(f) the amount of civil fines that the alleged violator must pay pursuant to
Section 19, below.

SECTION 18 - VIOLATION PENALTIES
§18-1 In issuing a notice of violation under Section 17 of this Law, the SGA may:

(a) impose a civil fine not to exceed Five Hundred ($500) Dollars for each
violation and, if such violation is a continuing one, for each day, that the violation occurs;
and/or

(b) impose a penalty of One Hundred ($100) Dollars per day for failure to
submit to the Commission any report required under this Law when it is due, and One
Thousand ($1,000) Dollars per day for failure to file any such report after three-day
notice and demand.

§18-2 How assessments are made.

The SGA shall review each notice of violation to determine whether a civil fine
will be assessed, the amount of the fine, and in the case of a continuing violation, whether
such daily violation will be deemed a separate violation for purposes of the total civil fine
assessed.

§18-3 Procedure for assessment of a civil fine:

(a) within five (5) calendar days after service of a notice of violation, the
alleged violator shall submit written information about the violation and any corrective
measures undertaken to the SGA. The SGA shall consider any information so submitted
in determining the facts surrounding the violation and the amount of the civil fine;

(b) the SGA shall serve a copy of the proposed assessment on the alleged
violator within ten (10) calendar days after the notice of violation was issued, when
practicable; and

(c) the SGA may review and reassess any civil fine if necessary to consider
facts that were not reasonably available on the date of issuance of the proposed
assessment.

§18-4 Final assessment:

(a) if the alleged violator fails to request a hearing as provided in Section 20
of this Law, the proposed civil fine assessment shall become a final order of the SGA.

(b) civil fines assessed under this Section shall be paid by the person assessed
and shall not be treated as an operating expense of the gaming operation; and

(c) the SGA shall transfer civil fines paid under this Law to a SGA account.

17


(18) any other information the SGA deems relevant.

§8-5 Each applicant for a gaming license who has or will have a contract with the
Nation to manage a Nation Gaming Operation shall state whether or not he/she already has a
management contract to operate any Indian or non-Indian gaming operation and, if so, a
description of the location of each such operation.

§8-6 A management contractor’s application shall include information required by 25
U.S.C. § 2710(d) and 25 C.F.R. § 537.1.

§8-7 Existing employee shall be notified in writing that they shall either:

(a) complete a new application form that contains the Privacy Act notice
described in Section 8-4(b) above; or

(b) sign a statement that contains the Privacy Act notice described in Section
8-4 (b) above and consent to the routine uses described in that notice.

§8-8 When a Class III Gaming Key Employee or Class III Gaming Primary
Management Official begins work at a gaming operation the SGA shall forward a copy of the
person’s completed application for a gaming license to the NIGC.

SECTION 9 - QUALIFICATIONS FOR GAMING LICENSES

§9-1 The SGA may issue or renew a gaming license to an applicant who submits a
proper and completed application and pays the appropriate annual license fee consistent with the
Compact and its Appendices.

§9-2 Subject to the requirement of payment of annual license fees and the requirements
contained in the Compact and its Appendices, each gaming license shall be valid for two (2)
years from the date of issuance, provided that, in the discretion of the SGA, a gaming license
may be granted for a term to run concurrently with the term of a management contract.

§9-3. A gaming license may not be assigned or transferred and is valid only for use by
the person in whose name it is issued and at the Nation Gaming Operation for which it is issued.
A gaming license shall be conspicuously displayed at all times at the Nation Gaming Operation
for which issued.

§9-4 Final decisions as to whether a gaming license shall be issued, suspended, or
revoked shall be made in accordance with Appendices C, D, and E.

SECTION 10 - GAMING LICENSE FEES

§10-1 The annual fee for each gaming license issued pursuant to this Law shall be set by
regulations promulgated by the SGA. In setting the license fee the SGA shall take into
consideration the following items:

(1) cost of the background investigation;

11


(b) “Appendix” shall mean an appendix to the Compact. “Appendices” shall
mean more than one Appendix.

(c) “Applicant” shall mean any person who completes an application with the
Nation for a gaming license.

(d) “Chairman” shall mean the Chairman of the National Indian Gaming
Commission or his or her designee.

(e) “Cheating” shall mean operating or playing in a game in a manner in
violation of the written or commonly understood rules of the game, with the intent to
create for himself/herself or someone in privity with him/her an advantage over and
above the chance of the game.

(f) “Class [II Gaming” shall have the meaning found in 25 U.S.C. § 2703(8).

(g) “Class II] Gaming Key Employee” shall mean those employees designated
in the gaming operations pursuant to 25 C.F.R. § 502.14, and as defined in Section 1(f) of
the Compact.

(h) = “Class III Gaming Primary Management Official” shall mean those
employees designated in the gaming operations pursuant to 25 C.F.R. § 502.19.

(i “Class II] Gaming Service Enterprise” means an entity or individual, other
than a Class II] Gaming Employee, that provides Class III Gaming services, Class III
Gaming supplies or Class III Gaming equipment to a Nation Gaming Operation.

Gj) “Collateral agreement” shall mean any contract, whether or not in writing,
that is related, either directly or indirectly, to a management contract, or to any rights,
duties, or obligations created between the Nation (or any of its members, entities, or
organizations) and a management contractor or subcontractor (or any person or entity
related to a management contractor or subcontractor).

(k) “Council” shall mean the Tribal Council as described in Section I of the
Constitution of the Seneca Nation of Indians.

(0) “Gaming Establishment” shall mean any location or structure, wherein
gaming is licensed, promoted, performed, conducted, or operated.

