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Exhibit 10.3  

NATION
AGREEMENT 

Dated
as of November 22, 2002 

Between 

FREEMANTLE
LIMITED

("Lender") 

and 

SENECA
NATION OF INDIANS,

("Nation") 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 
	 	Page

	SECTION 1.    DEFINITIONS AND MISCELLANEOUS	 	1
	 	 	1.1.	Defined Terms	 	1
	 	 	1.2.	Recitals, Exhibits and Schedules	 	1
	SECTION 2.    CERTAIN LENDER RIGHTS	 	1
	 	 	2.1.	Future Financing	 	1
	SECTION 3.    REPRESENTATIONS AND WARRANTIES OF NATION	 	2
	 	 	3.1.	Representations and Warranties of Nation	 	2
	SECTION 4.    COVENANTS	 	4
	 	 	4.1.	Affirmative Covenants of Nation Applicable Throughout the Term	 	4
	 	 	4.2.	Negative Covenants of Nation Applicable Throughout the Term	 	6
	SECTION 5.    LIMITED RECOURSE	 	8
	 	 	5.1.	Limited Recourse	 	8
	 	 	5.2.	Injunctive Relief Only	 	8
	 	 	5.3.	Return of Funds Transferred After Breach	 	9
	 	 	5.4.	No Lien or Encumbrance on Nation Assets or Property	 	9
	 	 	5.5.	No Money Damages	 	9
	SECTION 6.    MISCELLANEOUS	 	10
	 	 	6.1.	Relationship with the Lender	 	10
	 	 	6.2.	Captions; References	 	10
	 	 	6.3.	Counterparts	 	10
	 	 	6.4.	Severability	 	10
	 	 	6.5.	Notices	 	10
	 	 	6.6.	Compliance with 25 U.S.C. § 81	 	11
	SECTION 7.    RESOLUTION OF DISPUTES	 	12
	 	 	7.1.	Direct Negotiation	 	12
	 	 	7.2.	Mediation	 	12
	 	 	7.3.	Arbitration	 	12
	 	 	7.4.	Confidentiality	 	13
	 	 	7.5.	Equitable Relief	 	13
	 	 	7.6.	Personal Jurisdiction; Service of Process	 	14
	 	 	7.7.	Waiver of Immunity and Consent to Suit	 	14
	 	 	7.8.	Survival of this Section	 	14

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NATION AGREEMENT    
    

        THIS NATION AGREEMENT (as supplemented, modified, amended, restated or extended from time to time, the "Agreement") is made as of the 22nd day of
November, 2002, by and between Freemantle Limited, a corporation organized in the Isle of Man ("Lender"), and the Seneca Nation of Indians, a federally recognized Indian Tribe and Native American
sovereign nation (the "Nation"). 

W I T N E S S E T H  

        WHEREAS, the Nation has formed a tribally chartered corporation known as the Seneca Niagara Falls Gaming Corporation (the "Borrower"), and the Borrower has
commenced construction of a Class III gaming casino located in the Niagara Falls Convention Center (the "Facility"), as more particularly described in Exhibit A-1 attached to
that certain term loan agreement made as of the 22nd day of November, 2002, by and between the Lender and the Borrower (the "Term Loan Agreement") (such parcels and buildings, together
with all rights and interests appurtenant thereto, the "State's Land"); and 

        WHEREAS,
the Nation intends to acquire various additional parcels of land contiguous to the State's Land, as more particularly described in Exhibit A-2 attached to the
Term Loan Agreement, from certain private and municipal parties (such parcels and buildings, together with all rights and interests appurtenant thereto, the "Private Land", and, together with the
State's Land, the "Land"), provided that "Land" as used herein shall include any real property that is owned or leased by the Nation (or any Affiliate thereof) and leased or subleased to the Borrower;
and 

        WHEREAS,
the Nation intends to file applications with the Secretary to have the parcels of Private Land held in restricted fee status as it acquires title to them pursuant to the Seneca
Settlement Act, 25 U.S.C.§1774(f)(c); and 

        WHEREAS,
the Borrower desires to borrow from the Lender an aggregate amount equal to Eighty Million Dollars ($80,000,000) pursuant to the Term Loan Agreement and the Lender is willing to
lend such amounts to Borrower upon certain terms and conditions set forth therein, including without limitation, that the Nation enter into this Agreement and the Non-Disturbance and
Attornment Agreement (Head Lease); 

        NOW,
THEREFORE, in consideration of the terms and conditions contained herein, and of any extension of credit now and hereafter made by Lender to Borrower, the parties hereto hereby
agree as follows: 

        SECTION
1.    DEFINITIONS AND MISCELLANEOUS    

        1.1.    Defined Terms.    Capitalized terms used herein and not otherwise defined herein shall have the meaning given
to such terms in the Term Loan Agreement. As used herein, the following terms shall have the following meanings: 

        "Non-Disturbance
and Attornment Agreement (Head Lease)" means the consent, waiver and non-disturbance and recognition agreement executed by the Nation as of the
date hereof in favor of the Lender with respect to the Head Lease, either as originally executed or as it may from time to time be supplemented, modified, amended, restated or extended. 

        1.2.    Recitals, Exhibits and Schedules.    All Recitals, Exhibits and Schedules to this Agreement, either as
originally existing or as the same may from time to time be supplemented, modified or amended, are incorporated herein by reference. A matter disclosed on any Schedule shall be deemed disclosed on all
Schedules. 

        SECTION
2.    CERTAIN LENDER RIGHTS    

        2.1.    Future Financing.    (a) In the event that the Nation or any Affiliate thereof proposes to undertake an
expansion of the Project, including without limitation another gaming facility or any facilities ancillary to the Project or another casino such as parking garages, hotels, restaurants and meeting
facilities (collectively, the "Additional Development"), Lender will be under no obligation to 

 

finance
such Additional Development, and the Borrower shall be under no obligation to obtain financing from Lender for such Additional Development. 

        (b)
In the event that the Nation or any Affiliate thereof proposes to undertake gaming-related development in Erie County, the City of Buffalo or at any other site other than the Project
(the "Additional Gaming Site"), the Lender will be under no obligation to finance such project, and the Borrower will be under no obligation to obtain financing from the Lender for such Additional
Gaming Site; provided, however, that the Nation will, if the Lender does not finance such Additional Gaming Site, cause the appropriate Affiliate that operates such gaming facility to provide the
Lender with a guaranty of the Loan (or portion thereof) and/or such additional collateral for the Loan as is deemed reasonably acceptable by Lender, such that the position of the Lender is maintained
on an equivalent basis to its position existing prior to the development of such additional gaming facility (i.e., the guaranty may guarantee less than the total amount of all obligations under the
Loan Agreement provided that the position of the Lender shall be maintained on an equivalent basis to its position existing prior to the development of such additional gaming facility). Such guaranty,
in a form substantially as set forth in Exhibit 2.1, that is granted by such Affiliate of the Nation shall rank superior to the Principal Indebtedness (as hereinafter defined) that is incurred
by the Nation or such Affiliate in connection with the construction and operation of such gaming facility (provided that the Nation or such Affiliate shall cause the holder of such Indebtedness to
enter into subordination agreements as described in the Guaranty in Exhibit 2.1 hereto); provided, however, that such guaranty will rank pari
passu to the Principal Indebtedness that is incurred by the Nation or such Affiliate in connection with the construction and operation of such gaming facility so long as the
Borrower's annual EBITDA shall equal at least One Hundred Million Dollars ($100,000,000). For purposes hereof, "Principal Indebtedness" shall mean the item or items of Indebtedness incurred by the
Nation or such Affiliate in connection with the construction and operation of such gaming facility that constitute the principal financing for such construction and operation. Without limiting the
foregoing, Principal Indebtedness shall exclude Indebtedness consisting of vendor or other purchase money equipment financing. 

        SECTION
3.    REPRESENTATIONS AND WARRANTIES OF NATION    

        3.1.    Representations and Warranties of Nation.    Nation hereby represents and warrants as follows: 

        (a)
The Nation is a federally recognized Indian tribe, organized pursuant to the Constitution of the Seneca Nation of Indians of 1848, as amended. The Nation is a non-taxable
entity for purposes of federal income taxation under the Code. The Seneca Gaming Corporation is a wholly-owned instrumentality of the Nation and the Nation has caused the Borrower to assume all
obligations, responsibilities and duties of the Seneca Gaming Corporation to the extent applicable to the Project, subject to the control of the Seneca Gaming Corporation. The Nation is in material
compliance with the terms of the Compact, the Ordinance and with all Laws and other legal requirements applicable to its existence and business (including without limitation, IGRA), a violation of
which would have a material adverse effect on the business, operations, assets or financial or other condition of the Nation, as contemplated hereby, or the ability of the Nation to perform its
obligations under this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease). 

        (b)
Nation has full power, authority and legal right to execute, deliver and perform this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease), and has
taken all necessary governmental and other action to authorize the execution, delivery and performance by Nation of this Agreement and the Non-Disturbance and Attornment Agreement (Head
Lease). This Agreement and the Non-Disturbance and Attornment Agreement (Head Lease) have been duly executed and delivered by a duly authorized officer of Nation, and, upon approval by the
Secretary pursuant to 25 U.S.C.§81, if required, this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease) constitute valid, legal and binding obligations of
the Nation, enforceable against the Nation in 

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accordance
with their terms, subject, as to enforcement, to the availability of equitable remedies and limitations imposed by bankruptcy, insolvency, reorganization and other similar laws and related
court decisions relating to or affecting creditors' rights generally. The Nation has adopted such authorizing resolutions as are appropriate, in the reasonable opinion of the Lender's counsel, for it
to execute, deliver and perform its obligations under this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease). The Nation, furthermore, understands that Borrower is
entering into the Term Loan Agreement and the other Loan Documents and has granted the Borrower with the power and authority to so enter into such Term Loan Agreement and other Loan Documents,
including the terms and conditions of same, including without limitation, the waiver of sovereign immunity, consent to jurisdiction, waiver of certain defenses and consent to security and leasehold
encumbrances. 

        (c)
The execution, delivery and performance by Nation of this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease) and the enforcement by Lender of this
Agreement and the Non-Disturbance and Attornment Agreement (Head Lease) will not result in the creation or imposition of any lien, charge or encumbrance other than the lien in favor of the
Lender created pursuant to the Term Loan Agreement upon any of the Leased Property or the Personalty pursuant to the terms of, or conflict with or result in a breach of any of the terms or provisions
of, or constitute a default under, any material indenture, mortgage, deed of trust, loan agreement, lease or other material agreement or instrument to which the Nation is a party or by which it is
bound, which breach or default would have a material adverse effect on the business, operations, assets or financial or other condition of the Borrower, or the ability of Borrower to perform its
obligations under the Term Loan Agreement and/or the other Loan Documents, nor will such actions result in any violation of the provisions of Borrower's organizational documents or the Nation's
Constitution, charter, bylaws or other organizational documents, the Ordinance or any statute, including, without limitation, IGRA, the Compact, or any order, rule or regulation of any court or
governmental or tribal agency or body having jurisdiction over Borrower, the Nation or any of the Leased Property or Personalty. Except for the approvals listed in Schedule II of the Term Loan
Agreement, any consent, approval, authorization, order, registration or qualification of or with or notice to any court or any such governmental or tribal agency or body required for the execution,
delivery and performance by Borrower of this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease) and the enforcement by Lender of such documents, has been validly
obtained and is in full force and effect. 

        (d)
The Nation is not in material default under any agreement to which it is a party, including, without limitation, agreements for borrowed money, which default could have a material
adverse effect on the business, operations, assets or financial or other condition of the Nation, as contemplated hereby, or
the ability of the Nation to perform its obligations under the this Agreement and the Non-Disturbance and Attornment Agreement (Head Lease). 

        (e)
Except for (i) any agreements entered into with third parties who are not Affiliates of Borrower or the Nation pertaining to the sharing of proceeds from entertainment
programs offered within the Facility and which comply in all respects with the restrictions relating thereto set forth in Section 8.1(h) of the Term Loan Agreement, and (ii) the Compact,
the Nation has not entered into any contract, agreement or commitment conferring on anyone other than Borrower any right or claim to undertake with the Borrower any of the transactions contemplated by
the Term Loan Agreement or to receive any portion of the income from the Facility or the Project. 

        (f)
Subject to confirmation by the Commission in the exercise of its regulatory discretion in matters involving Indian gaming, neither this Agreement nor the Non-Disturbance
and Attornment Agreement (Head Lease) (i) constitutes a "management contract" within the meaning of IGRA, (ii) deprives Borrower of the sole proprietary interest and responsibility for
the conduct of any gaming activity within the meaning of IGRA or (iii) requires any consent, approval, authorization, order, registration or qualification of or with or notice to any court or
governmental or tribal agency or body 

3

 

other
than the approval of each of the Loan Documents, if determined to be required by law, by the Secretary of the Interior pursuant to 25 U.S.C. § 81. 

        (g)
The State has transferred the fee title to the State's Land in fee simple to the Nation. The Nation has filed an application with the Secretary to hold the State's Land in restricted
fee status. The Secretary is currently considering the Nation's application to hold the State's Land in restricted fee status pursuant to the Seneca Nation Land Claims Settlement Act, 25
U.S.C.§1774, et. seq. and such determination is expected to occur on or prior to November 29, 2002. Furthermore, the Secretary has made a determination that lands held in restricted
fee status pursuant to the Seneca Nation Land Claims Settlement Act are "Indian lands" for purposes of IGRA. Subject to the Leases, the Nation has good and marketable title in fee simple and right of
use, occupancy and possession of the State's Land, the Building and the Fixtures, in each case, free and clear of all Liens whatsoever, except the Permitted Encumbrances as set forth in
Exhibit K of the Term Loan Agreement. Pursuant to the Resolution, upon approval of the Nation's application to hold the State's Land in restricted fee status, Borrower shall be entitled to
conduct gaming activities thereon consistent with the requirements of the Compact and the Ordinance. The Tribal Council of the Seneca Nation of Indians has taken all the steps necessary and
appropriate to authorize the Leases and the grant by the Borrower of the Leasehold Mortgages. 

        (h)
The Tribal Council of the Nation has taken all required action, and have duly adopted appropriate resolutions, in order to (i) provide for the Nation's waiver of sovereign
immunity and consent to jurisdiction contained herein and in the Non-Disturbance and Attornment Agreement (Head Lease), and (ii) grant to the Borrower the authority to consent to
all the obligations under the
Loan Documents, including the Borrower's right to encumber Borrower's assets and leasehold interests, waiver of certain defenses, waiver of sovereign immunity and consent to jurisdiction. 

        (i)
Other than the Borrower, the Nation has no Subsidiaries and no Affiliates which are included in or controlled by or through Borrower. All activities of the Nation constituting or
relating to the ownership and operation in Niagara County, New York, of Class III gaming activities within the meaning of IGRA, and all activities of the Nation constituting or relating to the
ownership of other activities traditionally associated with casino gaming at the Project, are and will be conducted on behalf of the Nation by Borrower pursuant to the authority granted to Borrower in
its Corporate Charter. 

        (j)
The Nation has executed and delivered the Non-Disturbance and Attornment Agreement (Head Lease), the Non-Disturbance and Attornment Agreement and the
Reaffirmation. 

        (k)
Nation agrees that all of the representations and warranties of Nation set forth in this Agreement shall survive for so long as any portion of the Recourse Obligations are
outstanding under the Term Loan Agreement and thereafter to the extent provided therein. All representations, warranties, covenants and agreements made by Nation in this Agreement shall be deemed to
have been relied upon by the Lender, notwithstanding any investigation heretofore or hereafter made by the Lender or on its behalf. 

        SECTION
4.    COVENANTS    

        4.1.    Affirmative Covenants of Nation Applicable Throughout the Term.    Nation hereby covenants and agrees with
Lender that at all times throughout the Term (except as otherwise set forth herein): 

        (a)
The Nation shall not interfere with Borrower's right to engage, on an exclusive basis, primarily in the business presently conducted or contemplated by it, as set forth in the
Resolution, and to maintain its existence as a tribally chartered corporation operating as an instrumentality of the Nation. The Nation will do or cause to be done all things necessary to preserve and
keep in full force and effect the existence of Borrower as a tribally chartered corporation operating as an instrumentality of the Nation. 

4

 

        (b)
The Nation will diligently perform and observe all of its obligations under, and all of the provisions of, the Compact. The Nation will not agree or consent to any amendment or
modification of the
Compact or any procedures prescribed by the Secretary of the Interior pursuant to § 2710(d)(7)(B)(vii) of IGRA under which Class III gaming may be conducted on the Indian
lands over which Nation has jurisdiction which would materially impair the ability of Borrower to operate the Project as a Class III casino gaming facility, or as otherwise contemplated hereby
or in the Term Loan Agreement, or the profitability of Borrower or which adversely affects Lender in any way. 

