
          by it in favor of Lakes or its Affiliates.

     (b)  The Gaming Commission or any other applicable governmental authority
          of the Iowa Tribe, in bad faith, without due process or unreasonably,
          denies, revokes, fails to renew or otherwise impairs any license,
          permit or approval required for Lakes or any Affiliate of Lakes to
          perform its obligations or enjoy its rights under this Agreement.

     (c)  Iowa Corp or the Iowa Tribe violate any of the covenants in Section
          9.2 of this Agreement, and after sixty (60) days have passed following
          a request by Lakes to Iowa Corp or the Iowa Tribe to cure the
          violation, during which the violation has not been cured.

     (d)  Iowa Corp or any Affiliate of Iowa Corp material to the Project has:
          (i) filed for relief under the United States Bankruptcy Code or has
          suffered the filing of an involuntary petition under the Bankruptcy
          Code that is not dismissed within sixty (60) days after filing; (ii) a
          receiver appointed to take possession of all or substantially all of
          Iowa Corp's property; or (iii) suffered an assignment for the benefit
          of creditors.

     (e)  The Compact (if in effect) is determined by any court of competent
          jurisdiction to be invalid and such determination becomes final and
          non-appealable.

     (f)  The Iowa Tribe is no longer an Indian tribe eligible to conduct gaming
          within the meaning of IGRA.

     (g)  Any order or judgment of any court of competent jurisdiction enjoins
          the development of the Project in any material manner, and the
          injunction continues for thirty (30) days.

     Section 10.4 Cure of Tribal Event Default. Upon the occurrence of a Tribal
Event of Default, Lakes may provide written notice to Iowa Corp or the Iowa
Tribe of such default and, if it is possible for Iowa Corp or Iowa Tribe to cure
the Tribal Event of Default, Iowa Corp or the Iowa Tribe shall have thirty (30)
days following receipt of notice to effect a cure; provided, however, that if
the nature of such breach (but specifically excluding breaches curable by the


                                      -23-

<PAGE>

payment of money) is such that it is not possible to cure such breach within
thirty (30) days, such thirty-day period shall be extended for so long as Iowa
Corp or the Iowa Tribe shall be using diligent efforts to effect a cure thereof
but no more than an additional sixty (60) days. Upon the occurrence of any of
the events described in Section 10.3 and during any applicable cure period,
Lakes may suspend its performance under this Agreement. The discontinuance or
correction of a Tribal Event of Default shall constitute a cure thereof. If Iowa
Corp or the Iowa Tribe fails to cure the Tribal Event of Default within the
30-day period, Lakes may take any one or more of the following actions: (a)
suspend all performance of Lakes under this Agreement; (b) declare all principal
and interest accrued on all Iowa Corp Notes and any Project Development Fees to
be immediately due and owing, (c) terminate this Agreement under Section 11.4;
or (d) pursue any other remedy available by agreement, at law or in equity,
subject to the provisions of Section 12.1.

                                   ARTICLE 11
                                TERM OF AGREEMENT

     Section 11.1 Term. This Agreement shall become effective and binding upon
the parties on the Effective Date, and shall continue in effect for twelve (12)
years from the Effective Date or until the Project Development Fee(s) and the
Project Preliminary Development Loan(s) applicable hereunder have been fully
paid, whichever date is later, subject to earlier termination as provided in
Article 10 or this Article; provided that (a) all rights of any party to assert
a Claim against the other shall survive the termination of this Agreement, and
(b) all provisions of Article 12 and Article 13 shall survive a termination.

     Section 11.2 Mutual Termination. This Agreement may be terminated at any
time by the mutual written consent of the parties.

     Section 11.3 Termination by Lakes. This Agreement may be terminated upon
notice by Lakes to Iowa Corp and the Iowa Tribe if an uncured Tribal Event of
Default exists under Section 10.3 and all applicable grace and cure periods have
expired.

     Section 11.4 Termination by Iowa Corp. This Agreement may be terminated
upon notice by Iowa Corp to Lakes if an uncured Lakes Event of Default exists
under Section 10.1 and all applicable grace and cure periods have expired.

     Section 11.5 Buy-out Option. Following sixty (60) months of continuous
operation of the Project's gaming operations following the Opening Date, Iowa
Corp shall have the option to buy out the Lakes' remaining rights under this
Agreement for an amount equal to the present value, using a discount rate which
is the greater of either two percent (2%) above the prime interest rate of Chase
Manhattan Bank U.S.A., N.A. (or any successor bank) or the same rate as the
Project Permanent Financing for the Project in place at the time the buy-out
option is exercised of the Remaining Project Development Fees (as hereinafter
defined). The term "Remaining Project Development Fees" shall mean the total
Monthly Consulting Fixed Fees which would have been payable to Lakes for the
Project under Section 7.1(b) hereof for the


                                      -24-

<PAGE>

balance of the term of this Agreement.

                                   ARTICLE 12
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                           JURISDICTION; GOVERNING LAW

     Section 12.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to the parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by a
          party to the other parties, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality. Iowa Corp and the Iowa Tribe further agree that any
          arbitration proceeding held in connection with any Claim may be
          consolidated with any other arbitration proceeding involving Lakes or
          its Affiliates and any of Iowa Corp's Affiliates.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 12 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing


                                      -25-

<PAGE>

          the enforcement of arbitration awards. In addition to any basis for
          appeal of an arbitration award stated in Title 9 of the United States
          Code or any applicable law governing the enforcement of arbitration
          awards, any party hereto may appeal an arbitration award on the basis
          that the arbitrators incorrectly decided a question of law in making
          the award, or the award was made in an arbitrary or capricious manner
          or in manifest disregard of the factual evidence.

     (d)  Each party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  Iowa Corp and the Iowa Tribe hereby expressly waive, and also waive
          its right to assert, sovereign immunity and any and all defenses based
          thereon with respect to any Claims; and Iowa Corp and the Iowa Tribe
          hereby consent to (i) binding arbitration under the Commercial
          Arbitration Rules of the American Arbitration Association, (ii)
          empowering the arbitrators to take the actions and enforce the
          judicial remedies described in paragraph 5 of the Resolution of
          Limited Waiver of Sovereign Immunity dated January 27, 2005 issued by
          Iowa Corp and the Iowa Tribe in connection with the execution of this
          Agreement, and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, Iowa Corp and
          the Iowa Tribe expressly waive the application of the doctrines of
          exhaustion of tribal remedies or comity that might otherwise require
          that Claims be heard first in tribal court or other tribal forum of
          the Iowa Tribe. The waivers set forth herein only extend to claims or
          proceedings brought by Lakes and any award of damages against Iowa
          Corp or the Iowa Tribe shall be payable solely out of the Collateral.

     Section 12.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.


                                      -26-

<PAGE>

                                   ARTICLE 13
                                  MISCELLANEOUS

     Section 13.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes may assign this Agreement
to a wholly owned subsidiary without Iowa Corp's or the Iowa Tribe's consent;
provided further that Lakes shall remain obligated for the performance of the
Lakes subsidiary hereunder. Other than as expressly provided in this Section
13.1, any attempted assignment or subcontracting without prior written consent
shall be void. Subject to the preceding requirements, this Agreement is binding
upon and inures to the benefit of the parties and their respective successors
and assigns.

     Section 13.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:

     If to Iowa Corp:        Iowa Tribe of Oklahoma
                             a federally-chartered corporation
                             RR 1, P.O. Box 721
                             Perkins. OK 74059
                             Attn: Chairman

     With a Copy to:         David McCullough
                             Doerner, Saunders, Daniel & Anderson, L.L.P.
                             211 N. Robinson Ave. Suite 501
                             Oklahoma City, OK 73102-7112
                             (copy to counsel does not
                             constitute notice to a party)

     If to the Iowa Tribe:   The Iowa Tribe of Oklahoma
                             A federally recognized Indian tribe
                             RR 1, P.O. Box 721
                             Perkins. OK 74059
                             Attn: Chairman

     With a Copy to:         David McCullough
                             Doerner, Saunders, Daniel & Anderson, L.L.P.
                             211 N. Robinson Ave. Suite 501
                             Oklahoma City, OK 73102-7112
                             (copy to counsel does not
                             constitute notice to a party)


                                      -27-

<PAGE>

     If to Lakes:            Lakes Iowa Consulting, LLC
                             130 Cheshire Lane
                             Minnetonka, MN 55305
                             Attn: Timothy J. Cope

     With a Copy to:         Kevin C. Quigley, Esq.
                             Hamilton Quigley Twait & Foley PLC
                             W1450 First National bank Building
                             332 Minnesota Street
                             St. Paul, MN 55101-1314

          and                Brian J. Klein, Esq.
                             Maslon, Edelman, Borman & Brand, LLP
                             3300 Wells Fargo Center
                             90 South Seventh Street
                             Minneapolis, MN 55402-4140
                             (copy to counsel does not
                             constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 13.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 13.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 13.5 Force Majeure. No party shall be in default in the performance
due under this Agreement if that failure of performance is due to causes beyond
its reasonable control, including but not limited to acts of God, war,
terrorism, fires, floods, or accidents causing material damage to or destruction
of the Project Facilities.

     Section 13.6 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 13.7 Entire Agreement. This Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all
provisions of any prior agreements between the parties relating to the
development, financing, construction and equipping of the Project and its
Project Facilities, and any other matter addressed in this Agreement; but shall
specifically exclude any agreement related to the management of the Project and
its Project Facilities.


                                      -28-

<PAGE>

     Section 13.8 Indemnification by Lakes. Lakes shall indemnify Iowa Corp and
it's agents, enrolled members, officers, employees, consultants, and attorneys
(each a "Iowa Corp Indemnitee") from and against any and all damages, claims,
losses or expenses of whatever kind or nature, including attorneys' fees and
expenses incurred in defending those claims, losses or expenses, to the extent
they result from the gross negligence or willful misconduct of Lakes with
respect to (a) a particular Project or (b) non-performance of any of Lake's
obligations under this Agreement. Lakes shall have the sole right to control the
defense and settlement of any matter in which indemnification is required of
Lakes, and shall pay its attorneys' fees, provided that, with respect to those
matters, Lakes shall not be responsible for the attorneys' fees of attorneys
hired by the Iowa Corp Indemnitee.

     Section 13.9 Indemnification by Iowa Corp and the Iowa Tribe. Iowa Corp and
the Iowa Tribe shall immediately indemnify Lakes and its Affiliates, agents,
officers, employees, consultants, and attorneys ( each a "Lakes Indemnitee")
from and against any and all damages, claims, losses or expenses of whatever
kind or nature, including attorneys' fees and expenses as and when incurred in
defending those claims, losses or expenses, to the extent they result from (a)
the gross negligence or willful misconduct of Iowa Corp, the Iowa Tribe or the
Development Committee with respect to (i) a particular Project or (ii) the
performance or non-performance of Iowa Corp's, the Iowa Tribe's or Development
Committee's obligations under this Agreement, or (b) the performance by Lakes of
any of its obligations under this Agreement but excluding any claims, loss or
expense arising from the gross negligence or willful misconduct of Lakes. Iowa
Corp and Lakes shall consult and agree on the defense and settlement of any
matter in which indemnification is required of Iowa Corp or the Iowa Tribe,
Lakes shall have the right to retain its separate counsel to advise it thereon
(but such counsel shall be at Lakes' own expense), and upon the occurrence of
any such claim, the parties shall enter into a mutually acceptable agreement
providing for the procedures by which any such claims shall be prosecuted and
related costs and expenses shall be reimbursed. Lakes shall be listed as an
additional insured on all insurance policies with respect to any Project. Iowa
Corp and the Iowa Tribe further agree to indemnify and hold each Lakes
Indemnittee harmless from any and all liabilities, claims, losses and expenses
arising from any prior agreements entered into by Iowa Corp or the Iowa Tribe
with any Persons or entities in connection with development, construction and/or
operation of the Project Facilities.

     Section 13.10 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 13.11 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 13.12 Cooperation; Approvals. Each of the parties agrees to
cooperate in good faith with the other to timely implement the purposes of this
Agreement. Any consents or approvals required to be given in connection with
this Agreement shall not be unreasonably withheld or delayed by the parties or
their Affiliates.

     Section 13.14 No Management Contract or Grant of Proprietary Interest. The
parties agree that it is their intent that neither this Agreement nor any of the
Iowa Corp Notes or and


                                      -29-

<PAGE>

related security documents and instruments described herein (individually or
collectively) constitute a "Management Contract" within the meaning of IGRA.
Upon the Effective Date, the parties shall submit this Agreement to the NIGC for
review and determination that it is not a Management Contract and therefore does
not require the approval of the NIGC in order to be valid, regardless of whether
it constitutes a "collateral agreement" as that term is defined in IGRA. Each
party shall use its best efforts to pursue such determination and timely
execute, deliver, and if necessary, record any and all additional instruments,
certifications, and other documents as may be required by the NIGC in order to
issue such determination; provided that such required instrument or other
document shall not materially change the respective rights, remedies or
obligations of the parties under this Agreement. If the NIGC finds that this
Agreement does constitute a Management Contract within the meaning of IGRA, then
the parties shall immediately take all necessary steps to amend or modify the
Agreement in a way that preserves the economic benefits of the transactions to
both parties without constituting a Management Contract.

     Section 13.15 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                      -30-

<PAGE>

     The parties have executed this Gaming Development Consulting Agreement as
of the date stated in the introductory clause.

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairperson
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier Jr
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        IOWA TRIBE OF OKLAHOMA
                                        a federally recognized Indian tribe


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairperson
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier Jr
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                        Its: President
                                             -----------------------------------

        [Signature Page to Iowa Gaming Development Consulting Agreement]


                                       31

<PAGE>

                                    EXHIBIT A
                             FORM OF IOWA CORP NOTE
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.134
<SEQUENCE>69
<FILENAME>c92713exv10w134.txt
<DESCRIPTION>IOWA CORP NOTE (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.134

                                 IOWA CORP NOTE
                                   NEW PROJECT

                                                                  Minnetonka, MN
                                                                January 27, 2005

     FOR VALUE RECEIVED, IOWA TRIBE OF OKLAHOMA ("MAKER"), A FEDERALLY-CHARTERED
CORPORATION, CREATED PURSUANT TO SECTION 3 OF THE OKLAHOMA INDIAN WELFARE ACT
OF JUNE 26, 1936 (49 STAT. 1967), UNDER A FEDERAL CHARTER ISSUED TO THE IOWA
TRIBE OF OKLAHOMA ("IOWA TRIBE"), A FEDERALLY RECOGNIZED INDIAN TRIBE, promises
to pay to the order of LAKES IOWA CONSULTING, LLC, A MINNESOTA LIMITED LIABILITY
COMPANY ("LENDER"), in the United States of America, in immediately available
funds, at such place as the holder hereof may from time to time designate, or in
the absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the aggregate unpaid principal amount of all
advances made to Maker pursuant to the "Project Preliminary Development Loan" as
set forth in Article 3 of the Gaming Development Consulting Agreement dated
January 27, 2005 between the parties for a new project (the "Gaming Development
Consulting Agreement"), plus interest thereon from the date of such advances, in
like money, in accordance with the following terms and provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Gaming Development Consulting Agreement.

     2. Advances. Pursuant to the Gaming Development Consulting Agreement,
Lender has agreed to extend the Project Preliminary Development Loan to Maker,
such funds to be loaned in more than one advances (each, an "Advance") as
entered on the Schedule of Advances attached hereto as Schedule A. Each Advance
shall bear interest at the Interest Rate, as described herein, from and
including the date the proceeds of such Advance are advanced (such date the
"Funding Date" of such Advance) through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be limited to the Collateral as described in the
Gaming Development Consulting Agreement. Commencing on the twenty-fifth (25th)
day after the Opening Date for the Project, in the event the Project Preliminary
Development Loan has not previously been repaid through the Project Permanent
Financing, principal and interest on this Note shall be paid in twenty-four
equal monthly installments. Maker shall have the right to prepay all or any part
of this Iowa Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity.

     4. Interest Rate. The Interest Rate means, as to each Advance, an interest
rate equal to the greater of the prime rate of Chase Manhattan Bank, N.A. (or
any successor Bank) plus two percent (2%), per annum or the same rate as the
Project Permanent Financing in place at the time of the advance, fixed as of the
first business day of each calendar month. Interest at the foregoing rate shall
accrue and be compounded annually and shall be payable solely from the
Collateral as provided


                                       -1-

<PAGE>

in Gaming Development Consulting Agreement. Interest shall be computed for the
actual number of days elapsed on the basis of a year consisting of 360 days. It
is intended that the rate of interest hereon shall never exceed the maximum
rate, if any, which may be legally charged on the Project Preliminary
Development Loan evidenced by Iowa Note ("Maximum Rate"), and if the provisions
for interest contained in this Iowa Note would result in a rate higher than the
Maximum Rate, interest shall nevertheless be limited to the Maximum Rate and any
amounts which may be paid toward interest in excess of the Maximum Rate shall be
applied to the reduction of principal, or, at the lawfully exercised option of
the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books and on Schedule A attached hereto all Advances made to the Maker and all
payments of principal amounts in respect of such Advances, which shall be
presumptive evidence as to the outstanding principal amount of all Advances;
provided, however, that the failure to make such notation with respect to any
Advance or payments shall not limit or otherwise affect the obligations of
Maker.

     6. Default; Acceleration. If any Event of Default occurs in the payment of
any principal, interest or any other sums when due hereunder, or in the
performance of any covenant or agreement hereunder, and such default continues
beyond any applicable notice, grace and/or cure period, then the outstanding
principal amount of the Project Preliminary Development Loan, any interest
accrued thereon from time to time, and any other sums then remaining unpaid
hereunder, at the option of the holder hereof and without notice, shall become
immediately due and payable and Lender may exercise any other rights or remedies
available under the Gaming Development Consulting Agreement or applicable law.
Failure to exercise any such option shall not constitute a waiver of the right
to exercise the same at a later time or in the event of any subsequent default.
The following shall constitute "Events of Default" for purposes of this Iowa
Corp Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts due hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or


                                      -2-

<PAGE>

     (d)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing; or

     (e)  Any representation or warranty given to the Lender by Maker (or any of
          its representatives) in connection with entering into the Gaming
          Development Consulting Agreement and/or any borrowing thereunder, or
          given by an Affiliate of Maker in connection with any agreement
          executed by an Affiliate of Maker in favor of Lender or any Affiliate
          of Lender, or required to be furnished under the terms thereof, shall
          prove untrue or misleading in any material respect (as determined by
          Lender in the exercise of its reasonable judgment) as of the time when
          given or shall fail to be true and correct in all material respects at
          any time during the term of the agreement; or

     (f)  Default by Maker in the performance by Maker of any of its covenants
          or commitments under the Gaming Development Consulting Agreement or
          under any other agreement entered into with or in favor of Lender or
          any Affiliate of Lender, or default by Maker's Affiliate under any
          agreement executed by an Affiliate of Maker in favor of Lender or any
          Affiliate of Lender, which default is not cured by Maker or its
          Affiliate as applicable within the applicable cure period after
          written notice of default is delivered to Maker or its Affiliate; or

     (g)  The Gaming Development Consulting Agreement shall be terminated by
          either the Maker or the Lender.

     7. Security. This Iowa Corp Note is secured by a security interest in the
Collateral granted by Maker to Lender pursuant to the Gaming Development
Consulting Agreement, including standard and customary dominion account
agreements/security agreements/mortgages or deed of trust necessary to evidence
and perfect Lender's liens on such Collateral.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Iowa Corp Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Iowa Corp Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no


                                       -3-

<PAGE>

event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS IOWA CORP NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Iowa Corp Note.

     12. Applicable Law. This Iowa Corp Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Iowa Corp Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Iowa Note is found by a
court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Iowa Corp Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this Iowa
Corp Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Iowa Corp Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Iowa Corp Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Iowa Corp Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Iowa Corp Note.

     16. Successors and Assigns. This Iowa Corp Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the


                                       -4-

<PAGE>

Lender shall be deemed to include and apply to every subsequent holder of this
Iowa Corp Note.

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 13.2 of the Gaming Development Consulting Agreement.

     18. Dispute Resolution Limited Waiver of Sovereign Immunity. Maker and
Lender agree that any dispute in connection with this Iowa Corp Note shall be
subject to the dispute resolution procedures and limited waiver of sovereign
immunity contained in Article 12 of the Gaming Development Consulting Agreement,
the terms of which are incorporated by reference herein.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       -5-

<PAGE>

     IN WITNESS WHEREOF, Maker has caused this Iowa Corp Note to be executed and
delivered as of the date first above written.

                                        MAKER:


                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Title: Chairperson
                                               ---------------------------------


                                        By: /s/ Eugene Big Soldier Jr
                                            ------------------------------------
                                        Name: /s/ Eugene Big Soldier Jr
                                              ----------------------------------
                                        Title: Secretary
                                               ---------------------------------

    [Signature Page to Iowa Corp Note in favor of Lakes Iowa Consulting, LLC]

<PAGE>

                                   Schedule A
                             (Schedule of Advances)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.135
<SEQUENCE>70
<FILENAME>c92713exv10w135.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.135

                           DOMINION ACCOUNT AGREEMENT
                     (Lakes Consulting - Iowa - New Project)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 27, 2005 (the "Effective Date'"), between Iowa Tribe of Oklahoma, a
federally-chartered corporation ("Iowa Corp" and sometimes hereinafter referred
to as the "Borrower"), created pursuant to Section 3 of the Oklahoma Indian
Welfare Act of June 26, 1936 (49 Stat. 1967) under a federal charter issued to
the Iowa Tribe of Oklahoma ("Iowa Tribe"), a federally recognized tribe, whose
business office is located at RR 1, P.O. Box 721, Perkins, Oklahoma 74059, and
Lakes Iowa Consulting, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes"), whose business office is located at 130 Cheshire Lane,
Minnetonka, Minnesota 55305, and when it has executed a counterpart signature
page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Iowa Corp is vested with the sovereign immunity of the Iowa Tribe,
and has been established to control and manage the economic affairs of the Iowa
Tribe; and is the legal entity which will own and operate specified gaming
projects which are to be developed by Iowa Corp on behalf of the Iowa Tribe.

     WHEREAS, Lakes has entered into a Gaming Development Consulting Agreement
with Borrower and the Iowa Tribe dated January 27, 2005 (as heretofore and
hereafter amended, the "Consulting Contract"), pursuant to which Lakes is to
provide certain development, financing and consulting services to Borrower.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of gross Revenues derived by
the Borrower with respect to the Project Facilities (as set forth in the
Consulting Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Consulting Contract.


                                                                          Page 1

<PAGE>

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Consulting
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Account Rights" shall have the meaning assigned to such term in Section
2.3 hereof.

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "IGRA" shall mean the Indian Gaming Regulatory Act of 1988, Public Law
100-497.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean all loans, compensation, fees, expenses and other
amounts owing by (i) the Borrower to Lakes or its Affiliates under or with
respect to the Consulting Contract, the Iowa Corp Notes, the Security Agreement,
and each of the other Transaction Documents, (ii) the Iowa Tribe under and with
respect to the Tribal Agreement and any other documents or agreements executed
in favour of Lakes or its Affiliates in connection with the Project Facilities,
(iii) together with any costs, expenses or other amounts hereafter owing by the
Borrower to Agent or Lakes pursuant to the terms of this Agreement, each of the
foregoing, whether now existing or hereafter incurred or arising.


                                                                          Page 2

<PAGE>

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Consulting Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.

     "Project" shall have the meaning assigned to such term in the Consulting
Contract and which shall include, without limitation, the gaming operations of
the Project.

     "Project Revenues" shall mean the gross Revenues (as such term is defined
in the Consulting Contract) of the Project, including without limitation credit
card receivables and other accounts receivable related to such project.

     "Resolution of Limited Waiver" shall mean that certain Iowa Corp Resolution
Regarding Limited Waiver of Sovereign Immunity - Resolution IC-05-03 dated
January 27, 2005, issued in connection with the Transaction Documents.

     "Transaction Documents" shall mean each of this Agreement, the Consulting
Agreement, the Iowa Corp Notes, the Security Agreement, and any and all other
documents and agreements executed by Borrower in favor of Lakes or related
thereto or contemplated thereby (collectively, the "Transaction Documents").

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Agent hereby
acknowledges the security interest in the Collateral granted to Lakes by
Borrower. On the date of execution of this Agreement, the Borrower shall cause
to be delivered to Lakes (a) such financing statements and similar documents
necessary to perfect the security interest granted to Lakes pursuant to Section
3.1 hereof (the "Financing Statements") and (b) a legal opinion in form and
substance reasonably acceptable to Lakes, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by the Borrower, together with opinions as to the Borrower's
sovereign immunity waiver and noncontravention with laws and agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct any manager of the Project Facilities, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be


                                                                          Page 3

<PAGE>

permitted provided the collecting bank(s) execute and deliver the Joinder
Agreement attached hereto as Exhibit A with the Borrower, Lakes and the
collecting banks in form mutually acceptable to each of such parties), the
Borrower shall transfer or cause to be transferred all such Project Revenues or
other Collateral, consisting of cash and other collected funds directly by wire
transfer of immediate available funds to the Project Dominion Account on each
Business Day. In the event that the Borrower receives any payment that should
have been deposited into the Project Dominion Account as provided pursuant to
this Agreement, the Borrower agrees that it will hold such amounts in trust for
the benefit of Lakes, and shall not commingle any such funds with any of its
funds or other property and shall immediately transfer such amounts to the Agent
for deposit into the Project Dominion Account. The Borrower agrees that the
Agent's officers, agents and employees are irrevocably authorized by it to
endorse for payment to the Agent any instruments received by the Agent for
deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Notwithstanding any
other term or provision contained herein or in the Consulting Contract, only
Borrower shall have the authority to make withdrawals from or exercise any other
rights (collectively, the "Account Rights") with respect to Project Dominion
Account; provided that in accordance with Sections 3.2 and 5.2 hereof, Lakes may
revoke such rights of Borrower to make withdrawals and transfers from the
Project Dominion Account. Upon Agent's receipt of a Notice of Exclusive Control
from Lakes, then in connection with any such withdrawals and transfers and any
other aspects of the Project Dominion Account, the Agent shall acknowledge and
comply with only the withdrawal requests and other directions received from
Lakes, except pursuant to an arbitration award made in an arbitration proceeding
to which Lakes and the Borrower are parties. Lakes acknowledges that when it
shall release any funds from the Project Dominion Account, then its security
interest in such funds shall also be deemed to have been released concurrently
therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of an Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a


                                                                          Page 4

<PAGE>

continuing first perfected security interest to Lakes, for and on behalf of
Lakes and its Affiliates, subject only to Permitted Liens of all of the
Borrower's right, title and interest in and to the Collateral. The Borrower
represents and warrants that the Borrower is (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except for Permitted Liens; and that
no financing statement, notice of lien, mortgage, deed of trust or instrument
similar in effect covering the Collateral or any portion thereof or any proceeds
thereof ("LIEN NOTICE") exists or is on file in any public office, except as
relates to Permitted Liens and except as may have been filed in favor of Lakes
relating to this Agreement or related agreements, or for which duly executed
termination statements have been delivered to Lakes for filing. Without the
prior written consent of Lakes, Borrower will not in any way encumber, or
hypothecate, or create or permit to exist, any lien, security interest, charge
or encumbrance or adverse claim upon or other interest in the Collateral, except
for Permitted Liens, and the Borrower will defend the Collateral against all
claims and demands of all persons at any time claiming the same or any interest
therein, except as expressly provided herein. The Borrower will not permit any
Lien Notices to exist or be on file in any public office with respect to all or
any portion of the Collateral except, in each case, for Lien Notices of holders
of Permitted Liens or encumbrances permitted by the Consulting Contract or any
other Transaction Document or except as may have been filed by or for the
benefit of Lakes relating to this Security Agreement or related agreements. The
Borrower shall promptly notify Lakes of any attachment or other legal process
levied against any of the Collateral and any information received by any
Borrower relative to the Collateral, which may in any material way affect the
value of the Collateral or the rights and remedies of Lakes in respect thereto.

     If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:


                                                                          Page 5

<PAGE>

               (i) to obtain and adjust insurance required under this Agreement;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
until such time as Lakes delivers a written notice to Agent and the Borrower in
accordance with Section 5.2 that Lakes is thereby exercising exclusive control
over the Project Dominion Account ("NOTICE OF EXCLUSIVE CONTROL"), provided that
the proceeds of any such investments are deposited in or credited to the Project
Dominion Account contemporaneously with such transaction; and provided, further,
such investment instructions shall not affect the type or nature of Collateral
for attachment and perfection purposes under the Oklahoma Uniform Commercial
Code (as may be amended from time to time) or any other applicable law. After
Agent receives the Notice of Exclusive Control, it will immediately cease
complying with any investment instructions concerning Project Dominion Account
originated by Borrower or its representatives and shall comply with only such
investment instructions as are originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Consulting Contract have been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Consulting Contract.


                                                                          Page 6

<PAGE>

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:

     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or Lakes may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach by
Borrower and termination of the Consulting Contract, the Borrower will furnish
the following to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of the Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,


                                                                          Page 7

<PAGE>

               shall be and remain subject to the provisions of Section 13.15 of
               the Consulting Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief financial officer of the Borrower or an appropriate
               officer of the manager of the Project, substantially in the form
               set forth in Exhibit B stating that, except as explained in
               reasonable detail in such certificate, all gross Project Revenues
               with respect to the Project has been deposited into the Project
               Dominion Account for the period covered by such financial
               statement. If such certificate discloses an exception to such
               certification, such certificate shall set forth what action the
               Borrower has taken or proposes to take with respect thereto.

     (d) Insurance. The Borrower shall cause to be maintained insurance on the
Project and related assets with such coverages and in such amounts as are
reasonably satisfactory to Lakes, including without limitation, loss of business
income coverage, and naming Lakes as an additional insured, lender loss payee
and mortgagee, if applicable. Upon request, the Borrower shall provide to the
Agent and Lakes certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made or at any time shall fail to be
true and correct in all material respects, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended an


                                                                          Page 8

<PAGE>

additional reasonable period of time for so long as the Borrower shall be using
diligent efforts to effect a cure thereof but no more than an additional sixty
(60) days.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under any Iowa Corp Note or
other Transaction Document and shall have continued beyond any applicable grace
or cure period.

     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower, and to
apply the same towards the repayment of the Obligations, and to endorse in the
name of the Borrower any checks, drafts, notes or other instruments or documents
received in payment of or on account of the Project Revenues or other
Collateral; and any such proceeds so received and prepaid shall be applied to
installments of principal on the Obligations in the inverse order of their
maturity; and provided further that Lakes may obtain any injunctive or other
relief as is necessary for the enforcement of this Agreement and the terms and
provisions set forth herein, and may exercise such other rights and remedies
available by law or agreement; PROVIDED, HOWEVER, that notwithstanding any term
or provision contained herein, Lakes shall take all steps necessary to continue
to permit and cause the necessary withdrawals and transfers to be made from the
Project Dominion Account in accordance with Section 5.3 hereof; and in no event
shall Lakes exercise any remedy against the Borrower (excluding other third
parties) with respect to the Project Revenues other than such remedies as are
necessary to require their deposit into the Project Dominion Account or seeking
an accounting and turnover of any Project Revenues held in trust by the Borrower
as required under Section 2.2 hereof until such time that the Borrower shall
have ceased business operations or in accordance with Section 5.3 it is
determined that any portion thereof is no longer economically feasible to
operate at the Project, at which time Lakes may exercise all rights and remedies
under applicable law or by agreement and apply all proceeds of the Collateral to
the repayment of the Obligations. Borrower agrees that, to the extent notice of
sale shall be required by law with respect to the disposition of any Collateral,
at least ten (10) calendar days notice to the Borrower of the time and place of
any public sale or the time after which a private sale is to be made shall
constitute reasonable notification. Lakes agrees that it shall withdraw and
terminate any Notice of Exclusive Control at such time that all outstanding
Events of Default have been cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and


                                                                          Page 9

<PAGE>

in exercising any such powers or authority, the right to pay all expenses
incurred in connection therewith, including attorneys' fees. Borrower hereby
agrees that it shall be bound by any such payment made or incurred or act taken
by Lakes hereunder and shall reimburse Lakes for all reasonable payments made
and expenses incurred under this Agreement, which amounts shall be secured under
this Agreement. Lakes shall have no obligation to make any of the foregoing
payments or perform any of the foregoing acts

     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WITHDRAWALS AFTER DEFAULT/TERMINATION. Upon the occurrence of
an Event of Default and if Lakes shall issue the Notice of Exclusive Control to
Agent, Lakes and Borrower agree that until all obligations under the Transaction
Documents have been indefeasible paid, then during any applicable cure period
related thereto or if the Consulting Contract is terminated, (a) Lakes shall
permit the release of and turnover to Borrower monthly of such funds from the
Project Dominion Account as are reasonably necessary to pay normal and customary
operating costs and expenses related to the operation of the Project, excluding
any amounts that are payable to the Borrower, the Iowa TDC, the Iowa Tribe or
any other affiliate of any of such parties and excluding debt service on any
indebtedness for borrowed money or capital leases except as otherwise approved
by Lakes in writing (collectively, the "Permitted Operating Costs"); and in
connection therewith, Borrower shall provide a proposed operating expense budget
to Lakes for its approval, which shall be updated from time to time at Lakes
request and any funds provided to Borrower shall be spent, used and applied only
in accordance with such budget; and (b) to the extent economically feasible (as
hereinafter defined), Borrower agrees to continue to operate and maintain the
Project and Project Facilities in accordance with reasonable industry standards,
and as to any portions of the Project Facilities that are no longer economically
feasible to operate, Borrower and the Lakes shall conduct an orderly liquidation
of such assets and any liquidation proceeds (net of reasonable sale costs) shall
be deposited into the Project Dominion Account and disbursed in accordance with
the same terms and provisions set forth in clause (a) above, provided however
that such liquidation proceeds shall be excluded


                                                                         Page 10

<PAGE>

from net total revenues for purposes of calculating the management compensation
of any manager of the Project; and Borrower shall keep the Project Facilities
and all related assets insured for the coverages and amounts required by this
Agreement and name Lakes as an additional insured, lender loss payee and
mortgagee, as applicable and provide evidence thereof upon request until all
amounts owing to Lakes have been paid in full, and if any portion of the Project
assets are damaged by any casualty and it is economically feasible for Borrower
to continue to operate such damaged assets, then Borrower shall repair and
reconstruct such operations that were damaged and are to be continued, and any
excess insurance proceeds that are not used to repair and reconstruct the
applicable damaged Project assets shall be deposited into the Project Dominion
Account and disbursed in accordance with the same terms and provisions set forth
herein, provided however that such excess proceeds shall be excluded from net
total revenues for purposes of calculating the management compensation of any
manager of the Project. As used herein, the term "economically feasible" shall
mean that the gross Revenues derived from any applicable operations is in excess
of that needed to pay the Permitted Operating Costs for such operations.

     Section 5.4 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required
to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.


                                                                         Page 11

<PAGE>

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement. If Borrower shall fail to
pay any of such costs when due, Lakes may make a withdrawal of proceeds from the
Project Dominion Account in an amount sufficient to cause the payment of the
same or reimburse Lakes for any such payment.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,
administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the


                                                                         Page 12

<PAGE>

Borrower shall not be and Lakes shall be responsible for such related costs and
expenses. If Borrower shall fail to pay any of such costs when due, Lakes may
make a withdrawal of proceeds from the Project Dominion Account in an amount
sufficient to cause the payment of the same or reimburse Lakes for any such
payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days after the date of this Agreement, Borrower shall select an eligible
financial institution to act as the agent (the "Agent") under this Agreement and
cause the Agent to execute a counterpart signature page to this Agreement,
thereby becoming a party hereto. Thereafter, there shall at all times be an
Agent hereunder. Any such Agent shall be a financial institution organized and
doing business under the laws of the United States of America or of any State,
having a combined capital, undivided profits and surplus of at least
$500,000,000. If at any time the Agent shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of


                                                                         Page 13

<PAGE>

resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower (so long as a Notice of
Exclusive Control has not been issued by Lakes to the Agent) and Lakes delivered
to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.


                                                                         Page 14

<PAGE>

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Iowa Tribe of Oklahoma
                       a federally-chartered corporation
                       RR 1, P. O. Box 721
                       Perkins. Ok 74059
                       Attention: Chairman

     With a copy to:   David McCullough
                       Doerner, Saunders, Daniel & Anderson, L.L.P.
                       211 N. Robinson Ave. Suite 501
                       Oklahoma City, OK 73102-7112

If to Lakes:           Lakes Iowa Consulting, LLC
                       130 Cheshire Lane
                       Minnetonka, MN 55305
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to
the extent of such prohibition without invalidating the


                                                                         Page 15

<PAGE>

remaining provisions hereof, provided, however that where the provisions of any
such applicable law may be waived, they hereby are waived by the Parties to the
fullest extent permitted by law to the end that this Agreement shall be deemed
to be a valid and binding agreement in accordance with its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Consulting Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient. No failure on the part of the Agent or
Lakes to exercise and no delay in exercising, any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power or right preclude any other or further exercise thereof of any other power
or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the dominion account agreement referred
to in Section 3.1(g) of the Consulting Contract. As such and without limiting
the scope of such Consulting Contract, the provisions of Article 12 of the
Consulting Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration and jurisdiction provisions contained
therein and the Resolution of Limited Waiver. This Agreement and the Project
Dominion Account will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles and without limiting
the foregoing, the Oklahoma Uniform Commercial Code (as may be amended form time
to time) notwithstanding any provision therein or other applicable law that
would otherwise make such laws inapplicable to the Borrower. The parties hereto
may not change the law governing this Agreement and the Project Dominion Account
without express written consent of the Borrower, Agent and Lakes.


                                                                         Page 16

<PAGE>

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Consulting Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        IOWATRIBE OF OKLAHOMA
                                        A FEDERALLY-CHARTERED CORPORATION


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairperson
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr
                                              ----------------------------------
                                        Its: Tribal Secretary
                                             -----------------------------------


                                        LAKES IOWA CONSULTING, LLC


                                        By: /s/ Rob Wyre
                                            ------------------------------------
                                        Name: Rob Wyre
                                              ----------------------------------
                                        Its: Sr. V/P Operations
                                             -----------------------------------

                                        ATTEST:


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

Date of Joinder of Agent: __________, 200_

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200_ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
(Consulting)(New Project) dated January 27, 2005 (as amended or otherwise
modified from time to time, the "Dominion Agreement") by and among Iowa Tribe of
Oklahoma, a federally-chartered corporation ("Borrower"), Lakes Iowa Consulting,
LLC ("Lakes") and ____________________________________ ("Agent"), the Collecting
Bank, must execute and deliver a Joinder Agreement in accordance with the
Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and consulting services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                           Bank
                                        ----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Iowa Tribe of Oklahoma, a
federally-chartered corporation (the "Borrower"), do hereby provide this
Compliance Certificate in connection with that certain Dominion Account
Agreement (Consulting)(New Project) dated January 27, 2005 (the "Dominion
Agreement"), by and between the Borrower, Lakes, and __________________________
Bank (the "Bank"); capitalized terms used but not otherwise defined herein shall
have the meaning set forth in the Dominion Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No.
          __________________________________ with the Bank.

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.136
<SEQUENCE>71
<FILENAME>c92713exv10w136.txt
<DESCRIPTION>SECURITY AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.136

                               SECURITY AGREEMENT

                    (LAKES CONSULTING - IOWA -- NEW PROJECT)

          This Security Agreement is made and entered into on January 27, 2005,
by and between the Iowa Tribe of Oklahoma, a federally-chartered corporation
(hereinafter referred to as "Iowa Corp" or "Debtor"), created pursuant to
Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967),
as issued on January 4, 1938 by the Secretary of the Interior and ratified on
February 5, 1938 located in Iowa Indian Country within the physical boarders of
the State of Oklahoma, with business offices located at RR 1, P.O. Box 721,
Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma ("Iowa Tribe"), a
federally-recognized tribe with a Constitution approved and ratified under the
Oklahoma Indian Welfare Act, and Lakes Iowa Consulting, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes" or "Secured Party"), whose
business office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into a Gaming Development Consulting
Agreement with Debtor and the Iowa Tribe dated January 27, 2005 (as heretofore
and hereafter amended, the "Consulting Contract"), pursuant to which Lakes is to
provide certain development, financing and consulting services to Debtor as more
specifically described therein.

     WHEREAS, pursuant to the Consulting Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Consulting Contract, the Debtor and the Iowa Tribe has agreed to execute this
Security Agreement in favor of Secured Party and to grant a security interest to
Secured Party in all of its right, title and interest in the property described
herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:

     1. CREATION OF SECURITY INTEREST. The Debtor and the Iowa Tribe hereby
assign, pledge and grant to Secured Party, for and on behalf of Secured Party
itself and its Affiliates, a security


                                  Page 1 of 15

<PAGE>

interest in the Debtor's and the Iowa Tribe's right, title and interest in and
to the collateral described in Section 2 hereinbelow in each case whether now
owned or hereafter acquired by Debtor or the Iowa Tribe in order to secure the
payment and performance of the obligations of Debtor and the Iowa Tribe to
Secured Party described in Section 3 herein below. On the date of execution of
this Agreement, Debtor and the Iowa Tribe shall cause to be delivered to Secured
Party: (a) such financing statements and similar documents necessary to perfect
the security interest granted to Secured Party pursuant to this Agreement (the
"Financing Statements"), and (b) a legal opinion in form and substance
reasonably acceptable to Secured Party, opining as to the due authorization,
execution, delivery and enforceability of this Agreement and the Financing
Statements by Debtor, together with opinions as to Debtor's and the Iowa Tribe's
sovereign immunity waiver and non-contravention with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Project, the Gaming
Facility Site and/or the Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Consulting
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Consulting Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR AND THE IOWA TRIBE. The Collateral secures
and shall hereafter secure the following, whether now existing or hereafter
incurred: (i) all loans, compensation, fees, expenses and other amounts owing by
(a) Debtor and/or the Iowa Tribe to Secured Party or its Affiliates under or
with respect to the Iowa Corp Notes, the Consulting Contract,


                                  Page 2 of 15

<PAGE>

this Agreement, and each dominion account agreement, mortgage, or other document
or instrument in favor of Secured Party or its Affiliates (as such term is
defined in the Consulting Contract)and related thereto or hereto (collectively,
the "Transaction Documents"), and (b) the Iowa Tribe to Secured Party or its
Affiliates under or with respect to the Tribal Agreement or any other document
or agreement executed in favor of Secured Party or its Affiliates by the Iowa
Tribe in connection with the Project, each of the foregoing, whether now
existing or hereafter incurred or arising, (ii) any and all sums advanced by
Secured Party in order to preserve the Collateral or preserve Secured Party's
security interest in the Collateral (or the priority thereof) and (iii) the
expenses of retaking, holding, preparing for sale or lease, selling or otherwise
disposing of or realizing on the Collateral, of any proceeding for the
collection or enforcement of any indebtedness, obligations or liabilities of
Debtor or the Iowa Tribe referred to above, or of any exercise by Secured Party
of its rights hereunder, together with reasonable attorneys' fees and
disbursements and court costs (collectively, the "Secured Obligations");
PROVIDED HOWEVER, Secured Party agrees to terminate this Security Agreement upon
request if Debtor has satisfied the following conditions: (a) all Secured
Obligations have been repaid in full to Secured Party and Secured Party has no
further obligation, if any, to make advances under the Consulting Contract with
respect thereto, and (b) the Consulting Contract has been terminated in
accordance with its terms.

          All payments and performance by Debtor and the Iowa Tribe with respect
to any Secured Obligations shall be in accordance with the terms under which
said indebtedness, obligations and liabilities were or are hereafter incurred or
created.

     4. REPRESENTATIONS AND WARRANTIES OF DEBTOR AND THE IOWA TRIBE. The Debtor
and the Iowa Tribe represent and warrant that:

          (a) the Debtor and the Iowa Tribe are (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except such liens permitted by and
subject to the terms of Section 9.2 of the Consulting Contract and that are
created by this Security Agreement ("Permitted Liens"); and that no financing
statement, notice of lien, mortgage, deed of trust or instrument similar in
effect covering the Collateral or any portion thereof or any proceeds thereof
("Lien Notice") exists or is on file in any public office, except as relates to
Permitted Liens and except as may have been filed in favor of Secured Party
relating to this Security Agreement or related agreements, or for which duly
executed termination statements have been delivered to Secured Party for filing;

          (b) the Debtor and the Iowa Tribe have full right, power and authority
to execute, deliver and perform this Security Agreement. This Security Agreement
constitutes a legally valid and binding obligation of the Debtor and the Iowa
Tribe, enforceable against each in accordance with its terms subject to any
limitations set forth in the Resolution of Limited Waiver dated January 27, 2005
of each related to and approving the Transaction Documents (the "Resolution of
Limited Waiver"). Subject to the completion of the items identified in Section
4(c) below, the provisions of this Security Agreement are effective to create in
favor of Secured Party a valid and enforceable first, prior and perfected
security interest in the Collateral;


                                  Page 3 of 15

<PAGE>

          (c) except for the filing or recording of the financing statements and
fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or the Iowa Tribe or any governmental authority or
regulatory body is required, except as may be agreed to by Debtor or the Iowa
Tribe and Secured Party: (i) for the grant by the Debtor and the Iowa Tribe of
the security interest in the Collateral pursuant to this Security Agreement or
for the execution, delivery or performance of this Security Agreement by the
Debtor and the Iowa Tribe, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor and the Iowa Tribe do not do business, and for the previous
five years has not done business, under any fictitious business names or trade
names;

          (e) the Collateral has not been and will not be used or bought by
Debtor or the Iowa Tribe for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor or the Iowa Tribe, the consummation of the transactions
herein contemplated, the fulfillment of the terms hereof or the exercise by
Secured Party of any rights or remedies hereunder will constitute or result in a
breach of any of the terms or provisions of, or constitute a default under, or
constitute an event which with notice or lapse of time or both will result in a
breach of or constitute a default under, any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor or
the Iowa Tribe is a party, conflict with or require approval, authorization,
notice or consent under any law, order, rule, regulation, license or permit
applicable to Debtor or the Iowa Tribe of any court or any federal or state
government, regulatory body or administrative agency, or any other governmental
body having jurisdiction over Debtor or the Iowa Tribe or their properties, or
require notice, consent, approval or authorization by or


                                  Page 4 of 15

<PAGE>

registration or filing with any person or entity (including, without limitation,
any stockholder or creditor of Debtor) other than any notices to Debtor or the
Iowa Tribe from Secured Party required hereunder except as may be agreed to by
Debtor or the Iowa Tribe and Secured Party. Except for the Permitted Liens, none
of the Collateral is subject to any agreement, indenture, mortgage, deed of
trust, equipment lease, instrument or other document to which Debtor or the Iowa
Tribe is a party that may restrict or inhibit Secured Party's rights or ability
to sell or dispose of the Collateral or any part thereof after the occurrence of
an Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR AND THE IOWA TRIBE. The Debtor and the Iowa Tribe
covenant and agree that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor and the Iowa Tribe will promptly, and in no event later
than 21 days after a request by Secured Party, procure or execute and deliver
all further instruments and documents (including, without limitation, notices,
legal opinions, financing statements, mortgagee waivers, landlord disclaimers
and subordination agreements) necessary or appropriate to and take any other
actions which are necessary or, in the judgment of Secured Party, desirable or
appropriate to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes and provisions of this Security Agreement, and will pay all reasonable
costs incurred in connection therewith. Without limiting the generality of the
foregoing, Debtor will: (i) mark conspicuously each item of chattel paper and
each other contract included in the Collateral with a legend, in form and
substance satisfactory to Secured Party, indicating that such chattel paper and
other contracts are subject to the security interests granted hereby; (ii)
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable,
which Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a


                                  Page 5 of 15

<PAGE>

promissory note or other instrument or chattel paper (other than checks received
by any Debtor in the ordinary course of business), deliver and pledge to Secured
Party such note or instrument or chattel paper duly endorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to Secured Party; (iv) if any Collateral is at any time
in the possession or control of any warehouseman, bailee, consignee or any of
Debtor's agents or processors, Debtor shall notify such warehouseman, bailee,
consignee, agent or processor of the security interests created or purported to
be created hereby, shall cause such warehouseman, bailee, consignee, agent or
processor to execute any financing statements or other documents which Secured
Party may request, and, upon the request of Secured Party after the occurrence
and during the continuation of an Event of Default, shall instruct such person
to hold all such Collateral for Secured Party's account subject to Secured
Party's instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor and the
Iowa Tribe will not in any way encumber, or hypothecate, or create or permit to
exist, any lien, security interest, charge or encumbrance or adverse claim upon
or other interest in the Collateral, except for liens permitted by and subject
to the terms of Section 9.2 of the Consulting Contract ("Permitted Liens"), and
the Debtor and the Iowa Tribe will defend the Collateral against all claims and
demands of all persons at any time claiming the same or any interest therein,
except as expressly provided herein. Debtor and the Iowa Tribe will not permit
any Lien Notices to exist or be on file in any public office with respect to all
or any portion of the Collateral except, in each case, for Lien Notices of
holders of Permitted Liens or except as may have been filed by or for the
benefit of Secured Party relating to this Security Agreement or related
agreements. Debtor and the Iowa Tribe shall promptly notify Secured Party of any
attachment or other legal process levied against any of the Collateral and any
information received by any Debtor or the Iowa Tribe relative to the Collateral,
which may in any material way affect the value of the Collateral or the rights
and remedies of Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor or the
Iowa Tribe will not sell, transfer, assign (by operation of law or otherwise),
exchange or otherwise dispose of all or any portion of the Collateral or any
interest therein, except that the Debtor or the Iowa Tribe may sell worn-out or
obsolete equipment provided that the proceeds thereof are applied to the Secured
Obligations or used to purchase new collateral of equal or greater value and the
Secured Party shall be granted a first priority security interest therein. If
the proceeds of any such prohibited sale are notes, instruments, documents of
title, letters of credit or chattel paper, such proceeds shall be promptly
delivered to Secured Party to be held as Collateral hereunder (with all
necessary or appropriate endorsements). If the Collateral, or any part thereof
or interest therein, is sold, transferred, assigned, exchanged, or otherwise
disposed of in violation of these provisions, the security interest of Secured
Party shall continue in such Collateral or part thereof notwithstanding such
sale, transfer, assignment, exchange or other disposition, and Debtor and the
Iowa Tribe will


                                  Page 6 of 15

<PAGE>

hold the proceeds thereof in a separate account for Secured Party's benefit.
Debtor or the Iowa Tribe will, at Secured Party's request, transfer such
proceeds to Secured Party in kind;

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
or the Iowa Tribe where permitted by law;

          (h) Except as expressly permitted by the Consulting Contract, Debtor
and the Iowa Tribe will not enter into any indenture, mortgage, deed of trust,
contract, undertaking, document, instrument or other agreement, except for the
Consulting Contract and any documents, instruments or agreements related thereto
or issue any securities which may materially restrict or inhibit Secured Party's
rights or ability to sell or otherwise dispose of the Collateral or any part
thereof after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance on the Project
and related assets with such coverages and in such amounts as are reasonably
satisfactory to Secured Party, including without limitation, loss of business
income coverage, and naming Secured Party as an additional insured, lender loss
payee and mortgagee, if applicable. Upon request, the Debtor shall provide to
the Secured Party certificates of insurance or copies of insurance policies
evidencing that such insurance is in effect at all times;

          (j) Except as expressly permitted by the Consulting Contract, the
Debtor and the Iowa Tribe will pay and discharge all taxes, assessments and
governmental charges or levies against the Collateral prior to delinquency
thereof and will keep the Collateral free of all unpaid claims and charges
(including claims for labor, materials and supplies) whatsoever;

          (k) Debtor and the Iowa Tribe will keep and maintain the Collateral in
good condition, working order and repair and from time to time will make or
cause to be made all repairs, replacements and other improvements in connection
therewith that are necessary or desirable toward such end. Debtor and the Iowa
Tribe will not misuse or abuse the Collateral, or waste or allow it to
deteriorate except for the ordinary wear and tear of its normal and expected use
in Debtor's business in accordance with Debtor's policies as then in effect
(provided that no changes are made to Debtor's policies as in effect on the date
hereof that would be materially adverse to the interests of the Secured Party),
and will comply with all laws, statutes and regulations pertaining to the use or
ownership of the Collateral. Debtor or the Iowa Tribe will promptly notify
Secured Party regarding any material loss or damage to any material Collateral
or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guarantee
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;


                                  Page 7 of 15

<PAGE>

          (m) Intentionally omitted;

          (n) Intentionally omitted;

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor and the Iowa Tribe
hereby agree that each shall be bound by any such payment made or incurred or
act taken by Secured Party hereunder and shall reimburse Secured Party for all
reasonable payments made and expenses incurred under this Security Agreement,
which amounts shall be secured under this Security Agreement. Secured Party
shall have no obligation to make any of the foregoing payments or perform any of
the foregoing acts;

          (q) if Debtor shall become entitled to receive or shall receive any
certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.


                                  Page 8 of 15

<PAGE>

     6. DEFAULTS AND REMEDIES

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor or the Iowa Tribe herein or in any report, certificate or other
document furnished by or on behalf of the Debtor or the Iowa Tribe pursuant to
this Agreement shall prove to be false or misleading in any material respect
when made or at any time shall fail to be true and correct in all material
respects.