(m) “Gaming License” shall mean the permit granted by the Nation to an
applicant for employment with a gaming operation.

(n) “Gross gaming revenues” shall mean the total amount of money wagered
less amounts paid out to winners or for prizes.

(0) “Tn privity with” shall mean one who acts jointly with another or as an
accessory before the fact to an act committed by the other or as a co-conspirator with the
other.


SECTION 19 - ENFORCEMENT

§19-1 The SGA shall take any one or a combination of the following actions with
respect to any person who violates any provision of this Law:

(a) suspend or revoke any gaming license issued by the SGA; or

(b) _ bring an action in a court of competent jurisdiction for imposition of one
or more of the following sanctions:

qd) seizure of any gaming apparatus, proceeds, or other property of a
licensee connected with the gaming activities engaged in by the licensee;

(2) collection of any unpaid fees, interest, penalties, and of any civil
fines unpaid after thirty (30) calendar days; or

(3) execution on any nonexempt property of a violator located within
the exterior boundaries of Nation lands.

§19-2 Civil actions may be brought by the SGA pursuant to this Law in any Court of
competent jurisdiction to enforce the imposition of any and all sanctions provided for under this
Law.

§19-3 Before taking any action authorized in §17 and §18 of this Law, the SGA shall use
its best efforts to notify the alleged violator, in person or by letter delivered to his/her last known
address, of the charges against him/her, and allow the alleged violator an opportunity for a
prompt hearing. If the alleged violator fails to respond, or cannot be found, the SGA may
proceed with a hearing notwithstanding, and take such action as it deems appropriate. Said
notice of the alleged violation shall be served at least three (3) business days prior to the hearing.

§19-4 Every person who applies for a gaming license and accepts such license thereby
acknowledges the civil enforcement jurisdiction and authority of the SGA under this Law to
order an execution on his/her nonexempt property, the suspension or termination of his/her
further conduct of gaming activities and the seizure of his/her gaming equipment or proceeds or
other property, upon a proper finding of the SGA or the court that the person has violated a
provision of this Law, despite lack of actual notice, provided that the SGA has used its best
efforts to notify the person, in person or by letter delivered to his/her last known address.
SECTION 20 - HEARINGS AND APPEALS

§20-1 This Section provides procedures for appeals to the SGA regarding:

(a) violation; and

(b) civil fines assessed by the Commission in this Law; and

(c) the denial or revocation of gaming licenses;

18


SECTION 24 - SEVERABILITY PROVISION

§24-1 If any provision of this Law or the application thereof to any person or
circumstance is held invalid, the invalidity shall not affect other provisions or applications of
Law which can be given effect without the invalid provisions or application, and, to this end, the
provisions of this Law are severable.

SECTION 25 - EFFECTIVE DATE/REPEAL

§25-1 This Law shall be effective immediately upon approval by the Chairman of the
NIGC.

SECTION 26 - MANAGEMENT CONTRACTOR/CONTRACT PROVISIONS

§26-1 Any or all references or procedures applicable to management contractors or
contracts becomes effective upon adoption by Council of any management contract.

SECTION 27 - MINIMUM INTERNAL CONTROL STANDARDS

§27-1 The Nation acknowledges its obligation to adopt and implement Minimum
Internal Control Standards (MICS) for the operation of its gaming operation no less stringent
than those found in the regulations of the NIGC at 25 C.F.R. Part 542. The Nation’s MICS shall
be set out in separate regulations to be promulgated by the SGA.

SECTION 28 - PROHIBITION AGAINST INDIVIDUALLY OWNED CLASS III
GAMING

§28-1 No license shall be issued by the SGA for individually owned Class III Gaming
operations.
SECTION 29 - CONFLICT OF LAWS

§29-1 Where this Law conflicts with the Compact and its Appendices, the Compact and
the Appendices shall prevail provided that they are no less stringent than the Act, NIGC
regulations and this Law.

20


(b) Audit Standards. The Nation shall engage an independent certified public
accountant, licensed in New York to provide an annual audit of the financial statements of
each gaming operation on Nation lands. Such financial statements shall be prepared in
accordance with generally accepted accounting principles and the audit(s) shall be
conducted in accordance with generally accepted auditing standards. Audit(s) of the
gaming operation required under this Section may be conducted in conjunction with any
other independent audit of the Nation, provided that the requirements set forth in NIGC
regulations are met.

(c) Copies of Audit Reports. The Nation shall submit to the SGA and the
NIGC a copy of the audit report(s) and management letter(s) setting forth the results of
each annual audit within one hundred twenty (120) days after the end of each fiscal year
of the gaming operation(s) resulting from the audit(s) conducted pursuant to Subsection
(a) above.

(d) Relationship of Audited Financial Statements to Fee Assessment Reports.
The Nation shall reconcile its quarterly fee assessment reports, submitted under 25 C.F.R.
Part 514, with its audited financial statements and make available such reconciliation
upon request by the NIGC’s authorized representative.

§14-2 All gaming related contracts that result in purchases of supplies, services, or
concessions for more than Twenty Five Thousand ($25,000) Dollars in any year (except contracts
for professional legal or accounting services) shall be specifically included within the scope of
the audit conducted pursuant to this Section.

SECTION 15 - GROSS GAMING REVENUES

§15-1 The gross gaming revenues derived from gaming operations are Nation funds and
are to be expended as authorized by the Nation.

SECTION 16 - VIOLATIONS

§16-1 No person shall operate or conduct any gaming activity in a gaming operation
within the exterior boundaries of Nation lands without a gaming license issued by the SGA as
required by this Law or the Compact and its Appendices

§16-2 No person shall knowingly submit false or misleading information to the NIGC,
the Nation or the SGA in response to any provision of the Act, NIGC regulations, or a Nation
Law or resolution that the Chairman has approved under parts 522 or 523 in Title 25 C_F.R.