        (c)
During the continuance of an Event of Default, (A) the Nation will cooperate with, and will not interfere with, Lender's exercise of any or all of its rights, remedies and
recourses hereunder or under the Term Loan Agreement and the other Loan Documents, including, without limitation, by (i) not opposing or interfering in any way with the appointment of a
receiver in accordance with clause (b) of Section 11.1 of the Term Loan Agreement, or (ii) not opposing Lender's exercise of its right to enter into the management agreement
referred to in clause (c) of Section 11.1 of the Term Loan Agreement in any form consistent with IGRA as may be reasonably required by Lender, subject to such approvals of any
Governmental Authorities (including without limitation the Commission) as may then be required, in each case, if requested by Lender; and (B) the Nation (i) will not in any way interfere
with the exercise of such rights or remedies by Lender, and (ii) will cooperate with Lender and promptly do all things required of it by Lender toward obtaining all necessary authority,
permission, licenses, consents, authorizations and approvals from any Governmental Authority (including, without limitation, the Commission) or otherwise as may be necessary or desirable for Lender to
exercise any of its rights, remedies and recourses hereunder or under the other Loan Documents; provided, however, that nothing herein shall prohibit Borrower from asserting that no Event of Default
has occurred. 

        (d)
The Nation agrees that any real property, within the area designated in the Term Loan Agreement as Private Land and more particularly described in Exhibit A-2 to
the Term Loan Agreement, acquired, whether or not such property is used for gaming activities, including any improvements thereon, following the Second Closing Date (the "After-Acquired Property")
shall be purchased by the Nation and leased to the Borrower and subjected to a form of leasehold mortgage, substantially in the form of the Leasehold Mortgages, as additional collateral for the Loan;
provided further that any rent paid to the Nation or any Affiliate with respect to such After-Acquired Property, shall in all events be subordinate to payment (i) of Current Interest, Variable
Interest, Fixed Interest and principal under the Term Loan Agreement and (ii) of funds into the Sinking Fund Account as set forth in Section 3.5 of the Term Loan Agreement. 

        (e)
Intentionally deleted. 

        (f)
Intentionally deleted. 

        (g)
The Nation will cause any Affiliate that undertakes gaming-related development within a 100-mile radius of the Project to enter into an agreement with Whiteswan Limited
(an Isle of Man company) or an affiliate or designee of Whiteswan Limited (collectively, "Whiteswan") to retain its services as either, at the option of Whiteswan, the exclusive consultant or the
exclusive junket operator in connection with the operation of the junket business at such gaming facility. Such agreement shall be consistent with the provisions of the Junket Letter Agreement of even
date herewith between Whiteswan and Borrower, or, if applicable, the Junket Agreement between Whiteswan and Borrower contemplated by Section 1 of such Junket Letter Agreement in connection with
the operation of the junket business at the Project. 

5

 

        4.2.    Negative Covenants of Nation Applicable Throughout the Term.    The Nation hereby covenants and agrees with
Lender that at all times throughout the Term: 

        (a)
The Nation shall not use, maintain, operate or occupy, or allow the use, maintenance, operation or occupancy of, any portion of the Leased Property, the Project or the Personalty in
any manner which would result in a violation of Legal Requirements or the terms, covenants or conditions of any agreement or instrument to which Borrower or the Nation is a party or by which either of
them is bound or to which any of the property or assets of Borrower are subject, the violation of any of which could have a material adverse effect on the business, operations, assets or financial or
other condition of Borrower or the Project, as contemplated in the Term Loan Agreement, or the ability of Borrower to perform its obligations under the Term Loan Agreement and/or the other Loan
Documents, or make void, voidable or cancelable, or substantially increase the premium of, any insurance then in force, or required hereunder to be in force, with respect thereto; provided, however,
that the foregoing shall not preclude the Borrower from contesting the applicability of any Legal Requirement in accordance with the Contest Procedure. 

        (b)
The Nation shall not commit or permit any waste of the Leased Property or permit any nuisance to be maintained thereon. 

        (c)
The Nation acknowledges and agrees that, except for Permitted Transfers and as and to the extent permitted by Section 3.3 of the Term Loan Agreement, Borrower will not
(i) directly or indirectly declare or make, or incur any liability to make, any dividends or other distributions on, or any redemption or other acquisitions of, its ownership interests or
transfer funds from Borrower to the general fund or other accounts of the Nation, or transfer Property (including funds) of Borrower to any Affiliate at any time, or (ii) sell, transfer,
distribute, or pay any money or Property to any Affiliate, or lend or advance money or Property to the Nation or any Affiliate, or invest in (by capital contribution or otherwise) or purchase or
repurchase any ownership interest or Indebtedness, or any Property, of any Affiliate, or become liable on any guaranty of the Indebtedness, dividends, or other obligations of any Affiliate, or
(iii) pay any rent to the Nation. In furtherance thereof, the Nation will neither demand nor accept from Borrower any payment of such rent that would not constitute (whether due to the time at
which such payment is made or the amount of such payment) a Permitted Use of Cash Flow under clause (e) of Section 3.3 of the Term Loan Agreement. In the event that any such prohibited
payment or transfer is made to the Nation or any Affiliate, the Nation shall hold such funds in trust for the benefit of the Borrower and the Lender and shall return or reimburse such funds to
Borrower, and shall take such steps, and cause its Affiliates to return any funds and take such steps, as are appropriate to remedy such breach. In the event that the rental payments made by the
Borrower to the Nation are less than the amounts required under the Head Lease due to the operation of such clause (e) of Section 3.3 of the Term Loan Agreement, such failure to pay
shall not constitute a default by Borrower under the Head Lease and the Nation shall allow Borrower to continue to occupy the Land and improvements thereon for the purposes set forth in the Loan
Documents. Notwithstanding the foregoing, Borrower may (a) pay any reasonable compensation obligations incurred in the ordinary course of the business of Borrower to individuals who are
employees, officers or directors of Borrower or who provide services to Borrower in the ordinary course of the business of Borrower, (b) award prizes fairly won by Affiliates of Borrower and
(c) reimburse the Nation or an Affiliate for the actual cost incurred by the Nation or such Affiliate for goods or services provided by the Nation or such Affiliate to Borrower in the ordinary
course of the business of Borrower; provided, however, that so long as no Event of Default has occurred or is continuing, Borrower may (x) reimburse the Nation or an Affiliate for the fair
market value of such goods and services so long as the price paid by Borrower to the Nation does not exceed the price which Borrower would have paid in a comparable arm's length transaction with an
unrelated Person providing such goods or services, and (y) employ enrolled members of the Nation and their immediate family members on terms consistent with those which Borrower would have used
in a comparable arm's length transaction with an unrelated Person. 

6

 

        (d)
The Nation acknowledges that, under the Term Loan Agreement, the Borrower must maintain all of its Property, including all funds and bank accounts, separate and distinct from other
Property, including other funds and bank accounts of the Nation or any Affiliate of the Borrower, and, except for Permitted Transfers and as otherwise permitted under Section 8.3(c) of the Term
Loan Agreement, the Borrower will not transfer, loan or make any other distribution of any of its Property to any other accounts or funds of the Nation or of any other Affiliate of the Borrower or
otherwise divert, transfer or distribute cash or property held by Borrower for or with respect to the Project or its operations for other purposes of the Nation, the Borrower or any Affiliate; and
Nation shall not demand, impose or receive any tax, charge, assessment, fee, or other Imposition or impose any regulatory or licensing requirement (or suffer to exist any of the foregoing), except as
provided in the Ordinance, against Borrower, Lender, the Leased Property, the Project, the Personalty or the employees, officers, directors, or patrons of Borrower, other than the obligation of
Borrower to pay the actual and reasonable regulatory expenditures of the Seneca Gaming Authority under the Ordinance and to pay
any fee imposed on Borrower by the Commission under IGRA; provided, however, that nothing in this paragraph (d) shall prohibit Borrower from making Permitted Transfers. 

        (e)
Intentionally deleted. 

        (f)
Intentionally deleted. 

        (g)
The Nation: 

        (i)
will not enact any Debtor Relief Law that would impair, limit, restrict, delay or otherwise adversely affect any of the rights and remedies of the Lender provided for in the Loan
Documents; 

        (ii)
will not, nor permit Borrower or any of the Nation's representatives, political subunits, agencies, instrumentalities or councils to, exercise any power of eminent domain or like
power all or any portion of the Leased Property or the Project. Except as required by state or federal Law, the Nation will not enact any statute, law, ordinance or rule that would have a material
adverse affect upon the rights of the Lender under the Loan Documents; and 

        (iii)
agrees that upon any payment or distribution of assets upon any liquidation, dissolution, winding up, reorganization, assignment for the benefit of creditors, marshaling of assets
or any bankruptcy, insolvency or similar proceedings of or with respect to Borrower, the Lender shall be entitled to receive payment in full of all obligations before any payment or distribution is
made to the Nation. 

        (h)
Intentionally deleted. 

        (i)
The Nation shall not assert, in connection with any suit, action or proceeding in any forum in respect of this Agreement or the Non-Disturbance and Attornment Agreement
(Head Lease), the jurisdiction of any of its tribal courts or other forums of the Nation. The Nation shall not seek to exercise the jurisdiction of any of Nation's tribal courts (whether now or
hereafter existing) or other forums (whether now or hereafter existing) over any suit, action or proceeding relating to this Agreement, the Loan Documents or the Lender and the Nation hereby waives
any claim or right which it may possess to the exercise of such jurisdiction and any requirement that tribal remedies be exhausted is hereby waived. This Agreement shall be construed and interpreted
in accordance with the law of the State of New York. 

        (j)
The Nation shall not directly or indirectly: 

        (i)
adopt, enact, amend, promulgate or otherwise place into effect any tribal Law which impairs or interferes, or could impair or interfere, in any manner, with any right or remedy of
the Lender, the obligations of the Nation or Borrower under this Agreement or the other Loan Documents (it being understood and agreed that any such tribal Law which is adopted, enacted, 

7

 

promulgated
or otherwise placed into effect without the consent of the Lender shall, with respect to the Loan Documents, not affect the rights and remedies of the Lender thereunder, and the
obligations, be void and of no effect); or 

        (ii)
demand, impose, receive or assess any tax, charge, assessment, fee or other imposition (except as specifically contemplated by Sections 8.3(c) or 8.3(e)(i)(B) of the Term Loan
Agreement) or impose any regulatory or licensing requirement, except as provided in the Ordinance, against Borrower, its customers or guests, its operations or Property (including, without limitation,
the Facility), the Lender, the employees, officers, directors, patrons or vendors of Borrower, other than (i) charges upon Borrower to pay the actual and reasonable regulatory expenditures of
the Seneca Gaming Authority under the Ordinance, (ii) sales, use, room occupancy and related excise taxes, including admissions and cabaret taxes and any other taxes (other than income taxes)
imposed by the Nation on the Borrower, its patrons, or operations, provided that the rate and scope of such taxes shall not be more onerous than those which may be imposed by the State of New York,
and (iii) fees imposed on Borrower by the Commission under IGRA. 

        (iii)
amend the Ordinance, the Compact, the charters or by-laws for either the Seneca Gaming Corporation or the Seneca Niagara Falls Gaming Corporation (the "Corporations"),
or any Law in effect on the date of the Term Loan Agreement in any manner which would be materially adverse to the interest or rights of Lender, restrict or eliminate the exclusive right of the
Corporations to conduct gaming operations on behalf of the Nation, conduct or permit any other entity to conduct gaming operations on any property owned, directly or beneficially, or controlled by the
Nation or materially and adversely alter, modify or amend any regulation relating to Lenders rights under the Promissory Note or the Term Loan Agreement or any of the other Loan Documents; 

        (iv)
take any other action, enter into any agreement, amend its constitution or enact any ordinance, law, rule or regulation that would adversely prejudice or have a material adverse
effect on any of the rights of Lender under the Term Loan Agreement or the other Loan Documents; 

        (v)
assert that any waiver of the Nation or the Corporations, any choice of judicial forum, designation of governing law or any remedy expressly authorized in the Term Loan Agreement or
in any other Loan Document is void or unenforceable. 

        (k)
The Nation will not cause the Borrower to (A) exercise its right to purchase the interest of the State, as subtenant in the Sublease, pursuant to Section 22.01 of the
Sublease, (B) exercise its right to purchase the interest of the State, as sublandlord in the Sub-Sublease, pursuant to Section 22.01 of the Sub-Sublease,
(C) pay the State the amount of the "Supplemental Rent" due under the Sub-Sublease or (D) cause any event or circumstance that merges the Borrower's interests and the
interests of the State under either or both of the Sublease or the Sub-Sublease, without Lender's prior written consent, to be granted or withheld in its sole discretion. 

        SECTION
5.    LIMITED RECOURSE    

        5.1.    Limited Recourse.    In no event or circumstance shall any breach of this Agreement be enforceable against or
become or remain a lien on any Property of the Nation. The sole and exclusive remedies available for any breach of this Agreement shall be as set forth in Sections 5.2 and 5.3 below. 

        5.2.    Injunctive Relief Only.    Subject to the terms set forth in Section 5.3 herein and unless any of the
matters described in clauses (a) through (g) below shall occur, the sole and exclusive remedy for any breach of this Agreement shall be injunctive relief and, except as set forth in
Section 5.3, in no event shall any monetary damages be awarded for any breach hereunder. If any of the events set forth in the clauses (a) through (g) below occurs, (i) any
funds transferred by the Borrower to the Nation or 

8

 

any
Affiliate thereafter shall be deemed not to be a Permitted Transfer and (ii) the Nation shall be required to transfer, or cause its Affiliate to transfer, any and all such funds to the
Borrower: 

        (a)
Nation shall willfully breach its covenants and agreement contained in this Agreement; 

        (b)
Nation shall raise, in connection with any suit, action or proceeding in any forum in respect of this Agreement and/or the other Loan Documents or any of the agreements or
transactions contemplated hereby or thereby, any defense, objection or claim based on (i) sovereign immunity of the Nation, (ii) lack of jurisdiction over Nation, the Project or the
subject matter, other than any defense based on failure to serve process in accordance with the provisions hereof (unless process is actually served in accordance with applicable Legal Requirements),
(iii) the Nation's lack of capacity to be sued, (iv) any argument that any of the courts specified in Section 7.5 is an inappropriate or inconvenient forum, (v) failure to
exhaust tribal remedies, (vi) any argument that the law of the State of New York does not govern (including the Uniform Commercial Code of New York), (vii) any argument that this
Agreement (or any portion thereof) of the other Loan Documents constitutes a management agreement within the meaning of IGRA, deprives Borrower of the sole proprietary interest and responsibility for
the conduct of any gaming activity within the meaning of IGRA or otherwise violates the provisions of IGRA, or (viii) the illegality, the invalidity, non-binding nature or
unenforceability of this
Agreement or any of the other Loan Documents on the basis of any Legal Requirements specifically related to Indians or Indian tribes, or specifically to Borrower because of its status as an
instrumentality of an Indian Tribe, 

        (c)
Nation shall revoke the Ordinance or modify, amend or supplement the Ordinance in a manner which materially impairs the ability of Borrower to operate the Project as a
Class III casino gaming facility and hotel facility with adequate support facilities, as contemplated hereby, or the profitability of Borrower or the Project, 

        (d)
Nation shall cause Borrower to cease to operate the Project as a Class III casino gaming facility as contemplated in the Loan Agreement, except to the extent that following an
Event of Default Lender does not permit Borrower to continue such operations on the Leased Property without conditions other than those imposed under the Loan Agreement, except for customary
restoration periods in connection with Significant Casualties or condemnation and force majeure events; 

        (e)
Nation shall condemn or take by power of eminent domain or like power all or any portion of the Leased Property or the Project, 

        (f)
Nation shall fraudulently misappropriate the funds of the Borrower, or 

        (g)
Nation shall assert, in connection with any suit, action or proceeding in any forum in respect of this Agreement, the Non-Disturbance and Attornment Agreement (Head
Lease) or any of the agreements or transactions contemplated hereby, the jurisdiction of any of its tribal courts or other forums of Nation. 

        5.3.    Return of Funds Transferred After Breach.    In the event a determination that any transfer of funds to the
Nation or any Affiliate does not constitute a Permitted Transfer, the remedies available shall be either injunctive relief and/or reimbursement of any funds transferred to the Nation or any Affiliate
after the occurrence of such determination. 

        5.4.    No Lien or Encumbrance on Nation Assets or Property.    In no event, except for the Leasehold Mortgages held
by the Lender on the Leased Property, shall any term or provision herein be interpreted or construed to directly encumber any property or assets of the Nation. 

