Document:

EXHIBIT 10.2

 

FAIRPOINT COMMUNICATIONS, INC.

PERFORMANCE UNIT AWARD AGREEMENT

 

THIS
PERFORMANCE UNIT AWARD AGREEMENT (this “Agreement”), made and entered into
this 1st day of April, 2008, by and between FairPoint Communications, Inc.
(the “Company”) and Eugene
B. Johnson (the “Participant”).

 

W I T N E S S E T H:

 

WHEREAS,
the Compensation Committee of the Board of Directors of the Company (the “Committee”) has awarded the
Participant Two Hundred Forty-Five Thousand (245,000) Performance Units under
the Company’s 2008 Long Term Incentive Plan (the “Plan”); and

 

WHEREAS,
the Company and the Participant desire to enter into a written agreement that
sets forth the terms and provisions of the Participant’s Performance Unit
award.

 

NOW,
THEREFORE, in consideration of the premises and the mutual promises contained
herein, the Company and the Participant hereby agree as follows:

 

1.             The Participant acknowledges that the Performance Unit
award is governed by this Agreement and the terms of the Plan.  The terms of the Plan are incorporated into
this Agreement in their entirety and made a part hereof by reference.  Unless otherwise defined herein, capitalized
terms used herein shall have the meanings set forth in the Plan.  In the event of any conflict between the
terms of the Plan and this Agreement, the terms of the Plan shall govern and
control.

 

2.             The
Participant is awarded a target award of Two Hundred Forty-Five Thousand
(245,000) Performance Units.  The number
of Performance Units earned by the Participant shall be determined in
accordance with the Plan and this Agreement.

 

3.             The Performance Units shall be
earned by the Participant based on the following table and the “Value” (as
hereinafter defined) of the Company’s Common Stock as of December 31,
2009.

 

	
  Value of the Company’s Common Stock as

  of December 31, 2009

  	
   

  	
  Number of Performance Units Earned

  	
   

  
	
  $

  	
  19.94

  	
   

  	
  136,111

  	
   

  
	
  $

  	
  21.94

  	
   

  	
  245,000

  	
   

  
	
  $

  	
  23.94

  	
   

  	
  334,100

  	
   

  
	
  $

  	
  25.94

  	
   

  	
  408,333

  	
   

  

 

The number of Performance
Units earned for a Value between any of the amounts set forth in the table
above will be determined by linear interpolation.

 

 

The term “Value” for
purposes of this Agreement shall mean the sum of (i) the average of the
closing prices for Shares of the Company’s Common Stock during the 30 days
trading period immediately preceding December 31, 2009 and (ii) all
cash dividends paid by the Company with respect to the Common Stock during the
period from the date of this Agreement through December 31, 2009.

 

The
number of Performance Units earned by the Participant shall be determined and
certified in writing by the Committee.

 

4.             One Share of the Company’s Common Stock will be
distributed to the Participant for each Performance Unit earned by the
Participant.  Dividends on the Shares
underlying the Performance Units will not accrue or be paid during the
Performance Period.

 

5.             Any Shares to be distributed in
respect of the Performance Units earned by the Participant will be delivered to
the Participant no later than March 15, 2010.  If the Participant’s employment with the
Company terminates prior to December 31, 2009 for any reason other than
termination by the Company without Cause or the Participant’s death or
Disability, the Participant shall forfeit the Performance Units and any Shares
distributable in respect of such Performance Units.  If the Company terminates the Participant’s
employment without Cause prior to December 31, 2009, the Performance Units
awarded to the Participant shall remain outstanding and be earned by the
Participant (and any Shares distributable in respect of such earned Performance
Units (based on the Value of the Company’s Shares as of December 31, 2009)
shall be distributed to the Participant) as if the Participant’s employment
with the Company had continued through December 31, 2009.  If the
Participant’s employment with the Company terminates prior to December 31
2009 due to the Participant’s death or Disability, Shares for one hundred
percent (100%) of the Performance Units awarded to the Participant hereunder
shall be distributed to the Participant without any adjustment for the Value of
the Company’s Shares as of December 31, 2009.

 

6.             In the event a Change in Control occurs prior to December 31,
2009, the number of Performance Units earned by the Participant will be
determined in accordance with the table set forth in Section 3 above, provided,
however, for purposes of such determination, the Value of the Company’s
Common Stock shall mean the sum of (i) the Fair Market Value
of the Company’s Common Stock immediately prior to the Change in Control and (ii) all
cash dividends paid by the Company with respect to the Common Stock during the
period from the date of this Agreement through the Change in Control.  Any Shares to be distributed in respect of
the Performance Units earned by the Participant upon a Change in Control will
be delivered to the Participant immediately prior to the Change in Control.

 

7.             Unless otherwise elected by the
Participant in accordance with procedures adopted by the Committee, the Company
shall deduct from any Shares otherwise distributable to the Participant that
number of Shares having a value equal to the amount of any taxes required by
law to be withheld from awards made under the Plan.

 

8.             The
Participant may elect, by entering into a Deferral Agreement with the Company,
to defer delivery of all (or any portion) of the Shares otherwise payable to
the Participant in respect of the Performance Units earned by the
Participant.  To be effective, the 

 

2

 

Participant
must complete and return the Deferral Agreement to the Company in accordance
with procedures established by the Committee.

 

9.             The Performance Units awarded
hereunder to the Participant shall not entitle the Participant to any rights as
a stockholder of the Company.

 

10.           The
Participant’s award under this Agreement and the Plan may not be assigned or
alienated.  Subject to any limitations
under the Plan on transferability, this Agreement will be binding upon and
inure to the benefit of the heirs, legatees, legal representatives, successors
and assigns of the parties hereto. 
Neither the Plan, nor this Agreement, nor any action taken under the
Plan or this Agreement shall be construed as giving to the Participant the right
to be retained in the employ of the Company.