§16-3 (a) No management contractor shall fail to account fully for all moneys
received or collected in connection with gaming activities or to file any report required by the
management contract.

(b) A gaming operation shall allow an authorized representative of the NIGC
or an authorized SGA official to enter or inspect a gaming operation pursuant to 25
C.F.R. §§ 571.5 or 571.6, or of Nation Law or resolution approved by the Chairman
under parts 522 or 523 in Title 25 C.F.R.

15


§5-7 The following persons are not eligible to serve on the SGA: Nation Council
members, while serving as such; employees of the Nation Gaming Operation, while serving as
such; gaming contractors (including any principal of a management or other contracting
company); persons directly related to any of the above; persons ineligible to be employees;
persons convicted of a felony of embezzlement, of theft, or of any other money-related crime or
honesty-related crime (such as fraud). The Nation Council shall require a criminal history check
with appropriate law enforcement agencies and shall review this criminal history report and
make an appropriate suitability determination before appointing an individual to a position on the
SGA.

§5-8 The independence of the SGA is essential to a well-regulated gaming operation.
For that reason, SGA commissioners may only be removed from office by the Nation Council
prior to the expiration of their respective terms for neglect of duty, misconduct, malfeasance, or
other acts that would render a member of the SGA unqualified for his/her position. Any
allegations of neglect of duty, misconduct, malfeasance, or other acts that would render him or
her unqualified for his/her position must be substantiated by a preponderance of the evidence.
SGA commissioners will be given an opportunity to provide evidence rebutting the grounds for
their proposed removal before the removal is considered. A vote of the Nation Council on the
validity of the removal shall be final and not subject to further appeal. A wrongful removal shall
entitle the affected SGA commissioner to compensation for expenses incurred in an appeal and
any pay withheld.

§5-9 A vote of at least 3 members of the SGA shall constitute a valid vote (quorum) by
the SGA.

§5-10 SGA commissioners shall be compensated at a level determined by the Nation
Council. This compensation shall be included in the Nation Gaming Operation’s annual
estimated budget, and shall be approved by the Nation Council.

SECTION 6 - GAMES AUTHORIZED

§6-1 The Nation shall have the sole proprietary interest in and responsibility for the
conduct of any gaming operation.

§6-2 The Nation shall conduct only those Class III games specifically listed in
Appendix A of the Compact, in accordance with the specifications set forth in Appendices A and
B.

SECTION 7 - GAMING LICENSES REQUIRED
§7-1 A separate gaming license is required for:
(a) each person having a management contract;
(b) each Class III Gaming Key Employee, Class III Gaming Primary

Management Official, Class III Gaming Employee, and Non-Class III Gaming Employee
of the Nation’s Gaming Operation (collectively referred to as “employees”);


(a) The SGA is recognized as a governmental arm of the Nation and shall
perform an essential governmental function which is hereby designated to the SGA by the
Nation Council. Commissioners and employees of the SGA shall be recognized as
performing said essential governmental functions on behalf of the Nation.

(b) The SGA shall be comprised of five (5) commissioners to be selected by
the Council.

(c) A vote of at least three commissioners shall constitute a valid vote
(quorum) by the SGA.

(d) The commissioners shall have a staggered term of employment with three
(3) of the commissioners having an initial term of four (4) years and two (2) of the
commissioners having a term of two (2) years. Compensation for the commissioners
shall be established by the Council. Removal of a commissioner shall be for cause which
shall be defined by resolution of the Council.

(e) The commissioners shall have the experience in the gaming industry and
the education that will enable them to immediately regulate the Nation’s gaming
enterprises.

(f) The funds for the operation of the SGA shall be appropriated from the
general fund of the Nation.

(g) | The SGA shall be the exclusive regulatory body for the Nation’s Gaming
Operations and shall have unrestricted access to all aspects of the Nation’s Gaming
Operations.

§5-2. The SGA shall have responsibility for the on-site regulation of Class I{I Gaming
undertaken by the Nation pursuant to the Compact. The purpose of the SGA is regulatory, not
managerial. The SGA will conduct oversight to ensure compliance with the Nation laws, the
Compact and its Appendices, the Act, NIGC regulations, and, if applicable, State laws and
regulations. The SGA will serve as the licensing authority for individuals employed in the
gaming operation and will administer an effective program for background investigations as part
of the licensing process, consistent with the Compact and its Appendices. The SGA will also
have a role in monitoring compliance with the internal control standards for the gaming
operation and in tracking revenues. In order to carry out its regulatory duties, the SGA shall
have unrestricted access to all areas of the gaming operation and to all records. The SGA shall
have clear authority to take enforcement actions, including suspension or revocation of an
individual gaming license, when appropriate.

§5-3 The Nation recognizes the importance of an independent SGA in maintaining a
well-regulated gaming operation. The SGA shall be and act independently and autonomously
from the Nation Council in all matters within its purview. No prior or subsequent review by the
Nation Council of any actions of the SGA shall be required or permitted except as otherwise
explicitly provided in this Law. To avoid potential conflicts of interest between the operation
and regulation of the gaming facility, the Nation hereby finds that, at a minimum:


(p) “Management contract” shall mean any contract, subcontract, or collateral
agreement between the Nation and a contractor or between a contractor and a
subcontractor if such contract or agreement provides for the management of all or part of
a gaming operation.

(q) “Management contractor” shall mean the person or entity holding a
contract entered into pursuant to 25 U.S.C. § 2711.

