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<SEC-DOCUMENT>0000950137-07-004276.txt : 20070323
<SEC-HEADER>0000950137-07-004276.hdr.sgml : 20070323
<ACCEPTANCE-DATETIME>20070323161505
ACCESSION NUMBER:		0000950137-07-004276
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070320
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070323
DATE AS OF CHANGE:		20070323

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24993
		FILM NUMBER:		07715434

	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>8-K
<SEQUENCE>1
<FILENAME>c13557e8vk.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

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

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Date of Report (Date of earliest event reported): March&nbsp;20, 2007</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">Lakes Entertainment, Inc.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</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="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Minnesota
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0-24993
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">41-1913991</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center">130 Cheshire Lane, Minnetonka, Minnesota <BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">55305</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="center">(Address of principal executive offices)<BR></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">Registrant&#146;s telephone number, including area code: (952)&nbsp;449-9092<BR></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">Not Applicable<BR></TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">(Former name or former address, if changed since last report)<BR></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>


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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">








<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01. Entry into Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;9.01. Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="c13557exv10w1.htm">Second Amendment to Amended and Restated Memorandum of Agreement</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>






<!-- link2 "Item&nbsp;1.01. Entry into Material Definitive Agreement." -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01. Entry into Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Amendment to Gaming Development and Management Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March&nbsp;20, 2007, Lakes Entertainment, Inc. (&#147;<B>Lakes</B>&#148;) received notification that the National
Indian Gaming Commission (&#147;<B>NIGC</B>&#148;) approved the Second Amendment dated January&nbsp;23, 2007 to First
Amended and Restated Memorandum of Agreement Regarding Gaming Development and Management Agreement
between the Shingle Springs Band of Miwok Indians and Lakes KAR &#151; Shingle Springs, LLC.
(&#147;<B>Agreement</B>&#148;), making it effective as of March&nbsp;20, 2007. The Agreement increases the maximum
amount of the advances Lakes may make to the Shingle Springs Band of Miwok Indians (&#147;<B>Tribe</B>&#148;)
pursuant to the transition loan from $50&nbsp;million to $60&nbsp;million, and pursuant to the land
acquisition loan from $10&nbsp;million to $15&nbsp;million. The Agreement also increases the cap for the
facility loan (which equals the cost of construction and initial costs of operations) from $450
million to $550&nbsp;million. The Agreement does not require Lakes to increase its advances beyond its
current commitments to the Tribe. Instead, the Agreement is necessary to ensure that Lakes has
NIGC approval of all advances made to the Tribe that are within the maximum amounts permitted under
the Agreement, thereby ensuring repayment by the Tribe.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the Agreement is attached as an exhibit to this Current Report on Form 8-K as
Exhibit&nbsp;10.1.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link2 "Item&nbsp;9.01. Financial Statements and Exhibits." -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not Applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not Applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits
</DIV>

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

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Second Amendment dated January&nbsp;23, 2007 to First Amended and Restated Memorandum of
Agreement Regarding Gaming Development and Management Agreement between the Shingle
Springs Band of Miwok Indians and Lakes KAR &#151; Shingle Springs, LLC.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements 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>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><FONT style="font-variant: SMALL-CAPS">LAKES ENTERTAINMENT, INC.</FONT><BR>
(Registrant)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: March 23, 2007&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/Timothy J. Cope
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Timothy J. Cope&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>c13557exv10w1.htm
<DESCRIPTION>SECOND AMENDMENT TO AMENDED AND RESTATED MEMORANDUM OF AGREEMENT
<TEXT>
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<TITLE>exv10w1</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><U><B>Second Amendment </B></U><BR>
<U><B>dated January&nbsp;23, 2007</B></U><BR>
<U><B>to</B></U>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>FIRST AMENDED AND RESTATED<BR>
MEMORANDUM OF AGREEMENT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>REGARDING</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>GAMING DEVELOPMENT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>AND</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>MANAGEMENT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>AGREEMENT</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>between</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>SHINGLE SPRINGS BAND OF MIWOK INDIANS<BR>
a federally recognized tribe</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>and</B>
</DIV>


