Document:

Exhibit 4.05

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS
SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A
TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS SECURITY IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO
THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE CO., HAS AN INTEREST HEREIN.

REPAYMENT OF THE NOTES IS NOT PROTECTED BY ANY
FEDERAL AGENCY OR THE SECURITIES INVESTOR PROTECTION CORPORATION

	
  NO. R-

  	
  $____________

  

 

CUSIP
NO. 524908WH9

ISIN
NO. US524908WH98

LEHMAN BROTHERS HOLDINGS
INC.

FIXED AND FLOATING RATE
SUBORDINATED NOTE DUE 2032

Lehman Brothers Holdings Inc., a corporation duly
organized and existing under the laws of the State of Delaware (herein referred
to as the “Company”), for value received, hereby promises to pay to CEDE & CO.,
or registered assigns, at the office or agency of the Company in the Borough of
Manhattan, the City of New York, the principal sum of _________________ DOLLARS
on May 3, 2032, in such coin or currency of the United States of America
as at the time of payment shall be legal tender for the payment of public and
private debts, and to pay interest on said principal sum at said office or
agency, in like coin or currency, from and including May 1, 2007 to but
excluding May 3, 2027 at the rate per annum of 6.00%, and from and
including May 3, 2027 to but excluding May 3, 2032 at the rate of
3-month LIBOR (Reuters Screen LIBOR01 Page) plus 0.78% until the principal
hereof becomes due and payable, and on any overdue principal and (to the extent
that payment of such interest is enforceable under applicable law) on any
overdue installment of interest at the same rate per annum during the period in
which such principal is overdue, compounded quarterly at the rate of 3-month
LIBOR plus 0.78%, to the registered holder of this Note, until payment of said
principal sum has been made or duly provided for.

“Interest
Reset Date” means May 3, 2027 and each Floating Rate Interest Payment
Date.

 

“Interest
Determination Date” means two London banking days before each Interest Reset
Date.

“Calculation
Agent” means Lehman Brothers Inc., in its capacity as calculation agent.

With
respect to an Interest Determination Date, LIBOR will be the offered rate for
deposits in U.S. dollars for the 3-month period (commencing on the Interest
Reset Date) which appears on the display designated as page “LIBOR01” on the
Reuters Monitor Money Rates Service, or any successor service or page for the
purpose of displaying London interbank offered rates of major banks (the “Reuters
Screen LIBOR01 Page”), at approximately 11:00 A.M., London time, on such
Interest Determination Date.

With
respect to an Interest Determination Date on which no rate appears on the
Reuters Screen LIBOR01 Page, as specified above, the Calculation Agent will
request the principal London office of each of four major banks in the London
interbank market, as selected by the Calculation Agent after consultation with
the Company, to provide the Calculation Agent with its offered quotation for
deposits in U.S. dollars for the 3-month period (commencing on the Interest
Reset Date) to prime banks in the London interbank market at approximately
11:00 A.M., London time, on such Interest Determination Date in a
principal amount that is representative of a single transaction in such market
at such Interest Determination Date.  If
two or more quotations are provided on such Interest Determination Date, LIBOR
in respect of such Interest Determination Date will be the arithmetic mean of
such quotations. If fewer than two such quotations are provided, LIBOR in
respect of such Interest Determination Date will be the arithmetic mean of the
rates quoted on such Interest Determination Date by three leading European
banks selected by the Calculation Agent after consultation with the Company for
loans in U.S. dollars to leading European banks, for the 3-month period
(commencing on the Interest Reset Date) of in a principal amount that is
representative of a single transaction in such market at such time, provided,
however, that if the European banks selected as aforesaid by the Calculation
Agent are not quoting as mentioned in this sentence, LIBOR for the applicable
period will be LIBOR as in effect on such Interest Determination Date.  If there was no LIBOR Rate in effect on
such Interest Determination Date, the LIBOR Rate will be the initial interest
rate. The applicable principal
financial center will be New York City and the approximate time for which
quotes for loans in U.S. dollars would be requested from New York City banks
will be 3:00 p.m., New York City time.