(r) “Minor” shall mean a person less than eighteen (18) years of age.

(s) “Nation” means the Seneca Nation of Indians.

(t) “Nation Gaming Operation” shall mean the enterprise, business or entity

operated or authorized by the Nation to operate or conduct any form of Class III gaming
on Nation lands pursuant to the Compact; provided, however, that the Compact shall
apply to operations of such enterprise, business or activity only to the extent that such
operations are directly related to Class III Gaming undertaken by the Nation pursuant to
the Compact.

(u) “Nation lands” shall have the meaning found in 25 U.S.C. § 2703(4).
(v) “Net revenues” shall have the meaning as set forth in 25 C-F.R. § 502.16.

(w) | “NIGC” shall mean the National Indian Gaming Commission established
pursuant to the Act.

(x) “Person” shall mean any individual, firm, partnership, corporation,
company, or association.

(y) “Person having management responsibility for a management contract”
shall mean the person designated in the management contract as having management
responsibility for the gaining operation, or a portion thereof.

(z) “Secretary” means the Secretary of the Interior.

(aa) “Seneca Gaming Authority” or “SGA” shall mean the entity established
by the Nation responsible for regulating Class III Gaming undertaken by the Nation
pursuant to the Compact.

(bb) “State Gaming Officials” or “SGO” means the officials designated by the
State to fulfill the State’s responsibility to ensure Nation Gaming Operation and SGA.
compliance with the terms of the Compact.

SECTION 5 - SENECA GAMING AUTHORITY

§5-1 The Council of the Nation establishes the Seneca Gaming Authority (SGA) for the

purpose of regulating Class III gaming conducted on Nation lands.


§16-4 No person under the age of eighteen (18) years shall be employed by a gaming
operation or shall otherwise be permitted to participate in any gaming activities.

§16-5 No person shall engage in cheating (as that term is defined in §4-1(e) of this Law)
in any gaming activity or engage in any fraudulent conduct affecting either the Nation or a
customer of a gaming operation.

§16-6 No person, including security department personnel, shall possess, or be permitted
to possess any firearm within any Gaming Facility without the prior express written consent of
both the Nation Law Enforcement Agency and the State, except for duly authorized personnel of
each. The SGA shall post in a conspicuous location at every entrance to each Gaming Facility, a
sign stating: “No person shall possess any firearm within this Gaming Facility.”

§16-7 Any person who is in privity with a person who violates this Law shall be deemed
to be in violation of this Law to the same extent as the violator, and shall be treated accordingly.

§16-8 No person, whether playing in or conducting any gaming activity authorized
under this Law, shall:

(a) use bogus or counterfeit cards, or substitute or use any game cards that
have been tampered with;

(b) employ or have on one’s person any cheating device to facilitate cheating
in any gaming activity; or

(c) knowingly cause, aid, abet, or conspire with another person or cause any
person to violate any provision of this Law or any rule adopted under this Law.

§16-9 The Nation shall construct, maintain and operate a gaming facility in a
manner that adequately protects the environment and the public health and safety.

SECTION 17 - NOTICE OF VIOLATION

§17-1_ The SGA may issue a notice of violation to any person for violation of any
provision of this Law.

§17-2 A notice of violation shall contain:
(a) a citation to the Law provision that has been or is being violated;

(b) a description of the circumstances surrounding the violation, set forth in
common and concise language;

(c) measures required to correct the violation;

(d) — astatement that the violation must be corrected within five (5) calendar
days from the date the notice was issued;

(e) a statement of the alleged violator’s rights of appeal; and

16


(1) ensure compliance with the Compact and its Appendices, and all Nation,
State, and Federal laws, rules and regulations regarding Indian gaming;

(m) __ investigate any suspicion of wrongdoing associated with any gaming
activities;

(n) comply with any and all reporting requirements under Nation law, the Act,
the Compact and its Appendices, NIGC regulations, and any other applicable law;

(0) promulgate and issue rules and regulations regarding the conduct of Class
III gaming, including compliance with the Compact and its Appendices, Nation law, the
Act, and NIGC regulations.

(p) promulgate and issue regulations on the levying of any fees and/or taxes
associated with gaming license applications;

(q) promulgate and issue regulations on the levying of fines and/or suspension
or revocation of gaming licenses for violations of this Law, the Compact and its
Appendices, or any other Tribal, State, or NIGC regulations;

(r) to approve Nation Gaming Operation policies and procedures so as to
ensure compliance with this Law, the Compact and its Appendices, the Act, NIGC
regulations, or any other applicable law;

(s) institute such legal proceedings in the name of the Nation in a court of
competent jurisdiction as it deems necessary for the enforcement of this Law;

(t) conduct hearings provided for in this Law;

(u) deposit all fees, penalties, and interest collected under authority of this
Law into an account to the credit of the Nation;

(v) maintain a correct and full accounting of all fees, penalties, and interest
received under authority of this Law, and provide a monthly record of that accounting;
and

(w) _ perform such other duties the SGA deems necessary to properly and fully
perform its duties and responsibilities under this Law, the Compact and its Appendices,
the Act, NIGC regulations, and any other applicable law.

§5-6 The SGA shall ensure that all records and information obtained as a result of an
employee background investigation shall remain confidential and shall not be disclosed to
persons who are not directly involved in the licensing process. Under no circumstances shall
information obtained during the course of an employee background investigation be disclosed to
members of management, human resource personnel or others employed by the Nation Gaming
Operation. This Section does not apply to requests for such information or records from any
Tribal, Federal or state law enforcement or regulatory agency, or for the use of such information
or records by the SGA and staff in the performance of their official duties.