        5.5.    No Money Damages.    Under no circumstances whatsoever shall the Nation be liable for any money damages of any
kind and the only monetary obligation for which the Nation may be liable under this Agreement is the return, pursuant to Section 5.2 and 5.3, of funds transferred to the Nation or any Affiliate
by the Borrower. 

9

   
        SECTION 6.    MISCELLANEOUS.    

        6.1.    Relationship with the Lender    

        (a)
The Lender shall under no circumstance be deemed to be in a relationship of confidence or trust or a fiduciary relationship with the Nation or any of its Affiliates, or to owe any
fiduciary duty to the Nation or its Affiliates. The Lender does not undertake or assume any responsibility or duty to the Nation or its Affiliates to select, review, inspect, supervise, pass judgment
upon or inform the Nation or its Affiliates of any matter in connection with their Property or the operations of the Nation or its Affiliates. The Nation and its Affiliates shall rely entirely upon
their own judgment with respect to such matters; and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by the Lender in connection with such
matters is solely for the protection of the Lender and neither the Nation nor any other Person is entitled to rely thereon. 

        (b)
The Lender shall not be responsible or liable to any Person for any loss, damage, liability or claim of any kind relating to injury or death to Persons or damage to Property or other
loss, damage, liability or claim caused by the actions, inaction or negligence of the Nation and its Affiliates. 

        (c)
This Agreement is made for the purpose of defining and setting forth certain obligations, rights and duties of the Nation and the Lender in connection with the Loan, and is made for
the sole benefit of the Nation, the Lender, and the Lender's successors and assigns. No other Person shall have any rights of any nature hereunder or by reason hereof. 

        6.2.    Captions; References.    Section headings and the Table of Contents are for convenience only and shall not be
construed as a part of this Agreement. All references herein to numbered Articles and Sections, unless otherwise indicated, are to Articles and Sections of this Agreement. 

        6.3.    Counterparts.    This Agreement may be executed by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be an original for all purposes, but all such counterparts shall together constitute but one and the same instrument. 

        6.4.    Severability.    If any term or provision hereof or the application thereof to any circumstance shall, in any
jurisdiction and to any extent, be invalid or unenforceable, such term or such provision shall be ineffective as to such jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable any remaining terms and provisions hereof or the application of such term or provision to circumstances other than those as to which it is held invalid or
unenforceable. To the extent permitted by applicable law, the parties hereto hereby waive any provision of law which renders any term or provision hereof invalid or unenforceable in any respect. 

        6.5.    Notices.    Any notice required or permitted to be given under this Agreement, to be effective, shall be in
writing (including by facsimile), and shall be deemed to have been duly given or made (a) when delivered by hand or by internationally recognized overnight courier, (b) upon receipt
after being deposited in the mail, certified mail and postage prepaid or (c) in the case of notice by fax, when sent and electronically confirmed, addressed as set forth below, with a copy of
such notice sent by any other means provided in clauses (a) and (b) above. 

	(a)
	If
to Lender, at:

	

	Freemantle
Limited

C/o Kien Huat Realty Sdn. Bhd.

22nd Floor—Wisma Genting

Jalan Sultan Ismail

Kuala Lumpur, Malaysia 50250

Facsimile No. (011 60 3) 2162 4951

Attention: E.S. Teo 

10

 

	

	with
a copy to:

	

	Cleary,
Gottlieb, Steen & Hamilton

One Liberty Plaza

New York, New York 10006

Facsimile No. (212) 225 3999

Attention: Steven G. Horowitz, Esq.

	(b)
	If
to the Nation, at:

	

	Seneca
Nation of Indians

William Seneca Administration Building,

1490 Route 438,

Cattaraugus Reservation,

Irving, New York 14081

Facsimile No. (716) 532 6272

Attention: Ricky Armstrong, President

	

	with
a copy to:

	

	Akin,
Gump, Strauss, Hauer & Feld, L.L.P.

Robert S. Strauss Building

1333 New Hampshire Avenue, N.W.

Suite 400

Washington, D.C. 20036-1564

Facsimile No. (202) 887 4288

Attention: Donald R. Pongrace and Barry Brandon 

        (c)
If to any of the foregoing parties, at such other address as such party shall from time to time designate in writing to the other parties hereto. 

        (d)
In the event any notice shall be given by facsimile, the party giving such notice shall confirm such notice by a writing delivered by hand or international courier (specifying the
fastest delivery method available); provided, however, that for all purposes hereunder notice shall be deemed effective at the time given by facsimile. 

        6.6.    Compliance with 25 U.S.C. § 81.    In compliance with 25 U.S.C. § 81, the residence
and occupation of the parties in interest are stated as follows: 

	 	(a)	Party in interest:	 	Seneca Nation of Indians
	 	 	Residence:	 	Niagara Falls, New York
	 	 	Occupation:	 	A federally recognized Indian Tribe and Native American sovereign nation
	

 	

 	

Party in interest:	
 	

Freemantle Limited
	 	 	Residence:	 	Isle of Man
	 	 	Occupation:	 	Business Corporation
	

 	

(b)	

Scope of Authority:	
 	

 

        The
President of the Nation is authorized to execute this Agreement by resolution of the Tribal Council of the Seneca Nation of Indians, said resolution adopted by such Council on
November 16, 2002. The President exercises his authority in this instance because he believes that the Agreement is in the best interests of the Nation and Borrower. 

        (c)
This Agreement was executed on or about 1:00 p.m. on the 22nd day of November, 2002, for the particular purposes set forth above. 

11

 

        (d)
This Agreement shall expire on the Maturity Date or, if later, the full repayment of the Loan and all other amounts due hereunder. 

        (e)
The Nation agrees that this Agreement is in compliance with 25 U.S.C. § 81. 

        SECTION
7.    RESOLUTION OF DISPUTES.    

        7.1.    Direct Negotiation.    The parties encourage the prompt and equitable settlement of all controversies or
claims (a "Dispute") between the parties including those arising out of this Agreement. At any time, any party may give the other party written notice
that it desires to settle a Dispute. Within ten (10) days of delivery of such notice, each party agrees to cause an officer having authority to resolve such Dispute (a
"Senior Representative"), to meet (either by telephone or in person in New York, New York) with the other Senior Representative and attempt to resolve
the differences causing the Dispute. If the Dispute is not settled within one (1) week of such Senior Representatives' meeting (whether by telephone or in person), then, the parties agree to
submit the Dispute to mediation in accordance with Section 7.2 below. The period from the date of the delivery of notice of dispute under this section through the termination of the meeting
between the Senior Representatives is referred to as the "Negotiation Period". 

        7.2.    Mediation.    If the Dispute is not resolved during the Negotiation Period, the parties agree to submit the
Dispute to a single mediator for seven (7) days mediation under the American Arbitration Association ("AAA") Mediation Rules. Such mediator will be selected from the AAA panel of mediators by
mutual agreement of the Nation and the Lender. If the parties are unable to agree on a mediator, the parties may submit the selection of such mediator to the Western District of New York (or such
other court as mutually agreed) for the selection of same on behalf of the parties. Unless otherwise agreed, the mediation proceedings shall be conducted by telephone or in person in New York, New
York, and the parties shall bear their respective costs incurred in connection with the mediation, except that the parties, subject to the mediation, shall equally bear the costs for the mediator and
any expenses related to the mediation. Such mediation shall occur no later than the twentieth (20th) day following the date on which one party makes a demand for mediation on the other
party. The mediation will be terminated upon the first to occur of the following: (A) execution of a settlement agreement resolving the Dispute; or (B) a written declaration of a party
or parties, after completion of two (2) days of mediation sessions, that mediation proceedings are terminated. The mediation shall be conducted in English. All negotiations conducted in
accordance with this provision shall be treated as confidential information in accordance with the terms of this Agreement and shall also be treated as compromise and settlement negotiations. 

        7.3.    Arbitration.    

        (a)
Any controversy or claim arising out of or related to this Agreement (including without limitation any dispute relating to its validity or termination, or the performance or breach
thereof) which remains unresolved for longer than ten (10) Banking Days after completion or termination of the above referenced mediation period shall be finally settled by binding arbitration
by a panel of arbitrators in accordance with the AAA Commercial Arbitration Rules ("AAA Rules") in effect at the time of the arbitration, except as modified in this Section 7 or as subsequently
agreed by the parties hereto. 

        (b)
The arbitration shall be conducted by three arbitrators. All of the arbitrators shall have appropriate experience in the Class III gaming industry. The Nation shall appoint
one (1) arbitrator and the Lender shall appoint one (1) arbitrator (each, a "Party Appointed Arbitrator"); each party shall obtain its
appointee's acceptance of such appointment, and deliver written notification of such appointment and acceptance to the other parties within thirty (30) days after delivery of the Request for
Arbitration. In the event a party fails to appoint an arbitrator or deliver notification of such appointment to the other party within this time period, as aforesaid, upon request of either party,
such 

12

 

arbitrator
shall instead be appointed by the AAA within thirty days of receiving such request. The two Party Appointed Arbitrators appointed in accordance with the above provisions shall appoint the
third arbitrator, and such appointment shall be subject to the parties' approval and consent. In no event shall the third arbitrator be a Native American or of Malaysian nationality. Upon such
consent, the Party Appointed Arbitrators shall obtain the appointee's acceptance of such appointment and notify the parties in writing of such appointment and acceptance within thirty days of their
appointment. If the Party Appointed Arbitrators fail to appoint or cannot agree on, or either of the parties does not consent to, the third arbitrator within fifteen (15) days, then, upon
request of either party, the third arbitrator shall be selected in accordance with the AAA Rules within thirty days of receiving such request. The third arbitrator shall serve as Chairman of the
arbitration panel. 

        (c)
The arbitration proceedings shall be conducted in New York, NY, unless otherwise agreed by the parties. The arbitration proceedings shall be conducted in English. 

        (d)
The parties intend that the arbitration panel shall, barring extraordinary circumstances, resolve any and all disputes submitted for arbitration within thirty (30) days of its
appointment. The arbitration panel may extend this time period in its discretion if it determines that the interest of justice so requires. In addition to any discovery permitted under AAA Rules, each
party shall produce relevant, non-privileged documents or copies thereof requested by the other party within time limits set by the arbitrators. The arbitrators shall have authority to
exclude evidence they deem to be irrelevant. The parties agree to supply to the arbitration panel such documentary evidence as they wish to rely upon together with a written statement of their
position not to exceed twenty (20) pages in length within twenty (20) days of appointment of the arbitration panel. 

        (e)
Unless the parties agree to rely on affidavits, the arbitration panel shall set a hearing at which each party shall present witnesses and cross examine the witnesses for the other
party. If there is a hearing, each party shall provide a statement summarizing the testimony of each witness it may have testify to the other party and to the arbitration panel at least fifteen
(15) days in advance of the hearing. 

        (f)
Judgment upon any award rendered by the arbitration panel may be entered in the U.S. Federal District Court for the Western District of New York or, if such court denies
jurisdiction, in any court of the State of New York. Failure of the arbitration panel to observe any time periods set forth in this Section 7 shall not be a basis for challenging the arbitral
award. 

        (g)
The arbitration panel's award shall be in writing, not to exceed twenty (20) pages and shall be a reasoned award. Without limiting the authority of the arbitration panel
hereunder, it shall have the authority to award specific performance. The award shall be final and binding on the parties without right of appeal. 

        (h)
The parties waive to the fullest extent permitted by law any rights to appeal to, or to seek review of such arbitral award by, any court. 

        (i)
The parties shall bear their respective costs incurred in connection with the arbitration and shall equally bear the costs and fees of the American Arbitration Association, the
arbitrators and any other costs related to the arbitration. 

        7.4.    Confidentiality.    All mediation or arbitration proceedings under this Section 7 shall be treated as
confidential information. 

        7.5.    Equitable Relief.    The parties expressly agree that nothing herein shall preclude either party from taking
whatever actions are necessary to prevent immediate and irreparable harm to its interests. The parties further agree that either party may file a complaint for statute of limitations or venue
reasons to enforce any preliminary or injunctive relief ordered by the arbitration panel, if in its sole judgment such action is necessary. Notwithstanding the foregoing, the parties will continue to 

13

 

participate
in the arbitration process in good faith. By agreeing to arbitration, the parties do not intend to deprive any court with jurisdiction of its ability to issue a preliminary injunction,
attachment or other form of provisional remedy in aid of the arbitration and a request for such provisional remedies by a party to a court shall not be deemed a waiver of this agreement to arbitrate.
In addition to the authority conferred upon the tribunal by the rules specified above, the tribunal shall also have the authority to grant provisional remedies, including injunctive relief. 

        7.6.    Personal Jurisdiction; Service of Process.    Each party (A) irrevocably consents to the
non-exclusive personal jurisdiction and venue of the U.S. Federal District Court for the Western District of New York or, if such court denies jurisdiction, in any court of the State of
New York hereof for the exclusive, sole and limited purposes of compelling a party to submit to the provisions of this Section 7 and enforcing any relief or award which may be ordered by the
arbitrator, (B) hereby waives any claim it may have that such court is an inconvenient forum, and (C) hereby agrees that all claims in respect of any such limited purpose may be heard or
determined in any such court. 

        (a)
The parties hereby appoint as their exclusive agents for service of legal process in relation to any matter arising out of or in connection with this Agreement and any other
documents executed in connection therewith the persons identified for notice purposes on Exhibit 7.5 hereto. 

        (b)
The parties agree that personal service upon any of the agents designated above at their addresses (including the addresses of the parties' respective attorneys) shall constitute
effective and proper personal legal service and expressly waive any and all rights that exist or may exist in the future to require personal service of legal process in another manner or location,
including, without limitation, any and all requirements for personal service under the Federal Rules of Civil Procedure and any other like or similar rules or conventions. 

        7.7.    Waiver of Immunity and Consent to Suit.    The Nation hereby irrevocably and unconditionally waives its
sovereign immunity (and any defense based thereon) from any suit action or proceeding or from any legal process (whether through service of notice, attachment prior to the judgment, attachment in aid
of execution, execution, exercise of contempt powers or otherwise) in the forum indicated in Section 7.5 above, for the exclusive, sole and limited purposes of compelling a party to submit to
the provisions of this Section 7 and enforcing any relief or award which may be ordered by the arbitrator. With respect to such purposes, Lender shall have available the remedies set forth in
Section 5 hereof. 

        7.8.    Survival of this Section.    The arbitration provisions of this Section 7 shall survive any termination
or expiration of this Agreement. 

14

 

        IN
WITNESS WHEREOF, the Nation and Lender have each caused this Agreement to be duly executed as of the date and year first above written. 

	 	 	THE SENECA NATION OF INDIANS, AS NATION:
	

 	
 	

By:	

/s/  CYRUS SCHIDLER      
 Printed Name: Cyrus Schidler

Title: Chairman, Seneca Niagara Falls

Gaming Corporation
	

 	
 	

FREEMANTLE LIMITED, AS LENDER:
	

 	
 	

By:	

/s/  TAN SRI LIM KOK THAY      
 Printed Name: Tan Sri Lim Kok Thay

Title:

15

   EXHIBIT 2.1  

Form of Guaranty  

Buffalo,
New York 

GUARANTY  

        FOR VALUE RECEIVED, and to induce Freemantle Limited ("Lender"), to enter into the Term Loan Agreement, dated
November 22, 2002 (the "Loan Agreement"), by and between The Seneca Niagara Gaming Corporation
("Borrower"), a tribally chartered corporation formed by the Seneca Nation of Indians, a federally recognized Indian Tribe and Native American sovereign
nation (the "Nation"), and Lender, the Guarantor (as defined below) has agreed to enter into this Guaranty (the "Guaranty"). Capitalized terms used but
not defined herein shall have the respective meanings provided in the Loan Agreement. 

        The
undersigned, [The Seneca Buffalo Gaming Corporation], a tribally chartered corporation formed by the Nation, having an address
[                        ], Attention:
[                        ] (the "Guarantor"), hereby absolutely and unconditionally
guarantees to Lender the prompt payment in full of the Guaranteed Obligations (as defined below) when due in strict accordance with the Loan Agreement, subject, however, to the limitations on amounts
set forth in the following paragraph. 

        "Guaranteed
Obligations" means payment and performance of all of the Borrower's obligations under the Loan Agreement and the other Loan Documents[; provided, however, that
the aggregate liability of the Guarantor hereunder shall be limited to $            ]. 