 

11.           Any
distribution of Shares may be delayed until the requirements of any applicable
laws or regulations or any stock exchange requirements are satisfied.  The Shares distributed to the Participant
shall be subject to such restrictions and conditions on disposition as counsel
for the Company shall determine to be desirable or necessary under applicable
law.

 

12.           The Participant may designate a
beneficiary or beneficiaries to receive all or part of the Shares to be
distributed to the Participant under this Award Agreement in the event of the
Participant’s death.  If no beneficiary
is designated, such Shares shall be paid to the estate of the Participant.

 

13.           This Agreement, and the award of the
Performance Units to the Participant hereunder, are contingent upon the
approval of the Plan by the stockholders of the Company at the 2008 annual
stockholders meeting.  In the event such
approval is not obtained for any reason, the Company shall pay to the
Participant an amount equal to the Fair Market Value of the Shares that would
have delivered to the Participant in respect of the Performance
Units if such approval had been obtained, such amount to be paid in a single
lump sum (less applicable tax withholding).

 

14.           This
Agreement and the Plan constitute the entire understanding of the parties with
respect to the award of Performance Units to the Participant.  Except with respect to modifications of the
Plan as provided therein, this Agreement can be amended only in writing
executed by the Participant and a duly authorized officer of the Company.

 

15.           This Agreement shall be governed by
the laws of the State of Delaware to the extent not preempted by applicable
federal law.

 

3

 

IN
WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to
be executed in duplicate as of the date first above written.

 

 

	
   

  	
  FAIRPOINT COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John P. Crowley

  
	
   

  	
  Name:

  	
  John P. Crowley

  
	
   

  	
  Title:

  	
  Executive Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Eugene B. Johnson

  
	
   

  	
  Eugene
  B. Johnson

  
					

 

4Exhibit 10.1

 

 

 

AMENDED AND RESTATED HEAD LEASE
AGREEMENT

 

(“Lease”)

 

 

BETWEEN

 

SENECA NATION OF INDIANS

 

 

 

as Landlord

 

and

 

 

SENECA NIAGARA FALLS GAMING
CORPORATION

 

 

 

as Tenant

 

 

 

 

 

 

Effective Date:  October 1, 2007

 

 

 

THIS AMENDED AND RESTATED
HEAD LEASE AGREEMENT effective as of October 1, 2007 (“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
(Cattaraugus Territory) 14801 and an office with the address of P.O. Box
231, Salamanca, New York (Allegany Territory) 14779, and the Seneca Niagara
Falls Gaming Corporation, a wholly-owned governmental instrumentality of the
Nation (“Tenant” or “SNFGC”), having an address at 310 Fourth
Street, Niagara Falls, New York (Nation Territory) 14302-0777,

 

W I T N E S S E T H:

 

WHEREAS, the Nation
currently leases to SNFGC, a wholly owned governmental instrumentality of the
Nation, land and certain improvements for use as the site of the Seneca Niagara
Casino and Hotel and for related purposes, including, but not limited to, developing
and conducting Class III gaming operations and related activities as
authorized under its charter, pursuant to a certain lease agreement dated as of
October 25, 2002 (the “Original Head Lease”); and

 

WHEREAS, the Nation and the
SNFGC desire to amend and restate the Original Head Lease in accordance with
the terms hereof; and

 

WHEREAS, the parties
acknowledge that the SNFGC has paid and the Nation has received all payments
due to the Nation under the Original Head Lease through the fiscal year ending September 30,
2007, and that no outstanding amounts are due or payable for its use of the
Premises (as defined below) for the period prior to the effective date of this
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:

 

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 as  described
in Exhibit A attached hereto or
as otherwise existing as of the date of this Lease Agreement, subject to all
title matters affecting the land described therein (the “Land”),.

 

                Section 1.02           Term.  The
Lease term (the “Term”) shall commence as of the date of this Lease and
shall expire on the earlier of either (i) the twenty-first (21st)
anniversary of Tenant’s commencement of gaming activities, or (ii) such
other date as may be herein provided.  

RENT

 

Section 1.03           Rent Payments.

 

(a)           Rent.  Tenant shall pay directly to the Landlord, or
Landlord’s representative if Tenant is so notified, annual rent (“Annual
Rent”) in the amount of Twenty-Four Million Four Hundred Thousand Dollars ($24,400,000.00)
in equal monthly installments of 

 

1

 

Two Million Thirty-Three
Thousand Three Hundred Thirty-Three Dollars and Thirty-Three Cents ($2,033,333.33)
in advance on the first day of each calendar month, beginning on the first day
of the first full calendar month upon execution of this Lease during the Term.  The Annual Rent may increase upon agreement
of the parties, provided that no increase in Annual Rent hereunder may
contravene, or constitute a default under, any agreement, indenture, instrument
or other commitment legally binding upon Landlord and/or Tenant, or to which
the Premises are subject (“Commitments”).  Any proposed increase to the prior year’s
Annual Rent shall be jointly reviewed by Landlord and Tenant for consistency
with then-applicable Commitments, with any such increase to be confirmed by the
parties in writing prior to its effectiveness. 
The delay or failure of either party in computing the Annual Rent
increase or executing a written statement of confirmation of such Annual Rent
increase will not impair the continuing obligation of Tenant to pay Annual
Rent.  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.

 

(b)           Interest and Penalties.  If any payment of Rent shall remain unpaid
for more than thirty (30) days beyond the due date thereof, Tenant shall pay to
Landlord a late charge equal to four percent (4%) of any Rental not paid when
due and interest at a rate equal to the Prime Rate (as hereinafter defined)
(the “Default Rate”), such interest to accrue from the due date of such
payment to the date of actual payment thereof. 
Such late charge and interest shall constitute Rent hereunder and shall
be due and payable by Tenant on demand. 
No failure by Landlord to insist upon strict performance by Tenant of
its obligations to pay late charges shall constitute a waiver by Landlord of
its rights to enforce the provisions of this Article 2 in any instance
thereafter occurring.  This provision
shall not be construed in any way to extend the grace period or notice period
provided for in this Lease.  As used
herein “Prime Rate” shall mean the rate reported by The Wall Street Journal (or
its successors) as the so-called “prime rate”.