The Stated Maturity of the Note shall be May 3,
2032. From May 1, 2007 to and including May 3, 2027, interest on this
Note (computed as set forth herein) shall be payable semi-annually in arrears
on May 3 and November 3 of each year (each a “Fixed Rate Interest Payment
Date”), commencing November 3, 2007, from the Fixed Rate Interest Payment
Date next preceding the date of this Note to which interest has been paid or
duly provided for. From but excluding May 3, 2027 to and including the
Stated Maturity of the Note, interest on this Note (computed as set forth
herein) shall be payable quarterly in arrears on February 3, May 3,
August 3 and November 3 of each year (each a “Floating Rate Interest
Payment Date”), commencing August 3, 2027, from the Floating Rate Interest
Payment Date next preceding the date of this Note to which interest has been
paid or duly provided for. Interest on this Note shall be payable to the holder
in whose name the Note is registered at the close of business on the applicable
Record Date. The Record Date for any Fixed Rate Interest Payment Date or
Floating Rate Interest Payment Date for the Note will be the date, whether or
not a Business Day, 15 calendar days immediately preceding the Interest
Payment Date. Notwithstanding the foregoing, from May 1, 2007 to and
including May 3, 2027, any Fixed Rate Interest Payment Date that would
otherwise be a day that is not a Business Day shall instead be the next
succeeding Business Day, no additional interest shall accrue as a result of
such delayed payment, and interest on the Note shall be computed on the basis
of a 360-day year of twelve 30-day months. Notwithstanding the foregoing, from
but not including May 3, 2027 to and including the Stated Maturity of the
Note, any Floating Rate Interest Payment Date other than the Stated Maturity of
the Note that would otherwise be a day that is not a Business Day shall instead
be the next 

 

 2
 

succeeding Business Day, unless such next Business
Day falls in the next calendar month in which case such payment shall be made
on the immediately preceding day that is a Business Day, and interest shall
accrue to the date that interest is actually paid, and interest on the Note
shall be computed on the basis of a 360-day year and the actual number of days
elapsed in each floating rate interest period. With respect to the period from
but excluding May 3, 2027 to and including the Stated Maturity of the
Note, Business Day shall also be a London Business Day. A “London Business Day”
means any day that is not a Saturday or Sunday and on which dealings in
deposits in U.S. dollars are transacted, or with respect to any future date are
expected to be transacted, in the London interbank market.

REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS
NOTE SET FORTH ON THE REVERSE HEREOF. SUCH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH AT THIS PLACE.

This Note shall not be valid or become obligatory
for any purpose until the certificate of authentication hereon shall have been
signed by the Trustee under the Indenture referred to on the reverse hereof.

 

 3
 

IN WITNESS WHEREOF, LEHMAN BROTHERS HOLDINGS INC.
has caused this instrument to be signed by its Chairman of the Board, its Vice
Chairman, its President, its Chief Financial Officer, one of its Vice
Presidents or its Treasurer by manual or facsimile signature under its
corporate seal, attested by its Secretary or one of its Assistant Secretaries
by manual or facsimile signature.

 

	
   

  	
  LEHMAN BROTHERS HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

Dated:

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 4

 

(Reverse of Note)

LEHMAN BROTHERS HOLDINGS
INC.

FIXED AND FLOATING RATE
SUBORDINATED NOTE, DUE 2032

This Note is one of a duly authorized series of
Securities of the Company designated as the Fixed and Floating Rate
Subordinated Notes Due 2032 of the Company (herein called the “Notes”), limited
(except as otherwise provided in the Indenture referred to below) in aggregate
principal amount to $750,000,000.  The
Notes are one of an indefinite number of series of debt securities of the
Company (herein collectively called the “Securities”), issued or issuable under
and pursuant to an indenture, dated as of February 1, 1996, as amended and
supplemented from time to time and as amended and supplemented with respect to
the Notes herein by the Tenth Supplemental Indenture dated as of May 1, 2007
between the Company and the Trustee (as so amended and supplemented, the “Indenture”),
between the Company and The Bank of New York, successor trustee to JPMorgan
Chase Bank, N.A., as Trustee (herein called the “Trustee”), to which Indenture
and all indentures supplemental thereto reference is hereby made for a
description of rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the holders of the Notes.  The separate series of Securities may be
issued in various aggregate principal amounts, may mature at different times,
may bear interest (if any) at different rates, may be subject to different
redemption provisions or repayment or repurchase rights (if any), may be subject
to different sinking, purchase or analogous funds (if any), may be subject to
different covenants and Events of Default, as defined in the Indenture, and may
otherwise vary as provided in the Indenture.

Payment of the principal of and interest on this Note
is, to the extent provided in the Indenture, subordinated and subject in right
of payment to the prior payment in full when due of the principal of (and
premium, if any) and interest, if any, on all Senior Debt, as defined in the
Indenture and this Note is issued subject to the provisions of the Indenture
with respect thereto.  In addition, upon
the dissolution, winding-up, liquidation or reorganization of the Company, this
Note is, to the extent provided in the Indenture, subordinated and subject in
right of payment to the prior payment in full when due of the principal of (and
premium, if any) and interest, if any, on all Other Financial Obligations, as
defined in the Indenture. Each registered holder of this Note, by accepting the
same, (a) agrees to and shall be bound by such provisions, (b) authorizes and
expressly directs the Trustee on his or her behalf to take such action as may
be necessary or appropriate to effectuate the subordination so provided and (c)
appoints the Trustee as his or her attorney-in-fact for any and all such
purposes.  Each registered holder hereof,
by his or her acceptance hereof, hereby waives all notice of the acceptance of
the subordination provisions contained herein and in the Indenture by each
holder of Senior Debt and Other Financial Obligations, whether now outstanding
or hereafter incurred, and waives reliance by each such holder upon said
provisions.