November 26, 2002

Cyrus Schindler
President

Seneca Nation of Indians
1490 Route 438

Irving, New York 14081

Re: Amended Class II Tribal Gaming Ordinance
Dear President Schindler:

This letter is in response to the Seneca Nation of Indians’ submission of the Class II
Gaming Ordinance as Amended, adopted by Resolution No. CN: R-11-16-02-16 on
November 16, 2002, for review and approval by the Chairperson of the National Indian
Gaming Commission (NIGC). The Nation also submitted a copy of the Nation-State
Gaming Compact Between the Seneca Nation of Indians and the State of New York
(Volumes I and Il), including appendices. The amended ordinance was received by the
NIGC on November 25, 2002.

The above submission by the Nation followed an earlier submission to the NIGC of a
Class Il Gaming Ordinance and related materials on August 29, 2000. Following the
NIGC’s initial review of the ordinance, which had been adopted by Resolution No. CN:
S-8-1-02-05 on August 1, 2002, informal discussions between the NIGC and attorneys
for the Nation led to the compilation of the amended ordinance.

This letter.constitutes | approval, under the Indian Gaming Regulatory Act (IGRA), of the
Seneca Nation of Indiaris Class Il Gaming Ordinance of 2002 as Amended. It is
ipnportant to note that | the gaming ordinance is approved for gaming only on Indian lands.

(7s defined in the IGRA, » ovssonnich the Nation has jurisdiction.

j Sincere), a

/ ,

, -
Looe SY
Lg i

~ Philip N. Hogen
Chairman

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.Gov

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St. Paul, MN; Tulsa, OK


In compliance with the Privacy Act of 1974, the following information is
provided: Solicitation of the information on this form is authorized by 25
U.S.C. § 2701, et seq. The purpose of the requested information is to
determine the eligibility of individuals to be employed in a gaming
operation. The information will be used by NIGC members and staff who
have need for the information in the performance of their official duties.
The information may be disclosed to appropriate Federal, Tribal, State,
local, or foreign law enforcement and regulatory agencies when relevant
to civil, criminal or regulatory investigations or prosecutions or when
pursuant to a requirement by the Nation or the NIGC in connection with
the hiring or firing of an employee, the issuance or revocation of a gaming
license, or investigations of activities while associated with a Nation or a
gaming operation. Failure to consent to the disclosures indicated in this
notice will result in the Nation’s being unable to hire you in a employee
position. The disclosure of your Social Security Number (SSN) is
voluntary. However, failure to supply a SSN may result in errors in
processing your application.

(c) the following notice regarding false statements are prescribed by 25 C.F.R.
§ 556.3:

“A false statement on any part of your application may be grounds for not
hiring you, or for firing you after you begin work. Also, you may be
punished by fine or imprisonment (U.S. Code, Title 18, Section 1001).”

(d) the following background investigation information from each employee
and each Class III Gaming Key Employee and Class III Gaming Primary Management
Official:

qd) full name, other names used (oral or written), social security
number(s), birth date, place of birth, citizenship, gender, all languages (spoken or
written);

(2) currently and for the previous ten (10) years: business and
employment positions held, ownership interests in those businesses, business and
residence addresses, and drivers license numbers;

(3) the names and current addresses of at least five (5) personal
references, including one personal reference who was acquainted with the
applicant during each period of residence listed under paragraph (d)(2) of this
Section;

(4) current business and residence telephone numbers;

(5) a description of any existing and previous business relationships
with Indian tribes, including ownership interests in those businesses;


(c) each Class III Gaming Service Enterprise, each Non-Class III Gaming
Enterprise, and each Nation Gaming Operation on Nation lands at which Class III gaming
is conducted.

SECTION 8 - APPLICATION FOR GAMING LICENSES

§8-1 Each person having a management contract, each Class III Gaming Key
Employee and Class III] Gaming Primary Management Official whether employed by the
management contractor or directly by the Nation, and all other employees shall complete an
application for an initial gaming license or renewal of an existing gaming license for each
gaming establishment on an application form prescribed by the SGA. The application shall set
forth:

(a) the name under which the applicant transacts or intends to transact
business on Nation lands; and

(b) the location of the gaming establishment for which the gaming license is
sought; and

(c) the application shall be signed by the applicant if a natural person, or, in
the case of an association or partnership, by a member or partner thereof, or in the case of
a corporation, by executive officer thereof, or by some other person specifically
authorized by the corporation to sign the application, in which case written evidence of
the signatory’s authority shall be attached. The applicant shall provide evidence of
authority of the signatory or any other representative to act for and bind the applicant. If
any change is made in that authority, the SGA shall be immediately informed in writing
and, until that information is filed with the SGA, any action of the representative shall be
presumed to be that of the applicant.

§8-2 Each application shall be accompanied by payment of the appropriate annual
license fee, and an appropriate fee to cover the cost of the background investigation conducted
pursuant to Section 11 below.

§8-3. The management contractor shall file along with the application an organizational
chart of its management organization and job descriptions of the employees of the gaming
operation. The chart shall identify which employees are or will be the Class III Gaming Primary
Management Officials and the Class III Gaming Key Employees of the Nation Gaming
Operation.

§8-4 An application for a gaming license shall include:

(a) a description of the place, facility, or location on Nation lands where the
applicant will operate a gaming operation or provide Class III Gaming related service,
Class III] Gaming related supplies or Class III Gaming related equipment to the Nation
Gaming Operation, or where the applicant will be employed.