<DIV align="center" style="font-size: 14pt; margin-top: 18pt"><B>LAKES KAR-SHINGLE SPRINGS, LLC<BR>
a Delaware limited liability company</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Dated: October&nbsp;13, 2003</B>
</DIV>


<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
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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;THIS SECOND AMENDMENT (&#147;Second Amendment&#148;) to the October&nbsp;13, 2003 FIRST AMENDED AND RESTATED
MEMORANDUM OF AGREEMENT, as amended by the parties&#146; June&nbsp;16, 2004 Amendment, is made and entered
into this 23rd day of January, 2007 by and between the Shingle Springs Band of Miwok Indians, a
federally recognized Indian tribe (&#147;Tribe&#148;), located in the State of California with tribal offices
located at P.O. Box 1340, Shingle Springs, California 95682 and Lakes KAR-Shingle Springs, LLC, a
Delaware limited liability company (hereinafter referred to as &#147;LKAR&#148;), whose business office is
located at 130 Cheshire Lane, Minnetonka, MN 55305.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The Tribe is 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.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;In compliance with the Indian Gaming Regulatory Act of 1988 (&#147;IGRA&#148;), P.L. 100-497, 25
U.S.C. 2701 <U><I>et</I></U> <U><I>seq.</I></U> as it may from time to time be amended, the Tribal Council of
the Tribe has enacted a tribal ordinance regulating the operation of gaming activities on Tribal
Lands (hereinafter referred to as the &#147;Tribal Gaming Ordinance&#148;), creating the Shingle Springs
Tribal Gaming Commission, and authorizing Class&nbsp;II Gaming and Class&nbsp;III Gaming on its Indian lands
subject to the provisions of the Tribal Gaming Ordinance and a Tribal-State Compact.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;The Tribe is committed to the use of 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 Tribe&#146;s economic self-sufficiency and self-determination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;The Tribe presently lacks the resources to develop and operate a gaming facility and
enterprise on its own and desires to retain the services of a developer and manager with knowledge
and experience in the gaming industry to secure financing, develop, manage and operate a Class&nbsp;II
Gaming and Class&nbsp;III Gaming facility and related resort facilities located on its Indian lands in
accordance with the Indian Gaming Regulatory Act of 1988, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;To assist with the financing, development, management and operations of its planned gaming
facility (to be known as the &#147;Foothill Oaks Casino&#148;) and related ancillary facilities (the
&#147;Project&#148;), the Tribe and LKAR agreed to enter into their First Amended and Restated Memorandum of
Agreement Regarding Gaming Development and Management Agreement (&#147;Amended Memorandum Agreement&#148;)
and related Transaction Documents dated October&nbsp;13, 2003 in connection with the Project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;The October&nbsp;13, 2003 Amended Memorandum Agreement (and related exhibits and Transaction
Documents), as amended by the June&nbsp;16, 2004 Amendment between the Tribe and LKAR, was approved by
the Chairman of the National Indian Gaming Commission (&#147;NIGC&#148;) on July&nbsp;19, 2004.
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.&nbsp;Since signing the October&nbsp;13, 2003 Amended Memorandum Agreement, the Tribe has adopted
tribal Resolution 2004-18 and related Ordinance (hereinafter referred to as the &#147;Ordinance
2004-18&#148;) whereby the Tribe has established the Shingle Springs Tribal Gaming Authority
(&#147;Authority&#148;) and, subject to certain limitations, delegated to the Authority all governmental and
proprietary powers and rights of the Tribe over the development, construction, operation, promotion
and financing of the Project; and LKAR has consented to the delegation of the Tribe&#146;s governmental
and proprietary powers and rights to the Authority in connection with the Project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.&nbsp;Due to indefinite delays in the financing and construction of the Project arising from
litigation commenced by El Dorado County in connection with the dedicated interchange from US 50
providing direct access to the Shingle Springs Rancheria, the Tribe has amended its Ordinance
2004-18 to provide that its delegation to the Authority of certain governmental and proprietary
powers and rights of the Tribe over the development, construction, operation, promotion and