As provided in the Indenture and subject to certain
limitations therein set forth, the Company may at its option redeem the Notes
in whole or in part on the Redemption Date.

As provided in the Indenture
and subject to certain limitations therein set forth, the Company will pay to a
Holder who is a United States Alien such Additional Amounts as may be necessary
so that every net payment of principal of and interest on the Notes, after
deduction or withholding for or on account of any present or future tax,
assessment or other governmental charge imposed upon such Holder, or by

 5
 

reason
of the making of such payment, by the United States or any taxing authority
thereof or therein, will not be less than the amount provided for in the Notes
to be then due and payable.

As
provided in the Indenture and subject to certain limitations therein set forth,
the Notes may be redeemed at the option of the Company in whole if the Company
determines that as a result of any change in or amendment to the laws or
treaties, or any regulations or rulings promulgated thereunder, of the United
States or of any political subdivision or taxing authority thereof or therein
affecting taxation, or any proposed change in such laws, treaties or
regulations or rulings, or any change in the official application, enforcement
or interpretation of such laws, treaties or regulations or filings (including a
holding by a court of competent jurisdiction in the United States) or any other
action (other than an action predicated on law generally known on or before the
date specified in such Note except for proposals before the Congress before
such date) taken by any taxing authority or a court of competent jurisdiction
in the United States, or the official proposal of any such action, whether or
not such action or proposal was taken or made with respect to the Company, (A)
the Company has or will become obligated to pay any Additional Amounts referred
to in the foregoing paragraph pursuant to the Indenture on the Note or (B)
there is a substantial possibility that the Company will be required to pay
such Additional Amounts.

The Indenture contains provisions permitting the
Company and the Trustee, with the consent of the holders of not less than
66-2/3% in aggregate principal amount of each series of the Securities at the
time Outstanding to be affected (each series voting as a class), evidenced as
provided in the Indenture, to execute supplemental indentures adding any
provisions to, or changing in any manner or eliminating any of the provisions
of the Indenture or of any supplemental indenture or modifying in any manner
the rights of the holders of the Securities of all such series; provided,
however, that no such supplemental indenture shall, among other things, (i)
change the fixed maturity of any Security, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon
or reduce any premium payable on redemption, or make the principal thereof, or
premium, if any, or interest thereon payable in any coin or currency other than
that hereinabove provided, or amend the Indenture to modify its provisions
relating to the subordination of each Security in a manner adverse to the
holder thereof, without the consent of the holder of each Security so affected,
or (ii) change the place of payment on any Security, or impair the right to
institute suit for payment on any Security, or reduce the aforesaid percentage
of Securities, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of each Security so
affected.  It is also provided in the Indenture
that, prior to any declaration accelerating the maturity of any series of
Securities, the holders of a majority in aggregate principal amount of the
Securities of such series Outstanding may on behalf of the holders of all the
Securities of such series waive any past default or Event of Default under the
Indenture with respect to such series and its consequences, except a default in
the payment of interest, if any, on or the principal of, or premium, if any, on
any of the Securities of such series. 
Any such consent or waiver by the holder of this Note shall be
conclusive and binding upon such holder and upon all future holders and owners
of this Note and any Notes which may be issued in exchange or substitution
herefor, irrespective of whether or not any notation thereof is made upon this
Note or such other Notes.

As provided in the Indenture and subject to certain
limitations therein set forth, in case an Event of Default with respect to the Notes shall have
occurred and be continuing, the principal hereof may be declared, and upon such
declaration shall become due and payable, in the manner, with the effect and
subject to the conditions provided in the Indenture.

No reference herein to the Indenture and no
provisions of this Note or of the Indenture shall alter or impair the
obligations of the Company, which is absolute and unconditional, to pay the
principal and interest of this Note at the place, at the time and in the coin
or currency herein prescribed.

 6
 

The
Company may omit to comply with any term, provision or condition set forth in Section
801 of the Indenture, and any such omission with respect to such Section shall
not be an Event of Default, in each case with respect to the Notes, provided
that the conditions of Section 1009 of the Indenture have been satisfied.

The
covenant set forth in Section 1005 of the Indenture shall not apply to the
Notes.