        It
is expressly understood and agreed that this is a continuing guaranty and that the obligations of Guarantor hereunder are and shall be absolute and unconditional under any and all
circumstances, without regard to the value, genuineness, validity, regularity or enforceability of the Loan Agreement, or the other Loan Documents or any order or regulation now or hereafter in effect
in any jurisdiction affecting the same or the rights of the Lender with respect thereto, a true copy of each of said documents Guarantor hereby acknowledges having received and reviewed. 

        The
Principal Indebtedness of Guarantor incurred in connection with the acquisition, development, construction and operation of any Additional Gaming Site, now or hereafter existing, or
any Indebtedness of Guarantor to Borrower or any Affiliate now or hereafter existing, together with any interest thereon, shall be, and such indebtedness is, hereby subordinated to the prior payment
in full of the Guaranteed Obligations. The Guarantor shall cause the holders of such Principal Indebtedness to enter into customary subordination agreements (including turn-over
provisions) upon such terms as are reasonably acceptable to the Lender; provided that (i) to the extent that such other Principal Indebtedness is unsecured, this Guaranty shall also be
unsecured; (ii) to the extent such other Principal Indebtedness is secured by any collateral, Guarantor shall grant a senior security interest in such collateral to Lender, and shall grant a
subordinate security interest in such collateral to the holders of such other Principal Indebtedness; and (iii) during such fiscal periods as Borrower's annual EBITDA shall equal at least One
Hundred Million Dollars ($100,000,000), such other Principal Indebtedness will rank pari passu with this Guaranty. For purposes hereof, "Principal
Indebtedness" shall mean the item or items of Indebtedness incurred by the Nation or such Affiliate in connection with the construction and operation of such gaming facility that constitute the
principal financing for such construction and operation. Without limiting the foregoing, Principal Indebtedness shall exclude Indebtedness consisting of vendor or other purchase money equipment
financing. 

        Until
payment in full of all obligations under the Loan (and including interest accruing thereunder after the commencement of a proceeding by or against Borrower under the Bankruptcy
Reform Act of 1978, as amended, 11 U.S.C. Sections 101 et seq., and the regulations adopted and promulgated pursuant thereto (collectively, the
"Bankruptcy Code") which interest the parties agree shall remain a claim that is prior and superior to any claim of Guarantor against Borrower notwithstanding any 

16

 

contrary
practice, custom or ruling in cases under the Bankruptcy Code generally), Guarantor agrees not to accept any payment or satisfaction of any kind of indebtedness of Borrower to Guarantor and
hereby assigns such indebtedness to Lender, including the right to file proof of claim and to vote thereon in connection with any such proceeding under the Bankruptcy Code, including the right to vote
on any plan of reorganization. 

        Guarantor
agrees that all reasonable expenses (including reasonable counsel fees) incurred by Lender in connection with the collection of the Guaranteed Obligations or any portion
thereof from Guarantor or with the enforcement of this Guaranty shall be a part of the Guaranteed Obligations. 

        After
an Event of Default, all moneys available to Lender for application in payment or reduction of the Guaranteed Obligations may be applied by Lender in such manner and in such
amounts and at such time or times and in such order and priority as Lender may see fit to the payment or reduction of such portion of the Guaranteed Obligations as Lender may elect. 

        Guarantor
hereby waives notice of the acceptance hereof, presentment, demand for payment, protest, notice of protest, or any and all notices of non-payment,
non-performance or non-observance, or other proof or notice or demand. 

        Guarantor
further agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be reduced, limited, terminated, affected or impaired, or in any
way subject to any defense, offset, counterclaim or recoupment (and Guarantor hereby expressly waives any right to claim any of the foregoing), (a) by reason of the assertion by Lender of any
rights or remedies which it may have under or with respect to the Loan Agreement or the other Loan Documents, or (b) by reason of any failure to file or record any of such instruments or to
take or perfect any security intended to be provided thereby, or (c) by reason of any increase in, addition to, release or exchange of, or non-perfection of any lien on or security
interest in, any property covered by the Loan Agreement or other Collateral for the Guaranteed Obligations, or (d) by reason of any claim of any character whatsoever, including without
limitation, any claim of waiver, surrender, alteration or compromise, or (e) by reason of Lender's failure to give notice with respect to, exercise, or delay in exercising, any right or remedy
Lender may have hereunder, in respect of this Guaranty or with respect to the Guaranteed Obligations of Borrower, or (f) by reason of the commencement of a case under the Bankruptcy Code by or
against Borrower or any other person obligated under the Loan Agreement or the other Loan Documents, or (g) by reason of any liability at any time to Guarantor or otherwise, whether based upon
any Guaranteed Obligations or any other agreement or otherwise, and howsoever arising, whether out of action or inaction or otherwise and whether resulting from default, willful misconduct, negligence
or otherwise, or (h) by reason of (1) any lack of validity or enforceability of the Loan Agreement, the other Loan Documents or any agreement or instrument relating thereto,
(2) any change in the time, manner or place of payment of, or in any other term in respect of, all or any obligations, or any other amendment or waiver of or consent to any departure from the
Loan Agreement, the other Loan Documents or any other agreement relating to any Guaranteed Obligations, (3) any release or amendment or waiver of or consent to any departure from or failure to
enforce any other guarantee, for all or any of the issuance, or (4) any circumstances which might constitute a defense available to, or a discharge of Guarantor in respect hereof, except for
the defense that Borrower has paid and performed all of the Guaranteed Obligations in full or (i) by reason of any payment made on the Guaranteed Obligations or any other indebtedness arising
under the Loan Agreement or the other Loan Documents, whether made by Borrower or Guarantor or any other person, which is required to be refunded or which is subsequently invalidated, set aside,
declared to be fraudulent or preferential and/or required to be repaid pursuant to any bankruptcy or insolvency law or under any federal law, common law or equitable cause; it being understood that no
payment so refunded, invalidated, set aside, declared to be fraudulent or preferential and/or required to be repaid shall be considered as a payment of any portion of the Guaranteed Obligations, nor
shall it have the effect of reducing the liability of Guarantor hereunder. 

17

 

        It
is further understood, that if Borrower shall have taken advantage of, or be subject to the protection of, any provision in the Bankruptcy Code, the effect of which is to prevent or
delay Lender from taking any remedial action against Borrower, including the exercise of any option Lender has to declare the Guaranteed Obligations due and payable on the happening of any default or
event by which under the terms of the Loan Agreement or the other Loan Documents, the Guaranteed Obligations shall become due and payable, Lender may, as against Guarantor, nevertheless, declare the
Guaranteed Obligations due and payable and enforce any or all of its rights and remedies against Guarantor provided for herein. 

        The
Guarantor further waives each of the following: 

        (a)
Until payment in full of the Guaranteed Obligations, any rights (whether direct or indirect and regardless of when acquired) of Guarantor of subrogation, reimbursement,
indemnification, and/or contribution or other rights of payment or recovery against Borrower; and 

        (b)
Any rights or defenses that may be available by reason of any election of remedies by Guarantor (including, without limitation, any such election which in any manner impairs,
effects, reduces, releases, destroys or extinguishes Guarantor's subrogation rights, rights to proceed against Borrower for reimbursement, or any other rights of Guarantor to proceed against any other
person, entity or security). 

        The
provisions of this paragraph mean, among other things that Lender may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by Borrower
for the Obligations. 

        Guarantor
further covenants that this Guaranty shall remain and continue in full force and effect as to any modification, extension or renewal of the Loan Agreement or any of the other
Loan Documents, that Lender shall not be under a duty to protect, secure, perfect or insure any security or lien provided by the Loan Agreement, any of the other Loan Documents or any property subject
thereto or other such collateral or to take any action against any person or any collateral (including any duties relating to the marshalling of assets), and that other indulgences or forbearance may
be granted under any or all of such documents, all of which may be made, done or suffered without notice to, or further consent of, Guarantor. 

        As
a further inducement to Lender to enter into the Loan Agreement and in consideration thereof, Guarantor further covenants and agrees that: 

        (a)
Waiver of Immunity and Consent to Suit. Guarantor hereby irrevocably and unconditionally waives its sovereign immunity (and any
defense based thereon) from any suit, action or proceeding or from any
legal process (whether through service of notice, attachment prior to the judgment, attachment in aid of execution, execution, exercise of contempt powers or otherwise) in any forum with respect to
this Guaranty or any of the agreements or transactions contemplated hereby and Guarantor shall with respect hereto have all available legal and equitable remedies, including, without limitation, the
right of Lender to specific performance, money damages and/or injunctive and declaratory relief and Guarantor expressly consents to the exercise of jurisdiction over such action and over Guarantor by
the courts of the State of New York, and the courts of any other state or of the United States which may have jurisdiction over the subject matter. 

        (b)
Personal Jurisdiction and Service of Process. Guarantor hereby irrevocably consents to personal jurisdiction and venue in any court of
the State of New York or any federal court sitting in the State of New York, and hereby waives any claim it may have that such court is an inconvenient forum for the purposes of any suit, action or
other proceeding arising out of this Guaranty or any of the agreements or transactions contemplated hereby, which is brought by Lender against Guarantor or by Guarantor against Lender, as the case may
be, and hereby agrees that all claims in respect of any such suit, action or proceeding may be heard or determined in any such court; and Guarantor further consents to the 

18

 

service
of process of any of the aforementioned courts in any such suit, action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to Guarantor at its
address (including the addresses of its attorney) set forth in the recitals hereto, such service to become effective ten days after such mailing. 

        (c)
Jurisdiction and Governing Law. Except as otherwise provided by applicable federal law, this Guaranty shall be governed by the law of
the State of New York. The courts of the State of New York, and (to the extent jurisdiction over the subject matter is vested in them by the laws of the United States) any federal court sitting in the
State of New York, may exercise jurisdiction over any action, suit or proceeding arising with respect to enforcement, construction, termination or modification of this Guaranty. Guarantor is expressly
and irrevocably prohibited from exercising the jurisdiction of any of the Nation's tribal courts (whether now or hereafter existing) or other forums (whether now or hereafter existing) of the Nation
over any such suit, action or proceeding and Guarantor hereby waives any claim or right which Guarantor may possess to the exercise of such jurisdiction and any requirement that tribal remedies be
exhausted is hereby waived. 

        (d)
Compliance with 25 U.S.C. Section 81. In compliance with 25 U.S.C. § 81, the residence and occupation of the
parties in interest are stated as follows: 

	 	 	(i)	Party in interest:	 	[Seneca Buffalo Gaming Corporation]
	 	 	 	Residence:	 	Buffalo, New York
	 	 	 	Occupation:	 	a tribally chartered corporation formed by a federally-recognized Indian tribe
	

 	
 	

 	

Party in interest	
 	

Freemantle Limited
	 	 	 	Residence:	 	The Isle of Man
	 	 	 	Occupation:	 	Business Corporation

        (ii)
Scope of Authority: 

        The
Chairman of Guarantor is authorized to execute this Guaranty by resolution of the Board of Directors of the [Seneca Buffalo Gaming Corporation], said
resolution adopted by such Board on [                        ]. The Chairman exercises his authority in this instance because he
believes that the Guaranty is in the best interests of
Guarantor. 

        (iii)
This Guaranty was executed on or about 1:00 p.m. on the [    ] day of [                        ], for the
particular
purposes set forth above. 

        (iv)
This Guaranty shall expire on or before the later of the Maturity Date or the full repayment of the Loan and all other amounts due hereunder. 

        (v)
Guarantor agrees that this Guaranty is in compliance with 21 U.S.C. § 81. 

        (e)
Waiver of Trial by Jury. GUARANTOR HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
ARISING UNDER THIS GUARANTY OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE RIGHTS OF ANY PARTY HEREUNDER, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR
TORT OR OTHERWISE; AND GUARANTOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY WITH RIGHTS UNDER
THIS GUARANTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF GUARANTOR TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

19

 

        (f)  Effect of Waivers and Consents. The waivers and consents described in this Guaranty shall inure to the benefit of the lender and each
other person who is entitled to the benefits of the Loan Agreement or the other Loan Documents (including without limitation the indemnified persons thereunder). The Lender and such other persons
shall have and be entitled to all available legal and equitable remedies, including the right to specific performance, money damages and injunctive or declaratory relief. The waivers of sovereign
immunity and consents to jurisdiction contained in this Guaranty are irrevocable. 

        This
is a guaranty of payment and performance and not of collection of the Guaranteed Obligations and Lender may, at its option, proceed directly and at once, without notice, against
Guarantor to enforce the performance of Guarantor's obligations hereunder and/or to collect and recover the full amount of the liability hereunder or any portion thereof, as applicable, without
proceeding against Borrower or any other person, or foreclosing upon, selling, or otherwise disposing of or collecting or applying against any of the Collateral. Guarantor hereby waives the pleading
of any statute of limitations as a defense to the obligation hereunder. 

        Each
reference herein to Lender shall be deemed to include its successors and assigns, to whose favor the provisions of this Guaranty shall also inure. Each reference herein to Guarantor
or Borrower shall be deemed to include the legal representatives, successors and assigns of Guarantor or Borrower, as applicable, all of whom shall be bound by the provisions of this Guaranty. 

        If
Guarantor shall be a partnership, the agreements and obligations on the part of Guarantor herein contained shall remain in force and application notwithstanding any changes in the
individuals and/or entities composing the partnership and the term "Guarantor" shall include any altered or successive partnerships but the predecessor partnerships and their partners shall not
thereby be released from any obligations or liability hereunder. 

        Guarantor
(and its representatives executing below, if any) have full power, authority and legal right to execute this Guaranty and to perform all its obligations under this Guaranty. 

        All
understandings, representations and agreements heretofore had with respect to this Guaranty are merged into this Guaranty, which alone fully and completely expresses the agreement of
Guarantor and Lender. 

        Guarantor
hereby makes the following representations and warranties as to itself and with respect to the execution, delivery, and performance of this Guaranty, as of the date hereof: 

        (a)
The Guarantor is a tribally chartered corporation formed by the Seneca Nation of Indians, a federally recognized Indian Tribe and Native American sovereign nation (the "Nation"). 

        (b)
Guarantor has full power, authority and legal right to execute, deliver and perform this Guaranty, and has taken all necessary corporate and other action to authorize the execution,
delivery and performance by Guarantor of this Guaranty. The Guaranty has been duly executed and delivered by a duly authorized officer of Guarantor, and this Guaranty constitutes valid, legal and
binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, subject, as to enforcement, to the availability of equitable remedies and limitations imposed by
bankruptcy, insolvency, reorganization and other similar laws and related court decisions relating to or affecting creditors' rights generally. 

        (c)
The execution, delivery and performance by Guarantor of this Guaranty and the enforcement by Lender of such Guaranty will not result in the creation or imposition of any lien, charge
or encumbrance other than the lien in favor of Lender created pursuant to this Guaranty pursuant to the terms of, or conflict with or result in a breach of any of the terms or provisions of, or
constitute a default under, any material indenture, mortgage, deed of trust, loan agreement, lease or other material agreement or instrument to which Guarantor is a party, which breach or default
would have a material 

20

 

adverse
effect on the business, operations, assets or financial or other condition of the Guarantor, as contemplated hereby, or the ability of Guarantor to perform its obligations under this Guaranty,
nor will such actions result in any violation of the provisions of Guarantor's organizational documents or the Nation's Constitution, charter, bylaws or other organizational documents, the Ordinance
or any statute, including, without limitation, IGRA, the Compact, or any order, rule or regulation of any court or governmental or tribal agency or body having jurisdiction over Guarantor, and any
consent, approval, authorization, order, registration or qualification of or with or notice to any court or any such governmental or tribal agency or body required for the execution, delivery and
performance by Guarantor of this Guaranty and the enforcement by Lender of such Guaranty, has been validly obtained and is in full force and effect.. 

        (d)
Guarantor has no knowledge that there is any action or proceeding pending or threatened, before any court, judicial, quasi-judicial or tribal body or administrative agency, against
Guarantor (i) with respect to this Guaranty or the transactions contemplated hereby, or (ii) that would, if determined adversely, have a material adverse effect on the business,
operations, assets or financial or other condition of Guarantor, as contemplated hereby, or the ability of Guarantor to perform its obligations under this Guaranty. All rights to appeal any decision
rendered in any previously concluded action or proceeding of such nature, to the best of Guarantor's knowledge, have expired. 

        (e)
Guarantor is not in material default under any agreement to which it is a party, including, without limitation, agreements for borrowed money, which default could have a material
adverse effect on the business, operations, assets or financial or other condition of Guarantor, as contemplated hereby, or the ability of Guarantor to perform its obligations under this Guaranty. 

        (f)
Guarantor's principal place of business, chief executive office and the place at which its books and records are [    ]. 

        (g)
Guarantor possesses authority to enter into this Guaranty and has complied with all procedural requirements in entering into this Guaranty. 