          (b) The Debtor or the Iowa Tribe shall default in the due observance
or performance of any of its material obligations hereunder and such default
shall continue for thirty (30) days (unless a shorter or longer cure period is
provided under the terms of this Agreement) after written notice thereof has
been sent to the Debtor or the Iowa Tribe by Secured Party; provided, however,
that if the nature of such default (but specifically excluding defaults curable
by the payment of money) is such that it is not possible to cure such breach
within thirty (30) days, such 30-day period shall be extended for so long as the
Debtor or the Iowa Tribe shall be using diligent efforts to effect a cure
thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Consulting Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor and the Iowa Tribe expressly covenant and agree that
Secured Party may, at its option, in addition to other rights and remedies
provided herein or otherwise available to it, without notice to or demand upon
Debtor or the Iowa Tribe(except as otherwise required herein), exercise any one
or more of the rights as set forth as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Consulting Contract is terminated and either (i) the Gaming
Facility has not opened for business to the general public, or (ii) the Debtor
does not or at any time fails to continue operations of Class II Gaming and/or
Class III Gaming at the Project's Gaming Facility or any material portion of the
Project Facilities, Secured Party may immediately take possession of any of the
Collateral wherever it may be found or require the Debtor to assemble the
Collateral or any part thereof and make it available at one or more places as
Secured Party may designate, and to deliver possession of the Collateral or any
part thereof to Secured Party, who shall have full right to enter upon any or
all of Debtor's or the Iowa Tribe's places of business, premises and property to
exercise Secured Party's rights hereunder; and without notice (except as
specified below), sell the Collateral or any part thereof in one or more parcels
at one or more public or private sales, at any of Secured Party's offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as shall be commercially
reasonable. The Debtor and the Iowa Tribe acknowledge and agree that, to the
extent notice of sale shall be required by law, at least ten (10) days written
notice to Debtor or the Iowa Tribe of the time and place of any public sale or
of the date on or after which any private sale is to be made shall


                                  Page 9 of 15

<PAGE>

constitute reasonable notification. Any public sale shall be held at such time
or times during ordinary business hours and at such place or places as Secured
Party may fix in the notice of such sale. Notwithstanding the foregoing, Secured
Party shall not be obligated to make any sale of Collateral regardless of notice
of sale having been given. Secured Party may, without notice or publication,
adjourn any public or private sale, or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale or, with respect to
a private sale, after which such sale may take place, and any such sale may,
without further notice, be made at the time and place to which it was so
adjourned or, with respect to a private sale, after which such sale may take
place. Each purchaser at any such sale shall hold the property sold free from
any claim or right on the part of Debtor or the Iowa Tribe, and the Debtor and
the Iowa Tribe hereby waive, to the full extent permitted by law, all rights of
stay and/or appraisal which Debtor or the Iowa Tribe now has or may at any time
in the future have under any rule of law or statute now existing or hereafter
enacted. The Debtor and the Iowa Tribe also hereby waive any claims against
Secured Party arising by reason of the fact that the price at which any
Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale, even if Secured Party accepts the
first offer received and does not offer such Collateral to more than one
offeree. The parties hereto agree that the notice provisions, method, manner and
terms of any sale, transfer or disposition of any Collateral in compliance with
the terms set forth herein or any other provision of this Security Agreement are
commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor or the Iowa Tribe is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor or the Iowa Tribe shall not be and Secured Party
shall be responsible for such related costs and expenses. Secured Party may
exercise its rights under this Security Agreement independently of any other
collateral or guaranty that Debtor or the Iowa Tribe may have granted or
provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor or the Iowa Tribe to
secure any Secured Obligation or to proceed against any guarantor before
enforcing its rights under this Security Agreement. The Debtor or the Iowa Tribe
shall reimburse Secured Party upon demand for, or Secured Party may apply any
proceeds of Collateral to, the reasonable costs and expenses (including
attorneys' fees, transfer taxes and any other charges) incurred by Secured Party
in connection with any sale, disposition, repair, replacement, alteration,
addition, improvement or retention of any Collateral hereunder; provided however
that if the Debtor or the Iowa Tribe is the prevailing party in any action or
proceeding seeking enforcement of this Agreement, then the Debtor or the Iowa
Tribe shall not be and Secured Party shall be responsible for such related costs
and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and


                                  Page 10 of 15

<PAGE>

neither the Secured Party nor any of their officers, directors, trustees,
employees, representatives or agents shall, in the absence of willful misconduct
or gross negligence, be responsible to the Debtor for any act or failure to act
pursuant to this Section 6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:           Iowa Tribe of Oklahoma
                        a federally-chartered corporation
                        RR 1, P.O. Box 721
                        Perkins, OK 74059
                        Attention: Chairman

     With a copy to:    David McCullough
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112

If to the Iowa Tribe:   Iowa Tribe of Oklahoma
                        a federally recognized Indian tribe
                        RR 1, P.O. Box 721
                        Perkins, OK 74059
                        Attention: Chairman

     With a copy to:    David McCullough
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112

If to Secured Party:    Lakes Iowa Consulting, LLC
                        130 Cheshire Lane
                        Minnetonka, MN
                        Attention: Timothy J. Cope


                                  Page 11 of 15

<PAGE>

     With a copy to:    Kevin C. Quigley, Esq.
                        Hamilton Quigley Twait & Foley PLC
                        W1450 First National Bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

          and           Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Consulting Contract, neither Debtor nor the Iowa Tribe shall assign any of its
interest under this Security Agreement without the prior written consent of
Secured Party. Any purported assignment inconsistent with this provision shall,
at the option of Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other
agreement executed in connection herewith, is intended by the parties as a final
expression of their


                                  Page 12 of 15

<PAGE>

agreement and is intended as a complete and exclusive statement of the terms and
conditions thereof. Acceptance of or acquiescence in a course of performance
rendered under this Security Agreement shall not be relevant to determine the
meaning of this Security Agreement even though the accepting or acquiescing
party had knowledge of the nature of the performance and opportunity for
objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor and the Iowa Tribe contained herein shall survive the
execution and delivery of this Security Agreement, and shall terminate only upon
the termination of this Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor and the Iowa Tribe hereby
irrevocably appoint Secured Party its attorney-in-fact, which appointment is
coupled with an interest, with full authority in the place and stead of Debtor
and the Iowa Tribe and in the name of each, Secured Party or otherwise, from
time to time in Secured Party's discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Debtor or the Iowa Tribe with respect to the
security interests granted or purported to be granted hereby, (b) to take any
action and to execute any instrument which Secured Party may deem necessary or
advisable to exercise its rights under Section 5(p) hereunder, and (c) upon the
occurrence and during the continuance of an Event of Default, to take any action
and to execute any instrument which Secured Party may deem necessary or
advisable to accomplish the purposes of this Security Agreement, including,
without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.

          (j) Counterparts. This Security Agreement and any amendments, waivers,


                                  Page 13 of 15

<PAGE>

consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor or the Iowa Tribe all of the Collateral
hereunder which has not been sold, disposed of, retained or applied by Secured
Party in accordance with the terms hereof, and execute and deliver to Debtor or
the Iowa Tribe such documents as each may reasonably request to evidence such
termination. Such reassignment and redelivery shall be without warranty by or
recourse to Secured Party, and shall be at the expense of Debtor or the Iowa
Tribe; provided, however, that this Security Agreement (including all
representations, warranties and covenants contained herein) shall continue to be
effective or be reinstated, as the case may be, if at any time any amount
received by Secured Party in respect of the indebtedness and obligations secured
hereunder is rescinded or must otherwise be restored or returned by Secured
Party upon or in connection with the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Debtor or the Iowa Tribe or any other person or
upon or in connection with the appointment of any intervenor or conservator of,
or trustee or similar official for, Debtor, the Iowa Tribe or any other person
or any substantial part of its assets, or otherwise, all as though such payments
had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the security agreement referred to in
the Consulting Contract. As such and without limiting the scope of such
agreements, the provisions of Article 12 of the Consulting Contract apply to
this Agreement and are hereby incorporated by reference, including, without
limitation, the limited sovereign immunity waiver, limitations on recourse and
arbitration provisions contained therein and the Resolution of Limited Waiver.
This Agreement will be governed by the internal laws of the State of Oklahoma
without giving effect to its conflict of laws principles. The parties hereto may
not change the law governing this Agreement without express written consent of
the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                  Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:

                                        IOWA TRIBE OF OKLAHOMA
                                        A federally-chartered corporation

ATTEST:


By: /s/ Eugene Big Soldier Jr           By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr             Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Tribal Secretary                   Title: Chairperson
     --------------------------------          ---------------------------------


                                        IOWA TRIBE OF OKLAHOMA
                                        a federally recognized Indian tribe

ATTEST:


By: /s/ Eugene Big Soldier Jr           By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr             Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Tribal Secretary                   Title: Chairperson
     --------------------------------          ---------------------------------


                                        SECURED PARTY:

                                        LAKES IOWA CONSULTING, LLC

ATTEST:


By: /s/ Rob Wyre                        By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Rob Wyre                          Name: Timothy J. Cope
      -------------------------------
Its: SR. V/P OPS                        Title: President and Chief Financial
     --------------------------------          Officer

                                    EXHIBIT A
                                       TO

<PAGE>

                               SECURITY AGREEMENT
                           (IOWA COLLATERAL LOCATIONS)

1. NEAR INTERSECTION OF STATE HIGHWAY 177 & U.S. HIGHWAY 66 WELLSTON, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.137
<SEQUENCE>72
<FILENAME>c92713exv10w137.txt
<DESCRIPTION>TRIBAL AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.137

                                TRIBAL AGREEMENT
                      (LAKES IOWA CONSULTING - NEW PROJECT)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 27, 2005 ("Effective Date") by and among the Iowa Tribe of
Oklahoma ("Iowa Tribe"), a federally recognized Indian tribe, and Lakes Iowa
Consulting, LLC, a Minnesota limited liability company ("Lakes Consulting").

                                    RECITALS

     A. The Iowa Tribe is a federally recognized Indian tribe eligible for the
special programs and services provided by the United States to Indian tribes,
and is recognized as possessing and exercising powers of self-government. The
Iowa Tribe, pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
1936 (49 Stat. 1967), was issued a corporate charter for Iowa Corp on January 4,
1938 by the Secretary of the Interior and said corporate charter was ratified by
the Iowa Tribe on February 5, 1938. Iowa Corp is vested with sovereign immunity,
and is the entity that controls and manages the economic affairs of the Iowa
Tribe, including tribal gaming operations.

     B. Lakes Consulting has entered into a Consulting Agreement with Iowa Corp
and the Iowa Tribe dated January 27, 2005 (as amended from time to time, the
"Consulting Contract"), pursuant to which Lakes Consulting is to provide certain
financing, development and consulting services to Iowa Corp with respect to
certain "Project Facilities" concerning a new project with specified gaming
operations and related amenities to be developed in Iowa Indian Country, now or
hereafter owned by Iowa Corp on behalf of the Iowa Tribe as described with
specificity therein.

     C. Pursuant to the terms of the Consulting Contract, the Iowa Tribe is
required to execute and deliver this Agreement to induce Lakes Consulting to
enter into the Consulting Contract together with certain additional documents
and agreements referred to therein or related thereto.

     D. The Iowa Tribe and Lakes Consulting intend that this Agreement shall be
operative and binding upon the date of execution by the parties (the "Effective
Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, the Iowa Tribe
and Lakes Consulting agree as follows:


                                       1

<PAGE>

                                   ARTICLE 1
                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Consulting
Contract and/or the other documents and agreements executed by Iowa with respect
thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
the Iowa Tribe and any of Lakes Consulting or any of its Affiliates that is
directly or indirectly related to this Agreement, any of the other Transaction
Documents, a Gaming Project or any Project Facilities, whether arising under law
or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or any of the other
Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(n) hereof.

     "Iowa Entities" means individually and collectively, each of Iowa Corp and
the Iowa Tribe.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Consulting Contract, the Iowa Corp Notes, the security
agreements, dominion account agreements, mortgages, resolutions of limited
waiver and each other document or instrument now or hereafter executed by any of
Iowa, Iowa Corp and/or the Iowa Tribe in favor of Lakes Consulting or its
respective Affiliates and related thereto or hereto or any Gaming Projects

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. The Iowa Tribe represents and
warrants to Lakes Consulting that:

     (a)  Organization. The Iowa Tribe is a federally recognized Indian tribe
          eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Each of Iowa Corp and Iowa Tribe has taken all
          action required by tribal or other law without the necessity of
          further action as is necessary to authorize the applicable Iowa Entity
          to execute, deliver and perform each of the Transaction Documents that
          such Iowa Entity is party to. Each Iowa Entity that is a party to any
          of the Transaction Documents has all requisite power and authority to
          enter into the Transaction Documents to the extent a party thereto and
          to perform its respective obligations thereunder, and to consummate
          all other transactions contemplated thereby.


                                       2

<PAGE>

     (c)  Binding Obligations. Each Transaction Documents (i) has been duly
          executed and delivered by each Iowa Entity to the extent it is a party
          thereto, and (ii) constitutes the legal, valid, binding, perfected and
          enforceable obligation of each Iowa Entity to the extent it is a party
          thereto, enforceable in accordance with its respective terms, except
          as enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for the Project
          constitutes "Indian lands" upon which the Iowa Tribe may legally
          conduct gaming under IGRA.

     (e)  Gaming Permitted. The Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Iowa Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Iowa Tribe. Iowa Corp will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          the Iowa Corp under the Transaction Documents to the extent set forth
          in the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Consulting to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by any of Iowa Corp or the Iowa Tribe or affecting the Gaming
          Facility Site or affecting the Project or the Project Facilities,
          whether arising from contracts, instruments, orders, judgments,
          decrees or otherwise, that are likely to materially and adversely
          affect the Project or the obligations or rights of Lakes Consulting
          under any of the Transaction Documents to which it is a party.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          the applicable Iowa Entity of each Transaction Documents that such
          Iowa Entity is party to does not violate any Legal Requirements nor
          conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of any Iowa Entity, including without limitation
          the Project, or result in the acceleration of any obligation of any
          Iowa Entity under the terms of any agreement or document binding upon
          such party, other than a conflict, breach, default or imposition as
          shall not materially adversely affect the Project or the obligations
          or rights of Lakes Consulting under any of the Transaction Documents
          to which it is a party.


                                       3

<PAGE>

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of any Iowa
          Entity, threatened, against any Iowa Entity or their respective
          Affiliates, or any of the assets or properties of any of such
          entities, that could have a material adverse effect on the Project,
          its Project Facilities, any Iowa Entity's ability to enter into or
          perform any of the Transaction Documents to the extent it is a party
          thereto.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by the Iowa Tribe is
          required to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of any Iowa Entity in
          this Agreement or the other Transaction Documents and no report or
          statement delivered to any of Lakes Consulting or its respective
          Affiliates by or on behalf of any Iowa Entity, contains any untrue
          statement or omits to state a material fact necessary to make any such
          representation, warranty, report or statement, in light of the
          circumstances in which they were made, not misleading. Each Iowa
          Entity has fully disclosed to Lakes Consulting the existence and terms
          of all material agreements and Legal Requirements, written or oral,
          relating to the Project.

     (m)  No Tribal Tax. Neither the Project, Project Facilities nor the
          transaction(s) between the parties contemplated by the Transaction
          Document are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax of any sort other than (i)
          reasonable pass-through taxes on Project Facilities patrons which are
          consistent with gaming resort industry practices, and (ii) the fees
          and assessments described in clause (c) of the definition of "Costs of
          Operations" contained in the Consulting Contract.

     (n)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of the Iowa
          Tribe are/will be owned and operated by Iowa Corp, or if any Gaming
          Project is owned by another subsidiary of the Iowa Tribe, then such
          subsidiary has with respect to Lakes Consulting, entered into a
          consulting agreement and related documents with Lakes Consulting
          and/or its Affiliates on the same terms and conditions as are set
          forth in the Consulting Contract and the other Transaction Documents
          unless otherwise agreed to in writing by Lakes or its Affiliate, and
          otherwise satisfied the required conditions each as set forth in
          Section 3.1(f) hereof.

                                    ARTICLE 3
                                    COVENANTS

     Section 3.1 Covenants. The Iowa Tribe covenants and agrees as follows:


                                       4

<PAGE>

     (a)  Additional Documents. It shall or shall cause Iowa Corp to execute any
          additional instruments as may be reasonably required by Lakes
          Consulting to carry out the intent of any of the Transaction Documents
          or to perfect or give further assurance of any of the rights granted
          or provided for under such Transaction Documents.

     (b)  Non-Impairment. It shall not and shall not permit Iowa Corp or any of
          its other governmental instrumentalities or subsidiaries to enact any
          law, ordinance, rule or regulation impairing the rights or obligations
          of any Iowa Entity or any of Lakes Consulting or its respective
          Affiliates under any of the Transaction Documents.

     (c)  Records. It shall or shall cause Iowa Corp to maintain or cause to be
          maintained full and accurate accounts and records for any particular
          Gaming Project and its Project Facilities according to GAAP.

     (d)  No Liens. Except as otherwise expressly permitted by the Transaction
          Documents, it shall not and shall not permit Iowa Corp or any of its
          other governmental instrumentalities or subsidiaries to cause or
          voluntarily permit any lien or encumbrance to be created on the
          Project Facilities for any Gaming Project, any Gaming Project's Gaming
          Facility Site or any proceeds of any Gaming Project Permanent
          Financing.

     (e)  No Tax. It shall not and shall not permit Iowa Corp or any of its
          other governmental instrumentalities or subsidiaries to impose any
          tax, fee or assessment on any of Lakes Consulting, its respective
          Affiliates, any Contractor, any Gaming Project and its Project
          Facilities, and/or any of the Transaction Documents other than the
          fees and assessments described in clause (c) of the definition of
          "Costs of Operations" contained in the Consulting Contract.

     (f)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all Gaming Projects shall be owned and
          operated by Iowa Corp; provided that a Gaming Project may be owned and
          operated by another subsidiary of the Iowa Tribe so long as prior to
          acquiring such ownership, (i) such subsidiary shall have entered into
          a consulting agreement and related documents with Lakes Consulting
          and/or its Affiliates on the same terms and conditions as are set
          forth in the Consulting Agreement and the Transaction Documents
          related thereto; (ii) Lakes Consulting shall have received the
          following, each in form and substance reasonably acceptable to it:
          (aa) certified copies of the organizational documents of the new
          subsidiary, together with reasonable evidence that such subsidiary is
          wholly owned by the Iowa Tribe, (bb) new Resolutions of Limited Waiver
          with respect to all of such documents and agreements from each of the
          new subsidiary and the Iowa Tribe


                                       5

<PAGE>

          containing substantially the same resolutions and terms as set forth
          in the Resolutions of Limited Waiver received by Lakes Consulting in
          connection with the execution of the original Transaction Documents,
          (bb) legal opinions from counsel to each of the new subsidiary and the
          Iowa Tribe with respect to the such new documents and agreements
          containing substantially the same opinions as provided to Lakes
          Consulting in connection with the execution of the original
          Transaction Documents, and (cc) the Iowa Tribe shall have executed and
          delivered an amendment to this Agreement incorporating all such new
          documents and agreements as additional "Transaction Documents"
          hereunder and such projects and related assets shall be subject to the
          same terms and restrictions set forth herein; and (iii) at the time of
          satisfaction of the foregoing conditions, no "Event of Default" by any
          Iowa Entity under the Transaction Documents has occurred and is
          continuing.

                                    ARTICLE 4
                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by the Iowa Tribe exists. As used in this paragraph,
          the term "Material Breach" shall mean any of the following
          circumstances (i) material failure of the Iowa Tribe to perform a
          material obligation hereunder or any other Transaction Document to
          which it is a party, or (ii) any representation or warranty made
          pursuant to Section 2.1 hereof proves to be knowingly false or
          erroneous in any material way when made or at any time shall fail to
          be true and correct in all material respects.

     (b)  The Iowa Tribe violates any of the covenants in Section 3.1 of this
          Agreement, and after sixty (60) days have passed following a request
          by Lakes Consulting to such Iowa Entity to cure the violation, during
          which the violation has not been cured.

     (c)  The Iowa Tribe has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of such entities property; or (iii) suffered an
          assignment for the benefit of creditors.

     (d)  The Iowa Tribe is no longer an Indian tribe eligible to conduct gaming
          within the meaning of IGRA.


                                       6

<PAGE>

     Section 4.2 Cure of Event Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to the Iowa Tribe of such default and,
if it is possible for such party to cure the Event of Default, it shall have
thirty (30) days following receipt of notice to effect a cure; provided,
however, that if the nature of such breach (but specifically excluding breaches
curable by the payment of money) is such that it is not possible to cure such
breach within thirty (30) days, such thirty-day period shall be extended for so
long as the Iowa Tribe shall be using diligent efforts to effect a cure thereof
but no more than an additional sixty (60) days. Upon the occurrence of any of
the events described in Section 4.1 and during any applicable cure period, Lakes
Consulting may suspend its performance under the Transaction Documents. The
discontinuance or correction of an Event of Default shall constitute a cure
thereof. If the Iowa Tribe fails to cure the Event of Default within the 30-day
period, Lakes Consulting may take any one or more of the following actions: (a)
suspend all performance of Lakes Consulting under the Transaction Documents; (b)
declare all obligations of any Iowa Entity under the Transaction Documents to be
immediately due and owing, (c) terminate the Consulting Contract; and/or or (d)
pursue any other remedy available at law, in equity or by agreement, subject to
the provisions of Article 5 hereof.

                                    ARTICLE 5
       DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND TRIBAL COURT
                          JURISDICTION; GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission; except that: (a) the question whether or not a
          Claim is arbitrable shall be a matter for binding arbitration by the
          arbitrators, such question shall not be determined by any court and,
          in determining any such question, all doubts shall be resolved in
          favor of arbitrability; and (b) discovery shall be permitted in
          accordance with the Federal Rules of Civil Procedure, subject to
          supervision as to scope and appropriateness by the arbitrators. Unless
          the parties otherwise agree to in writing, arbitration proceedings
          shall be held at Oklahoma City, Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their


                                       7

<PAGE>

          appointment, select a third neutral arbitrator. In the event that they
          are unable to do so, the parties or their attorneys may request the
          American Arbitration Association to appoint the third neutral
          arbitrator. Prior to the commencement of hearings, each of the
          arbitrators appointed shall provide an oath or undertaking of
          impartiality.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 5 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.

     (f)  The Iowa Tribe hereby expressly waives, and also waives its right to
          assert, sovereign immunity and any and all defenses based thereon with
          respect to any Claims; and such parties further hereby consents to (i)
          binding arbitration under the Commercial Arbitration Rules of the
          American Arbitration Association, (ii) to empowering the arbitrators
          to take the actions and enforce the judicial remedies described in the
          Iowa Tribe Resolution of Limited Waiver of Sovereign Immunity,
          Resolution I-05-10, dated January 27, 2005 issued in connection with
          the execution of the Transaction Documents (the "Resolution of Limited
          Waiver"), and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.


                                       8

<PAGE>

     (g)  To the extent lawful in connection with any such Claims, the Iowa
          Tribe expressly waives the application of the doctrines of exhaustion
          of tribal remedies or comity that might otherwise require that Claims
          be heard first in tribal court or other tribal forum of the Iowa
          Tribe. The waiver set forth herein only extend to claims or
          proceedings brought by Lakes Consulting and its Affiliates and any
          award of damages against the Iowa Tribe or its Affiliates shall be
          payable solely out of the Collateral (as defined in the Resolution of
          Limited Waiver) whether now or hereafter owned by Iowa Corp, any other
          Iowa Entity or their Affiliates.

     (h)  The Iowa Tribe, on behalf of itself and each of its Affiliates, agrees
          that any arbitration proceeding hereunder may be consolidated with any
          other arbitration proceeding that any of Lakes Consulting or its
          respective Affiliates may bring against Iowa Corp or any other
          Affiliates of the Iowa Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Consulting may assign this
Agreement to a wholly owned subsidiary without the consent of the Iowa Tribe;
provided further that Lakes Consulting, as applicable, shall remain obligated
for the performance of its subsidiary hereunder. Other than as expressly
provided in this Section 6.1, any attempted assignment or subcontracting without
prior written consent shall be void. Subject to the preceding requirements, this
Agreement is binding upon and inures to the benefit of the parties and their
respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the date sent; (c) must be delivered by personal
service, via fax with reasonable evidence of transmission, express delivery or
by certified or registered mail, postage prepaid, return receipt requested; and
(d) until written notice of a new address or addresses is given, must be
addressed as follows:


                                       9

<PAGE>

     If to Iowa Tribe:   Iowa Tribe of Oklahoma
                         A federally recognized Indian tribe
                         RR 1, P.O. Box 721
                         Perkins, OK 74059
                         Attn: Chairman

     With a Copy to:     David McCullough
                         Doerner, Saunders, Daniel & Anderson, L.L.P.
                         211 N. Robinson Ave. Suite 501
                         Oklahoma City, OK 73102-7112
                         (copy to counsel does not constitute notice to a party)

     If to Lakes:        Lakes Iowa Consulting, LLC
                         130 Cheshire Lane
                         Minnetonka, MN 55305
                         Attn: Timothy J. Cope

     With a Copy to:     Kevin C. Quigley, Esq.
                         Hamilton Quigley Twait & Foley PLC
                         W1450 First National bank Building
                         332 Minnesota Street
                         St. Paul, MN 55101-1314

          and            Brian J. Klein, Esq.
                         Maslon, Edelman, Borman & Brand, LLP
                         3300 Wells Fargo Center
                         90 South Seventh Street
                         Minneapolis, MN 55402-4140
                         (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.


                                       10

<PAGE>

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                       11

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        IOWA TRIBE OF OKLAHOMA
                                        A FEDERALLY RECOGNIZED TRIBE


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairperson
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier Jr
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA CONSULTING, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                           Timothy J. Cope

                                        Its: President and Chief Financial
                                             Officer

             [Signature Page to Iowa Tribal Agreement - Consulting]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.138
<SEQUENCE>73
<FILENAME>c92713exv10w138.txt
<DESCRIPTION>MANAGEMENT AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.138

                              MANAGEMENT AGREEMENT

                              FOR A GAMING FACILITY
                                       AND
                          RELATED ANCILLARY FACILITIES

                                     BETWEEN

                           THE IOWA TRIBE OF OKLAHOMA,
                       A FEDERALLY-CHARTERED CORPORATION,
          CREATED PURSUANT TO THE ACT OF JUNE 26, 1936 (49 STAT. 1967),

                           THE IOWA TRIBE OF OKLAHOMA,
                      A FEDERALLY RECOGNIZED INDIAN TRIBE,

                                       AND

                           LAKES IOWA MANAGEMENT, LLC
                      A MINNESOTA LIMITED LIABILITY COMPANY

                             DATED: JANUARY 27, 2005


                                       -1-

<PAGE>

     THIS MANAGEMENT AGREEMENT, is made and entered into this 27th day of
January, 2005 by and between the Iowa Tribe of Oklahoma, a federally-chartered
corporation ("Iowa Corp"), created pursuant to Section 3 of the Oklahoma Indian
Welfare Act of June 26, 1936 (49 Stat. 1967), as issued on January 4, 1938 by
the Secretary of the Interior and ratified on February 5, 1938 located in Iowa
Indian Country within the physical boarders of the State of Oklahoma, with
business offices located at RR 1, P.O. Box 721, Perkins, Oklahoma 74059, the
Iowa Tribe of Oklahoma, a federally-recognized Indian tribe with a Constitution
approved and ratified under the Oklahoma Indian Welfare Act, and Lakes Iowa
Management, LLC, a Minnesota limited liability company ("Lakes"), whose business
office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     A. The Iowa Tribe of Oklahoma ("Iowa Tribe") is a federally recognized
Indian tribe eligible for the special programs and services provided by the
United States to Indian tribes, and is recognized as possessing and exercising
powers of self-government. The Iowa Tribe, pursuant to Section 3 of the Oklahoma
Indian Welfare Act of June 26, 1936 (49 Stat. 1967), was issued a corporate
charter for Iowa Corp on January 4, 1938 by the Secretary of the Interior and
said corporate charter was ratified by the Iowa Tribe on February 5, 1938. Iowa
Corp is vested with sovereign immunity, and is the entity that controls and
manages the economic affairs of the Iowa Tribe, including tribal gaming
operations.

     B. The United States government holds lands in the State of Oklahoma in
trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     C. In compliance with the Indian Gaming Regulatory Act of 1988, P.L.
100-497, 25 U.S.C. Section 2701 et seq. as it may from time to time be amended,
the governing body of the Iowa Tribe has enacted a tribal ordinance regulating
the operation of gaming activities conducted on Iowa Tribe "Indian lands"
(hereinafter referred to as the "Gaming Ordinance"), creating the Iowa Tribe
Gaming Commission, and authorizing Class II and Class III gaming on its "Indian
lands" subject to the provisions of the Gaming Ordinance and a Tribal-State
Compact or gaming procedures issued by the Secretary of the U.S. Department of
the Interior.

     D. The Iowa Tribe is committed to using any gaming activities to provide
employment and improve the social, economic, education, and health needs of its
members; to increase the revenues of the tribe; and to enhance the Iowa Tribe's
economic self-sufficiency and self-determination. The gaming projects of the
Iowa Tribe are expected to generate substantial revenues for Iowa Corp, and
therefore significantly improve the social, economic and health conditions of
present and future tribal members, while strengthening the Iowa Tribe's overall
economic self-sufficiency and self-determination.


                                       -2-

<PAGE>

     E. Iowa Corp presently lacks the resources to operate a gaming operation on
its own and desires to retain the services of a management company, with
knowledge and experience in the gaming industry, to manage and operate certain
of its gaming operations and related resort facilities.

     F. Lakes has represented to Iowa Corp that it has the managerial capacity
to commence operation of the Project's Gaming Facility and Ancillary Facilities
(as defined herein); and Iowa Corp has selected Lakes, and Lakes agrees , to
provide the management expertise necessary to the conducting of successful
tribal gaming operations at the Project's Gaming Facility and the successful
operation of its Ancillary Facilities.

     G. This Management Agreement shall become effective when all the necessary
approvals listed in Section 2.19 are received (the "Effective Date") and shall
continue for a term as described in Section 2.19, unless otherwise provided in
this Management Agreement.

     H. This Management Agreement is entered into pursuant to the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as that
statute may be amended. All gaming conducted at the Gaming Facility (as defined
herein) will at all times comply with the IGRA, applicable tribal law and the
Tribal-State Compact or gaming procedures issued by the Secretary, if any.

     I. Any dispute regarding this Management Agreement between the parties or
any other Transaction Documents is to be subject to the dispute resolution and
governing law provisions contained herein, as well as the Resolutions of Limited
Waiver attached hereto.

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, Iowa Corp, the
Iowa Tribe and Lakes agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     As they are used in this Management Agreement, the terms listed below shall
have the meaning assigned to them in this Article:


                                       -3-

<PAGE>

     "Affiliate" means, with respect to any specified Person, any other Person
that directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with the specified Person. For the
purposes of this definition, "control" (including the terms controlling,
controlled by, or under common control with) means the possession, direct or
indirect, or the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities,
partnership or member interests, by contract or otherwise.

     "Ancillary Facilities" means any hotel, convention center, food and
beverage outlets, retail outlets, and any other enterprise designed to promote,
support, or enhance the Project's Gaming Facility; provided, however, unless the
parties otherwise agree, the term "Ancillary Facilities" shall not include any
of the Iowa Tribe's existing enterprises consisting of (1) fuel and retail sales
made at the existing "Iowa Mini Mart" located in Carney, OK on Hwy. 177, (2) the
"Perkins Smoke Shop" located on West Freeman Ave. in Perkins, OK or (3) the
"Bah-Kho-Je Gallery and RV Park" located on Hwy. 33 in Perkins, OK currently
operated by Iowa Corp.

     "BIA" means the Bureau of Indian Affairs, established within the United
States Department of Interior.

     "Class II Gaming" means games as defined in 25 U.S.C. Section 2703(7)(A),
as such law may be amended and as defined by the National Indian Gaming
Commission in 25 C.F.R. Section 502.3 and amendments thereto, but only to the
extent such games are authorized by tribal ordinance and licensed by the Gaming
Commission.

     "Class III Gaming" means all gaming that is not Class I or Class II Gaming
as defined in the IGRA, including, but not limited to, the forms of gaming
listed as Class III games by the National Indian Gaming Commission in 25 C.F.R.
Section 502.4 and amendments thereto, but only to the extent such gaming is
allowed by a Tribal-State Compact or gaming procedures issued by the Secretary,
tribal ordinance, and licensed by the Gaming Commission.

     "Commencement Date" means the first day that Lakes is legally able to
commence management of the Class II and/or Class III gaming operations conducted
at the Project's Gaming Facility under all Legal Requirements.

     "Costs of Gaming Operation" means the total of all expenses for the
operation of the Class II and/or Class III Gaming activities conducted at the
Project's Gaming Facility pursuant to Generally Accepted Accounting Principles
("GAAP"), including but not limited to the following: (1) fees imposed upon the
Gaming Facility by the National Indian Gaming Commission based upon its gross
receipts from Class II and/or Class III Gaming activities; (2) any contributions
and license/regulatory fee reimbursements payable to the State pursuant to a
Tribal-State Compact or all amounts required to be paid to any local
governmental entity under any agreement to mitigate off-reservation impacts
related to the Gaming Facility; (3) the amount, if any, required by a
Tribal-State Compact to fund or support programs for the treatment and
assistance of compulsive gamblers and for the prevention of compulsive gambling;
(4) license or other fees for


                                       -4-

<PAGE>

background investigations upon "key employees" and "primary management
officials" as defined in 25 C.F.R. Section 502.14 and Section 502.19; (5)
depreciation and amortization applicable to the Gaming Facility based upon an
assumed thirty (30) years life consistent with GAAP, and depreciation and
amortization of all other assets (including without limitation all capital
replacements and improvements, and fixtures, furnishings and equipment) located
therein in accordance with GAAP; (6) costs of administration, recruiting,
hiring, firing and training employees working in or for the Gaming Facility's
Class II and/or Class III Gaming activities; (7) compensation and benefits to
Gaming Facility employees; (8) reasonable and customary regulatory fees imposed
on the Gaming Facility by the Gaming Commission (which amounts shall be subject
to the provisions of Section 5.1 contained herein), (9) management fees to be
paid Lakes under Section 5.5(b) hereof; and (10) total gaming-related costs,
fees and expenses, including, without limitation: materials, supplies,
inventory, utilities, repairs and maintenance (excluding capital replacements,
the costs of which shall be amortized as hereinabove provided), insurance and
bonding, marketing, advertising, annual audits, accounting, legal or other
professional and consulting services, security or guard services, and such other
costs, expenses or fees necessarily, customarily and reasonably incurred in the
operation of the Class II and/or Class III Gaming activities conducted at the
Gaming Facility, and reasonable and necessary travel expenses incurred
subsequent to the Commencement Date for officers and employees of Lakes and
authorized representatives of Iowa Corp in connection with the Gaming Facility's
operations; provided, however, that "Costs of Gaming Operation" shall
specifically not include any license fees or costs of Lakes or its employees in
connection with licensing with either the NIGC or Gaming Commission.

     "Costs of Ancillary Operations" means all expenses and costs pursuant to
Generally Accepted Accounting Principles incurred in operating the Project's
Ancillary Facilities in which neither Class II Gaming nor Class III Gaming is
conducted, including, without limitation: (1) depreciation and amortization
applicable to such non-gaming facilities based upon an assumed thirty (30) years
life consistent with GAAP, and depreciation and amortization of all other assets
(including without limitation all capital replacements and improvements, and
fixtures, furnishings and equipment) located therein in accordance with GAAP;
(2) all employment costs relating to non-gaming employees working in or for such
commercial business facilities; (3) management fees to be paid Lakes under
Section 5.5(b) hereof; (4) non-gaming supplies and materials, insurance and
other non-gaming costs reasonably and customarily incurred in operation of the
Ancillary Facilities in which neither Class II nor Class III Gaming may be
conducted.

     "Dominion Account" shall have the meaning described in Section 2.8(a)
herein.

     "Dominion Account Agreement" shall mean the Dominion Account Agreement to
be executed by Iowa Corp in favor of the Lakes in a form to be agreed to by Iowa
Corp and Lakes together with all amendments, substitutions and renewals thereof.

     "Effective Date" means the effective date of this Management Agreement as
determined pursuant to Section 2.19 herein.


                                       -5-

<PAGE>

     "Fiscal Year" means the accounting year used for the operation of the
Project as agreed upon by Lakes and Iowa Corp.

     "Furnishings and Equipment" shall mean all furniture, furnishings and
equipment required for the operation of the Project in accordance with the
standards set forth in this Management Agreement, including, without limitation:

          (i) cashier, money sorting and money counting equipment, surveillance
     and communication equipment, and security equipment;

          (ii) slot machines, video games of chance, table games, keno equipment
     and other gaming equipment;

          (iii) office furnishings and equipment;

          (iv) specialized equipment necessary for the operation of any portion
     of the Project for accessory purposes, including equipment for kitchens,
     laundries, dry cleaning, cocktail lounges, restaurants, public rooms,
     commercial and parking spaces, and recreational facilities;

          (v) hotel equipment, furniture and furnishings (to the extent a hotel
     is included in the Project); and

          (vi) all other furnishings and equipment now or hereafter located and
     installed in or about the Project Facilities which are used in the
     operation of the Project in accordance with the standards set forth in this
     Management Agreement.

     "Gaming Commission" means the Iowa Tribe Gaming Commission established, or
to be established, by the Gaming Ordinance, as amended (which ordinance must be
approved by the NIGC), with authority to license and regulate gaming activities
on "Indian lands" upon which the Iowa Tribe conducts gaming activities under
IGRA and which is a subordinate governmental entity of the Iowa Tribe and is
entitled to all sovereign governmental immunity of the tribe.

     "Gaming Facility" means all buildings, structures and improvements,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operation of
Class II Gaming and/or Class III Gaming activities on the Gaming Facility Site,
each whether now existing or hereafter construed or acquired.

     "Gaming Facility Site" shall mean the lands to be used as the site for
constructing the Gaming Facility described on attached EXHIBIT A, including the
land upon which the Project's Class II and/or Class III Gaming activities are
conducted (which is land upon which Class II and/or Class III Gaming may legally
be conducted under IGRA and the Tribal-State Compact).

     "Gaming Ordinance" means the tribal ordinance enacted by the governing body
of the


                                       -6-

<PAGE>

Iowa Tribe and approved by the NIGC in compliance with the Indian Gaming
Regulatory Act of 1988, P.L. 100-497, 25 U.S.C. Section 2701 et seq. as it may
from time to time be amended, regulating the operation of gaming activities
conducted on Iowa Tribe "Indian lands", creating the Iowa Tribe Gaming
Commission, and authorizing Class II and Class III gaming on its "Indian lands"
subject to the provisions of the Gaming Ordinance and a Tribal-State Compact or
gaming procedures issued by the Secretary of the U.S. Department of the
Interior.

     "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession.

     "Governmental Authorities" means the United States, the BIA, the State, the
Iowa Tribe and any governmental court, agency, department, commission, board,
bureau or instrumentality of the foregoing (including the NIGC), but only to the
extent it has legal jurisdiction over Class II Gaming and/or Class III Gaming at
the Gaming Facility, the operation of the Project Facilities, or Iowa Corp's,
the Iowa Tribe's or Lakes' obligations under this Management Agreement or any
Transaction Document.

     "Gross Gaming Revenues" means the Project's total revenue from Class II
and/or Class III Gaming activities (excluding any insurance proceeds received
other than business interruption insurance proceeds and insurance proceeds
received to reimburse the Project for any claims included, or to be included, as
Costs of Gaming Operations).

     "Gross Ancillary Revenues" means the Project's total receipts from the sale
or rental of food, beverages, souvenirs, hotel facilities, equipment and all
other goods and services supplied for non-Class II and/or non-Class III Gaming
activities at the Ancillary Facilities that are incidental to the operation of
the Project (excluding any insurance proceeds received other than business
interruption insurance proceeds and insurance proceeds received to reimburse the
Enterprise for any claims included, or to be included, as Costs of Ancillary
Operations).

     "Gross Total Revenues" means the total of Gross Gaming Revenues and Gross
Ancillary Revenues of the Project.

     "IGRA" means the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25
U.S.C. Sections 2701, et seq., as it may be amended from time to time, and all
regulations of the NIGC promulgated thereunder.

     "Indemnity Agreement" shall mean the Indemnity Agreement between Iowa Corp,
the Iowa Tribe and Lakes described in Section 7.5 in the form agreed to by the
parties, together with all amendments, substitutions and renewals thereof.

     "Legal Requirements" means any and all present and future judicial,
administrative, and


                                       -7-

<PAGE>

federal, state, local or tribal rulings or decisions, and any and all present
and future federal, state, local and tribal laws, ordinances, rules,
regulations, permits, licenses and certificates, in any way applicable to Iowa
Corp, the Iowa Tribe, Lakes, the Gaming Facility Site, the Project Facilities,
and the Project, including without limitation, IGRA, the Tribal-State Compact,
and the Gaming Ordinance.

     "Limited Recourse" means that all liabilities or obligations of Iowa Corp
or the Iowa Tribe related to this Management Agreement, the Operating Note, any
Transaction Documents, the Project Facilities, or the Project contemplated by
this Management Agreement, and any related awards, judgments or decrees, shall
be payable solely out of the undistributed and future Gross Total Revenues of
the Project or any other gaming project and any ancillary facilities related
thereto owned directly or indirectly by Iowa Corp or the Iowa Tribe except and
excluding the first four million dollars ($4,000,000) from the Cimarron Casino
for each twelve (12) month period following the Commencement Date (as defined in
the management agreement between the parties dated January 27, 2005) for such
casino, and shall be a limited recourse obligation of Iowa Corp, with no
recourse to any of Iowa Corp's or the Iowa Tribe's assets other than such
undistributed and future Gross Total Revenues of the Project or any other gaming
project and any ancillary facilities related thereto owned directly or
indirectly by Iowa Corp or the Iowa Tribe, and except as to: (i) the Furnishings
and Equipment of the Project or any other gaming project and any ancillary
facilities related thereto owned directly or indirectly by Iowa Corp or the Iowa
Tribe, (ii) the security interest in the Gross Total Revenues pursuant to the
Dominion Account Agreement and any security interest or liens in any Furnishings
and Equipment of the Project, (iii) any mortgages or deeds of trust on fee lands
upon which the Project is located, and (iv) as permitted under Section 10.3(d)
herein and by Paragraph 5(c) of the Resolutions of Limited Waiver attached
hereto as Exhibit B and C. In no event, except as permitted under Section
10.3(d) herein and by Paragraph 5(c) of the Resolutions of Limited Waiver
attached hereto as Exhibit B and C), shall Lakes have recourse to (a) the
physical property of the Project Facilities (other than Furnishings and
Equipment and to any mortgages or deeds of trust on fee lands upon which the
Project is located subject to the security interest securing the Operating
Note), (b) Net Total Revenue distributions already received by Iowa Corp from
the Project and made to the Iowa Tribe in accordance with this Management
Agreement and/or the Dominion Account Agreement, (c) assets of the Iowa Corp or
the Iowa Tribe purchased with such Net Total Revenue distributions, or (d) any
other asset of Iowa Corp or the Iowa Tribe (other than such undistributed and
future Gross Total Revenues of the Project or any other gaming project and any
ancillary facilities related thereto owned directly or indirectly by Iowa Corp
or the Iowa Tribe, the Furnishings and Equipment or any other gaming project and
any ancillary facilities related thereto owed directly or indirectly by Iowa
Corp or the Iowa Tribe, and any mortgages or deeds of trust on fee lands upon
which the Project is located).

     "Lakes" means Lakes Iowa Management, LLC, a Minnesota limited liability
company with its business office located at 130 Cheshire Lane, Minnetonka,
Minnesota 55305.

     "Management Agreement" shall mean this Management Agreement for a Gaming
Facility and Related Ancillary Facilities between the parties that deals with
the management of the Project


                                       -8-

<PAGE>

and its operations, as the same may be amended or modified from time to time,
subject to all Legal Requirements.

     "Material Breach" shall have the meaning described in Section 6.1 herein.

     "Minimum Guaranteed Monthly Payments" means the minimum monthly amount
payable to Iowa Corp, which amount shall be determined pursuant to Section 5.3
hereof.

     "National Indian Gaming Commission" or "NIGC" means the commission
established pursuant to the IGRA.

     "Net Gaming Revenues" means Gross Gaming Revenues less (1) amounts paid out
as, or paid for, prizes; and (2) Costs of Gaming Operation (excluding management
compensation as set forth in Section 5.5 (b) herein).

     "Net Ancillary Revenues" means Gross Ancillary Revenues less Costs of
Ancillary Operations.

     "Net Total Revenues" means the sum of Net Gaming Revenues plus Net
Ancillary Revenues.

     "NIGC Approval" means written approval by the NIGC Chairman of this
Management Agreement.

     "Notes and Security Provisions" shall have the meaning set forth in Section
6.4(b) hereof.

     "Operating Note" means the promissory note evidencing the Minimum
Guaranteed Payment Advances under Section 5.3(b) herein and the Working Capital
Advances under Section 5.7 herein made by Lakes, substantially in a form to be
agreed to by Iowa Corp and Lakes, together with all amendments, substitutions
and renewals thereof.

     "Person" means any entity, whether an individual, trustee, corporation,
general partnership, limited partnership, limited liability company, limited
liability partnership, joint stock company, trust, estate, unincorporated
organization, business association, Indian tribe, commission, instrumentality,
firm, joint venture, Governmental Authority, or otherwise.

     "Project" means the business enterprise of Iowa Corp created to engage in
Class II and/or Class III Gaming at the Gaming Facility located at the Gaming
Facility Site, and which shall include any other lawful commercial activity
conducted in the Ancillary Facilities including, but not limited to, operating
and managing office space, kids arcade, child care facility, hotel with swimming
pool and golf course, restaurant, RV park, retail stores, entertainment
facilities, or the sale of fuel, food, beverages, alcohol, tobacco, gifts, and
souvenirs, and any other amenities which the parties mutually agree should be
included as part of the Project.


                                       -9-

<PAGE>

     "Project Accounts" shall have the meaning described in Section 2.8 herein.

     "Project Facilities" means the permanent buildings, structures and
improvements used by the Project for its gaming and ancillary operations,
together with all furniture, fixtures and equipment and personal property
(whether tangible or intangible) to be used in connection with the operations,
each whether now existing or hereafter constructed or acquired.

     "Replacement" shall have the meaning described in Section 6.4(c) herein.

     "Resolutions of Limited Waiver" refers to the limited waiver of sovereign
immunity to be adopted by the Iowa Tribe and Iowa Corp in the form attached
hereto as EXHIBIT B AND C and evidencing all approvals required pursuant to the
governing documents of each and applicable law (it being understood and agreed
that Iowa Corp and the Iowa Tribe shall take such further actions to ratify,
adopt and enforce the attached form of Resolutions of Limited Waiver as shall be
required by law or regulation due to future changes in its own legal or
governing status to fully preserve its stated intent).

     "Scope of Project Description Sheet" shall mean the Scope of Project
Description Sheet dated January 27, 2005, which substantially describes the
scope of the Project currently contemplated by Iowa Corp and Lakes.

     "Secretary" means the Secretary of the Interior of the United States, or
her appropriately designated representative/agent.

     "Security Agreement" shall mean the Security Agreement to be executed by
the Iowa Tribe and Iowa Corp in favor of Lakes in a form to be agreed to by the
Iowa Tribe, Iowa Corp and Lakes, together with all amendments, substitutions and
renewals thereof.

     "State" means the State of Oklahoma wherein the Gaming Site is located.

     "Transaction Documents" shall have the meaning described in Section 9.12(b)
herein.

     "Tribal Agreement" shall mean the agreement between the Iowa Tribe and
Lakes or its Affiliates described in Section 9.12(i).

     "Tribal-State Compact" means an agreement which may be entered into between
the Iowa Tribe and the State concerning Class III Gaming and any amendments or
other modifications thereto, which agreement must be approved by the Secretary
and published in the Federal Register.

     "UCC Financing Statements" means UCC-1 financing statements naming the Iowa
Tribe and/or Iowa Corp as debtor and naming Lakes or any third party lenders
providing funding to the Project as a secured party, in the form approved by the
parties.


                                      -10-

<PAGE>

     "Working Capital Advances" shall have the meaning described in Section 5.7
herein.

                                    ARTICLE 2
                           AUTHORITY AND DUTY OF LAKES

     2.1 Appointment as Agent. Subject to the terms and conditions of this
Management Agreement, Iowa Corp hereby appoints Lakes to act as the exclusive
agent for Iowa Corp for all matters related to the management of the operations
of the Project Facilities and the Project during the term of this Management
Agreement. Lakes' agency responsibilities shall include, among other things,
maintenance and improvement of the Project Facilities, management and operation
of the Project's Class II and/or Class III Gaming activities within the Gaming
Facility, and all other revenue producing activities that are conducted by the
Project in the Ancillary Facilities, such as the sale of food and beverages.
Lakes accepts such appointment as Iowa Corp's exclusive agent for the term of
this Management Agreement. Subject to the provisions of this Management
Agreement and specifically the restrictions in this Article 2 and the budget
provisions in Article 5 hereof, Lakes shall have, and Iowa Corp does hereby
grant to Lakes, the power and authority as agent for Iowa Corp, to exercise the
rights of Iowa Corp under and to execute, modify, or amend any contracts
associated with the operations of the Project Facilities and Project (excluding
this Management Agreement or compacts or other agreements with the State or any
other governmental agency, which shall remain the sole and exclusive authority
of the Iowa Tribe), including, without limitation, purchase orders, equipment
and retail leases, contracts for services, including utilities, and maintenance
and repair services, relating to the operation of the Project Facilities and the
Project except for real estate agreements and contracts (excluding retail
leases); provided, however, that in no event shall Lakes execute any contracts
or agreements which require payments exceeding $250,000 in the aggregate, or
which have a term exceeding one (1) year. The duties and authorities of Lakes
shall be subject in all events to receipt of all necessary licenses, consents or
approvals from the Gaming Commission.

     2.2 Limitations. Lakes shall have no authority to waive or impair Iowa
Corp's sovereign immunity. Except as stated herein, Lakes shall have no
authority as Iowa Corp's agent under this Management Agreement without the prior
written approval of Iowa Corp (not to be unreasonably withheld): (a) to incur
costs which are materially in excess of the expenditures to be agreed upon in
the operating budget or the capital expenditure budget to be developed pursuant
to Section 5.1 hereof; (b) to sell, encumber or otherwise dispose of any
personal property or equipment located in the Project Facilities, except for
inventory sold in the regular course of business and other items which must be
replaced due to age, obsolescence, or wear and tear; (c) to purchase any goods
or services from Lakes or any of Lakes' affiliated companies as a Costs of
Gaming Operations or Costs of Ancillary Operations unless such arrangement is
specifically approved in writing by Iowa Corp. Except as specifically authorized
in this Article 2, Lakes shall not hold itself out to any third party as the
agent or representative of Iowa Corp.

     2.3 Lakes' Authority and Responsibility.


                                      -11-

<PAGE>

          (a) Lakes, through the Project's general manager, shall conduct and
direct all business and affairs in connection with the day-to-day operation,
management and maintenance of the Project and the Project Facilities, including
the establishment of operating days and hours. It is the parties' intention that
the Project Facilities be open 24 hours daily, seven days a week. Lakes is
hereby granted the necessary power and authority to act, through the Project's
general manager, in order to fulfill all of its responsibilities under this
Management Agreement. Nothing herein grants or is intended to grant Lakes a
titled interest to the Project Facilities or to the Project. Lakes hereby
accepts such retention and engagement. Iowa Corp shall have the sole proprietary
interest in and ultimate responsibility for the conduct of all Class II and/or
Class III Gaming conducted by the Project, subject to the rights and
responsibilities of Lakes under this Management Agreement.

          (b) In managing, operating, maintaining and repairing the Project and
the Project Facilities under this Management Agreement, Lakes' duties, through
the Project's general manager, shall include, without limitation, the following:
(i) Lakes shall use reasonable measures for the orderly physical administration,
management, and operation of the Project and the Project Facilities, including
without limitation cleaning, painting, decorating, plumbing, carpeting, grounds
care and such other maintenance and repair work as is reasonably necessary; (ii)
Lakes shall comply with all duly enacted statutes, regulations and ordinances of
the Iowa Tribe; and (iii) Lakes shall comply with all applicable provisions of
the Internal Revenue Code including, but not limited to, the prompt filing of
any cash transaction reports and W-2G reports that may be required by the
Internal Revenue Service of the United States or under the Tribal-State Compact.

     2.4 Compliance with Laws.

          (a) Lakes, through the Project's general manager, shall assist Iowa
Corp in compliance with all terms and conditions of the Tribal-State Compact,
the Gaming Ordinance, IGRA and any gaming regulations (collectively, the
"Governing Laws"), the violation of which would materially impair the conduct of
gaming permitted to be conducted under IGRA by the Project. Without limiting the
foregoing, Lakes shall also supply the NIGC with all information necessary to
comply with the National Environmental Policy Act, as it may be amended from
time to time, and comply with NIGC's regulations relating thereto. Lakes shall
ensure compliance with requirements concerning the reporting and withholding of
taxes with respect to the winnings from gaming operations pursuant to this
Management Agreement. Iowa Corp agrees to cooperate with Lakes and aid Lakes in
ensuring compliance with the foregoing laws, regulations and requirements. In
managing and operating the Project Facilities and the Project, Lakes shall
comply with all laws, rules, regulations, ordinances, compacts and all other
agreements affecting the same, including without limitation the Governing Laws.

          (b) The parties shall use their best efforts to obtain all necessary
approvals of Governmental Authorities of this Management Agreement.

     2.5 Security. Lakes shall provide for appropriate security for the
operation of the Project Facilities. All aspects of Project Facilities security
shall be the responsibility of Lakes.


                                      -12-

<PAGE>

Upon agreement of Iowa Corp and Lakes, any security officer may be bonded and
insured in an amount commensurate with his or her enforcement duties and
obligations. The cost of any charge for security and increased public safety
services will be a Costs of Gaming Operations or Costs of Ancillary Operations,
as appropriate.

     2.6 Accounting, Financial Records, and Audits.

          (a) Lakes, through the Project's general manager, shall maintain full
and accurate records and books of account for operations of gaming activities
and related ancillary operations managed by Lakes. Such records shall be
maintained at Lakes' office located within the Project Facilities and shall be
made available for immediate inspection and verification at all times.
Inspection or verification by the Governmental Authorities shall be coordinated
through the Gaming Commission.

          (b) Prior to the Commencement Date, and subject to the approval of
Iowa Corp and the Gaming Commission, which approvals shall not be unreasonably
withheld and which shall occur prior to the Commencement Date, Lakes, through
the Project's general manager, shall establish and maintain such approved
accounting systems and procedures that shall: (i) include procedures for
internal accounting controls; (ii) permit the preparation of financial
statements in accordance with GAAP ; (iii) be susceptible to audit; (iv) allow
the Project, Iowa Corp and NIGC to calculate the annual fee under 25 CFR Section
514.1; (v) permit the calculation of Lakes' compensation under Section 5.5(b)
herein; and (vi) provide for the allocation of operating expenses or overhead
expenses among Iowa Corp, the Project and Lakes, or any other user of shared
facilities or services. Supporting records and the agreed upon accounting system
shall be sufficiently detailed to permit the calculation and payment of Lakes'
compensation hereunder and to permit the performance of any fee or contribution
computations required under IGRA, a Tribal-State Compact and other applicable
laws or regulations.

          (c) Net Gaming Revenues, Net Ancillary Revenues, and Net Total
Revenues will be calculated by Lakes, through the Project's general manager, for
purposes of distribution monthly in accordance with Section 5.5 and copies of
such calculations shall be promptly supplied to Iowa Corp as required by Section
5.4 herein.

          (d) All records shall be maintained so as to permit the preparation of
financial statements in accordance with generally accepted accounting principles
consistently applied and in accordance with procedures to be mutually agreed
upon by the parties. Lakes, through the Project's general manager, shall, as a
Costs of Gaming Operations, furnish to Iowa Corp and the Gaming Commission,
monthly financial reports in accordance with Section 5.4 herein. Such reports
shall provide reasonable detail as requested by Iowa Corp and the Gaming
Commission with respect to revenues and expenses of each profit center of the
Project. In addition, all gaming operations conducted within the Gaming Facility
shall be subject to special outside annual audits, which the Gaming Commission
may cause to be conducted, and all contracts or subcontracts for supplies,
services or concessions for a contract amount in excess of $25,000 annually
relating to gaming activities within the Gaming Facility shall be subject to
audits, which audits the Gaming


                                      -13-

<PAGE>

Commission may cause to conducted by an independent certified public accountant
with more than five (5) years experience in audits of gaming enterprise
operations selected and approved by the Gaming Commission. The cost of such
audits and audit reports (including the annual audit under Section 5.6 herein)
shall constitute Costs of Gaming Operation. The Lakes shall make any reports or
presentations to Iowa Corp officials as are requested.