Notwithstanding the provisions of Section 401(a)(B)
of the Indenture, the Company may satisfy and discharge the entire indebtedness
on all the Notes as provided therein only when the Notes are by their terms due
and payable within one year.

The Company, the Trustee, and any agent of the
Company or of the Trustee may deem and treat the registered holder hereof as
the absolute owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment hereof, or on account hereof, and for all other
purposes, and neither the Company nor the Trustee nor any agent of the Company
or of the Trustee shall be affected by any notice to the contrary.  All such payments made to or upon the order
of such registered holder shall, to the extent of the sum or sums paid,
effectually satisfy and discharge liability for moneys payable on this Note.

The Notes are issuable in registered form without
coupons in denominations of $1,000 and any multiple of $1,000.  At the option of the holders thereof, either
at the office or agency to be designated and maintained by the Company for such
purpose in the Borough of Manhattan, The City of New York, pursuant to the
provisions of the Indenture or at any of such other offices or agencies as may
be designated and maintained by the Company for such purpose pursuant to the
provisions of the Indenture, and in the manner and subject to the limitations
provided in the Indenture, but without the payment of any service charge,
except for any tax or other governmental charges imposed in connection
therewith, Notes may be exchanged for an equal aggregate principal amount of
Notes of like tenor and of other authorized denominations.

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable in the
Security Register, upon surrender of this Note for registration of transfer at
the office or agency of the Company in any place where the principal of this
Note is payable, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the holder hereof or such holder’s attorney duly authorized in
writing, and thereupon one or more new Notes of this series of like tenor and
of authorized denominations and for the same aggregate principal amount will be
issued to the designated transferee or transferees.

No recourse for the payment of the principal of or
the interest on this Note, or for any claim based hereon or otherwise in
respect hereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in the Indenture or any indenture supplemental thereto
or in any Note, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, officer or
director as such, past, present or future, of the Company or of any successor
corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or
by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

THE INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 7
 

All items used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

The following abbreviations, when used in the inscription on the face
of the within Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

	
  

  	
  TEN COM —

  	
   

  	
  as tenants in common

  
	
   

  	
  TEN ENT —

  	
   

  	
  as tenants by their entireties

  
	
   

  	
  JT TEN —

  	
   

  	
  as joint tenants with right of survivorship and

  
	
   

  	
   

  	
   

  	
  not as tenants in common

  
	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  UNIF GIFT MIN ACT —  

  	
   

  	
  Custodian 

  	
   

  	
  under Uniform Gifts to

  
	
   

  	
  (Cust)

  	
  (Minor)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Minors Act

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (State)

  	
   

  	
   

  	
   

  	
   

  
								

Additional abbreviations may also be used though not in the above list.

 8
 

 

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto

	
   

  
	
   

  
	
   

  
	
   

  

 

(Please insert social security or other identifying
number of Assignee)

	
   

  
	
   

  
	
   

  
	
   

  

(Name and address of Assignee, including zip code,
must be printed or typewritten.)

the within Note, and all rights thereunder, hereby
irrevocably constituting and appointing

	
   

  
	
   

  

 

_____________ to transfer the said Note on the books
of the Company, with full power of substitution in the premises.

Date:_____________

Signature:_______________________________________

NOTICE: The signature to this assignment must
correspond 
                                                 with
the name as it appears upon the face of the within Note in
                                                 every
particular, without alteration or enlargement or any change whatever.

Signature(s) Guaranteed:
_____________________________

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE
GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND
CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE
PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.

 

 9Exhibit
10.1

 

 

 

 

DISTRIBUTION
AGREEMENT

among

SENECA NATION OF INDIANS,

SENECA NATION OF INDIANS CAPITAL IMPROVEMENTS
AUTHORITY,

SENECA GAMING CORPORATION

and

WELLS FARGO BANK,
NATIONAL ASSOCIATION, as Trustee

dated April 27, 2007

 

 

 

 

This instrument was drafted by:

Dorsey &
Whitney LLP

250 Park Avenue

New York, New York  10177

 

TABLE OF CONTENTS

	
  PARTIES AND RECITALS

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Parties

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Recitals

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS AND
  INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
  2

  
	
  Section 1.02

  	
  Additional Provisions as to Interpretation

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE II TRANSFER AND
  PLEDGE OF PLEDGED DISTRIBUTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Transfer and Assignment by Nation of Pledged
  Distributions

  	
  7

  
	
  Section 2.02

  	
  Pledge by the Nation

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE III COVENANTS OF
  SGC

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Initial Monthly Distributions

  	
  7

  
	
  Section 3.02

  	
  Subsequent Monthly Distributions

  	
  7

  
	