financing of the Project is suspended until such date that the Tribal Council activates the
Authority by formally appointing the Management Board of the Authority; until such time the Tribe
shall retain and reassume all of the Tribe&#146;s rights and responsibilities under the October&nbsp;13, 2003
Amended Memorandum Agreement (and related exhibits and Transaction Documents), as amended by the
June&nbsp;16, 2004 Amendment between the Tribe and LKAR.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;The Tribe and LKAR desire to further amend the October&nbsp;13, 2003 Amended Memorandum
Agreement (and related exhibits and Transaction Documents), as amended by the June&nbsp;16, 2004
Amendment, deemed necessary by changes in circumstances related to increased financing needs of the
Project and to provide for the implementation of Tribe&#146;s assignment described in Recital G above;
such modifications are incorporated herein and, accordingly, the Tribe and LKAR agree to enter into
this Second Amendment to the October&nbsp;13, 2003 First Amended and Restated Memorandum of Agreement
Regarding Gaming Development and Management Agreement, as amended by the June&nbsp;16, 2004 Amendment,
in connection with the Project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.&nbsp;This Second Amendment shall supersede and replace the agreement entitled Second Amendment
to the October&nbsp;13, 2003 First Amended and Restated Memorandum of Agreement Regarding Gaming
Development and Management Agreement dated July&nbsp;19, 2006 and shall become effective when approved
by the Chairman of the NIGC under IGRA.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.&nbsp;Any dispute regarding this Second Amendment between the parties is to be subject to the
dispute resolution and governing law provisions contained in the October&nbsp;13, 2003 Amended
Memorandum Agreement, as well as the Resolutions of Limited Waiver attached as Exhibit&nbsp;B, C and D
thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the above circumstances and 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 Tribe and LKAR agree as follows:
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</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;1.&nbsp;Section&nbsp;2.3(a)(i) of the October&nbsp;13, 2003 Amended Memorandum Agreement is amended to state
as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)(i) LKAR agrees to make the following pre-construction advances to the Tribe: (1)
two hundred fifty thousand dollars ($250,000) upon execution of the June&nbsp;11, 1999
Development and Management Agreements; (2)&nbsp;seventy thousand dollars ($70,000) each month
thereafter through March&nbsp;2005; (3)&nbsp;one hundred thousand dollars (100,000) each month
commencing April&nbsp;2005 through February&nbsp;2006; (4)&nbsp;one hundred twenty five thousand dollars
($125,000) each month thereafter until the earlier of either the Commencement Date or
through October&nbsp;2010; (5)&nbsp;a one time payment of three hundred thousand dollars ($300,000) to
be made on or before April&nbsp;29, 2005; (6)&nbsp;advances for costs incurred in connection with the
activities described in Section&nbsp;2.2; (7)&nbsp;advances for the establishment and operation of the
Tribal Gaming Commission pursuant to Section&nbsp;4.6.6 of the Management Agreement between the
Tribe and KARSS entered on June&nbsp;11, 1999; (8)&nbsp;expenses relating to the Tribe&#146;s CNIGA
activities, subject to the written approval of LKAR, which approval shall not be
unreasonably withheld; and (6)&nbsp;legal expenses incurred by the Tribe in connection with
eliminating obstacles to the implementation of this Amended Memorandum Agreement, subject to
the written approval of LKAR, which approval shall not be unreasonably withheld. The Tribe
and LKAR agree that all sums previously advanced to the Tribe by KARSS under the superseded
Development and Management Agreements, and by LKAR under the superseded May&nbsp;5, 2000
Memorandum of Agreement (excluding advances for acquisition of the Acquired Tribal Lands),
shall constitute advances by LKAR to the Tribe hereunder, be credited to LKAR&#146;s obligations
hereunder, and shall be subject to the terms of the Transition Loan herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Section&nbsp;2.3(b)(i) of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the
June&nbsp;16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)(i) The total amount of funds advanced to the Tribe directly from LKAR pursuant to
Section&nbsp;2.3(a)(i) shall equal the total amount of the Transition Loan. The total amount of
the Transition Loan shall be in an amount not exceeding sixty million dollars ($60,000,000).