 

                Section 1.04           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.

 

ARTICLE 2.

REPRESENTATIONS AND WARRANTIES

 

                Section 2.01           Representations
and Warranties of Tenant.  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 its rights hereunder.

 

(b)           Authorization.  Tenant is authorized and has the power under
the laws of the Nation to enter into this Lease Agreement and the transactions
contemplated hereby and to 

 

2

 

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 and the Nation’s Council 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 of
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 2.02           Representations
and Warranties of Landlord.  The
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 its rights hereunder.

 

(b)           Authorization.  Landlord is authorized and has the power
under the laws of the Nation 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, regulation
or order, judgment or decree of any court, contractual limitation, restriction
nor indenture, deed of trust, mortgage, loan agreement, other evidence of
indebtedness or any other agreement or instrument to which Landlord is a party
or by which it or any of its 

 

3

 

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 3.

INSURANCE

 

Section 3.01           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, including all improvements
located therein and thereon, 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
improvements.

 

(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.

 

4

 

(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 hereinafter defined) as an additional insured under a standard
Mortgagee Clause (as hereinafter defined).

 

Section 3.02           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 York as are reasonably acceptable to Landlord 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 each 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 (as hereinafter
defined) 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 3.03           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 such Tenant, provided that the policies otherwise comply with the
provisions of this Lease and allocate to the Premises and all improvements 

 

5

 

thereon and therein 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.

 

ARTICLE 4.

USE OF INSURANCE PROCEEDS

 

(a)           If the Premises or improvements
thereon or therein 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, subject to such changes or alterations as
Tenant may elect.  Landlord, in no event,
shall be called upon to restore any portion of the Premises or improvements,
now or hereafter existing or any portion thereof or to pay any of the costs or
expenses thereof.  If Tenant shall elect
not to restore the Premises or improvements, Tenant shall promptly give notice
to Landlord of its election not to restore.

 

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

 

ARTICLE 5.

CONDEMNATION

 

                Section 5.01           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 Tenant’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 5.02           Award
to Landlord.

 

6

 

(a)           If the whole or substantially all of
the Premises shall be taken or condemned as provided in this Article 5,
the award for or attributable to the Premises in any proceeding with respect to
such taking shall be paid to Landlord.

 

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

 

                Section 5.03           Date
of Taking.  For purposes of this Article 5,
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.

 

                Section 5.04           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 4 shall be fully applicable
hereto respecting Tenant’s election regarding restoration and payment of the
condemnation award.

 

ARTICLE 6.

ASSIGNMENT, SUBLETTING AND MORTGAGES

 

                Section 6.01           Restrictions
on Right of Tenant to Transfer Lease. 
Tenant may assign or transfer this Lease, or sublet the Premises in its
entirety or substantially in its entirety, or portions thereof, without the
prior written consent of Landlord in each instance, provided, however that in
all events Tenant shall provide Landlord a true and correct copy of the
documentation evidencing such assignment, sublease or transfer within thirty
(30) days of the execution and completion thereof.  Tenant may also from time to time enter into
a venture with a third party or parties to perform a business operation at the Premises.
The foregoing in no way modifies Tenant’s obligation under this Lease
Agreement.

 

                Section 6.02           Leasehold
Mortgage.

 

(a)           Tenant may encumber by mortgage,
mortgages or other proper instruments this Lease and Tenant’s leasehold
interest in the Premises as security for any indebtedness undertaken by Tenant
(each, a “Leasehold Mortgage”). The execution of a Leasehold Mortgage or
other similar instrument, or the foreclosure thereof, or any sale thereunder,
either by judicial proceedings or by virtue of any power reserved in a Leasehold
Mortgage, or conveyance by Tenant to the holder of such indebtedness (each, a “Holder
of Leasehold Mortgage”), or the exercising of any right, power or privilege
reserved in a Leasehold Mortgage, shall not be held as a violation of any of
the terms and conditions hereof, or as an assumption by the Holder of Leasehold
Mortgage or its designee personally of the obligations hereof, except to the
extent that the Holder of Leasehold Mortgage or its designee voluntarily
assumes said obligations in order to avoid termination of this Lease, provided
that such Leasehold Mortgage or the actions taken pursuant thereto shall not
violate the following provisions of this Paragraph.

 

(b)           If Tenant shall encumber this Lease
or its leasehold interest in the Premises and if Tenant or a Holder of
Leasehold Mortgage shall give written notice to Landlord of the existence
thereof and the address of such Holder of Leasehold Mortgage, then Landlord 

 

7

 

will mail or deliver to each
such Holder of Leasehold Mortgage, at such address, a duplicate copy of all
notices in writing which Landlord may, from time to time, give to or serve on
Tenant under and pursuant to the terms and provisions hereof, such copies shall
be mailed or delivered to each such Holder of Leasehold Mortgage, at, or as
near as possible to, the same time such notices are given to or served on
Tenant. Each such Holder of Leasehold Mortgage may, at its option, at any time
before the rights of Tenant shall be terminated as provided herein, pay any of
the rents due hereunder, or pay any taxes and assessments, or do any act or
thing required of Tenant by the terms hereof, or do any act or thing that may
be necessary and proper to be done in the observance of the covenants and
conditions hereof, or to prevent the termination hereof, all payments so made,
and all things so done and performed by such Holder of Leasehold Mortgage shall
be as effective to prevent a termination of the rights of Tenant hereunder as
the same would have been if done and performed by Tenant.

