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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 3, 1997
INLAND CASINO CORPORATION
(Exact name of registrant as specified in its charter)
Utah 0-11532 33-0618806
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
4225 Executive Square, Suite 1650, La Jolla, California 92037
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (619) 546-9383
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On January 3, 1997, Inland Casino Corporation (the "Company")
entered into a settlement agreement (the "Settlement Agreement") with the
National Indian Gaming Commission (the "NIGC") concerning issues raised by the
operation of the Barona Casino under a gaming management agreement with the
Barona Band of Mission Indians (the "Barona Tribe") from February 1992 to March
27, 1996, and under a consulting agreement with the Barona Tribe from March 28,
1996, to the date of the Settlement Agreement.
Under the Settlement Agreement, the NIGC agreed not to conduct
any further inquiries or institute proceedings of any kind against the Company
or the Barona Tribe relating to the Company's acting as a manager or consultant
to the Barona Tribe prior to the date of the Settlement Agreement. In return,
the Company agreed to make payments to the NIGC in the aggregate amount of
$250,000 for administrative, investigative and legal expenses incurred by the
NIGC, and the Company also agreed to contribute $2 million to the Barona Tribe
in five equal annual installments, commencing within thirty business days of the
date of the Settlement Agreement. In addition, the Settlement Agreement
specifically states that (i) the NIGC has made no finding that the Company
violated any law, (ii) nothing in the Settlement Agreement shall be
construed as an admission of any wrongdoing by the Company or the Barona Tribe,
and (iii) the relationship between the Company and the Barona Tribe has
benefitted the interests of the Barona Tribe.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(C) EXHIBITS
99. Settlement Agreement dated January 3, 1997, by and between
the Company and the NIGC.
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SIGNATURES
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 hereunto duly authorized.
INLAND CASINO CORPORATION
Date: January 7, 1997 By:/s/ Duane M. Eberlein
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Duane M. Eberlein
Vice President, Chief Financial Officer
and Secretary
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EXHIBIT INDEX
<TABLE>
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EXHIBIT NUMBER DESCRIPTION
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<S> <C>
99 Settlement Agreement dated January 3, 1997, by
and between the Company and the NIGC.
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EXHIBIT 99
SETTLEMENT AGREEMENT
This Settlement Agreement (the "Agreement") is entered into and effective this
third day of January, 1997, by and between Inland Casino Corporation and the
National Indian Gaming Commission.
DEFINITIONS
1. The "Commission" shall mean the National Indian Gaming Commission.
2. "ICC" shall mean Inland Casino Corporation, a Utah Corporation.
3. "ICP" shall mean Inland Casino Partners.
4. "Inland" shall mean ICC, ICP and their present and former officers,
directors, partners, shareholders, and all predecessor corporations,
partnerships or entities.
5. The "Parties" shall mean ICC and the Commission.
6. The "Tribe" shall mean the Barona Band of Mission Indians.
RECITALS
Whereas, ICC is the successor to ICP;
Whereas, ICP and the Tribe executed a gaming management agreement (the
"Management Agreement") in February 1992 under which the Tribe's gaming
facility was operated;
Whereas, the Management Agreement remained in effect until March 27, 1996, when
ICC and the Tribe executed a mutual release of the Management Agreement and
executed a consulting agreement, which was reviewed by the Commission and
determined not to be a management agreement;
Whereas, the Commission and ICC desire to resolve issues raised by the
operation of the Tribe's casino under the Management Agreement from February
1992 to March 27, 1996, and under the consulting agreement from March 28, 1996
to the present; and
Whereas, the relationship between Inland and the Tribe has benefitted the
interests of the Tribe.
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Accordingly, the parties agree as follows:
1. Within five business days after execution of this Agreement, ICC shall
make a payment to the Commission in the amount of $75,000 for
administrative expenses.
2. Within thirty business days after execution of this Agreement, ICC shall
make a payment to the Commission in the amount of $85,000 for
investigative expenses.
3. Within thirty business days after execution of this Agreement, ICC shall
make a payment to the Commission in the amount of $90,000 for legal
expenses.
4. ICC agrees to cooperate fully with any routine monitoring of its
activities by the Commission consistent with regulatory oversight by the
Commission at other Indian gaming operations.
5. The Commission shall not conduct further inquiries or institute
proceedings of any kind against the Tribe or Inland which in any manner
arise out of, involve, or relate, directly or indirectly, to Inland's
acting in the capacity as manager or consultant to the Tribe prior to
the date of this Agreement. The Commission specifically agrees that it
will not institute proceedings of any kind against the Tribe or Inland
under Title 25 of the United States Code, or any regulations thereunder
relating, directly or indirectly, to Inland's acting as manager or
consultant to the Tribe prior to the date of this Agreement.
6. The Commission has not, and agrees that it shall not, take the position
or make any finding that Inland or its present or former officers and
directors is unsuitable to serve as a consultant or management
contractor to any Indian Tribe based, directly or indirectly, or in any
manner arising out of, involving, or relating to Inland's acting in the
capacity as manager or consultant to the Tribe prior to the date of this
Agreement.
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7. Nothing herein shall be construed as an admission of any wrongdoing by
the Tribe or Inland. The Commission has made no finding that Inland has
violated any law.
8. The Commission agrees that the amount of revenue received by Inland
under the Management Agreement did not exceed the standards in the
Indian Gaming Regulatory Act. The Commission further agrees that it will
not intervene in any private right of action brought by any third party
against ICC under the Indian Gaming Regulatory Act, any other provision
of Title 25 of the United States Code, or any other law, relating to any
acts or omissions on the part of Inland prior to the date of this
Agreement.
9. ICC as successor to ICP shall contribute $2 million to the Tribe to be
paid in five equal annual installments. The first installment in the
amount of $400,000 shall be paid to the Tribe within thirty business
days after the execution of this Agreement. Four annual consecutive
payments of $400,000 will be paid on or before the anniversary of the
date of the Agreement. The Tribe's written acknowledgement of receipt
shall be copied to the Commission.
10. Each person who signs this Agreement represents that he is authorized
to do so.
11. This writing constitutes the entire agreement of ICC and the Commission
with respect to the subject matter of this Agreement and may not be
modified, amended or terminated except by a written agreement signed by
the parties specifically referring to this Agreement. Upon execution,
this Agreement is intended to be and is final and binding upon the
parties.
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12. This Agreement may be executed in several counterparts, each of which
shall constitute an original and all of which, when taken together, shall
constitute one agreement.
NATIONAL INDIAN GAMING COMMISSION
Date: 1/3/97 By: /s/ Harold A. Monteau
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Harold A. Monteau, Chairman
INLAND CASINO CORPORATION
Date: 1/3/97 By: /s/ L. Donald Speer, II
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L. Donald Speer, II
Chairman and Chief Executive Officer
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