  Section 3.03

  	
  Distributions during Lock-Down Event of Default

  	
  7

  
	
  Section 3.04

  	
  No Other Distributions

  	
  8

  
	
  Section 3.05

  	
  Calculation of Income Available for Distribution

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV COVENANTS OF THE
  NATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Pledged Distributions

  	
  8

  
	
  Section 4.02

  	
  Payment of Taxes

  	
  8

  
	
  Section 4.03

  	
  Maintenance of Properties

  	
  8

  
	
  Section 4.04

  	
  Maintenance of Insurance

  	
  8

  
	
  Section 4.05

  	
  Compliance with Laws

  	
  9

  
	
  Section 4.06

  	
  Gaming Licenses

  	
  9

  
	
  Section 4.07

  	
  Notices of Violations

  	
  9

  
	
  Section 4.08

  	
  Legal Existence

  	
  10

  
	
  Section 4.09

  	
  Mergers, Etc

  	
  10

  
	
  Section 4.10

  	
  Contractual Obligations

  	
  10

  
	
  Section 4.11

  	
  Sovereign Immunity, Jurisdiction and Venue

  	
  10

  
	
  Section 4.12

  	
  Financial Statements

  	
  10

  
	
  Section 4.13

  	
  Further Assurances, Financing Statements,
  Maintenance of Lien

  	
  11

  
	
  Section 4.14

  	
  Concerning the Pledged Distributions

  	
  11

  
	
  Section 4.15

  	
  Continued Operation of the Class III Gaming

  	
  11

  
	
  Section 4.16

  	
  Operation of Class II Gaming

  	
  11

  
	
  Section 4.17

  	
  Ownership of SGC and Restricted Subsidiaries

  	
  11

  
	
  Section 4.18

  	
  Gaming Compliance/Termination

  	
  11

  
	
  Section 4.19

  	
  Operating Lease Payments

  	
  11

  
	
  Section 4.20

  	
  Covenant to Provide Information

  	
  12

  
				

 

 i
 

 

	
  Section 4.21

  	
  Governmental Actions; Taxes

  	
  12

  
	
  Section 4.22

  	
  Capital Expenditures

  	
  13

  
	
  Section 4.23

  	
  Affiliate Transactions

  	
  13

  
	
  Section 4.24

  	
  Tax-Free Nature of Series 2007-A Bonds

  	
  13

  
	
  Section 4.25

  	
  Existence of Authority

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE V COVENANTS OF THE
  AUTHORITY

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Pledged Distributions; Distributions

  	
  14

  
	
  Section 5.02

  	
  Concerning the Pledged Distributions

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI EVENTS OF
  DEFAULT AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default

  	
  14

  
	
  Section 6.02

  	
  Enforcement of Covenants and Conditions

  	
  16

  
	
  Section 6.03

  	
  Limited Recourse

  	
  16

  
	
  Section 6.04

  	
  No Recourse to SGC

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII GOVERNING LAW;
  ARBITRATION; SOVEREIGN IMMUNITY

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Governing Law

  	
  16

  
	
  Section 7.02

  	
  Limited Waiver of Sovereign Immunity; Jurisdiction

  	
  16

  
	
  Section 7.03

  	
  Dispute Resolution.

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Covenants to Bind Successors and Assigns

  	
  21

  
	
  Section 8.02

  	
  Immunity of Officers

  	
  22

  
	
  Section 8.03

  	
  No Benefits to Outside Parties

  	
  22

  
	
  Section 8.04

  	
  Severability of Provisions

  	
  22

  
	
  Section 8.05

  	
  Execution in Counterparts

  	
  22

  
	
  Section 8.06

  	
  Headings Not Controlling

  	
  22

  
	
  Section 8.07

  	
  Notices, etc. to Trustee, Nation, Authority and SGC

  	
  22

  
	
  Section 8.08

  	
  Amendments

  	
  23

  
				

 

 ii

DISTRIBUTION AGREEMENT

This DISTRIBUTION AGREEMENT, dated as of the 27th day
of April, 2007, by and among the SENECA NATION OF INDIANS, a federally
recognized and sovereign Indian Nation (the “Nation”), SENECA NATION OF INDIANS
CAPITAL IMPROVEMENTS AUTHORITY, a governmental instrumentality of the Nation
(the “Authority”), SENECA GAMING CORPORATION, a tribally chartered corporation
wholly-owned by the Nation (“SGC”) and WELLS FARGO BANK, NATIONAL ASSOCIATION,
a national banking association with trust powers (the “Trustee”);

WITNESSETH:

WHEREAS, the Authority has been established by the
Nation for the purpose of acquiring, constructing, financing, operating and
maintaining such capital improvements of the Nation as may from time to time be
designated by the Nation’s Council; and