(b) __ the following privacy notice prescribed by 25 C.F.R. § 556.2:


(a) No member of the Nation Council may serve on the SGA;

(b) No member directly related to or living with any Nation Council member
may serve on the SGA;

(c) SGA commissioners are prohibited from gambling in Nation Gaming
Operations; and

(d) SGA commissioners are prohibited from accepting complimentary items
from the Nation Gaming Operations.

§5-4 SGA positions shall be filled by appointment by the Nation Council. Nominees
for positions on the SGA must satisfy the suitability standards set forth for Class II] Gaming
Employees. Such background investigation shall be performed under the direction of the Nation
Council or designated official, and as consistent with the Compact and its Appendices.

§5-5 The SGA shall have the power and responsibility to:
(a) administer the provisions of this Law;

(b) conduct or cause background investigations to be conducted on all
employees of the Nation’s Gaming Operation;

(c) issue and renew gaming licenses as provided in this Law and consistent
with the Compact and its Appendices, and in any regulation which may be promulgated
by the SGA;

(d) obtain and process fingerprints, or designate a law enforcement agency to
obtain and process fingerprints;

(e) revoke, suspend, or condition a gaming license or deny an application for
a license for violation of applicable law or Law regulating gaming, or conviction of any
offense involving a gaming related crime or moral turpitude;

(f) collect fees and interest as provided for in this Law;

(g) assess and collect penalties provided for in this Law;

(h) adjust the respective amounts of the annual license fees, provided that
such fees shall not be increased retroactively;

(i) audit or cause to be audited expenditures, receipts, and reports of a
licensee responsible for managing a Nation Gaming Operation;

G) review, on demand, such books and records and inspect the premises and
operations of licensees as it deems necessary for the enforcement of this Law;

(k) draw up such forms as it deems necessary;


(d) the Commission shall promulgate regulations regarding procedures.

§20-2 The SGA shall hold a hearing on the denial or proposed revocation of a gaming
license held by an employee after it has suspended such license pursuant to this Law, the
Compact and its Appendices, and 25 C.F.R. § 558.5. The Licensee shall be notified by the SGA
of the time and place for hearing. After the hearing, the SGA shall decide to issue, revoke, or
reinstate the gaming license. The SGA shall notify the NIGC of its decision and provide all other
notices required by the Compact and its Appendices.

§20-3 Any person aggrieved by a decision made or action taken by the SGA pursuant to
this section may petition the SGA for review. Such petition shall specifically set forth the
reasons for aggrievement and be filed with the SGA no later than thirty (30) business days after
the SGA’s decision or action. The SGA shall set the matter for hearing no later than thirty (30)
business days and no sooner than three (3) business days after receipt of the petition, and may,
upon establishing that it has jurisdiction, affirm, modify, reverse and/or vacate the SGA order.

SECTION 21 - SERVICE

§21-1 The Council hereby designates the President of the Nation as agent for service of
process of any official determination, order, or notice of violation.

SECTION 22 - RESOLUTION OF DISPUTES BETWEEN THE GAMING PUBLIC AND
THE NATION OR THE MANAGEMENT CONTRACTOR

§22-1 The resolution of claims involving disputes relating to a patron’s entitlement to a
game prize are to be governed by the procedures set forth in Appendix J.

§22-2 The resolution of claims involving demands or liability for bodily injury and
property damages arising out of or relating to the operation of the Gaming Facilities, are to be
governed by the procedures set forth in Appendix H.

SECTION 23 - APPLICABLE LAW

§23-1 All controversies involving contracts relating to gaming entered into under the
authority of the Council or business arm thereof on Nation lands shall be resolved, as
appropriate, in accordance with:

(a) the choice of law provision contained in the contract or agreement;
(b) the Indian Gaming Regulatory Act;
(c) NIGC regulations; and/or

(d) Seneca laws and customs within the judicial system of the Seneca Nation.

19


SENECA NATION OF INDIANS CLASS III GAMING ORDINANCE OF 2002
AS AMENDED

GENERAL PROVISIONS

SECTION 1 - SHORT TITLE

This Law may be cited as the “Seneca Nation of Indians Class III Gaming Ordinance of
2002, as amended”.

SECTION 2 - DECLARATION OF TRIBAL POLICY

§2-1 It is the policy of the Seneca Nation of Indians, hereinafter referred to as
“Nation”:

(a) That the Nation shall have the sole proprietary interest in and
responsibility for the conduct of any Nation Gaming Operation;

(b) That all gaming operations on Nation lands shall be conducted by the
Nation, through employees of the Nation or its management contractors only;

(c) That it is the objective of this Law to provide revenue to promote (i)
Nation economic development and self-sufficiency and (ii) the health, education, and
welfare of Nation members; and

(d) That the gaming activities provided for by this Law on lands of the Nation
shall be conducted in conformance with the requirements of this Law, the Nation-State
Gaming Compact Between the Seneca Nation of Indians and the State of New York, the
Indian Gaming Regulatory Act of 1988, 25 U.S.C. §§ 2701, et seq., and National Indian
Gaming Commission regulations.

SECTION 3 - FINDINGS
§3-1 The Tribal Council finds that —

(a) Class III gaming may be conducted on lands of the Nation by reason of the
fact that the Nation and the State of New York have entered into a gaming compact
pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. §§ 2701, et seq.

SECTION 4 - DEFINITIONS
§4-1 For the purpose of this Law, the following definitions shall apply:

(a) “Act” shall mean the Indian Gaming Regulatory Act, 25 U.S.C. §§ 2701, et
seq.