 

(c)           Landlord agrees that it will not
terminate this Lease because of the bankruptcy or insolvency of the Tenant, or
because the Tenant shall abandon the Premises, or because the Tenant shall
suffer this Lease or any estate or interest thereunder to be taken under any
writ of execution, or because the Tenant shall make an assignment for the
benefit of creditors, or because of any other failure on the part of Tenant to
observe or perform any of the covenants contained in this Lease, if a Holder of
Leasehold Mortgage cures any default by Tenant which is curable by the payment
of money within thirty (30) days after the date of written notice from Landlord
to each Holder of Leasehold Mortgage specifying the nature of the default, or
if such default is not curable by the mere payment of money, then if a Holder
of Leasehold Mortgage shall agree in writing to perform (and does perform)
within ninety (90) days after the date of the written notice of default from
Landlord to each Holder of Leasehold Mortgage specifying the nature of the
default all of the obligations of Tenant under this Lease capable of
performance by a Holder of Leasehold Mortgage until such time as this Lease
shall be sold upon foreclosure pursuant to the provisions of the Leasehold
Mortgage. Provided that a Holder of Leasehold Mortgage pays all amounts then
due and payable on the part of the Tenant, including interest and all late
penalties, and Landlord’s legal fees incurred as a result of Tenant’s default, Landlord
agrees to accept performance by such Holder of Leasehold Mortgage of any term,
covenant or condition to be performed by Tenant under this Lease with the same
force and effect as though timely performed by Tenant as long as such Holder of
Leasehold Mortgage performs within the time periods previously set forth in
this Subparagraph. If a Holder of Leasehold Mortgage fails to cure any Tenant
default in accord with the foregoing, Landlord may terminate this Lease and
proceed with all available remedies to take possession of the Premises and all
other rights pertaining thereto, as set forth in the provisions governing
default under this Lease. When more than one Holder of Leasehold Mortgage
exists, the rights and interests of each Holder of Leasehold Mortgage under
this Lease shall be determined by the priority of each such Holder of Leasehold
Mortgage and as such rights and interests may be restricted or otherwise
allocated pursuant to any agreement(s) between such Holders of Leasehold
Mortgage or between Tenant and such Holder(s) of Leasehold Mortgage.
Notwithstanding any such agreement(s), Landlord is required to give any notice
required hereunder to all Holders of Leasehold Mortgage of which Landlord has
been given written notice. Landlord acknowledges that some Tenant defaults may
not be capable of cure by a Holder of Leasehold Mortgage, such as the
bankruptcy of the Tenant. Landlord agrees that Tenant defaults which are by
their nature impossible to cure by a Holder of Leasehold Mortgage shall not be deemed
a basis for termination of this Lease so long as all other defaults which are
capable of cure are cured in accordance with this Section.

 

8

 

(d)           Landlord agrees that this Lease shall
not be hereafter modified or amended without the prior written consent of each
Holder of Leasehold Mortgage to:

 

(i)            Increase the Annual Rent or additional rent (except with
regard to increases now provided in the Lease);

 

(ii)           Change the legal description of the Premises from that now
set forth in this Lease;

 

(iii)          Shorten the term or any renewal term of this Lease, except
as now permitted by this Lease;

 

(iv)          Change the permitted use of the Premises; or

 

(v)           Impose any additional obligations upon Tenant.

 

Landlord further covenants
and agrees not to accept a surrender of the Premises or a cancellation or
release of this Lease from Tenant (except pursuant to the exercise of Landlord’s
remedies provided herein if an event of default occurs) prior to the expiration
or earlier termination thereof without the prior written consent of each Holder
of Leasehold Mortgage.

 

(e)           If Landlord exercises Landlord’s
right to terminate this Lease as provided in Article 20 hereof, then each
Holder of Leasehold Mortgage shall have the right to notify Landlord in
writing, within thirty (30) days after the effective date of written notice
from Landlord to each Holder of Leasehold Mortgage, that such one or more
Holders of Leasehold Mortgage or any designee or nominee thereof elects to
lease the Premises from the date of such termination of this Lease for the
remainder of the scheduled term of this Lease, including the option terms, at
the rent and upon the other same terms, covenants and conditions that are
herein set forth, with the same relative priority as this Lease and having the
benefit of investing in such one or more Holder(s) of Leasehold Mortgage
or any designee or nominee thereof of all of the rights, title, interests,
powers and privileges of Tenant hereunder. If such one or more Holder(s) of
Leasehold Mortgage elects to obtain such new lease, then such Holder(s) of
Leasehold Mortgage shall be obligated, within thirty (30) days after delivery
to Landlord of such notice of election, to (i) cure the default upon which
such termination was based, or in respect to any default not capable of being
cured within such thirty (30) day time period or which cannot be cured without
entry and possession to proceed and effectuate such cure with due diligence
following delivery of possession (excluding, however, Tenant defaults which by
their nature are impossible to cure); (ii) pay to Landlord all Annual
Rent  including interest, all late
penalties, and all items of additional rent due and payable under this Lease up
to and including the date of commencement of the term of such new lease; and (iii) pay
to Landlord all expenses and reasonable attorney’s fees incurred by Landlord in
connection with any such default and termination and with the preparation,
execution and delivery of such new lease. 
Upon such performance by such one or more Holder(s) of Leasehold
Mortgage or any designee or nominee thereof, such parties shall have the same
relative priority as this Lease and having the benefit of all the rights,
titles, interests, powers and privileges of Tenant hereunder, including,
specifically, automatic vesting of title to all improvements as well as all
equipment, fixtures and machinery therein, until the expiration of the term of
this Lease unless this Lease shall thereafter be sooner 

 

9

 

terminated. Such Holder(s) of
Leasehold Mortgage or any designee or nominee thereof shall be obligated under
such new lease and agree in writing that promptly following the delivery of the
new lease, such Holder(s) of Leasehold Mortgage or its designee will
perform or cause to be performed all of the other covenants and agreements
herein contained on Tenant’s part to be performed.