The parties agree that as of January&nbsp;23, 2007, LKAR has advanced $42,701,880.52 to the
Tribe under the Transition Loan. The Transition Loan shall accrue interest at the prime
interest rate of Chase Manhattan Bank (or any successor bank by acquisition or merger) plus
two percent (2%), fixed from the date the funds are advanced to the Tribe. Principal and
interest due under the Transition Loan shall be paid as provided under Section&nbsp;2.3(c) below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Section&nbsp;2.3(b)(ii) of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the
June&nbsp;16, 2004 Amendment, is amended to state as follows:
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)(ii) The total amount of funds advanced to the Tribe by LKAR pursuant to Section
2.3(a)(ii) shall equal the total amount of the Land Acquisition Loan. The total amount of
the Land Acquisition Loan shall be in an amount not exceeding Fifteen Million dollars
($15,000,000). The parties agree that as of January&nbsp;23, 2007, LKAR has advanced
$8,772,252.03 to the Tribe under the Land Acquisition Loan. The Land Acquisition Loan shall
accrue interest at the prime interest rate of Chase Manhattan Bank (or any successor bank by
acquisition or merger) plus two percent (2%), fixed from the date the funds are advanced to
the Tribe in accordance with Section&nbsp;2.3(a)(ii) hereof. Principal and interest due under
the Land Acquisition Loan shall be paid as provided under Section&nbsp;2.3(c) below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Section&nbsp;2.5(c) of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the June
16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Costs of Construction and Initial Costs of Operation shall equal the total cost
of the Facility Loan. The total amount of the Facility Loan, or total advances if made
directly by LKAR, shall be in an amount up to but not exceeding five hundred fifty million
dollars ($550,000,000). Advances for Costs of Construction and Initial Costs of Operation,
if made directly by LKAR, shall accrue interest at the prime interest rate of Chase
Manhattan Bank (or any successor bank by acquisition or merger) plus two percent (2%), fixed
from the date the funds are advanced to the Tribe; with repayment of principal and interest
to be made in equal monthly installments over a term of seven (7)&nbsp;years commencing on the
thirtieth (30th) day after the Commencement Date, or five (5)&nbsp;years if the Tribe exercises
its right under Section&nbsp;3.19 of this Amended Memorandum Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Section&nbsp;2.11 of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the June
16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Limited Waiver of Sovereign Immunity</U>. By this Amended Memorandum Agreement,
the Tribe does not waive, limit, or modify its sovereign immunity from unconsented suit
except as provided in tribal Resolution 2003-12 dated October&nbsp;13, 2003 attached hereto as
<U>Exhibit&nbsp;B</U>, in tribal Resolution 2004-23 dated June&nbsp;16, 2004 attached hereto as
<U>Exhibit&nbsp;C</U>, and in tribal Resolution 2007-xx dated January xx, 2007 attached hereto
as <U>Exhibit&nbsp;D.</U> The Tribe understands that its agreement to adopt enforceable
resolutions of limited waiver is a material inducement to LKAR&#146;s execution of this Amended
Memorandum Agreement and is a condition precedent to any of the respective obligations of
the parties under this Amended Memorandum Agreement. The Tribe further agrees that it will
not amend or alter or in any way lessen the rights of the Lender or LKAR as set forth in the
resolutions of limited waiver, which are attached hereto as <U>Exhibit&nbsp;B</U>, <U>Exhibit
C</U>, and <U>Exhibit&nbsp;D</U>, each of which are incorporated here by reference.
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Section&nbsp;2.11 shall survive the termination of this Amended Memorandum Agreement,
regardless of the reason for the termination.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit&nbsp;D referenced above and attached to this Second Amendment shall constitute &#147;Exhibit&nbsp;D&#148; of
the Amended Memorandum Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Section&nbsp;10.10 of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the June
16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Sovereign Immunity</U>. Except as described in the resolutions of limited waiver
attached hereto as <U>Exhibit&nbsp;B</U>, <U>Exhibit&nbsp;C</U>, and <U>Exhibit&nbsp;D</U>, each of
which are incorporated herein by reference, nothing in this Amended Memorandum Agreement