        (h)
The Board of Directors of the Guarantor has taken all required action, and has duly adopted appropriate resolutions, in order to grant the Guarantor the authority to consent to the
obligations under the Guaranty, including waiver of sovereign immunity and consent to jurisdiction. 

        This
Guaranty may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Lender or Borrower, but only by an
agreement in writing, with respect to which confirmation is received, signed by the party against whom enforcement of such modification, amendment, waiver, extension, change, discharge or termination
is sought, and any such agreement, modification, amendment, waiver, extension, change, discharge or termination shall be effective only in the specific instance and for the specific purpose for which
such agreement is given. 

[NO FURTHER TEXT ON THIS PAGE]

21

 

        IN
WITNESS WHEREOF, Guarantor has duly executed this Guaranty as of the date first above set forth. 

	 	 	[SENECA BUFFALO GAMING CORPORATION]
	

 	
 	

By:	

 Name:

Title:

22

EXHIBIT 7.5  

Agents For Service of Legal Process  

	(a)
	If
to Lender, at:

	

	Freemantle
Limited

c/o Kien Huat Realty Sdn. Bhd.

22nd Floor—Wisma Genting

Jalan Sultan Ismail

Kuala Lumpur, Malaysia 50250

Facsimile No. (011 60 3) 2162 4951

Attention: E.S. Teo

	

	with
a copy to:

Cleary, Gottlieb, Steen & Hamilton

One Liberty Plaza

New York, New York 10006

Facsimile No. (212) 225 3999

Attention: Steven G. Horowitz, Esq.

	(b)
	If
to Nation, at:

	

	Seneca
Nation of Indians

William Seneca Administration Building,

1490 Route 438,

Cattaraugus Reservation,

Irving, New York 14081

Facsimile No. (716) 532 6272

Attention: Ricky Armstrong

	

	with
a copy to:

Akin, Gump, Strauss, Hauer & Feld, L.L.P.

Robert S. Strauss Building

1333 New Hampshire Avenue, N.W.

Suite 400

Washington, D.C. 20036-1564

Facsimile No. (202) 887 4288

Attention: Donald R. Pongrace and Barry Brandon 

QuickLinks

TABLE OF CONTENTS

NATION AGREEMENTQuickLinks
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Exhibit 10.4  

FIRST
AMENDMENT TO AGREEMENT OF LEASE 

("Amendment to Lease") 

BETWEEN 

SENECA NATION OF INDIANS  

as Landlord 

and

SENECA NIAGARA FALLS GAMING CORPORATION  

as Tenant 

Premises

the
land and improvements formerly known as

the Niagara Falls Convention Center and

Lackey Plaza

Situated in the City of Niagara Falls 

Date:
December 23, 2002 

        FIRST AMENDMENT TO AGREEMENT OF LEASE made as of December    , 2002, ("Amendment to Lease") between the Seneca Nation of
Indians ("Landlord" or the "Nation"), a sovereign Indian nation, having an office at 1490 Route 438,
Irving, New York 14801 and an office with the address of P.O. Box 231, Salamanca, New York 14779, and Seneca Niagara Falls Gaming Corporation, a governmental instrumentality of the Nation
("Tenant" or "SNFGC"), having an office at 310 Fourth Street, Niagara Falls, New York 14303. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, the Nation is the owner of fee title to the land, as more particularly described on Exhibit A annexed to the Head Lease (defined below) (the
"Land") and improvements formerly known as the Niagara Falls Convention Center and Lackey Plaza (the
"Improvements"); 

        WHEREAS,
pursuant to that certain Agreement of Lease, dated October 25, 2002 (the "Head Lease"), the Nation leased the Land and
Improvements (the "Premises") to SNFGC; 

        WHEREAS,
the Landlord, the Tenant and the Tenant's lender entered into that certain Non-Disturbance and Attornment Agreement (Headlease), (the
"NDA"), which NDA effected certain amendments to the Head Lease constituting (among other matters) negotiated remedies as described in CFR 162.612(a);
and 

        WHEREAS,
subject to the foregoing, the parties hereto desire to amend the Head Lease. 

        NOW,
THEREFORE, in consideration of the matters above recited, for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the
parties hereto formally covenant, agree and bind themselves as follows: 

        1.     Section 34.08
of the Head Lease is hereby deleted and replaced in its entirety, as follows: 

        Section 34.08    This Lease shall be governed by and construed in accordance with the laws of the Seneca Nation of
Indians and applicable federal law. 

        2.     Section 34.19
of the Head Lease is hereby deleted and replaced in its entirety, as follows: 

        Section 34.19    Easements.    Landlord will, from time to
time, at the request of Tenant and at Tenant's cost and expense, subject to both (a) the approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed and
(b) the grant of the same by the Secretary (Landlord covenants to make all necessary requests of the Secretary to effectuate the same), (i) grant consent to easements and other rights in
the nature of easements with respect to the Premises to third parties, (ii) grant consent to release existing easements or other rights in the nature of easements which are for the benefit of
the Premises, (iii) execute petitions to have the Premises annexed to any municipal corporation or utility district and (iv) execute and deliver to any person any instrument appropriate
to confirm or effect such grants, releases and petitions (to the extent of its interests in the Premises). 

        3.     The
following provisions are hereby added to Article 34 of the Head Lease as follows: 

        Section 34.20    As used in this Lease, the term "Secretary" means the Secretary of the Interior or his or her duly
authorized representative. This Lease is subject to the approval of the Secretary pursuant to the Act of August 9, 1955, 69 Stat. 539, as amended, 25 U.S.C. § 415, as implemented by
Title 25, Code of Federal Regulations, Part 162. 

        Section 34.21    The parties hereby acknowledge that Annual Rent is subject to periodic review as required in 25 C.F.R.
162.607. The parties hereby agree that the first review shall occur no sooner than the fifth (5th) anniversary of this Lease. The parties hereby agree to consider "the equities involved" in
determining whether a mutually agreed upon adjustment (based upon the criteria set forth in 25 C.F.R. 162.607, including, among other things, the impact upon the interest of outstanding obligations
owed to third party mortgagees), if any, of the amount of Annual Rent will be made and shall submit any such proposed change for the approval of the Secretary. 

 

        Section 34.22    The parties hereby acknowledge that pursuant to 25 C.F.R. 162.604(g)(2), nothing contained in this Lease
shall operate to delay or prevent a termination of Federal trust responsibilities with respect to the Premises by the issuance of a fee patent, the lifting of restrictions on alienation, or otherwise
during the term of the Lease, such termination, however, shall not serve to abrogate the Lease. 

        Section 34.23    The parties hereby acknowledge and agree that while the Premises are in restricted status and pursuant
to 25 C.F.R. 162.604(g)(1), all of the Lessee's obligations under this Lease, and the obligation of its sureties, are to the United States as well as to the Nation as the owner of the land. 

        Section 34.24    Pursuant to 25 C.F.R. 162.610 and with the consent of the Secretary, which consent shall be deemed
granted upon the Secretary's consent to that certain First Amendment to Agreement of Lease, the Landlord authorizes the Tenant to sublease the Premises, in whole or in part, without further approval
of the Secretary. Subleases so made shall not serve to relieve the Tenant from any liability nor diminish any supervisory authority from the Secretary provided for under this approved Lease. The
parties acknowledge that the foregoing notwithstanding, none of the Landlord's rights under Article 7 are amended by this Section 34.24. 

        4.     Except
as expressly modified herein, all other provisions of the Head Lease remain in full force and effect and Landlord and Tenant do hereby ratify all of their
obligations thereunder. Unless otherwise specified in this Amendment to Lease, all terms capitalized herein shall have the same meanings given to them in the Head Lease. 

(remainder of page intentionally left blank)

3

        IN WITNESS WHEREOF, Tenant and Tenant have executed this Amendment to Lease as of the day and year first above-written. 

	

 	

LANDLORD:
	

 	

SENECA NATION OF INDIANS
	

 	

By:	

 
	 	 	

	 	Name:	 
	 	Title:	 
	

 	

TENANT:
	

 	

SENECA NIAGARA FALLS GAMING CORPORATION
	

 	

By:	

 
	 	 	

	 	Name:	 
	 	Title:	 

	STATE OF NEW YORK	)	 	 
	 	) ss:	 	 
	COUNTY OF	)	 	 

On
the            day of                        in the year 2002, before
me, the undersigned personally appeared                        , personally known to me or proved to me on the basis of
satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 

	

 	
 	

 
	
 Signature and Office of individual taking acknowledgment

	 	 

	

STATE OF NEW YORK	

)	
 	

 
	 	) ss:	 	 
	COUNTY OF	)	 	 

On
the            day of                        in the year 2002, before
me, the undersigned personally appeared                        , personally known to me or proved to me on the basis of
satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 

	

 	
 	

 
	
 Signature and Office of individual taking acknowledgment

	 	 

AGREEMENT OF LEASE 

("Head
Lease Agreement") 

BETWEEN

SENECA NATION OF INDIANS  

as Landlord 

and 

SENECA NIAGARA FALLS GAMING CORPORATION  

as Tenant 

Premises

the
improvements formerly known as

the Niagara Falls Convention Center and

Lackey Plaza

Situated in the City of Niagara Falls 

Date:
October 22, 2002 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	PAGE

	ARTICLE 1. PREMISES AND TERM	 	2
	 	Section 1.01	 	Premises.	 	2
	ARTICLE 2. RENT	 	2
	 	Section 2.01	 	Rent Payments.	 	2
	 	Section 2.02	 	Rent Net to Landlord.	 	3
	ARTICLE 3. REPRESENTATIONS AND WARRANTIES	 	3
	 	Section 3.01	 	Representations and Warranties of Tenant.	 	3
	 	Section 3.02	 	Representations and Warranties of Landlord.	 	4
	ARTICLE 4. INSURANCE	 	5
	 	Section 4.01	 	Required Coverages.	 	5
	 	Section 4.02	 	Policy Requirements.	 	5
	 	Section 4.03	 	Blanket Policies.	 	6
	ARTICLE 5. USE OF INSURANCE PROCEEDS	 	7
	ARTICLE 6. CONDEMNATION	 	7
	 	Section 6.01	 	Total Condemnation.	 	7
	 	Section 6.02	 	Award to Landlord.	 	7
	 	Section 6.03	 	Date of Taking.	 	7
	 	Section 6.04	 	Partial Condemnation.	 	8
	ARTICLE 7. ASSIGNMENT, SUBLETTING AND MORTGAGES	 	8
	 	Section 7.01	 	Restrictions on Right of Tenant to Transfer Lease.	 	8
	 	Section 7.02	 	Right of Tenant to Mortgage Lease.	 	8
	 	Section 7.03	 	No Mortgage by Landlord.	 	8
	ARTICLE 8. INTENTIONALLY OMITTED	 	8
	ARTICLE 9. REPAIRS	 	8
	 	Section 9.01	 	Tenant's Repair Obligations.	 	8
	 	Section 9.02	 	No Landlord Services.	 	8
	ARTICLE 10. CHANGES, ALTERATIONS AND ADDITIONS	 	9
	ARTICLE 11. REQUIREMENTS OF PUBLIC AUTHORITIES AND OF INSURANCE UNDERWRITERS AND POLICIES	 	9
	ARTICLE 12. INTENTIONALLY OMITTED	 	9
	ARTICLE 13. DISCHARGE OF LIENS; BONDS	 	9
	 	Section 13.01	 	Discharge of Liens.	 	9
	 	Section 13.02	 	Tenant Indemnity for Liens.	 	10
	ARTICLE 14. LIMITED OBLIGATIONS OF THE PARTIES; INDEMNITY	 	10
	 	Section 14.01	 	Tenant Accepts "As Is".	 	10
	 	Section 14.02	 	No Landlord Representations.	 	10
	 	Section 14.03	 	Section 223-a of the Real Property Law.	 	10
	 	Section 14.04	 	No Individual Liability/Indemnification.	 	10
	 	Section 14.05	 	Tenant Indemnity; Insurance.	 	12
	 	Section 14.06	 	Survival.	 	12
	 	Section 14.07	 	No Consequential Damages.	 	12
	ARTICLE 15. LANDLORD NOT LIABLE FOR INJURY OR DAMAGE, ETC.	 	12
	ARTICLE 16. INTENTIONALLY OMITTED	 	12
	ARTICLE 17. RIGHT OF INSPECTION	 	12
	 	Section 17.01	 	Landlord Access to Premises.	 	12
	 	Section 17.02	 	No Landlord Obligation to Repair.	 	12
	ARTICLE 18. LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS	 	13
	ARTICLE 19. PERMITTED USE; NO UNLAWFUL OCCUPANCY	 	13
	 	 	 	 	 

i

 

	ARTICLE 20. EVENTS OF DEFAULT, CONDITIONAL LIMITATIONS, REMEDIES	 	13
	 	Section 20.02	 	Tenant Default; Payment of Rent and Termination of Lease.	 	14
	 	Section 20.03	 	Tenant Bankruptcy.	 	15
	ARTICLE 21. NOTICES	 	16
	ARTICLE 22. INTENTIONALLY OMITTED	 	17
	ARTICLE 23. INTENTIONALLY OMITTED	 	17
	ARTICLE 24. INTENTIONALLY OMITTED	 	17
	ARTICLE 25. EXCAVATIONS AND SHORING	 	17
	ARTICLE 26. CERTIFICATES BY LANDLORD AND TENANT	 	18
	 	Section 26.01	 	Landlord Certificate.	 	18
	 	Section 26.02	 	Tenant Certificate.	 	18
	ARTICLE 27. INTENTIONALLY OMITTED	 	18
	ARTICLE 28. ENTIRE AGREEMENT	 	18
	ARTICLE 29. QUIET ENJOYMENT	 	19
	ARTICLE 30. ARBITRATION	 	19
	ARTICLE 31. RECORDING OF MEMORANDUM	 	19
	ARTICLE 32. NO DISCRIMINATION WITH RESPECT TO THE PREMISES	 	19
	ARTICLE 33. INTENTIONALLY OMITTED	 	19
	ARTICLE 34. MISCELLANEOUS	 	20
	 	Section 34.02	 	 	 	20
	 	Section 34.03	 	 	 	20
	 	Section 34.05	 	 	 	20
	 	Section 34.06	 	 	 	20
	Exhibits	 	 	 	 
	Exhibit "A"	 	Land Description	 	 
	Exhibit "B"	 	Title Exceptions	 	 

ii

  

        AGREEMENT OF LEASE made as of October    , 2002, ("Lease" or "Lease Agreement")
between the Seneca Nation of Indians ("Landlord" or the "Nation"), a sovereign Indian nation, having an
office at 1490 Route 438, Irving, New York 14801 and an office with the address of P.O. Box 231, Salamanca, New York 14779, and Seneca Niagara Falls Gaming Corporation, a governmental
instrumentality of the Nation ("Tenant" or "SNFGC"), having its principal place of business at the
William Seneca Administration Building, 1490 Route 438, Cattaraugus Reservation, Irving, New York 14081. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, Pursuant to the Nation-State Gaming Compact, dated August 18, 2002 (the "Compact"), the Nation and
the State of New York ("State") entered into a Class III Gaming Compact (under the provisions of the Indian Gaming Regulatory Act 25 U.S.C.
§2701 et. seq.) that provides, among other things, that: (i) the State, through the New York State Urban Development Corporation d/b/a Empire State Development Corporation
("ESD"), a corporate governmental agency of the State constituting a political subdivision and public benefit corporation, having an office at 633 Third
Avenue, New York, New York 10017 or otherwise, shall transfer fee title to the land, as more particularly described on Exhibit A annexed hereto
(the "Land") and improvements formerly known as the Niagara Falls Convention Center and Lackey Plaza (the
"Improvements") to the Nation in consideration of payment by the Nation of One Dollar ($1.00); (ii) the Nation shall lease back to the State the
Improvements (the "Premises") for a lease payment of One Dollar ($1.00) per annum for a period of twenty-one (21) years; and
(iii) the State shall sublease the Premises to the Nation for a period equal to the shorter of (a) twenty-one (21) years or (b) until such time as the Nation
constructs and begins operation of a permanent Gaming Facility (as defined in the Compact in Niagara Falls, at which time the Nation shall pay to the State the balance, as of July 1, 2002 of
the general obligation bonds pledged in connection with the Premises; and 

        WHEREAS,
the Compact has been certified by the Governor of the State in accordance with Chapter 383 of the Laws of 2001 of the State; and 

        WHEREAS,
ESD, as required by the Compact, has transferred to the Nation title to the Land and Improvements by a Deed made as of the date of this Lease Agreement; and 

        WHEREAS,
the Land is or will be held in restricted fee by the Nation as approved by the Secretary of the Interior (the "Secretary") under
25 U.S.C. §1774(f); and 

        WHEREAS,
the Nation, pursuant to this Lease will lease the Premises to SNFGC, a government instrumentality of the Nation, pursuant to a certain lease agreement (the
"Head Lease Agreement") for a term of twenty-one (21) years; and 

        WHEREAS,
the Nation, as required by the Compact, has caused SNFGC to sublease the Premises to ESD pursuant to a certain sublease agreement (the
"Sublease"), dated the date hereof for an annual rent of One Dollar ($1.00) for a term of approximately twenty-one (21) years; and 

        WHEREAS,
ESD, as required by the Compact, will lease back the Premises to SNFGC under a certain sub-sublease agreement (the
"Sub-Sublease") dated the date hereof; and 

        WHEREAS,
the Nation seeks to lease the Premises to SNFGC and SNFGC seeks to lease the Premises from the Nation as provided hereto. 