 

(f)            Unless excused by Landlord, if any
assignee or transferee of a Holder of Leasehold Mortgage or new lessee deriving
rights from the Holder of Leasehold Mortgage fails to cure any of the Tenant’s
defaults within one hundred twenty (120) days from the effective date of such
assignment, transfer or new lease, this Lease and the lease rights hereunder
and under any such new lease shall terminate forthwith at Landlord’s option and
in Landlord’s sole and absolute discretion, such option to be exercised by
sending written notice to the assignee or transferee that the new lease has
been terminated pursuant to this provision.

 

(g)           Landlord agrees to execute and
deliver any and all consents and other documents (including reasonable
modifications to this Lease) reasonably requested by Tenant and/or one or more Holder(s) of
Leasehold Mortgage so long as such documents are reasonably consistent with the
provisions of this Section 6.02.

 

(h)           Notwithstanding any provision in this
Article 6 or elsewhere in this Lease to the contrary, Tenant may, in its
sole discretion, enter into lease financing, conventional financing and other
arrangements in connection with the acquisition, lease and disposal of the
equipment and/or personal property including, without limitation, leasing of
equipment and/or personal property from another with an option to purchase at
the end of the lease term and assignment of Tenant’s interests in the equipment
and/or personal property, if required, as security for these transactions.

 

(i)            Nothing herein shall be deemed to
relieve, impair, release, or discharge Tenant of its obligations to fully
perform the terms of this Lease on Tenant’s part to be performed.

 

(j)            Notwithstanding any provision in
this Article 6 or elsewhere in this Lease to the contrary, Tenant may, in
its sole discretion and without the consent of Landlord enter into any financing
and other arrangements which do not create a lien on the leasehold estate
created hereby, including without limitation, pledges of proceeds from all uses
of the Premises as provided in this Lease.

 

(k)           As used herein:

 

“Person” shall mean
and include an individual, corporation, partnership, joint venture, trust,
unincorporated association and any federal, state, county or municipal
government or any bureau, department or agency thereof.

 

                Section 6.03           Obligations
of Subtenants.  To the extent applicable,
Tenant shall use good faith efforts to cause the subtenants, operators,
licensees, concessionaires and other occupants of the Premises (collectively “Subtenants”)
to comply with (a) all of Tenant’s obligations under this Lease, with
respect to the space covered by the Subtenants’ sublease (hereinafter defined),
and (b) their obligations under their subleases, occupancy, license and 

 

10

 

concession agreements
(collectively “Subleases”), and Tenant shall diligently enforce all of
the rights of the Landlord thereunder in accordance with the terms of such
Subleases.  Landlord hereby agrees that all
permitted assignments, sublets and subsublets shall have the benefit of
nondisturbance and attornment as between any assignee, sublessee or
subsublessee and Landlord, either pursuant to provisions set forth in such
assignments, subleases or subsubleases or by virtue of separate nondisturbance
and attornment agreements containing customary terms and conditions, which
Landlord hereby agrees to execute within ten (10) days of receipt of
written request.

 

                Section 6.04           Tenant’s
Obligation to Cure.  The fact that a
violation or breach of any of the terms, provisions or conditions of this Lease
results from or is caused by an act or omission by any of the Subtenants shall
not relieve Tenant of Tenant’s obligation to cure the same. Tenant shall
promptly take steps to cause any such violation or breach to be cured.  Landlord hereby acknowledges that so long as
Tenant promptly takes steps to cause any such violation or breach to be cured
and diligently pursues the same until cured, such violation or breach by any of
the Subtenants shall not constitute grounds for termination of this Lease.

 

                Section 6.05           No
Waiver.  Landlord, after Default (as
hereinafter defined) by Tenant, may collect rent and all other sums due under
Subleases, and apply the net amount collected to the Rent payable by Tenant
hereunder, but no such collection shall be, or be deemed to be, a waiver of any
agreement, term, covenant or condition of this Lease or the acceptance by
Landlord of any Subtenants as Tenant hereunder, or a release of Tenant from
performance by Tenant of its obligations under this Lease.

 

                Section 6.06           Intentionally
Omitted.

 

                Section 6.07           Tenant’s
Use.  Notwithstanding Tenant’s rights
to enter into subleases of the Premises, Tenant shall throughout the term of
this Lease Agreement, use or cause the Premises to be used as agreed between
Landlord and Tenant.  The parties hereby
acknowledge that Tenant will not use or cause to be used any part of the
Premises for any unlawful conduct or purpose.

 

                Section 6.08           Mortgage
or other Security Agreement Requirements. 
No mortgage or other security agreement shall be valid or of any force
or effect respecting the Landlord unless and until a true copy of the original
of each instrument creating and effecting such mortgage or other security
agreement, certified by Tenant to be a true copy of such instrument, and
written notice containing the name and post office address of the Mortgagee,
shall have been delivered to Landlord, and the mortgage or other security
agreement shall contain substantially the following provisions:

 

“(1) The Mortgagee
agrees to send the Landlord under said Lease copies of all notices to the
Mortgagor in which the Mortgagee claims that there exists one or more defaults
under the terms and provisions of this Mortgage; said copy to be sent to the
Landlord under said Lease simultaneously with its being sent to the Mortgagor.”

 

11

 

                Section 6.09           Mortgagee;
Arbitration.  Landlord agrees that
Landlord will give any Mortgagee who shall have given Landlord a notice as
provided in Section 6.10 hereof notice of any demand by Landlord for any
arbitration, and Landlord will recognize such Mortgagee as a proper party to
participate in the arbitration.

 

                Section 6.10           Landlord
to Join in Tenant Mortgage.  Anything
to the contrary in the foregoing provisions of this Article 7
notwithstanding, in the event Tenant shall request Landlord, in writing, to
join in any mortgage, lien, pledge, grant, assignment, hypothecation or such
other conveyance, encumbering Tenant’s estate in the Premises for any term,
Landlord shall, at no cost or expense to Landlord, execute, acknowledge and
join in such mortgage.  Such mortgage
shall, however, be fully non-recourse to Landlord and all of the provisions of Article 14
of this Lease respecting the non-liability and indemnification of Landlord
shall be fully applicable with respect thereto. 
The provisions of the mortgage specifying the non-recourse nature
thereof with respect to Landlord shall be satisfactory to Landlord.