WHEREAS, as directed by the Nation’s Council, the
Authority has determined to finance certain capital improvements of the Nation
(the “Projects”); and

WHEREAS, the Authority has determined to finance all
or a portion of the Projects through the issuance of bonds payable solely from
and with recourse limited to, the Trust Estate (as defined herein); and

WHEREAS, in order to finance some or all of the costs
of the Projects, the Authority has determined to enter into a Trust Indenture
dated as of April 27, 2007 between the Authority and the Trustee (the “Indenture”)
and has duly authorized and directed the issuance of two series of bonds in the
aggregate principal amount of $159,495,000 to be designated “Special Obligation
Bonds,” one series, designated Series 2007-A (tax-exempt), to be issued in the
aggregate principal amount of $119,495,000 (consisting of $32,800,000 aggregate
principal amount due 2016 (the “Series 2007-A Bonds due 2016”), and $86,695,000
aggregate principal amount due 2023 (the “Series 2007-A Bonds due 2023”)) and
one series, designated Series 2007-B (taxable), to be issued in the aggregate
principal amount of $40,000,000 (the Series 2007-A Bonds, the Series 2007-B
Bonds and any Additional Bonds issued under the Indenture being collectively
referred to herein as the “Bonds”), thereunder; and

WHEREAS, SGC is an instrumentality of the Nation
which, together with its three wholly-owned subsidiaries (also
instrumentalities of the Nation), conducts all aspects of the Nation’s Gaming
Enterprise (as defined herein); and

WHEREAS, SGC makes Distributions (as defined herein)
attributable to operations of the Gaming Enterprise; and

WHEREAS, the Nation has determined to transfer and
assign a sufficient amount of the Distributions distributed to it by SGC to the
Authority in order to provide for the Authority’s payment of the principal of,
premium, if any, and interest on the Bonds; and

WHEREAS, as security for the Bonds, the Authority has
determined to pledge all of its right, title and interest in the Pledged
Distributions (as defined herein) to the Trustee; and

 1
 

WHEREAS, it is a condition for the issuance of the
Bonds under the Indenture that the Nation, the Authority and SGC enter into
this Agreement with the Trustee.

NOW, THEREFORE, THIS AGREEMENT WITNESSETH:

ARTICLE I

DEFINITIONS
AND INTERPRETATION

Section 1.01     Definitions.  Unless the context otherwise requires, the
terms defined in this Article I and in the recitals and succeeding Articles of
this Agreement shall, for all purposes of this Agreement have the meanings
herein specified, such definitions to be equally applicable to both the
singular and plural forms of any of the terms defined:

“Affiliate” of any specified Person means any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person.  For the purposes of this definition, “control”
when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

“Affiliate Contract” has the meaning given in Section
4.23.

“Affiliate Transaction” has the meaning assigned to it
in the SGC Indenture.

“Arm’s Length Contract” has the meaning given in Section
4.23.

“Authority” has the meaning assigned to it in the
Recitals.

“Bond Fund” means the Bond Fund established under
Section 5.01 of the Indenture.

“Bonds” has the meaning assigned to it in the
Recitals.

“Buffalo Creek Territory” means approximately nine
acres of land located on the Nation’s Buffalo Creek Territory in Buffalo, New
York within the boundaries of Michigan Avenue, Perry Street, Marvin Street and
South Park Avenue.

“Capital Expenditures” means all amounts that would,
in accordance with GAAP, be included on the financial statements of a Person as
additions to property, plant and equipment on a statement of cash flows for such
Person in respect of (a) the acquisition, construction, improvement,
replacement or betterment of land, buildings, machinery, equipment or of any
other fixed assets or leaseholds, (b) to the extent related to and not included
in clause (a), materials and contract labor (excluding expenditures properly
chargeable to repairs or maintenance in accordance with GAAP), and (c) other
capital expenditures and other uses recorded as capital expenditures or similar
terms having substantially the same effect.

“Capital Stock” has the meaning assigned to it in the
SGC Indenture.

 2
 

“Class II Gaming” has the meaning assigned to it in
IGRA.

“Class III Gaming” has the meaning assigned to it in
IGRA.

“Closing Date” means the date on which the initial
series of Bonds are issued and delivered to the initial purchaser thereof.

“Code” means the Internal Revenue Code of 1986, as now
or hereafter amended.

“Compact” means the Nation-State Gaming Compact
between the Seneca Nation of Indians and the State of New York, dated as of August
18, 2002, deemed approved by the Secretary of the Interior as of December 9,
2002, as amended, and as it may be further amended, extended, renewed or
replaced from time to time.