shall be deemed or construed to constitute a waiver of sovereign immunity of the Tribe and
the only applicable waivers of sovereign immunity shall be those expressly provided and
executed by the Tribe&#146;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 attached hereto as <U>Exhibit&nbsp;B</U>, <U>Exhibit&nbsp;C</U> and
<U>Exhibit&nbsp;D</U>, in any way which will lessen the rights of any party as set forth in the
resolutions of limited waiver. This Section&nbsp;10.10 shall survive termination of this Amended
Memorandum Agreement, regardless of the reason for the termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Section&nbsp;11.3(b) of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the
June&nbsp;16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the dispute is not resolved to the satisfaction of the parties within thirty
(30)&nbsp;calendar days after the first meeting in Section&nbsp;11.3(a) above, then any claim,
controversy or dispute arising out of or relating to this Amended Memorandum Agreement,
Facility Note, Land Acquisition Note, the Interim Promissory Note, the Operating Note, or
any other Transaction Document, or any alleged default hereunder or breach of any provisions
thereof, shall be submitted to binding arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association in effect at the time of
submission; except that: (a)&nbsp;the question whether or not a dispute is arbitrable under this
Amended Memorandum Agreement or any other Transaction Document 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)&nbsp;discovery shall be permitted in accordance with the Federal Rules of Civil Procedure,
subject to supervision as to scope and appropriateness by the arbitrators. Judgment on any
arbitration award may be entered in any court having jurisdiction over the parties pursuant
to the resolutions of limited waiver attached hereto as <U>Exhibit&nbsp;B</U>, <U>Exhibit
C</U>, and <U>Exhibit&nbsp;D</U>, each of which are incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</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;8.&nbsp;Section&nbsp;11.3(f) of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the
June&nbsp;16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) 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&nbsp;5 of the resolutions of
limited waiver attached hereto as <U>Exhibit&nbsp;B</U>, <U>Exhibit&nbsp;C</U>, and <U>Exhibit
D</U>, each of which are incorporated herein by reference; provided however, that although
the arbitrators may award damages in the event the Tribe or the Tribal Gaming Commission do
not comply with the award, the arbitrators may not require the Tribe or the Tribal 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&#146; rights, liabilities or obligations under this Amended Memorandum Agreement,
the Facility Note, the Land Acquisition Note, the Interim Promissory Note, the Operating
Note, or any other Transaction Document (&#147;Specific Performance Restriction&#148;). Provided
further, that: (a)&nbsp;should the arbitrators determine that there has been an intentional bad
faith violation of a party&#146;s rights under this Amended Memorandum Agreement or any other
Transaction Document by the Tribe or Tribal Gaming Commission, and if the Tribe or the
Tribal Gaming Commission do not reverse such intentional bad faith violation through
governmental legislative decision or action within thirty (30)&nbsp;days after being notified by
the arbitrators of such determination, then the arbitrators shall award one-and-half (1<FONT style="font-size: 70%"><SUP>1</SUP></FONT>/<FONT style="font-size: 60%">2</FONT> )
times damages to LKAR, or other claimant, as applicable, for damages suffered as a
consequence of the Tribe&#146;s or Tribal Gaming Commission&#146;s intentional bad faith violation;
and (b)&nbsp;such Specific Performance Restriction shall not prevent LKAR, or other claimant, as
applicable, from enforcing the Facility Note, the Land Acquisition Note, the Interim
Promissory Note, the Operating Note, the Security Agreement, the Dominion Account Agreement,
or the liens and security interests granted thereunder, nor from realizing on collateral
encumbered thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The List of Exhibits page of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended
by the June&nbsp;16, 2004 Amendment, is amended to state as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LIST OF EXHIBITS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit&nbsp;A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Description of Gaming Site