     2.7. Cash Monitoring. Lakes, through the Project's general manager, will
promulgate, and all parties and their respective employees, agents, and
representatives will obey operational policies consistent with the Gaming
Ordinance respecting the handling of cash, security systems, and access to cash
cage, counting rooms, and other places where cash is kept and handled. Iowa Corp
and the Gaming Commission and its authorized representatives shall have the
right to monitor and investigate systems for cash management implemented by
Lakes and to verify daily Gross Gaming Revenues, Gross Ancillary Revenues, and
Gross Total Revenues.

     2.8 Bank Accounts, Reserve Funds and Permitted Investments.

          (a) On or prior to the Commencement Date, Iowa Corp and Lakes shall
execute the Dominion Account Agreement and create the Dominion Account
("Dominion Account") described therein. Gross Gaming Revenues and Gross
Ancillary Revenues shall be deposited daily into the Dominion Account, which
shall be subject to the lien of the Dominion Account Agreement and established
at a commercial bank, of Iowa Corp's choice, organized under the laws of the
United States of America or any state thereof provided such bank is a member of
the Federal Deposit Insurance Corporation and has combined capital, undivided
profits and surplus of at least $500,000,000. Lakes shall also establish other
segregated bank accounts with the approval of Iowa Corp for the operation of the
Project (the "Project Accounts"), which accounts must indicate the custodial
nature of the accounts. The signatures of authorized representatives of Lakes
shall be the only signatures required to make withdrawals (by check or
otherwise) from such accounts for single withdrawals of less than $250,000,
provided that the monies withdrawn by Lakes are to be used only for the purposes
set forth herein and provided further that if the amount of any single
withdrawal exceeds $250,000 (excluding payout and prizes and transfers to any
designated payroll accounts, taxes, and purchases of cash for day-to-day
operational purposes, or Lakes' compensation under Section 5.5 herein), then the
signature of Iowa Corp's designated representative will also be required.

          (b) Lakes agrees that subject to the terms of Sections 5.3(b) and
6.4(b) hereof, Lakes shall make or permit timely transfers from the Dominion
Account to the Project Accounts of all funds needed to pay (i) Costs of Gaming
Operations; (ii) Costs of Ancillary Operations; (iii) required debt service on
the Project Facilities, as well as any other third party loans to which Lakes
has consented in writing pursuant to the terms of this Management Agreement or
other agreement; (iv) the Minimum Guaranteed Monthly Payment; (v) Minimum
Guaranty Payment Advances; and (vi) disbursements required pursuant to Section
5.5 hereof. Upon the termination of this Management Agreement and so long as:
(a) any amounts remain owing to Lakes hereunder or with respect to any related
Transaction Document, and (b) the Project shall continue in operation pursuant
to the terms of Section 6.4 hereof, then Lakes shall continue to permit
transfers from the


                                      -14-

<PAGE>

Dominion Account to the Project Accounts for payment of the amounts described
above, but shall specifically exclude any Costs of Gaming Operations or Costs of
Ancillary Operations otherwise payable to Iowa Corp or any of its Affiliates
with the exception of reasonable gaming license fees and any costs or expense
associated with the provision of reasonable supplies and/or services provided by
Iowa Corp to the Project.

          (c) Surplus funds deposited in the Dominion Account and the Project
Accounts may be invested by Lakes in the following permitted investments: (i) a
money market mutual fund registered under the Investment Company Act of 1940
that invests exclusively in (1) marketable direct obligations issued or
unconditionally guaranteed by the United State Government or issued by an agency
thereof and backed by the full faith and credit of the United States, (2)
commercial paper having, at the time of acquisition, a rating of A-1 or P-1 or
better from either Standard & Poor's Corporation or Moody's Investors Service,
Inc., respectively; or (ii) other investments as may be directed by Lakes with
the prior written consent of Iowa Corp.

     2.9 Enforcement of Rights.

          (a) During the term of this Management Agreement, except as otherwise
provided in Section 2.9 (b) herein, Iowa Corp and Lakes shall mutually agree
with respect to the handling of the defense, prosecution or settlement of civil
disputes with third parties relating to gaming and other management activities
conducted or contracts executed by Lakes, as agent for Iowa Corp. The parties
will assist and cooperate with each other with respect to such third-party
claims and disputes. All uninsured liabilities incurred or expenses incurred by
Iowa Corp and Lakes or any of the employees, officers or directors of any party
in defending such claims by third parties or prosecuting claims against third
parties shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending upon the circumstances and nature of the claim,
except with respect to claims and liabilities resulting from criminal
misconduct, which shall be governed by Article 7 herein.

          (b) All claims brought against Iowa Corp or Lakes or any of the
employees, officers or directors of any party arising out of or relating to
gaming or other ancillary operations conducted pursuant to this Management
Agreement that may be settled and released for a total settlement amount of less
than $100,000 may be paid and settled by Lakes on behalf of Iowa Corp and/or
Lakes in accordance with Lakes' good faith business judgment.

     2.10 Fire and Safety Services. Lakes, through the Project's general
manager, shall be responsible for obtaining adequate coverage for fire and
safety services and may, in its discretion, have such services provided on a
contractual basis by the local fire and police departments. The costs of any
fire and safety protection services shall be appropriately allocated between
Costs of Gaming Operation and Costs of Ancillary Operations, and, if provided by
a department of the Iowa Tribe, shall not exceed the actual cost of providing
such services.

     2.11 Timely Payment of Costs of Gaming Operations and Costs of Ancillary
Operations. Lakes shall be responsible for paying Costs of Gaming Operation and
Costs of Ancillary


                                      -15-

<PAGE>

Operations on behalf of the Project from the bank account(s) established
pursuant to Section 2.8 herein so as to avoid any late-payment penalties, except
those incurred as a result of good faith payment disputes) to the extent funds
of the Project are available; provided, however, that payment of all such costs
(and taxes or similar payments arising from Project operations) shall be solely
the legal responsibility of the Project.

     2.12 Acquisition of Gaming and Other Equipment.

          (a) All gaming equipment shall be acquired by Lakes, as agent for Iowa
Corp, on behalf of the Project from Gaming Commission licensed distributors and
manufacturers.

          (b) All acquisitions of new equipment after the public opening of the
Project Facilities shall be purchased by Lakes as agent for Iowa Corp on behalf
of the Project on a cash on delivery basis, unless otherwise agreed by Iowa
Corp.

     2.13 Hours of Operation. Unless otherwise agreed by the parties, the
Project Facilities shall be operated seven days per week and twenty-four hours
per day, subject to any restrictions in the IGRA, the Gaming Ordinance and a
Tribal-State Compact.

     2.14 Access to Operations. Lakes, through the Project's general manager,
shall provide immediate access by appropriate officials of the Gaming Commission
and Iowa Corp's designated representative to the gaming operation, including all
books and records in addition to those listed in the access requirements set
forth in Sections 2.6 and 2.7 herein.

     2.15 Increased Public Safety Services. The parties agree that increased
actual costs of law enforcement and police protection services required as a
result of Class II and/or Class III Gaming in the Gaming Facility shall be paid
as Costs of Gaming Operation.

     2.16 Advertising. Lakes, through the Project's general manager, shall
contract for and place advertising, subject to prior approval of the general
concepts of the advertising by Iowa Corp. Advertising costs will be included in
the operating budgets prepared in accordance with Article 5 herein.

     2.17 Certain Meetings. The parties agree that, to facilitate oversight of
the activities conducted pursuant to this Management Agreement and to maintain
communication generally between the individuals who will be involved in
supervising those activities, Iowa Corp or its designated representative and the
Lakes' principal individuals will meet at least monthly to review operations of
the Project Facilities and any current issues pertaining thereto.

     2.18 Maintenance. Lakes, through the Project's general manager, will cause
the Project Facilities to be repaired and maintained and operated in a clean,
good and orderly condition. Repairs and maintenance will be paid as Costs of
Gaming Operation if related to the gaming operations of the Project, or as Costs
of Ancillary Operation if related to the other ancillary operations of the
Project.


                                      -16-

<PAGE>

     2.19 Term. Notwithstanding the date of signature of the parties hereto,
this Management Agreement shall become effective automatically (without need of
amendment, ratification or other action of the parties) upon written approval of
the Gaming Ordinance and this Management Agreement by the Chairman of the
National Indian Gaming Commission. The Commencement Date shall be the first day
upon which Lakes may legally manage the Gaming Facility's gaming operations
under IGRA. Unless sooner terminated as provided herein, this Management
Agreement shall, subject to Legal Requirements, continue for a term of seven (7)
years from the Commencement Date, provided however that the Notes and Security
Provisions, including without limitation, each of (a) the Security Agreement,
Dominion Account Agreement, Indemnity Agreement and the UCC Financing
Statements, and (b) sections 2.8 and Article 7 hereof shall each survive and
remain effective until terminated under Article 6 hereof and the amounts owing
to Lakes or its Affiliate by Iowa Corp under this Management Agreement and
related Transaction Documents have been paid in full.

     2.20 Iowa Corp Representatives. Iowa Corp hereby acknowledges and agrees
that to the extent any authorization, consent or other approval of the Iowa Corp
is required under this Management Agreement or any related Transaction Documents
and Iowa Corp shall provide to Lakes a resolution naming any individual or
individuals authorized to represent Iowa Corp for purposes or for the purpose of
the operation and performance of this Management Agreement and related
Transaction Documents, then Lakes shall be entitled to rely on all decisions,
authorizations, consents, and approvals provided by such individual or
individuals, as applicable, until such time as Iowa Corp shall deliver to Lakes
an additional resolution revoking or otherwise modifying such authority.

     2.21 Gaming Facility Site. Iowa Corp and Lakes mutually agreed that the
site to be used for constructing the Gaming Facility ("Gaming Facility Site")
shall be those lands described on attached EXHIBIT A, (which is land upon which
Class II and/or Class III Gaming may legally be conducted under IGRA and the
Tribal-State Compact).

     2.22 Scope of Project. The scope of the Project subject to this Management
Agreement shall be subject to the mutual approval of the parties. It is
contemplated the scope of the Project will be substantially as described on the
Scope of Project Description Sheet dated January 27, 2005, subject to such
changes as may be necessary or appropriate taking into account competitive
conditions, financing and other circumstances. The parties understand that
market, Tribal-State Compact, governmental or other conditions may change and it
may be necessary to expand or decrease the scope of the Project.

     2.23 Non-Encumbering Assets. Iowa Corp and the Iowa Tribe agree not to
encumber any of the assets of the Project Facilities or the Project without the
written consent of Lakes, which consent will not be unreasonably withheld;
except that Iowa Corp shall have the right without the consent of Lakes to grant
security interests in the Project's revenues which are subordinate to Lakes'
interests under this Management Agreement and all related Transaction Documents
pursuant to a subordination agreement in form and substance acceptable to Lakes.
Iowa Corp and the Iowa


                                      -17-

<PAGE>

Tribe agree to enter into a limited, transactional waiver of sovereign immunity
and consent to jurisdiction and arbitration as to Lakes in connection with this
Management Agreement and any related Transaction Documents, as provided in the
Resolutions of Limited Waiver.

                                    ARTICLE 3
                                PERSONNEL MATTERS

     3.1 Employees. All employees involved with operation of the Gaming
Facility's Class II and/or Class III Gaming activities and related ancillary
activities throughout the Project Facilities subject to management by Lakes
under this Management Agreement shall be employees of Iowa Corp. Subject to the
applicable requirements in the Tribal-State Compact, the employment relationship
shall be governed by Iowa Tribe substantive law and any applicable federal law,
subject to the Iowa Tribe's reasonable Indian preference policies, and all
matters will be subject to dispute resolution procedures in the manner described
in this Management Agreement. Lakes, on behalf of the Project, shall be solely
responsible for the hiring, training, promoting, and firing of all such
employees except for the general manager as agreed to by Iowa Corp and Lakes,
whose employment, advancement and termination shall be subject to approval of
Iowa Corp, such approval not to be unreasonably withheld. Lakes shall develop a
policy and procedure in conjunction with Iowa Corp, to implement an executive
development program for employees who are members of the Iowa Tribe whereby
members will be prepared through training and education to assume key management
positions within the gaming and ancillary operations of the Project. All
salaries, wages, employee insurance, worker compensation premiums, employment
taxes, government exactions of any kind related to employment, benefits, and
overhead related to the hiring, supervising, and discharge of employees, will be
Costs of Gaming Operations or Costs of Ancillary Operations, as appropriate.

     3.2 Project Employee Policies. Lakes, through the Project's general
manager, shall prepare a draft of personnel policies and procedures (the
"Project Employee Policies"), including a job classification system with salary
levels and scales, which policies and procedures shall be subject to approval by
Iowa Corp. The Project Employee Policies shall include a grievance procedure in
order to establish fair and uniform standards for the Project employees, which
will include procedures for the resolution of disputes between the Project and
Project employees. At a minimum, the Project Employee Policies shall provide for
an employee grievance process which provides the following:

     A written "Board of Review" process will be created by the Project's
     general manager to provide Project employees with a procedure for bringing
     work related issues to the attention of Project management so they may be
     promptly and permanently resolved in a fair and equitable manner. The Board
     of Review process will be available to all Project employees except: (1)
     employees at the director level and above, and (2) employees discharged for
     actions involving violations of tribal gaming regulations or law, or
     federal, state, or local law. Project employees will be eligible to use the
     Board of Review process if they have: (a) completed thirty (30) work
     shifts, and progressed through the chain of command in their


                                      -18-

<PAGE>

     home department in the Project, (b) brought the work related issue to the
     attention of the Project's human resources department, and (c) completed a
     Board of Review hearing request form within the allotted time frame. The
     Project's human resources department shall be responsible for selecting
     hearing panel members as outlined in written procedures to be adopted. The
     Board of Review will be empowered to make the full range of decisions
     available and appropriate (i.e. providing back pay and an apology to the
     employee, or upholding the employee's discharge). The Board of Review's
     decision on the work related issue will final and binding, and there will
     be no appeal beyond the Board of Review.

Lakes, through the Project's general manager, shall be responsible for
administering the Project Employee Policies. Any material revisions to the
Project Employee Policies shall not be effective unless they are approved by
Iowa Corp. All such actions shall comply with applicable tribal law, subject to
the applicable requirements in a Tribal-State Compact.

     3.3 Employee Background Checks. A background investigation shall be
conducted by the Gaming Commission in compliance with all Legal Requirements, to
the extent applicable, on each applicant for employment as soon as reasonably
practicable. No individual whose prior activities, criminal record, if any, or
reputation, habits and associations are known to pose a threat to the public
interest, the effective regulation of Class II and/or Class III Gaming, or to
the gaming licenses of Lakes or the Project, or to create or enhance the dangers
of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of Project gaming activities, shall knowingly be employed by the Project
or Iowa Corp. The background investigation procedures employed by the Gaming
Commission shall be formulated in consultation with Lakes and shall satisfy all
regulatory requirements independently applicable to Lakes; provided, however,
that this provision shall not be deemed to limit or impair the exclusive
authority of the Gaming Commission pursuant to the Gaming Ordinance or the
exercise of its discretion thereunder. Any cost associated with obtaining such
background investigations shall constitute Costs of Gaming Operation.

     3.4 Iowa Tribe and Indian Preference. Lakes, through the Project's general
manager, shall adhere in regard to recruitment, employment, reduction in force,
promotion, training and related employment actions to a publicly announced
policy and practice of Iowa Tribe Preference and/or any publicly announced
policy of Indian preference, both of which must be reasonably promulgated by the
Iowa Tribe.

     3.5 Conflict of Interest.

          (a) Lakes covenants that it will not unduly interfere with, or attempt
to influence the internal affairs or government decisions of the Iowa Tribe or
any of its Affiliates for its gain or advantage.

          (b) Lakes hereby certifies that no payments have been made or will be
made in the future by Lakes to any tribal official, relative of any tribal
official or government employee for the purpose of obtaining any special
privilege, gain, advantage or consideration for Lakes in connection with this
Management Agreement, except for the fees payable to the Gaming


                                      -19-

<PAGE>

Commission and amounts payable to Iowa Corp pursuant to this Management
Agreement. However, nothing in this provision shall prohibit Lakes from making
contributions to community organizations within the Iowa Tribe or to the Iowa
Tribe for the purpose of funding community activities.

          (c) No member of the Gaming Commission, or any Iowa Tribe tribal court
official may be employed by Lakes or be a "Party in Interest" as defined in
Section 8.1 (a) herein with respect to this Management Agreement or a gaming
equipment agreement or have any direct or indirect financial interest in the
gaming to be operated pursuant to this Management Agreement. tribal officials
shall not be eligible for employment at the Project Facilities and Project, but
will be eligible to enter into contracts for the provision of goods or services
for the Project Facilities and Project.

          (d) Lakes further agrees to comply with all conflict of interest rules
set forth in regulations or ordinances of the Iowa Tribe.

     3.6 Participation in Tribal Functions. Lakes acknowledges that personnel
who are members of the Iowa Tribe have cultural and religious responsibilities
to perform in regard to tribal rituals and similar activities. Lakes, through
the Project's general manager, will schedule working hours and take other
actions, with the assistance and advice of Iowa Corp, to accommodate tribal
members in performing these responsibilities without affecting their employment
status or position.

                                    ARTICLE 4
                                    INSURANCE

     4.1 Duty to Maintain. Lakes, acting as agent of Iowa Corp, shall maintain
during the course of this Management Agreement, appropriately allocated as a
Cost of Gaming Operation or a Cost of Ancillary Operations, insurance coverages
in forms and amounts that will adequately protect Iowa Corp and Lakes, but in no
case less than the amounts set forth in this Article, or as required by a
Tribal-State Compact.

     4.2 Workers' Compensation. Lakes, acting as agent of Iowa Corp, shall
maintain adequate workers' compensation insurance in accordance with all
applicable laws, including employer's liability insurance, in the amounts agreed
to by the Lakes and Iowa Corp, or as required by the Tribal-State Compact.

     4.3 Commercial General Liability. Lakes, acting as agent of Iowa Corp,
shall purchase on Iowa Corp's behalf and maintain commercial general liability
insurance covering operations of the Project, including blanket contractual
liability coverage, broad form property liability coverage, and personal injury
coverage in the amount of $1,000,000 per person/$3,000,000 per occurrence for
bodily injury and $1,000,000 per person/$3,000,000 per occurrence for property
damage, or as required by the Tribal-State Compact or the Gaming Commission.

     4.4 Automobile. Lakes, acting as agent of Iowa Corp, shall maintain
comprehensive


                                      -20-

<PAGE>

automobile liability insurance covering operations of the Project, including all
owned, hired and non-owned automobiles, trucks, buses, trailers, motorcycles or
other equipment licensed for highway use with limits and coverage approved by
Lakes and Iowa Corp.

     4.5 Iowa Corp and Lakes to be Insured. Insurance set forth in Sections 4.3
and 4.4 hereof shall name Iowa Corp and Lakes as insureds, and such policies
shall be endorsed to prohibit the insurer from raising tribal sovereign immunity
as a defense to the payment of claim by the insurer.

     4.6 Property Insurance. Lakes shall also, acting a agent for Iowa Corp,
procure replacement value all-risk casualty and extended hazard insurance in
appropriate coverage amounts which shall insure the Project Facilities and any
fixtures, improvements and contents located therein against lost or damage by
fire, theft and vandalism. Such casualty insurance policy or policies shall name
Iowa Corp, Lakes, and the Project Facilities as insureds. All such casualty
insurance proceeds shall be applied to the immediate replacement of the
applicable Project Facilities' part or fixture, improvements or contents therein
unless the parties agree otherwise. Subject to the terms of Sections 6.4 and 6.6
hereof, any excess insurance proceeds that are not used to repair and
reconstruct the applicable damaged Project assets shall be deposited into the
Dominion Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such excess proceeds
(except business interruption insurance proceeds) shall be excluded from Net
Total Revenues for purposes of calculating the management compensation of Lakes
under Section 5.5(b) hereof.

     4.7 Fidelity Bond. Lakes, acting as agent of Iowa Corp, shall maintain
fidelity bonds on Project employees and in such amounts as Lakes and Iowa Corp
shall deem reasonable.

     4.8 Unemployment Insurance. Lakes, acting as agent for Iowa Corp, shall
maintain adequate unemployment compensation/disability insurance with respect to
the Project employees in compliance with the Tribal-State Compact, if
applicable.

     4.9 Evidence of Insurance. From time to time as reasonably requested by
Iowa Corp, Lakes shall supply to Iowa Corp and any necessary Governmental
Authorities copies of the insurance policies applicable to the Project
Facilities or Project operations as required by this Article.

     4.10 Insurance Proceeds. Subject to the terms of Sections 6.4 and 6.6
hereof, any insurance proceeds received with respect to the Project, except as
provided in Section 4.6 hereof, shall be deposited into the Dominion Account and
disbursed in accordance with the same terms and provisions applicable to Gross
Total Revenues, provided, however, that if there is any insurance recovery for a
claim related to the operation of the Project for which either Iowa Corp or
Lakes has previously paid from its own separate funds, then, to the extent of
amounts paid by either of such parties, the insurance proceeds will be paid over
to them and the balance shall be deposited into the Dominion Account as above.


                                      -21-

<PAGE>

                                    ARTICLE 5
                     BUDGETS, COMPENSATION AND REIMBURSEMENT

     5.1 Projections and Budgets.

          (a) The parties shall use their best efforts to project expected
revenues and expenses for the first three (3) years of Lakes' operation of the
Project, and the projections, as described in the business plan to be submitted
to the NIGC with this Management Agreement, represent the parties' mutual
expectations.

          (b) Lakes shall prepare an initial operating budget for the first
Fiscal Year of Project operations under its management pursuant to this
Management Agreement and submit the same to Iowa Corp for approval by Iowa Corp
prior to the Commencement Date. Annual operating budgets shall be submitted by
Lakes to Iowa Corp thereafter by no later than thirty (30) days prior to the
commencement of the next Fiscal Year. The proposed initial operating budget and
each subsequent annual operating budget shall be subject to approval or
disapproval within thirty (30) days of submission to Iowa Corp, such approval
not to be unreasonably withheld. Iowa Corp may approve or disapprove of any item
on such proposed budget. The parties recognize that mutually agreeable
adjustments may be made to previously approved operating budgets from time to
time during any Fiscal Year, to reflect the impact of unforeseen circumstances,
financial constraints, or other events. Lakes agrees to keep Iowa Corp informed
regarding any items of revenue or expense that are reasonably anticipated to
cause a material change to the operating budget previously approved by Iowa
Corp. Lakes shall operate the Project and make expenditures in connection
therewith in accordance with such approved operating budget. In the event Iowa
Corp and Lakes are unable to resolve any disputed portions of the proposed
operating budget before commencement of the Fiscal Year, the undisputed portions
of the operating budget shall be deemed adopted and approved, and those line
items in dispute shall be determined by increasing the preceding Fiscal Year's
actual expense for the corresponding line items by an amount determined by Lakes
which does not exceed the increase in the Consumer Price Index for All Urban
Consumers published by the U.S. Bureau of Labor Statistics, U.S. City Average,
all items (1997-98=100), or any successor or replacement index thereto, for the
Fiscal Year prior to the Fiscal Year with respect to which adjustment to the
line item(s) is being calculated. The resulting adjusted operating budget shall
be deemed to be in effect for that Fiscal Year until such time as Iowa Corp and
Lakes have resolved the disputed items.

          (c) Lakes shall prepare an annual capital expenditure budget and
submit such budget to Iowa Corp for approval by Iowa Corp prior to the
Commencement Date. Annual capital expenditure budgets shall be submitted by
Lakes to Iowa Corp thereafter by no later than thirty (30) days prior to the
commencement of each succeeding Fiscal Year. The proposed capital expenditure
budgets shall be subject to approval or disapproval within thirty (30) days of
submission to Iowa Corp for approval, such approval not to be unreasonably
withheld. Iowa Corp may approve or disapprove of any item on such proposed
budget. The parties recognize that mutually agreeable adjustments may be made to
previously approved capital expenditure budgets from time to time during any
budget year, to reflect the impact of unforeseen circumstances, financial
constraints, or


                                      -22-

<PAGE>

other events. Lakes agrees to keep Iowa Corp informed and obtain Iowa Corp's
approval regarding any projects or expenditures that are reasonably anticipated
to cause a material change to the capital expenditure budget previously approved
by Iowa Corp. Lakes shall make capital expenditures in accordance with such
approved capital expenditure budget.

     5.2 Intentionally omitted.

     5.3 Minimum Guaranteed Monthly Payments.

          (a) During the term of this Management Agreement, provided that the
Commencement Date has occurred, the Project shall, subject to the provisions of
Section 5.3(b) below, pay Iowa Corp the sum of Five Hundred Thousand Dollars
($500,000) per month (the "Minimum Guaranteed Monthly Payment"), beginning on
the Commencement Date and continuing for the remainder of the term of the
Management Agreement. The Minimum Guaranteed Monthly Payment shall be payable to
Iowa Corp in arrears on the twentieth (20th) day of each calendar month
following the month in which the Commencement Date occurs, which payment shall
have priority over the Operating Note, any obligations to repay funding provided
by any third party lender in connection with financing the development,
construction equipping of the Project Facilities, and payment of Lakes'
compensation. If the Commencement Date is a date other than the first day of a
calendar month, the first payment will be prorated from the Commencement Date to
the end of the month. The Minimum Guaranteed Monthly Payment shall be prorated
if gaming is conducted at the Gaming Facility for any other partial months.

          (b) Minimum Guaranteed Monthly Payments shall be deducted from any
disbursements of Net Total Revenues received by Iowa Corp under Section 5.5
hereof in any given month; provided, however, that if the Net Total Revenues in
a given month are less than $500,000, Lakes shall advance the funds necessary to
compensate for the deficiency from its own funds (the "Minimum Guaranteed
Payment Advances", which advances shall not accrue interest but shall be
evidenced by an Operating Note in a form agreed to by Iowa Corp and Lakes), and
provided further that the Minimum Guaranteed Monthly Payments shall be reduced
to $10,000 per month for the remaining months in a Fiscal Year after Iowa Corp
has received in such Fiscal Year Total Net Revenue distributions of $1,200,000.
Lakes shall be entitled to recoup any Minimum Guaranteed Payment Advances made
under this subsection from the Net Total Revenues of the Project in succeeding
months during the term hereof, as provided in Section 5.5 hereof (and any
amounts outstanding on account of Minimum Guaranteed Payment Advances at the end
of the term of this Management Agreement shall be immediately due and payable by
Iowa Corp). In no event shall this recoupment payment for Minimum Guaranteed
Payment Advances result in Iowa Corp receiving less than its Minimum Guaranteed
Monthly Payment in any month, and in no event shall Lakes be allowed or entitled
to interest on any Minimum Guaranteed Payment Advances. Minimum Guaranteed
Monthly Payments shall be prorated with respect to any months (or portions
thereof) that Class II Gaming or Class III Gaming is suspended or terminated at
the Gaming Facility, and no Minimum Guaranteed Monthly Payments shall be
required with respect to any months that no Class II Gaming or Class III Gaming
is conducted at the Gaming Facility or accrue subsequent to termination of this
Management Agreement.


                                      -23-

<PAGE>

          (c) Any obligations owing by Iowa Corp under the Operating Note shall
be repaid solely as a Limited Recourse obligation of Iowa Corp without any other
liability or guarantee on the part of Iowa Corp. Except for the Minimum
Guaranteed Monthly Payment to Iowa Corp, repayment of the Operating Note
obligations shall have first priority on any Net Gaming and Net Ancillary
Revenues generated by the Project. Iowa Corp agrees to grant to Lakes a first
priority and perfected security interest, including a Dominion Account
arrangement pursuant to the Dominion Account Agreement (in a form consistent
with the terms of this Management Agreement), on any Net Gaming and Net
Ancillary Revenues of the Project in order to secure repayment of the Operating
Note, and such Operating Note shall also be secured on a first priority and
perfected basis by any Furnishings and Equipment pursuant to the Security
Agreement and by first priority liens in the additional recourse assets
described in the definition of "Limited Recourse."

     5.4 Daily and Monthly Statements. Lakes shall furnish to Iowa Corp's
designated representative financial statements identifying for each day the
Gross Gaming Revenues attributable to the Enterprise's Class II and/or Class III
Gaming on each day that such reports are normally available. Within fifteen (15)
days after the end of each calendar month, Lakes shall provide verifiable
financial statements in accordance with GAAP to Iowa Corp and the Gaming
Commission covering the preceding month's operations of the Enterprise,
including operating statements, balance sheets, income statements and statements
reflecting the amounts computed to be distributed in accordance with Section 5.5
hereof.

     5.5 Distribution of Net Total Revenues.

          (a) All Net Total Revenues shall be disbursed on a monthly basis as
set forth below, paid on the twentieth day of each calendar month for the
preceding month. Such Net Total Revenues shall be disbursed from the Project
Bank Account(s) to the extent available for payment of the following accounts in
the following order of priority:

          (i)  The Minimum Guaranteed Monthly Payment described in Section 5.3
               hereof;

          (ii) All outstanding Minimum Guaranteed Payment Advances and Working
               Capital Advances (and accrued interest thereon) or any other
               amounts owing to Lakes under the Operating Note;

          (iii) Current principal, interest and any other payments due on any
               obligations to repay funding provided by any third party lender
               in connection with financing the development, construction, and
               equipping of the Project Facilities,

          (iv) Management compensation due Lakes under Section 5.5(b) below;
               provide that if the distribution under this subsection in


                                      -24-

<PAGE>

               any month is insufficient to fund such payment in full, the
               unpaid amount shall be deferred and paid under subsection (vi)
               below;

          (v)  Any amounts deferred (including interest on any deferred
               management compensation which interest shall accrue, from the
               date the management compensation is deferred, at the greater of
               the prime interest rate of Chase Manhattan Bank U.S.A., N.A. (or
               any successor bank) plus two percent (2%) or the same rate for
               the financing provided by any third party lender for the
               development, construction and equipping of the Project
               Facilities) under subsections (ii), (iii), (and (iv) above;

          (vi) Any monthly capital replacement or other reserve contributions
               which have been created with the written approval of the Lakes
               and Iowa Corp;

          (vii) Any indemnification or other obligations then owing by Iowa Corp
               to Lakes under any Transaction Document and not paid as Costs of
               Gaming Operations or Costs of Ancillary Operations (provided
               Lakes has provided written notice to Iowa Corp that above amounts
               are owed under the Transaction Documents, and Iowa Corp has not
               disputed the same or such amounts have been determined to be
               owing through an arbitration proceeding under Article 10 hereof);
               and

          (viii) All remaining Net Total Revenues shall be disbursed to Iowa
               Corp at the same time the management compensation is paid to
               Lakes, subject to the rights of the Lakes under the Dominion
               Account Agreement upon the occurrence of a Material Breach by
               Iowa Corp or pursuant to the terms of the Operating Note.

          (b) As compensation for Lakes' management services hereunder, (i) in
the event that this Management Agreement is approved by the NIGC before Class II
and/or Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive thirty percent (30%) of Net Total Revenues for the
prior calendar month less any amounts earned by and due to a Lakes' Affiliate
for any development fees in connection with the Project, and (ii) in the event
that this Management Agreement is approved by the NIGC after Class II and/or
Class III gaming operations are first conducted at the Project's Gaming
Facility, Lakes shall receive thirty percent (30%) of Net Total Revenues for the
prior calendar month less any amounts due to a Lakes' Affiliate for any
consulting fees earned that month in connection with the Project under any
contract between Iowa Corp and the Lakes Affiliate still in effect at that time,
for so long as this Management Agreement shall remain in effect during the term
hereof and as provided for in this Management Agreement. Any amounts owing to
Lakes hereunder shall be Limited Recourse obligations of the Tribe and shall be
subject to the security provisions described in Section 5.3(c) hereof, including
the Dominion Account Agreement and Security Agreement.


                                      -25-

<PAGE>

          (c) Lakes, on behalf of the Project, is responsible for making the Net
Total Revenues disbursements to the appropriate party.

     5.6 Annual Audit. With respect to each Fiscal Year, Iowa Corp shall cause
an audit to be conducted by an independent certified public accountant from a
Big Five accounting firm with more than five (5) years experience in audits of
gaming resort operations selected and approved by Iowa Corp, and on or before
one hundred twenty (120) days after the end of such year, such accounting firm
shall issue a report with financial statements in accordance with GAAP with
respect to the preceding Fiscal Year (or portion of the year in the case of the
first year) operations of the Project, including operating statements, balance
sheets, income statements and statements reflecting the amounts computed to be
distributed in accordance with Section 5.5 hereof, such report to be approved at
an annual meeting to be held at a location mutually agreed upon by the parties.
In addition, upon termination of this Management Agreement in accordance with
its terms, such accounting firm shall conduct an audit, and on or before ninety
(90) days after the termination date, shall issue a report setting forth the
same information as is required in the annual report, in each case with respect
to the portion of the Fiscal Year ending on the termination date. If the Net
Total Revenues or other amounts paid to Iowa Corp or Lakes in accordance with
Section 5.5 above for the relevant period are different from the amount which
should have been paid to such party based on the report prepared by the
accounting firm and based upon the provisions of this Management Agreement, then
to the extent either party received an overpayment, it shall repay and deposit
the amount of such overpayment into the bank account referenced in Section 2.8
(a) hereof within twenty-five (25) days of the receipt by such party of the
accountant's report, and to the extent either party received an underpayment, it
shall receive a distribution from the bank account referenced in Section 2.8 (a)
hereof of the amount of such underpayment within ten (10) days of the receipt by
such party of the accountant's report. Lakes may make adjustment to future
payments to correct a discrepancy if required distributions are not made.

     5.7 Advances for Working Capital. Where amounts in bank accounts
established pursuant to Section 2.8 hereof are insufficient to meet Costs of
Gaming Operation or Costs of Ancillary Operation, during the first six (6)
months after the Commencement Date, Lakes shall advance monies to the Project
sufficient to meet Costs of Gaming Operations and Costs of Ancillary Operations.
Thereafter, Iowa Corp shall advance such monies to the Project sufficient to
meet Costs of Gaming Operations and Costs of Ancillary Operations. If Lakes
makes any advances hereunder ("Working Capital Advances", which advances shall
be evidenced by an Operating Note substantially in a form to be agreed to by
Iowa Corp and Lakes and shall accrue interest, from the date the advances are
made, at the greater of the prime interest rate of Chase Manhattan Bank U.S.A.,
N.A. (or any successor bank) plus two percent (2%) or the same rate for the
financing provided by any third party lender for the development, construction
and equipping of the Project Facilities), Lakes shall be repaid as provided in
Section 5.5 hereof (and any amounts outstanding on account of Working Capital
Advances at the end of the term of this Management Agreement shall be
immediately due and payable by Iowa Corp). Any Working Capital Advances shall be
Limited Recourse obligations of Iowa Corp and shall be subject to the security
provisions described in Section 5.3(c) hereof, including the Dominion Account
Agreement and Security Agreement. Any


                                      -26-

<PAGE>

advances made by Iowa Corp hereunder shall accrue interest at the same rate as
applies to Working Capital Advances made by Lakes.

     5.8 Development and Construction Cost Repayment. The maximum dollar amount
for repayment of development and construction costs for the Project Facilities
shall be $150,000,000. Subject to any applicable Legal Requirements, the parties
may increase the maximum repayment amount by mutual written agreement.

                                    ARTICLE 6
                           TERMINATION/MATERIAL BREACH

     6.1 Termination for Cause. Subject to the provisions of Section 8.2, either
party may terminate this Management Agreement if the other party commits or
allows to be committed a Material Breach (as hereinafter defined) of this
Management Agreement and fails to cure such breach within thirty (30) calendar
days after receipt of a written notice from the non-breaching party identifying
the nature of the Material Breach in specific detail and its intention to
terminate this Management Agreement; provided, however, that if the nature of
such breach (but specifically excluding breaches curable by the payment of
money) is such that it is not possible to cure such breach within thirty (30)
days, such thirty-day period shall be extended for so long as the breaching
party shall be using diligent efforts to effect a cure thereof but no more than
an additional sixty (60) days, and provided further that Lakes shall not be
entitled to an extension of such thirty-day cure period in the event of theft,
embezzlement or willful misconduct with respect to the handling of money or
other property. Termination is not an exclusive remedy for claims of a Material
Breach, and the parties shall be entitled to other rights and remedies as may be
available pursuant to the terms hereof or under applicable law. For purposes of
this Management Agreement, a "Material Breach" is any of the following
circumstances: (i) failure of Lakes to provide Iowa Corp with the monthly
Minimum Guaranteed Monthly Payments pursuant to Section 5.3 hereof, unless
suspended pursuant to the terms of Sections 5.3(b) or 6.4(a) hereof; (ii)
material failure of either party to perform a material obligation hereunder, or
any document or agreement related hereto for reasons not excused under Section
9.6 hereof (Force Majeure); (iii) if any of Lakes' employees commits theft,
embezzlement or crime of moral turpitude and if, after knowledge of such act or,
if disputed, after determination by arbitration under Article 10, Lakes does not
remove such employee from connection with Class II and/or Class III Gaming
operations of the Project; (iv) default under this Management Agreement or the
Operating Note, or any document or agreement related hereto or thereto, and any
default by the Iowa Tribe under that certain Tribal Agreement dated January 27,
2005 executed in favor of Lakes; or (v) any representation or warranty made
pursuant to Section 9.11 or 9.12 hereof proves to be knowingly false or
erroneous in any material way when made or shall fail to be true and correct in
all material respect at any time during the term of this Management Agreement.
Any final notice of termination hereunder shall be in writing detailing the
reason the party considers the Material Breach not to be cured and must be
delivered to the other party before such termination becomes effective.


                                      -27-

<PAGE>

     6.2 Mutual Consent. This Management Agreement may be terminated at any time
upon the mutual written consent and approval of the parties.

     6.3 Involuntary Termination Due to Changes in Law or Tribal-State Compact.
The parties hereby agree to use their best efforts to conduct Class II and/or
Class III Gaming activities in accordance with this Management Agreement and to
ensure that such activities and this Management Agreement conform to and comply
with all applicable laws and a Tribal-State Compact. Iowa Corp and the Iowa
Tribe agree that, except as may be required by federal law, neither Iowa Corp
nor the Iowa Tribe will enact or pass any new ordinances subsequent to the
execution of this Management Agreement that would materially impair the rights
of Lakes under this Management Agreement. The Iowa Tribe and Iowa Corp covenant
and affirmatively state that neither Iowa Corp nor the Iowa Tribe has or will
impose any tax, fee or assessment on Lakes, the Project or its Project
Facilities, this Management Agreement, the Operating Note and any related
security documents and instruments described herein other than the fees and
assessments described in "Costs of Gaming Operation." In the event of any change
in state or federal laws that results in a final determination by the Secretary,
the National Indian Gaming Commission, or a court of competent jurisdiction that
this Management Agreement is unlawful, Iowa Corp, the Iowa Tribe and Lakes shall
use their respective good faith best efforts to amend this Management Agreement
in a mutually satisfactory manner which will comply with the change in
applicable laws and not materially change the rights, duties and obligations of
the parties hereunder. In the event such amendment can not be legally effected
following exhaustion of all such good faith best efforts (including the lapse of
all legal proceedings and appeal periods without favorable results) performance
of this Management Agreement shall be automatically suspended effective upon the
date that performance of this Management Agreement becomes unlawful by such
final determination, and either party shall have the right to terminate such
suspended Management Agreement (except the Notes and Security Provisions, as
defined in Section 6.4 (b)) upon written notice to the other party.

     6.4 Other Rights upon Material Breach; Ownership of Assets and Repayment of
Obligations on Termination.

          (a) Upon the occurrence of any Material Breach or upon the occurrence
of any event or circumstance which with the giving of notice or the passage of
time or both would constitute a Material Breach, Lakes may suspend its
obligation to make any Minimum Guaranteed Payment Advances, until such time as
the default has been cured. Upon the occurrence of any Material Breach, Lakes
may suspend its obligation to make any Working Capital Advances until such time
as the Material Breach has been cured.

          (b) Upon termination, except in connection with Lakes' security
interests in the Net Total Revenues of the Project pursuant to Iowa Corp and the
Iowa Tribe's Limited Recourse obligations under the Transaction Documents (if
not yet satisfied), or any other security interests or liens in any Furnishings
and Equipment and other collateral described in the Transaction Documents, Iowa
Corp will retain full ownership of the Project Facilities, Plans and
Specifications therefor, and the Project and its assets; and Lakes will have no
rights to the Project and its assets or


                                      -28-

<PAGE>

the Project Facilities (or any equipment, books and records, materials or
furnishings therein that were purchased with Costs of Gaming Operations or Costs
of Ancillary Operations) except as to the security interests and liens recited
above or as may be established otherwise by a proceeding pursuant to Article 10
hereof. In the event of any termination (whether voluntary or involuntary), Iowa
Corp shall continue to have the obligation to pay unpaid principal and interest
and other amounts due under this Management Agreement, the Operating Note or any
Transaction Document executed in connection herewith, together with any unpaid
compensation owed to Lakes under Section 5.5(b) hereof (if not yet satisfied),
each of which shall become due and payable on such termination date. Any and all
obligations and provisions contained in this Management Agreement concerning
indemnity obligations or repayment of the Operating Note, and the security
therefore, including the Security Agreement and Dominion Account Agreement,
together with any unpaid compensation owed to Lakes under Section 5.5(b) hereof
and any other amounts owing to Lakes under this Management Agreement or any
other Transaction Documents and the terms and provisions set forth in Articles 9
and 10 hereof excluding Sections 9.21 and 9.22 (collectively, the "Notes and
Security Provisions"), shall survive termination of this Management Agreement.
In the event of termination for any reason, and subject to its rights under the
dispute resolution provisions under Article 10 herein, Lakes shall cooperate
with Iowa Corp in the orderly transition of management of the Project, and shall
provide Iowa Corp or its designee with any and all books, records, documents,
contracts, and all other information relating to the Project Facilities or the
Project, whether such information shall be in electronic, hard copy or any other
form. If at the time of termination Iowa Corp's obligations under the
Transaction Documents remain unsatisfied in full, then Iowa Corp may either pay
the obligations in full, or to the extent economically feasible (as hereinafter
defined), Iowa Corp agrees to continue to operate and maintain the Project
Facilities in accordance with reasonable industry standards, and as to any
portions of the Project Facilities that are no longer economically feasible to
operate, Iowa Corp and the Lakes shall conduct an orderly liquidation of such
assets and any liquidation proceeds (net of reasonable sale costs) shall be
deposited into the Dominion Account and disbursed in accordance with the same
terms and provisions applicable to Gross Total Revenues, provided however that
such liquidation proceeds shall be excluded from Net Total Revenues for purposes
of calculating the management compensation of any Replacement whether under
Section 5.5(b) hereof or otherwise; and Iowa Corp shall keep the Project
Facilities and all related assets insured for the coverages and amounts required
by this Management Agreement and name Lakes as an additional insured, loss payee
and mortgagee, as applicable and provide evidence thereof upon request until all
amounts owing to Lakes have been paid in full, and if any portion of the Project
assets are damaged by any casualty and it is economically feasible for Iowa Corp
to continue to operate such damaged assets, then Iowa Corp shall repair and
reconstruct such operations that were damaged and are to be continued, and any
excess insurance proceeds that are not used to repair and reconstruct the
applicable damaged Project assets shall be deposited into the Dominion Account
and disbursed in accordance with the same terms and provisions applicable to
Gross Total Revenues, provided however that such excess proceeds shall be
excluded from Net Total Revenues for purposes of calculating the management
compensation of any Replacement whether under Section 5.5(b) hereof or
otherwise. As used herein and in Section 6.6(d) hereof, the term "economically
feasible" shall mean that the gross revenues derived from any applicable
operations is in excess of that needed to pay the Costs of Gaming Operations or
Costs of Ancillary Operations, as applicable to the operations in question.


                                      -29-

<PAGE>

          (c) Subject to the provisions of Section 6.1, in the event of
termination of this Management Agreement for any reason prior to the full
repayment to Lakes of any amounts owed to it by Iowa Corp under the Transaction
Documents, including without limitation, the Operating Note, Iowa Corp shall, as
promptly as reasonably possible, appoint a person or entity qualified to manage
the Project Facilities and operate the Project (the "Replacement") and use its
best efforts to obtain approvals of all required Governmental Authorities for
such Replacement, provided the obligation to continue to operate under Section
6.4(b) exists. Iowa Corp agrees to keep full and accurate financial records of
operations of the Project by such Replacement and to allow Lakes to audit such
records at reasonable times prior to full repayment to Lakes of any amounts owed
to it by Iowa Corp under the Transaction Documents, including without
limitation, the Operating Note, and that Iowa Corp's compliance with this
paragraph shall not preclude the Lakes from exercising any of its other rights
and remedies hereunder or any document or agreement related hereto, including,
without limitation, rights under the Operating Note and the Dominion Account
Agreement.

     6.5 Notice of Termination. In the event of a proposed termination pursuant
to this Article, Iowa Corp shall provide notice of the termination to the NIGC
or other appropriate Governmental Authorities within ten (10) days after the
termination.

     6.6 Cessation of either Class II or Class III Gaming at the Gaming
Facility.

          (a) If, during the term of this Management Agreement, either Class II
or Class III Gaming (once legally permitted at the Gaming Facility) cannot be
lawfully conducted at the Gaming Facility by reason of the application of any
legislation or court or administrative agency order or decree adopted or issued
by a governmental entity having the authority to do so, Lakes shall, within
sixty (60) days after such legislation, order or decree becomes effective, elect
to:

               (i) retain Lakes' interest in this Management Agreement and
          suspend both Class II and Class III Gaming operations until such date
          on which both Class II and Class III Gaming at the Gaming Facility
          becomes lawful (during which period the term of the Management
          Agreement will be tolled until both Class II and Class III Gaming at
          the Gaming Facility becomes lawful or the parties mutually agreed
          otherwise, and the period of cessation shall not be deemed to have
          been part of the term of the Management Agreement and the term shall
          be extended by the length of time of the cessation); or

               (ii) retain Lakes' interest in this Management Agreement, suspend
          Class II and Class III gaming operations until such date on which both
          Class II and Class III Gaming at the Gaming Facility becomes lawful
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming at the Gaming Facility becomes lawful or
          the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and with the prior approval of Iowa Corp, which approval
          shall not be unreasonably


                                      -30-

<PAGE>

          withheld, use the Gaming Facility for any other lawful purpose
          pursuant to a use agreement containing terms reasonably acceptable to
          Lakes and Iowa Corp; or

               (iii) terminate both Class II and Class III Gaming operations and
          terminate this Management Agreement.

          Lakes shall give Iowa Corp written notice of Lakes' election within
     such sixty-day period.

          (b) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6 (a)(i) or (ii) above, Lakes shall have the right
(but not the obligation) to commence either Class II or Class III Gaming
operations within sixty (60) days after the date on which both Class II and
Class III Gaming becomes lawful. Lakes may exercise such right by giving Iowa
Corp written notice of such exercise within thirty (30) days after the date on
which both Class II and Class III Gaming becomes lawful. Any reasonable payment
to any third party made during the period during which either Class II or Class
III Gaming is unlawful to preserve or eliminate any leasehold or purchase
contract rights of the Gaming Facility shall be paid by Lakes from Project funds
after mutual approval of Iowa Corp and Lakes as Costs of Gaming Operation or
Cost of Ancillary Operations, as applicable, and reimbursed after both Class II
and Class III Gaming is recommenced.

          (c) If, during the term of this Management Agreement, the Gaming
Facility is damaged by casualty or other occurrence to the extent, as reasonably
determined by Lakes, that either Class II or Class III Gaming cannot be
conducted at the Gaming Facility, Lakes shall elect to:

               (i) retain Lakes' interest in this Management Agreement pending
          repair or reconstruction of the Gaming Facility, suspend all gaming
          operations pending the repair or reconstruction of the Gaming Facility
          (during which period the term of the Management Agreement will be
          tolled until Class III Gaming can be conducted at the Gaming Facility
          or the parties mutually agreed otherwise, and the period of cessation
          shall not be deemed to have been part of the term of the Management
          Agreement and the term shall be extended by the length of time of the
          cessation), and arrange for such repair or reconstruction in the
          manner described in this Section 6.6; or

               (ii) terminate this Management Agreement, such termination to be
          effective on the sixtieth (60th) day after written notice of
          termination shall have been delivered to Iowa Corp.

          Lakes shall give Iowa Corp written notice of Lakes' election under
subsection within sixty (60) days after such casualty or occurrence.

          (d) If Lakes elects to retain its interest in this Management
Agreement under Section 6.6(c)(i) above, Iowa Corp shall be obligated to make
such repairs or reconstruction as the Lakes


                                      -31-

<PAGE>

shall reasonably determine should be made to the Project Facilities (to the
extent that insurance proceeds are available or as otherwise mutually agreed by
Iowa Corp and Lakes), and Lakes shall promptly verify the amount of insurance
proceeds available to pay the cost of repair or reconstruction. If the Lakes
elects to retain its interests under Section 6.6(c)(i) above, Lakes is hereby
granted the authority to submit, adjust and settle, on behalf of Iowa Corp, all
insurance claims associated with the casualty or occurrence; provided, however,
that Lakes shall obtain Iowa Corp's prior written consent (which consent shall
not be unreasonably withheld) to any settlement. Lakes shall provide copies of
all settlement documents to Iowa Corp. If the Lakes does not elect to retain its
interest under Section 6.6(c)(i) above and if Iowa Corp's obligations under the
Transaction Documents are not yet satisfied, then: (a) Iowa Corp shall have the
authority to submit, adjust and settle all insurance claims provided that any
final settlement shall be with the prior written consent of Lakes which will not
be unreasonably withheld, and Iowa Corp shall provide copies of all settlement
documents to the Lakes; (b) to the extent economically feasible (as defined in
Section 6.4(b), Iowa Corp shall have the obligation to continue to operate and
maintain the Project Facilities and Project in accordance with reasonable
industry standards, and as to any portions of the project Facilities and the
Enterprise that are no longer economically feasible to operate, Iowa Corp and
the Lakes shall conduct an orderly liquidation of such assets and any
liquidation proceeds (net of reasonable sale costs) shall be deposited into the
Dominion Account and disbursed in accordance with the same terms and provisions
applicable to Gross Total Revenues, provided however that such liquidation
proceeds shall be excluded from Net Total Revenues for purposes of calculating
the management compensation of any Replacement whether under Section 5.5(b)
hereof or otherwise; (c) Iowa Corp shall repair and reconstruct such operations
that were damaged and are to be continued; and (d) any excess insurance proceeds
that are not used to repair and reconstruct the applicable damaged Project
assets shall be deposited into the Dominion Account and disbursed in accordance
with the same terms and provisions applicable to Gross Total Revenues, provided
however that such excess proceeds shall be excluded from Net Total Revenues for
purposes of calculating the management compensation of any Replacement whether
under Section 5.5(b) hereof or otherwise.

          (e) If Lakes elects to terminate this Management Agreement under this
Section 6.6, the provisions of Section 6.4 above shall apply.

     6.7 Renewal Option.

          The parties by mutual agreement may decide to renew or extend the term
of this Management Agreement. Any such renewal or extension shall only become
effective upon approval by the NIGC and appropriate licensing by the Gaming
Commission.

     6.8 Buy-out Option.

          Following forty-eight (48) months of continuous operation of the
Project's gaming operations by Lakes, Iowa Corp shall have the option to buy out
the Lakes' remaining rights under this Management Agreement for an amount equal
to the present value, using a discount rate which is the greater of (i) two
percent (2%) above the prime interest rate of Chase Manhattan Bank


                                      -32-

<PAGE>

U.S.A., N.A. (or any successor bank) or (ii) or the same rate for the financing
provided by any third party lender for the development, construction and
equipping of the Project Facilities of the Remaining Management Fees (as
hereinafter defined). The term "Remaining Management Fees" shall mean the total
monthly compensation which would have been payable to Lakes under Section 5.5(b)
hereof for the balance of the term of this Agreement, assuming that such monthly
compensation would be the average of the compensation paid to Lakes during the
most recent operating twelve months prior to such buy out.

     6.9 Cumulative Remedies.

          All rights or remedies of either Iowa Corp, the Iowa Tribe or Lakes
under this Management Agreement or any other Transaction Documents shall be
cumulative and may be exercised singularly in any order or concurrently, at such
party's respective option, and the exerciser or enforcement of any such right or
remedy shall neither be a condition to nor bar to the exercise or enforcement of
any other right or remedy.

                                    ARTICLE 7
                              RELEASE AND INDEMNITY

     7.1 Third-Party Claims. Except for claims resulting from the other party's
own gross negligence or willful or criminal misconduct, neither party shall be
entitled to recover from, and expressly releases, the other party, its agents,
directors, officers and employees, from or for any third-party damages, claims,
causes of action, losses and/or expenses of whatever kind or nature, including
attorneys' fees and expenses incurred in defending such claims in connection
with the lawful operation of the Project Facilities and Project in accordance
with the terms of this Management Agreement; and such claims, damages, losses or
expenses shall be considered either Costs of Gaming Operation or Costs of
Ancillary Operations, depending on the circumstances and nature of the claim,
payable from the bank accounts established pursuant to Section 2.8(a) hereof.

     7.2 Indemnity from Lakes. Notwithstanding Section 7.1, Lakes shall
indemnify and hold Iowa Corp and the Iowa Tribe, their agents, directors,
officers and employees, harmless against any and all damages, claims, losses or
expenses of whatever kind or nature, including reasonable attorneys' fees and
expenses incurred in defending such claims, resulting from the gross negligence
or willful or criminal misconduct of Lakes, its officers and directors in
connection with Lakes' performance of this Management Agreement, and no such
damages, losses or expenses shall be paid from the bank accounts established
pursuant to Section 2.8 (a) hereof, nor shall such losses or expenses be
considered Costs of Gaming Operations or Costs of Ancillary Operations.

     7.3 Indemnity from Iowa Corp and the Iowa Tribe. Notwithstanding Section
7.1, Iowa Corp and the Iowa Tribe shall upon request indemnify and hold Lakes,
its agents, directors, officers and employees, harmless against any and all
damages, claims, losses or expenses of whatever kind or nature, including
reasonable attorneys' fees and expenses incurred in defending such claims,
resulting from the gross negligence or willful or criminal misconduct of Iowa
Corp or the Iowa


                                      -33-

<PAGE>

Tribe, their officers, directors, or tribal government employees, in connection
with the Iowa Corp's or the Iowa Tribe's performance of this Management
Agreement, and no such damages, losses or expenses shall be considered Costs of
Gaming Operations or Costs of Ancillary Operations.