1

 

        NOW,
THEREFORE, in consideration of the matters above recited, for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the
parties hereto formally covenant, agree and bind themselves as follows: 

 
 

ARTICLE 1.
  PREMISES AND TERM    
    

        Section 1.01    Premises.    Landlord does hereby lease to Tenant, and Tenant does hereby hire and take from Landlord
the Premises subject to all title matters affecting the Premises, as shown on Exhibit B hereto or as otherwise existing as of the date of this
Agreement. 

        Section 1.02    Term.    The Lease term (the "Term") shall
commence as of the date the Documents (as defined in that certain Escrow Agreement between the State, the Nation, SNFGC and Richard M. Dorado, dated the date hereof) are released as set forth in the
Escrow Agreement (the "Commencement Date") and shall expire on the twenty-first (21) anniversary of the Commencement Date or on such earlier date
upon which this Lease may be terminated as hereinafter provided. 

 
 

ARTICLE 2.
  RENT    
    

        Section 2.01    Rent Payments.    

        (a)    Rent.    Tenant shall pay directly to the Landlord, or Landlord's representative if Tenant is so notified,
annual contingent rent ("Annual Rent") in the amount of Twelve Million Dollars ($12,000,000) in equal monthly installments of One Million Dollars
($1,000,000) per month in advance commencing on the date that is six (6) months following the date SNFGC commences operations as a facility for Class III Gaming (as such term is defined
in 25 U.S.C. §2703(8)) for gaming and commercial activities traditionally associated with the operation or conduct of a casino facility and thereafter on the first day of each month during
the term. The parties hereby agree that Annual Rent shall be paid, only to the extent that sufficient funds are available (or such portion as may be available), from the net proceeds derived from the
operation of the casino facility and other commercial activities related to the operation of the casino for payment of such Annual Rent as determined by Tenant. All amounts payable by Tenant pursuant
to this Lease Agreement, including, without limiting the foregoing, Annual Rent, and any other sums, costs, expenses or deposits that Tenant in any of the provisions of this Lease Agreement assumes or
agrees to pay and/or deposit, shall constitute "Rent" under this Lease and, if Tenant fails to pay Rent, in addition to all other available remedies, Tenant shall have all the remedies provided in
Article 20. 

        (b)    Intentionally Omitted.    

        Section 2.02    Rent Net to Landlord.    Rent shall be absolutely net to Landlord without any abatement, deduction,
counterclaim, set off or offset whatsoever, so that this Lease shall yield, net to Landlord, the Rent due under the Lease. Tenant shall pay all costs, expenses and charges of every kind and nature
relating to the Premises, which may arise or become due or payable during or after (but attributable to a period falling within) the Term. 

2

 
 
 

ARTICLE 3.
  REPRESENTATIONS AND WARRANTIES    
    

        Section 3.01    Representations and Warranties of Tenant.    The Tenant does hereby represent and warrant as follows: 

        (a)    Existence and Power.    Tenant is a governmental instrumentality of a sovereign nation and federally recognized
"Indian Tribe" and has the power to enter into the transaction contemplated by this Lease Agreement and to carry out its obligations and exercise it rights hereunder. 

        (b)    Authorization.    Tenant is authorized and has the power under the laws of the Nation and the United States of
America to enter into this Lease Agreement and the transactions contemplated hereby and to perform and carry out all covenants and obligations on its part to be performed under and pursuant to this
Lease Agreement. Tenant by proper action of its Board of Directors has duly authorized the execution, delivery and performance of this Lease Agreement and the consummation of the transactions herein
contemplated. 

        (c)    Validity.    Tenant is not prohibited from entering into this Lease Agreement and discharging and performing
all covenants and obligations on its part to be performed under and pursuant to this Lease Agreement and the consummation of the transactions contemplated hereby. Compliance with the provisions of
this Lease Agreement will not conflict with or violate or constitute a breach of or a default under, the terms, conditions or provisions of any law, rule, regulation or order, judgment or decree of
any court, contractual limitation, restriction nor indenture, deed of trust, mortgage, loan agreement, other evidence or indebtedness or any other agreement or instrument to which Tenant is a party or
by which it or any of its property is bound. Neither Tenant entering into this Lease Agreement nor Tenant discharging and performing all covenants and obligations on its part to be performed under and
pursuant to this Lease Agreement will be in conflict with or result in a breach of or constitute (with due notice and/or lapse of time) a default under any of the foregoing, or result in the creation
or imposition of any lien of any nature upon any of the property of Tenant under the terms of any of the foregoing, nor are there any actions, suits or proceedings by or before any court,
administrative agency or other governmental authorities pending, or to the best of Tenant's knowledge, threatened, against or affecting Tenant which would have a material, adverse affect on the
ability of Tenant to perform its obligations under this Lease Agreement. This Lease Agreement is the legal, valid and binding obligation of Tenant enforceable against Tenant in accordance with its
terms. 

        Section 3.02    Representations and Warranties of Landlord.    Landlord does hereby represent and warrant as follows: 

        (a)    Existence and Power.    Landlord is a sovereign nation and federally recognized "Indian Tribe" and has the
power to enter into the transaction contemplated by this Lease Agreement and to carry out its obligations and exercise it rights hereunder. 

        (b)    Authorization.    Landlord is authorized and has the power under the laws of the Nation and the United States
of America to enter into this Lease Agreement and the transactions contemplated hereby and to perform and carry out all covenants and obligations on its part to be performed under and pursuant to this
Lease Agreement. Landlord by proper action of its Tribal Council has duly authorized the execution, delivery and performance of this Lease Agreement and the consummation of the transactions herein
contemplated. 

        (c)    Validity.    Landlord is not prohibited from entering into this Lease Agreement and discharging and performing
all covenants and obligations on its part to be performed under and pursuant to this Lease Agreement and the consummation of the transactions contemplated hereby. Compliance with the provisions of
this Lease Agreement will not conflict with or violate or constitute a breach of or a default under, the terms, conditions or provisions of any law, rule, 

3

 

regulation
or order, judgment or decree of any court, contractual limitation, restriction nor indenture, deed of trust, mortgage, loan agreement, other evidence or indebtedness or any other agreement
or instrument to which Landlord is a party or by which it or any of its property is bound. Neither Landlord entering into this Lease Agreement nor Landlord discharging and performing all covenants and
obligations on its part to be performed under and pursuant to this Lease Agreement will be in conflict with or result in a breach of or constitute (with due notice and/or lapse of time) a default
under any of the foregoing, or result in the creation or imposition of any lien of any nature upon any of the property of Landlord under the terms of any of the foregoing, nor are there any actions,
suits or proceedings by or before any court, administrative agency or other governmental authorities pending, or to the best of Landlord's knowledge, threatened, against or affecting Landlord which
would have a material, adverse affect on the ability of Landlord to perform its obligations under this Lease Agreement. This Lease Agreement is the legal, valid and binding obligation of Landlord
enforceable against Landlord in accordance with its terms. 

 
 

ARTICLE 4.
  INSURANCE    
    

        Section 4.01    Required Coverages.    

        (a)   Tenant,
at its sole cost and expense, shall carry or cause to be carried, insurance coverage of the type and in minimum limits as follows: 

        (i)    Insurance
on the Premises shall be carried under an "All Risk" form, including damage by water and subsidence, except for flood and earthquake. Such insurance shall be
carried in an amount equal to full replacement value, subject to insurance market conditions, of the Premises, including al improvements located therein and thereon. 

        (ii)   Commercial
general liability insurance shall be carried on the Premises and operations of the Premises against any liability for bodily injury, death, and property
damage. Such commercial general liability insurance shall be on an occurrence basis. The insurance against liability for bodily injury and/or death shall be not less than Five Million and 00/100
($5,000,000.00) Dollars for each occurrence for bodily injury and property damage with an annual general aggregate of not less than Ten Million and 00/100 ($10,000,000.00) Dollars. 

        (iii)  Motor
vehicle liability and property damage insurance coverage on all owned, non-owned and hired vehicles shall be provided in the amounts of Five Million
and 00/100 ($5,000,000.00) Dollars combined single limit for bodily injury and property damage. 

        (iv)  Commercial
general liability insurance shall include completed operations and products liability. 

        (v)   Workers'
compensation insurance, if applicable by law or agreement, shall be carried on all persons employed by Tenant or on its behalf, on or at the Premises, or in the
operations of Tenant in minimum amounts so provided by law or agreement. 

        (b)   All
insurance provided by or on behalf of Tenant shall be carried in favor of Landlord and Tenant, as their respective interests may appear, as "additional insureds".
Any coverage provided by Tenant, or on its behalf, as required herein also shall name each Mortgagee (as defined in the Sub-Sublease) as an additional insured under a standard Mortgagee
Clause (as hereinafter defined in the Sub-Sublease). 

        Section 4.02    Policy Requirements.    

        (a)   All
insurance required by any provision of this Lease shall be in such form and shall be issued by such responsible companies licensed and authorized to do business in
the State of New 

4

 

York
as are reasonably acceptable to Tenant and any Mortgagee. All policies referred to in this Lease shall be procured, or caused to be procured, by Tenant at no expense to Landlord and for periods
of not less than one (1) year. New or renewal policies replacing any policies expiring during the Term or memoranda or certificates thereof, as aforesaid, shall be delivered to Landlord on the
execution of this Lease and at least thirty (30) days prior to the date of expiration, together with proof satisfactory to Landlord that the full premiums have been paid. Premiums on policies
shall not be financed in any manner whereby a Mortgagee, on default or otherwise, shall have the right or privilege of surrendering or canceling the policies, provided, however, that premiums may be
paid in installments. 

        (b)   Tenant
and Landlord shall cooperate in connection with the collection of any insurance moneys that may be due in the event of loss and Tenant and Landlord shall execute
and deliver such proofs of loss and other instruments which may be required for the purpose of obtaining the recovery of any such insurance moneys. 

        (c)   Tenant
shall not carry separate insurance (other than personal injury liability insurance) concurrent in form or contributing in the event of loss with that required by
this Lease to be furnished by Tenant, unless Landlord and each Mortgagee are included therein as insureds with loss payable as provided in this Lease. 

        (d)   Each
policy of insurance required to be obtained by Tenant as herein provided and each duplicate policy issued by the insurer shall contain (i) a provision that
no act or omission of Tenant shall affect or limit the obligation of the insurance company to pay the amount or any loss sustained, (ii) an agreement by the insurer that such policy shall not
be cancelled or materially modified without at least thirty (30) days' prior written notice to Landlord and to each Mortgagee and (iii) an agreement by the insurer pursuant to which the
insurer waives subrogation (with the exception of workers' compensation) and having obtained such clause or endorsement of waiver of subrogation, Tenant agrees that it will not make any claims
against, or seek to recover from, Landlord for any loss or damage to Tenant's property covered by its fire and extended coverage insurance, provided, however, the subject release shall be limited by
the terms and provisions of the waiver of subrogation clause and shall be co-extensive therewith. 

        Section 4.03    Blanket Policies.    The insurance required by this Lease may, at the option of Tenant, be effected by
blanket or umbrella policies issued to Tenant covering the Premises and other properties owned or leased by Tenant, provided that the policies otherwise comply with the provisions of this Lease and
allocate to the Premises the specified coverage, without possibility of reduction or coinsurance by reason of, or damage to, any other premises named therein, and if the insurance required by this
Lease shall be effected by any such blanket or umbrella policies, Tenant shall furnish to Landlord certificates of insurance for such policies, with schedules thereto attached showing the amount of
insurance afforded by such policies applicable to the Premises in form and substance
satisfactory to Landlord. The parties hereby acknowledge that Landlord may satisfy its obligations under this Article 4 by satisfying each of the obligations of the tenant with respect to
Article 4 of the Sub-Sublease. 

 
 

ARTICLE 5.
  USE OF INSURANCE PROCEEDS    
    

        (a)   If
the Premises shall be destroyed or damaged in whole or in part by fire or other casualty of any kind or nature, ordinary or extraordinary, foreseen or unforeseen
(each, a "Casualty"), Tenant shall give to Landlord prompt notice thereof. Tenant may, at its election, repair, alter, restore, replace and rebuild the same, or the functional equivalent of the same
as was existing immediately prior to such occurrence. Landlord, in no event, shall be called upon to restore any portion of the Premises, now or hereafter existing or any portion thereof or to pay any
of the costs or expenses thereof. If Tenant shall 

5

 

elect
not to restore the Premises, Tenant shall promptly give notice to Landlord of its election not to restore. 

        (b)   All
insurance proceeds payable as a result a Casualty will be paid directly to Tenant. Landlord, at no expense to itself, shall cooperate with Tenant, executing such
documents and performing all other reasonably requisite acts, to allow for and expedite such payment to Tenant. 

 
 

ARTICLE 6.
  CONDEMNATION    
    

        Section 6.01    Total Condemnation.    (a) If at any time during the Term, the whole or substantially all of the
Premises shall be taken for any public or quasi-public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain or by agreement among Landlord, Tenant
and those authorized to exercise such right, this Lease and the Term shall terminate and expire on the date of such taking and the Rent payable by Tenant hereunder shall be paid to the date of such
taking. 

        (b)   The
term "substantially all of the Premises" shall be deemed to mean such portion of the Premises as, when so taken, would leave remaining a balance of the Premises
which, due either to the area so taken or the location of the part so taken in relation to the part not so taken, would not under economic conditions, zoning laws or building regulations then existing
or prevailing, readily accommodate, in Landlord's judgment, a new building or buildings of a nature similar to the improvements existing at the date of such taking and after performance of all
covenants, agreements, terms and provisions herein and by law provided to be performed and paid by Tenant. 

        Section 6.02    Award to Landlord.    (a) If the whole or substantially all of the Premises shall be taken or
condemned as provided in this Article 6, the award for or attributable to the Premises in any proceeding with respect to such taking shall be paid to Landlord. 

        (b)   Landlord
and Tenant agree to execute any and all documents and perform any requisite acts in order to facilitate such collection of the award. 

        Section 6.03    Date of Taking.    For purposes of this Article 6, the "date of taking" shall be deemed to be
the date on which the whole or substantially all of the Premises, or a part thereof, as the case may be, shall have vested in any lawful power or authority of the government of the United States of
America or such other governmental authority having jurisdiction. 

        Section6.04    Partial Condemnation.    If less than substantially all of the Premises be so taken, all of the terms
and provisions of Sections (a) and (b) of Article 5 shall be fully applicable hereto respecting Landlord's election regarding restoration and payment of the condemnation award. 

 
 

ARTICLE 7.
  ASSIGNMENT, SUBLETTING AND MORTGAGES    
    

        Section 7.01    Restrictions on Right of Tenant to Transfer Lease.    Except for the Sublease,
Sub-Sublease and as permitted under the Sub-Sublease with respect to the tenant thereunder, Tenant shall not assign or transfer this Lease, or sublet the Premises in its
entirety or in part, without the prior written consent of Landlord in each instance. 

        Section 7.02    Right of Tenant to Mortgage Lease.    Except as permitted under the Sub-Sublease with
respect to the tenant thereunder, Tenant shall not mortgage this Lease. 

        Section 7.03    No Mortgage by Landlord.    Landlord hereby agrees that it shall not, without Tenant's consent, which
may be given or withheld at Tenant's sole discretion, enter into or give any mortgage, lien, pledge, grant, hypothecation or otherwise encumber any of Landlord's interest in the Premises, except as
permitted under the Sublease with respect to the Sublease Tenant. 

6

 

 
 

ARTICLE 8.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 9.
  REPAIRS    
    

        Section 9.01    Tenant's Repair Obligations.    Tenant, at its sole cost and expense, throughout the Term, shall take
good care of the Premises, and shall maintain the same as a facility for Class III Gaming (as such term is defined in 25 U.S.C. §2703(8)) for gaming and commercial activities
traditionally associated with the operation or conduct of a casino facility, shall not commit or suffer, and shall use all reasonable precaution to prevent waste, damage, or injury to the Premises.
When used in this Section 9.01, the term "repairs" shall include all replacements, renewals, alterations and additions deemed reasonably necessary in Tenant's reasonable discretion. All repairs
made by Tenant shall be made in a manner consistent with applicable laws, regulations and rules, and the requirements of Tenant's insurers. 