“Compact Exclusivity Fee Payments” means the payments
that the Nation is required to make to the State of New York under Section 12
of the Compact.

“Constitution” means the Constitution of the Seneca
Nation of Indians of 1848, as amended.

“Contractual Obligation” of any Person means any
indenture, note, lease, loan agreement, security, deed of trust, mortgage,
security agreement, guaranty, instrument, contract, agreement or other form of
contractual obligation or undertaking to which such Person is a party or by
which such Person or any of its property is bound.

“Council” means the Council of the Nation identified
in Section 1 of the Constitution of the Nation, or its successor governing body
of the Nation.

“Default” means any event that is, or with the passage
of time or the giving of notice or both would be, an Event of Default.

“Distributions” means all money, cash, cash and non
cash dividends and distributions, investments (whether by means of a loan,
advance or guarantee), and other amounts received by the Nation or any
Affiliate of the Nation, or by any third party for the benefit of the Nation or
any Affiliate of the Nation (excluding Distributions received by or for the
benefit of SGC, each  Restricted
Subsidiary of SGC and the respective officers, directors and employees of each
of the foregoing) after the date hereof and derived from the operation of the
Gaming Enterprise; provided, that Distributions do not include Excluded
Payments.

“Event of Default” has the meaning given in Section 6.01.

“Exchange Act” means the Securities Exchange Act of
1934, as amended.

“Excluded Payments” means all amounts received by the
Nation or any Affiliate of the Nation (other than SGC or any Restricted
Subsidiary of SGC) after the date hereof, derived from the operation of the
Gaming Enterprise, and actually applied to the satisfaction of (a) Compact
Exclusivity Fee Payments, (b) Operating Lease Payments, (c) payments pursuant
to Permitted Affiliate Transactions or (d) reimbursement of Regulatory and
Shared Services Expenses.

 3
 

“Existing Affiliate Contract” has the meaning given in
Section 4.23.

“Fair Market Value” has the meaning assigned to it in
the SGC Indenture.

“Fiscal Year” means the fiscal year of SGC consisting
of a 12-month fiscal period ending on each September 30, or such other period
designated by SGC as its fiscal year.

“GAAP” means generally accepted accounting principles
in effect in the United States as of the date hereof.

“Gaming Authority” means any agency, authority, board,
bureau, commission, department, office or instrumentality of any nature
whatsoever of the United States, the Nation, the State of New York or any
political subdivision thereof, whether now or hereafter in existence, or any
officer or official thereof, with authority to regulate the Gaming Enterprise.

“Gaming Enterprise” means the Class III Gaming and
resort business and any activity or business incidental, related, complementary
or similar thereto, or any business or activity that is a reasonable extension,
development or expansion thereof or ancillary thereto, including without
limitation any hotel, entertainment, transportation, recreation or other
activity or business designed to promote, market, support, develop, construct
or enhance the casino gaming and resort business operated by SGC and its
Restricted Subsidiaries at the Venues.

“Gaming License” means each license, permit, franchise
or other authorization from any Gaming Authority required on the Closing Date
or at any time thereafter in order for SGC to conduct Class III Gaming at the
Venues, including all licenses granted under the Nation Gaming Ordinance, and
the regulations promulgated pursuant thereto, and other applicable federal,
state, foreign or local laws.

“Gaming Regulations” means all federal, Nation and New
York State laws, ordinances, rules, regulations and orders applicable to the
Class III Gaming at the Venues, whether now or hereafter adopted or in effect.

“Governmental Authority” means any government body or
regulatory authority exercising jurisdiction over the Gaming Enterprise.

“Holder,” “Bondholder” or “owner” whenever employed
herein with respect to a Bond means the person in whose name such Bond shall be
registered under the Indenture.

“IGRA” means the Indian Gaming Regulatory Act, Public
Law 100-497, codified as 25 U.S.C. §§ 2701-2721, as amended from time
to time.

“Income Available for Distribution” means, as to any
period, the amount of Consolidated Net Income (as defined in the SGC Indenture
as such instrument is in effect on the date hereof) for such period that,
subject to any contractual restrictions applicable to SGC, could be the subject
of a Distribution to the Nation in that period, regardless of whether such
amount was actually so distributed and without regard to any amount of
Consolidated Net Income from prior periods that could be the subject of a
Distribution in the period in question, less all Excluded 

 4
 

Payments (to the extent not already excluded in
determining Consolidated Net Income) made or required to be made in such
period.

“Indenture” has the meaning assigned to it in the
Recitals.