     7.4 Indemnity Against Unauthorized Debt and Liabilities. The parties
expressly agree that neither this Management Agreement nor its performance
creates or implies a partnership between the parties or authorizes either party
to act as agent for the other except to the extent expressly provided herein.
Lakes hereby agrees to indemnify and hold Iowa Corp and the Iowa Tribe harmless
from any third-party claims, actions and liabilities, including reasonable
attorneys' fees on account of obligations or debts of Lakes that Lakes is not
authorized to undertake as agent for Iowa Corp or the Iowa Tribe pursuant to the
terms of this Management Agreement. Iowa Corp and the Iowa Tribe likewise agree
to indemnify and hold Lakes harmless from any third-party claims, actions and
liabilities on account of any of the separate obligations or debts of Iowa Corp
or the Iowa Tribe that are not authorized Costs of Gaming Operations or Costs of
Ancillary Operations pursuant to this Management Agreement.

     7.5 Indemnity Agreement. In connection with any indemnity obligations
hereunder, the parties agree they will comply with the terms and conditions set
forth in the Indemnity Agreement in a form agreed to by Iowa Corp, the Iowa
Tribe and Lakes.

                                    ARTICLE 8
                               PARTIES IN INTEREST

     8.1 Payment of Fees and Submission of Information for Background
Investigations.

     Upon execution of this Management Agreement, Lakes shall pay the fees
required by federal and tribal regulations for background investigations for the
"Parties in Interest" as defined herein, and it shall submit the information
required by this Section in duplicate to the National Indian Gaming Commission
and the Gaming Commission and update such information at any time that changes
occur in prior submissions so as to allow complete background investigations. In
no event shall the cost of background investigations under this Section relating
to Gaming Commission regulations exceed $10,000 per individual without the
mutual consent of the parties, which consent shall not be unreasonably be
withheld.

          (a) As used in this Section 8.1, the term, "Parties in Interest"
includes any person or entity with a financial interest in, or having management
responsibility for, this Management Agreement or for which background
investigations are required by 25 C.F.R. Part 537, and any amendments thereto.

          (b) Lakes shall require sufficient information and identification from
each "Party in Interest" to perform a background investigation for the purpose
of determining the suitability of such persons for employment in a Class II
and/or Class III Gaming operation, including, at a minimum, the information
required by the National Indian Gaming Commission as set forth in 25


                                      -34-

<PAGE>

C.F.R. Part 537.

          (c) Without limiting the foregoing, Lakes shall obtain a current set
of fingerprints on each person for whom background investigations are required
by the Gaming Commission and the National Indian Gaming Commission, using forms
supplied by the National Indian Gaming Commission and/or the Gaming Commission,
which shall be referred to the Federal Bureau of Investigation (FBI) Fingerprint
Identification Division or other law enforcement agency designated by the Gaming
Commission.

          (d) The parties hereby agree that a listing of all "Parties in
Interest" as defined in Section 8.1 (a) above shall be submitted to the NIGC.
All such "Parties in Interest", as such listing shall be supplemented from time
to time, shall be required to furnish the information required by this Section
8.1 prior to obtaining such interest. All necessary Governmental Authorities
must approve any change in the "Parties in Interest". Any change of a person
listed as a one of the "Parties in Interest" shall not constitute a change in
persons with a financial interest in or management responsibility for a
management contract.

     8.2 Removal; Divestiture. Should the Gaming Commission or the National
Indian Gaming Commission, by agency action, find that any individual with a
"direct or indirect financial interest" in this Management Agreement (as defined
in 25 C.F.R. Section 502.17, and any amendments thereto) whose prior activities,
criminal record, if any, or reputation, habits, and associations pose a threat
to the public interest, or the tribal interest, or the effective regulation of
gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices and methods and activities in the conduct of gaming or the carrying on
of related business and financial arrangements, or should such agency revoke the
license of such person, and should either agency notify Lakes or Iowa Corp of
such finding or revocation, then Lakes shall require such individual to divest
his or her interest in this Management Agreement and shall immediately remove
such person from all association with gaming operations under this Management
Agreement upon receipt of such notice, provided that any individual subject to
such removal/divesture shall be permitted to be revested and able to associate
with gaming operations in the event the agency action is reversed upon agency
administrative or judicial appeal. In addition, if any individual with "direct
or indirect financial interest" in this Management Agreement (as defined in 25
C.F.R. Section 502.17, and any amendments thereto): (a) has been or is
subsequently convicted of a felony relating to gaming, (b) knowingly or
willfully provided materially false statements to Iowa Corp, the Gaming
Commission or the National Indian Gaming Commission, or refused to respond to
questions from either of such agencies, or (c) attempts to unduly interfere or
unduly influence for his or her gain or advantage any decision or process of
tribal government relating to Class II and/or Class III Gaming and if Lakes
becomes aware of such conflicts or prohibited actions, then Lakes shall notify
Iowa Corp of such event and shall immediately take all necessary steps to cause
such individual to divest his or her interest in Lakes. Any disputed Gaming
Commission action potentially involving removal/divestiture of Lakes is subject
to the provisions of Article 10 and other applicable law or regulations.


                                      -35-

<PAGE>

                                    ARTICLE 9
                                  MISCELLANEOUS

     9.1 Assignment and Subcontractors. The rights and obligations under this
Management Agreement shall not be assigned or subcontracted by any party without
the prior written consent of the other party and without first obtaining prior
approval by the National Indian Gaming Commission or the BIA, if applicable, and
any other necessary regulatory approvals. However, Iowa Corp reserves the right
to assign its rights and obligations under this Management Agreement to a
tribally chartered entity that it wholly owns and controls, and the Lakes
reserves the right to assign its rights and obligations under this Management
Agreement to a wholly owned subsidiary provided that the original Lakes
hereunder, or an affiliated entity reasonably satisfactory to Iowa Corp, remains
obligated hereunder by means of a guaranty or other accommodation reasonably
satisfactory to Iowa Corp, and further provided that Lakes shall have received
prior approval from the National Indian Gaming Commission and any other
necessary regulatory approvals. Any assigning party engaging in a permitted
assignment described above shall and shall cause its assignee to execute and
deliver to the other party such assignment and assumption agreements together
with evidence of the due authorization, execution, delivery and enforceability
of such assignment documents as may be reasonably requested. Other than as
expressly provided herein or in Section 9.2 below, any attempted assignment or
subcontracting without such consent and approval shall be void. Approval of any
assignment or subcontract to any new party must be preceded by a complete
background investigation of the new party as required by Section 8.1. Subject to
the preceding requirements, this Management Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors and
assigns.

     9.2 Change of Control in Ownership Interest. Any Change of Control (as
defined herein) in Lakes shall require prior written consent of Iowa Corp and be
subject to Legal Requirements, or this Management Agreement shall be terminated.
For purposes of this Management Agreement, a "Change of Control" means the
acquisition by any person or affiliated group of persons not presently members
of Lakes of beneficial ownership of 51% or more of membership interest in Lakes.

     9.3 Notices. Any notice, consent or any other communication permitted or
required by this Management Agreement shall be in writing and shall be effective
on the date sent and shall be delivered by personal service, via telecopier with
reasonable evidence of transmission, express delivery or by certified or
registered mail, postage prepaid, return receipt requested, and, until written
notice of a new address or addresses is given, shall be addressed as follows:

     If to Iowa Corp:        Iowa Tribe of Oklahoma
                             a federally-chartered corporation
                             RR 1, P.O. Box 721
                             Perkins, OK 74059
                             Attention: Chairman

     With a copy to:         David McCullough, Esq.


                                      -36-

<PAGE>

                             Doerner, Saundsers, Daniel & Anderson, L.L.P.
                             211 N. Robinson Ave. Suite 501
                             Oklahoma City, OK 73102-7112

     If to the Iowa Tribe:   Iowa Tribe of Oklahoma
                             a federally recognized Indian tribe
                             RR 1, P.O. Box 721
                             Perkins, OK 74059
                             Attention: Chairman

     With a copy to:         David McCullough, Esq.
                             Doerner, Saundsers, Daniel & Anderson, L.L.P.
                             211 N. Robinson Ave. Suite 501
                             Oklahoma City, OK 73102-7112

     If to the Lakes:        Lakes Iowa Management, LLC
                             130 Cheshire Lane
                             Minnetonka, MN 55305
                             Attention: Timothy J. Cope

     With a copy to:         Kevin C. Quigley, Esq.
                             Johnson Hamilton Quigley Twait & Foley PLC
                             W1450 First National Bank Building
                             332 Minnesota Street
                             St. Paul, MN 55101-1314

          and                Brian J. Klein, Esq.
                             Maslon, Edelman, Borman & Brand, LLP
                             3300 Wells Fargo Center
                             90 South Seventh Street
                             Minneapolis, MN 55402-4140

     Copies of any notices shall be given to the Gaming Commission.

     9.4 Amendments. This Management Agreement may be amended only by written
instrument duly executed by all of the parties hereto and with any and all
necessary regulatory approvals previously obtained.

     9.5 Counterparts. This Management Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one and the same agreement.

     9.6 Force Majeure. No party shall be in default in performance due
hereunder if such


                                      -37-

<PAGE>

failure or performance is due to causes beyond its reasonable control, including
acts of God, war, terrorism, fires, floods, or accidents causing damage to or
destruction of the Project Facilities or property necessary to operate the
Facility, or any other causes, contingencies, or circumstances not subject to
its reasonable control which prevent or hinder performance of this Management
Agreement; provided, however, that the foregoing shall not excuse any
obligations of Iowa Corp or its Affiliates to make monetary payments to Lakes as
and when required hereunder or in any related document or agreement.

     9.7 Time is Material. The parties agree that time is of the essence and the
time and schedule requirements set forth in this Management Agreement are
material terms of this Management Agreement.

     9.8 Further Assurances. The parties hereto agree to do all acts and deliver
necessary documents as shall from time to time be reasonably required to carry
out the terms and provisions of this Management Agreement.

     9.9 Severability. In the event that any provision of this Management
Agreement is, by final order of a court of competent jurisdiction or Government
Authority, held to be illegal or void, the validity of the remaining portions of
the Management Agreement shall be enforced as if the Management Agreement did
not contain such illegal or void clauses or provisions, and the parties shall
use their best efforts to negotiate an amendment to this Management Agreement
which will comply with the judicial order and maintain the originally
contemplated rights, duties and obligations of the parties hereunder.

     9.10 Sovereign Immunity. Except for the Resolutions of Limited Waiver
attached hereto as EXHIBIT B AND C and incorporated herein by reference, nothing
in this Management Agreement shall be deemed or construed to constitute a waiver
of sovereign immunity of Iowa Corp and the Iowa Tribe and the only applicable
waivers of sovereign immunity shall be those expressly provided and executed by
the Iowa Corp's and the Iowa Tribe's duly authorized representative and
substantially conforming to the form as approved by the parties. The parties
agree that they will not amend or alter the Resolutions of Limited Waiver which
will in any way lessen the rights of any party as set forth in the Resolutions
of Limited Waiver, including without limitation the covenant therein of Iowa
Corp and the Iowa Tribe to preserve its effective terms in the event of future
changes in its legal status or governance. This Section 9.10 shall survive
termination of this Management Agreement, regardless of the reason for the
termination.

     9.11 Representations and Warranties of Lakes. The Lakes hereby represents
and warrants as follows:

          (a) This Management Agreement and all other agreements contemplated
     hereby have been duly authorized, executed and delivered by Lakes and, when
     approved by necessary Governmental Authorities as set forth (where
     applicable), will constitute a valid and binding obligation, enforceable
     against Lakes in accordance with its terms.


                                      -38-

<PAGE>

          (b) The execution and delivery of this Management Agreement and all
     other agreements contemplated hereby, the performance by Lakes of its
     obligations hereunder or thereunder and the consummation by Lakes of the
     transactions contemplated hereby will not violate any contract or agreement
     to which Lakes or any of its affiliated companies is a party or any law,
     regulation, rule or ordinance or any order, judgment or decree of any
     federal, state, tribal or local court or require any regulatory approval
     beyond those contemplated herein.

          (c) Lakes has the full legal right, power and authority and has taken
     all action necessary to enter into this Management Agreement, to perform
     its obligations hereunder, and to consummate all other transactions
     contemplated by this Management Agreement.

     9.12 Representations and Warranties of Iowa Corp and the Iowa Tribe. Iowa
Corp and the Iowa Tribe hereby represent and warrant as follows:

          (a) Iowa Corp is a federally-chartered corporation, created pursuant
     to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat.
     1967), whose federal charter was issued on January 4, 1938 by the Secretary
     of the Interior and ratified by the Iowa Tribe on February 5, 1938; and the
     Iowa Tribe is a federally recognized Indian Tribe duly organized under the
     Constitution and laws of the Iowa Tribe and the United States, and is
     eligible to conduct gaming within the meaning of IGRA.

          (b) Iowa Corp, under its corporate charter, and the Iowa Tribe, under
     its Constitution, have full legal right, power and authority and has taken
     all official action necessary, to the extent each is a party to the
     agreement or document, (i) to enter into this Management Agreement and
     authorize execution and deliver of this Management Agreement, the Operating
     Note, Dominion Account Agreement, Security Agreement, Indemnity Agreement
     and any and all other documents and agreements related thereto or
     contemplated thereby (collectively, the "Transaction Documents"), (ii) to
     perform its obligations hereunder and thereunder, and (iii) to consummate
     all other transactions contemplated by this Management Agreement and the
     other Transaction Documents.

          (c) This Management Agreement, the Operating Note, and the other
     Transaction Documents, when executed and delivered by Iowa Corp and the
     Iowa Tribe, to the extent each is a party to the agreement or document and
     approved by necessary Governmental Authorities, will constitute a valid,
     binding and perfected obligations, enforceable against Iowa Corp and the
     Iowa Tribe in accordance with their terms.

          (d) The execution and delivery of this Management Agreement, the
     Operating Note, and the other Transaction Documents, and the performance by
     Iowa Corp and the Iowa Tribe of its obligations hereunder to the extent
     each is a party to the agreement or document, and the consummation by Iowa
     Corp and the Iowa Tribe of the transactions contemplated


                                      -39-

<PAGE>

     hereby will not violate any contract or agreement to which Iowa Corp or the
     Iowa Tribe is a party, law, regulation, rule or ordinance or any order
     judgment or decree of any federal, state, tribal or local court, or require
     any approval by Governmental Authorities beyond those contemplated herein.

          (e) Neither Lakes, the Project, the Project Facilities nor the
     transaction(s) between the parties contemplated by this Management
     Agreement, the Operating Note, and any related security documents and
     instruments described herein are now, or at any time during the term of
     this Management Agreement will be, subject to any tribal tax of any sort
     other than the fees and assessments described in the definition of "Costs
     of Operations."

          (f) The Iowa Tribe is legally permitted to conduct Class II Gaming
     (and Class III Gaming in the event of a Compact) activities in the State
     under all Legal Requirements, and the Gaming Facility Site for the Project
     constitutes "Indian lands" upon which the Iowa Tribe may legally conduct
     gaming under IGRA.

          (g) Neither Iowa Corp, the Iowa Tribe or any of their Affiliates has
     enacted any law, ordinance, rule or regulation impairing the rights or
     obligations of Iowa Corp, the Iowa Tribe or Lakes under this Management
     Agreement or under any Transaction Documents contemplated hereby.

          (h) Prior to the Commencement Date, and except as permitted by Section
     2.23 hereof, Iowa Corp and the Iowa Tribe will not cause or voluntarily
     permit any lien or encumbrance to be created on the Project Facilities or
     the Gaming Facility Site.

          (i) The Iowa Tribe has entered into an agreement with Lakes or its
     Affiliate which (i) confirms that all gaming and related project facilities
     of the Iowa Tribe will be owned and operated by Iowa Corp or another
     subsidiary of the Iowa Tribe, (ii) grants Lakes or its Affiliate the first
     right of refusal to manage any gaming projects owned and operated by Iowa
     Corp or another subsidiary of the Iowa Tribe under the same terms and
     conditions described in this Management Agreement unless otherwise agreed
     to in writing by the parties or their Affiliates, and (iii) contains
     representations, warranties and covenants substantially similar to those
     contained in Articles 9 and 10 hereof insofar as applicable.

     9.13 Governing Law. This Management Agreement has been negotiated, made and
executed at Iowa Corp's office located in the State of Oklahoma and shall be
governed by and construed in accordance with the laws of the State of Oklahoma,
without regard to its conflict of laws provisions, and applicable federal laws.

     9.14 Entire Agreement. This Management Agreement, including all exhibits,
represents the entire agreement between the parties and supersedes all prior
agreements relating to management of gaming and ancillary operations conducted
by Iowa Corp at the Project Facilities.

     9.15 Representatives of Iowa Corp. Iowa Corp shall furnish to Lakes a list
of the authorized representatives who are empowered to act on behalf of Iowa
Corp for the purposes of


                                      -40-

<PAGE>

this Management Agreement and Iowa Corp shall keep such list current. Iowa Corp
hereby acknowledges and agrees that to the extent any authorization, consent or
other approval of Iowa Corp is required under this Management Agreement or any
related Transaction Documents and Iowa Corp shall provide to Lakes a resolution
naming any individual or individuals authorized to represent the Iowa Corp for
purposes or for the purpose of the operation and performance of Management
Agreement and related Transaction Documents, then Lakes shall be entitled to
rely on all decisions, authorizations, consents, and approvals provided by such
individual or individuals, as applicable, until such time as Iowa Corp shall
deliver to Lakes an additional tribal resolution revoking or otherwise modifying
such authority.

     9.16 Limitations of Liability. Lakes expressly agrees that Iowa Corp's and
the Iowa Tribe's total aggregate liability for damages for breach of the
Management Agreement shall be limited in accordance with the Resolutions of
Limited Waiver attached hereto as EXHIBIT B AND C and incorporated herein by
reference. Iowa Corp and the Iowa Tribe shall bear no liability for further
damages.

     9.17 Approvals. Unless otherwise provided herein, all approvals or consents
required by either party hereunder shall not be unreasonably withheld or
delayed. Unless otherwise provided herein, approval by Iowa Corp's Board of
Directors or its duly authorized representative(s), and by the Iowa Tribe's
Business Committee, shall be deemed to constitute approval by Iowa Corp and the
Iowa Tribe respectively; and approval by the Chief Executive Officer of the
Lakes shall be deemed to constitute approval by the Lakes.

     9.18 Best Efforts. Except as otherwise provided herein, Lakes and Iowa Corp
and the Iowa Tribe shall use their best efforts to perform and fulfill their
obligations under this Management Agreement in the manner required by this
Management Agreement.

     9.19 Request for NIGC Approval. The parties specifically request that the
NIGC, or the Secretary where appropriate, approve this Management Agreement and
the other Transaction Documents, if required, or declare that such approval is
not required.

     9.20 Non-disclosure. The parties agree not to divulge to third parties the
terms of this Management Agreement or any other proprietary or confidential
information exchanged between the parties pursuant to this Management Agreement,
unless (i) the information is required to be disclosed pursuant to judicial
order or Legal Requirements, (ii) the information is at the time of disclosure
already in the public domain, or (iii) to the extent required in order to obtain
financing. This prohibition shall not apply to disclosures by either party to
their attorneys, accountants, or other professional advisers. In situations
where disclosure of the terms of this Management Agreement to regulatory,
governmental or judicial entities is required by law or regulations, the parties
will make reasonable efforts to secure confidential treatment of the economic
terms of this Management Agreement by such entities; provided, however, this
disclosure restriction shall not prohibit Lakes making any SEC filings it deems
legally necessary. The parties agree to consult with each other and cooperate
regarding any press releases regarding this Management Agreement and the
relationships described herein.


                                      -41-

<PAGE>

     9.21 Other Business Opportunities. During the term of this Management
Agreement, or until Lakes is repaid in full on the Operating Note, whichever is
later, Iowa Corp and the Iowa Tribe agree that, subject to all Legal
Requirements, Iowa Corp and the Iowa Tribe may pursue other gaming development
opportunities within Iowa Indian Country; provided Lakes is granted the right of
first refusal to participate with Iowa Corp or the Iowa Tribe upon the terms and
conditions proposed by Iowa Corp or the Iowa Tribe, with prompt response by
Lakes required, but in no event later than thirty (30) days after written notice
from Iowa Corp or the Iowa Tribe. In the event that Lakes declines to
participate with Iowa Corp or the Iowa Tribe upon such terms and conditions,
Iowa Corp and the Iowa Tribe shall have the right to pursue such opportunity but
may not offer to an unrelated third party terms and conditions more favorable
than those offered to Lakes. If Iowa Corp or the Iowa Tribe does not enter into
a signed agreement with such unrelated third party regarding the other
commercial, gaming and economic development opportunity which has been declined
by Lakes within one (1) year of such declination, then Lakes' right of first
refusal granted herein is reinstated for that opportunity.

     9.22 Use of Trade Marks and Trade Names. To assure that Iowa Corp can
continue operation of the Project Facilities without disruption in the event
that this Management Agreement is terminated or not renewed, Lakes agrees that
it will not use any trade mark or trade name to identify any portion of the
Project Facilities or services offered within the Project Facilities unless such
trade mark or trade name is registered in the name of Iowa Corp.

     9.23 Recitals. The recitals at the beginning of this Management Agreement
are true and are incorporated by reference herein.

                                   ARTICLE 10
                               DISPUTE RESOLUTION

     10.1 Disputes Between the Enterprise and Patrons. Disputes that arise
between the Project and any patron of the Project Facilities shall be resolved
in accordance with the Tribal-State Compact and tribal ordinances, if
applicable.

     10.2 Disputes Between the Project and Project Employees. Iowa Corp and
Lakes shall jointly develop an employee dispute resolution policy, and Lakes, as
agent of Iowa Corp, shall ensure that the Project's general manager shall
implement and administer the employee dispute resolution policy after its
adoption.

     10.3 Disputes Between Iowa Corp, the Iowa Tribe and Lakes. Disputes between
Iowa Corp, the Iowa Tribe and Lakes with respect to this Management Agreement,
the Operating Note, or any other Transaction Documents, or a party's performance
hereunder or thereunder, shall be resolved by the following dispute resolution
process and pursuant to the Resolutions of Limited Waiver attached hereto as
Exhibit B and C.


                                      -42-

<PAGE>

     (a) The parties shall use their best efforts to settle the dispute. To this
effect, they shall consult and negotiate with each other in good faith and,
recognizing their mutual interests, attempt to reach a just and equitable
solution satisfactory to both parties.

     (b) If the parties do not reach such solution within a period of ten (10)
days, then, upon notice by either party to the other, all disputes shall be
settled by arbitration administered by the American Arbitration Association in
accordance with the provisions of its Commercial Arbitration Rules in effect at
the time of submission; except that: (a) the question whether or not a dispute
is arbitrable shall be a matter for binding arbitration by the arbitrators, such
question shall not be determined by any court and, in determining any such
question, all doubts shall be resolved in favor of arbitrability; and (b)
discovery shall be permitted in accordance with the Federal Rules of Civil
Procedure, subject to supervision as to scope and appropriateness by the
arbitrators. Unless the parties otherwise agree to in writing, arbitration
proceedings shall be held in Oklahoma City, Oklahoma.

     (c) The arbitration proceedings shall be conducted before a panel of three
neutral arbitrators, all of whom shall be currently licensed attorneys, actively
engaged in the practice of law for at least ten (10) years, one of which shall
have five (5) years of experience in federal Indian law, and one of which shall
have five (5) years of experience in the gaming industry. The arbitrator
selected by the claimant and the arbitrator selected by respondent shall, within
ten (10) days of their appointment, select a third neutral arbitrator. In the
event that they are unable to do so, the parties or their attorneys may request
the American Arbitration Association to appoint the third neutral arbitrator.
Prior to the commencement of hearings, each of the arbitrators appointed shall
provide an oath or undertaking of impartiality. Iowa Corp and the Iowa Tribe
further agree that any arbitration proceeding held in connection with any
dispute with respect to the this Management Agreement, the Operating Note, or
any other Transaction Document may be consolidated with any other arbitration
proceeding involving Lakes or its Affiliates and any of Iowa Corp or the Iowa
Tribe's Affiliates.

     (d) The arbitration award shall be in writing signed by each of the
arbitrators, and shall state the basis for the award. The arbitration award
shall be set forth in reasonable detail as to its findings of fact and law, and
basis of determination of award form and amount. In connection with any
arbitration award, the arbitrators shall be empowered to take the actions and
enforce the judicial remedies described in Paragraph 5 of the Resolutions of
Limited Waiver; provided however, that although the arbitrators may award
damages in the event Iowa Corp, the Iowa Tribe or the Gaming Commission do not
to comply with the award, the arbitrators may not require Iowa Corp, the Iowa
Tribe or the Gaming Commission to take or modify any governmental legislative
decision or action which the arbitrators have determined has resulted in the
dispute between the parties and is contrary to the parties rights, liabilities
or obligations under this Management Agreement, the Operating Note, or any other
Transaction Document ("Specific Performance Restriction"). Provided further,
that: (a) should the arbitrators determine that there has been an intentional
bad faith violation of a party's rights under this Management Agreement or any
other Transaction Documents by Iowa Corp, the Iowa Tribe or Gaming Commission,
and if Iowa Corp, the Iowa Tribe or the Gaming


                                      -43-

<PAGE>

Commission do not reverse such intentional bad faith violation through
governmental legislative decision or action within thirty (30) days after the
being notified by the arbitrators of such determination, then the arbitrators
shall award one-and-half (1 1/2) times damages to Lakes for damages suffered as
a consequence of Iowa Corp's, the Iowa Tribe's or Gaming Commission's
intentional bad faith violation; and (b) such Specific Performance Restriction
shall not prevent Lakes from enforcing the Operating Note, the Security
Agreement, the Dominion Account Agreement, nor from realizing on collateral
encumbered thereby.

     (e) Except to the extent such enforcement will be inconsistent with a
specific provision of this Agreement, arbitration awards made pursuant to this
Article 10 shall be enforceable in federal court under Title 9 of the United
States Code and any applicable tribal, federal or state law governing the
enforcement of arbitration awards. In addition to any basis for appeal of an
arbitration award stated in Title 9 of the United States Code or any applicable
law governing the enforcement of arbitration awards, either party hereto may
appeal an arbitration award on the basis that the arbitrator or arbitrators
incorrectly decided a question of law in making the award, or the award was made
in an arbitrary or capricious manner or in manifest disregard of the factual
evidence.

     (f) Any party hereto, without having to exhaust any tribal remedies first,
shall have the right to seek and obtain a court order from a court having
jurisdiction over the parties requiring that the circumstances specified in the
order be maintained pending completion of the arbitration proceedings, to the
extent permitted by applicable law.

     (g) Judgment on any arbitration award may be entered in any court having
jurisdiction over the parties. The arbitrators shall not have the power to award
punitive, exemplary or consequential damages, or any damages excluded by or in
excess of any damage limitations expressed in this Agreement.

     (h) Iowa Corp and the Iowa Tribe hereby expressly waive, and also waive its
right to assert, sovereign immunity and any and all defenses based thereon with
respect to disputes between Iowa Corp and the Iowa Tribe and Lakes with respect
to this Management Agreement, the Operating Note, or any other Transaction
Documents, or a party's performance hereunder or thereunder; and Iowa Corp and
the Iowa Tribe hereby consent to (i) binding arbitration under the Commercial
Arbitration Rules of the American Arbitration Association, and (ii) judicial
proceedings in or before the United States District Court for the Northern
District of Oklahoma, or if that court determines it is without jurisdiction,
then to the courts of the State of Oklahoma and all courts to which an appeal
therefrom may be available, but solely to compel, enforce, modify or vacate any
arbitration award.

     (i) To the extent lawful in connection with any such dispute, Iowa Corp and
the Iowa Tribe expressly waive the application of the doctrines of exhaustion of
tribal remedies or comity that might otherwise require that a claim be heard
first in tribal court or other tribal forum of the Iowa Tribe.


                                      -44-

<PAGE>

     (j) The parties agree that: (1) in the event that a dispute submitted to
arbitration under this section involves the right of Lakes to continue to
receive compensation under Section 5.5 hereof, or (2) in the event that Lakes
appeals an agency decision under Section 8.2 for removal/divestiture, then any
compensation which is asserted to be due to Lakes during such dispute shall, if
not paid to Lakes, be deposited into an interest bearing escrow account with the
entity that is designated as the "Depository" under the Dominion Account
Agreement and Lakes shall be granted a security interest in said escrow account
which interest is contingent, as follows: such escrow funds shall be released to
Lakes upon an arbitration award being issued in its favor or on the date the
agency action under Section 8.2 is reversed by agency administrative or judicial
appeal; provided that upon final conclusion of such arbitration or agency
administrative or judicial appeal, any portion of such escrowed funds not
expressly awarded to Lakes shall be immediately released unconditionally to Iowa
Corp.

        [Rest of page left blank intentionally; signature page to follow]


                                      -45-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Management Agreement
as of the above written date.

Iowa Tribe of Oklahoma                  Lakes Iowa Management, LLC
a federally-chartered corporation


By: /s/ Phoebe O'Dell                   By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Phoebe O'Dell                     Timothy J. Cope
      -------------------------------   Its: President and Chief Financial
Its:  Chairperson                       Officer
     --------------------------------

ATTEST:


By: /s/ Eugene Big Soldier Jr
    ---------------------------------
Name: Eugene Big Soldier Jr
      -------------------------------
Its: Tribal Secretary
     --------------------------------


Iowa Tribe of Oklahoma
a federally-recognized Indian tribe


By: /s/ Phoebe O'Dell
    ---------------------------------
Name: Phoebe O'Dell
      -------------------------------
Its: Chairperson
     --------------------------------

ATTEST:


By: /s/ Eugene Big Soldier Jr
    ---------------------------------
Name: Eugene Big Soldier Jr
      -------------------------------
Its: Tribal Secretary
     --------------------------------

Approved pursuant to 25 U.S.C.
Section 2711

National Indian Gaming Commission


By:
    ---------------------------------
Print Name: Philip N. Hogen
Its Chairman


                                      -46-

<PAGE>

                                LIST OF EXHIBITS

<TABLE>
<S>         <C>
Exhibit A   Legal Description of Gaming Facility Site

Exhibit B   Resolution of Limited Waiver of Immunity from Suit - Iowa Corp

Exhibit C   Resolution of Limited Waiver of Immunity form Suit - Iowa Tribe
</TABLE>


                                      -47-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.139
<SEQUENCE>74
<FILENAME>c92713exv10w139.txt
<DESCRIPTION>OPERATING NOTE (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.139

                                 OPERATING NOTE
                                  (NEW PROJECT)

                                                           Minnetonka, Minnesota
                                                                January 27, 2005

     FOR VALUE RECEIVED, IOWA TRIBE OF OKLAHOMA ("MAKER"), A FEDERALLY-CHARTERED
CORPORATION, CREATED PURSUANT TO SECTION 3 OF THE OKLAHOMA INDIAN WELFARE ACT
OF JUNE 26, 1936 (49 STAT. 1967), UNDER A FEDERAL CHARTER ISSUED TO THE IOWA
TRIBE OF OKLAHOMA ("IOWA TRIBE"), A FEDERALLY RECOGNIZED INDIAN TRIBE, promises
to pay to the order of LAKES IOWA MANAGEMENT, LLC, A MINNESOTA LIMITED LIABILITY
COMPANY ("LENDER"), in the United States of America, in immediately available
funds, at such place as the holder hereof may from time to time designate, or in
the absence of such designation, at the office of the Lender, 130 Cheshire Lane,
Minnetonka, Minnesota 55305, the principal sum of the aggregate unpaid principal
amount of all "Guaranteed Minimum Payment Advances" and "Working Capital
Advances" made to Maker pursuant to Sections 5.3(b) and 5.7, respectively, of
the Management Agreement for a Gaming Facility and Related Ancillary Facilities
dated January 27, 2005 entered into between the parties for a new project (the
"Management Contract"), plus interest on any Working Capital Advances from the
date of such advances, in like money, in accordance with the following terms and
provisions:

     1. Defined Terms. Capitalized terms used herein and not defined shall have
the meanings given them in the Management Contract.

     2. Interest. No interest shall accrue on any Minimum Guaranteed Payment
Advances. Each Working Capital Advance as and when made pursuant to the terms of
the Amended Memorandum Agreement shall bear interest at the Interest Rate, as
described herein, from and including the date the proceeds of such Working
Capital Advance are advanced (such date the "Funding Date" of such Advance)
through the date of payment.

     3. Repayment; Limited Recourse Obligations. The obligation of Maker to
repay the funds advanced shall be a Limited Recourse obligation, as defined in
the Management Contract, and secured by the real and personal property described
therein. Principal and interest, as applicable, on each Minimum Guaranteed
Payment Advance and Working Capital Advance (each an "Advance") shall be repaid
in accordance with the terms and provisions set forth in the Management
Contract. The Maker shall have the right to prepay all or any part of this
Operating Note at any time without penalty or premium provided any partial
payment is at least $10,000 or an even multiple thereof, but any such prepayment
shall be applied to the installments of principal due hereunder in the inverse
order of maturity. In the event that the term of the Management Contract is
tolled under Section 6.6 thereof, Maker's obligation to make the monthly
installment payment hereunder shall be likewise tolled until the tolling under
Section 6.6 ceases (except to the extent that the Project shall receive any
business interruption insurance proceeds in connection with tolling under
Section 6.6, in which case Maker's obligation to make monthly installment
payments shall not be tolled).

     4. Interest Rate. The Interest Rate means an interest rate equal to the
greater of the prime rate of Chase Manhattan Bank, N.A. (or any successor Bank
by acquisition or merger) plus


                                       -1-

<PAGE>

two percent (2%) per annum or the same rate as the financing provided by any
third party lender for the development, construction and equipping of the
Project Facilities in place at the time of the advance, fixed as of the first
business day of each calendar month. Interest at the foregoing rate shall accrue
and shall be payable as a Limited Recourse obligation as provided in the
Management Contract. Interest shall be computed for the actual number of days
elapsed on the basis of a year consisting of 360 days. It is intended that the
rate of interest hereon shall never exceed the maximum rate, if any, which may
be legally charged on the Loan evidenced by this Operating Note ("Maximum
Rate"), and if the provisions for interest contained in this Operating Note
would result in a rate higher than the Maximum Rate, interest shall nevertheless
be limited to the Maximum Rate and any amounts which may be paid toward interest
in excess of the Maximum Rate shall be applied to the reduction of principal,
or, at the lawfully exercised option of the Lender, returned to Maker.

     5. Record of Amounts Owed. Maker hereby authorizes Lender to record on its
books all Advances made to the Maker and all payments of principal amounts and
interest in respect of such Advances, which shall be presumptive evidence as to
the outstanding principal amount of all Advances; provided, however, that the
failure to make such notation with respect to any Advance or payments shall not
limit or otherwise affect the obligations of Maker.

     6. Default; Acceleration. If any Event of Default occurs, then the
outstanding principal amount of this Operating Note, any interest accrued
thereon from time to time, and any other sums then remaining unpaid hereunder,
at the option of the holder hereof and without notice, shall become immediately
due and payable and Lender may exercise any other rights or remedies available
under any Transaction Documents or applicable law. Failure to exercise any such
option shall not constitute a waiver of the right to exercise the same at a
later time or in the event of any subsequent default. The following shall
constitute "Events of Default" for purposes of this Operating Note:

     (a)  Failure by Maker to make timely payments of any of the installments of
          principal, interest or other amounts hereunder, which is not cured
          within ten (10) days after written notice of such nonpayment is
          delivered to Maker; or

     (b)  The occurrence of any event of default under any credit facility, term
          loan or any other agreement entered into by Maker for the use of
          borrowed funds, with respect to which the creditor has recourse to
          assets of the Project, and with respect to which (i) the creditor has
          accelerated the maturity of the indebtedness of Maker to such
          creditor, or (ii) the creditor has initiated action to collect such
          indebtedness; or

     (c)  A material default by Maker in the performance by Maker of any of its
          covenants or commitments under the Management Contract or any
          Transaction Document or under any other agreement entered into with or
          in favor of Lender or any Affiliate of Lender, or a material default
          by Maker's Affiliate under any agreement executed by an Affiliate of
          Maker in favor of Lender or any Affiliate of Lender which default is
          not cured by Maker or its Affiliate as applicable within the
          applicable cure period thereunder after written notice of default is
          delivered to Maker or its Affiliate; provided, however, that if the
          nature of such default (but specifically excluding defaults curable by
          the payment of money) is such that it is not possible to cure such


                                       -2-

<PAGE>

          default within the cure period, such period shall be extended for so
          long as the breaching party shall be using diligent efforts to effect
          a cure thereof but no more than an additional sixty (60) days; or

     (d)  The Management Contract shall be terminated by either the Maker or the
          Lender; or

     (e)  Any representation or warranty given to the Lender by the Maker (or
          any of its representatives) in connection with entering into the
          Management Contract or the other Transaction Documents and/or any
          borrowing thereunder, or given by an Affiliate of Maker in connection
          with any agreement executed by an Affiliate of Maker in favor of
          Lender or any Affiliate of Lender, or required to be furnished under
          the terms thereof, shall prove untrue or misleading in any material
          respect (as determined by the Lender in the exercise of its reasonable
          judgment) as of the time when given or shall fail to be true and
          correct in all material respects at any time during the term of the
          agreement; or

     (f)  There shall have been filed or commenced against Maker an involuntary
          case under any applicable bankruptcy, insolvency or other similar law
          now or hereafter in effect or an action shall have been commenced to
          appoint a receiver, liquidator, assignee, custodian, trustee,
          sequestrator (or similar official) of Maker or for any substantial
          part of Maker's property or for the winding up or liquidation of
          Maker's affairs and such action or proceeding shall not have been
          dismissed within sixty (60) days; or

     (g)  Maker shall commence a voluntary case under any applicable bankruptcy,
          insolvency or other similar law now or hereafter in effect; or shall
          consent to the entry of an order for relief in an involuntary case
          under any such law; or shall consent to the appointment of or taking
          possession by a receiver, liquidator, assignee, trustee, custodian,
          sequestrator (or other similar official) of Maker or of any
          substantial part of the Maker's property; or shall make any general
          assignment for the benefit of creditors; or shall take any action in
          furtherance of any of the foregoing or shall be insolvent.

     7. Security. This Operating Note shall be secured by a security interest in
the Collateral granted by Maker to Lender pursuant to the Management Contract
and the other Transaction Documents, including the Dominion Account Agreement.

     8. Presentment Waiver. Maker, all endorsers and guarantors hereby waive to
the fullest extent permitted by law presentment, demand, protest, notice of
protest, notice of dishonor and notice of any other kind (except as specifically
required herein) in connection with this Operating Note.

     9. Remedies Cumulative. The remedies of the Lender, as provided in this
Operating Note and any other related documents, shall be cumulative and
concurrent and may be pursued singularly, successively or together, at the sole
discretion of the Lender, and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right or remedy shall in no


                                       -3-

<PAGE>

event be construed as a waiver or release thereof.

     10. Business Purpose. MAKER DOES HEREBY ATTEST, CERTIFY, REPRESENT, WARRANT
AND COVENANT THAT NO COLLATERAL SECURITY WITH RESPECT TO THIS OPERATING NOTE IS
USED OR IS INTENDED TO BE USED BY MAKER AS A DWELLING OR AS A HOME AND THAT THE
EXTENSION OF CREDIT AND PROCEEDS OF THIS TRANSACTION ARE SOLELY TO BE USED FOR
COMMERCIAL AND BUSINESS PURPOSES, AND NOT FOR AGRICULTURAL, PERSONAL, CONSUMER,
FAMILY OR HOUSEHOLD PURPOSES, AND MAKER ACKNOWLEDGES THAT THIS ATTESTATION,
CERTIFICATION, REPRESENTATION, WARRANTY AND COVENANT HAS BEEN RELIED UPON BY THE
LENDER.

     11. Collection Expenses. Maker agrees to pay all costs and out-of-pocket
expenses (including, but not limited to, reasonable attorneys' fees and
expenses) incurred by Lender in connection with the collection or enforcement of
this Operating Note.

     12. Applicable Law. This Operating Note shall be construed in accordance
with and governed by the internal laws and decisions of the State of Oklahoma,
without giving effect to its choice of law principles.

     13. Savings Clause. The parties hereto intend and believe that each
provision of this Operating Note comports with all applicable local, state and
federal laws and judicial decisions. However, if any provision or provisions, or
if any portion of any provision or provisions of this Operating Note is found by
a court of law to be in violation of any applicable local, state or federal
ordinance, statute law, administrative or judicial decision, or public policy,
and if such court should declare such portion, provision or provisions of this
Operating Note to be illegal, invalid, unlawful, void or unenforceable as
written, then it is the intent of all parties hereto that such portion,
provision or provisions shall be given force to the fullest possible extent that
it or they are legal, valid and enforceable, that the remainder of this
Operating Note shall be construed as if such illegal, invalid, unlawful, void or
unenforceable portion, provision or provisions were not contained herein, and
that the rights, obligations and interest of Maker and holder hereof under the
remainder of this Operating Note shall continue in full force and effect.

     14. Amendment. No modification, waiver, amendment, discharge or change of
this Operating Note shall be valid unless the same is in writing and signed by
the party against which the enforcement of such modification, waiver, amendment,
discharge or change is sought.

     15. Time is Material. Time is hereby declared to be of the essence of this
Operating Note and of every part hereof, and the time and schedule requirements
set forth herein are material terms of this Operating Note.

     16. Successors and Assigns. This Operating Note shall inure to the benefit
of and shall be binding on the parties hereto and their respective successors
and assigns. Any reference to the Lender shall be deemed to include and apply to
every subsequent holder of this Operating Note.


                                       -4-

<PAGE>

     17. Notice. Any notice, demand, request or other communication which any
party hereto may be required or may desire to give hereunder shall be given in
accordance with Section 9.3 of the Management Contract.

     18. Dispute Resolution/Limited Waiver of Sovereign Immunity. Maker and
Lender expressly agree that any dispute in connection with this Operating Note
shall be subject to the dispute resolution procedures and the limited waiver of
sovereign immunity contained in the Management Contract and the Resolution of
Limited Waiver attached thereto as Exhibit B, the terms of which are hereby
incorporated by reference thereto.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                       -5-

<PAGE>

IN WITNESS WHEREOF, Maker has caused this Operating Note to be executed under
seal and delivered as of the date first above written.

                                        MAKER:

                                        IOWA TRIBE OF OKLAHOMA
                                        A FEDERALLY-CHARTERED CORPORATION


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Title: Chairperson
                                               ---------------------------------


                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr
                                              ----------------------------------
                                        Title: Tribal Secretary
                                               ---------------------------------

              [Signature page to Iowa Operating Note - New Project
                     in favor of Lakes Iowa Management, LLC]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.140
<SEQUENCE>75
<FILENAME>c92713exv10w140.txt
<DESCRIPTION>DOMINION ACCOUNT AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.140

                           DOMINION ACCOUNT AGREEMENT
                        (Lakes Management - New Project)

     THIS DOMINION ACCOUNT AGREEMENT, (the "Agreement"), dated effective as of
January 27, 2005 (the "Effective Date'"), between Iowa Tribe of Oklahoma, a
federally-chartered corporation ("Iowa Corp" and sometimes hereinafter referred
to as the "Borrower"), created pursuant to Section 3 of the Oklahoma Indian
Welfare Act of June 26, 1936 (49 Stat. 1967) under a federal charter issued to
the Iowa Tribe of Oklahoma ("Iowa Tribe"), a federally recognized tribe, whose
business office is located at RR 1, P.O. Box 721, Perkins, Oklahoma 74059, and
Lakes Iowa Management, LLC, a Minnesota limited liability company (hereinafter
referred to as "Lakes"), whose business office is located at 130 Cheshire Lane,
Minnetonka, Minnesota 55305, and when it has executed a counterpart signature
page hereto, the "Agent" (as defined below).

                                    RECITALS

     WHEREAS, the Borrower is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Iowa Corp is vested with the sovereign immunity of the Iowa Tribe,
and has been established to control and manage the economic affairs of the Iowa
Tribe; and is the legal entity which will own and operate specified gaming
projects which are to be developed by Iowa Corp on behalf of the Iowa Tribe.

     WHEREAS, Lakes has entered into an agreement with Iowa Corp and the Iowa
Tribe dated January 27, 2005 ("Management Contract"), pursuant to which Lakes is
to manage the Gaming Facility and related Ancillary Facilities for a new project
owned by Iowa Corp on behalf of the Iowa Tribe.

     WHEREAS, Borrower and Lakes desire to enter into this Agreement in order to
provide for the receipt, deposit and disbursement of Gross Total Revenues
derived by the Borrower with respect to the Project (as set forth in the
Management Contract), and to grant Lakes a first priority and perfected security
interest in such revenues subject only to Permitted Liens, each for the purposes
and in accordance with the terms set forth herein, as provided under the terms
of the Management Contract.


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     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

     Section 1.1 Unless the context otherwise requires, capitalized terms which
are not defined herein shall have the meaning ascribed to them in the Management
Contract.

     Section 1.2 DEFINED TERMS. The following terms when used herein shall have
the following meanings:

     "Agent" means the financial institution selected by the Borrower pursuant
to Section 6.5 hereof, and its successors and assigns.

     "Business Day" means a day other than (i) a Saturday or Sunday and (ii) any
day on which banks located in the State of Oklahoma are required or authorized
by law to remain closed.

     "Collateral" means the Project Revenues, the Project Dominion Account and
the cash and/or cash equivalents and other investment property deposited or
credited thereto from time to time, each whether now or hereafter owned,
existing, arising or acquired, and including any proceeds of the foregoing.

     "Event of Default" shall have the meaning assigned to such term in Section
5.1 hereof.

     "Notice of Exclusive Control" shall have the meaning assigned to such term
in Section 3.2 hereof.

     "Obligations" shall mean all loans, compensation, fees, expenses and other
amounts owing by (i) the Borrower to Lakes or its Affiliates under or with
respect to the Management Contract, the Operating Note, the Security Agreement,
and each of the other Transaction Documents, (ii) the Iowa Tribe under and with
respect to the Tribal Agreement and any other documents or agreements executed
in favour of Lakes or its Affiliates in connection with the Project Facilities,
(iii) together with any costs, expenses or other amounts hereafter owing by the
Borrower to Agent or Lakes pursuant to the terms of this Agreement, each of the
foregoing, whether now existing or hereafter incurred or arising.

     "Project Dominion Account" means that certain account owned and maintained
by the Borrower with the Agent formed by and subject to the terms of this
Agreement into which all Project Revenues shall be deposited, together with any
replacement or supplemental accounts related thereto.

     "Project" shall have the meaning assigned to such term in the Management
Contract and which shall include, without limitation, the gaming operations of
the Project.


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     "Project Revenues" shall mean the Gross Total Revenues (as such term is
defined in the Management Contract) of the Project, including without limitation
credit card receivables and other accounts receivable related to the Project.

     "Permitted Liens" shall mean: (i) all security interests and liens granted
by Borrower in favor of Lakes under the terms of the Management Contract or any
related Transaction Documents; and (ii) such other liens and security interests
as Lakes may consent to in writing.

                                    ARTICLE 2
                                GENERAL COVENANTS

     Section 2.1 CREATION OF PROJECT DOMINION ACCOUNT/LEGAL OPINION. Upon the
Agent's execution of this Agreement pursuant to Section 6.5 hereof, there is
hereby created with the Agent the Project Dominion Account in the name of
Borrower, which account is subject to the terms and conditions of this
Agreement. The Agent shall deposit into the Project Dominion Account, as
received, each and every payment of Project Revenues or proceeds thereof
delivered to the Agent in accordance with Section 2.2 hereof. Notwithstanding
any other term or provision contained herein or in the Management Contract, only
Lakes shall have the authority to make withdrawals from or exercise any other
rights with respect to Project Dominion Account; provided that upon written
notice to the Agent, Lakes may grant the Borrower the right (which may be
subsequently revoked by Lakes at any time) to make withdrawals and transfers
from the Project Dominion Account subject to any conditions set forth in such
notice. Agent hereby acknowledges the security interest in the Collateral
granted to Lakes by Borrower. On the date of execution of this Agreement, the
Borrower shall cause to be delivered to Lakes (a) such financing statements and
similar documents necessary to perfect the security interest granted to Lakes
pursuant to Section 3.1 hereof (the "Financing Statements") and (b) a legal
opinion in form and substance reasonably acceptable to Lakes, opining as to the
due authorization, execution, delivery and enforceability of this Agreement and
the Financing Statements by the Borrower, together with opinions as to the
Borrower's sovereign immunity waiver and noncontravention with laws and
agreements.

     Section 2.2 DEPOSIT OF REVENUES. The Borrower agrees that it will or will
direct Lakes, any other manager of the Project, and any other applicable parties
to cause all Project Revenues to be transferred to the Agent on each Business
Day for deposit into the Project Dominion Account. If any Project Revenues are
initially deposited in collection bank(s) (which shall be permitted provided the
collecting bank(s) execute and deliver the Joinder Agreement attached hereto as
Exhibit A with the Borrower, Lakes and the collecting banks in form mutually
acceptable to each of such parties), the Borrower shall transfer or cause to be
transferred all such Project Revenues or other Collateral, consisting of cash
and other collected funds directly by wire transfer of immediate available funds
to the Project Dominion Account on each Business Day. In the event that the
Borrower receives any payment that should have been deposited into the Project
Dominion Account as provided pursuant to this Agreement, the Borrower agrees
that it will hold such amounts in trust for the benefit of Lakes, and shall not
commingle any such


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funds with any of its funds or other property and shall immediately transfer
such amounts to the Agent for deposit into the Project Dominion Account. The
Borrower agrees that the Agent's officers, agents and employees are irrevocably
authorized by it to endorse for payment to the Agent any instruments received by
the Agent for deposit into the Project Dominion Account.

     Section 2.3 WITHDRAWALS FROM PROJECT DOMINION ACCOUNT. Subject to the terms
of this Agreement, Lakes acknowledges and agrees that during each calendar month
it shall make or permit such transfers from the Project Dominion Account to and
for the benefit of each of the Borrower and Lakes in such amounts and
priorities, for such purposes and as and when required pursuant to the terms of
Sections 2.8(b) and 5.5 of the Management Contract. Lakes further acknowledges
and agrees that transfers from the Project Dominion Account to Project Accounts
under Section 2.8(b) of the Management Contract and payment of the Minimum
Guaranteed Monthly Payment shall be timely made notwithstanding any provision of
this Dominion Agreement (except as otherwise provided under Section 5.2 hereof).
In connection with any such withdrawals and transfers and any other aspects of
the Project Dominion Account, the Agent shall acknowledge and comply with only
the withdrawal requests and other directions received from Lakes, except as
expressly provided in Section 2.2 above or pursuant to an arbitration award made
in an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges that when it shall release any funds from the Project Dominion
Account, then its security interest in such funds shall also be deemed to have
been released concurrently therewith.

     Section 2.4 INTEREST. The Project Dominion Account shall bear interest, and
subject to Section 3.2 of this Agreement, funds in that account shall be
invested in money market or other cash equivalent assets that are reasonably
acceptable to Borrower or, after the occurrence of any Event of Default, solely
by Lakes. All interest accruing with respect to amounts now or hereafter on
deposit with respect to the Project Dominion Account shall be deposited into the
Project Dominion Account and become part of the proceeds of the Collateral and
distributed as part of such proceeds.

     Section 2.5 MONTHLY REPORTING. On or before the tenth (10th) Business Day
of each calendar month, the Agent shall provide to the Borrower and Lakes an
account statement with respect to the Project Dominion Account reflecting all
deposits to, withdrawals from and charges credited against the Project Dominion
Account, and specifying the financial assets held in such account.

                                    ARTICLE 3
                     PLEDGE AND GRANT OF SECURITY INTERESTS

     Section 3.1 GRANT OF THE SECURITY INTEREST. As security for the payment and
performance of all of the Obligations, the Borrower hereby pledges to Lakes and
grants a continuing first perfected security interest to Lakes, for and on
behalf of Lakes itself and its Affiliates, subject only to Permitted Liens of
all of the Borrower's right, title and interest in and to the Collateral. The
Borrower represents and warrants that the Borrower is (or, to the extent that
the Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of


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its respective Collateral and has exclusive possession and control thereof;
there are no security interests in, liens, charges or encumbrances on, or
adverse claims of title to, or any other interest whatsoever in, such Collateral
or any portion thereof except for Permitted Liens; and that no financing
statement, notice of lien, mortgage, deed of trust or instrument similar in
effect covering the Collateral or any portion thereof or any proceeds thereof
("LIEN NOTICE") exists or is on file in any public office, except as relates to
Permitted Liens and except as may have been filed in favor of Lakes relating to
this Agreement or related agreements, or for which duly executed termination
statements have been delivered to Lakes for filing. Without the prior written
consent of Lakes, Borrower will not in any way encumber, or hypothecate, or
create or permit to exist, any lien, security interest, charge or encumbrance or
adverse claim upon or other interest in the Collateral, except for Permitted
Liens, and the Borrower will defend the Collateral against all claims and
demands of all persons at any time claiming the same or any interest therein,
except as expressly provided herein. The Borrower will not permit any Lien
Notices to exist or be on file in any public office with respect to all or any
portion of the Collateral except, in each case, for Lien Notices of holders of
Permitted Liens or encumbrances permitted by the Management Contract or any
other Transaction Document or except as may have been filed by or for the
benefit of Lakes relating to this Security Agreement or related agreements. The
Borrower shall promptly notify Lakes of any attachment or other legal process
levied against any of the Collateral and any information received by any
Borrower relative to the Collateral, which may in any material way affect the
value of the Collateral or the rights and remedies of Lakes in respect thereto.

          If Borrower shall become entitled to receive or shall receive any
certificate or instrument as proceeds of Collateral, whether as an addition to,
in substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Borrower shall accept any such instruments as Lakes'
agent, shall hold them in trust for Lakes, and shall deliver them forthwith to
Agent in the exact form received, with Borrower's endorsement when necessary or
appropriate, or accompanied by duly executed instruments of transfer or
assignment in blank or, if requested by Lakes, an additional pledge agreement or
security agreement executed and delivered by Borrower, all in form and substance
satisfactory to Lakes, to be held by Lakes, subject to the terms hereof, as
additional Collateral to secure the obligations hereunder.

     The Borrower hereby irrevocably appoints Lakes its attorney-in-fact, which
appointment is coupled with an interest, with full authority in the place and
stead of Borrower and in the name of Borrower, Agent, Lakes or otherwise, from
time to time in Lakes' discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Borrower with respect to the security interests
granted or purported to be granted hereby, (b) to take any action and to execute
any instrument which Lakes may deem necessary or advisable to exercise its
rights under Article 5 hereunder, and (c) upon the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which Lakes may deem necessary or advisable to accomplish the
purposes of this Agreement, including, without limitation:

               (i) to obtain and adjust insurance required under this Agreement;


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               (ii) to ask, demand, collect, sue for, recover, compound, receive
     and give acquittance and receipts for moneys due and to become due under or
     in respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
     instruments, documents and chattel paper, in connection with clauses (i)
     and (ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
     to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
     proceedings which Lakes may deem necessary or desirable for the collection
     of any of the Collateral or otherwise to enforce the rights of Agent or
     Lakes with respect to any of the Collateral.