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit&nbsp;B&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Resolution 2003-12 concerning Limited Waiver of Immunity from Suit
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit&nbsp;C&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Resolution 2004-23 concerning Limited Waiver of Immunity from Suit
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</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;Exhibit&nbsp;D&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Resolution 2007-xx concerning Limited Waiver of Immunity from Suit
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;Section&nbsp;10.14 of the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the June
16, 2004 Amendment, is amended to state as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>. This Amended Memorandum Agreement (including all its exhibits
and related Transaction Documents, along with tribal Resolution 2004-18 approving the
establishment of the Foothills Oaks Tribal Gaming Authority and its related Ordinance, the
June&nbsp;16, 2004 Amendment to the October&nbsp;13, 2003 Amended Memorandum Agreement, the June&nbsp;16,
2004 Consent Agreement entered into by the parties, tribal Resolution 2004-23 concerning the
June&nbsp;16, 2004 Amendment and Consent Agreement), the July&nbsp;19, 2006 Second Amendment to the
October&nbsp;13, 2003 Amended Memorandum Agreement, and tribal Resolution 2007-xx concerning the
January&nbsp;23, 2007 Second Amendment, represents the entire agreement between the parties and
supersedes all prior agreements relating to the subject matter of Class&nbsp;II Gaming and Class
III Gaming to be developed and conducted by the Tribe at the Facility and operations of the
Enterprise. The parties hereto intend that this Amended Memorandum Agreement (and related
Transaction Documents) is to supersede and replace the May&nbsp;5, 2000 Memorandum of Agreement
and any other prior agreements between the parties in connection with the Project.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;The Tribe and LKAR agree and consent that upon the date the Authority is activated by the
Tribal Council formally appointing the Management Board of the Authority, and the Tribe and
Authority have completed each of the additional requirements set forth below, all governmental and
proprietary powers and rights of the Tribe over the development, construction, operation, promotion
and financing of the Foothill Oaks Casino and the Enterprise, as described in Section&nbsp;1 of
Ordinance 2004-18, shall be solely assumed by and be the delegated responsibility of the Authority:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(a)&nbsp;The Tribe and LKAR shall execute and deliver the &#147;Tribal Agreement&#148; (in the form
attached hereto as <U>Exhibit&nbsp;1</U>) whereby the Tribe reaffirms the assignment to the
Authority of its rights and responsibilities under the October&nbsp;13, 2003 Amended Memorandum
Agreement (and related exhibits and Transaction Documents), as amended by the June&nbsp;16, 2004
Amendment between the Tribe and LKAR and this Second Amendment, and agrees to undertake
certain rights and obligations in connection with the development, construction, operation,
promotion and financing of the Foothill Oaks Casino and the Enterprise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(b)&nbsp;LKAR, the Tribe and the Authority shall execute and deliver the &#147;Third Amendment&#148; to the
October&nbsp;13, 2003 Amended Memorandum Agreement (in the form attached hereto as <U>Exhibit
2</U> and hereinafter referred to as &#147;Third Amendment&#148;), reflecting the assumption
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">
by the
Authority of all governmental and proprietary powers and rights of the Tribe over the
development, construction, operation, promotion and financing of the Foothill Oaks Casino
and the Enterprise as described in Section&nbsp;1 of Ordinance 2004-18, and the Tribe shall cause
the Authority also to duly approve the execution, delivery and performance of the Third
Amendment and a related resolution of limited waiver (in the form
attached hereto as <U>Exhibit&nbsp;3</U>) in connection therewith and deliver a duly certified copy of
such resolution to LKAR.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(c)&nbsp;The Tribe and LKAR agree that, following execution of the Third Amendment and Tribal
Agreement, these documents shall be submitted to the NIGC for approval under applicable
Legal Requirements, and the Tribe agrees to cause the Authority to cooperate with such
submission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">(d)&nbsp;The Authority has provided LKAR with written confirmation that the NIGC has approved and
