X0303 4 2009-09-22 0 0001071255 LAKES ENTERTAINMENT INC LACO 0001007772 GOLDFARB MORRIS C/O G-III APPAREL GROUP LTD. 512 SEVENTH AVENUE NEW YORK NY 10018 1 0 0 0 Stock Options 3.485 2009-09-22 4 D 0 60000 D 2011-07-17 Common Stock, $.01 par value 60000 0 D Stock Options 7.5361 2009-09-22 4 D 0 20000 D 2014-01-01 Common Stock, $.01 par value 20000 0 D Stock Options 16.8387 2009-09-22 4 D 0 10000 D 2015-02-15 Common Stock, $.01 par value 10000 0 D Stock Options 4.24 2009-09-22 4 D 0 5000 D 2018-03-13 Common Stock, $.01 par value 5000 0 D Stock Options 3.40 2009-09-22 4 A 0 31529 A 2019-09-22 Common Stock, $.01 par value 31529 31529 D Stock Options 3.40 2009-09-22 4 A 0 11740 A 2019-09-22 Common Stock, $.01 par value 11740 11740 D Stock Options 3.40 2009-09-22 4 A 0 5122 A 2019-09-22 Common Stock, $.01 par value 5122 5122 D Stock Options 3.40 2009-09-22 4 A 0 4667 A 2019-09-22 Common Stock, $.01 par value 4667 4667 D Pursuant to Rule 16b-3 (right to buy). Fully exercisable. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 60,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on July 17, 2001. In exchange, the reporting person received a replacement option, for 31,529 shares, having an exercise price of $3.40 a share. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 20,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on January 1, 2004. In exchange, the reporting person received a replacement option, for 11,740 shares, having an exercise price of $3.40 a share. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 10,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on February 15, 2005. In exchange, the reporting person received a replacement option, for 5,122 shares, having an exercise price of $3.40 a share. The option provided for vesting in equal installments of 1,250 shares each on 3/13/2009, 3/13/2010, 03/13/2011 and 3/13/2012. On September 22, 2009, the issuer canceled, pursuant to the issuer's option exchange program, an option for 5,000 shares of Lakes Entertainment, Inc. common stock granted to the reporting person on March 13, 2008. In exchange, the reporting person received a replacement option, for 4,667 shares, having an exercise price of $3.40 a share. The option vests in two equal annual installments beginning September 22, 2010. The option vests in three equal annual installments beginning September 22, 2010. The option vests in five equal annual installments beginning on September 22, 2010. /s/ Morris Goldfarb 2009-09-24