     Section 3.2 CONTROL. Agent covenants and agrees that it will comply with
all instructions, requests or other directions originated by Lakes concerning
the Project Dominion Account at any time without further consent by Borrower.
Except as otherwise provided in this Agreement, Agent shall accept withdrawal
and investment instructions with respect to the Collateral held in the Project
Dominion Account at the direction of Borrower or its authorized representatives
and Lakes until such time as Lakes delivers a written notice to Agent and the
Borrower in accordance with Section 5.2 that Lakes is thereby exercising
exclusive control over the Project Dominion Account ("Notice of Exclusive
Control"), provided that the proceeds of any such investments are deposited in
or credited to the Project Dominion Account contemporaneously with such
transaction; and provided, further, such investment instructions shall not
affect the type or nature of Collateral for attachment and perfection purposes
under the Oklahoma Uniform Commercial Code (as may be amended from time to time)
or any other applicable law. After Agent receives the Notice of Exclusive
Control, it will immediately cease complying with any investment instructions
concerning Project Dominion Account originated by Borrower or its
representatives and shall comply with only such investment instructions as are
originated by Lakes.

     Section 3.3 DURATION. The pledge and security interests granted herein in
the Collateral will respectively continue with respect to Lakes until cancelled
or terminated by Lakes under a written cancellation instrument signed by such
party or except as otherwise provided pursuant to an arbitration award made in
an arbitration proceeding to which Lakes and the Borrower are parties. Lakes
acknowledges and agrees that it shall cause the termination of this Agreement as
and when the Management Contract has been terminated, all Obligations have been
paid in full and Lakes no longer has any commitment to make loan advances, if
any, to the Borrower under the Management Contract.

                                    ARTICLE 4
                               BORROWER COVENANTS

     Section 4.1 Covenants of the Borrower. During the term of this Agreement,
the Borrower will observe and comply with the following requirements, unless
Lakes shall otherwise consent in writing:


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     (a) Further Assurance. The Borrower will promptly execute and deliver all
instruments and documents, and take such actions that may be necessary or that
the Agent or LAKES may reasonably request, in order to perfect and protect the
security interests granted hereby or, after an Event of Default, to enable the
Agent or Lakes to exercise and enforce its right and remedies hereunder with
respect to any Collateral in accordance with this Agreement. Without limiting
the generality of the foregoing, the Borrower will execute and file such
financing statements or continuation statements in respect thereof, or
amendments thereto, and such other instruments of notices, as may be necessary
or desirable, or as the Agent or Lakes may reasonably request, in order to
perfect, preserve, and enhance the security interests granted hereby. The
Borrower hereby authorizes the Agent, with the prior written consent of Lakes,
or Lakes to file this Agreement (if the Borrower shall fail to provide an
appropriate financing statement within ten (10) business days after request) or
one or more continuation statements in respect thereof, relating to all or any
part of the Project Dominion Account or the Project Revenues without the
additional signature or consent of the Borrower where permitted by law. A
photocopy or other reproduction of this Agreement or any financing statement
covering the Project Dominion Account and Project Revenues or any part thereof
shall be sufficient as a financing statement where permitted by law.

     (b) No Revocation. The Borrower shall not revoke any direction or
authorization required or authorized to be given to the collection bank(s) and
Agent pursuant to Article 2 or elsewhere herein unless authorized pursuant to an
arbitration award made in an arbitration proceeding to which Lakes and the
Borrower are parties.

     (c) Financial Statements. After the occurrence of a Material Breach and
termination of the Management Contract, the Borrower will furnish the following
to Lakes upon request:

          (i)  Within thirty (30) days after the end of each month and one
               hundred twenty (120) days after the end of each Fiscal Year,
               financial and operating statements of the Project for such month
               (and year-to-date) or Fiscal Year, as applicable, including a
               balance sheet and a profit and loss statement, all in reasonable
               detail and conforming to generally accepted accounting principles
               for gaming operations. The monthly statements shall be prepared
               and certified by the Borrower as being true and correct
               representations of the information set forth therein and the
               annual financial statements shall be prepared, audited and
               certified by independent certified public accountants with casino
               auditing experience employed or retained by the Borrower. Lakes
               agrees that any such information, as well as any other
               information it may receive from Borrower relating to the Project,
               shall be and remain subject to the provisions of Section 9.20 of
               the Management Contract.

          (ii) Within fifteen (15) days after the filing thereof, a copy of the
               Borrower's regulatory filings under IGRA and its Tribal-State
               Compact, if any, for each calendar year during the term hereof,
               with all schedules attached.

          (iii) With each of the annual audited and monthly unaudited financial
               statements delivered pursuant to this subsection a certificate of
               the chief


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               financial officer of the Borrower or an appropriate officer of
               the manager of the Project, substantially in the form set forth
               in Exhibit B stating that, except as explained in reasonable
               detail in such certificate, all Gross Total Revenues with respect
               to the Project has been deposited into the Project Dominion
               Account for the period covered by such financial statement. If
               such certificate discloses an exception to such certification,
               such certificate shall set forth what action the Borrower has
               taken or proposes to take with respect thereto.

     (d) Insurance. At such time as Lakes shall no longer be the Manager of the
Project, the Borrower shall cause to be maintained insurance as required by the
Management Contract and naming Lakes as an additional insured, loss payee and
mortgagee, if applicable. Upon request, the Borrower shall provide to the Agent
and Lakes certificates of insurance or copies of insurance policies evidencing
that such insurance satisfying the requirements of such Management Contract is
in effect at all times.

                                    ARTICLE 5
                           EVENTS OF DEFAULT/REMEDIES

     Section 5.1 Events of Default. Each of the following occurrences shall
constitute an Event of Default:

     (a) Any material representation or warranty made by or on behalf of the
Borrower herein or in any report, certificate or other document furnished by or
on behalf of the Borrower pursuant to this Agreement shall prove to be false or
misleading in any material respect when made, and such false or misleading
statement shall cause a material loss or have a material adverse effect on any
Collateral of Lakes described in this Agreement or any other Transaction
Documents and such loss or adverse effect is not cured by the Borrower within
sixty (60) days after providing notice thereof to the Borrower.

     (b) The Borrower shall default in the due observance or performance of any
of its material obligations hereunder and such default shall continue for thirty
(30) days (unless a shorter or longer cure period is provided under the terms of
this Agreement) after written notice thereof has been sent to the Borrower by
Lakes or Agent; provided, however, that if the nature of such default (but
specifically excluding defaults curable by the payment of money) is such that it
is not possible to cure such default within such cure period, such cure period
shall be extended for so long as the Borrower shall be using diligent efforts to
effect a cure thereof.

     (c) A Material Breach by Borrower shall occur and such default shall
continue for thirty (30) days after written notice thereof has been sent to the
Borrower by Lakes.

     (d) An event of default shall have occurred under the Operating Note and
shall have continued beyond any applicable grace or cure period.


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     Section 5.2 REMEDIES ON DEFAULT. Whenever an Event of Default shall have
occurred and be continuing and, if such default is not cured within any
applicable cure period, Lakes may thereafter give Agent and the Borrower a
Notice of Exclusive Control, and Agent (for and on behalf and at the direction
of Lakes) or Lakes, as applicable, shall be entitled to pay to Lakes from the
Project Dominion Account all amounts otherwise payable to the Borrower under
Section 5.5 of the Management Contract, and to apply the same towards the
repayment of the Obligations, and to endorse in the name of the Borrower any
checks, drafts, notes or other instruments or documents received in payment of
or on account of the Project Revenues or other Collateral; and any such proceeds
so received and prepaid shall be applied to installments of principal on the
Obligations in the inverse order of their maturity; and provided further that
Lakes may obtain any injunctive or other relief as is necessary for the
enforcement of this Agreement and the terms and provisions set forth herein, and
may exercise such other rights and remedies available by law or agreement;
PROVIDED, HOWEVER, that any and all obligations of Borrower and remedies of
Lakes shall be Limited Recourse and shall be subject to the limitations set
forth in the Resolution of Limited Waiver attached to the Management Contract;
and provided further that, notwithstanding any term or provision contained
herein, Lakes shall take all steps necessary to continue to permit and cause the
necessary withdrawals and transfers to be made from the Project Dominion Account
in accordance with Section 2.3 hereof, with the exception that Lakes shall be
entitled to retain all amounts otherwise payable to the Borrower under Section
6.5 (including any payments required to be made under Section 5.5(a)(i)) of the
Management Contract and apply the same towards the repayment of the Obligations;
and in no event shall Lakes exercise any remedy against the Borrower (excluding
other third parties) with respect to the Project Revenues other than such
remedies as are necessary to require their deposit into the Project Dominion
Account or seeking an accounting and turnover of any Project Revenues held in
trust by the Borrower as required under Section 2.2 hereof until such time that
the Borrower shall have ceased business operations at the Project, at which time
Lakes may exercise all rights and remedies under applicable law or by agreement
and apply all proceeds of the Collateral to the repayment of the Obligations.
Borrower agrees that, to the extent notice of sale shall be required by law with
respect to the disposition of any Collateral, at least ten (10) calendar days
notice to the Borrower of the time and place of any public sale or the time
after which a private sale is to be made shall constitute reasonable
notification. Lakes agrees that it shall withdraw and terminate any Notice of
Exclusive Control at such time that all outstanding Events of Default have been
cured by the Borrower.

     Lakes shall have the right at any time, but shall not be obligated, to make
any payments and do any other acts Lakes may deem necessary or desirable to
protect its security interest in the Collateral, including, without limitation,
that after the occurrence of an Event of Default the right to pay, purchase,
contest or compromise any encumbrance, charge or lien (excluding any Permitted
Liens) applicable or purported to be applicable to any Collateral hereunder, and
whether prior to or after the occurrence of any Event of Default, appear in and
defend any action or proceeding purporting to affect its security interest in
and/or the value of any Collateral, and in exercising any such powers or
authority, the right to pay all expenses incurred in connection therewith,
including attorneys' fees. Borrower hereby agrees that it shall be bound by any
such payment made or incurred or act taken by Lakes hereunder and shall
reimburse Lakes for all reasonable payments made and expenses incurred under
this Agreement, which amounts shall be secured under this Agreement. Lakes shall
have no obligation to make any of the foregoing payments or perform any of the
foregoing acts


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     The Agent's and Lakes' sole duty with respect to the custody, safekeeping
and preservation of the Collateral, under Section 9-207 of the Code or
otherwise, shall be to deal with it in the same manner as either of them deals
with similar property for their own account. Neither the Agent nor Lakes nor any
of their directors, officers, trustees, employees, representatives, or agents
shall be liable for failure to demand, collect or realize upon all or any part
of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral in connection with the exercise
of any of their rights and remedies under this Agreement.

     Each of the parties hereto acknowledge and agree that all reasonable costs
and expenses incurred by the Agent after an Event of Default and expiration in
connection with the exercise of any remedy hereunder, including reasonable
attorneys' fees, are the costs, expense and responsibility of the Borrower and
shall be paid from the Project Dominion Account notwithstanding any other terms,
provisions or priorities set forth in this Agreement; provided however that if
the Borrower is the prevailing party in any action or proceeding seeking
enforcement of this Agreement, then the Borrower shall not be and Lakes shall be
responsible for such related costs and expenses.

     Section 5.3 WAIVERS; REMEDIES. Any waiver given by Lakes hereunder shall be
effective if it is in writing and only in the specific instance and for the
specific purpose given. Mere delay or failure to act shall not preclude the
exercise or enforcement of any rights and remedies available to Lakes. All
rights and remedies of the Agent and/or Lakes shall be cumulative and may be
exercised singularly in any order or concurrently, at the option of Lakes, and
the exercise or enforcement of any such right or remedy shall neither be a
condition to nor a bar to the exercise or enforcement of any other right or
remedy.

                                    ARTICLE 6
                                    THE AGENT

     Section 6.1 AGENT'S RIGHTS AND DUTIES.

     (a) The Agent's sole agency and duty with respect to Lakes and this
Agreement is for the purposes of perfecting Lakes' pledge and security interest
in the Collateral and the Agent shall have no other duty or obligation,
fiduciary or otherwise to Lakes except to the extent expressly set forth herein.

     (b) The Agent undertakes to perform such duties as are specifically set
forth in this Agreement, and no implied covenants or obligations shall be read
into this Agreement against the Agent.

     (c) In the absence of bad faith on its part, Agent may conclusively rely,
as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Agent and conforming to
the requirements of this Agreement believed by it to be genuine and to have been
signed or presented by the proper party or parties; but in the case of any such
certificates or opinions which by any provision hereof are specifically required


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to be furnished to the Agent, the Agent shall be under a duty to examine the
same to determine whether or not they conform to the requirements hereof.

     (d) In case an Event of Default has occurred and is continuing, the Agent
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

     (e) No provision of this Agreement shall be construed to relieve the Agent
from liability for its own wilful misconduct, negligence or breach of duty
hereunder, except that:

          (i)  this subsection shall not be construed to limit the effect of
               subsections (a) or (b) of this Section;

          (ii) the Agent shall not be liable for any error, of judgment made in
               good faith by an officer of the Agent, unless it shall be proved
               that the Agent was negligent in ascertaining the pertinent facts;
               and

          (iii) no provision of this Agreement shall require the Agent to expend
               or risk its own funds or otherwise incur any financial liability
               in the performance of any of its duties hereunder, or in the
               exercise of any of its rights or powers, if it shall have
               reasonable grounds for believing that repayment of such funds or
               adequate indemnity against such risk or liability is not
               reasonably assured to it.

     (f) Except for the requirements under Section 3.2 hereof, the safekeeping
of any funds in its possession, the accounting for funds actually received by it
hereunder and the investment of the funds in accordance with the instructions of
the Borrower (provided Lakes has not issued a Notice of Exclusive Control) and
Lakes, the Agent shall have no duty as to any Project Revenues or other
Collateral or as to the taking of any necessary steps to preserve rights against
any Persons or any other rights pertaining to any Project Revenues or other
Collateral.

     Section 6.2 INDEMNIFICATION. The Borrower and Lakes jointly and severally
agree to hold the Agent harmless and to defend the Agent against any claims,
causes of actions or damages arising out of any claim against the Agent by any
Person with respect to amounts due to such Person from sums paid to the Agent
hereunder, other than with respect to claims arising out of the willful
misconduct or gross negligence by the Agent, its officers, agents or employees,
in the performance of its duties under this Agreement, and any such amounts
shall be deemed to be Costs of Gaming Operations under the Management Contract
and subject to the terms of Section 2.9 thereof.

     Section 6.3 FEES AND EXPENSES. The Borrower agrees to pay the Agent its
reasonable fees and charges for serving as Agent hereunder and after an Event of
Default to pay and reimburse the Agent or Lakes on demand for all out-of-pocket
expenses (including in each case all filing and recording fees and taxes and all
reasonable fees and expenses of counsel) incurred or expended by the Agent or
Lakes in connection with the creation, perfection, satisfaction, foreclosure or
enforcement of the security interests granted hereby and the preparation,


                                                                         Page 11

<PAGE>

administration and enforcement of this Agreement; provided however that if the
Borrower is the prevailing party in any action or proceeding seeking enforcement
of this Agreement, then the Borrower shall not be and Lakes shall be responsible
for such related costs and expenses. If Borrower shall fail to pay any of such
costs when due, Lakes may make a withdrawal or proceeds from the Project
Dominion Account in an amount sufficient to cause the payment of the same or
reimburse Lakes for any such payment.

     Section 6.4 CERTAIN RIGHTS OF AGENT. Except as otherwise provided in
Section 6.1 hereof:

     (a) The Agent may rely and shall be protected in acting or refraining from
acting upon any certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or documents believed by it to
be genuine and to have been signed or presented by the proper party or parties.

     (b) Whenever in the administration of this Agreement the Agent shall deem
it desirable that a matter be proved or established prior to taking, suffering,
or omitting to take any action hereunder, the Agent (unless other evidence be
herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon a certificate of an officer of Lakes.

     (c) The Agent shall not be bound to make any investigation into the facts
or matters stated in any certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order or other paper or document believed
by it to be genuine and to have been signed or presented by the proper party or
parties, but the Agent, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit.

     Section 6.5 AGENT REQUIRED, SELECTION AND ELIGIBILITY. On or before sixty
(60) days prior to the Commencement Date (as estimated by the Borrower and
Lakes), Borrower shall select an eligible financial institution to act as the
agent (the "Agent") under this Agreement and cause the Agent to execute a
counterpart signature page to this Agreement, thereby becoming a party hereto.
Thereafter, there shall at all times be an Agent hereunder. Any such Agent shall
be a financial institution organized and doing business under the laws of the
United States of America or of any State, having a combined capital, undivided
profits and surplus of at least $500,000,000. If at any time the Agent shall
cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article 6.

     Section 6.6 RESIGNATION AND REMOVAL, APPOINTMENT OF SUCCESSOR.

     (a) No resignation or removal of the Agent and no appointment of a
Collecting Bank pursuant to this Article shall become effective until the
acceptance of appointment by the Collecting Bank under Section 6.7 and execution
by such Collecting Bank of a joinder agreement assuming the obligations of such
resigning Agent hereunder or of a Dominion Account Agreement substantially in
the form of this Agreement.


                                                                         Page 12

<PAGE>

     (b) The Agent may resign at any time by giving thirty (30) days prior
written notice thereof to the Borrower and Lakes. If an instrument of acceptance
by a Collecting Bank shall not have been delivered to the Agent within thirty
(30) days after the giving of such notice of resignation, the resigning Agent
may petition any court of competent jurisdiction for the appointment of a
Collecting Bank.

     (c) Subject to subsection (a) above, the Agent may be removed at any time
by an instrument in writing executed by the Borrower and Lakes (so long as a
Notice of Exclusive Control has not been issued by Lakes to the Agent) and
delivered to the Agent.

     (d) If the Agent shall resign or be removed for any cause, the Borrower (so
long as a Notice of Exclusive Control has not been issued by Lakes to the Agent)
and Lakes shall promptly appoint a Collecting Bank.

     (e) The Borrower shall give notice of each removal of the Agent and each
appointment of a Collecting Bank by mailing written notice of such event within
15 days thereof by certified mail, return receipt requested, postage prepaid, to
Lakes. Each notice shall include the name of the Collecting Bank and the address
of its principal corporate trust office.

     Section 6.7 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. Every Collecting Bank
appointed hereunder shall execute, acknowledge, and deliver to the Borrower and
Lakes, and to the retiring Agent an instrument accepting such appointment, and
thereupon the resignation or removal of the retiring Agent shall become
effective and such Agent, without any further act, deed, or conveyance, shall
become vested with all the rights, powers, trusts, and duties of the retiring
Agent, but, on request of the Borrower, Lakes or the Collecting Bank, such
retiring Agent shall, upon payment of its charges, execute and deliver an
instrument transferring to such Collecting Bank all the rights, powers and
trusts of the retiring Agent, and shall duly assign, transfer and deliver to
such Collecting Bank all property and money held by such retiring Agent
hereunder. Upon request of any such Collecting Bank, the Borrower shall execute
any and all instruments for more fully and certain vesting in and confirming to
such Collecting Bank for all such rights, powers and trusts.

     Section 6.8 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion,
or consolidation to which the Agent shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto.

     Section 6.9 NO SET-OFF. The Agent shall not set off from the Collateral any
obligations or other amounts which may be payable to the Agent by the Borrower,
Lakes or by any other Person, other than amounts due pursuant to Section 6.3.

     Section 6.10 CONFLICTS. In the event of any inconsistency between this
Agreement and any depository agreement of Agent now or hereafter existing with
respect to the Project Dominion Account, the terms of this Agreement shall
control.


                                                                         Page 13

<PAGE>

                                    ARTICLE 7
                                  MISCELLANEOUS

     Section 7.1. NOTICES. Except as otherwise provided herein, any notice or
demand which, by provision of this Agreement, is required or permitted to be
given or served any party to the others shall be deemed to have been
sufficiently given and served for all purposes: (a) (if mailed) three (3)
calendar days after being deposited, postage prepaid, in the United States Mail,
registered or certified mail; or (b) (if delivered by express courier) one
Business Day after being delivered to such courier; or (c) (if delivered in
person) the same day as delivery, or until another address or addresses are
given in writing by a party as follows:

If to the Borrower:    Iowa Tribe of Oklahoma
                       a federally-chartered corporation
                       RR 1, P.O. Box 721
                       Perkins, OK 74059
                       Attention: Chairman

     With a copy to:   David McCullough, Esq.
                       Doerner, Saunders, Daniel & Anderson, L.L.P.
                       211 N. Robinson Ave. Suite 501
                       Oklahoma City, Ok 73102-7112

If to Lakes:           Lakes Iowa Management, LLC
                       130 Cheshire Lane
                       Minnetonka, MN
                       Attention: Timothy J. Cope

     With a copy to:   Kevin C. Quigley, Esq.
                       Hamilton Quigley Twait & Foley PLC
                       W1450 First National Bank Building
                       332 Minnesota Street
                       St. Paul, MN 55101-1314

          and          Brian J. Klein, Esq.
                       Maslon, Edelman, Borman & Brand, LLP
                       3300 Wells Fargo Center
                       90 South Seventh Street
                       Minneapolis, MN 55402-4140

To Agent:              At the address set forth on the signature page hereto.

     Any notice given under this Agreement by any party shall be given to all
parties.

     Section 7.2 SEVERABILITY. If any provision of this Agreement is prohibited
by, or is unlawful or unenforceable under, any applicable law of any
jurisdiction, such provision shall, as


                                                                         Page 14

<PAGE>

to such jurisdiction, be ineffective to the extent of such prohibition without
invalidating the remaining provisions hereof, provided, however that where the
provisions of any such applicable law may be waived, they hereby are waived by
the Parties to the fullest extent permitted by law to the end that this
Agreement shall be deemed to be a valid and binding agreement in accordance with
its terms.

     Section 7.3 SURVIVAL. The warranties, representations, covenants and
agreements set forth herein shall survive the execution and delivery of this
Agreement and shall continue in full force and effect until this Agreement has
been terminated pursuant to Section 3.3 hereof.

     Section 7.4 CAPTIONS. Captions herein are for convenience only and shall
not be deemed part of this Agreement.

     Section 7.5 BINDING EFFECT. Subject to any limitations on assignment set
forth in the Management Contract, this Agreement shall be binding upon and inure
to the benefit of the parties hereto, their respective successors and assigns.

     Section 7.6 AMENDMENTS. This Agreement may not be amended, modified,
waived, cancelled or terminated, except in writing executed by all of the
parties hereto.

     Section 7.7 RIGHTS, POWERS, WAIVERS, ETC. Each and every right, remedy and
power granted to Agent and Lakes hereunder or to Lakes under the Obligations
shall be cumulative and may be exercised by the Agent or Lakes, as applicable,
from time to time concurrently or independently as often and in such order as
the Agent or Lakes may deem expedient; provided, however, that any and all
remedies of the Agent and Lakes shall be Limited Recourse. No failure on the
part of the Agent or Lakes to exercise and no delay in exercising, any power or
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any power or right preclude any other or further exercise
thereof of any other power or right.

     Section 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original but together shall
constitute one and the same instrument.

     Section 7.9 SOVEREIGN IMMUNITY WAIVER; ARBITRATION; SUBMISSION TO
JURISDICTION. This Agreement constitutes the Dominion Account Agreement as
defined and referred to in Section 2.8(a) of the Management Contract. As such
and without limiting the scope of such Management Contract, the provisions of
Section 9.10 and Article 10 of the Management Contract apply to this Agreement
and are hereby incorporated by reference, including, without limitation, the
limited sovereign immunity waiver, limitations on recourse and arbitration and
jurisdiction provisions contained therein and the Resolution of Limited Waiver
attached thereto. This Agreement and the Project Dominion Account will be
governed by the internal laws of the State of Oklahoma without giving effect to
its conflict of laws principles and without limiting the foregoing, the Oklahoma
Uniform Commercial Code (as may be amended form time to time) notwithstanding
any provision therein or other applicable law that would otherwise make such
laws inapplicable to the Borrower. The parties hereto may not change the law
governing this


                                                                         Page 15

<PAGE>

Agreement and the Project Dominion Account without express written consent of
the Borrower, Agent and LAKES.

     Section 7.10 AGREEMENTS CONTROL. In the event of inconsistency between the
Management Contract and this Agreement, this Agreement shall control.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                                                         Page 16

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Dominion Account
Agreement, in counterparts and under seal, as of the Effective Date.

                                        "BORROWER"

                                        Iowa Tribe of Oklahoma
                                        a federally-chartered corporation


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairperson
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr.
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr.
                                              ----------------------------------
                                        Its: Tribal Secretary
                                             -----------------------------------


                                        LAKES IOWA MANAGEMENT, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Rob Wyre
                                            ------------------------------------
                                        Name: Rob Wyre
                                              ----------------------------------
                                        Its: Sr. VP OPS
                                             -----------------------------------

Date of Joinder of Agent: ____________, 200_

                                        "AGENT"

                                        [______________________________________]


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

                                        ADDRESS FOR NOTICES:

                                        ----------------------------------------

                                        ----------------------------------------

                                        ----------------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT A

                        COLLECTING BANK JOINDER AGREEMENT

     THIS JOINDER AGREEMENT is dated as of __________, 200__ by
________________________________, a __________________________________
("Collecting Bank").

     WHEREAS, pursuant to Section 2.2 of that certain Dominion Account Agreement
(Management)(New Project) dated January 27, 2005 (as amended or otherwise
modified from time to time, the "Dominion Agreement") by and among Iowa Tribe of
Oklahoma, a federally-chartered corporation ("Borrower"), Lakes Iowa Management,
LLC ("Lakes") and ____________________________________ ("Agent"), the Collecting
Bank, must execute and deliver a Joinder Agreement in accordance with the
Agreement.

     NOW THEREFORE, as a further inducement to Lakes to continue to provide
credit accommodations, development and management services to the Borrower, the
Collecting Bank hereby covenants and agrees as follows:

     1.   All capitalized terms used herein shall have the meanings assigned to
          them in the Dominion Agreement unless expressly defined herein to the
          contrary.

     2.   The Collecting Bank hereby enters into this Joinder Agreement in order
          to comply with Section 2.2 of the Agreement and acknowledges receipt
          of a copy of the Dominion Agreement.

     3.   Collecting Bank will be from time to time receiving Project Revenues
          from the Borrower which shall be deposited into account No.
          ____________ maintained by the Borrower with the Collecting Bank (such
          account, together with any replacement thereof shall hereinafter be
          referred to as the "Collecting Bank Account").

     4.   The Collecting Bank acknowledges and agrees that it shall comply with
          and be bound by each of the terms and provisions of the Dominion
          Agreement as if originally a party thereto and all references set
          forth in the Dominion Agreement to "Project Dominion Account" shall be
          deemed to be references to the Collecting Bank Account and all
          references to the "Agent" shall be deemed to be references to the
          Collecting Bank; provided, however, that Collecting Bank hereby
          acknowledges and agrees that on each Business Day all collected
          Project Revenues and other collateral delivered to or received by it
          shall be transferred directly to the Agent in immediately available
          funds.

DOMINION AGREEMENT

<PAGE>

     5.   Without limiting the foregoing, Collecting Bank does hereby
          acknowledge and agree that Lakes is the holder of a prior perfected
          security interest in the Project Revenues notwithstanding their
          deposit into the Collection Bank Account or their other transfer to
          the Collecting Bank, and hereby waives any conflicting security
          interest or rights of set off in or to any of such Project Revenues
          and related Collateral.

     6.   This Joinder Agreement shall be governed by the laws of the State of
          Oklahoma and shall be binding upon the Collection Bank and its
          successors and assigns.

     IN WITNESS WHEREOF, the undersigned Collection Bank has executed and
delivered this Joinder Agreement as of the date set forth above.

                                                                            Bank
                                        -----------------------------------


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its:
                                             -----------------------------------

DOMINION AGREEMENT

<PAGE>

                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

Dated ____________, 200_

     I, the Chief Financial Officer of Iowa Tribe of Oklahoma, a
federally-chartered corporation (the "Borrower"), do hereby provide this
Compliance Certificate in connection with that certain Dominion Account
Agreement (Management)(New Project) dated January 27, 2005 (the "Dominion
Agreement"), by and between the Borrower, Lakes, and __________________________
Bank (the "Bank"); capitalized terms used but not otherwise defined herein shall
have the meaning set forth in the Dominion Agreement.

     I certify that as of the date hereof:

     1)   All Gross Total Revenues arising from the operations of the Project
          from ________________, 200__ to ______________, 200__ have been
          deposited into the Project Dominion Account, Account No.
          __________________________ with the Bank.

                                        IOWA TRIBE OF OKLAHOMA
                                        a federally-chartered corporation


                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Its: Chief Financial Officer

DOMINION AGREEMENT
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.141
<SEQUENCE>76
<FILENAME>c92713exv10w141.txt
<DESCRIPTION>SECURITY AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.141

                               SECURITY AGREEMENT
                      (LAKES IOWA MANAGEMENT - NEW PROJECT)

          This Security Agreement is made and entered into on January 27, 2005,
by and between the Iowa Tribe of Oklahoma, a federally-chartered corporation
(hereinafter referred to as "Iowa Corp" or "Debtor"), created pursuant to
Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967),
as issued on January 4, 1938 by the Secretary of the Interior and ratified on
February 5, 1938 located in Iowa Indian Country within the physical boarders of
the State of Oklahoma, with business offices located at RR 1, P.O. Box 721,
Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma ("Iowa Tribe"), a
federally-recognized tribe with a Constitution approved and ratified under the
Oklahoma Indian Welfare Act, and Lakes Iowa Management, LLC, a Minnesota limited
liability company (hereinafter referred to as "Lakes" or "Secured Party"), whose
business office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                    RECITALS

     WHEREAS, the Debtor is a federally-chartered corporation created pursuant
to Section 3 of the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967)
under a federal charter issued to the Iowa Tribe of Oklahoma, a federally
recognized tribe eligible for the special programs and services provided by the
United States to Indians because of their status as Indians and is recognized as
possessing powers of self-government.

     WHEREAS, the United States government holds lands in the State of Oklahoma
in trust for the benefit of the Iowa Tribe over which the Iowa Tribe possesses
sovereign governmental powers and the Iowa Tribe holds or intends to acquire
interests in lands which constitute "Indian lands" upon which the Iowa Tribe may
legally conduct gaming under applicable federal law.

     WHEREAS, Secured Party has entered into an agreement with Debtor and the
Iowa Tribe dated January 27, 2005 (as amended from time to time, the "Management
Contract"), pursuant to which Lakes is to manage the Project's Gaming Facility
and related Ancillary Facilities owned by Debtor.

     WHEREAS, pursuant to the Management Contract, Secured Party will, among
other things, advance funds to Debtor.

     WHEREAS, as a material inducement to Secured Party to enter into the
Management Contract, the Debtor and the Iowa Tribe has agreed to execute this
Security Agreement in favor of Secured Party and to grant a security interest to
Secured Party in all of its right, title and interest in the property described
herein.

                                    AGREEMENT

     NOW THERFORE, in consideration of the above recitals and the mutual
covenants hereinafter set forth, the parties hereto agree as follows:


                                  Page 1 of 15

<PAGE>

     1. CREATION OF SECURITY INTEREST. The Debtor and the Iowa Tribe hereby
assign, pledge and grant to Secured Party, for and on behalf of Secured Party
itself and its Affiliates, a security interest in the Debtor' and the Iowa
Tribe's right, title and interest in and to the collateral described in Section
2 hereinbelow in each case whether now owned or hereafter acquired by Debtor or
the Iowa Tribe in order to secure the payment and performance of the obligations
of Debtor and/or the Iowa Tribe to Secured Party described in Section 3 herein
below. On the date of execution of this Agreement, Debtor and the Iowa Tribe
shall cause to be delivered to Secured Party: (a) such financing statements and
similar documents necessary to perfect the security interest granted to Secured
Party pursuant to this Agreement (the "Financing Statements"), and (b) a legal
opinion in form and substance reasonably acceptable to Secured Party, opining as
to the due authorization, execution, delivery and enforceability of this
Agreement and the Financing Statements by Debtor, together with opinions as to
Debtor's and the Iowa Tribe's sovereign immunity waiver and non-contravention
with laws and agreements.

     2. COLLATERAL. The Collateral under this Security Agreement includes all of
the following assets of the Debtor which are or are to be installed, attached,
and/or used upon or in connection with, relate to or arise from (including
without limitation the ownership and/or operation of) the Project, the Gaming
Facility Site and/or the Project Facilities, each whether now owned or hereafter
acquired (collectively all of the following property and similar or
after-acquired property under this Section 2 being hereinafter referred to as
the "Collateral").

          (a) any Furnishings and Equipment (as defined in the Management
Contract); and

each of the foregoing whether now owned or hereafter at any time acquired by
Debtor and wherever located, and includes all replacements, additions, parts,
appurtenances, accessions, substitutions, repairs, proceeds, products,
offspring, rents and profits, license rights and software attached or relating
thereto or therefrom, and all documents, records, ledger sheets and files of
Debtor relating thereto; together further with all proceeds of any such
Collateral, including, without limitation (i) whatever is now or hereafter
receivable or received by Debtor upon the sale, exchange, collection or other
disposition of any item of Collateral, whether voluntary or involuntary, whether
such proceeds constitute equipment, intangibles, or other assets; (ii) any such
items which are now or hereafter acquired by Debtor with any proceeds of
Collateral hereunder; (iii) all warehouse receipts, bills of lading and other
documents of title now or hereafter covering such goods; and (iii) any insurance
proceeds or any payments under any indemnity, warranty or guaranty now or
hereafter payable by reason of loss or damage or otherwise with respect to any
item of Collateral or any proceeds thereof.

          Capitalized terms used and not otherwise defined herein shall have the
meanings set forth in the Management Contract and each category of Collateral
that is defined under the UCC shall have the meanings set forth therein. As they
are used in this Agreement, the terms listed below shall have the following
meanings:

          "UCC" means the Uniform Commercial Code as the same may, from time to
time, be in effect in the State of Oklahoma.

     3. SECURED OBLIGATIONS OF DEBTOR AND THE IOWA TRIBE. The Collateral secures
and shall hereafter secure the following, whether now existing or hereafter
incurred: (i) all loans,


                                  Page 2 of 15

<PAGE>

compensation, fees, expenses and other amounts owing by (a) Debtor and/or the
Iowa Tribe to Secured Party or its Affiliates under or with respect to the
Operating Note, and each of the other Transaction Documents (as each of such
terms are defined in the Management Contract), and (b) the Iowa Tribe to Secured
Party or its Affiliates under or with respect to the Tribal Agreement or any
other document or agreement executed in favor of Secured Party or its Affiliates
by the Iowa Tribe in connection with the Project, each of the foregoing, whether
now existing or hereafter incurred or arising, (ii) any and all sums advanced by
Secured Party in order to preserve the Collateral or preserve Secured Party's
security interest in the Collateral (or the priority thereof) and (iii) the
expenses of retaking, holding, preparing for sale or lease, selling or otherwise
disposing of or realizing on the Collateral, of any proceeding for the
collection or enforcement of any indebtedness, obligations or liabilities of
Debtor or the Iowa Tribe referred to above, or of any exercise by Secured Party
of its rights hereunder, together with reasonable attorneys' fees and
disbursements and court costs (collectively, the "Secured Obligations");
PROVIDED HOWEVER, Secured Party agrees to terminate this Security Agreement upon
request if Debtor has satisfied the following conditions: (a) all Secured
Obligations have been repaid in full to Secured Party and Secured Party has no
further obligation, if any, to make advances under the Management Contract with
respect thereto, and (b) the Management Contract has been terminated in
accordance with its terms.

          All payments and performance by Debtor and the Iowa Tribe with respect
to any Secured Obligations shall be in accordance with the terms under which
said indebtedness, obligations and liabilities were or are hereafter incurred or
created.

     4. REPRESENTATIONS AND WARRANTIES OF DEBTOR AND THE IOWA TRIBE . The Debtor
and the Iowa Tribe represent and warrant that:

          (a) the Debtor and the Iowa Tribe are (or, to the extent that the
Collateral is acquired after the date hereof, will be) the sole legal and
beneficial owner of its respective Collateral and has exclusive possession and
control thereof; there are no security interests in, liens, charges or
encumbrances on, or adverse claims of title to, or any other interest whatsoever
in, such Collateral or any portion thereof except such liens permitted by and
subject to the terms of Section 2.23 of the Management Contract and that are
created by this Security Agreement ("Permitted Liens"); and that no financing
statement, notice of lien, mortgage, deed of trust or instrument similar in
effect covering the Collateral or any portion thereof or any proceeds thereof
("Lien Notice") exists or is on file in any public office, except as relates to
Permitted Liens and except as may have been filed in favor of Secured Party
relating to this Security Agreement or related agreements, or for which duly
executed termination statements have been delivered to Secured Party for filing;

          (b) the Debtor and the Iowa Tribe have full right, power and authority
to execute, deliver and perform this Security Agreement. This Security Agreement
constitutes a legally valid and binding obligation of the Debtor and the Iowa
Tribe, enforceable against each in accordance with its terms subject to any
limitations set forth in the Resolutions of Limited Waiver of each attached to
the Management Contract. Subject to the completion of the items identified in
Section 4(c) below, the provisions of this Security Agreement are effective to
create in favor of Secured Party a valid and enforceable first, prior and
perfected security interest in the Collateral;

          (c) except for the filing or recording of the financing statements and


                                  Page 3 of 15

<PAGE>

fixture filings that are to be filed in connection with this Security Agreement,
no authorization, approval or other action by, no notice to or registration or
filing with, any person or entity, including without limitation, any stockholder
or creditor of Debtor or the Iowa Tribe or any governmental authority or
regulatory body is required, except as may be agreed to by Debtor or the Iowa
Tribe and Secured Party: (i) for the grant by the Debtor and the Iowa Tribe of
the security interest in the Collateral pursuant to this Security Agreement or
for the execution, delivery or performance of this Security Agreement by the
Debtor and the Iowa Tribe, (ii) for the perfection or maintenance of such
security interest created hereby, including the first priority nature of such
security interest, or the exercise by Secured Party of the rights and remedies
provided for in this Security Agreement (other than any required governmental
consent or filing with respect to any patents, trademarks, copyrights,
governmental claims, tax refunds, licenses or permits and the exercise of
remedies requiring prior court approval), or (iii) for the enforceability of
such security interest against third parties, including, without limitation,
judgment lien creditors;

          (d) Debtor and the Iowa Tribe do not do business, and for the previous
five years has not done business, under any fictitious business names or trade
names;

          (e) the Collateral has not been and will not be used or bought by
Debtor or the Iowa Tribe for personal, family or household purposes;

          (f) the Debtor's chief executive office is located at the address
referenced as the first page of this Agreement, Debtor has no places of business
other than such address and the locations described on Exhibit A attached hereto
and the Collateral is now and will at all times hereafter be located at such
premises or as Debtor may otherwise notify Secured Party in writing;

          (g) Intentionally omitted;

          (h) Debtor has not purchased any Collateral, other than for cash,
within twenty-one (21) days prior to the date hereof;

          (i) all originals of all promissory notes, other instruments or
chattel paper which evidence Collateral (other than checks received by Debtor in
the ordinary course of business) have been delivered to Secured Party (with all
necessary or appropriate endorsements); and

          (j) none of the execution, delivery and performance of this Security
Agreement by Debtor or the Iowa Tribe, the consummation of the transactions
herein contemplated, the fulfillment of the terms hereof or the exercise by
Secured Party of any rights or remedies hereunder will constitute or result in a
breach of any of the terms or provisions of, or constitute a default under, or
constitute an event which with notice or lapse of time or both will result in a
breach of or constitute a default under, any agreement, indenture, mortgage,
deed of trust, equipment lease, instrument or other document to which Debtor or
the Iowa Tribe is a party, conflict with or require approval, authorization,
notice or consent under any law, order, rule, regulation, license or permit
applicable to Debtor or the Iowa Tribe of any court or any federal or state
government, regulatory body or administrative agency, or any other governmental
body having jurisdiction over Debtor or the Iowa Tribe or their properties, or
require notice, consent, approval or authorization by or registration or filing
with any person or entity (including, without limitation, any stockholder or


                                  Page 4 of 15

<PAGE>

creditor of Debtor) other than any notices to Debtor or the Iowa Tribe from
Secured Party required hereunder except as may be agreed to by Debtor or the
Iowa Tribe and Secured Party. Except for the Permitted Liens, none of the
Collateral is subject to any agreement, indenture, mortgage, deed of trust,
equipment lease, instrument or other document to which Debtor or the Iowa Tribe
is a party that may restrict or inhibit Secured Party's rights or ability to
sell or dispose of the Collateral or any part thereof after the occurrence of an
Event of Default (as defined herein).

     5. COVENANTS OF DEBTOR AND THE IOWA TRIBE. The Debtor and the Iowa Tribe
covenant and agree that:

          (a) Debtor will not move or permit to be moved the Collateral or any
portion thereof to any location other than that set forth in Section 4(f) hereof
or locations established in compliance with Section 5(b) hereof without the
prior written consent of the Secured Party and the prior filing of a financing
statement with the proper office and in the proper form to perfect or continue
the perfection (without loss of priority) of the security interests created
herein, which filing shall be satisfactory in form, substance and location to
Secured Party prior to such filing;

          (b) Debtor will not voluntarily or involuntarily change its name,
identity, corporate structure, or location of its chief executive office or any
of its other places of business, unless in any such case: (i) Debtor shall have
first received the prior written consent of Secured Party, (ii) Debtor shall
have executed and caused to be filed financing statements with the proper
offices and in the proper form to perfect or continue the perfection (without
loss of priority) of the security interests created herein, which filing shall
be satisfactory in form, substance and location to Secured Party prior to such
filing, and (iii) Debtor shall have delivered to Secured Party any other
documents required by Secured Party in a form and substance satisfactory to
Secured Party;

          (c) Intentionally Omitted;

          (d) Debtor and the Iowa Tribe will promptly, and in no event later
than 21 days after a request by Secured Party, procure or execute and deliver
all further instruments and documents (including, without limitation, notices,
legal opinions, financing statements, mortgagee waivers, landlord disclaimers
and subordination agreements) necessary or appropriate to and take any other
actions which are necessary or, in the judgment of Secured Party, desirable or
appropriate to perfect or to continue the perfection, priority and
enforceability of Secured Party's security interests in the Collateral, to
enable Secured Party to exercise and enforce its rights and remedies hereunder
with respect to any Collateral, to protect the Collateral against the rights,
claims or interests of third persons, or to effect or to assure further the
purposes and provisions of this Security Agreement, and will pay all reasonable
costs incurred in connection therewith. Without limiting the generality of the
foregoing, Debtor will: (i) mark conspicuously each item of chattel paper and
each other contract included in the Collateral with a legend, in form and
substance satisfactory to Secured Party, indicating that such chattel paper and
other contracts are subject to the security interests granted hereby; (ii)
execute and file such financing or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary or desirable,
which Secured Party may reasonably request in order to perfect and preserve the
perfection and priority of the security interests granted or purported to be
granted hereby; (iii) if any Collateral shall be evidenced by a promissory note
or other instrument or chattel paper (other than checks received by any Debtor
in the


                                  Page 5 of 15

<PAGE>

ordinary course of business), deliver and pledge to Secured Party such note or
instrument or chattel paper duly endorsed and accompanied by duly executed
instruments of transfer or assignment, all in form and substance reasonably
satisfactory to Secured Party; (iv) if any Collateral is at any time in the
possession or control of any warehouseman, bailee, consignee or any of Debtor's
agents or processors, Debtor shall notify such warehouseman, bailee, consignee,
agent or processor of the security interests created or purported to be created
hereby, shall cause such warehouseman, bailee, consignee, agent or processor to
execute any financing statements or other documents which Secured Party may
request, and, upon the request of Secured Party after the occurrence and during
the continuation of an Event of Default, shall instruct such person to hold all
such Collateral for Secured Party's account subject to Secured Party's
instructions; (v) deliver and pledge to Secured Party all securities and
instruments (other than checks received by Debtor in the ordinary course of
business) constituting Collateral duly endorsed and accompanied by duly executed
instruments of transfer or assignments, all in form and substance satisfactory
to Secured Party; and (vi) at the request of Secured Party, deliver to Secured
Party any and all certificates of title, applications for title or similar
evidence of ownership of all Collateral and shall cause Secured Party to be
named as lienholder on any such certificate of title or other evidence of
ownership;

          (e) without the prior written consent of Secured Party, Debtor and the
Iowa Tribe will not in any way encumber, or hypothecate, or create or permit to
exist, any lien, security interest, charge or encumbrance or adverse claim upon
or other interest in the Collateral, except for Permitted Liens, and the Debtor
and the Iowa Tribe will defend the Collateral against all claims and demands of
all persons at any time claiming the same or any interest therein, except as
expressly provided herein. Debtor and the Iowa Tribe will not permit any Lien
Notices to exist or be on file in any public office with respect to all or any
portion of the Collateral except, in each case, for Lien Notices of holders of
Permitted Liens or except as may have been filed by or for the benefit of
Secured Party relating to this Security Agreement or related agreements. Debtor
and the Iowa Tribe shall promptly notify Secured Party of any attachment or
other legal process levied against any of the Collateral and any information
received by any Debtor or the Iowa Tribe relative to the Collateral, which may
in any material way affect the value of the Collateral or the rights and
remedies of Secured Party in respect thereto;

          (f) without the prior written consent of Secured Party, Debtor or the
Iowa Tribe will not sell, transfer, assign (by operation of law or otherwise),
exchange or otherwise dispose of all or any portion of the Collateral or any
interest therein, except that the Debtor or the Iowa Tribe may sell worn-out or
obsolete equipment provided that the proceeds thereof are applied to the Secured
Obligations or used to purchase new collateral of equal or greater value and the
Secured Party shall be granted a first priority security interest therein. If
the proceeds of any such prohibited sale are notes, instruments, documents of
title, letters of credit or chattel paper, such proceeds shall be promptly
delivered to Secured Party to be held as Collateral hereunder (with all
necessary or appropriate endorsements). If the Collateral, or any part thereof
or interest therein, is sold, transferred, assigned, exchanged, or otherwise
disposed of in violation of these provisions, the security interest of Secured
Party shall continue in such Collateral or part thereof notwithstanding such
sale, transfer, assignment, exchange or other disposition, and Debtor and the
Iowa Tribe will hold the proceeds thereof in a separate account for Secured
Party's benefit. Debtor or the Iowa Tribe will, at Secured Party's request,
transfer such proceeds to Secured Party in kind;


                                  Page 6 of 15

<PAGE>

          (g) Secured Party is hereby authorized to file one or more financing
statements or fixture filings, and continuations thereof and amendments thereto,
relative to all or any part of the Collateral, without the signature of Debtor
or the Iowa Tribe where permitted by law;

          (h) Except as expressly permitted by the Management Contract, Debtor
and the Iowa Tribe will not enter into any indenture, mortgage, deed of trust,
contract, undertaking, document, instrument or other agreement, except for the
Management Contract and any documents, instruments or agreements related thereto
or issue any securities which may materially restrict or inhibit Secured Party's
rights or ability to sell or otherwise dispose of the Collateral or any part
thereof after the occurrence of an Event of Default;

          (i) The Debtor shall cause to be maintained insurance with respect to
the Project and Collateral as required by the Management Contract and naming
Secured Party as an additional insured, loss payee and mortgagee, if applicable.
Upon request, the Debtor shall provide to the Secured Party certificates of
insurance or copies of insurance policies evidencing that such insurance
satisfying the requirements of such Management Contract is in effect at all
times;

          (j) Except as expressly permitted by the Management Contract, the
Debtor and the Iowa Tribe will pay and discharge all taxes, assessments and
governmental charges or levies against the Collateral prior to delinquency
thereof and will keep the Collateral free of all unpaid claims and charges
(including claims for labor, materials and supplies) whatsoever;

          (k) Debtor and the Iowa Tribe will keep and maintain the Collateral in
good condition, working order and repair and from time to time will make or
cause to be made all repairs, replacements and other improvements in connection
therewith that are necessary or desirable toward such end. Debtor and the Iowa
Tribe will not misuse or abuse the Collateral, or waste or allow it to
deteriorate except for the ordinary wear and tear of its normal and expected use
in Debtor's business in accordance with Debtor's policies as then in effect
(provided that no changes are made to Debtor's policies as in effect on the date
hereof that would be materially adverse to the interests of the Secured Party),
and will comply with all laws, statutes and regulations pertaining to the use or
ownership of the Collateral. Debtor or the Iowa Tribe will promptly notify
Secured Party regarding any material loss or damage to any material Collateral
or portion thereof;

          (l) The Debtor will take all actions consistent with reasonable
business judgment or, upon the occurrence of an Event of Default, directed by
Secured Party in Secured Party's sole and absolute discretion, to create,
preserve and enforce any liens or guaranties available to secure or guarantee
payments due Debtor under any contracts or other agreements with third parties
which constitute Collateral, will not voluntarily permit any such payments to
become more than thirty (30) days delinquent and will in a timely manner record
and assign to Secured Party, to the extent and at the earliest time permitted by
law, any such liens and rights to under such guaranties;

          (m) Intentionally omitted;

          (n) Intentionally omitted;


                                  Page 7 of 15

<PAGE>

          (o) Secured Party shall have during normal business hours, with
reasonable notice, the right to enter into and upon any premises where any of
the Collateral or records with respect thereto are located for the purpose of
inspecting the same, performing any audit, making copies of records, observing
the use of any part of the Collateral, or otherwise protecting its security
interest in the Collateral;

          (p) Secured Party shall have the right at any time, but shall not be
obligated, to make any payments and do any other acts Secured Party may deem
necessary or desirable to protect its security interest in the Collateral,
including, without limitation, that after the occurrence of an Event of Default
the right to pay, purchase, contest or compromise any encumbrance, charge or
lien (including any Permitted Liens) applicable or purported to be applicable to
any Collateral hereunder, and whether prior to or after the occurrence of any
Event of Default, appear in and defend any action or proceeding purporting to
affect its security interest in and/or the value of any Collateral, and in
exercising any such powers or authority, the right to pay all expenses incurred
in connection therewith, including attorneys' fees. Debtor and the Iowa Tribe
hereby agree that each shall be bound by any such payment made or incurred or
act taken by Secured Party hereunder and shall reimburse Secured Party for all
reasonable payments made and expenses incurred under this Security Agreement,
which amounts shall be secured under this Security Agreement. Secured Party
shall have no obligation to make any of the foregoing payments or perform any of
the foregoing acts;

          (q) if Debtor shall become entitled to receive or shall receive any
certificate, instrument, option or rights, whether as an addition to, in
substitution of, or in exchange for any or all of the Collateral or any part
thereof, or otherwise, Debtor shall accept any such instruments as Secured
Party's agent, shall hold them in trust for Secured Party, and shall deliver
them forthwith to Secured Party in the exact form received, with Debtor's
endorsement when necessary or appropriate, or accompanied by duly executed
instruments of transfer or assignment in blank or, if requested by Secured
Party, an additional pledge agreement or security agreement executed and
delivered by Debtor, all in form and substance satisfactory to Secured Party, to
be held by Secured Party, subject to the terms hereof, as additional Collateral
to secure the obligations hereunder;

          (r) Secured Party is hereby authorized to pay all reasonable costs and
expenses incurred in the exercise or enforcement of its rights hereunder,
including attorneys' fees, and to apply any Collateral or proceeds thereof
against such amounts, and then to credit or use any further proceeds of the
Collateral in accordance herewith; provided however that if the Debtor is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor shall not be and Secured Party shall be responsible
for such related costs and expenses; and

          (s) Secured Party may take any actions permitted hereunder or in
connection with the Collateral by or through agents or employees and shall be
entitled to retain counsel and to act in reliance upon the advice of counsel
concerning all such matters.

     6. DEFAULTS AND REMEDIES


                                  Page 8 of 15

<PAGE>

     6.1 EVENTS OF DEFAULT. Each of the following occurrences shall constitute
an Event of Default:

          (a) Any material representation or warranty made by or on behalf of
the Debtor or the Iowa Tribe herein or in any report, certificate or other
document furnished by or on behalf of the Debtor or the Iowa Tribe pursuant to
this Agreement shall prove to be false or misleading in any material respect
when made or at any time shall fail to be true and correct in all material
respects.

          (b) The Debtor or the Iowa Tribe shall default in the due observance
or performance of any of its material obligations hereunder and such default
shall continue for thirty (30) days (unless a shorter or longer cure period is
provided under the terms of this Agreement) after written notice thereof has
been sent to the Debtor or the Iowa Tribe by Secured Party; provided, however,
that if the nature of such default (but specifically excluding defaults curable
by the payment of money) is such that it is not possible to cure such breach
within thirty (30) days, such 30-day period shall be extended for so long as the
Debtor or the Iowa Tribe shall be using diligent efforts to effect a cure
thereof but no more than an additional sixty (60) days.

          (c) A Material Breach (as defined in the Management Contract) or an
"Event of Default" (as defined in any other Transaction Document) shall occur.