        Section 9.02    No Landlord Services.    Landlord shall not be required to furnish any services, utilities or
facilities whatsoever to the Premises. Tenant shall have no duty or obligation to make any alteration, change, improvement, replacement, restoration or repair to, or to demolish, any improvements.
Landlord assumes the full and sole responsibility for the condition, operation, repair, alteration, improvement, replacement, maintenance and management of the Premises. 

 
 

ARTICLE 10.
  CHANGES, ALTERATIONS AND ADDITIONS    
    

        Except as permitted under the Sub-Sublease with respect to the tenant thereunder, Tenant shall not alter the improvements at the Premises, or any part
thereof, without the consent of the Landlord, or make any addition thereto or construct any additional improvements on the Premises, whether voluntarily or in connection with a repair or restoration
required by this Lease (collectively, "Capital Improvements"). 

 
 

ARTICLE 11.
  REQUIREMENTS OF PUBLIC AUTHORITIES AND
  OF INSURANCE UNDERWRITERS AND POLICIES    
    

        Tenant, at its sole cost and expense, promptly shall use all reasonable efforts to operate the Premises in a manner consistent with any and all present and future
laws, rules, orders, ordinances, regulations, statutes, requirements, codes and executive orders (collectively "Requirements") without regard to the
nature of the work required to be done, extraordinary as well as ordinary, of any governmental authorities, having jurisdiction, now existing or hereafter created, and of any and all of their
departments and bureaus, and of any applicable fire rating bureau or other body exercising similar functions, affecting the Premises, or any street, avenue and/or sidewalk comprising a part or in
front thereof and/or any vault in or under the same, or requiring the removal of any encroachment, or affecting the maintenance, use or occupation of the Premises, whether or not the same involve or
require any structural changes or additions in or to the Premises. Landlord also shall comply with any and all provisions and requirements of any casualty, liability or other insurance policy required
to be carried by Tenant under the provisions of this Lease. Nothing herein shall prevent Tenant from contesting the validity of any Requirement in accordance with existing law. Notwithstanding
anything in this Lease, the Sublease or the Sub-Sublease to the contrary, the parties hereby acknowledge that the Nation and SNFGC are subject only to Requirements of the federal
government of the United States and the Seneca Nation. 

7

 

 
 

ARTICLE 12.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 13.
  DISCHARGE OF LIENS; BONDS    
    

        Section 13.01    Discharge of Liens.    Except as permitted under the Sub-Sublease with respect to the
tenant thereunder, neither the Landlord nor Tenant shall create or permit to be created any lien, encumbrance or charge upon the Premises and shall not suffer any other matter or thing whereby the
estate, rights and interest of Landlord in the Premises or any part thereof might be materially impaired. 

        Section 13.02    Tenant Indemnity for Liens.    Tenant shall indemnify and hold Landlord harmless from and against any
and all costs, expenses, liability or damages arising from or, in connection with, the performance of any labor or the furnishing of any materials for any specific improvement, alteration to or repair
of the Premises or any part thereof, or the furnishing of materials or the rendering of services that would give rise to the filing of any lien against the Premises or any part thereof. 

 
 

ARTICLE 14.
  LIMITED OBLIGATIONS OF THE PARTIES; INDEMNITY    
    

        Section 14.01    Tenant Accepts "As Is".    Tenant acknowledges that Landlord has not operated or maintained the
Premises and that Tenant is fully familiar with the Premises, the physical condition thereof and title matters. Tenant accepts the Premises "as is", in the existing condition and state of repair. 

        Section 14.02    No Landlord Representations.    Tenant acknowledges with respect to the transaction pursuant to which
Landlord has acquired its interest in the Premises and leased the same to Tenant that it has not relied on any representations, statements or warranties made by Landlord and that Landlord shall not,
in any event whatsoever, be liable by reason of any such claimed misrepresentation or breach of warranty or for any latent or patent defects in the Premises. 

        Section 14.03    Section 223-a of the Real Property Law.    It is not a condition of this Lease
that Tenant will deliver possession of the Premises on the Commencement Date; the foregoing is an "express provision to the contrary" as provided in Section 223-a of the Real
Property Law of the State of New York. 

        Section 14.04    No Individual Liability/Indemnification.    (a) All covenants, stipulations, promises, agreements and
obligations of Tenant contained in this Lease Agreement shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Tenant and not of any member, officer, agent,
servant or employee of the Tenant in his or her individual capacity, and no recourse under or upon any obligation, covenant or agreement contained in this Lease Agreement, or otherwise based or in
respect of this Lease Agreement, or for any claim based thereon or otherwise in respect of this Lease Agreement, shall be had against any past, present or future member, officer, agent, servant or
employee, as such, of the Tenant or any successor public benefit corporation or political subdivision or any person executing this Lease Agreement on behalf of the Tenant, either directly or through
the Tenant or any successor public benefit corporation or political subdivision. It is expressly understood that this Lease Agreement is a corporate obligation of the Tenant, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, any such member, officer, agent, servant or employee of the Tenant or of any successor public benefit corporation or political
subdivision or any person so executing this Lease Agreement under or by reason of the obligations, covenants or agreements contained in this Lease Agreement or implied therefrom. Any and all such
personal liability of, and any and all such rights and claims against, every such member, officer, agent, servant or 

8

 

employee
under or by reason of the obligations, covenants or agreements contained in this Lease Agreement or implied therefrom are, to the extent permitted by law, expressly waived and release as a
condition of, and as a consideration for, the execution of this Lease Agreement. 

        (b)   The
obligations and agreements of the Tenant contained herein shall not shall not constitute or give rise to a general obligation of the Tenant, but rather shall
constitute limited obligations of the Tenant payable solely from the revenues of the Tenant derived and to be derived from this Lease Agreement. 

        (c)   Tenant
shall at all times protect and hold the Landlord harmless of, from and against any and all claims (whether in tort, contract or otherwise), demands, expenses and
liabilities for losses, damages, injury and liability of every kind and nature and however caused, and taxes (of any kind and by whomsoever imposed), resulting from, arising out of, or in any way
connected with this Lease Agreement, or the enforcement of any of the terms or provisions hereof or thereof or the transactions contemplated hereby, including, but not limited to: 

        (i)    the
rehabilitation, renovation and construction of the improvements, the installation or removal of any equipment or any other work or thing done in, on or about the
Premises or any part thereof; 

        (ii)   any
use, non-use, possession, occupation, alteration, repair, condition, operation, maintenance or management of the Premises or any part thereof or
adjacent thereto; 

        (iii)  negligence
on the part of Tenant, the Sub-Sublease Tenant, or any subtenant of the Sublease Tenant, or any of its or their respective agents, contractors,
servants, employees, licensees or invitees; 

        (iv)  any
accident, injury (including death) or damage to any person or property occurring in, on or about the Premises or any part thereof or adjacent thereto, including,
without limiting the foregoing, all environmental remediation and mitigation; 

        (v)   any
failure on the part of Tenant to pay or to perform or comply with any of the covenants, agreements, terms, obligations or conditions contained in this Lease on its
part to be performed or complied with and the exercise by Tenant of any remedy provided in this Lease with respect thereto; and 

        (vi)  any
lien or claim which may be alleged to have arisen against or on the Premises or any part thereof or any of the assets of, or funds appropriated to, Landlord, or any
liability which may be asserted against Landlord with respect thereto. 

        Such
indemnification set forth above shall be binding upon Tenant for any and all claims, demands, expenses, liabilities and taxes set forth herein. The Landlord shall not be liable for
any damages or injury to the person or property of Tenant or its trustees, officers, employees, agents or servants or persons under the control or supervision of Tenant or any other person who may be
about the Premises, due to any act or negligence of any person other than, with respect to the gross negligence or willful misconduct of the Landlord. If any claim, action or proceeding relating to
the Premises is made or brought against Landlord, then, upon demand by Landlord, Tenant, at its sole cost and expense, shall resist or defend such claim, action or proceeding in Landlord's name, if
necessary, by the attorneys for Tenant "s insurance carrier (if such claim, action or proceeding is covered by insurance), otherwise by such attorneys selected by Tenant as Landlord shall reasonably
approve, which approval shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, if Tenant reasonably determines that it is appropriate to engage its own attorneys then Landlord,
after consultation with Tenant, may engage its own attorneys to defend it or to assist in its defense and Tenant shall pay the reasonable fees and disbursements of such attorneys. 

9

 

        Section 14.05    Tenant Indemnity; Insurance.    The obligations of Tenant under this Article 14 shall not be
affected in any way by the absence of insurance or by the failure or refusal of any insurance carrier to perform any obligation on its part under insurance policies affecting the Premises. 

        Section 14.06    Survival.    The terms and conditions of this Article 14 shall survive the expiration or
termination of this Lease Agreement. 

        Section 14.07    No Consequential Damages.    In no event shall either party be liable for consequential, incidental
or special damages under this Lease Agreement. 

 
 

ARTICLE 15.
  LANDLORD NOT LIABLE FOR INJURY OR DAMAGE, ETC.    
    

        Landlord shall not in any event whatsoever be liable for any injury or damage to Tenant (unless caused by the gross negligence or willful misconduct of Landlord,
its agents, servants or employees) or to any other Person happening on, in or about the Premises and its appurtenances, nor for any injury or damage to the Premises or to any property belonging to
Tenant (unless caused by the gross negligence or willful misconduct of Landlord, its agents, servants or employees) or to any other person. 

 
 

ARTICLE 16.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 17.
  RIGHT OF INSPECTION    
    

        Section 17.01    Landlord Access to Premises.    Upon reasonable notice, Tenant shall permit Landlord and its agents
or representatives to enter the Premises at all reasonable times during business days and business hours for the purpose of determining whether or not Tenant is in compliance with its obligations
hereunder. 

        Section 17.02    No Landlord Obligation to Repair.    Nothing in this Article 17 or elsewhere in this Lease
shall imply any duty on the part of Landlord to do any repairs maintenance, renovation or other work on or at the Premises, and performance thereof by Landlord shall not constitute a waiver of Tenant
"s default in failing to perform the same. 

 
 

ARTICLE 18.
  LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS    
    

        If Tenant at any time shall be in Default (as hereinafter defined) of any of its obligations under this Lease, then Landlord, at its sole cost and expense may
(but shall be under no obligation to) perform such obligation on Tenant's behalf. 

 
 

ARTICLE 19.
  PERMITTED USE; NO UNLAWFUL OCCUPANCY    
    

        Subject to the provisions of law and this Lease, the Sublease and the Sub-Sublease, Tenant shall cause the Premises under the Sub-Sublease
to be used as a facility for Class III Gaming (as such term is defined in 25 U.S.C. §2703(8)) for gaming and commercial activities traditionally associated with the operation or
conduct of a casino facility. Tenant shall not use or occupy, nor permit or suffer the Premises or any part thereof to be used or occupied for any unlawful or illegal business, any use or purpose
inconsistent with the above permitted uses. 

10

 

 
 

ARTICLE 20.
  EVENTS OF DEFAULT, CONDITIONAL LIMITATIONS, REMEDIES    
    

        Each of the following events shall be an "Event of Default" or "Default" hereunder: 

        (a)   Tenant
shall fail to pay any installment of Rent or any part thereof within ten (10) business days after receipt of written notice from Landlord that Tenant has
failed to pay such installment once the same has become due and payable and remains unpaid following such ten (10) business day period; 

        (b)   Subject
to Force Majure, Tenant's determination that operation of the Premises is not economically feasible, or except during Tenant's construction, alteration or repair
of the Premises, Tenant shall fail, for a period of sixty (60) consecutive business days following receipt of notice from Landlord, to use the Premises as a facility for Class III Gaming
(as such term is defined in 25 U.S.C.
§2703(8)) for gaming and commercial activities traditionally associated with the operation or conduct of a casino facility; 

        (c)   Tenant
is generally not paying its debts as such debts become due or shall admit, in writing, that it is unable to pay its debts as such debts become due; 

        (d)   Except
as contemplated pursuant to Section 7.02 of the Lease, Tenant shall make an assignment for the benefit of creditors; 

        (e)   Tenant
shall file a voluntary petition under Title 11 of the United States Code or if such petition is filed against Tenant and an order for relief is entered, or
if Tenant shall file any petition or answer seeking, consenting to or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under
present or any future federal bankruptcy code or any other present or future applicable federal, state or other statute or law, or shall seek or consent to or acquiesce in or suffer the appointment of
any trustee, receiver, custodian, assignee, sequestrator, liquidator or other similar official of Tenant or of all or any substantial part of its properties or of the Premises or any interest of
Tenant therein; 

        (f)    if
within one hundred twenty (120) days after the commencement of any proceeding against Tenant seeking any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under the present or any future federal bankruptcy code or any other present or future applicable federal, state or other statute or law, such
proceeding shall not have been dismissed, or if, within one hundred days (120) days after the appointment, without the consent or acquiescence of Tenant, of any trustee, receiver, custodian,
assignee, sequestrator or liquidator of Tenant or of all or any substantial part of its properties or of the Premises or any interest of Tenant therein, such appointment shall not have been vacated or
stayed on appeal or otherwise, or if, within thirty (30) days after the expiration of any such stay, such appointment shall not have been vacated; 

        (g)   if
any material representation made herein by Tenant prove to be false or incorrect as of the date when made; or 

        (h)   Tenant
shall fail to observe or perform one or more of the other terms, conditions, covenants or agreements of this Lease and such failure is material and shall continue
for a period of thirty (30) days after written notice thereof by Landlord to Tenant specifying such failure (unless such failure requires work to be performed, acts to be done, or conditions to
be removed which cannot by their nature reasonably be performed, done or removed, as the case may be, within such thirty (30) day period, in which case no Event of Default shall be deemed to
exist as long as Tenant shall have commenced curing the same within such thirty (30) day period and shall diligently and continuously prosecute the same to completion). 

11

 

        Section 20.02    Tenant Default; Payment of Rent and Termination of Lease.    (a) If any Event of Default shall have
occurred and be continuing beyond all applicable notice and cure periods, Landlord may, at its sole option, give to Tenant an additional thirty (30) business days notice of cancellation of this
Lease and opportunity to cure the same, in which event this Lease and the Term shall come to an end and expire upon the expiration of such thirty (30) business day period if Tenant thereafter
fails to cure the same with the same force and effect as if the date set forth in the notice was the date of the end of the Term of this Lease; and Tenant shall then quit and surrender the Premises to
Landlord, but Tenant shall remain liable for damages. The terms of this Section 20.02 shall survive the termination of this Lease. 

        (b)   Notwithstanding
anything in Section 20.02(a) to the contrary, so long as SNFGC's obligation to pay Supplemental Rent under the Sub-Sublease remains in
effect and ESD is not in default (beyond any period expressed in the Sublease and Sub-Sublease within which ESD may cure such default) in the payment of rent or in the performance or
observance of any of the terms, covenants or conditions of the Sublease or Sub-Sublease on ESD's part to be performed or observed, ESD's interest pursuant to the Sublease and
Sub-Sublease shall not be disturbed by the Nation in the exercise of any of its rights under this Lease during the term of the Head Lease, and the Nation will not join ESD as a party
defendant in any action or proceeding for the purpose of terminating SNFGC's interest under this Lease, the Sublease or Sub-Sublease. In furtherance of the foregoing, the Nation has
provide to ESD that certain Non-Disturbance and Attornment Agreement, dated the date hereof. 