(2) administrative cost to the SGA; and

(3) the applicant’s status as management contractor, Class III Gaming
Primary Management Official, Class III Gaming Key Employee or employee;

§10-2. The SGA may waive the annual fee on a case-by-case basis.
SECTION 11 - BACKGROUND INVESTIGATIONS

§11-1 As provided in Appendix C, the SGA shall conduct, or cause to be conducted, a
background investigation of each applicant for a position which is designated as a Class III
Gaming Key Employee or Class III Gaming Primary Management Official sufficient to make a
qualification determination under Section 9 above and paragraph 6 of Appendix C. This shall
include verification of information submitted by the applicant. The background investigation
will also document all potential problem areas noted, and any disqualifying information. In
conducting the investigation, the SGA shall keep confidential the identity of each person
interviewed in the course of the investigation.

§11-2 The procedures set forth in Appendix C regarding background investigations are
made applicable here by reference.

§11-3. The SGA shall review a person's prior activities, criminal record, if any, and
reputation, habits and associations to make a finding concerning the eligibility of a Class III
Gaming Key Employee or Class III Gaming Primary Management Official for employment in a
gaming operation. If the SGA determines that employment of the person poses a threat to the
public interest or to the effective regulation of gaming, or creates or enhances dangers of
unsuitable, unfair, or illegal practices and methods and activities in the conduct of gaming, a
tribal gaming operation shall not employ that person in a Class III Gaming Key Employee or
Class III Gaming Primary Management Official position.

§11-4 Investigative Reports.

(a) The SGA shall prepare or cause to be prepared, and forward to the NIGC
an investigative report summarizing each background investigation of a Class III Gaming
Key Employee or Class III Gaming Primary Management Official that the Nation intends
to employ.

(b) The SGA shall forward an investigative report to the NIGC within sixty
(60) days after a Class III Gaming Key Employee or Class III Gaming Primary
Management Official begins work or within sixty (60) days of the approval of this Law
by the NIGC.

(c) Each investigative report shall include the following:
(1) the steps taken in conducting the background investigation;

(2) the results obtained;

12


SECTION 12 - USE OF NET REVENUES

§12-1 Net revenues from gaming permitted under this Law shall only be expended for
one or more of the following purposes:

(a) to fund the Nation’s government operations or programs;

(b) to provide for the general welfare of the Nation and its members;
(c) to promote economic development;

(d) to donate to charitable organizations; or

(e) to support operations of local governmental agencies.

§12-2 Ifthe Council elects to make per capita payments to tribal members, it shall
authorize such payments only upon approval of a plan submitted to the Secretary pursuant to 25
U.S.C. § 2710(b)(3).

SECTION 13 - RECORDS AND REPORTS

§13-1 A gaming operation shall keep permanent books of account or records, including
inventory records of gaming supplies, sufficient to establish the amount of gross and net income,
deductions and expenses, receipts and disbursements, and other information required in any
financial statement, report, or other accounting prepared pursuant to the Compact and its
Appendices, the Act and NIGC regulations.

§13-2 No later than the thirtieth (30th) day of each month, each gaming operator shall
provide, in a report form prescribed by the SGA, a statement of gross revenues, assemble gross
revenue and net revenues received or collected at each Nation Gaming Operation during the
immediate preceding month.

§13-3 The Nation Gaming Operation shall maintain, in a climate controlled place secure
from theft, loss, or destruction, adequate records of its business and accounting operations. The
Nation Gaming Operation shall make the records available to the SGA, the SGO, and NIGC
officials upon request. The Nation Gaming Operation shall retain the records for not less than
seven (7) years. The records shall include, but not be limited to, the records identified in
Appendix B.

§13-4 The Nation Gaming Operations shall also comply with the relevant provision of
the Compact and its Appendices relating to reports and records.

SECTION 14 - ANNUAL AUDIT

§14-1 (a) The SGA shall cause to be conducted, at least annually, an independent
audit of the books and records of each gaming operation.

14


CLASS Il] GAMING ORDINANCE/TECHNICAL AMENDMENTS/RESOLUTION
REGULAR COUNCIL SESSION

NOVEMBER 16, 2002

PAGE 2

BE IT FURTHER RESOLVED, that legal counsel, Akin Gump Strauss Hauer & Feld LLP, is authorized to
submit the amended gaming ordinance to the NIGC for review and approval.

ROLL CALL VOTE: 14-YES; 2-ABSENT MOTION CARRIED

CERTIFICATION

Uhereby certify the foregoing extract is a true and correct copy from the minutes of the Regular Session

of Council of the Seneca Nation of Indians held on November 16, 2002, on the Allegany Indian Reservation,
original of which is on file in the Clerk’s Office of the Seneca Nation of Indians.

IN TESTIMONY WHEREOF, I have hereunto subscribed my name and caused the seal to be affixed at
the G.R. Plummer Building on the Allegany Reservation, Salamanca, New York 14779, on the 20” day of
November, 2002.

ATTEST:

{SEAL}

Sheile L. Kettle, Clerk
THE SENECA NATION OF INDIANS



President - Rickey L. Armstrong, Sr.
Clerk « Sheila L. Kettle

Seneca Nation of Indians

Treasurer - Shelley R. Huff

P.O, BOX 231 1490 ROUTE 438
SALAMANCA, NEW YORK 14779 IRVING, NEW YORK 14081
Tel. (716) 945-1790 Tel, (716) 532-4900
FAX (716) 945-1565 FAX (716) 532-6272

AT THE REGULAR SESSION OF COUNCIL OF THE
SENECA NATION OF INDIANS HELD ON NOVEMBER 16,
2002, AT THE G.R. PLUMMER BUILDING ON THE
ALLEGANY INDIAN RESERVATION, SALAMANCA,
NEW YORK 14779

CN: R-11-16-02-16

EXECUTIVES PRESENT: PRESIDENT - RICKEY L. ARMSTRONG SR.