 

ARTICLE 7.

INTENTIONALLY OMITTED

 

ARTICLE 8.

WASTE AND DAMAGE TO THE PREMISES

 

                Section 8.01           Tenant’s
Obligations.  Tenant, at its sole
cost and expense, throughout the Term, shall take good care of the Premises,
shall not commit or suffer, and shall use all reasonable precaution to prevent
waste, damage, or injury to the Premises. 
All repairs to the Premises made by Tenant shall be made in a manner
consistent with applicable laws, regulations and rules, and the requirements of
Tenant’s insurers.  When used in this Section 8.01,
the term “repairs” shall include all replacements, renewals, alterations and additions
deemed reasonably necessary in Tenant’s reasonable discretion.

 

                Section 8.02           No
Landlord Services.  Landlord shall
not be required to furnish any services, utilities or facilities whatsoever to
the Premises.  Landlord shall have no
duty or obligation to make any alteration, change, improvement, replacement,
restoration or repair to, or to demolish, any improvements.  Tenant assumes the full and sole
responsibility for the condition, operation, repair, alteration, improvement,
replacement, maintenance and management of the Premises and all improvements
thereon and therein.

 

ARTICLE 9.

CHANGES, ALTERATIONS AND ADDITIONS

 

Tenant may 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 or destroy any existing improvements, whether voluntarily or in
connection with a repair or restoration required by this Lease (collectively, “Capital
Improvements”), subject to the following:

 

(a)           If any contemplated Capital
Improvement shall not be covered by Tenant’s insurance policies, then no such
Capital Improvement shall be undertaken until Tenant shall have delivered to
Landlord insurance policies or certificates or memoranda therefor issued by 

 

12

 

responsible insurers,
bearing notations evidencing the payment of premiums or accompanied by other
evidence satisfactory to Landlord of such payments, for the insurance required
by Article 3 hereof.  If under the
provisions of any casualty, liability or other insurance policy or policies
then covering the Premises or any part thereof any consent to such Capital
Improvement by the insurance company or companies issuing such policy or
policies shall be required to continue and keep such policy or policies in full
force and effect, Tenant shall obtain such consents and pay any additional
premiums or charges therefor that may be imposed by said insurance company or
companies prior to the commencement of the Capital Improvement, all of which
shall be carried out under the supervision of a duly licensed architect or
engineer selected by Tenant.

 

(b)           Upon the expiration or earlier
termination of this Lease Agreement, subject to any then-existing Commitments, all
Capital Improvements to all or any portion of any of the Premises shall
immediately become the property of Landlord, and Tenant agrees to fully
cooperate with Landlord in all requests made by Landlord in connection with the
immediate transfer of all such improvements to the Landlord.

 

ARTICLE 10.

REQUIREMENTS OF PUBLIC AUTHORITIES AND

OF INSURANCE UNDERWRITERS AND POLICIES

 

Tenant, at its sole cost and
expense, promptly shall use all reasonable efforts to utilize 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
authority 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.  Tenant also shall use good faith efforts to
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 Agreement to the contrary, the parties hereby
acknowledge that the Nation and SNFGC are subject only to Requirements of the
Seneca Nation and that the Nation and SNFGC voluntarily comply with certain
Requirements of the Seneca Nation and the federal government of the United
States.

 

ARTICLE 11.

INTENTIONALLY OMITTED

 

ARTICLE 12.

DISCHARGE OF LIENS

 

                Section 12.01         Discharge
of Liens.  Except for any customary
utility easements, restrictive easement agreements, Mortgages or otherwise set
forth in Section 6.02, neither 

 

13

 

Landlord nor Tenant shall
create or permit to be created any lien, encumbrance or charge upon the Land 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 12.02         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 13.

LIMITED OBLIGATIONS OF THE PARTIES; INDEMNITY

 

                Section 13.01         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 13.02         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 13.03         No
Landlord Liability/Indemnification.

 

(a)           All covenants, stipulations,
promises, agreements and obligations of Landlord contained in this Lease
Agreement shall be deemed to be the covenants, stipulations, promises,
agreements and obligations of the Landlord and not of any member, officer,
agent, servant or employee of the Landlord 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 Landlord or any successor public benefit
corporation or political subdivision or any person executing this Lease
Agreement on behalf of the Landlord, either directly or through the Landlord or
any successor public benefit corporation or political subdivision.  It is expressly understood that this Lease
Agreement is a corporate obligation, 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 Landlord 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 employee under or by reason of the obligations, covenants or
agreements contained in this Lease Agreement or implied therefrom are, to the 

 

14

 

extent permitted by law,
expressly waived and released as a condition of, and as a consideration for,
the execution of this Lease Agreement.

 

(b)           The obligations and agreements of the
Landlord contained herein shall not constitute or give rise to a general
obligation of the Landlord, but rather shall constitute limited obligations of
the Landlord as expressly set forth in 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 Premises described
herein, 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 or any subtenant 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;

 

(v)           any failure on the part of Tenant to pay Annual Rent or to
perform or comply with any of the covenants, agreements, terms or conditions
contained in this Lease on its part to be performed or complied with and the
exercise by Landlord 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.

 

(d)           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 

 

15

 

proceeding in Landlord’s or
Tenant’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 Landlord
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 but Landlord may not enter into any
settlement of the claim, action or proceeding without the prior written consent
of Tenant which may be given or withheld at Tenant’s sole and absolute
discretion.

 

                Section 13.04         Tenant
Indemnity; Insurance.  The
obligations of Tenant under this Article 13 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 13.05         Survival.  The terms and conditions of this Article 13
shall survive the expiration or earlier termination of this Lease Agreement.

 

                Section 13.06         No
Consequential Damages.  In no event
shall either party be liable for consequential, incidental or special damages
under this Lease Agreement.