     6.2 REMEDIES. Upon the occurrence and continuation of an Event of Default
hereunder, the Debtor expressly covenants and agrees that Secured Party may, at
its option, in addition to other rights and remedies provided herein or
otherwise available to it, without notice to or demand upon Debtor (except as
otherwise required herein), exercise any one or more of the rights as set forth
as follows:

          (a) declare all Secured Obligations to be immediately due and payable,
whereupon all Secured Obligations shall become and be immediately due and
payable;

          (b) if the Management Contract is terminated and either (i) the
Commencement Date (as defined in the Management Contract) has not occurred, or
(ii) the Debtor does not or at any time fails to continue operations of Class II
Gaming and/or Class III Gaming at the Project's Gaming Facility or any material
portion of the Project Facilities, Secured Party may immediately take possession
of any of the Collateral wherever it may be found or require the Debtor to
assemble the Collateral or any part thereof and make it available at one or more
places as Secured Party may designate, and to deliver possession of the
Collateral or any part thereof to Secured Party, who shall have full right to
enter upon any or all of Debtor's or the Iowa Tribe's places of business,
premises and property to exercise Secured Party's rights hereunder; and without
notice (except as specified below), sell the Collateral or any part thereof in
one or more parcels at one or more public or private sales, at any of Secured
Party's offices or elsewhere, at such time or times, for cash, on credit or for
future delivery, and at such price or prices and upon such other terms as shall
be commercially reasonable. The Debtor and the Iowa Tribe acknowledge and agree
that, to the extent notice of sale shall be required by law, at least ten (10)
days written notice to Debtor or the Iowa Tribe of the time and place of any
public sale or of the date on or after which any private sale is to be made
shall constitute reasonable notification. Any public sale shall be held at such
time or times


                                  Page 9 of 15

<PAGE>

during ordinary business hours and at such place or places as Secured Party may
fix in the notice of such sale. Notwithstanding the foregoing, Secured Party
shall not be obligated to make any sale of Collateral regardless of notice of
sale having been given. Secured Party may, without notice or publication,
adjourn any public or private sale, or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale or, with respect to
a private sale, after which such sale may take place, and any such sale may,
without further notice, be made at the time and place to which it was so
adjourned or, with respect to a private sale, after which such sale may take
place. Each purchaser at any such sale shall hold the property sold free from
any claim or right on the part of Debtor or the Iowa Tribe, and the Debtor and
the Iowa Tribe hereby waives, to the full extent permitted by law, all rights of
stay and/or appraisal which Debtor or the Iowa Tribe now has or may at any time
in the future have under any rule of law or statute now existing or hereafter
enacted. The Debtor or the Iowa Tribe also hereby waive any claims against
Secured Party arising by reason of the fact that the price at which any
Collateral may have been sold at a private sale was less than the price which
might have been obtained at a public sale, even if Secured Party accepts the
first offer received and does not offer such Collateral to more than one
offeree. The parties hereto agree that the notice provisions, method, manner and
terms of any sale, transfer or disposition of any Collateral in compliance with
the terms set forth herein or any other provision of this Security Agreement are
commercially reasonable;

          (c) exercise any or all of the rights and remedies provided for by the
Oklahoma Uniform Commercial Code, applicable law or by other agreement,
specifically including, without limitation, the right to recover the attorneys'
fees and other expenses incurred by Secured Party in the enforcement of this
Security Agreement or in connection with the Debtor's redemption of the
Collateral; provided however that if the Debtor or the Iowa Tribe is the
prevailing party in any action or proceeding seeking enforcement of this
Agreement, then the Debtor or the Iowa Tribe shall not be and Secured Party
shall be responsible for such related costs and expenses. Secured Party may
exercise its rights under this Security Agreement independently of any other
collateral or guaranty that Debtor or the Iowa Tribe may have granted or
provided to Secured Party in order to secure payment and performance of the
Secured Obligations, and Secured Party shall be under no obligation or duty to
foreclose or levy upon any other collateral given by Debtor or the Iowa Tribe to
secure any Secured Obligation or to proceed against any guarantor before
enforcing its rights under this Security Agreement. The Debtor or the Iowa Tribe
shall reimburse Secured Party upon demand for, or Secured Party may apply any
proceeds of Collateral to, the reasonable costs and expenses (including
attorneys' fees, transfer taxes and any other charges) incurred by Secured Party
in connection with any sale, disposition, repair, replacement, alteration,
addition, improvement or retention of any Collateral hereunder; provided however
that if the Debtor or the Iowa Tribe is the prevailing party in any action or
proceeding seeking enforcement of this Agreement, then the Debtor or the Iowa
Tribe shall not be and Secured Party shall be responsible for such related costs
and expenses;

          (d) the powers conferred on the Secured Party by this Section 6.2 and
otherwise in this Agreement are solely to protect the Secured Party's interests
in the Collateral and shall not impose any duty upon it to exercise any such
powers. The Secured Party shall be accountable only for amounts that it actually
receives as a result of the exercise of such powers, and neither the Secured
Party nor any of their officers, directors, trustees, employees, representatives
or


                                 Page 10 of 15

<PAGE>

agents shall, in the absence of willful misconduct or gross negligence, be
responsible to the Debtor for any act or failure to act pursuant to this Section
6.2 or otherwise pursuant to this Agreement; and

          (e) the Secured Party's sole duty with respect to the custody,
safekeeping and preservation of the Collateral, under Section 9-207 of the Code
or otherwise, shall be to deal with it in the same manner as the Secured Party
deals with similar property for their own account. Neither the Secured Party nor
any of their directors, officers, trustees, employees, representatives, or
agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Debtor or otherwise.

     7. MISCELLANEOUS PROVISIONS

          (a) Notices. All notices, requests, approvals, consents and other
communications required or permitted to be made hereunder shall, except as
otherwise provided, be in writing and may be delivered personally or sent by
telegram, telecopy, facsimile, telex, first class mail or overnight courier,
postage prepaid, to the parties addressed as follows:

If to Debtor:           Iowa Tribe of Oklahoma
                        a federally-chartered corporation
                        RR 1, P.O. Box 721
                        Perkins. OK 74059
                        Attention: Chairman

     With a copy to:    David McCullough, Esq.
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112

If to the Iowa Tribe:   Iowa Tribe of Oklahoma
                        a federally recognized Indian tribe
                        RR 1, P.O. Box 721
                        Perkins, OK 74059
                        Attention: Chairman

     With a copy to:    David McCullough, Esq.
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112

If to Secured Party:    Lakes Iowa Management, LLC
                        130 Cheshire Lane
                        Minnetonka, MN
                        Attention: Timothy J. Cope


                                  Page 11 of 15

<PAGE>

     With a copy to:    Kevin C. Quigley, Esq.
                        Hamilton Quigley Twait & Foley PLC
                        W1450 First National Bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

          and           Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140

Such notices, requests and other communications sent as provided hereinabove
shall be effective when received by the addressee thereof, unless sent by
registered or certified mail, postage prepaid, in which case they shall be
effective exactly three (3) business days after being deposited in the United
States mail. The parties hereto may change their addresses by giving notice
thereof to the other parties hereto in conformity with this section.

          (b) Headings. The various headings in this Security Agreement are
inserted for convenience only and shall not affect the meaning or interpretation
of this Security Agreement or any provision hereof.

          (c) Amendments. This Security Agreement or any provision hereof may be
changed, waived, or terminated only by a statement in writing signed by the
party against which such change, waiver or termination is sought to be enforced,
and then any such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

          (d) No Waiver. No failure on the part of Secured Party to exercise,
and no delay in exercising, and no course of dealing with respect to, any power,
privilege or right under this Security Agreement or any related agreement shall
operate as a waiver thereof nor shall any single or partial exercise by Secured
Party of any power, privilege or right under this Security Agreement or any
related agreement preclude any other or further exercise thereof or the exercise
of any other power, privilege or right. The powers, privileges and rights in
this Security Agreement are cumulative and are not exclusive of any other
remedies provided by law. No waiver by Secured Party of any default hereunder
shall be effective unless in writing, nor shall any waiver operate as a waiver
of any other default or of the same default on a future occasion.

          (e) Binding Agreement. All rights of Secured Party hereunder shall
inure to the benefit of its successors and assigns. Subject to the terms of the
Management Contract, neither Debtor nor the Iowa Tribe shall assign any of its
interest under this Security Agreement without the prior written consent of
Secured Party. Any purported assignment inconsistent with this provision shall,
at the option of Secured Party, be null and void.

          (f) Entire Agreement. This Security Agreement, together with any other


                                 Page 12 of 15

<PAGE>

agreement executed in connection herewith, is intended by the parties as a final
expression of their agreement and is intended as a complete and exclusive
statement of the terms and conditions thereof. Acceptance of or acquiescence in
a course of performance rendered under this Security Agreement shall not be
relevant to determine the meaning of this Security Agreement even though the
accepting or acquiescing party had knowledge of the nature of the performance
and opportunity for objection.

          (g) Severability. If any provision or obligation of this Security
Agreement should be found to be invalid, illegal, or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining
provisions and obligations or any other agreement executed in connection
herewith, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby and shall nonetheless remain in
full force and effect to the maximum extent permitted by law.

          (h) Survival of Provisions. All representations, warranties and
covenants of Debtor and the Iowa Tribe contained herein shall survive the
execution and delivery of this Security Agreement, and shall terminate only upon
the termination of this Security Agreement pursuant to Subsection 7(k) hereof.

          (i) Power of Attorney. The Debtor and the Iowa Tribe hereby
irrevocably appoint Secured Party its attorney-in-fact, which appointment is
coupled with an interest, with full authority in the place and stead of Debtor
and the Iowa Tribe and in the name of each, Secured Party or otherwise, from
time to time in Secured Party's discretion (a) to execute and file financing and
continuation statements (and amendments thereto and modifications thereof) on
behalf and in the name of the Debtor and the Iowa Tribe with respect to the
security interests granted or purported to be granted hereby, (b) to take any
action and to execute any instrument which Secured Party may deem necessary or
advisable to exercise its rights under Section 5(p) hereunder, and (c) upon the
occurrence and during the continuance of an Event of Default, to take any action
and to execute any instrument which Secured Party may deem necessary or
advisable to accomplish the purposes of this Security Agreement, including,
without limitation:

               (i) to obtain and adjust insurance required to be paid to Secured
Party pursuant hereto;

               (ii) to ask, demand, collect, sue for, recover, compound, receive
and give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

               (iii) to receive, endorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clauses (i) and
(ii) above;

               (iv) to sell, convey or otherwise transfer any item of Collateral
to any purchaser thereof; and

               (v) to file any claims or take any action or institute any
proceedings which Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of
Secured Party with respect to any of the Collateral.


                                 Page 13 of 15

<PAGE>

          (j) Counterparts. This Security Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
facsimile, each of which when so executed and delivered shall be deemed an
original, but all of which shall together constitute one and the same agreement.

          (k) Termination of Agreement. Unless earlier terminated pursuant to
Section 3 hereof, this Security Agreement and the security interest hereunder
shall not terminate until full and final payment and performance of all
indebtedness and obligations secured hereunder. At such time, Secured Party
shall reassign and redeliver to Debtor or the Iowa Tribe all of the Collateral
hereunder which has not been sold, disposed of, retained or applied by Secured
Party in accordance with the terms hereof, and execute and deliver to Debtor or
the Iowa Tribe such documents as Debtor may reasonably request to evidence such
termination. Such reassignment and redelivery shall be without warranty by or
recourse to Secured Party, and shall be at the expense of Debtor or the Iowa
Tribe; provided, however, that this Security Agreement (including all
representations, warranties and covenants contained herein) shall continue to be
effective or be reinstated, as the case may be, if at any time any amount
received by Secured Party in respect of the indebtedness and obligations secured
hereunder is rescinded or must otherwise be restored or returned by Secured
Party upon or in connection with the insolvency, bankruptcy, dissolution,
liquidation or reorganization of Debtor or the Iowa Tribe or any other person or
upon or in connection with the appointment of any intervenor or conservator of,
or trustee or similar official for, Debtor, or the Iowa Tribe or any other
person or any substantial part of its assets, or otherwise, all as though such
payments had not been made.

          (l) Sovereign Immunity Waiver; Arbitration; Submission to
Jurisdiction. This Agreement constitutes the Security Agreement as defined and
referred to in the Management Contract. As such and without limiting the scope
of such agreements, the provisions of Section 9.10 and Article 10 of the
Management Contract apply to this Agreement and are hereby incorporated by
reference, including, without limitation, the limited sovereign immunity waiver,
limitations on recourse and arbitration provisions contained therein and the
Resolution of Limited Waiver attached thereto. This Agreement will be governed
by the internal laws of the State of Oklahoma without giving effect to its
conflict of laws principles. The parties hereto may not change the law governing
this Agreement without express written consent of the Debtor and Secured Party.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]


                                 Page 14 of 15

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Security
Agreement to be duly executed and delivered under seal by their respective
undersigned duly authorized officers as of the date first above written.

                                        DEBTOR:
                                        IOWA TRIBE OF OKLAHOMA
ATTEST:                                 a federally-chartered corporation


By: /s/ Eugene Big Soldier Jr           By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr             Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Tribal Secretary                   Title: Chairperson
     --------------------------------          ---------------------------------


                                        IOWA TRIBE OF OKLAHOMA
ATTEST:                                 a federally recognized Indian tribe


By: /s/ Eugene Big Soldier Jr           By: /s/ Phoebe O'Dell
    ---------------------------------       ------------------------------------
Name: Eugene Big Soldier Jr             Name: Phoebe O'Dell
      -------------------------------         ----------------------------------
Its: Tribal Secretary                   Title: Chairperson
     --------------------------------          ---------------------------------


                                        SECURED PARTY:
ATTEST:                                 LAKES IOWA MANAGEMENT, LLC


By: /s/ Rob Wyre                        By: /s/ Timothy Cope
    ---------------------------------       ------------------------------------
Name: Rob Wyre                          Name: Timothy J. Cope
      -------------------------------   Title: President and
Its: SR. VP Ops                                Chief Financial Officer
     --------------------------------

<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT
                           (IOWA COLLATERAL LOCATIONS)

1.   NEAR INTERSECTION OF STATE HIGHWAY 177 & U.S. HIGHWAY 66 WELLSTON, OKLAHOMA
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.142
<SEQUENCE>77
<FILENAME>c92713exv10w142.txt
<DESCRIPTION>INDEMNITY AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.142

                               INDEMNITY AGREEMENT
                                  (NEW PROJECT)

     This Indemnity Agreement is dated as of January 27, 2005, by and between
the Iowa Tribe of Oklahoma, a federally-chartered corporation ("Iowa Corp"),
created pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
1936 (49 Stat. 1967), as issued on January 4, 1938 by the Secretary of the
Interior and ratified on February 5, 1938 located in Iowa Indian Country within
the physical boarders of the State of Oklahoma, with business offices located at
RR1, P.O. Box 721, Perkins, Oklahoma 74059, the Iowa Tribe of Oklahoma, a
federally-recognized Indian tribe with a Constitution approved and ratified
under the Oklahoma Indian Welfare Act, and Lakes Iowa Management, LLC, a
Minnesota limited liability company (hereinafter referred to as "Lakes"), whose
business office is located at 130 Cheshire Lane, Minnetonka, Minnesota 55305.

                                   WITNESSETH:

          WHEREAS, Lakes has entered into an agreement with Iowa Corp and the
Iowa Tribe dated January 27, 2005 ("Management Contract"), pursuant to which
Lakes is to manage the Gaming Facility and related Ancillary Facilities for a
new project to be owned by Iowa Corp on behalf of the Iowa Tribe; and

          WHEREAS, Lakes, Iowa Corp and the Iowa Tribe have required each to
execute and deliver this Indemnity Agreement to each other to induce Lakes to
assist with management of the Project Facilities and to induce Iowa Corp and the
Iowa Tribe to allow Lakes to comply with Environmental Laws in the management of
the Project Facilities;

          NOW, THEREFORE, for valuable consideration, the receipt of which is
hereby acknowledged, Iowa and Lakes agree as follows:

     1. RECITALS TRUE. The above recitals are true.

     2. DEFINITIONS. Capitalized terms used but not otherwise defined herein and
defined in the Management Contract shall have the same meaning herein as
therein. As used herein, the following additional terms shall have the following
meanings:

     (a) Environmental Laws: Together: (i) the Resource Conservation Recovery
Act, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C.
Sections 6901 et seq.; (ii) the Comprehensive Environmental Response,
Compensation and Liability Act, as amended by the Superfund Amendments and
Reauthorization Act, 42 U.S.C. Sections 9601 et seq.; (iii) the Clean Water Act,
33 U.S.C. Sections 466 et seq. and 33 U.S.C. Sections 1344 et seq.; (iv) the
Safe Drinking Water Act, 14 U.S.C. Sections 1401-1450; (v) the Toxic Substances
Control Act, 15 U.S.C. Sections 2601-2629; (vi) the Hazardous Materials
Transportation Act, 49 U.S.C. Sections 1801 et seq.; (vii) all applicable
Oklahoma environmental laws; (viii) the Clean Air Act, 42 U.S.C. Sections 7401
et seq.; (ix) any other applicable federal, state, local or tribal environmental
laws or laws related to the regulation of Hazardous Materials; (x) any
applicable local, state or federal rules or regulations promulgated pursuant to
items (i) through (ix) and any similar local, state or federal laws, rules,
ordinances or regulations either in existence as of the date hereof, or enacted
or promulgated after the date of this Agreement, that concern the
transportation, storage, placement, handling, treatment, release, discharge,
generation, manufacture, production, disposal, management, control, discharge,
treatment, containment, and/or removal of substances or materials that are or
may become a threat to public health or the environment; or (xi) any common law
theory involving materials or substances which are or are alleged to be
hazardous to human health or the environment based on nuisance, trespass,
negligence, strict liability or other tortious conduct.


                                       -1-

<PAGE>

     (b) Hazardous Materials: Together: (i) any substance, material, or matter
that may give rise to liability under any Environmental Laws; (ii) any
"hazardous substance" listed in the U.S. Department of Transportation Table (49
C.F.R. 172.101), as the same may be amended from time to time; and (iii)
asbestos, lead paint, pcb's, urea formaldehyde foam insulation, radioactive
materials and any materials, the removal of which is required or the maintenance
of which is prohibited or penalized.

     (c) Lakes Indemnitee or Indemnitees: Lakes, its affiliates and subsidiaries
and any parent entities, together with their respective officers, directors,
shareholders, employees, agents, attorneys and other representatives, and their
successors and assigns. Each reference to any Lakes Indemnitee herein shall
refer jointly, severally and individually to each such party.

     (d) Iowa Indemnitee or Indemnitees: Iowa Corp and the Iowa Tribe, their
affiliates and subsidiaries and any parent entities, together with their
respective officers, directors, shareholders, employees, agents, attorneys and
other representatives, and their successors and assigns. Each reference to any
Iowa Indemnitee herein shall refer jointly, severally and individually to each
such party.

     (e) Project Claims: Any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, costs, expenses and disbursements (including,
but not limited to, all reasonable attorneys' fees and expenses and all other
professionals' or consultants' reasonable expenses incurred in investigating,
preparing for, serving as a witness in or defending against any action or
proceeding, whether actually commenced or threatened, which may be asserted
against any Lakes or Iowa Indemnitee), arising from, in respect of, as a
consequence of, or in connection with any claims and matters (excluding
Environmental Losses) described in Sections 2.9, 7.1, 7.2, 7.3 and 7.4 of the
Management Contract, each whether now existing or hereafter arising.

     (f) Environmental Losses: Any and all liabilities, obligations, losses,
damages, penalties, claims, actions, suits, costs, expenses and disbursements
(including, but not limited to, all reasonable attorneys' fees and expenses and
all other professionals' or consultants' reasonable expenses incurred in
investigating, preparing for, serving as a witness in or defending against any
action or proceeding, whether actually commenced or threatened, which may be
asserted against any indemnitees), arising from, in respect of, as a consequence
of, or in connection with any of the following: (i) the remediation of any
Hazardous Material placed on or released from the Gaming Facility Site, Project
Facilities or the lands upon which they are located as may be required by law,
whether such removal is done or completed by Iowa, Lakes, or any other person or
entity; (ii) claims asserted at any time (prior to or after the date of this
Agreement) by any person or entity (including, without limitation, any
governmental agency or quasi-governmental authority, board, bureau, commission,
department, instrumentality or public body, court, or administrative tribunal (a
"Government Agency"), in connection with or in any way arising out of the
presence, storage, use, disposal, generation, transportation, or treatment of
any Hazardous Material on, in or under the Gaming Facility Site, Project
Facilities or the lands upon which they are located; (iii) the violation or
claimed violation of any Environmental Laws in regard to the Gaming Facility
Site, Project Facilities or the lands upon which they are located; (iv) the
preparation of an environmental audit on the Gaming Facility Site, Project
Facilities or the lands upon which they are located, whether conducted or
authorized by indemnitor, an indemnitee, or a third party; (v) the violation or
claimed violation of Oklahoma environmental laws, as a result of the condition
of the Gaming Facility Site, Project Facilities or the lands upon which they are
located, or any other applicable federal, state, local or tribal environmental
law or laws relating to the regulation of Hazardous Materials and the removal
from the Gaming Facility Site, Project Facilities or the lands upon which they
are located of paint, plaster, soil and other accessible material containing
levels of lead which are in violation of applicable law, each whether now
existing or hereafter arising.


                                       -2-

<PAGE>

     (g) Indemnified Obligations. With respect to Iowa Indemnities, means the
Iowa Project Indemnity Obligations and the Iowa Environmental Indemnity
Obligations. With respect to Lakes Indemnities, means the Lakes Project
Indemnity Obligations and Lakes Environmental Indemnity Obligations.

     3. INDEMNITY.

     (a) Project Claims. Iowa Corp and the Iowa Tribe agree to indemnify and to
hold each Lakes Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Lakes Indemnitees resulting from or due to any Project Claims
excluding any such claims or losses resulting from a Lakes Indemnitee's gross
negligence or willful or criminal misconduct (individually and collectively, the
"Iowa Project Indemnity Obligations"). Lakes agrees to indemnify and to hold
each Iowa Indemnitee harmless from any and all claims, causes of action,
damages, penalties, fees and costs which may be asserted against, or incurred
by, any of the Iowa Indemnitees resulting from Lakes' gross negligence or
willful or criminal misconduct (individually and collectively, the "Lakes
Project Indemnity Obligations").

     (b) Environmental Claims. Lakes agrees to indemnify and to hold each Iowa
Indemnitee harmless from any and all claims, causes of action, damages,
penalties, fees and costs which may be asserted against, or incurred by, any of
the Iowa Indemnitees resulting from or due to any Environmental Losses arising
after the date of this Indemnity Agreement resulting from or due to Lakes' gross
negligence or willful or criminal misconduct (individually and collectively, the
"Lakes Environmental Indemnity Obligations"). Iowa Corp and the Iowa Tribe agree
to indemnify and to hold each Lakes Indemnitee harmless from any and all claims,
causes of action, damages, penalties, fees and costs which may be asserted
against, or incurred by, any of the Lakes Indemnitees resulting from or due to
any Environmental Losses; excluding however any Environmental Losses arising
after the date of this Indemnity Agreement that result from Lakes gross
negligence or willful or criminal misconduct (individually and collectively, the
"Iowa Environmental Indemnity Obligations").

     (c) Iowa Corp's and the Iowa Tribe's duty to indemnify and hold harmless
includes, but is not limited to, loss or liability asserted in proceedings or
actions commenced by any person (including, but not limited to, any federal,
state, or local governmental agency or entity) before any court or
administrative agency asserting a claim for which Iowa must indemnify Lakes
Indemnitees under this section. Lakes' duty to indemnify and hold harmless
includes, but is not limited to, loss or liability asserted in proceedings or
actions commenced by any person (including, but not limited to, any federal,
state, or local governmental agency or entity) before any court or
administrative agency asserting a claim for which Lakes must indemnify Iowa
Indemnitees under this section.

     (d) Each Lakes Indemnitee agrees that it shall not pay any Project Claim
asserted by any party without first offering Iowa the opportunity and right to
assume the defense of any and all related actions or proceedings, but the
foregoing is not intended to restrict any Lakes Indemnitee's ability to obtain
reimbursement for any cost, expenses and related disbursements incurred in
connection with the investigation or defense of such claim or loss. Each Iowa
Indemnitee agrees that it shall not pay any Project Claim asserted by any party
without first offering Lakes the opportunity and right to assume the defense of
any and all related actions or proceedings, but the foregoing is not intended to
restrict any Iowa Indemnitee's ability to obtain reimbursement for any cost,
expenses and related disbursements incurred in connection with the investigation
or defense of such claim or loss.

     (e) Iowa Corp's and the Iowa Tribe's obligations to indemnify and hold the
Lakes Indemnitees harmless hereunder shall survive any termination or expiration
of the Management Contract and the repayment and/or satisfaction of all
obligations now or hereafter owed by Iowa to Lakes under the Management Contract
and any other instruments, documents or agreements related thereto. Lakes'
obligations to indemnify and hold the Iowa Indemnitees harmless hereunder shall
survive any termination or expiration of the Management


                                       -3-

<PAGE>

Contract and the repayment and/or satisfaction of all obligations now or
hereafter owed by Lakes to Iowa Corp or the Iowa Tribe under the Management
Contract and any other instruments, documents or agreements related thereto.

     4. ADVANCES UNDER OPERATING NOTE. Notwithstanding the foregoing and without
limiting the rights of Lakes under the Management Contract, all Project Claims
and Environmental Claims ultimately determined to be due from but not paid by
Iowa Corp or the Iowa Tribe on demand by any of the Lakes Indemnitees, shall be
deemed to be an Advance made by Lakes to Iowa Corp under the terms of the
Operating Note, shall accrue interest from the date incurred and shall continue
to be immediately due and payable. Notwithstanding the foregoing and without
limiting the rights of Iowa Corp or the Iowa Tribe under the Management
Contract, all Project Claims and Environmental Claims ultimately determined to
be due from but not paid by Lakes on demand by any Iowa Indemnitees shall be
deemed to be a prepayment made by Iowa Corp to Lakes under the terms of the
Operating Note; if the aggregate amount of the Project Claims or Environmental
Claims exceeds the outstanding balance of the Operating Note, but only to the
extent of the outstanding amount under the Operating Note.

     5. OBLIGATION TO DEFEND.

     (a) Assumption of Defense. Upon request of any indemnitee, the indemnitor
shall be bound to defend any and all actions or proceedings that may be brought
against such indemnitee in connection with or arising out of any Indemnified
Obligations and the matters covered by this Agreement, and indemnitee shall give
written notice to the indemnitor of any litigation or proceedings pending,
threatened or commenced (whether or not served) against the indemnitee in
connection with any Indemnified Obligations. If indemnitor is defending an
indemnitee, indemnitor may settle the claim only with the indemnitee's prior
written consent, such consent not to be unreasonably withheld if the indemnitee
is not subject to any further liabilities, obligations, restrictions or
prohibitions with respect to said claim.

     (b) Delivery of Acknowledgment. Within 30 days from the date of receipt by
indemnitor from any indemnitee of a request to defend (which request shall refer
to such 30-day time period), indemnitor must acknowledge in a writing its duty
to defend and that such claim is covered in its entirety by this Agreement (the
"Acknowledgment") or if in the judgment of the indemnitor such claim is not
covered in its entirety by this Agreement, the statement of indemnitor to such
effect including its reasons for such judgment in reasonable detail; provided,
however, that until the Indemnitee receives the Acknowledgment, the Indemnitee
shall be entitled to defend such claim and Indemnitor shall be bound in the
manner set forth in Section 5(d) hereof.

     (c) Conduct of Defense; Participation by Indemnitee. If indemnitor is
defending an indemnitee, such defense shall be conducted by reputable attorneys
retained by indemnitor, reasonably satisfactory to said indemnitee, at
indemnitor's sole cost and expense. In addition, said indemnitee shall have the
right to participate in such proceedings at said indemnitee's sole cost and
expense and to be represented by attorneys in addition to the attorneys retained
by indemnitor of said indemnitee's own choosing and at said indemnitee's sole
cost and expense, except that if the Indemnitee reasonably concludes, by
applying applicable standards of professional responsibility, that the interests
of indemnitee and of indemnitor in the action conflict in such a manner as to
require retention of separate counsel for the indemnitee, indemnitor shall
reimburse indemnitee its reasonable fees for separate counsel chosen by the
indemnitee. Notwithstanding the foregoing, if an indemnitee, at any time,
refuses to enter into a settlement agreement negotiated by indemnitor or its
counsel, indemnitor shall no longer be liable for an adverse judgment against
such indemnitee to the extent that such adverse judgment exceeds said settlement
amount and such indemnitee shall be liable for all of its defense costs after
such refusal.

     (d) Indemnitor's Failure to Defend. If indemnitor fails to deliver the
Acknowledgment or fails to choose counsel reasonably satisfactory to the
indemnitee, indemnitor shall not thereafter be entitled to elect to


                                       -4-

<PAGE>

defend such action, and indemnitor shall be bound by and shall be conclusively
liable for the results obtained by the indemnitee, including without limitation
the amount of any judgment or good faith out-of-court settlement or compromise
and all costs and reasonable fees of counsel incurred by the indemnitee in
connection therewith, but subject always to the scope and limitations expressly
set forth in this Agreement.

     (e) Defense by Indemnitee. If an action or proceeding is brought against an
indemnitee or to which an indemnitee may be a party, and such indemnitee elects
to conduct its own defense because indemnitor fails to choose counsel reasonably
satisfactory to said indemnitee, indemnitor shall be conclusively liable for the
results obtained by the indemnitee, including without limitation the amount of
any judgment or good faith, out-of-court settlement or compromise. In addition,
indemnitor shall be liable for any and all costs and expenses, including, but
not limited to, all attorneys' fees, that said indemnitee incurs.

     6. ARBITRATION; LIMITED WAIVER OF SOVEREIGN IMMUNITY. Any disputes under
this Indemnification Agreement shall be subject to the dispute resolution and
arbitration provisions as provided in Article 10 of the Management Contract and
be resolved in the venues provided in Article 10 of the Management Contract. The
limited waiver of sovereign immunity in Section 9.10 of the Management Contract
by Iowa Corp and the Iowa Tribe shall apply to this Agreement.

     7. LIMITED RECOURSE. The liability and obligations of IowaCorp and the Iowa
Tribe under or relating to this Agreement shall always be joint and several and
shall be Limited Recourse, and in no instance shall any enforcement of any kind
whatsoever be allowed against any assets of Iowa Corp or the Iowa Tribe other
than the limited assets of Iowa Corp and the Iowa Tribe specified in the
definition of the term "Limited Recourse" in the Management Contract.

     8. CAPTIONS, GENDER, AND NUMBER. Any section or paragraph, title or caption
contained in this Agreement is for convenience only and shall not be deemed a
part of this Agreement. As used in this Agreement, the masculine, feminine or
neuter gender, and the singular or plural number, shall each be deemed to
include the others whenever the context so allows.

     9. FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of an
indemnitee in the exercise of any power, right or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
power, right or privilege preclude any other or further exercise of any such
power, right of privilege. All powers, rights and privileges hereunder are
cumulative to, and not exclusive of, any powers, rights or privileges otherwise
available.

     10. GOVERNING LAW. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Oklahoma without giving effect to its
conflict of laws principles.

     11. AMENDMENTS, ASSIGNMENTS, ETC. Any provision of this Agreement may be
amended if, but only if, such amendment is in writing and is signed by each of
the parties hereto. No modification shall be implied from course of conduct.
This Agreement shall be binding on and inhered to the benefit of each of the
parties hereto and their respective successors and assigns, subject to the same
restrictions on assignability as set forth in the Management Contract. This
Agreement may be executed in separate counterparts and by facsimile and such
counterparts shall be deemed to constitute one binding document.

     12. NOTICES. Any notice or demand required to be given under this Agreement
shall be given in the same manner and shall be deemed effective in accordance
with the terms set forth in Section 9.3 of the Management Contract.

                 (Balance of this page intentionally left blank)


                                       -5-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Indemnity Agreement
to be executed under seal as of the 27th day of January, 2005

                                        Lakes Iowa Management, LLC


                                        By: /s/ Timothy Cope
                                            ------------------------------------
                                        Name: Timothy Cope
                                              ----------------------------------
                                        Its: President
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Rob Wyre
                                            ------------------------------------
                                        Name: Rob Wyre
                                              ----------------------------------
                                        Its: SR VP OPS
                                             -----------------------------------


                                        Iowa Tribe of Oklahoma
                                        a federally-chartered corporation


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairperson
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr
                                              ----------------------------------
                                        Its: Tribal Secretary
                                             -----------------------------------


                                        Iowa Tribe of Oklahoma
                                        a federally recognized Indian tribe


                                        By: /s/ Phoebe O'Dell
                                            ------------------------------------
                                        Name: Phoebe O'Dell
                                              ----------------------------------
                                        Its: Chairperson
                                             -----------------------------------

                                        ATTEST:


                                        By: /s/ Eugene Big Soldier Jr
                                            ------------------------------------
                                        Name: Eugene Big Soldier Jr
                                              ----------------------------------
                                        Its: Tribal Secretary
                                             -----------------------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.143
<SEQUENCE>78
<FILENAME>c92713exv10w143.txt
<DESCRIPTION>TRIBAL AGREEMENT (NEW PROJECT)
<TEXT>
<PAGE>
                                                                  Exhibit 10.143

                                TRIBAL AGREEMENT
                      (LAKES IOWA MANAGEMENT - NEW PROJECT)

     THIS TRIBAL AGREEMENT (hereinafter referred to as the "Agreement") is made
as of January 27, 2005 ("Effective Date") by and among the Iowa Tribe of
Oklahoma ("Iowa Tribe"), a federally recognized Indian tribe, and Lakes Iowa
Management, LLC, a Minnesota limited liability company ("Lakes Management").

                                    RECITALS

     A. The Iowa Tribe is a federally recognized Indian tribe eligible for the
special programs and services provided by the United States to Indian tribes,
and is recognized as possessing and exercising powers of self-government. The
Iowa Tribe, pursuant to Section 3 of the Oklahoma Indian Welfare Act of June 26,
1936 (49 Stat. 1967), was issued a corporate charter for Iowa Corp on January 4,
1938 by the Secretary of the Interior and said corporate charter was ratified by
the Iowa Tribe on February 5, 1938. Iowa Corp is vested with sovereign immunity,
and is the entity that controls and manages the economic affairs of the Iowa
Tribe, including tribal gaming operations.

     B. Lakes Consulting has entered into a management agreement with Iowa Corp
and the Iowa Tribe dated January 27, 2005 (as amended from time to time, the
"Management Contract"), pursuant to which Lakes Management is to provide certain
management services to Iowa Corp with respect to certain "Project Facilities"
concerning a new project with specified gaming operations and related amenities
to be developed in Oklahoma, now or hereafter owned by Iowa Corp on behalf of
the Iowa Tribe as described with specificity therein.

     C. Pursuant to the terms of the Management Contract, the Iowa Tribe is
required to execute and deliver this Agreement to induce Lakes Management to
enter into the Management Contract together with certain additional documents
and agreements referred to therein or related thereto.

     D. The Iowa Tribe and Lakes Management intend that this Agreement shall be
operative and binding upon the date of execution by the parties (the "Effective
Date").

     NOW, THEREFORE, in consideration of the hereinafter mutual promises and
covenants, and for other good and valuable consideration as set forth herein,
the receipt and sufficiency of which are expressly acknowledged, the Iowa Tribe
and Lakes Management agree as follows:


                                       1

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

     Except as otherwise defined below or in the recitals to this Agreement,
terms used in this Agreement shall have the meanings set forth in the Management
Contract and/or the other documents and agreements executed by Iowa with respect
thereto:

     "Claim" means any dispute, claim, question, or disagreement between either
the Iowa Tribe and any of Lakes Management or any of its Affiliates that is
directly or indirectly related to this Agreement, any of the other Transaction
Documents, a Gaming Project or any Project Facilities, whether arising under law
or in equity, whether arising as a matter of contract or a tort, and whether
arising during or after the expiration of this Agreement or any of the other
Transaction Documents.

     "Gaming Project" shall have the meaning set forth in Section 2.1(n) hereof.

     "Iowa Entities" means individually and collectively, each of Iowa Corp and
the Iowa Tribe.

     "Transaction Documents" means individually and collectively, this Agreement
and each of the Management Contract, the Operating Note, the security
agreements, dominion account agreements, mortgages, resolutions of limited
waiver and each other document or instrument now or hereafter executed by any of
Iowa Corp and/or the Iowa Tribe in favor of Lakes Management or its respective
Affiliates and related thereto or hereto or any Gaming Projects.

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties. The Iowa Tribe represents and
warrants to Lakes Management that:

     (a)  Organization. The Iowa Tribe is a federally recognized Indian tribe
          eligible to conduct gaming within the meaning of IGRA.

     (b)  Authority and Power. Each of Iowa Corp and Iowa Tribe has taken all
          action required by tribal or other law without the necessity of
          further action as is necessary to authorize the applicable Iowa Entity
          to execute, deliver and perform each of the Transaction Documents that
          such Iowa Entity is party to. Each Iowa Entity that is a party to any
          of the Transaction Documents has all requisite power and authority to
          enter into the Transaction Documents to the extent a party thereto and
          to perform its respective obligations thereunder, and to consummate
          all other transactions contemplated thereby.


                                       2

<PAGE>

     (c)  Binding Obligations. Each of Transaction Documents (i) has been duly
          executed and delivered by each Iowa Entity to the extent it is a party
          thereto, and (ii) constitutes the legal, valid, binding, perfected and
          enforceable obligation of each Iowa Entity to the extent it is a party
          thereto, enforceable in accordance with its respective terms, except
          as enforceability may be limited by future bankruptcy, insolvency or
          similar proceedings, limitations on rights of creditors generally and
          principles of equity, and assuming the foregoing agreements are
          binding against the other parties thereto.

     (d)  Gaming Facility Site. The Gaming Facility Site for the Project
          constitutes "Indian lands" upon which the Iowa Tribe may legally
          conduct gaming under IGRA.

     (e)  Gaming Permitted. The Iowa Tribe is legally permitted to conduct Class
          II Gaming (and Class III Gaming in the event of a Compact) activities
          in the State under all Legal Requirements,

     (f)  Gaming Rights. Once signed by the Iowa Tribe and the State and
          approved and published by the United States Secretary of the Interior,
          the Compact will be in effect and will be a valid and binding
          obligation of the Iowa Tribe. Iowa Corp will then have the right to
          engage in Class III Gaming at the Gaming Facility to be operated by
          Iowa Corp under the Transaction Documents to the extent set forth in
          the Compact.

     (g)  Gaming Licenses. All licenses, permits, approvals or other authority
          required from the Gaming Commission to permit Lakes Management to
          enter into any of the Transaction Documents to which it is a party and
          perform its respective obligations thereunder have been granted.

     (h)  No Material Negative Obligations. There are no outstanding obligations
          owing by any of Iowa Corp or the Iowa Tribe or affecting the Gaming
          Facility Site or the Project, whether arising from contracts,
          instruments, orders, judgments, decrees or otherwise, that are likely
          to materially and adversely affect the Project or the obligations or
          rights of Lakes Management under any of the Transaction Documents to
          which it is a party.

     (i)  No Violation or Conflict. The execution, delivery and performance by
          the applicable Iowa Entity of each Transaction Documents that such
          Iowa Entity is party to does not violate any Legal Requirements nor
          conflict with or result in any breach of any provision of, or
          constitute a default under, or result in the imposition of any lien or
          charge upon any asset of any Iowa Entity, including without limitation
          the Project, or result in the acceleration of any obligation of any
          Iowa Entity under the terms of any agreement or document binding upon
          such party, other than a conflict, breach, default or imposition as
          shall not materially adversely affect the Project or the obligations
          or rights of Lakes Management under any of the Transaction Documents
          to which it is a party.


                                       3

<PAGE>

     (j)  No Litigation. There are no judgments entered, or actions, suits,
          investigations or proceedings pending, or to the knowledge of any Iowa
          Entity, threatened, against any Iowa Entity or their respective
          Affiliates, or any of the assets or properties of any of such
          entities, that could have a material adverse effect on the Project,
          its Project Facilities, any Iowa Entity's ability to enter into or
          perform any of the Transaction Documents to the extent it is a party
          thereto.

     (k)  No Consents. No consent from any Governmental Authority arising from
          any Legal Requirements not heretofore obtained by the Iowa Tribe is
          required to execute, deliver and perform its obligations hereunder.

     (l)  Full Disclosure. No representation or warranty of any Iowa Entity in
          this Agreement or the other Transaction Documents and no report or
          statement delivered to any of Lakes Management or its respective
          Affiliates by or on behalf of any Iowa Entity, contains any untrue
          statement or omits to state a material fact necessary to make any such
          representation, warranty, report or statement, in light of the
          circumstances in which they were made, not misleading. Each Iowa
          Entity has fully disclosed to Lakes Management the existence and terms
          of all material agreements and Legal Requirements, written or oral,
          relating to the Project.

     (m)  No Tribal Tax. Neither the Project, Project Facilities nor the
          transaction(s) between the parties contemplated by the Transaction
          Document are now, or at any time during the term of this Agreement
          will be, subject to any tribal tax of any sort other than (i)
          reasonable pass-through taxes on Project patrons which are consistent
          with gaming resort industry practices, and (ii) the fees and
          assessments described in clause (c) of the definition of "Costs of
          Operations" as set forth in the Management Contract.

     (n)  Gaming Project Ownership. Except as otherwise expressly excluded under
          the Transaction Documents, all gaming projects and gaming and
          non-gaming assets and facilities related or ancillary thereto (each
          collectively referred to herein as a "Gaming Project") of the Iowa
          Tribe are/will be owned and operated by Iowa Corp, or if any Gaming
          Project is owned by another subsidiary of the Iowa Tribe, then (i) if
          the Gaming Project constitutes the Project, Gaming Facility and
          Project Facilities described and defined in the Management Contract,
          such subsidiary has entered into a Management Contract and related
          documents with Lakes Management and/or its Affiliates with respect
          thereto on the same terms and conditions as are set forth in the
          Management Contract and the other Transaction Documents unless
          otherwise agreed to in writing by Lakes or its Affiliate, and has
          otherwise satisfied the terms and conditions required by Section 3.1
          (f) hereof, or (ii) with respect to any other Gaming Projects, the
          subsidiary has entered into a written agreement with Lakes Management
          and/or its Affiliates granting such entity the same right of first
          refusal to manage such projects as has been granted to Lakes
          Management under the terms of Section 9.21 of the Management


                                       4

<PAGE>

          Contract and has otherwise satisfied the terms and conditions required
          by Section 3.1 (f) hereof.

                                    ARTICLE 3
                                    COVENANTS

     Section 3.1 Covenants. The Iowa Tribe covenants and agrees as follows:

          (a)  Additional Documents. It shall or shall cause Iowa Corp to
               execute any additional instruments as may be reasonably required
               by Lakes Management to carry out the intent of any of the
               Transaction Documents or to perfect or give further assurance of
               any of the rights granted or provided for under such Transaction
               Documents.

          (b)  Non-Impairment. It shall not and shall not permit Iowa Corp or
               any of its other governmental instrumentalities or subsidiaries
               to enact any law, ordinance, rule or regulation impairing the
               rights or obligations of any Iowa Entity or any of Lakes
               Management or its respective Affiliates under any of the
               Transaction Documents.

          (c)  Records. It shall or shall cause Iowa Corp to maintain or cause
               to be maintained full and accurate accounts and records for any
               particular Gaming Project and its Project Facilities according to
               GAAP.

          (d)  No Liens. Except as otherwise expressly permitted by the
               Transaction Documents, it shall not and shall not permit Iowa
               Corp or any of its other governmental instrumentalities or
               subsidiaries to cause or voluntarily permit any lien or
               encumbrance to be created on the Project Facilities for any
               particular Gaming Project, any Gaming Project's Gaming Facility
               Site or any proceeds of the Gaming Project Permanent Financing.

          (e)  No Tax. It shall not and shall not permit Iowa Corp or any of
               their other governmental instrumentalities or subsidiaries to
               impose any tax, fee or assessment on any of Lakes Management, its
               respective Affiliates, any Contractor, any Gaming Project and its
               Project Facilities, and/or any of the Transaction Documents other
               than the fees and assessments described in clause (c) of the
               definition of "Costs of Operations" as set forth in the
               Management Contract.

          (f)  Gaming Project Ownership. Except as otherwise expressly excluded
               under the Transaction Documents, all Gaming Projects shall be
               owned and operated by Iowa Corp; provided that a Gaming Project
               may be owned and operated by another subsidiary of the Iowa Tribe
               so long as prior to acquiring such ownership: (i) if the Project,
               Gaming Facility and Project


                                       5

<PAGE>

               Facilities described and defined in the Management Contract are
               owned by such other subsidiary, such subsidiary has entered into
               a Management Contract and related documents with Lakes Management
               and/or its Affiliates with respect thereto on the same terms and
               conditions as are set forth in the Management Contract and the
               Transaction Documents related thereto, (ii) with respect to any
               other gaming projects owned or to be owned by such other
               subsidiary, the subsidiary has entered into a written agreement
               with Lakes Management and/or its Affiliates granting such entity
               the same right of first refusal to manage such projects as has
               been granted to Lakes Management under the terms of Section 9.21
               of the Management Contract; (iii) Lakes Management shall have
               received the following, each in form and substance reasonably
               acceptable to it: (aa) certified copies of the organizational
               documents of the new subsidiary, together with reasonable
               evidence that such subsidiary is wholly owned by the Iowa Tribe,
               (bb) new Resolutions of Limited Waiver with respect to all of
               such documents and agreements from each of the new subsidiary and
               the Iowa Tribe containing substantially the same resolutions and
               terms as set forth in the Resolutions of Limited Waiver received
               by Lakes Management in connection with the execution of the
               original Transaction Documents, (bb) legal opinions from counsel
               to each of the new subsidiary and the Iowa Tribe with respect to
               the such new documents and agreements containing substantially
               the same opinions as provided to Lakes Management in connection
               with the execution of the original Transaction Documents, and
               (cc) the Iowa Tribe shall have executed and delivered an
               amendment to this Agreement incorporating all such new documents
               and agreements as additional "Transaction Documents" hereunder
               and such projects and related assets shall be subject to the same
               terms and restrictions set forth herein; and (iv) at the time of
               satisfaction of the foregoing conditions, no "Event of Default"
               by any Iowa Entity under the Transaction Documents has occurred
               and is continuing.

                                    ARTICLE 4
                                EVENTS OF DEFAULT

     Section 4.1 Events of Default. Each of the following shall constitute a
"Event of Default" under this Agreement:

     (a)  A Material Breach by the Iowa Tribe exists. As used in this paragraph,
          the term "Material Breach" shall mean any of the following
          circumstances (i) material failure of the Iowa Tribe to perform a
          material obligation hereunder or any other Transaction Document to
          which it is a party, or (ii) any representation or warranty made
          pursuant to Section 2.1 hereof proves to be knowingly false or
          erroneous in any material way when made or at any time shall fail to
          be true and correct in all material respects.


                                       6

<PAGE>

     (b)  The Iowa Tribe violates any of the covenants in Section 3.1 of this
          Agreement, and after sixty (60) days have passed following a request
          by Lakes Management to such Iowa Entity to cure the violation, during
          which the violation has not been cured.

     (c)  The Iowa Tribe has: (i) filed for relief under the United States
          Bankruptcy Code or has suffered the filing of an involuntary petition
          under the Bankruptcy Code that is not dismissed within sixty (60) days
          after filing; (ii) a receiver appointed to take possession of all or
          substantially all of such entities property; or (iii) suffered an
          assignment for the benefit of creditors.

     (d)  The Iowa Tribe is no longer an Indian tribe eligible to conduct gaming
          within the meaning of IGRA.

     Section 4.2 Cure of Event Default. Upon the occurrence of an Event of
Default, Lakes may provide written notice to the Iowa Tribe of such default and,
if it is possible for such party to cure the Event of Default, it shall have
thirty (30) days following receipt of notice to effect a cure; provided,
however, that if the nature of such breach (but specifically excluding breaches
curable by the payment of money) is such that it is not possible to cure such
breach within thirty (30) days, such thirty-day period shall be extended for so
long as either Iowa TDC or Iowa Tribe, as applicable, shall be using diligent
efforts to effect a cure thereof but no more than an additional sixty (60) days.
Upon the occurrence of any of the events described in Section 4.1 and during any
applicable cure period, Lakes Management may suspend its performance under the
Transaction Documents. The discontinuance or correction of an Event of Default
shall constitute a cure thereof. If the Iowa Tribe fails to cure the Event of
Default within the 30-day period, Lakes Management may take any one or more of
the following actions: (a) suspend all performance of Lakes Management under the
Transaction Documents; (b) declare all obligations of any Iowa Entity under the
Transaction Documents to be immediately due and owing, (c) terminate the
Management Contract; and/or (d) pursue any other remedy available at law, in
equity or by agreement, subject to the provisions of Article 5 hereof.

                                    ARTICLE 5
              DISPUTE RESOLUTION; WAIVERS OF SOVEREIGN IMMUNITY AND
                    TRIBAL COURT JURISDICTION; GOVERNING LAW

     Section 5.1 Dispute Resolution. The parties agree that any Claim shall be
governed by the following dispute resolution procedures:

     (a)  The parties shall use their best efforts to settle the Claim. To this
          effect, they shall consult and negotiate with each other in good faith
          and, recognizing their mutual interests, attempt to reach a just and
          equitable solution satisfactory to both parties. If they do not reach
          such solution within a period of ten (10) days, then, upon notice by
          either party to the other, all Claims shall be settled by arbitration
          administered by the American Arbitration Association in accordance
          with the provisions of its Commercial Arbitration Rules in effect at
          the time of submission;


                                       7

<PAGE>

          except that: (a) the question whether or not a Claim is arbitrable
          shall be a matter for binding arbitration by the arbitrators, such
          question shall not be determined by any court and, in determining any
          such question, all doubts shall be resolved in favor of arbitrability;
          and (b) discovery shall be permitted in accordance with the Federal
          Rules of Civil Procedure, subject to supervision as to scope and
          appropriateness by the arbitrators. Unless the parties otherwise agree
          to in writing, arbitration proceedings shall be held at Oklahoma City,
          Oklahoma.

     (b)  The arbitration proceedings shall be conducted before a panel of three
          neutral arbitrators, all of whom shall be currently licensed
          attorneys, actively engaged in the practice of law for at least ten
          (10) years, one of which shall have five (5) years of experience in
          federal Indian law, and one of which shall have five (5) years of
          experience in the gaming industry. The arbitrator selected by the
          claimant and the arbitrator selected by respondent shall, within ten
          (10) days of their appointment, select a third neutral arbitrator. In
          the event that they are unable to do so, the parties or their
          attorneys may request the American Arbitration Association to appoint
          the third neutral arbitrator. Prior to the commencement of hearings,
          each of the arbitrators appointed shall provide an oath or undertaking
          of impartiality.

     (c)  The arbitration award shall be in writing signed by each of the
          arbitrators, and shall state the basis for the award. The arbitration
          award shall be set forth in reasonable detail as to its findings of
          fact and law, and basis of determination of award form and amount.
          Except to the extent such enforcement will be inconsistent with a
          specific provision of this Agreement, arbitration awards made pursuant
          to this Article 5 shall be enforceable in federal court under Title 9
          of the United States Code and any applicable tribal, federal or state
          law governing the enforcement of arbitration awards. In addition to
          any basis for appeal of an arbitration award stated in Title 9 of the
          United States Code or any applicable law governing the enforcement of
          arbitration awards, either party hereto may appeal an arbitration
          award on the basis that the arbitrators incorrectly decided a question
          of law in making the award, or the award was made in an arbitrary or
          capricious manner or in manifest disregard of the factual evidence.

     (d)  Either party hereto, without having to exhaust any tribal remedies
          first, shall have the right to seek and obtain a court order from a
          court having jurisdiction over the parties requiring that the
          circumstances specified in the order be maintained pending completion
          of the arbitration proceedings, to the extent permitted by applicable
          law.

     (e)  Judgment on any arbitration award may be entered in any court having
          jurisdiction over the parties. The arbitrators shall not have the
          power to award punitive, exemplary or consequential damages, or any
          damages excluded by or in excess of any damage limitations expressed
          in this Agreement.


                                       8

<PAGE>

     (f)  The Iowa Tribe hereby expressly waives, and also waives its right to
          assert, sovereign immunity and any and all defenses based thereon with
          respect to any Claims; and such parties further hereby consents to (i)
          binding arbitration under the Commercial Arbitration Rules of the
          American Arbitration Association, (ii) to empowering the arbitrators
          to take the actions and enforce the judicial remedies described in the
          Iowa Tribe Resolution of Limited Waiver of Sovereign Immunity,
          Resolution I-05-11, dated January 27, 2005 issued in connection with
          the execution of the Transaction Documents (the "Resolution of Limited
          Waiver"), and (iii) judicial proceedings in or before the United
          States District Court for the Northern District of Oklahoma, or if
          that court determines it is without jurisdiction, then to the courts
          of the State of Oklahoma and all courts to which an appeal therefrom
          may be available, but solely to compel, enforce, modify or vacate any
          arbitration award.

     (g)  To the extent lawful in connection with any such Claims, the Iowa
          Tribe expressly waives the application of the doctrines of exhaustion
          of tribal remedies or comity that might otherwise require that Claims
          be heard first in tribal court or other tribal forum of the Iowa
          Tribe. The waivers set forth herein only extend to claims or
          proceedings brought by Lakes Management and its Affiliates and any
          award of damages against the Iowa Tribe or its Affiliates shall be
          payable solely out of the Collateral (as defined in the Resolutions of
          Limited Waiver) whether now or hereafter owned by Iowa Corp, any other
          Iowa Entity or their Affiliates.

     (h)  The Iowa Tribe, on behalf of itself and each of its Affiliates, agrees
          that any arbitration proceeding hereunder may be consolidated with any
          other arbitration proceeding that any of Lakes Management or its
          respective Affiliates may bring against Iowa Corp or any other
          Affiliates of the Iowa Entities.

     Section 5.2 Governing Law. This Agreement is governed by the laws of the
State, except that the State's conflict of laws provisions shall not apply.

                                    ARTICLE 6
                                  MISCELLANEOUS

     Section 6.1 Assignment. The rights and obligations under this Agreement
shall not be assigned or subcontracted by any party without the prior written
consent of the other party; provided, however, Lakes Management may assign this
Agreement to a wholly owned subsidiary without the consent of the Iowa Tribe;
provided further that Lakes Management, as applicable, shall remain obligated
for the performance of its subsidiary hereunder. Other than as expressly
provided in this Section 6.1, any attempted assignment or subcontracting without
prior written consent shall be void. Subject to the preceding requirements, this
Agreement is binding upon and inures to the benefit of the parties and their
respective successors and assigns.

     Section 6.2 Notices. Any notice, consent or any other communication
permitted or required by this Agreement: (a) must be in writing; (b) shall be
effective three (3) days after the


                                       9

<PAGE>

date sent; (c) must be delivered by personal service, via fax with reasonable
evidence of transmission, express delivery or by certified or registered mail,
postage prepaid, return receipt requested; and (d) until written notice of a new
address or addresses is given, must be addressed as follows:

If to the Iowa Tribe:   Iowa Tribe of Oklahoma
                        RR 1, P.O. Box 721
                        Perkins, OK 74059
                        Attn: Chairman

With a Copy to:         David McCullough, Esq.
                        Doerner, Saunders, Daniel & Anderson, L.L.P.
                        211 N. Robinson Ave. Suite 501
                        Oklahoma City, OK 73102-7112
                        (copy to counsel does not constitute notice to a party)

If to Lakes:            Lakes Iowa Management, LLC
                        130 Cheshire Lane
                        Minnetonka, MN 55305
                        Attn: Timothy J. Cope

With a Copy to:         Kevin C. Quigley, Esq.
                        Hamilton Quigley Twait & Foley PLC
                        W1450 First National bank Building
                        332 Minnesota Street
                        St. Paul, MN 55101-1314

     and                Brian J. Klein, Esq.
                        Maslon, Edelman, Borman & Brand, LLP
                        3300 Wells Fargo Center
                        90 South Seventh Street
                        Minneapolis, MN 55402-4140
                        (copy to counsel does not constitute notice to a party)

     Copies of any notices shall be given to the Gaming Commission at its last
known address.

     Section 6.3 Amendments. This Agreement may be amended only by written
instrument duly executed by all of the parties and with any and all necessary
regulatory approvals, if any, required by Legal Requirements.

     Section 6.4 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.


                                       10

<PAGE>

     Section 6.5 Preparation of Agreement. This Agreement has been carefully
prepared and reviewed by counsel for each party hereto and may not be construed
more strongly for or against any party.