CLERK . SHEILA L. KETTLE
TREASURER - SHELLEY R. HUFF

ASS II
MOTION:

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

OR! If IN

by Berga! L. Mitchell, Ill, seconded by Linda Doxtator, that Tribal Council approves the
following resolution:

the Indian Gaming Regulatory Act of 1988 (IGRA), 25 U.S.C. §§ 2701-2721. requires an
approved Class IIf gaming ordinance as a condition of engaging in Class I! gaming. The
requirements for the ordinance are set forth in IGRA and National indian Gaming
Commission (NIGC) regulations, which requirements are essentially the same as the Class I!
gaming ordinance that the Council enacted in 1994;

Tribal Council previously resolved on August 1, 2002, to adopt and enact the “Seneca
Nation of Indians Class II] Gaming Ordinance of 2002” (Ordinance);

the Ordinance was submitted to the Chairman of the NIGC for review and approval on
August 29, 2002;

informal discussions between NIGC officials and the Nation's legal counsel, Akin Gump
Strauss Hauer & Feld LLP, indicate that certain minor technical revisions to the Ordinance
are necessary so as ensure that the Ordinance fully comports with IGRA and NIGC
regulations;

the revisions to the Ordinance will be limited to critical areas relating to the procedures for

performing licensing and background investigations of Class I{! Gaming Key Employees
and Class {11 Gaming Primary Management Officials;

NOW, THEREFORE, BE IT RESOLVED, that the Council hereby amends and replaces the Ordinance

enacted on August |, 2002, as amended, and adopts and enacts the attached ordinance to be
known as the “Seneca Nation of indians Class 11] Gaming Ordinance of 2002, as amended.”


(6) a description of any existing and previous business relationships
with the gaming industry generally, including ownership interests in those
businesses;

(7) the name and address of any licensing or regulatory agency with
which the person has filed an application for a license or permit related to gaming,
whether or not such license or permit was granted;

(8) for each felony for which there is an ongoing prosecution or a
conviction, the charge, the name and address of the court involved, and the date
and disposition if any;

(9) for each misdemeanor conviction or on-going misdemeanor
prosecution (excluding minor traffic violations), within ten (10) years of the date
of the application, the name and address of the court involved and the date and
disposition;

(10) for each criminal charge (excluding minor traffic charges) whether
or not there is a conviction, if such criminal charge is within ten (10) years of the
date of the application and is not otherwise listed pursuant to paragraph (d)(8) or
(d)(9) of this Section, the criminal charge, the name and address of the court
involved, and the date and disposition;

(11) _ the name and address of any licensing or regulatory agency with
which the applicant has filed an application for an occupational license or permit,
whether or not such license or permit was granted;

(12) acurrent photograph;

(13) acomplete history of the applicant’s educational background,
including the names of any colleges, universities, trade or vocational schools, and
high schools attended;

(14) _ fingerprints of the applicant to be taken by the Seneca Nation
department of law enforcement a state or federal law enforcement agency; for a
criminal history check. A criminal history check will include a check of criminal
history records information maintained by the Federal Bureau of Investigation
pursuant to 25 C.F.R. § 522.2(h);

(15) a statement authorizing law enforcement agencies and prior
employers to release information and respond to questions relating to the
applicant’s records.

(16) all applicants are required to submit to a drug screening test and, if
employed, random screening tests thereafter;

(17) any other information that is required by the Compact or its
Appendices; and

10


(3) the conclusions reached; and
(4) the basis for those conclusions.

(d) | The SGA shall submit to the NIGC, along with the investigative report, a
summary of the SGA’s qualification determination made under Section 9 above and
paragraph 6 of Appendix C.

(e) if a gaming license is not issued to an applicant, the SGA:
(1) shall notify the NIGC; and

(2) may forward copies of its qualification determination and
investigative report (if any) to the NIGC for inclusion in the Indian Gaming
Individuals Records System.

(f) With respect to Class III Gaming Key Employees and Class III Gaming
Primary Management Officials, the SGA shall retain applications for gaming licenses and
reports (if any) of background investigations for inspection by the Chairman or his or her
designees for no less than three (3) years from the date of termination of employment.

(g) A gaming operation shall not employ as a Class III Gaming Key Employee
or Class III Gaming Primary Management Official a person who does not have a gaming
license ninety (90) days after a license application has been submitted.

§11-5 Granting a Gaming License

(a) If, within a thirty (30) day period after the NIGC notifies the SGA that it
has no objection to the issuance of a gaming license pursuant to a license application filed
by a Class III Gaming Key Employee or a Class III Gaming Primary Management
Official for whom the SGA has provided an application and investigative report to the
NIGC, the SGA may issue a license to such applicant.

(b) If, within the thirty (30) day period described in Subsection (a) above, the
NIGC provides the SGA with a statement itemizing objections to the issuance of a
gaming license to a Class III Gaming Key Employee or to a Class III Gaming Primary
Management Official application, the SGA shall reconsider the application, taking into
account the objections itemized by the NIGC. The SGA shall make the final decision
whether to issue a gaming license to such applicant, consistent with the Compact and its
Appendices.

§11-6 Gaming License Suspension

If, after the issuance of a gaming license, the SGA receives from the NIGC
reliable information indicating that a Class III Gaming Key Employee or a Class III
Gaming Primary Management Official is not eligible for employment under Section 9 of
this Law, the Nation shall suspend such license and shall notify in writing the licensee of
the suspension and the proposed revocation.

13