        Section 20.03    Tenant Bankruptcy.    If an order for relief is entered or if a stay of proceeding or other acts
become effective in favor of Tenant or Tenant's interest in this Lease in any proceeding which is commenced by or against Tenant under the present or any future federal bankruptcy code or any other
present or future applicable federal, state or other statute or law, Landlord shall be entitled to invoke any and all rights and remedies available to it under such bankruptcy code, statute, law or
this Lease, including, without limitation, such rights and remedies as may be necessary to protect adequately Landlord's right, title and interest in and to the Premises or any part thereof and to
assure adequately the complete and continuous future performance of Tenant's obligations under this Lease. Adequate protection of Landlord's right, title and interest in and to the Premises, and
adequate assurance of the complete and continuous future performance of Tenant's obligations under this Lease, shall include, without limitation, the following requirements: 

        (a)   Tenant,
to the extent required by applicable law, comply with all of its obligations under this Lease; 

        (b)   Tenant
continue to use the Premises in the manner required by this Lease and applicable law; 

        (c)   Tenant,
to the extent that Tenant desires to assume this Lease, provide proof to Landlord, within one hundred (120) days after entry of such order or the
effective date of such stay, of adequate assurance of the complete and continuous future performance of Tenant's obligations under the Lease, a security deposit in an amount acceptable to Landlord,
but in no event more than the Rent payable hereunder for the then current lease year; 

        (d)   Tenant,
to the extent required by applicable law, will use any unencumbered assets after the payment of all secured obligations and administrative expenses to assure
Landlord that sufficient funds will be available to fulfill the obligations of Tenant under this Lease; and 

        (e)   If
Tenant's trustee, Tenant or Tenant as debtor-in-possession assumes this Lease and proposes to assign the same (pursuant to 11 U.S.C.
§365, as the same may be amended) to any Person who shall have made a bona fide offer to accept an assignment of this Lease on terms acceptable to the trustee, Tenant or Tenant as
debtor-in-possession, then notice of such proposed 

12

 

assignment,
setting forth (i) the name and address of such Person, (ii) all of the terms and conditions of such offer, and (iii) the adequate assurance to be provided Landlord to
assure such Person's future performance under the Lease, including, without limitation, the assurance referred to in 11 U.S.C. §365(b).(3) (as the same may be amended), shall be given to
Landlord by the trustee, Tenant or Tenant as debtor-in-possession no later than twenty (20) days after receipt by the trustee, Tenant or Tenant as
debtor-in-possession of such offer, but in any event no later than ten (10) days prior to the date that the trustee, Tenant or Tenant as
debtor-in-possession shall make application to a court of competent jurisdiction for authority and approval to enter into such assignment and assumption, and Landlord shall
thereupon have the prior right, to be exercised by notice to the trustee given at any time prior to the effective date of such proposed assignment, to accept an assignment of this Lease upon the same
terms and conditions and for the same consideration, if any, as the bona fide offer made by such Person, less any brokerage commissions which may be payable out of the consideration to be paid by such
Person for the assignment of this Lease. 

 
 

ARTICLE 21.
  NOTICES    
    

        All notices, certificates or other communications hereunder shall be in writing and shall be deemed sufficiently given if (a) mailed by United States
certified mail, postage prepaid, or (b) if sent by a nationally recognized overnight courier or (c) delivered personally, to the Landlord and Tenant as the case may be, addressed as
follows: 

	(a)
	To
Landlord:

	

	Seneca
Nation of Indians

1490 Route 438

Irving, NY 14081

Attn: President

	

	and

	

	Seneca
Nation of Indians

P.O. Box 231

Salamanca, New York 14779

Attn: President

	

	with
a copy to:

	

	Akin
Gump Strauss Hauer & Feld, LLP

Robert S. Strauss Building

1333 New Hampshire Avenue, N.W.

Washington, D.C. 20036

Attn: Donald R. Pongrace, Esq.

	(b)
	To
Tenant:

	

	Seneca
Niagara Falls Gaming Corporation

William Seneca Administration Building

1490 Route 438

Cattaraugus Reservation

Irving, New York 14081

Attn: C. Michael Brown, President and Chief Executive Officer 

13

 

	

	with
a copy to:

	

	Akin
Gump Strauss Hauer & Feld, LLP

Robert S. Strauss Building

1333 New Hampshire Avenue, N.W.

Washington, D.C. 20036

Attn: Donald R. Pongrace, Esq. 

        Landlord
and Tenant may, by notice given hereunder to each of the others, designate any further or different addresses to which the subsequent notices, certificates or other,
communications to them shall be sent. 

        Every
notice, demand, request, consent, approval, or other communication hereunder shall be deemed to have been given or served only upon receipt. 

 
 

ARTICLE 22.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 23.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 24.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 25.
  EXCAVATIONS AND SHORING    
    

        If any excavation shall be made or contemplated for construction or other purposes upon property adjacent to the Premises, Tenant shall either: 

        (a)   afford
to the person or persons causing or authorized to cause such excavation the right to enter upon the Premises in a reasonable manner for the purpose of doing such
work as may be necessary to preserve any of the walls or structures of the Premises from injury or damage and to support the same by proper foundations, or 

        (b)   do
or cause to be done all such work, at Tenant "s expense, as may be necessary to preserve any of the walls or structures of the Premises from injury or damage and to
support the same by proper foundations. 

        Tenant
shall not, by reason of any such excavation or work, have any claim against Landlord for damages or for indemnity or for suspension, diminution, abatement, or reduction of any
amount payable by Tenant hereunder unless such claim arises from Landlord's gross negligence or intentional misconduct. 

 
 

ARTICLE 26.
  CERTIFICATES BY LANDLORD AND TENANT    
    

        Section 26.01    Landlord Certificate.    Landlord agrees at any time and from time to time, upon not less than ten
(10) business days' prior notice by Tenant, to execute, acknowledge and deliver to Tenant or such other person designated by Tenant, a statement in writing certifying that this Lease is
unmodified and in full force and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications) and the date to which the Rent
payable by Tenant hereunder has been paid, and stating whether or not to the best knowledge of the 

14

 

signer
of such certificate Tenant is in Default in the performance of any covenant, agreement or condition contained in this Lease, and, if so, specifying in detail each such Default of which the
signer may have knowledge and any other such item as Tenant shall reasonably request, due regard being given to the fact that such certificate may be requested on behalf of a potential or actual
Mortgagee. 

        Section 26.02    Tenant Certificate.    Tenant shall at any time and from time to time upon not less than ten
(10) days prior notice by Landlord execute, acknowledge and deliver to Landlord or any other party specified by Landlord a statement in writing certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that the same, as modified, is in full force and effect and stating the modifications) and the date to which each item of the Rent payable
by Tenant hereunder has been paid, and stating whether or not to the best knowledge of the signer of such certificate Landlord is in default in performance of any covenant, agreement or condition
contained in this Lease, and, if so, specifying in detail each such default of which the signer may have knowledge. 

 
 

ARTICLE 27.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 28.
  ENTIRE AGREEMENT    
    

        This Lease, the Sublease, Sub-Sublease and the Compact contain all the promises, agreements, conditions, inducements and understandings between
Landlord and Tenant relating to the Premises and there are no promises, agreements, conditions, understandings, inducements, warranties or representations, oral or written, expressed or implied,
between them other than as herein set forth. 

 
 

ARTICLE 29.
  QUIET ENJOYMENT    
    

        If and as long as Tenant faithfully performs the agreements, terms, covenants and conditions of this Lease, Tenant shall peaceably and quietly have, hold and
enjoy the Premises for the term hereby granted without molestation or disturbance by or from Landlord or any Person claiming through Landlord and free of any encumbrance created or suffered by Tenant,
except those encumbrances created or suffered by Tenant and those as to which this Lease is subject and subordinate. 

 
 

ARTICLE 30.
  ARBITRATION    
    

        All disputes between the parties with respect to this Lease shall be determined by the courts of the Nation of Seneca Indians. 

 
 

ARTICLE 31.
  RECORDING OF MEMORANDUM    
    

        Landlord and Tenant, upon the written request of the other, shall join in the execution of a memorandum of lease in proper form for recordation which memorandum
shall provide, inter alia, that this Lease is subject to Tenant's right to terminate prior to the end of the Term. 

 
 

ARTICLE 32.
  NO DISCRIMINATION WITH RESPECT TO THE PREMISES    
    

        With respect to the Premises, Tenant covenants and agrees that it shall (a) neither commit nor permit discrimination or segregation by reason of race,
creed, color, religion, national origin, ancestry, sex, age, disability or marital status ("Discrimination") in the sale, transfer or assignment of its interest 

15

 

under
this Lease or in the subleasing, use or occupancy of the Premises or any part thereof or in connection with the erection, maintenance, repair, restoration, alteration or replacement of, or
addition to, any Building (b) not willfully engage in any personnel practices which may have a discriminatory effect and (c) comply with all federal laws, ordinances, rules, and
regulations from time to time in effect prohibiting Discrimination or segregation or pertaining to equal employment opportunities. 

 
 

ARTICLE 33.
  INTENTIONALLY OMITTED    
    

 
 

ARTICLE 34.
  MISCELLANEOUS    
    

        Section 34.01    The captions of this Lease are for convenience of reference only and in no way define, limit or describe
the scope or intent of this Lease or in any way affect this Lease. 

        Section 34.02    The Table of Contents is for the purpose of convenience of reference only and is not to be deemed or
construed in any way as part of this Lease or as supplemental thereto or amendatory thereof. 

        Section 34.03    The use herein of the neuter pronoun in any reference to Landlord or Tenant shall be deemed to include
any individual Landlord or Tenant, and the use herein of the words "successors and assigns" or "successors or assigns" of Landlord or Tenant shall be deemed to include the heirs, legal representatives
and assigns of any individual Landlord or Tenant. 

        Section 34.04    If more than one party is named as or becomes Tenant hereunder, Landlord may require the signatures of
all such parties in connection with any notice to be given or action to be taken by Tenant hereunder. 

        Section 34.05    Except as otherwise expressly provided in this Lease, there shall be no merger of this Lease or the
leasehold estate created hereby with the fee estate in the Premises or any part thereof by reason of the same Person acquiring or holding, directly or indirectly, this Lease or the leasehold estate
created hereby or any interest in this Lease or in such leasehold estate as well as the fee estate in the Premises. 

        Section 34.06    Each of the parties represents to the other that it has not dealt with any broker in connection with
this transaction. If any claim is made by broker who shall claim to have acted or dealt with Tenant in connection with this transaction, Tenant will be responsible for payment of the brokerage
commission, fee or other compensation to which such broker is entitled. 

        Section 34.07    This Lease cannot be changed, modified or terminated orally, but only by a written instrument of change,
modification or termination executed by the party against whom enforcement of any change, modification, or termination is sought. 

        Section 34.08    This Lease shall be governed by and construed in accordance with the laws of the Nation of Seneca
Indians. 

        Section 34.09    The agreements, terms, covenants and conditions herein shall be binding upon and shall inure to the
benefit of, Landlord and Tenant and their respective successors and assigns. 

        Section 34.10    Neither Landlord nor Tenant will do, authorize or execute any act, deed or thing whatsoever or fail to
take any such action which will or may cause the other party to be in violation of any of its obligations. 

16

 

        Section 34.11    All references in this Lease to "Articles" or "Sections" shall refer to the designated Article(s) or
Section(s), as the case may be, of this Lease. 

        Section 34.12    All references in this lease to "licensed professional engineer" or "registered architect" shall mean a
professional engineer or architect who is licensed or registered, as the case may be, by the State of New York. 

        Section 34.13    If any term or provision of this Lease, or the application thereof to any person or circumstances shall,
to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 

        Section 34.14    Except as may be otherwise expressly provided herein, there shall be no abatement, diminution or
reduction of Rent payable by Tenant hereunder or of the other obligations of Tenant hereunder under any circumstances. 

        Section 34.15    Where Tenant is required to do or accomplish any act or thing hereunder, Tenant may cause the same to be
done or accomplished by the others with the same force and effect as if done or accomplished by Tenant. 

        Section 34.16    This Lease Agreement shall run with the land, both as respects benefits and burdens created herein, and
shall be binding upon and inure to the benefit of the successors and assigns of the respective parties. 

        Section 34.17    This Lease Agreement shall inure to the benefit of Landlord and Tenant, and shall be binding upon the
Landlord and Tenant, and their respective successors and permitted assigns. 

        Section 34.18    Force Majeure.    The obligations of Landlord and Tenant to perform their respective covenants
hereunder, other than Tenant's obligation to pay Fixed Rent and Additional Rent hereunder, shall be excused to the extent that Landlord or Tenant, as the case may be, is prevented or delayed from so
doing by reason of Force Majeure. "Force Majeure" shall mean failure, in whole or in part, or delay on the part of Tenant in the performance of any of
the obligations imposed upon Tenant under this Lease, shall be excused and Landlord shall not exercise its option to terminate this Lease, when such failure or delay is the direct result of any of the
following causes: Acts of God, earthquake, windstorm, hurricane, fire, flood, strikes or other labor stoppages including shortages of labor or materials, the elements, malicious mischief by third
parties not within the control of Tenant, insurrection, riot, public enemy, war, terrorism, wrongful acts of the Landlord or comparable extraordinary cause not within the control of Tenant. 

        Section 34.19    Easements.    Landlord will, from time to time, at the request of Tenant and at Tenant's cost
and expense (but subject to the approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed), (i) grant consent to easements and other rights in the nature
of easements with respect to the Premises to third parties, (ii) grant consent to release existing easements or other rights in the nature of easements which are for the benefit of the
Premises, (iii) execute petitions to have the Premises annexed to any municipal corporation or utility district and (iv) execute and deliver to any person any instrument appropriate to
confirm or effect such grants, releases and petitions (to the extent of its interests in the Premises). 

(signatures follow immediately)

17

 

        IN
WITNESS WHEREOF, Tenant and Tenant have executed this Lease as of the day and year first above-written. 

	

 	

LANDLORD:
	

 	

SENECA NATION OF INDIANS
	

 	

By:	

/s/ Cyrus M. Schindler

	 	Name:	Cyrus M. Schindler
	 	Title:	President
	

 	

TENANT:
	

 	

SENECA NIAGARA FALLS GAMING CORPORATION
	

 	

By:	

/s/ Cyrus M. Schindler

	 	Name:	Cyrus M. Schindler
	 	Title:	Chairman

18

	STATE OF NEW YORK	)	 	 
	 	) ss:	 	 
	COUNTY OF ERIE	)	 	 

On
the 22nd day of October in the year 2002, before me, the undersigned personally appeared Cyrus M. Schindler, personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 

	

 	
 	

 
	                /s/ Cindy L. Nephew	 	[NOTARIZED]
	
 Signature and Office of individual taking acknowledgment	 	 

	

STATE OF NEW YORK	

)	
 	

 
	 	) ss:	 	 
	COUNTY OF	)	 	 

On
the 22nd day of October in the year 2002, before me, the undersigned personally appeared Cyrus M. Schindler, personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 

	

 	
 	

 
	                /s/ Cindy L. Nephey	 	[NOTARIZED]
	
 Signature and Office of individual taking acknowledgment	 	 

   Exhibit A  

 The Premises  

A-1

   Exhibit B  

 Title Exceptions  

B-1

QuickLinks

W I T N E S S E T H

TABLE OF CONTENTS

W I T N E S S E T H

ARTICLE 1. PREMISES AND TERM

ARTICLE 2. RENT

ARTICLE 3. REPRESENTATIONS AND WARRANTIES

ARTICLE 4. INSURANCE

ARTICLE 5. USE OF INSURANCE PROCEEDS

ARTICLE 6. CONDEMNATION

ARTICLE 7. ASSIGNMENT, SUBLETTING AND MORTGAGES

ARTICLE 8. INTENTIONALLY OMITTED

ARTICLE 9. REPAIRS

ARTICLE 10. CHANGES, ALTERATIONS AND ADDITIONS

ARTICLE 11. REQUIREMENTS OF PUBLIC AUTHORITIES AND OF INSURANCE UNDERWRITERS AND POLICIES

ARTICLE 12. INTENTIONALLY OMITTED

ARTICLE 13. DISCHARGE OF LIENS; BONDS

ARTICLE 14. LIMITED OBLIGATIONS OF THE PARTIES; INDEMNITY

ARTICLE 15. LANDLORD NOT LIABLE FOR INJURY OR DAMAGE, ETC.

ARTICLE 16. INTENTIONALLY OMITTED

ARTICLE 17. RIGHT OF INSPECTION

ARTICLE 18. LANDLORD'S RIGHT TO PERFORM TENANT'S COVENANTS

ARTICLE 19. PERMITTED USE; NO UNLAWFUL OCCUPANCY

ARTICLE 20. EVENTS OF DEFAULT, CONDITIONAL LIMITATIONS, REMEDIES

ARTICLE 21. NOTICES

ARTICLE 22. INTENTIONALLY OMITTED

ARTICLE 23. INTENTIONALLY OMITTED

ARTICLE 24. INTENTIONALLY OMITTED

ARTICLE 25. EXCAVATIONS AND SHORING

ARTICLE 26. CERTIFICATES BY LANDLORD AND TENANT

ARTICLE 27. INTENTIONALLY OMITTED

ARTICLE 28. ENTIRE AGREEMENT

ARTICLE 29. QUIET ENJOYMENT

ARTICLE 30. ARBITRATION

ARTICLE 31. RECORDING OF MEMORANDUM

ARTICLE 32. NO DISCRIMINATION WITH RESPECT TO THE PREMISES

ARTICLE 33. INTENTIONALLY OMITTED

ARTICLE 34. MISCELLANEOUS

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