     Section 6.6 Compliance with Legal Requirements. All parties shall at all
times comply with all Legal Requirements.

     Section 6.7 Further Assurances. The parties agree to do all acts and to
deliver all necessary documents as from time to time are reasonably required to
carry out the terms and provisions of this Agreement, including the filing of
financing statements and related security instruments described herein.

     Section 6.8 Cooperation; Approvals. Each of the parties agrees to cooperate
in good faith with the other to timely implement the purposes of this Agreement.
Any consents or approvals required to be given in connection with this Agreement
shall not be unreasonably withheld or delayed by the parties or their
Affiliates.

     Section 6.9 Confidentiality. Except as required by Legal Requirements,
including but not limited to, reporting requirements imposed on publicly traded
companies, each of the parties agrees that all non-public information exchanged
between the parties with respect to any particular Project shall be kept
confidential by each party and only disclosed to that party's legal counsel,
financial advisors or as reasonably required to be disclosed in connection with
the Project, including in connection with obtaining the Project Permanent
Financing.

                            [Signature Page Follows]


                                       11

<PAGE>

     The parties have executed this Tribal Agreement as of the date stated in
the introductory clause.

                                        IOWA TRIBE OF OKLAHOMA
                                        A FEDERALLY RECOGNIZED INDIAN TRIBE


                                        By /s/ Phoebe O'Dell
                                           -------------------------------------
                                        Its: Chairperson
                                             -----------------------------------


                                        By /s/ Eugene Big Soldier JR
                                           -------------------------------------
                                        Its: Secretary
                                             -----------------------------------


                                        LAKES IOWA MANAGEMENT, LLC


                                        By /s/ Timothy Cope
                                           -------------------------------------
                                           Timothy J. Cope
                                        Its: President and Chief Financial
                                             Officer

             [Signature Page to Iowa Tribal Agreement - Management]
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.144
<SEQUENCE>79
<FILENAME>c92713exv10w144.htm
<DESCRIPTION>LETTER AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w144</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit 10.144</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Metroflag Polo, LLC</B><BR>
6430 Schirlls Street<BR>
Las Vegas, Nevada 89118
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt">March&nbsp;17, 2005
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Grand Casinos Nevada I, Inc.<BR>
c/o Lakes Entertainment, Inc.<BR>
130 Cheshire Lane<BR>
Minnetonka, MN 55305
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>RE: Metroflag Polo, LLC Special Member Interest Repurchase Option</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter agreement (&#147;<B>Option Agreement</B>&#148;), which is effective as of the date first set forth
above (the &#147;<B>Effective Date</B>&#148;), serves to confirm our agreement as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Grand Casinos Nevada I, Inc., a Minnesota corporation (&#147;<B>Special Member</B>&#148;) holds two Special
Member Interests (the &#147;<B>Interests</B>&#148;) in Metroflag Polo, LLC, a Nevada limited liability company (the
"<B>Company</B>&#148;), consisting of the Special Member Priority Interest and the Special Member Subordinated
Interest (all as defined in and under the terms of that certain Operating Agreement of Metroflag
Polo, LLC, dated as of May&nbsp;8, 2003, as amended by that certain First Amendment to Operating
Agreement, dated as of May&nbsp;15, 2003, and that certain Letter Agreement dated as of December&nbsp;14,
2004 (collectively, the &#147;<B>Operating Agreement</B>&#148;)). The repurchase of the Interests is governed by
the Operating Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Contingent upon Special Member&#146;s receipt of the Initial Option Payment described below,
Special Member hereby grants to the undersigned other Members (as defined in the Operating
Agreement), jointly, the exclusive and irrevocable option (&#147;<B>Option</B>&#148;) to purchase all, but not less
than all, of the Interests in accordance with the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The purchase price (&#147;<B>Purchase Price</B>&#148;) for the Interests shall be a fixed price of Five
Million Dollars ($5,000,000.00), irrespective of the actual date of exercise and closing of the
Option (&#147;<B>Closing</B>&#148;); provided that Closing occurs on or prior to the Initial Closing Date or
Extended Closing Date, as applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Members shall make an initial option payment of Two Hundred Fifty Thousand Dollars
($250,000.00) (the &#147;<B>Initial Option Payment</B>&#148;) to Special Member within two (2)&nbsp;business days of the
Effective Date of this Option Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Members intend to exercise and close on the Option on or prior to April&nbsp;30, 2005 (the
&#147;<B>Initial Closing Date</B>&#148;). However, if Closing does not occur on or before the Initial Closing Date
due to a delay in the Members&#146; obtaining the requisite financing or to other circumstances beyond
the reasonable control of the Members, the Members shall have the absolute right to extend the
Closing Date to May&nbsp;31, 2005 (the &#147;<B>Extended Closing Date</B>&#148;); provided that: (i)&nbsp;the Members provide
written
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">notice to Special Member, at least two (2)&nbsp;business days prior to the Initial Closing Date,
electing to extend the Closing Date, and (ii)&nbsp;the Members pay to Special Member on or before the
Initial Closing Date an additional option payment of Two Hundred Fifty Thousand Dollars
($250,000.00) (the &#147;<B>Extension Option Payment</B>&#148;) (separately and collectively with the Initial Option
Payment, as the context may require, referred to as the &#147;<B>Option Payments</B>&#148;). If the Members fail to
provide the requisite notice of extension and/or fail to pay the Extension Option Payment on a
timely basis, the Option shall terminate on the Initial Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;In the event Closing does not occur on or before the Initial Closing Date (unless properly
extended) or the Extended Closing Date, as applicable, the Option shall terminate and Special
Member shall be entitled to retain the Option Payment(s). In the event that Closing occurs on or
before the Closing Date or the Extended Closing Date, as applicable, the Option Payment(s) shall be
credited towards the Purchase Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Simultaneously upon receipt of the Purchase Price, Special Member shall execute and
deliver such documents as are reasonably required to evidence and consummate the assignment of the
Interests to the Members (or as they may direct), without representation, warranty or recourse
other than the following representations made by Special Member as of the Closing:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Special Member owns the Interests;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the Interests are not encumbered to any extent;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Special Member has full right and authority to assign the Interests; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;all corporate resolutions or company consents necessary in connection with the assignment
of the Interests by Special Member have been obtained,
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">which representations shall survive the Closing. Further, upon payment of the Purchase Price, all
rights of Special Member under the Operating Agreement shall terminate, and the Company shall not
owe any additional economic obligations to Special Member.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Members shall have the right to assign their rights hereunder as they may elect,
provided that they give Special Member written notice of any such assignment; and, if the Option is
exercised, Special Member shall cooperate to assign the Interests (or either of them) at Closing to
the Members&#146; assignee(s), or instead to allow the Company to redeem the Interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;In the event that the Option is not timely and properly exercised by the Members and,
consequently, Closing does not occur, this Option Agreement shall be of no further force or effect,
and the Members&#146; failure to exercise the Option shall have no effect on the Company&#146;s existing
obligation to repurchase the Interests as provided in the Operating Agreement, or on the respective
rights and obligations of the Special Member, the Members and/or the Company under the terms of the
Operating Agreement.
</DIV>

<P align="center" style="font-size: 10pt">2
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Time shall be of the essence for this Option Agreement. This Option Agreement may be
executed in any number of counterparts, each of which shall be considered to be an original hereof.
Facsimile signatures shall be deemed to have the same force and effect as original signatures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;All notices to be given hereunder shall be in writing, and shall be deemed adequately given
if delivered to the recipient by Federal Express or other nationally recognized courier service
(any notice to be effective on the date actually delivered to the party receiving notice), or by
facsimile (any notice to be effective on the date such facsimile is sent and
confirmed to be received by the party receiving notice if sent prior to 5:00 pm on a business day,
or if sent after 5:00 pm or on a non-business day, as of the following business day) to:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to Special Member, to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Grand Casinos Nevada I, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Lakes Entertainment, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">130 Cheshire Lane</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minnetonka, MN 55303</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Mr.&nbsp;Timothy Cope</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (952)&nbsp;449-7064</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maslon Edelman Borman &#038; Brand, LLP</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3300 Wells Fargo Center</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">90 South Seventh Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Minneapolis, MN 55402-4140</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Mark Baumann, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (612)&nbsp;642-8339</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to the Company, to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Torino Companies</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6430 Schirlls Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Las Vegas, Nevada 89118</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: David Dufenhorst</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (702)&nbsp;258-6040</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Greenberg Traurig, P.A.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1221 Brickell Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Miami, Florida 33131</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Juan P. Loumiet, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (305)&nbsp;961-5525</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to Metro One, LLC, to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Torino Companies</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6430 Schirlls Street</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Las Vegas, Nevada 89118</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: David Dufenhorst</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (702)&nbsp;258-6040</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Greenberg Traurig, P.A.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1221 Brickell Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Miami, Florida 33131</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Juan P. Loumiet, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (305)&nbsp;961-5525</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If to Flag Luxury</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Polo, LLC, to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o Flag Luxury Properties, LLC</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">650 Madison Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> Floor</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10022</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Mitchell J. Nelson, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (212)&nbsp;307-3328</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">With a copy to:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Greenberg Traurig, P.A.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1221 Brickell Avenue</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Miami, Florida 33131</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Juan P. Loumiet, Esq.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (305)&nbsp;961-5525</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;SIGNATURE PAGE FOLLOWS&#093;
</DIV>


<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please execute and return to the Company a copy of this Option Agreement to evidence your
agreement with its terms.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Metro One, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>

<TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">/s/&nbsp;Brett Torino</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Brett Torino, Manager</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Flag Luxury Polo, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left">Flag Luxury Properties, LLC, its sole member</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Flag Leisure Group, LLC, its managing member</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top" style="border-bottom: 1px solid #000000">/s/&nbsp;Paul Kanavos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paul Kanavos, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left">Agreed to this ___ day of March ___, 2005.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Grand Casinos Nevada I, Inc.</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">/s/&nbsp;Lyle Berman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Lyle Berman, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left">Agreed to this ___ day of March ___, 2005.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Metroflag Polo, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" valign="top" align="left"><B>Metro One, LLC</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>

<TD colspan="7" valign="top" align="left" style="border-bottom: 1px solid #000000">/s/&nbsp;Brett Torino</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Brett Torino, Manager</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left"><B>Flag Luxury Polo, LLC</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" valign="top" align="left">Flag Luxury Properties, LLC, its sole member</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Flag Leisure Group, LLC, its managing member</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top" style="border-bottom: 1px solid #000000">/s/&nbsp;Paul Kanavos</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Paul Kanavos, President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">5
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.145
<SEQUENCE>80
<FILENAME>c92713exv10w145.txt
<DESCRIPTION>FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.145

                 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT ("AMENDMENT") dated as
of June 2, 2005, by and among LAKES CALIFORNIA LAND DEVELOPMENT, INC., LAKES
ENTERTAINMENT, INC., LAKES SHINGLE SPRINGS, INC., LAKES JAMUL, INC., LAKES KAR
SHINGLE SPRINGS, L.L.C., LAKES KEAN ARGOVITZ RESORTS-CALIFORNIA, L.L.C. (each an
"Original Secured Party" and collectively, the "Original Secured Parties"),
LAKES PAWNEE CONSULTING, LLC, LAKES PAWNEE MANAGEMENT, LLC, LAKES KICKAPOO
CONSULTING, LLC, LAKES KICKAPOO MANAGEMENT, LLC, LAKES IOWA CONSULTING, LLC,
LAKES IOWA MANAGEMENT, LLC, (each an " Additional Secured Party", collectively
the "Additional Secured Parties" and collectively with the Original Secured
Parties, the "Secured Parties") and KEVIN M. KEAN, a resident of the state of
Nevada (the "Debtor").

                                    RECITALS:

     WHEREAS, Debtor and the Original Secured Parties have entered into that
certain Loan and Security Agreement dated as of January 30, 2003 (as amended
from time to time, the "Security Agreement"); capitalized terms used but not
otherwised defined herein shall have the meanings set forth in the Security
Agreement; and

     WHEREAS, Debtor, Lakes Pawnee Consulting, LLC and Lakes Pawnee Mangement,
LLC have entered into that certain Consulting Agreement of even date herewith
(as amended from time to time, the "Pawnee Consulting Agreement"); and

     WHEREAS, Debtor, Lakes Kickapoo Consulting, LLC and Lakes Kickapoo
Management, LLC have entered into that certain Consulting Agreement of even date
herewith (as amended from time to time, the "Kickapoo Consulting Agreement");
and

     WHEREAS, Debtor, Lakes Iowa Consulting, LLC and Lakes Iowa Management, LLC
have entered into that certain Consulting Agreement of even date herewith (as
amended from time to time, the "Iowa Consulting Agreement");

     WHEREAS, to induce the Additional Secured Parties to enter into the
above-referenced Pawnee Consulting Agreement, Kickapoo Consulting Agreement and
Iowa Consulting Agreement, as applicable, each of the parties to this First
Amendment have agreed to amend the Security Agreement pursuant to the terms and
conditions contained herein.

                                   AGREEMENTS:

     NOW, THEREFORE, in consideration of the foregoing premises and for good and
other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree to amend the Security Agreement as follows:

<PAGE>

     1. Parties. The list of Parties on page one of the Security Agreement is
hereby amended to add the following entities:

LAKES PAWNEE CONSULTING, LLC
130 Cheshire Lane
Minnetonka, MN 55305                                           ("Secured Party")

LAKES PAWNEE MANAGEMENT, LLC
130 Cheshire Lane
Minnetonka, MN 55305                                           ("Secured Party")

LAKES KICKAPOO CONSULTING, LLC
130 Cheshire Lane
Minnetonka, MN 55305                                           ("Secured Party")

LAKES KICKAPOO MANAGEMENT, LLC
130 Cheshire Lane
Minnetonka, MN 55305                                           ("Secured Party")

LAKES IOWA CONSULTING, LLC
130 Cheshire Lane
Minnetonka, MN 55305                                           ("Secured Party")

LAKES IOWA MANAGEMENT, LLC
130 Cheshire Lane
Minnetonka, MN 55305                                           ("Secured Party")

     2. Amendment of Definitions - Loan Documents and Secured Obligations. The
first sentence of Section 2 of the Security Agreement is hereby amended by
inserting the phrase "the Pawnee Consulting Agreement, the Kickapoo Consulting
Agreement and the Iowa Consulting Agreement," immediately following the existing
phrase "each of the KARSS Note and the KAR Note (as respectively defined in the
Buyout Agreements)," as set forth therein in order to specifically include such
consulting agreements within the scope of the term "Loan Documents" as set forth
therein. The term "Loan Documents" is used in the Security Agreement to further
define the term "Secured Obligations" as used therein and accordingly, the
foregoing amendment also has the effect of including the Debtor's obligations
under such consulting agreements within the term Secured Obligations. As used
above and elsewhere in the Security Agreement, the terms "Pawnee Consulting
Agreement," "Kickapoo Consulting Agreement" and "Iowa Consulting Agreement"
shall each have the meanings assigned to such terms in the Recitals to this
First Amendment.

     Notwithstanding the foregoing or any contrary term or provision set forth
herein, in the Buyout Agreements or in the Security Agreement, each of the
Secured Parties and Debtor acknowledges and agrees:

          (a) that no fees, income or other Rights to Payment owing by a Secured
     Party to Debtor under the Pawnee Consulting Agreement, the Kickapoo
     Consulting Agreement or


                                        2

<PAGE>

     the Iowa Consulting Agreement (collectively, the "Kean Oklahoma/Texas
     Fees") shall be applied to the payment of or constitute Collateral for any
     Secured Obligations owing by Debtor to any Secured Party under or with
     respect to any contracts related to gaming projects with either the Shingle
     Springs Band of Miwok Indians or the Jamul Indian Village. Debtor
     acknowledges that such limitation shall not apply to Kean Residential Loan
     Obligations, which obligations shall be secured by the Kean Oklahoma/Texas
     Fees; and

          (b) that an "event of default" by Debtor under the Buyout Agreements
     or any "Consulting Agreement" related to the gaming projects with either
     the Shingle Springs Band of Miwok Indians or the Jamul Indian Village shall
     not constitute an "event of default" under any of the Pawnee Consulting
     Agreement, the Kickapoo Consulting Agreement or the Iowa Consulting
     Agreement, and conversely, that an "event of default" by Debtor under any
     of the Pawnee Consulting Agreement, the Kickapoo Consulting Agreement or
     the Iowa Consulting Agreement shall not constitute an "event of default"
     under the Buyout Agreements or any "Consulting Agreement" related to the
     gaming projects with either the Shingle Springs Band of Miwok Indians or
     the Jamul Indian Village; and

          (c) that subject to the "50%" limitation set forth in Section 2 of the
     Buyout Agreements, the Secured Parties shall have the right to apply any
     Shingle Springs/Jamul Fees (as hereinafter defined) to the payment of any
     Obligations of Debtor owed to a Secured Party under or with respect to any
     of the Pawnee Consulting Agreement, the Kickapoo Consulting Agreement or
     the Iowa Consulting Agreement, whether prior to or after the occurrence of
     any event of default under the Loan Documents. As used herein, the term
     "Shingle Springs/Jamul Fees" shall mean any fees, income or other Rights to
     Payment owing by a Secured Party to Debtor under the Buyout Agreements or
     any "Consulting Agreement" related to the gaming projects with either the
     Shingle Springs Band of Miwok Indians or the Jamul Indian Village .

     3. Amendment of Definition - Rights to Payment. Section 2(a)(ii) is hereby
deleted in its entirety and replaced with the following:

          (ii) The term "Rights to Payment" shall mean each and all of the
     contract rights and rights to payment of the Debtor arising under each of
     the Buyout Agreements, the "Consulting Agreements" (as respectively defined
     in the Buyout Agreements), the Pawnee Consulting Agreement, the Kickapoo
     Consulting Agreement, the Iowa Consulting Agreement and under or arising
     from any consulting, broker or other agreement involving (1) either Kevin
     Kean or any affiliate of Kean in which he directly or indirectly owns an
     ownership interest or is a director, officer, employee or agent, and (2)
     any of the "Designated Tribes" (defined below) or with any Secured Party,
     together with all substitutions, replacements and amendments thereto, each
     whether now existing or hereafter arising.

          (iii) The term "Designated Tribes" shall mean any of the following:
     Shingle Springs Band of Miwok Indians, Jamul Indian Village, Pawnee Nation
     of Oklahoma,


                                        3

<PAGE>

     Iowa Tribe of Oklahoma, Kickapoo Traditional Tribe of Texas, and/or any
     instrumentality, subsidiary or other affiliate of any of such tribes.

     4. Exclusive Development Rights.

          a. Consulting Rights in Favor of Kean. Lakes Entertainment, Inc.
     ("Lakes Entertainment") agrees that so long as any loans and similar
     obligations of Debtor to Lakes Entertainment or any of its Affiliates
     remain owing and unpaid, Lakes shall grant Debtor the right to be a
     consultant to Lakes Entertainment with respect to each gaming project
     opportunity pursued by Lakes Entertainment or any of it s Affiliates in the
     State of Oklahoma (each an "Oklahoma Gaming Opportunity. Lakes shall
     promptly notify Debtor in writing of all Oklahoma Gaming Opportunities.
     From the date of receiving such notice, Debtor shall have thirty (30) days
     to consider the Oklahoma Gaming Opportunity and notify Lakes Entertainment
     whether he intends to accept such consulting engagement. In the event that
     Debtor declines such opportunity or fails to respond within such thirty
     (30) day period, Lakes Entertainment shall have the right to pursue such
     opportunity individually or with any other party. If Debtor shall accept
     such consulting engagement, then Debtor and Lakes Entertainment shall enter
     into a consulting agreement with respect to such Oklahoma Gaming
     Opportunity on substantially the same terms and conditions as set forth in
     the Kickapoo Consulting Agreement. Lakes Entertainment shall have the right
     to assign its rights and obligations under this Section 5 to one or more of
     its subsidiaries.

          b. Development Rights in Favor of Lakes. Debtor agrees that so long as
     any debts and obligations of Debtor to Lakes Entertainment or any of its
     Affiliates remain owing and unpaid, Debtor shall grant Lakes Entertainment
     a right of first refusal to pursue or develop any gaming-related business
     opportunity made available to Debtor by any party (each a "Business
     Opportunity") on the same terms and conditions as offered to Debtor. Debtor
     shall promptly notify Lakes Entertainment in writing of all Business
     Opportunities together with all material terms and conditions. From the
     date of receiving such notice and all material information, Lakes
     Entertainment shall have thirty (30) days to consider the Business
     Opportunity and notify Debtor whether it intends to pursue the same. In the
     event that Lakes Entertainment declines such opportunity, Debtor shall have
     the right to pursue such opportunity individually or with any other party
     but may not do so on terms and conditions more favorable than those offered
     to Lakes Entertainment. If Debtor does not enter into a signed agreement
     with such unrelated third party regarding the Business Opportunity which
     has been declined by Lakes Entertainment within one (1) year of such
     declination, then Lakes' right of first refusal granted herein is
     reinstated for that opportunity. If Lakes Entertainment shall pursue the
     Business Opportunity, then Debtor shall be entitled to a fee with respect
     to such opportunity in an amount and subject to the same terms and
     conditions as are set forth in Section 6 of the Kickapoo Consulting
     Agreement. Lakes Entertainment shall have the right to assign its rights
     and obligations under this Section 5 to one or more of its subsidiaries.

     5. Definition of Affiliate. As used in the Security Agreement, the term
"Affiliate" shall mean with respect to any specified person or entity (a
"Person"), any other Person that directly or


                                        4

<PAGE>

indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with the specified Person; and for the purposes of this
definition, "control" (including the terms controlling, controlled by, or under
common control with) means the possession, direct or indirect, or the power to
direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, partnership or member
interests, by contract or otherwise.

     6. No Other Changes. Except as explicitly amended by this Amendment, all of
the terms and conditions of the Security Agreement remain in full force and
effect.

     7. Representations and Warranties. Except as explicitly amended by this
Amendment, Debtor reaffirms that each of the Representations and Warranties
contained in the Security Agreement is correct on and as of the date hereof as
though made on and as of such date, except to the extent that such
representations and warranties relate solely to an earlier date.

     8. Counterparts. This Amendment may be executed in any number of
counterparts and by facsimile, and each such counterpart shall be considered an
original and all of which taken together shall constitute one and the same
instrument.

         [The remainder of this page has intentionally been left blank.]

                          (THE SIGNATURE PAGE FOLLOWS.)


                                        5

<PAGE>

     THE PARTIES have executed this First Amendment to Loan and Security
Agreement as of June 14, 2005.

SECURED PARTIES:
LAKES ENTERTAINMENT, INC.               LAKES SHINGLES SPRINGS, INC.


By: /s/ Timothy J. Cope                 By: /s/ Timothy J. Cope
    ---------------------------------       ------------------------------------
    Timothy J. Cope                         Timothy J. Cope
    Its: President                          Its: President


LAKES JAMUL, INC.                       LAKES CALIFORNIA LAND DEVELOPMENT, INC.


By: /s/ Timothy J. Cope                 By: /s/ Timothy J. Cope
    ---------------------------------       ------------------------------------
    Timothy J. Cope                         Timothy J. Cope
    Its: President                          Its: President


                                        LAKES KEAN ARGOVITZ RESORTS-CALIFORNIA,
LAKES KAR-SHINGLE SPRINGS, L.L.C.       L.L.C.

By: Lakes Shingle Springs, Inc.         By: Lakes Shingle Springs, Inc.
Its: Member                             Its: Member


By: /s/ Timothy J. Cope                 By: /s/ Timothy J. Cope
    ---------------------------------       ------------------------------------
    Timothy J. Cope                         Timothy J. Cope
    Its: President                          Its: President


LAKES PAWNEE CONSULTING, LLC            LAKES PAWNEE MANAGEMENT, LLC


By: /s/ Timothy J. Cope                 By: /s/ Timothy J. Cope
    ---------------------------------       ------------------------------------
    Timothy J. Cope                         Timothy J. Cope
    Its: President                          Its: President


LAKES KICKAPOO CONSULTING, LLC          LAKES KICKAPOO MANAGEMENT, LLC


By: /s/ Timothy J. Cope                 By: /s/ Tmothy J. Cope
    ---------------------------------       ------------------------------------
    Timothy J. Cope                         Timothy J. Cope
    Its: President                          Its: President


LAKES IOWA CONSULTING, LLC              LAKES IOWA MANAGMENT, LLC


By: /s/ Timothy J. Cope                 By: /s/ Timothy J. Cope
    ---------------------------------       ------------------------------------
    Timothy J. Cope                         Timothy J. Cope
    Its: President                          Its: President


DEBTOR:


                                        /k/ Kevin M. Kean
                                        ----------------------------------------
                                        KEVIN M. KEAN
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.146
<SEQUENCE>81
<FILENAME>c92713exv10w146.txt
<DESCRIPTION>CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.146

                              CONSULTING AGREEMENT

                               (Kickapoo Project)

     This Consulting Agreement (this "Agreement") effective on June 2, 2005,
between Kevin M. Kean, 210 E. Flamingo Rd. #101, Las Vegas, NV 89109-4707
("Kean"), Lakes Kickapoo Consulting, LLC., a Minnesota limited liability company
("Lakes Consulting") and Lakes Kickapoo Management, LLC"., a Minnesota limited
liability company ("Lakes Management" and together with Lakes Consulting, the
"Lakes Entities").

                                   BACKGROUND

A. Kean is experienced in establishing and maintaining business relationships
and business ventures, including gaming projects, with federally recognized
Native American Indian Tribes specifically including the Kickapoo Traditional
Tribe of Texas (the "Tribe").

B. Lakes Consulting wishes to establish and enter into consulting agreements
(such agreements hereinafter referred to as the "Consulting Agreements") with
the Tribe respectively related to (i) the Tribe's existing gaming facility (the
"Lucky Eagle Casino"), and (ii) the design, construction, and consultation of a
new Indian gaming facility and ancillary businesses to be located on and/or near
tribal lands near Eagle Pass, Texas (the "New Project")

C. Lakes Management wishes to establish and enter into management agreements
(such agreement hereinafter referred to as the "Management Agreements") with the
Tribe related to the management of the Lucky Eagle Casino and the New Project
(collectively, the "Projects").

D. In pursuit of such goals the Lakes Entities have requested and Kean has
agreed to introduce the Lakes Entities to the Tribe and assist each of them in
respectively negotiating and executing their respective Consulting Agreements,
Management Agreements and related agreements ancillary thereto.

E. The Lakes Entities will make all final decisions and be responsible for the
consultation, development or management, as applicable, of the Projects and any
other project or venture with the Tribe. Kean will not have any authority or any
duties or obligations of consultation, development and/or management of the
Projects or any other gaming or other business ventures with the Tribe unless
specifically agreed to in writing between the parties.

     ACCORDINGLY, Kean and the Lakes Entities hereby covenant, agree and
obligate themselves as follows:

     1.   BACKGROUND. The Background statement is made a part of this Agreement.

<PAGE>

     2.   SERVICES. Kean's only duties under this Agreement, unless otherwise
          mutually agreed to, shall be for Kean to introduce the Lakes Entities
          to and foster their business relationship with the Tribe, and at the
          request of the Lakes Entities, to act as a consultant to each of them
          in negotiating and signing its respective Consulting Agreements and
          Management Agreements with the Tribe related to the Projects.

     3.   AUTHORITY. In performing his obligations hereunder, Kean shall not be
          and shall not represent himself as an agent of either of the Lakes
          Entities and shall not have any authority to bind either of the Lakes
          Entities contractually or otherwise, or to cause either of the Lakes
          Entities to incur any obligation to any third party including the
          Tribe.

     4.   TERM. The term of and Kean's rights under this Agreement will commence
          only upon final execution of this Agreement by all parties and shall
          terminate on the earlier of (a) with respect to Lakes Consulting, on
          the earlier of (i) the date of termination or expiration of the
          Consulting Agreements, as same may be renewed or extended, or (ii) the
          date that Lakes Consulting or any of its Affiliates is no longer the
          consultant of the Project; (b) with respect to Lakes Management, on
          the earlier of (i) the date of termination or expiration of the
          Management Agreements, as same may be renewed or extended, or (ii) the
          date that Lakes Management or any of its Affiliates is no longer the
          manager of the Projects, and (c) the date that the parties shall
          mutually terminate this agreement or the date that the Lakes Entities
          shall terminate this Agreement after the occurrence of an Event of
          Default (as hereinafter defined) by Kean or in accordance with Section
          15 below upon the occurrence of an adverse regulatory finding or
          determination against Kean. In the event that any of the Consulting
          Agreements or the Management Agreements is terminated or expires and
          the applicable Lake Entity or any of its Affiliates, whether directly
          or indirectly, enters into a new contract or agreement similar thereto
          with the Tribe related to the Projects within two (2) years after such
          termination or expiration, then this Agreement shall be reinstituted
          between Kean and such Lakes Entity or such Affiliate, as the case may
          be, upon the same terms as contained herein as of the date the new
          contract is executed with the Tribe, subject to Kean obtaining any all
          necessary federal, state and tribal regulatory approvals.

          As used in this Agreement, (yy) the term "Affiliate" shall mean with
          respect to any specified person or entity (a "Person"), any other
          Person that directly or indirectly, through one or more
          intermediaries, controls, is controlled by, or is under common control
          with the specified Person; and for the purposes of this definition,
          "control" (including the terms controlling, controlled by, or under
          common control with) means the possession, direct or indirect, or the
          power to direct or cause the direction of the management and policies
          of a person, whether through the ownership of voting securities,
          partnership or member interests, by


                                        2

<PAGE>

          contract or otherwise; and (zz) the term "Event of Default" shall mean
          the occurrence of any one or more of the following events: (1) any
          breach by Kean of his obligations under this Agreement, or (2) the
          occurrence of any breach or event of default by Kean or any of his
          Affiliates under any other document or agreement with any of the Lakes
          Entities or any of their respective Affiliates (but excluding Lakes
          Shingle Springs, Inc., Lakes Jamul, Inc., Lakes KAR Shingle Springs,
          L.L.C., Lakes Kean Argovitz Resorts-California, L.L.C).

     5.   ADVANCE PAYMENT OF KEAN CONSULTING FEES. The Lakes Entities hereby
          jointly and severally agree to make the following payments to Kean as
          advance payments of the Kean Consulting Fees to be paid to Kean under
          Section 6 hereof (collectively, the "Advance Payments"):

               a. Twenty Five Thousand Dollars ($25,000) for each of two months
               for assisting Lakes in signing a letter of intent with the Tribe
               ($25,000 which was advanced to Kean on November 15, 2004 and
               $25,000 which was advanced on December ___, 2004 and Kean hereby
               acknowledges receipt of such payments); and

               b. Twenty Five Thousand Dollars ($25,000) per month for a period
               of twelve (12) months commencing the earlier of (i) the date that
               the Tribe and Lakes Consulting sign the first Consulting
               Agreement, or (ii) if the Tribe and Lakes Management sign a
               Management Agreement for the New Project, the date upon which
               construction of the Project shall have commenced.

          The Advance Payments, together with accrued interest thereon, shall be
          due and payable as follows: (xx) on each date that any Kean Consulting
          Fee shall be paid to Kean under Section 6 hereof and in connection
          therewith, the Lakes Entities are authorized to setoff all such
          amounts against the then due and payable Kean Consulting Fee payment
          owing to Kean, provided that prior to the occurrence of an Event of
          Default by Kean, such right of setoff shall be limited to fifty
          percent (50%) of such Kean Consulting Fee; (yy) on the date of any
          permitted sale or assignment of Kean's rights under this Agreement,
          and (zz) upon the termination of Kean's rights under this Agreement in
          accordance with the terms herein, the occurrence of an Event of
          Default by Kean, or if Kean shall be found to be unsuitable under
          Section 15 hereof and this Agreement is not reinstated within the
          required one (1) year period, then such amounts shall become
          immediately due and payable in full.

     6.   FEE. Kean shall receive a consulting fee (individually and
          collectively, the "Kean Consulting Fee") for services rendered
          hereunder from each of the Lakes Entities as follows: (a) from Lakes
          Consulting, a fee equal to twenty percent (20%) of the sum of any
          development fees, consulting fees or other income received by Lakes
          Consulting under each Consulting


                                        3

<PAGE>

          Agreement (the "Lakes Consulting Fee") but specifically excluding the
          Excluded Payments (as hereinafter defined), and (b) from Lakes
          Management, a fee equal to twenty percent (20%) of the sum of any
          management fees or other income received by Lakes Management under
          each Management Agreement (the "Lakes Management Fee") but
          specifically excluding the Excluded Payments. As used herein, the term
          "Excluded Payments" shall mean all interest income, expense
          reimbursements and indemnification payments payable to either Lakes
          Consulting or Lakes Management under this Agreement.

          The Kean Consulting Fee shall be payable to Kean by the applicable
          Lakes Entity if and only if such Lakes Entity shall actually receive
          its respective Lakes Consulting Fee or Lakes Management Fee, as
          applicable, from the Tribe for such period. To the extent that the
          applicable Lakes Entity shall receive less than its required Lakes
          Consulting Fee or Lakes Management Fee, the Kean Consulting Fee due
          hereunder shall be reduced by a similar proportionate basis. Subject
          to the limitations set forth in this Agreement, the Kean Consulting
          Fee will be paid to Kean on a monthly basis within thirty (30) days
          after receipt by the applicable Lakes Entity of its respective Lakes
          Consulting Fee or Lakes Management Fee for such month. Kean shall
          further not be entitled to any compensation under this provision for
          any period prior to the commencement of the term of this Agreement and
          unless and until he has received such federal, state and tribal
          regulatory approvals and licenses as may be necessary for him to
          receive and the applicable Lakes Entity to pay the Kean Consulting
          Fee.

     7.   SECURITY INTEREST. Kean previously entered into that certain Loan and
          Security Agreement dated January 30, 2003 (the "Security Agreement")
          with Lakes Entertainment, Inc. (the indirect parent company of the
          Lakes Entities) and certain of its Affiliates. Kean acknowledges and
          agrees that he shall contemporaneously herewith amend the Security
          Agreement to add (a) each of the Lakes Entities as a "Secured Party",
          (b) the "Advance Payments as additional "Secured Obligations", and (c)
          the Kean Consulting Fees as additional collateral subject to the
          security interest provided in such Security Agreement.

     8.   INSPECTION OF RECORDS. Kean and/or his designated representative(s)
          shall be allowed not more often than once per calendar quarter and at
          his expense to review and inspect (including copying) any and all
          books, records and/or data in the possession and/or control of Lakes
          that concerns or relates to any contracts, revenues and/or receipts of
          any kind between each of the Lakes Entities and the Tribe. Kean and/or
          his representatives may conduct any review and inspection at the
          business office of Lakes or such other place as the documents are
          normally and customarily maintained at any time during the hours of
          8:00 a.m. through 5:00 p.m., Monday through Friday. Kean shall give
          Lakes five (5) business days


                                        4

<PAGE>

          written notice of the date and time that he intends to begin any
          review and inspection of documents. Kean shall and shall cause his
          agents to keep all such books, records and information confidential in
          accordance with the following confidentiality provisions:

          (a) For purposes of this agreement, "Confidential Information" means
          non-public information relating to either of the Lakes Entities or
          their Affiliates, but does not include information that Kean can
          demonstrate (i) was already known to Kean, or (ii) was or becomes
          generally available to the public, or part of the public domain,
          through no fault of, or disclosure by, Kean or his agents, or (iii)
          was or becomes available to Kean from a source other than either of
          the Lakes Entities or their Affiliates, provided that such source is
          not bound by a duty of confidentiality to any of them.

          (b) Kean agrees to use Confidential Information solely in connection
          with discussions with the Lakes Entities or related transactions, and
          to keep all such Confidential Information strictly secret and
          confidential. Unless authorized in writing by the Lakes Entities, Kean
          will maintain all Confidential Information in confidence and will not
          divulge to anyone outside the Lakes Entities or use any of the
          Confidential Information for Kean's own or another's benefit. Kean
          shall be responsible for any breach of this agreement by any his
          agents and any person (other than Lakes Entities or their Affiliates
          and their respective officers, directors, employees and independent
          contractors) to whom Kean discloses any of the Confidential
          Information.

          (c) If, notwithstanding this agreement, any of the Confidential
          Information is required to be disclosed by applicable law, regulatory
          requirement or legal process, Kean will give the Lakes Entities prompt
          notice of such requirement and, if requested, will assist the Lakes
          Entities in seeking a protective order or other measures to preserve
          the confidentiality of such Confidential Information insofar as
          possible.

          (d) Once this Agreement has ended, upon the request of either of the
          Lakes Entities, all Confidential Information theretofore provided by
          the Lakes Entities or their Affiliates to Kean (and all copies,
          summaries and notes of the contents or parts thereof) shall be
          returned to the Lakes Entities and not retained by Kean in any form,
          and Kean shall upon request promptly provide to the Lakes Entities a
          certificate signed by Kean confirming that all such materials have
          been returned to the Lakes Entities.

     9.   NO JOINT VENTURE. This Agreement is not intended to create any joint
          venture between either of the Lakes Entities and Kean. Each of the
          Lakes Entities shall be solely responsible for arranging for the
          funding, financing or otherwise capitalizing any business or venture
          or project that it may enter into with the Tribe. Kean does not
          represent that he has the capability to or that he will be responsible
          in any manner for funding, financing or otherwise capitalizing all or
          any portion any business or


                                        5

<PAGE>

          venture or project that either of the Lakes Entities may enter into
          with the Tribe.

     10.  BEST EFFORTS. Kean shall perform his duties hereunder, both express
          and implied, at all times in good faith and to the best of his ability
          and shall use his best efforts in connection with providing the
          services required to be provided to the Lakes Entities under this
          Agreement.

     11.  NON-COMPETE. Unless approved by the Tribe and Lakes, Kean agrees that
          (a) he shall and shall cause any entity in which he shall directly or
          indirectly own an equity interest together with any officers,
          directors, equity owners, employees and agents of such entity
          (collectively, the "Non-compete Parties"), to comply with each of the
          non-competition agreements set forth in the Consulting Agreements, the
          Management Agreements and/or under any related documents and
          agreements; and (b) in addition to the foregoing, that he shall not
          and shall cause each of the other Non-compete Parties to not directly
          or indirectly solicit or enter into any consulting, brokerage,
          management, financing or other similar agreement with the Tribe other
          than on behalf of the Lakes Entities.

     12.  FURTHER ASSURANCES. Each of the Lakes Entities and Kean agrees to
          execute such additional documents and agreements as are necessary to
          effectuate the intents and purposes of this Agreement.

     13.  GOVERNING LAW/VENUE. This Agreement will be governed by and
          interpreted in accordance with Minnesota law. SUBJECT TO THE TERMS OF
          SECTION 14 HEREOF, THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS
          ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED
          ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF
          HENNEPIN, STATE OF MINNESOTA OR, AT THE SOLE OPTION OF THE LAKES
          ENTITIES, IN ANY OTHER COURT IN WHICH THE LAKES ENTITIES SHALL
          INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER
          JURISDICTION OVER THE MATTER IN CONTROVERSY. THE PARTIES WAIVE, TO THE
          EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO
          ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO
          THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

     14.  DISPUTE RESOLUTION/ARBITRATION. In connection with any dispute
          hereunder, the parties agree to negotiate in good faith for up to
          twenty days. If they are unable to resolve the dispute in such period,
          then either party may demand and such dispute shall be submitted to
          and resolve by binding arbitration in accordance with the following
          terms:


                                        6

<PAGE>

          (a) GOVERNING RULES. Any arbitration proceeding will (i) proceed in a
          location in Minneapolis Minnesota selected by the American Arbitration
          Association ("AAA"); (ii) be governed by the Federal Arbitration Act
          (Title 9 of the United States Code), notwithstanding any conflicting
          choice of law provision in any of the documents between the parties;
          and (iii) be conducted by the AAA, or such other administrator as the
          parties shall mutually agree upon, in accordance with the AAA's
          commercial dispute resolution procedures. Any party who fails or
          refuses to submit to arbitration following a demand by any other party
          shall bear all costs and expenses incurred by such other party in
          compelling arbitration of any dispute. The arbitration requirement
          does not limit the right of any party to obtain provisional or
          ancillary remedies such as replevin, injunctive relief, attachment or
          the appointment of a receiver or the exercise of any foreclosure or
          self-help remedies under the Minnesota Uniform Commercial Code, before
          during or after the pendency of any arbitration proceeding. The
          parties agree that any arbitration proceeding amongst each of them
          and/or any of their related Affiliates, whether under this Agreement
          or any other agreement, may be consolidated with any other arbitration
          proceeding amongst or between any of such parties.

          (b) ARBITRATOR POWERS. The arbitrator will determine whether or not an
          issue is arbitratable and will give effect to the statutes of
          limitation in determining any claim. In any arbitration proceeding the
          arbitrator will decide (by documents only or with a hearing at the
          arbitrator's discretion) any pre-hearing motions which are similar to
          motions to dismiss for failure to state a claim or motions for summary
          adjudication. The arbitrator may grant any remedy or relief that a
          court of such state could order or grant within the scope hereof and
          such ancillary relief as is necessary to make effective any award. The
          arbitrator shall also have the power to award recovery of all costs
          and fees, to impose sanctions and to take such other action as the
          arbitrator deems necessary to the same extent a judge could pursuant
          to the Federal Rules of Civil Procedure, the Minnesota Rules of Civil
          Procedure or other applicable law. Judgment upon the award or any
          order or determination rendered by the arbitrator may be entered in
          any court having jurisdiction. The institution and maintenance of an
          action for judicial relief or pursuit of a provisional or ancillary
          remedy shall not constitute a waiver of the right of any party,
          including the plaintiff, to submit the controversy or claim to
          arbitration if any other party contests such action for judicial
          relief.

          (c) MISCELLANEOUS. The arbitrator shall award all costs and expenses
          of the arbitration proceeding. To the maximum extent practicable, the
          AAA, the arbitrators and the parties shall take all action required to
          conclude any arbitration proceeding within 180 days of the filing of
          the dispute with the AAA. No arbitrator or other party to an
          arbitration proceeding may disclose the existence, content or results
          thereof, except for disclosures of information by a party required in
          the ordinary course of its business or by


                                        7

<PAGE>

          applicable law or regulation. If more than one agreement for
          arbitration by or between the parties potentially applies to a
          dispute, the arbitration provision most directly related to the
          documents between the parties or the subject matter of the dispute
          shall control. This arbitration provision shall survive termination,
          amendment or expiration of any of the documents or any relationship
          between the parties.

     15.  ADVERSE REGULATORY ACTION. The parties acknowledge and agree that an
          important purpose of this Agreement is to allow the Lakes Entities to
          promptly achieve any and all necessary regulatory approval and if
          applicable, become licensed by the National Indian Gaming Commission
          ("NIGC") and any applicable state and tribal regulatory authorities
          (collectively, the "Regulatory Authorities") and to immediately allow
          the completion of design, construction and/or management of a gaming
          facility on lands of the Tribe. Should any of the Regulatory
          Authorities take any action to nullify or otherwise disrupt this
          Agreement, then the parties shall immediately meet and negotiate in
          good faith to agree to such modifications as may be necessary to
          obtain such regulatory approval hereof while still maintaining the
          intents and purposes of this Agreement, with any disputes related
          thereto resolved by arbitration as provided for above; provided
          however that if at any time any Regulatory Authorities shall issue a
          determination that Kean is unsuitable under any applicable gaming laws
          and thus may not receive the Kean Consulting Fee, then Kean's right to
          receive such Fee hereunder shall immediately terminate, but such
          rights shall be reinstated if within one (1) year after the issuance
          thereof, such ruling is reversed or vacated and Kean is found to be
          suitable.

     16.  ASSIGNMENT. This Agreement shall be binding upon and inure to the
          benefit of the parties hereto and their respective heirs, successors
          and assigns and to the extent expressly referred to herein, shall also
          inure to the benefit of the Affiliates of each of the parties, except
          that Kean may not assign his rights or obligations, in whole or in
          part, hereunder except with the prior written consent of the Lakes
          Entities which written consent shall not be required in the event that
          Kean shall desire to assign his right to receive the Consulting Fee
          (subject to the terms and conditions set forth below) to a legal
          entity in which he owns, directly or indirectly, 51% or more of the
          equity interest or to an immediate family member (excluding any
          spouse), i.e., child, mother, father, brother or sister but not a
          spouse. Any permitted assignment of such financial interest shall be
          further conditioned upon Kean's satisfaction of the following
          conditions precedent: (i) any such assignment shall not relieve Kean
          of his duties and obligations under this Agreement and at the time of
          such transfer, no Event of Default by Kean shall have occurred, (ii)
          all rights of any assignee under this Agreement and any related
          documents and agreements shall be expressly subject and subordinate to
          the rights and interests of each of the Lakes Entities and their
          Affiliates (the "Lakes Related


                                        8

<PAGE>

          Parties") hereunder and under the Security Agreement and any related
          documents and agreements and such assignee shall execute and deliver
          in favor of the Lakes Related Parties a subordination agreement in
          form and substance reasonably acceptable to such Lakes Related
          Parties, and (iii) the Lakes Entities receiving (aa) a copy of all
          documents and agreements relating to such transfer, (bb) written
          evidence that such transferee is "suitable" and has obtained any
          necessary licenses and approvals required from any Regulatory
          Authorities under the Indian Gaming Regulatory Act and other
          applicable law to participate in Indian gaming or in the alternative
          that no such findings or licenses are required; (cc) a legal opinion
          in form and substance reasonably acceptable to the Lakes Entities that
          such transfer is in compliance with all applicable federal, state and
          tribal laws, rules and regulations, including without limitation the
          Indian Gaming Regulatory Act, as amended (collectively, the
          "Applicable Laws"), and no additional approvals or consents of any
          federal, state or tribal governmental entity or third party is
          required with respect thereto under any Applicable Law or any other
          agreement between Kean and/or any of the Lakes Entities and the Tribe,
          if any, (dd) a written assignment and assumption agreement executed by
          Kean and the transferee in form and substance reasonably acceptable to
          Lakes whereby such transferee shall receive the rights of Kean under
          this Agreement and shall agree to be bound by the terms and provisions
          set forth herein; (ee) all sale proceeds payable on account of such
          transfer shall be paid to the Lakes Related Parties to be applied
          first towards the repayment of any amounts owing by Kean under this
          Agreement and secondly, to each of the other "Secured Obligations"
          owing to each "Secured Party" by Kean under the Security Agreement,
          and (ff) payment of all reasonable costs and expenses (including
          reasonable attorneys fees) of the Lakes Entities incurred in
          connection with completing such transfer. Lakes agrees to not
          unreasonably withhold consent to any permitted assignments by Kean.

     17.  ENTIRE AGREEMENT/RELEASE OF LAKES ENTERTAINMENT. This Agreement
          contains the entire understanding of the parties regarding its subject
          matter, and supercedes all prior negotiations, understandings and
          agreements of the parties and/or Lakes Entertainment, Inc. ("Lakes
          Entertainment") with respect thereto; and Kean acknowledges and agrees
          that all obligations of Lakes Entertainment and rights and claims of
          Kean under the Letter Agreement (as hereinafter defined) with respect
          to the Project and the Tribe are hereby terminated and released and
          are replaced by the terms and provisions set forth in this Agreement.
          The express terms of this Agreement shall control and supercede any
          course of performance and/or customary practice inconsistent with such
          terms. Any agreement between the parties hereunder made shall not
          change or modify this Agreement unless in writing and signed by the
          party against whom enforcement of such change or modification is
          sought. Any amendments to this Agreement must be in writing and signed
          by all parties.


                                        9

<PAGE>

     18.  SETOFF/RECOUPMENT RIGHTS. Subject to the limitations of Sections 5 and
          7 hereof and additional limitations set forth in the Security
          Agreement, the parties acknowledge and agree that each of the Lakes
          Related Parties (each of which shall be an intended third party
          beneficiary of this provision) shall have the right to setoff or
          recoup any amount owing to it by Kean (including without limitation,
          the Secured Obligations described in the Security Agreement) against
          any obligations owing by it to Kean under this Agreement or any other
          Loan Documents (as such term is defined in the Security Agreement.

     19.  NO JOINT AND SEVERAL LIABILITY. Except for the obligations of the
          Lakes Entities to make the Advance Payments to Kean as set forth in
          Section 5 hereof, the obligations of each of the Lakes Entities under
          this Agreement are several and not joint and several.

     20.  TIME OF THE ESSENCE. The parties acknowledge and agree that time is of
          the essence in connection with the performance of their respective
          obligations under this Agreement.

     21.  NOTICES. All notices, requests, consents and other communications
          required or permitted hereunder shall be in writing and shall be
          delivered, or mailed first class postage prepaid, registered or
          certified mail, addressed to a party at the address set forth in the
          introductory paragraph, or to such other address as a party may
          hereafter designate by written notice and may also be by facsimile at
          the following fax numbers or such other number as a as a party may
          hereafter designate by written notice:

          If to the Lakes Entities: 952-449-7064
                                    Attn: Timothy J. Cope
                                    Tcope@lakesentertainment.com

          If to the Kean:           702-734-9118
                                    Attn: Kevin M. Kean
                                    Kevin@keanco.net

     22.  COUNTERPARTS. This Agreement may be executed in any number of
          counterparts and by facsimile, each of which shall constitute one and
          the same agreement, and any of the parties hereto may execute this
          Agreement by signing such counterpart, provided that this Agreement
          shall not become effective until all parties have executed the same.

                            [Signature page follows]


                                       10

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement
on the date(s) set forth below.

LAKES KICKAPOO CONSULTING, LLC.


By: /s/ Timothy J. Cope
    --------------------------------
    Timothy J. Cope, President      Date: June 14, 2005


LAKES KICKAPOO MANAGEMENT, LLC.


By: /s/ Timothy J. Cope
    --------------------------------
    Timothy J. Cope, President      Date: June 14, 2005


    /s/ Kevin M. Kean
    --------------------------------
    Kevin M. Kean                   Date: June 14, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.147
<SEQUENCE>82
<FILENAME>c92713exv10w147.txt
<DESCRIPTION>CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.147

                              CONSULTING AGREEMENT

                                (Pawnee Project)

     This Consulting Agreement (this "Agreement") effective on June 2, 2005,
between Kevin M. Kean, 210 E. Flamingo Rd. #101, Las Vegas, NV 89109-4707
("Kean"), Lakes PAWNEE Consulting, LLC., a Minnesota limited liability company
("Lakes Consulting") and Lakes PAWNEE Management, LLC"., a Minnesota limited
liability company ("Lakes Management" and together with Lakes Consulting, the
"Lakes Entities").

                                   BACKGROUND

A. Kean is experienced in establishing and maintaining business relationships
and business ventures, including gaming projects, with federally recognized
Native American Indian Tribes specifically including the Pawnee Tribe of
Oklahoma (the "Tribe").

B. Lakes Consulting wishes to establish and enter into consulting agreements
(such agreements hereinafter referred to as the "Consulting Agreements") with
the Tribe respectively related to (i) the Tribe's existing gaming facility (the
"Trading Post Casino") in Pawnee, Oklahoma, and (ii) the design, construction,
and consultation of two new Indian gaming facilities and ancillary businesses to
be located on and/or near tribal lands near Pawnee on Hwy 18 and Hwy 412 and
Near Newkirk, Oklahoma on Hwy 177 (the "New Projects").

C. Lakes Management wishes to establish and enter into management agreements
(such agreement hereinafter referred to as the "Management Agreements") with the
Tribe related to the management of the Lucky Eagle Casino and the New Project
(collectively, the "Projects").

D. In pursuit of such goals the Lakes Entities have requested and Kean has
agreed to introduce the Lakes Entities to the Tribe and assist each of them in
respectively negotiating and executing their respective Consulting Agreements,
Management Agreements and related agreements ancillary thereto.

E. The Lakes Entities will make all final decisions and be responsible for the
consultation, development or management, as applicable, of the Projects and any
other project or venture with the Tribe. Kean will not have any authority or any
duties or obligations of consultation, development and/or management of the
Projects or any other gaming or other business ventures with the Tribe unless
specifically agreed to in writing between the parties.

     ACCORDINGLY, Kean and the Lakes Entities hereby covenant, agree and
obligate themselves as follows:

     1.   BACKGROUND. The Background statement is made a part of this Agreement.

<PAGE>

     2.   SERVICES. Kean's only duties under this Agreement, unless otherwise
          mutually agreed to, shall be for Kean to introduce the Lakes Entities
          to and foster their business relationship with the Tribe, and at the
          request of the Lakes Entities, to act as a consultant to each of them
          in negotiating and signing its respective Consulting Agreements and
          Management Agreements with the Tribe related to the Projects.

     3.   AUTHORITY. In performing his obligations hereunder, Kean shall not be
          and shall not represent himself as an agent of either of the Lakes
          Entities and shall not have any authority to bind either of the Lakes
          Entities contractually or otherwise, or to cause either of the Lakes
          Entities to incur any obligation to any third party including the
          Tribe.

     4.   TERM. The term of and Kean's rights under this Agreement will commence
          only upon final execution of this Agreement by all parties and shall
          terminate on the earlier of (a) with respect to Lakes Consulting, on
          the earlier of (i) the date of termination or expiration of the
          Consulting Agreements, as same may be renewed or extended, or (ii) the
          date that Lakes Consulting or any of its Affiliates is no longer the
          consultant of the Project; (b) with respect to Lakes Management, on
          the earlier of (i) the date of termination or expiration of the
          Management Agreements, as same may be renewed or extended, or (ii) the
          date that Lakes Management or any of its Affiliates is no longer the
          manager of the Projects, and (c) the date that the parties shall
          mutually terminate this agreement or the date that the Lakes Entities
          shall terminate this Agreement after the occurrence of an Event of
          Default (as hereinafter defined) by Kean or in accordance with Section
          15 below upon the occurrence of an adverse regulatory finding or
          determination against Kean. In the event that any of the Consulting
          Agreements or the Management Agreements is terminated or expires and
          the applicable Lake Entity or any of its Affiliates, whether directly
          or indirectly, enters into a new contract or agreement similar thereto
          with the Tribe related to the Projects within two (2) years after such
          termination or expiration, then this Agreement shall be reinstituted
          between Kean and such Lakes Entity or such Affiliate, as the case may
          be, upon the same terms as contained herein as of the date the new
          contract is executed with the Tribe, subject to Kean obtaining any all
          necessary federal, state and tribal regulatory approvals.

          As used in this Agreement, (yy) the term "Affiliate" shall mean with
          respect to any specified person or entity (a "Person"), any other
          Person that directly or indirectly, through one or more
          intermediaries, controls, is controlled by, or is under common control
          with the specified Person; and for the purposes of this definition,
          "control" (including the terms controlling, controlled by, or under
          common control with) means the possession, direct or indirect, or the
          power to direct or cause the direction of the management and policies
          of a person, whether through the ownership of voting securities,
          partnership or member interests, by


                                       2

<PAGE>

          contract or otherwise; and (zz) the term "Event of Default" shall mean
          the occurrence of any one or more of the following events: (1) any
          breach by Kean of his obligations under this Agreement, or (2) the
          occurrence of any breach or event of default by Kean or any of his
          Affiliates under any other document or agreement with any of the Lakes
          Entities or any of their respective Affiliates (but excluding Lakes
          Shingle Springs, Inc., Lakes Jamul, Inc., Lakes KAR Shingle Springs,
          L.L.C., Lakes Kean Argovitz Resorts-California, L.L.C).