 

ARTICLE 14.

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 15.

INTENTIONALLY OMITTED.

 

ARTICLE 16.

RIGHT OF INSPECTION

 

                Section 16.01         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 16.02         No
Landlord Obligation to Repair. 
Nothing in this Article 16 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. In the
event Landlord has 

 

16

 

the right to undertake any
such work and undertakes such work, Landlord, during the progress of any such
work, may keep and store at the Premises all necessary materials, tools,
supplies and equipment for the completion of such work.  Once undertaken, Landlord shall diligently
complete such work in a timely and workmanlike manner, in a manner consistent
with each of the provisions of this Lease as applicable to Tenant as if
Landlord were the tenant.  Provided
Landlord is in compliance with the foregoing sentence, Landlord shall not be
liable for inconvenience, annoyance, disturbance, loss of business or other
damage of Tenant or any subtenant by reason of making such repairs or the
performance of any such work, or on account of bringing materials, tools,
supplies and equipment into the Premises during the course thereof and the
obligations of Tenant under this Lease shall not be affected thereby.

 

ARTICLE 17.

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 beyond all applicable notice and cure periods, then Landlord, without
waiving or releasing Tenant from any obligation of Tenant contained in this
Lease, may (but shall be under no obligation to) perform such obligation on
Tenant’s behalf.  All costs and expenses
reasonably incurred by Landlord in connection with the performance of any act
pursuant hereto together with interest thereon at the Default Rate from the
respective dates of Landlord’s making demand to Tenant of each such payment of
each such sum, cost, expense, charge, payment or deposit, shall be paid by
Tenant to Landlord within twenty (20) business days of demand therefor provided
Landlord’s demand shall be accompanied by a reasonably detailed statement
setting forth such expenditures, the reasons therefor and reasonably detailed invoices
and/or receipts evidencing such expenditures. 
Such amounts due from Tenant shall be Rent under this Lease.  Any payment or performance by Landlord
pursuant hereto shall not be nor be deemed to be a waiver or release of the
breach or default of Tenant with respect thereto or of the right of Landlord to
terminate this Lease, institute summary proceedings or take such other action
as may be permissible hereunder if an Event of Default (as hereinafter defined)
by Tenant shall have occurred.

 

ARTICLE 18.

PERMITTED USE; NO UNLAWFUL OCCUPANCY

 

Subject to the provisions of
applicable law of this Lease, Tenant shall cause the Premises to be used as
agreed to by Landlord and Tenant.  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.

 

ARTICLE 19.

EVENTS OF DEFAULT, CONDITIONAL LIMITATIONS, REMEDIES

 

                Section 19.01         Event
of Default.  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 thirty (30) business days after
receipt of written notice from Landlord that Tenant has failed to 

 

17

 

pay such installment once
the same has become due and payable and remains unpaid following such thirty (30)
business day period;

 

(b)           Subject to Force Majeure, Tenant’s
determination that operation of the Premises is not economically feasible, or
except during Tenant’s construction, alteration or repair of improvements on
the Premises, Tenant shall fail, for a period of sixty (60) consecutive
business days following receipt of notice from Landlord, to use the Premises
for agreed upon activities;

 

(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 6.01
of this 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  Tenant shall file any petition or answer
seeking, consenting to or acquiescing in any reorganization, arrangements,
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 twenty (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 proves 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).

 

18

 

                Section 19.02         Tenant
Default; Payment of Rent and Termination of Lease.  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 the Lease; and Tenant shall then
quit and surrender the Premises (including all improvements therein and
thereon) to Landlord, and all unpaid Rent shall be immediately due and Tenant
shall immediately pay the full amount of such unpaid Rent to Landlord.  Upon payment in full of such amounts to the
Landlord, Landlord and Tenant shall be released from any and all further
obligations under this Lease, except those that are expressly provided for as
surviving the termination thereof. The terms of this Section 19.02 shall
survive the termination of this Lease.

 

                Section 19.03         Intentionally
omitted.

 

                Section 19.04         No
Reinstatement.  No receipt of monies
by Landlord from Tenant after the termination of this Lease, or after the
giving of any notice of the termination of this Lease (unless such receipt
cures the Event of Default which was the basis for the notice), shall
reinstate, continue or extend the Term or affect any notice theretofore given
to Tenant, or operate as a waiver of the right of Landlord to enforce the
payment of Rent payable by Tenant hereunder. 
After the service of notice to terminate this Lease, Landlord may
demand, receive and collect any moneys due or thereafter falling due without in
any manner affecting such notice, all such monies collected being deemed
payments on account of the use and occupation of the Premises or, at the
election of Landlord, on account of Tenant’s liability hereunder.

 

                Section 19.05         Strict
Performance.  No failure by Landlord
to insist upon the strict performance of any covenants agreement, term or
condition of this Lease or to exercise any right or remedy consequent upon a
breach thereof, and no acceptance of full or partial Rent during the
continuance of any such breach, shall constitute a waiver of any such breach or
of such covenant, agreement, term or condition. 
No covenant, agreement, term or condition of this Lease to be performed
or complied with by Tenant, and no breach thereof, shall be waived, altered or
modified except by a written instrument executed by Landlord.  No waiver of any breach shall affect or alter
this Lease, but each and every covenant, agreement, term and condition of this
Lease shall continue in full force and effect with respect to any other then
existing or subsequent breach thereof.

 

                Section 19.06         Remedies
Cumulative.  Each right and remedy of
Landlord provided for in this Lease shall be cumulative and shall be in
addition to every other right or remedy provided for in this Lease and the
exercise or beginning of the exercise by Landlord of any one or more of the
rights or remedies provided for in this Lease shall not preclude the
simultaneous or later exercise by Landlord of any or all other rights or
remedies provided for in this Lease.