executed the Third Amendment and no Material Breach by the Tribe under the Transaction
Documents shall have occurred and be continuing as of the effective date of the Third
Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;Section&nbsp;1 of the Non-Gaming Lands Transfer Agreement dated October&nbsp;3, 2003, and Section&nbsp;1
of the Access Land Transfer Agreement dated October&nbsp;3, 2003, are each hereby amended by replacing
&#147;ten million dollars ($10,000,000)&#148; with &#147;fifteen million dollars ($15,000,000).&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;The Tribe and LKAR agree that any dispute in connection with this Second Amendment shall
be subject to the dispute resolution procedures and limited waiver of sovereign immunity contained
in the October&nbsp;13, 2003 Amended Memorandum Agreement and the Resolution of Limited Waiver attached
thereto as <U>Exhibit&nbsp;B</U>, the terms of which are incorporated by reference herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;The Tribe and LKAR agree that capitalized terms used herein and not defined shall have the
meanings given them in the October&nbsp;13, 2003 Amended Memorandum Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;The Tribe and LKAR agree that this Second Amendment shall be construed in accordance with
and governed by the internal laws and decisions of the State of California, without giving effect
to its choice of law principles; and may be executed in any number of counterparts and by
facsimile, each of which shall be considered an original but together shall constitute one and the
same instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;The Tribe and LKAR agree that no modification, amendment or change to this Amendment shall
be valid unless the same is in writing and signed by the party against which the enforcement of
such modification, amendment or change is sought, and is approved by the Chairman of the NIGC.
</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</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;17.&nbsp;The Tribe and LKAR agree that this Second Amendment shall supersede and replace the
agreement entitled Second Amendment to the October&nbsp;13, 2003 First Amended and Restated Memorandum
of Agreement Regarding Gaming Development and Management Agreement dated July&nbsp;19, 2006, and, except
as amended above, all other provisions of the October&nbsp;13, 2003 Amended Memorandum Agreement, as
amended by the June&nbsp;16, 2004
Amendment, shall remain in full force and effect as originally stated and are equally
applicable hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have as of January&nbsp;23, 2007 executed this Second
Amendment to the October&nbsp;13, 2003 Amended Memorandum Agreement, as amended by the June&nbsp;16, 2004
Amendment, between the parties.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" nowrap valign="top">Shingle Springs Band
of Miwok Indians</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
Lakes KAR-Shingle Springs, LLC</TD>
</TR>
<TR valign="bottom" style="padding-top: 1em">
    <TD align="left" nowrap valign="top">By: /s/ Nicholas H. Fonseca
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Its: Tribal Chairman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
By: /s/ Timothy J. Cope
<DIV style="font-size: 1pt; border-bottom: 1px solid #000000">&nbsp;</DIV>
Its: President/CFO</TD>
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    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
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    <TD colspan="2" align="left">Its:&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Approved pursuant to 25 U.S.C. &#167;2711
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">National Indian Gaming Commission
</DIV>


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</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Philip N. Hogen
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Print Philip N. Hogen&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Its Chairman&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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    <TD colspan="5">&nbsp;</TD>
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<DIV align="left" style="font-size: 7pt; margin-top: 6pt">Second Amendment to<BR>
October&nbsp;13, 2003 Amended Memorandum Agreement

</DIV>

<DIV align="left" style="font-size: 7pt; margin-top: 6pt">01/23/07 execution version

</DIV>

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<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
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