     5.   ADVANCE PAYMENT OF KEAN CONSULTING FEES. The Lakes Entities hereby
          jointly and severally agree to make the following payments to Kean as
          advance payments of the Kean Consulting Fees to be paid to Kean under
          Section 6 hereof (collectively, the "Advance Payments"):

               a. Twenty Five Thousand Dollars ($25,000) for each of two months
               for assisting Lakes in signing a letter of intent with the Tribe
               ($25,000 which was advanced to Kean on September 9, 2004 and
               $25,000 which was advanced on October 12, 2004 and Kean hereby
               acknowledges receipt of such payments); and

               b. Twenty Five Thousand Dollars ($25,000) per month for a period
               of twelve (12) months commencing the earlier of (i) the date that
               the Tribe and Lakes Consulting sign the first Consulting
               Agreement, or (ii) if the Tribe and Lakes Management sign a
               Management Agreement for the New Project, the date upon which
               construction of the Project shall have commenced.

          The Advance Payments, together with accrued interest thereon, shall be
          due and payable as follows: (xx) on each date that any Kean Consulting
          Fee shall be paid to Kean under Section 6 hereof and in connection
          therewith, the Lakes Entities are authorized to setoff all such
          amounts against the then due and payable Kean Consulting Fee payment
          owing to Kean, provided that prior to the occurrence of an Event of
          Default by Kean, such right of setoff shall be limited to fifty
          percent (50%) of such Kean Consulting Fee; (yy) on the date of any
          permitted sale or assignment of Kean's rights under this Agreement,
          and (zz) upon the termination of Kean's rights under this Agreement in
          accordance with the terms herein, the occurrence of an Event of
          Default by Kean, or if Kean shall be found to be unsuitable under
          Section 15 hereof and this Agreement is not reinstated within the
          required one (1) year period, then such amounts shall become
          immediately due and payable in full.

     6.   FEE. Kean shall receive a consulting fee (individually and
          collectively, the "Kean Consulting Fee") for services rendered
          hereunder from each of the Lakes Entities as follows: (a) from Lakes
          Consulting, a fee equal to twenty percent (20%) of the sum of any
          development fees, consulting fees or other income received by Lakes
          Consulting under each Consulting


                                        3

<PAGE>

          Agreement (the "Lakes Consulting Fee") but specifically excluding the
          Excluded Payments (as hereinafter defined), and (b) from Lakes
          Management, a fee equal to twenty percent (20%) of the sum of any
          management fees or other income received by Lakes Management under
          each Management Agreement (the "Lakes Management Fee") but
          specifically excluding the Excluded Payments. As used herein, the term
          "Excluded Payments" shall mean all interest income, expense
          reimbursements and indemnification payments payable to either Lakes
          Consulting or Lakes Management under this Agreement.

          The Kean Consulting Fee shall be payable to Kean by the applicable
          Lakes Entity if and only if such Lakes Entity shall actually receive
          its respective Lakes Consulting Fee or Lakes Management Fee, as
          applicable, from the Tribe for such period. To the extent that the
          applicable Lakes Entity shall receive less than its required Lakes
          Consulting Fee or Lakes Management Fee, the Kean Consulting Fee due
          hereunder shall be reduced by a similar proportionate basis. Subject
          to the limitations set forth in this Agreement, the Kean Consulting
          Fee will be paid to Kean on a monthly basis within thirty (30) days
          after receipt by the applicable Lakes Entity of its respective Lakes
          Consulting Fee or Lakes Management Fee for such month. Kean shall
          further not be entitled to any compensation under this provision for
          any period prior to the commencement of the term of this Agreement and
          unless and until he has received such federal, state and tribal
          regulatory approvals and licenses as may be necessary for him to
          receive and the applicable Lakes Entity to pay the Kean Consulting
          Fee.

     7.   SECURITY INTEREST. Kean previously entered into that certain Loan and
          Security Agreement dated January 30, 2003 (the "Security Agreement")
          with Lakes Entertainment, Inc. (the indirect parent company of the
          Lakes Entities) and certain of its Affiliates. Kean acknowledges and
          agrees that he shall contemporaneously herewith amend the Security
          Agreement to add (a) each of the Lakes Entities as a "Secured Party",
          (b) the "Advance Payments as additional "Secured Obligations", and (c)
          the Kean Consulting Fees as additional collateral subject to the
          security interest provided in such Security Agreement.

     8.   INSPECTION OF RECORDS. Kean and/or his designated representative(s)
          shall be allowed not more often than once per calendar quarter and at
          his expense to review and inspect (including copying) any and all
          books, records and/or data in the possession and/or control of Lakes
          that concerns or relates to any contracts, revenues and/or receipts of
          any kind between each of the Lakes Entities and the Tribe. Kean and/or
          his representatives may conduct any review and inspection at the
          business office of Lakes or such other place as the documents are
          normally and customarily maintained at any time during the hours of
          8:00 a.m. through 5:00 p.m., Monday through Friday. Kean shall give
          Lakes five (5) business days


                                        4

<PAGE>

          written notice of the date and time that he intends to begin any
          review and inspection of documents. Kean shall and shall cause his
          agents to keep all such books, records and information confidential in
          accordance with the following confidentiality provisions:

          (a) For purposes of this agreement, "Confidential Information" means
          non-public information relating to either of the Lakes Entities or
          their Affiliates, but does not include information that Kean can
          demonstrate (i) was already known to Kean, or (ii) was or becomes
          generally available to the public, or part of the public domain,
          through no fault of, or disclosure by, Kean or his agents, or (iii)
          was or becomes available to Kean from a source other than either of
          the Lakes Entities or their Affiliates, provided that such source is
          not bound by a duty of confidentiality to any of them.

          (b) Kean agrees to use Confidential Information solely in connection
          with discussions with the Lakes Entities or related transactions, and
          to keep all such Confidential Information strictly secret and
          confidential. Unless authorized in writing by the Lakes Entities, Kean
          will maintain all Confidential Information in confidence and will not
          divulge to anyone outside the Lakes Entities or use any of the
          Confidential Information for Kean's own or another's benefit. Kean
          shall be responsible for any breach of this agreement by any his
          agents and any person (other than Lakes Entities or their Affiliates
          and their respective officers, directors, employees and independent
          contractors) to whom Kean discloses any of the Confidential
          Information.

          (c) If, notwithstanding this agreement, any of the Confidential
          Information is required to be disclosed by applicable law, regulatory
          requirement or legal process, Kean will give the Lakes Entities prompt
          notice of such requirement and, if requested, will assist the Lakes
          Entities in seeking a protective order or other measures to preserve
          the confidentiality of such Confidential Information insofar as
          possible.

          (d) Once this Agreement has ended, upon the request of either of the
          Lakes Entities, all Confidential Information theretofore provided by
          the Lakes Entities or their Affiliates to Kean (and all copies,
          summaries and notes of the contents or parts thereof) shall be
          returned to the Lakes Entities and not retained by Kean in any form,
          and Kean shall upon request promptly provide to the Lakes Entities a
          certificate signed by Kean confirming that all such materials have
          been returned to the Lakes Entities.

     9.   NO JOINT VENTURE. This Agreement is not intended to create any joint
          venture between either of the Lakes Entities and Kean. Each of the
          Lakes Entities shall be solely responsible for arranging for the
          funding, financing or otherwise capitalizing any business or venture
          or project that it may enter into with the Tribe. Kean does not
          represent that he has the capability to or that he will be responsible
          in any manner for funding, financing or otherwise capitalizing all or
          any portion any business or


                                        5

<PAGE>

          venture or project that either of the Lakes Entities may enter into
          with the Tribe.

     10.  BEST EFFORTS. Kean shall perform his duties hereunder, both express
          and implied, at all times in good faith and to the best of his ability
          and shall use his best efforts in connection with providing the
          services required to be provided to the Lakes Entities under this
          Agreement.

     11.  NON-COMPETE. Unless approved by the Tribe and Lakes, Kean agrees that
          (a) he shall and shall cause any entity in which he shall directly or
          indirectly own an equity interest together with any officers,
          directors, equity owners, employees and agents of such entity
          (collectively, the "Non-compete Parties"), to comply with each of the
          non-competition agreements set forth in the Consulting Agreements, the
          Management Agreements and/or under any related documents and
          agreements; and (b) in addition to the foregoing, that he shall not
          and shall cause each of the other Non-compete Parties to not directly
          or indirectly solicit or enter into any consulting, brokerage,
          management, financing or other similar agreement with the Tribe other
          than on behalf of the Lakes Entities.

     12.  FURTHER ASSURANCES. Each of the Lakes Entities and Kean agrees to
          execute such additional documents and agreements as are necessary to
          effectuate the intents and purposes of this Agreement.

     13.  GOVERNING LAW/VENUE. This Agreement will be governed by and
          interpreted in accordance with Minnesota law. SUBJECT TO THE TERMS OF
          SECTION 14 HEREOF, THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS
          ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED
          ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF
          HENNEPIN, STATE OF MINNESOTA OR, AT THE SOLE OPTION OF THE LAKES
          ENTITIES, IN ANY OTHER COURT IN WHICH THE LAKES ENTITIES SHALL
          INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER
          JURISDICTION OVER THE MATTER IN CONTROVERSY. THE PARTIES WAIVE, TO THE
          EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO
          ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO
          THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

     14.  DISPUTE RESOLUTION/ARBITRATION. In connection with any dispute
          hereunder, the parties agree to negotiate in good faith for up to
          twenty days. If they are unable to resolve the dispute in such period,
          then either party may demand and such dispute shall be submitted to
          and resolve by binding arbitration in accordance with the following
          terms:


                                        6

<PAGE>

          (a) GOVERNING RULES. Any arbitration proceeding will (i) proceed in a
          location in Minneapolis Minnesota selected by the American Arbitration
          Association ("AAA"); (ii) be governed by the Federal Arbitration Act
          (Title 9 of the United States Code), notwithstanding any conflicting
          choice of law provision in any of the documents between the parties;
          and (iii) be conducted by the AAA, or such other administrator as the
          parties shall mutually agree upon, in accordance with the AAA's
          commercial dispute resolution procedures. Any party who fails or
          refuses to submit to arbitration following a demand by any other party
          shall bear all costs and expenses incurred by such other party in
          compelling arbitration of any dispute. The arbitration requirement
          does not limit the right of any party to obtain provisional or
          ancillary remedies such as replevin, injunctive relief, attachment or
          the appointment of a receiver or the exercise of any foreclosure or
          self-help remedies under the Minnesota Uniform Commercial Code, before
          during or after the pendency of any arbitration proceeding. The
          parties agree that any arbitration proceeding amongst each of them
          and/or any of their related Affiliates, whether under this Agreement
          or any other agreement, may be consolidated with any other arbitration
          proceeding amongst or between any of such parties.

          (b) ARBITRATOR POWERS. The arbitrator will determine whether or not an
          issue is arbitratable and will give effect to the statutes of
          limitation in determining any claim. In any arbitration proceeding the
          arbitrator will decide (by documents only or with a hearing at the
          arbitrator's discretion) any pre-hearing motions which are similar to
          motions to dismiss for failure to state a claim or motions for summary
          adjudication. The arbitrator may grant any remedy or relief that a
          court of such state could order or grant within the scope hereof and
          such ancillary relief as is necessary to make effective any award. The
          arbitrator shall also have the power to award recovery of all costs
          and fees, to impose sanctions and to take such other action as the
          arbitrator deems necessary to the same extent a judge could pursuant
          to the Federal Rules of Civil Procedure, the Minnesota Rules of Civil
          Procedure or other applicable law. Judgment upon the award or any
          order or determination rendered by the arbitrator may be entered in
          any court having jurisdiction. The institution and maintenance of an
          action for judicial relief or pursuit of a provisional or ancillary
          remedy shall not constitute a waiver of the right of any party,
          including the plaintiff, to submit the controversy or claim to
          arbitration if any other party contests such action for judicial
          relief.

          (c) MISCELLANEOUS. The arbitrator shall award all costs and expenses
          of the arbitration proceeding. To the maximum extent practicable, the
          AAA, the arbitrators and the parties shall take all action required to
          conclude any arbitration proceeding within 180 days of the filing of
          the dispute with the AAA. No arbitrator or other party to an
          arbitration proceeding may disclose the existence, content or results
          thereof, except for disclosures of information by a party required in
          the ordinary course of its business or by


                                        7

<PAGE>

          applicable law or regulation. If more than one agreement for
          arbitration by or between the parties potentially applies to a
          dispute, the arbitration provision most directly related to the
          documents between the parties or the subject matter of the dispute
          shall control. This arbitration provision shall survive termination,
          amendment or expiration of any of the documents or any relationship
          between the parties.

     15.  ADVERSE REGULATORY ACTION. The parties acknowledge and agree that an
          important purpose of this Agreement is to allow the Lakes Entities to
          promptly achieve any and all necessary regulatory approval and if
          applicable, become licensed by the National Indian Gaming Commission
          ("NIGC") and any applicable state and tribal regulatory authorities
          (collectively, the "Regulatory Authorities") and to immediately allow
          the completion of design, construction and/or management of a gaming
          facility on lands of the Tribe. Should any of the Regulatory
          Authorities take any action to nullify or otherwise disrupt this
          Agreement, then the parties shall immediately meet and negotiate in
          good faith to agree to such modifications as may be necessary to
          obtain such regulatory approval hereof while still maintaining the
          intents and purposes of this Agreement, with any disputes related
          thereto resolved by arbitration as provided for above; provided
          however that if at any time any Regulatory Authorities shall issue a
          determination that Kean is unsuitable under any applicable gaming laws
          and thus may not receive the Kean Consulting Fee, then Kean's right to
          receive such Fee hereunder shall immediately terminate, but such
          rights shall be reinstated if within one (1) year after the issuance
          thereof, such ruling is reversed or vacated and Kean is found to be
          suitable.

     16.  ASSIGNMENT. This Agreement shall be binding upon and inure to the
          benefit of the parties hereto and their respective heirs, successors
          and assigns and to the extent expressly referred to herein, shall also
          inure to the benefit of the Affiliates of each of the parties, except
          that Kean may not assign his rights or obligations, in whole or in
          part, hereunder except with the prior written consent of the Lakes
          Entities which written consent shall not be required in the event that
          Kean shall desire to assign his right to receive the Consulting Fee
          (subject to the terms and conditions set forth below) to a legal
          entity in which he owns, directly or indirectly, 51% or more of the
          equity interest or to an immediate family member (excluding any
          spouse), i.e., child, mother, father, brother or sister but not a
          spouse. Any permitted assignment of such financial interest shall be
          further conditioned upon Kean's satisfaction of the following
          conditions precedent: (i) any such assignment shall not relieve Kean
          of his duties and obligations under this Agreement and at the time of
          such transfer, no Event of Default by Kean shall have occurred, (ii)
          all rights of any assignee under this Agreement and any related
          documents and agreements shall be expressly subject and subordinate to
          the rights and interests of each of the Lakes Entities and their
          Affiliates (the "Lakes Related


                                        8

<PAGE>

          Parties") hereunder and under the Security Agreement and any related
          documents and agreements and such assignee shall execute and deliver
          in favor of the Lakes Related Parties a subordination agreement in
          form and substance reasonably acceptable to such Lakes Related
          Parties, and (iii) the Lakes Entities receiving (aa) a copy of all
          documents and agreements relating to such transfer, (bb) written
          evidence that such transferee is "suitable" and has obtained any
          necessary licenses and approvals required from any Regulatory
          Authorities under the Indian Gaming Regulatory Act and other
          applicable law to participate in Indian gaming or in the alternative
          that no such findings or licenses are required; (cc) a legal opinion
          in form and substance reasonably acceptable to the Lakes Entities that
          such transfer is in compliance with all applicable federal, state and
          tribal laws, rules and regulations, including without limitation the
          Indian Gaming Regulatory Act, as amended (collectively, the
          "Applicable Laws"), and no additional approvals or consents of any
          federal, state or tribal governmental entity or third party is
          required with respect thereto under any Applicable Law or any other
          agreement between Kean and/or any of the Lakes Entities and the Tribe,
          if any, (dd) a written assignment and assumption agreement executed by
          Kean and the transferee in form and substance reasonably acceptable to
          Lakes whereby such transferee shall receive the rights of Kean under
          this Agreement and shall agree to be bound by the terms and provisions
          set forth herein; (ee) all sale proceeds payable on account of such
          transfer shall be paid to the Lakes Related Parties to be applied
          first towards the repayment of any amounts owing by Kean under this
          Agreement and secondly, to each of the other "Secured Obligations"
          owing to each "Secured Party" by Kean under the Security Agreement,
          and (ff) payment of all reasonable costs and expenses (including
          reasonable attorneys fees) of the Lakes Entities incurred in
          connection with completing such transfer. Lakes agrees to not
          unreasonably withhold consent to any permitted assignments by Kean.

     17.  ENTIRE AGREEMENT/RELEASE OF LAKES ENTERTAINMENT. This Agreement
          contains the entire understanding of the parties regarding its subject
          matter, and supercedes all prior negotiations, understandings and
          agreements of the parties and/or Lakes Entertainment, Inc. ("Lakes
          Entertainment") with respect thereto; and Kean acknowledges and agrees
          that all obligations of Lakes Entertainment and rights and claims of
          Kean under the Letter Agreement (as hereinafter defined) with respect
          to the Project and the Tribe are hereby terminated and released and
          are replaced by the terms and provisions set forth in this Agreement.
          The express terms of this Agreement shall control and supercede any
          course of performance and/or customary practice inconsistent with such
          terms. Any agreement between the parties hereunder made shall not
          change or modify this Agreement unless in writing and signed by the
          party against whom enforcement of such change or modification is
          sought. Any amendments to this Agreement must be in writing and signed
          by all parties.


                                        9

<PAGE>

     18.  SETOFF/RECOUPMENT RIGHTS. Subject to the limitations of Sections 5 and
          7 hereof and additional limitations set forth in the Security
          Agreement, the parties acknowledge and agree that each of the Lakes
          Related Parties (each of which shall be an intended third party
          beneficiary of this provision) shall have the right to setoff or
          recoup any amount owing to it by Kean (including without limitation,
          the Secured Obligations described in the Security Agreement) against
          any obligations owing by it to Kean under this Agreement or any other
          Loan Documents (as such term is defined in the Security Agreement.

     19.  NO JOINT AND SEVERAL LIABILITY. Except for the obligations of the
          Lakes Entities to make the Advance Payments to Kean as set forth in
          Section 5 hereof, the obligations of each of the Lakes Entities under
          this Agreement are several and not joint and several.

     20.  TIME OF THE ESSENCE. The parties acknowledge and agree that time is of
          the essence in connection with the performance of their respective
          obligations under this Agreement.

     21.  NOTICES. All notices, requests, consents and other communications
          required or permitted hereunder shall be in writing and shall be
          delivered, or mailed first class postage prepaid, registered or
          certified mail, addressed to a party at the address set forth in the
          introductory paragraph, or to such other address as a party may
          hereafter designate by written notice and may also be by facsimile at
          the following fax numbers or such other number as a as a party may
          hereafter designate by written notice:

          If to the Lakes Entities: 952-449-7064
                                    Attn: Timothy J. Cope
                                    Tcope@lakesentertainment.com

          If to the Kean:           702-734-9118
                                    Attn: Kevin M. Kean
                                    Kevin@keanco.net

     22.  COUNTERPARTS. This Agreement may be executed in any number of
          counterparts and by facsimile, each of which shall constitute one and
          the same agreement, and any of the parties hereto may execute this
          Agreement by signing such counterpart, provided that this Agreement
          shall not become effective until all parties have executed the same.

                            [Signature page follows]


                                       10

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement
on the date(s) set forth below.

LAKES PAWNEE CONSULTING, LLC.


By: /s/ Timothy J. Cope
    --------------------------------
    Timothy J. Cope, President      Date: June 14, 2005


LAKES PAWNEE MANAGEMENT, LLC.


By: /s/ Timothy J. Cope
    --------------------------------
    Timothy J. Cope, President      Date: June 14, 2005


    /s/ Kevin M. Kean
    --------------------------------
    Kevin M. Kean                   Date: June 2, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.148
<SEQUENCE>83
<FILENAME>c92713exv10w148.txt
<DESCRIPTION>CONSULTING AGREEMENT
<TEXT>
<PAGE>
                                                                  Exhibit 10.148

                              CONSULTING AGREEMENT

                                 (Iowa Project)

     This Consulting Agreement (this "Agreement") effective on June 2, 2005,
between Kevin M. Kean, 210 E. Flamingo Rd. #101, Las Vegas, NV 89109-4707
("Kean"), Lakes iowa Consulting, LLC., a Minnesota limited liability company
("Lakes Consulting") and Lakes iowa Management, LLC"., a Minnesota limited
liability company ("Lakes Management" and together with Lakes Consulting, the
"Lakes Entities").

                                   BACKGROUND

A. Kean is experienced in establishing and maintaining business relationships
and business ventures, including gaming projects, with federally recognized
Native American Indian Tribes specifically including the Iowa Tribe of Oklahoma
(the "Tribe").

B. Lakes Consulting wishes to establish and enter into consulting agreements
(such agreements hereinafter referred to as the "Consulting Agreements") with
the Tribe respectively related to (i) the Tribe's existing gaming facility (the
"Cimarron Casino") near Perkins, Oklahoma, and (ii) the design, construction,
and consultation of a new Indian gaming facility and ancillary businesses to be
located on and/or near tribal lands near Chandler, Oklahoma (the "New Project").

C. Lakes Management wishes to establish and enter into management agreements
(such agreement hereinafter referred to as the "Management Agreements") with the
Tribe related to the management of the Cimarron Casino and the New Project
(collectively, the "Projects").

D. In pursuit of such goals the Lakes Entities have requested and Kean has
agreed to introduce the Lakes Entities to the Tribe and assist each of them in
respectively negotiating and executing their respective Consulting Agreements,
Management Agreements and related agreements ancillary thereto.

E. The Lakes Entities will make all final decisions and be responsible for the
consultation, development or management, as applicable, of the Projects and any
other project or venture with the Tribe. Kean will not have any authority or any
duties or obligations of consultation, development and/or management of the
Projects or any other gaming or other business ventures with the Tribe unless
specifically agreed to in writing between the parties.

     ACCORDINGLY, Kean and the Lakes Entities hereby covenant, agree and
obligate themselves as follows:

     1.   BACKGROUND. The Background statement is made a part of this Agreement.

<PAGE>

     2.   SERVICES. Kean's only duties under this Agreement, unless otherwise
          mutually agreed to, shall be for Kean to introduce the Lakes Entities
          to and foster their business relationship with the Tribe, and at the
          request of the Lakes Entities, to act as a consultant to each of them
          in negotiating and signing its respective Consulting Agreements and
          Management Agreements with the Tribe related to the Projects.

     3.   AUTHORITY. In performing his obligations hereunder, Kean shall not be
          and shall not represent himself as an agent of either of the Lakes
          Entities and shall not have any authority to bind either of the Lakes
          Entities contractually or otherwise, or to cause either of the Lakes
          Entities to incur any obligation to any third party including the
          Tribe.

     4.   TERM. The term of and Kean's rights under this Agreement will commence
          only upon final execution of this Agreement by all parties and shall
          terminate on the earlier of (a) with respect to Lakes Consulting, on
          the earlier of (i) the date of termination or expiration of the
          Consulting Agreements, as same may be renewed or extended, or (ii) the
          date that Lakes Consulting or any of its Affiliates is no longer the
          consultant of the Project; (b) with respect to Lakes Management, on
          the earlier of (i) the date of termination or expiration of the
          Management Agreements, as same may be renewed or extended, or (ii) the
          date that Lakes Management or any of its Affiliates is no longer the
          manager of the Projects, and (c) the date that the parties shall
          mutually terminate this agreement or the date that the Lakes Entities
          shall terminate this Agreement after the occurrence of an Event of
          Default (as hereinafter defined) by Kean or in accordance with Section
          15 below upon the occurrence of an adverse regulatory finding or
          determination against Kean. In the event that any of the Consulting
          Agreements or the Management Agreements is terminated or expires and
          the applicable Lake Entity or any of its Affiliates, whether directly
          or indirectly, enters into a new contract or agreement similar thereto
          with the Tribe related to the Projects within two (2) years after such
          termination or expiration, then this Agreement shall be reinstituted
          between Kean and such Lakes Entity or such Affiliate, as the case may
          be, upon the same terms as contained herein as of the date the new
          contract is executed with the Tribe, subject to Kean obtaining any all
          necessary federal, state and tribal regulatory approvals.

          As used in this Agreement, (yy) the term "Affiliate" shall mean with
          respect to any specified person or entity (a "Person"), any other
          Person that directly or indirectly, through one or more
          intermediaries, controls, is controlled by, or is under common control
          with the specified Person; and for the purposes of this definition,
          "control" (including the terms controlling, controlled by, or under
          common control with) means the possession, direct or indirect, or the
          power to direct or cause the direction of the management and policies
          of a person, whether through the ownership of voting securities,
          partnership or member interests, by


                                        2

<PAGE>

          contract or otherwise; and (zz) the term "Event of Default" shall mean
          the occurrence of any one or more of the following events: (1) any
          breach by Kean of his obligations under this Agreement, or (2) the
          occurrence of any breach or event of default by Kean or any of his
          Affiliates under any other document or agreement with any of the Lakes
          Entities or any of their respective Affiliates (but excluding Lakes
          Shingle Springs, Inc., Lakes Jamul, Inc., Lakes KAR Shingle Springs,
          L.L.C., Lakes Kean Argovitz Resorts-California, L.L.C).

     5.   ADVANCE PAYMENT OF KEAN CONSULTING FEES. The Lakes Entities hereby
          jointly and severally agree to make the following payments to Kean as
          advance payments of the Kean Consulting Fees to be paid to Kean under
          Section 6 hereof (collectively, the "Advance Payments"):

               a. Twenty Five Thousand Dollars ($25,000) for each of two months
               for assisting Lakes in signing a letter of intent with the Tribe
               ($25,000 which was advanced to Kean on October 12, 2004 and
               $25,000 which was advanced on November 12, 2004 and Kean hereby
               acknowledges receipt of such payments); and

               b. Twenty Five Thousand Dollars ($25,000) per month for a period
               of twelve (12) months commencing the earlier of (i) the date that
               the Tribe and Lakes Consulting sign the first Consulting
               Agreement, or (ii) if the Tribe and Lakes Management sign a
               Management Agreement for the New Project, the date upon which
               construction of the Project shall have commenced.

          The Advance Payments, together with accrued interest thereon, shall be
          due and payable as follows: (xx) on each date that any Kean Consulting
          Fee shall be paid to Kean under Section 6 hereof and in connection
          therewith, the Lakes Entities are authorized to setoff all such
          amounts against the then due and payable Kean Consulting Fee payment
          owing to Kean, provided that prior to the occurrence of an Event of
          Default by Kean, such right of setoff shall be limited to fifty
          percent (50%) of such Kean Consulting Fee; (yy) on the date of any
          permitted sale or assignment of Kean's rights under this Agreement,
          and (zz) upon the termination of Kean's rights under this Agreement in
          accordance with the terms herein, the occurrence of an Event of
          Default by Kean, or if Kean shall be found to be unsuitable under
          Section 15 hereof and this Agreement is not reinstated within the
          required one (1) year period, then such amounts shall become
          immediately due and payable in full.

     6.   FEE. Kean shall receive a consulting fee (individually and
          collectively, the "Kean Consulting Fee") for services rendered
          hereunder from each of the Lakes Entities as follows: (a) from Lakes
          Consulting, a fee equal to twenty percent (20%) of the sum of any
          development fees, consulting fees or other income received by Lakes
          Consulting under each Consulting


                                        3

<PAGE>

          Agreement (the "Lakes Consulting Fee") but specifically excluding the
          Excluded Payments (as hereinafter defined), and (b) from Lakes
          Management, a fee equal to twenty percent (20%) of the sum of any
          management fees or other income received by Lakes Management under
          each Management Agreement (the "Lakes Management Fee") but
          specifically excluding the Excluded Payments. As used herein, the term
          "Excluded Payments" shall mean all interest income, expense
          reimbursements and indemnification payments payable to either Lakes
          Consulting or Lakes Management under this Agreement.

          The Kean Consulting Fee shall be payable to Kean by the applicable
          Lakes Entity if and only if such Lakes Entity shall actually receive
          its respective Lakes Consulting Fee or Lakes Management Fee, as
          applicable, from the Tribe for such period. To the extent that the
          applicable Lakes Entity shall receive less than its required Lakes
          Consulting Fee or Lakes Management Fee, the Kean Consulting Fee due
          hereunder shall be reduced by a similar proportionate basis. Subject
          to the limitations set forth in this Agreement, the Kean Consulting
          Fee will be paid to Kean on a monthly basis within thirty (30) days
          after receipt by the applicable Lakes Entity of its respective Lakes
          Consulting Fee or Lakes Management Fee for such month. Kean shall
          further not be entitled to any compensation under this provision for
          any period prior to the commencement of the term of this Agreement and
          unless and until he has received such federal, state and tribal
          regulatory approvals and licenses as may be necessary for him to
          receive and the applicable Lakes Entity to pay the Kean Consulting
          Fee.

     7.   SECURITY INTEREST. Kean previously entered into that certain Loan and
          Security Agreement dated January 30, 2003 (the "Security Agreement")
          with Lakes Entertainment, Inc. (the indirect parent company of the
          Lakes Entities) and certain of its Affiliates. Kean acknowledges and
          agrees that he shall contemporaneously herewith amend the Security
          Agreement to add (a) each of the Lakes Entities as a "Secured Party",
          (b) the "Advance Payments as additional "Secured Obligations", and (c)
          the Kean Consulting Fees as additional collateral subject to the
          security interest provided in such Security Agreement.

     8.   INSPECTION OF RECORDS. Kean and/or his designated representative(s)
          shall be allowed not more often than once per calendar quarter and at
          his expense to review and inspect (including copying) any and all
          books, records and/or data in the possession and/or control of Lakes
          that concerns or relates to any contracts, revenues and/or receipts of
          any kind between each of the Lakes Entities and the Tribe. Kean and/or
          his representatives may conduct any review and inspection at the
          business office of Lakes or such other place as the documents are
          normally and customarily maintained at any time during the hours of
          8:00 a.m. through 5:00 p.m., Monday through Friday. Kean shall give
          Lakes five (5) business days


                                        4

<PAGE>

          written notice of the date and time that he intends to begin any
          review and inspection of documents. Kean shall and shall cause his
          agents to keep all such books, records and information confidential in
          accordance with the following confidentiality provisions:

          (a) For purposes of this agreement, "Confidential Information" means
          non-public information relating to either of the Lakes Entities or
          their Affiliates, but does not include information that Kean can
          demonstrate (i) was already known to Kean, or (ii) was or becomes
          generally available to the public, or part of the public domain,
          through no fault of, or disclosure by, Kean or his agents, or (iii)
          was or becomes available to Kean from a source other than either of
          the Lakes Entities or their Affiliates, provided that such source is
          not bound by a duty of confidentiality to any of them.

          (b) Kean agrees to use Confidential Information solely in connection
          with discussions with the Lakes Entities or related transactions, and
          to keep all such Confidential Information strictly secret and
          confidential. Unless authorized in writing by the Lakes Entities, Kean
          will maintain all Confidential Information in confidence and will not
          divulge to anyone outside the Lakes Entities or use any of the
          Confidential Information for Kean's own or another's benefit. Kean
          shall be responsible for any breach of this agreement by any his
          agents and any person (other than Lakes Entities or their Affiliates
          and their respective officers, directors, employees and independent
          contractors) to whom Kean discloses any of the Confidential
          Information.

          (c) If, notwithstanding this agreement, any of the Confidential
          Information is required to be disclosed by applicable law, regulatory
          requirement or legal process, Kean will give the Lakes Entities prompt
          notice of such requirement and, if requested, will assist the Lakes
          Entities in seeking a protective order or other measures to preserve
          the confidentiality of such Confidential Information insofar as
          possible.

          (d) Once this Agreement has ended, upon the request of either of the
          Lakes Entities, all Confidential Information theretofore provided by
          the Lakes Entities or their Affiliates to Kean (and all copies,
          summaries and notes of the contents or parts thereof) shall be
          returned to the Lakes Entities and not retained by Kean in any form,
          and Kean shall upon request promptly provide to the Lakes Entities a
          certificate signed by Kean confirming that all such materials have
          been returned to the Lakes Entities.

     9.   NO JOINT VENTURE. This Agreement is not intended to create any joint
          venture between either of the Lakes Entities and Kean. Each of the
          Lakes Entities shall be solely responsible for arranging for the
          funding, financing or otherwise capitalizing any business or venture
          or project that it may enter into with the Tribe. Kean does not
          represent that he has the capability to or that he will be responsible
          in any manner for funding, financing or otherwise capitalizing all or
          any portion any business or


                                        5

<PAGE>

          venture or project that either of the Lakes Entities may enter into
          with the Tribe.

     10.  BEST EFFORTS. Kean shall perform his duties hereunder, both express
          and implied, at all times in good faith and to the best of his ability
          and shall use his best efforts in connection with providing the
          services required to be provided to the Lakes Entities under this
          Agreement.

     11.  NON-COMPETE. Unless approved by the Tribe and Lakes, Kean agrees that
          (a) he shall and shall cause any entity in which he shall directly or
          indirectly own an equity interest together with any officers,
          directors, equity owners, employees and agents of such entity
          (collectively, the "Non-compete Parties"), to comply with each of the
          non-competition agreements set forth in the Consulting Agreements, the
          Management Agreements and/or under any related documents and
          agreements; and (b) in addition to the foregoing, that he shall not
          and shall cause each of the other Non-compete Parties to not directly
          or indirectly solicit or enter into any consulting, brokerage,
          management, financing or other similar agreement with the Tribe other
          than on behalf of the Lakes Entities.

     12.  FURTHER ASSURANCES. Each of the Lakes Entities and Kean agrees to
          execute such additional documents and agreements as are necessary to
          effectuate the intents and purposes of this Agreement.

     13.  GOVERNING LAW/VENUE. This Agreement will be governed by and
          interpreted in accordance with Minnesota law. SUBJECT TO THE TERMS OF
          SECTION 14 HEREOF, THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS
          ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED
          ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF
          HENNEPIN, STATE OF MINNESOTA OR, AT THE SOLE OPTION OF THE LAKES
          ENTITIES, IN ANY OTHER COURT IN WHICH THE LAKES ENTITIES SHALL
          INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER
          JURISDICTION OVER THE MATTER IN CONTROVERSY. THE PARTIES WAIVE, TO THE
          EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO
          ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO
          THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

     14.  DISPUTE RESOLUTION/ARBITRATION. In connection with any dispute
          hereunder, the parties agree to negotiate in good faith for up to
          twenty days. If they are unable to resolve the dispute in such period,
          then either party may demand and such dispute shall be submitted to
          and resolve by binding arbitration in accordance with the following
          terms:


                                        6

<PAGE>

          (a) GOVERNING RULES. Any arbitration proceeding will (i) proceed in a
          location in Minneapolis Minnesota selected by the American Arbitration
          Association ("AAA"); (ii) be governed by the Federal Arbitration Act
          (Title 9 of the United States Code), notwithstanding any conflicting
          choice of law provision in any of the documents between the parties;
          and (iii) be conducted by the AAA, or such other administrator as the
          parties shall mutually agree upon, in accordance with the AAA's
          commercial dispute resolution procedures. Any party who fails or
          refuses to submit to arbitration following a demand by any other party
          shall bear all costs and expenses incurred by such other party in
          compelling arbitration of any dispute. The arbitration requirement
          does not limit the right of any party to obtain provisional or
          ancillary remedies such as replevin, injunctive relief, attachment or
          the appointment of a receiver or the exercise of any foreclosure or
          self-help remedies under the Minnesota Uniform Commercial Code, before
          during or after the pendency of any arbitration proceeding. The
          parties agree that any arbitration proceeding amongst each of them
          and/or any of their related Affiliates, whether under this Agreement
          or any other agreement, may be consolidated with any other arbitration
          proceeding amongst or between any of such parties.

          (b) ARBITRATOR POWERS. The arbitrator will determine whether or not an
          issue is arbitratable and will give effect to the statutes of
          limitation in determining any claim. In any arbitration proceeding the
          arbitrator will decide (by documents only or with a hearing at the
          arbitrator's discretion) any pre-hearing motions which are similar to
          motions to dismiss for failure to state a claim or motions for summary
          adjudication. The arbitrator may grant any remedy or relief that a
          court of such state could order or grant within the scope hereof and
          such ancillary relief as is necessary to make effective any award. The
          arbitrator shall also have the power to award recovery of all costs
          and fees, to impose sanctions and to take such other action as the
          arbitrator deems necessary to the same extent a judge could pursuant
          to the Federal Rules of Civil Procedure, the Minnesota Rules of Civil
          Procedure or other applicable law. Judgment upon the award or any
          order or determination rendered by the arbitrator may be entered in
          any court having jurisdiction. The institution and maintenance of an
          action for judicial relief or pursuit of a provisional or ancillary
          remedy shall not constitute a waiver of the right of any party,
          including the plaintiff, to submit the controversy or claim to
          arbitration if any other party contests such action for judicial
          relief.

          (c) MISCELLANEOUS. The arbitrator shall award all costs and expenses
          of the arbitration proceeding. To the maximum extent practicable, the
          AAA, the arbitrators and the parties shall take all action required to
          conclude any arbitration proceeding within 180 days of the filing of
          the dispute with the AAA. No arbitrator or other party to an
          arbitration proceeding may disclose the existence, content or results
          thereof, except for disclosures of information by a party required in
          the ordinary course of its business or by


                                        7

<PAGE>

          applicable law or regulation. If more than one agreement for
          arbitration by or between the parties potentially applies to a
          dispute, the arbitration provision most directly related to the
          documents between the parties or the subject matter of the dispute
          shall control. This arbitration provision shall survive termination,
          amendment or expiration of any of the documents or any relationship
          between the parties.

     15.  ADVERSE REGULATORY ACTION. The parties acknowledge and agree that an
          important purpose of this Agreement is to allow the Lakes Entities to
          promptly achieve any and all necessary regulatory approval and if
          applicable, become licensed by the National Indian Gaming Commission
          ("NIGC") and any applicable state and tribal regulatory authorities
          (collectively, the "Regulatory Authorities") and to immediately allow
          the completion of design, construction and/or management of a gaming
          facility on lands of the Tribe. Should any of the Regulatory
          Authorities take any action to nullify or otherwise disrupt this
          Agreement, then the parties shall immediately meet and negotiate in
          good faith to agree to such modifications as may be necessary to
          obtain such regulatory approval hereof while still maintaining the
          intents and purposes of this Agreement, with any disputes related
          thereto resolved by arbitration as provided for above; provided
          however that if at any time any Regulatory Authorities shall issue a
          determination that Kean is unsuitable under any applicable gaming laws
          and thus may not receive the Kean Consulting Fee, then Kean's right to
          receive such Fee hereunder shall immediately terminate, but such
          rights shall be reinstated if within one (1) year after the issuance
          thereof, such ruling is reversed or vacated and Kean is found to be
          suitable.

     16.  ASSIGNMENT. This Agreement shall be binding upon and inure to the
          benefit of the parties hereto and their respective heirs, successors
          and assigns and to the extent expressly referred to herein, shall also
          inure to the benefit of the Affiliates of each of the parties, except
          that Kean may not assign his rights or obligations, in whole or in
          part, hereunder except with the prior written consent of the Lakes
          Entities which written consent shall not be required in the event that
          Kean shall desire to assign his right to receive the Consulting Fee
          (subject to the terms and conditions set forth below) to a legal
          entity in which he owns, directly or indirectly, 51% or more of the
          equity interest or to an immediate family member (excluding any
          spouse), i.e., child, mother, father, brother or sister but not a
          spouse. Any permitted assignment of such financial interest shall be
          further conditioned upon Kean's satisfaction of the following
          conditions precedent: (i) any such assignment shall not relieve Kean
          of his duties and obligations under this Agreement and at the time of
          such transfer, no Event of Default by Kean shall have occurred, (ii)
          all rights of any assignee under this Agreement and any related
          documents and agreements shall be expressly subject and subordinate to
          the rights and interests of each of the Lakes Entities and their
          Affiliates (the "Lakes Related


                                        8

<PAGE>

          Parties") hereunder and under the Security Agreement and any related
          documents and agreements and such assignee shall execute and deliver
          in favor of the Lakes Related Parties a subordination agreement in
          form and substance reasonably acceptable to such Lakes Related
          Parties, and (iii) the Lakes Entities receiving (aa) a copy of all
          documents and agreements relating to such transfer, (bb) written
          evidence that such transferee is "suitable" and has obtained any
          necessary licenses and approvals required from any Regulatory
          Authorities under the Indian Gaming Regulatory Act and other
          applicable law to participate in Indian gaming or in the alternative
          that no such findings or licenses are required; (cc) a legal opinion
          in form and substance reasonably acceptable to the Lakes Entities that
          such transfer is in compliance with all applicable federal, state and
          tribal laws, rules and regulations, including without limitation the
          Indian Gaming Regulatory Act, as amended (collectively, the
          "Applicable Laws"), and no additional approvals or consents of any
          federal, state or tribal governmental entity or third party is
          required with respect thereto under any Applicable Law or any other
          agreement between Kean and/or any of the Lakes Entities and the Tribe,
          if any, (dd) a written assignment and assumption agreement executed by
          Kean and the transferee in form and substance reasonably acceptable to
          Lakes whereby such transferee shall receive the rights of Kean under
          this Agreement and shall agree to be bound by the terms and provisions
          set forth herein; (ee) all sale proceeds payable on account of such
          transfer shall be paid to the Lakes Related Parties to be applied
          first towards the repayment of any amounts owing by Kean under this
          Agreement and secondly, to each of the other "Secured Obligations"
          owing to each "Secured Party" by Kean under the Security Agreement,
          and (ff) payment of all reasonable costs and expenses (including
          reasonable attorneys fees) of the Lakes Entities incurred in
          connection with completing such transfer. Lakes agrees to not
          unreasonably withhold consent to any permitted assignments by Kean.

     17.  ENTIRE AGREEMENT/RELEASE OF LAKES ENTERTAINMENT. This Agreement
          contains the entire understanding of the parties regarding its subject
          matter, and supercedes all prior negotiations, understandings and
          agreements of the parties and/or Lakes Entertainment, Inc. ("Lakes
          Entertainment") with respect thereto; and Kean acknowledges and agrees
          that all obligations of Lakes Entertainment and rights and claims of
          Kean under the Letter Agreement (as hereinafter defined) with respect
          to the Project and the Tribe are hereby terminated and released and
          are replaced by the terms and provisions set forth in this Agreement.
          The express terms of this Agreement shall control and supercede any
          course of performance and/or customary practice inconsistent with such
          terms. Any agreement between the parties hereunder made shall not
          change or modify this Agreement unless in writing and signed by the
          party against whom enforcement of such change or modification is
          sought. Any amendments to this Agreement must be in writing and signed
          by all parties.


                                        9

<PAGE>

     18.  SETOFF/RECOUPMENT RIGHTS. Subject to the limitations of Sections 5 and
          7 hereof and additional limitations set forth in the Security
          Agreement, the parties acknowledge and agree that each of the Lakes
          Related Parties (each of which shall be an intended third party
          beneficiary of this provision) shall have the right to setoff or
          recoup any amount owing to it by Kean (including without limitation,
          the Secured Obligations described in the Security Agreement) against
          any obligations owing by it to Kean under this Agreement or any other
          Loan Documents (as such term is defined in the Security Agreement.

     19.  NO JOINT AND SEVERAL LIABILITY. Except for the obligations of the
          Lakes Entities to make the Advance Payments to Kean as set forth in
          Section 5 hereof, the obligations of each of the Lakes Entities under
          this Agreement are several and not joint and several.

     20.  TIME OF THE ESSENCE. The parties acknowledge and agree that time is of
          the essence in connection with the performance of their respective
          obligations under this Agreement.

     21.  NOTICES. All notices, requests, consents and other communications
          required or permitted hereunder shall be in writing and shall be
          delivered, or mailed first class postage prepaid, registered or
          certified mail, addressed to a party at the address set forth in the
          introductory paragraph, or to such other address as a party may
          hereafter designate by written notice and may also be by facsimile at
          the following fax numbers or such other number as a as a party may
          hereafter designate by written notice:

          If to the Lakes Entities: 952-449-7064
                                    Attn: Timothy J. Cope
                                    Tcope@lakesentertainment.com

          If to the Kean:           702-734-9118
                                    Attn: Kevin M. Kean
                                    Kevin@keanco.net

     22.  COUNTERPARTS. This Agreement may be executed in any number of
          counterparts and by facsimile, each of which shall constitute one and
          the same agreement, and any of the parties hereto may execute this
          Agreement by signing such counterpart, provided that this Agreement
          shall not become effective until all parties have executed the same.

                            [Signature page follows]


                                       10

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement
on the date(s) set forth below.

LAKES IOWA CONSULTING, LLC.


By: /s/ Timothy J. Cope
    --------------------------------
    Timothy J. Cope, President      Date: June 14, 2005


LAKES IOWA MANAGEMENT, LLC.


By: /s/ Timothy J. Cope
    --------------------------------
    Timothy J. Cope, President      Date: June 14, 2005


    /s/ Kevin M. Kean
    --------------------------------
    Kevin M. Kean                   Date: June 2, 2005
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>84
<FILENAME>c92713exv21.txt
<DESCRIPTION>SUBSIDIARIES OF THE COMPANY
<TEXT>
<PAGE>
                                                                      EXHIBIT 21


                            LAKES ENTERTAINMENT, INC.
                              LIST OF SUBSIDIARIES



      1.   Grand Casinos Nevada I, Inc.
      2.   Mille Lacs Gaming, LLC
      3.   Grand Casinos of Louisiana, LLC -- Tunica-Biloxi
      4.   Grand Casinos of Louisiana, LLC -- Coushatta
      5.   Grand Casinos Pechanga, Inc.
      6.   Grand Casinos Washington, Inc.
      7.   Grand Media & Electronics Distributing, Inc.
      8.   Grand Casinos & Resorts of Canada, Inc.
      9.   Great Lakes Gaming of Michigan, LLC
     10.   Mille Lacs Gaming, LLP
     11.   Lakes Jamul, Inc.
     12.   Lakes Kean Argovitz Resorts -- California, LLC
     13.   Lakes Shingle Springs, Inc.
     14.   Lakes KAR -- Shingle Springs, LLC
     15.   Lakes Gaming & Resorts, LLC
     16.   RFC Acquisition Co.
     17.   Lakes Game Development, LLC
     18.   Lakes Nipmuc, LLC
     19.   Metroplex -- Lakes, LLC
     20.   Lakes California Land Development, Inc.
     21.   2022 Ranch, LLC
     22.   Lakes Cloverdale, LLC
     23.   Pacific Coast Gaming -- Santa Rosa, LLC
     24.   Borders Land Company, LLC
     25.   Lakes Poker Tour, LLC
     26.   WPT Enterprises, Inc.
     27.   Lakes Kickapoo Consulting, LLC
     28.   Lakes Kickapoo Management, LLC
     29.   Lakes Iowa Consulting, LLC
     30.   Lakes Iowa Management, LLC
     31.   Lakes Pawnee Consulting, LLC
     32.   Lakes Pawnee Management, LLC
     33.   Lakes Gaming Mississippi, LLC
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23
<SEQUENCE>85
<FILENAME>c92713exv23.txt
<DESCRIPTION>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
<TEXT>
<PAGE>


CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


We consent to the incorporation by reference in Registration Statement File Nos.
333-77247, 333-77249, 333-77591 on Form S-8 of our report dated November 30,
2005 relating to the financial statements of Lakes Entertainment, Inc. (which
report expresses an unqualified opinion and includes an explanatory paragraph
relating to the restatement of 2003 and 2002 consolidated financial statements
described in Note 2),and our report dated November 30, 2005 relating to
management's report on the effectiveness of internal control over financial
reporting (which report expresses an adverse opinion on management's assessment
of the effectiveness of the Company's internal control and an adverse opinion on
the effectiveness of the Company's internal control over financial reporting
because of a material weakness), appearing in the Annual Report on Form 10-K of
Lakes Entertainment, Inc. for the year ended January 2, 2005.



Minneapolis, Minnesota
November 30, 2005



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>86
<FILENAME>c92713exv31w1.htm
<DESCRIPTION>CERTIFICATION OF CEO UNDER SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="right" style="font-size: 10pt;">
<B>Exhibit&nbsp;31.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTIFICATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
I, Lyle Berman, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;I have reviewed this annual report on Form&nbsp;10-K of
Lakes Entertainment, Inc.;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;Based on my knowledge, the financial statements, and
other financial information included in this report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;The registrant&#146;s other certifying officer and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f)) for
the registrant and have:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    a)&nbsp;designed such disclosure controls and procedures or
    caused such disclosure controls and procedures to be designed
    under our supervision to ensure that material information
    relating to the registrant, including its consolidated
    subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is
    being prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    b)&nbsp;designed such internal control over financial reporting,
    or caused such internal control over financial reporting to be
    designed under our supervision, to provide reasonable assurance
    regarding the reliability of financial reporting and the
    preparation of financial statements for external purposes in
    accordance with generally accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    c)&nbsp;evaluated the effectiveness of the registrant&#146;s
    disclosure controls and procedures and presented in this report
    our conclusions about the effectiveness of the disclosure
    controls and procedures, as of the end of the period covered by
    this report based on such evaluation;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    d)&nbsp;disclosed in this report any change in the
    registrant&#146;s internal control of financial reporting that
    occurred during the registrant&#146;s fourth quarter that has
    materially affected, or is reasonably likely to materially
    affect, the registrant&#146;s internal control over financial
    reporting;&nbsp;and</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;The registrant&#146;s other certifying officers and I
have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant&#146;s
auditors and the audit committee of registrant&#146;s board of
directors (or persons performing the equivalent functions):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    a)&nbsp;all significant deficiencies and material weaknesses in
    the design or operation of internal control over financial
    reporting which are reasonably likely to adversely affect the
    registrant&#146;s ability to record, process, summarize and
    report financial information;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    b)&nbsp;any fraud, whether or not material, that involves
    management or other employees who have a significant role in the
    registrant&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ Lyle Berman</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Lyle Berman</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Chief Executive Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December 1, 2005
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>87
<FILENAME>c92713exv31w2.htm
<DESCRIPTION>CERTIFICATION OF CFO UNDER SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="right" style="font-size: 10pt;">
<B>Exhibit&nbsp;31.2</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTIFICATIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
I, Timothy J. Cope, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;I have reviewed this annual report on Form&nbsp;10-K of
Lakes Entertainment, Inc.;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statement made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;Based on my knowledge, the financial statements, and
other financial information included in this annual report,
fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;The registrant&#146;s other certifying officer and I are
responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules&nbsp;13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f)) for
the registrant and have:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    a)&nbsp;designed such disclosure controls and procedures, or
    caused such disclosure controls and procedures to be designed
    under our supervision, to ensure that material information
    relating to the registrant, including its consolidated
    subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is
    being prepared;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    b)&nbsp;designed such internal control over financial reporting,
    or caused such internal control over financial reporting to be
    designed under our supervision, to provide reasonable assurance
    regarding the reliability of financial reporting and the
    preparation of financial statements for external purposes in
    accordance with generally accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    c)&nbsp;evaluated the effectiveness of the registrant&#146;s
    disclosure controls and procedures and presented in this report
    our conclusions about the effectiveness of the disclosure
    controls and procedures as of the end of the period covered by
    this report based on such evaluation;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    d)&nbsp;disclosed in this report any change in the
    registrant&#146;s internal control of financial reporting that
    occurred during the registrant&#146;s fourth quarter that has
    materially affected, or is reasonably likely to materially
    affect, the registrant&#146;s internal control over financial
    reporting;&nbsp;and</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;The registrant&#146;s other certifying officers and I
have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant&#146;s
auditors and the audit committee of registrant&#146;s board of
directors (or persons performing the equivalent functions):
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    a)&nbsp;all significant deficiencies and material weaknesses in
    the design or operation of internal control over financial
    reporting which are reasonably likely to adversely affect the
    registrant&#146;s ability to record, process, summarize and
    report financial information;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    b)&nbsp;any fraud, whether or not material, that involves
    management or other employees who have a significant role in the
    registrant&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="2%"></TD>
    <TD width="58%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>By:&nbsp;</TD>
    <TD align="left">
    /s/ Timothy J. Cope</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 3pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Timothy J. Cope</TD>
</TR>

<TR valign="top"  style="font-size: 10pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    Chief Financial Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December 1, 2005
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>88
<FILENAME>c92713exv32w1.htm
<DESCRIPTION>CERTIFICATION OF CEO AND CFO UNDER SECTION 906
<TEXT>
<HTML>
<HEAD>
<TITLE>exv32w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV align="right" style="font-size: 10pt;">
<B>Exhibit&nbsp;32.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>CERTIFICATION PURSUANT TO</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>18&nbsp;U.S.C. &#167;1350,</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>AS ADOPTED PURSUANT TO</B>
</DIV>

<DIV align="center" style="font-size: 10pt;">
<B>SECTION&nbsp;906 OF THE SARBANES-OXLEY ACT OF 2002</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In connection with the Annual Report of Lakes Entertainment,
Inc. (the &#147;Company&#148;) on Form&nbsp;10-K for the period
ended January&nbsp;2, 2005 as filed with the Securities and
Exchange Commission on the date hereof (the
&#147;Report&#148;),&nbsp;I, Lyle Berman, Chief Executive
Officer of the Company, and Timothy J. Cope, Chief Financial
Officer of the Company, certify, pursuant to 18&nbsp;U.S.C.
&#167;1350, as adopted pursuant to Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002, that:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    1.&nbsp;The Report fully complies with the requirements of
    Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of
    1934;&nbsp;and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    2.&nbsp;The information contained in the Report fairly presents,
    in all material respects, the financial condition and results of
    operations of the Company.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    /s/ Lyle Berman</TD>
</TR>

<TR valign="top"  style="font-size: 3pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Lyle Berman</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Chief Executive Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December 1, 2005
</DIV>

<DIV style="margin-top: 24pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="40%"></TD>
    <TD width="60%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    /s/ Timothy J. Cope</TD>
</TR>

<TR valign="top"  style="font-size: 3pt;">
    <TD>&nbsp;</TD>
    <TD align="left">
    <DIV style="border-top: 1pt solid #000000; font-size: 1pt; margin-top: 2pt" align="left">&nbsp;</DIV></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Timothy J. Cope</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Chief Financial Officer</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
December 1, 2005
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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