(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
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 Pa