 

                Section 19.07         Landlord’s
Costs and Expenses.  Tenant shall pay
to Landlord all reasonable costs and expenses, including, without limitation,
reasonable attorneys’ fees and disbursements, incurred by Landlord in any
action or proceeding to which Landlord may be made a party by reason of any act
or omission of Tenant hereunder provided the Landlord is the 

 

19

 

prevailing party in such
action.  Tenant also shall pay to
Landlord all reasonable costs and expenses, including without limitation,
reasonable attorneys’ fees and disbursements, incurred by Landlord in enforcing
any of the covenants and provisions of this Lease and incurred in any action
brought by Landlord against Tenant on account of the provisions hereof, and all
such reasonable costs, expenses, and reasonable attorneys’ fees and
disbursements may be included in and form a part of any judgment entered in any
proceeding brought by Landlord against Tenant on or under this Lease provided
the Landlord is the prevailing party in such action.  All of the sums paid or obligations incurred
by Landlord as aforesaid, with interest and costs, shall be paid by Tenant to
Landlord promptly upon demand.

 

                Section 19.08         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 Annual 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 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 

 

20

 

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 20.

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,
New York 14801

Attn:
 President

 

and

 

Seneca
Nation of Indians

P.O. Box
231

Salamanca,
New York 14779

Attn:
 Treasurer

 

and

 

Seneca
Nation of Indians

P.O. Box
231

Salamanca,
New York 14779

Attn:  Department of Justice

 

(b)           To Tenant:

 

Seneca
Niagara Falls Gaming Corporation

310
Fourth Street

Niagara
Falls, New York 14302-0777

Attn:
 President and CEO

 

21

 

With
a copy to:

 

Seneca
Niagara Falls Gaming Corporation

310
Fourth Street

Niagara
Falls, New York 14302-0777

Attn:  General Counsel

 

 

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 21.

TERMINATION

 

Tenant and Landlord shall
each have the right to terminate the Lease in its entirety at any time after
the date of the Lease, by giving the other party at least ninety (90) days
advance written notice (the “Termination Notice”) that such party
intends to terminate the Lease effective as of the date set forth therein (the “Termination
Date”).  Tenant shall then quit and
surrender the Premises to Landlord on the Termination Date, and all unpaid Rent
through the Termination Date shall be immediately due and Tenant shall
immediately pay the full amount of such unpaid Rent through the Termination
Date to Landlord.  Upon payment in full
of such amounts to the Landlord, Landlord and Tenant shall be released from any
and all further obligations under this Lease, except those that are expressly provided
for as surviving the termination thereof. The terms of this Article 21
shall survive the termination of this Lease.

 

ARTICLE 22.

INTENTIONALLY OMITTED

 

ARTICLE 23.

INTENTIONALLY OMITTED

 

ARTICLE 24.

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 on the Premises from injury or
damage and to support the same by proper foundations, or

 

22

 

(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 on 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 Rent
payable by Tenant hereunder unless such claim arises from Landlord’s gross
negligence or intentional misconduct.

 

ARTICLE 25.

CERTIFICATES BY LANDLORD AND TENANT

 

                Section 25.01         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 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 25.02         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 26.

INTENTIONALLY OMITTED

 

ARTICLE 27.

ENTIRE AGREEMENT

 

This Lease contains 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.

 

23

 

ARTICLE 28.

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 Landlord, except those encumbrances created or suffered by Tenant
and those as to which this Lease is subject and subordinate.

 

ARTICLE 29.

DISPUTES

 

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

 

ARTICLE 30.

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.

 

ARTICLE 31.

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 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 32.

TENANT’S CHARTER

 

Nothing contained in this
Lease Agreement shall be construed as modifying or amending the charter of the
SNFGC, as may be from time to time amended, nor granting in advance any
approvals that are otherwise required under the charter.

 

ARTICLE 33.

MISCELLANEOUS

 

                Section 33.01         Captions.  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.

 

24

 

                Section 33.02         Table
of Contents.  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 33.03         Plurals.  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 33.04         Execution
of Documents.  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 33.05         No
Merger.  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 Land 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 Land.

 

                Section 33.06         No
Broker.  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 33.07         Changes
of Lease.  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 33.08         Governing
Law.  This Lease shall be interpreted
and construed in accordance with the laws of the Seneca Nation of Indians.

 

                Section 33.09         Successors
and Assigns.  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 33.10         No
Violations.  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.

 

                Section 33.11         References.  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 33.12         Severable.  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 

 

25

 

each term and provision of
this Lease shall be valid and be enforced to the fullest extent permitted by
law.

 

                Section 33.13         No
Abatement.  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 33.14         Substitution.  Where Tenant is required to do or accomplish
any act or thing hereunder, Tenant may cause the same to be done or
accomplished by others with the same force and effect as if done or
accomplished by Tenant.

 

                Section 33.15         Lease
to Run With Land.  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 33.16         Force
Majeure.  The obligations of Landlord
and Tenant to perform their respective covenants hereunder, other than, and
exclusive of, Tenant’s obligation to pay 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 33.17         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 Land 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 Land, (iii) execute petitions to have the Land
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 Land).

 

REMAINDER OF PAGE LEFT
BLANK INTENTIONALLY

 

26

 

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

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SENECA NATION OF INDIANS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Maurice A. John, Sr.

  
	
   

  	
   

  	
  Name: Maurice A.
  John, Sr.

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SENECA NIAGARA FALLS GAMING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ E.
  Brian Hansberry

  
	
   

  	
   

  	
  Name: E. Brian Hansberry

  
	
   

  	
   

  	
  Title: President and CEO

  

 

27

 

 

Exhibit A

 

Description of Premises
Leased for SNFGC Use

 

All land owned or hereafter
owned by Landlord within the +/- 50 acre “footprint” described in Appendix I of
the Nation—State Compact between Landlord and the State of New York, together
with all Landlord-owned improvements thereon, including the structures formerly
known as the Niagara Falls Convention Center and Lackey Plaza, and the office
building currently known as the Seneca Office Building.

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