“Independent Financial
Advisor” means a nationally recognized accounting, appraisal or investment
banking firm or consultant in the United States that is, in the judgment of the
Trustee, qualified to perform the task for which it has been engaged (1) which
does not, and whose directors, officers and employees or Affiliates do not,
have a direct or indirect financial interest in SGC and (2) which, in the
judgment of the Trustee, is otherwise independent and qualified to perform the
task for which it is to be engaged.

“Laws” means, collectively, all federal, tribal and
state treaties, laws, rules and regulations and administrative and judicial
decisions.

“Lock-Down Event of Default” has the meaning assigned
to it in the Indenture.

“Maintenance Capital Expenditures” means Capital
Expenditures for the maintenance, repairs, restoration or refurbishment of
tangible property (real and personal), but excluding any Capital Expenditure
that expands property.

“Nation” has the meaning assigned to it in the
Recitals.

“Nation Gaming Ordinance” means the Nation Gaming
Ordinance of the Nation enacted by the Council on August 1, 2002, subsequently
amended on November 16, 2002, and August 12, 2006, and approved by the Chairman
of the National Indian Gaming Commission on November 26, 2002 and November 6, 2006.

“Nation Parties” means the Nation, the Authority and
SGC.

“Nation Territory” means the Allegany, Cattaraugus,
Oil Spring, Niagara Falls and Buffalo Creek Territories of the Nation.

“New Affiliate Contract” has the meaning given in Section
4.23.

“Niagara Territory” means the approximately 50 acres
of land in Niagara Falls, New York designated in the Compact for ownership by
the Nation.

“NIGC” means the National Indian Gaming Commission
established under IGRA.

“Operating Lease Payments” means all lease payments
made to the Nation for the use of the land and buildings used in connection
with the Gaming Enterprise.

“Outstanding,” whenever employed herein with respect
to a Bond, shall have the meaning assigned to such term in the Indenture.

“Permitted 
Affiliate Transactions” means Affiliate Transactions which are permitted
under the SGC Indenture or, should the senior notes issued under the SGC
Indenture cease to 

 5
 

represent SGC’s principal indebtedness, affiliate
transactions permitted under the indenture or credit agreement then governing
SGC’s principal indebtedness.

“Person” means any individual, corporation, limited
liability company, partnership, joint venture, association, joint stock
company, trust, unincorporated organization, government, Indian tribe or nation
or any agency or political subdivision thereof.

“Pledged Distributions” means (a) all Distributions
made by SGC pursuant, and subject to, Section 3.01 hereof and (b) to the
extent not released to the Nation in accordance with Section 3.03 hereof, all
Distributions made by SGC following the occurrence and during the continuation
of a Lock-Down Event of Default (such Distributions to be made in accordance
with, and subject to the terms of, Section 3.03 hereof).

“Purchase Agreement” has the meaning assigned to it in
the Indenture.

“Projects” has the meaning assigned to it in the
Recitals.

“Qualified Capital Stock” has the meaning assigned to
it in the SGC Indenture.

“Regulatory and Shared Services Expenses” means (i)
the SGA’s costs of regulating the Gaming Enterprise; (ii) the regulatory costs
that the Nation is required to pay to the NIGC pursuant to the IGRA and its
accompanying regulations; (iii) the regulatory costs that the Nation is
required to pay to the State of New York under the Compact; and (iv) the
reasonably allocated costs to the Gaming Enterprise of the Nation’s costs and
expenses in providing certain governmental services for the operation and
support of the Gaming Enterprise, including but not limited to the costs of
fire protection services, law enforcement services, road improvements, water
and waste treatment, and waste removal, (to avoid duplication, all to the
extent to which such items are not otherwise reflected as operating expenses of
the Gaming Enterprise).

“Restricted Subsidiary” means each of Seneca Erie
Gaming Corporation, Seneca Niagara Falls Gaming Corporation and Seneca
Territory Gaming Corporation and any of their respective permitted successors.

“SGA” means the Seneca Gaming Authority, the gaming
regulatory instrumentality of the Nation, referred to in the Compact and
created under the Nation Gaming Ordinance.

“SGC” means the Seneca Gaming Corporation, a tribally
chartered corporation wholly-owned by the Nation, and any permitted successor
to SGC.

“SGC Indenture” has the meaning given to such term in
the Indenture.

“Trust Estate” has the meaning given to such term in
the Indenture.

“Trustee” means Wells Fargo Bank, National
Association, or its successor as trustee under the Indenture.

“Venues” means the multi-amenity Class III Gaming,
food, lodging and entertainment complexes, located or to be located on the
Nation Territory.

 6
 

Section 1.02      Additional
Provisions as to Interpretation.  All
references herein to “Articles,” “Sections” and other subdivisions are to the
corresponding Articles, Sections or subdivisions of this Agreement; and the
words “herein,” “hereof,” “hereunder” and other words of similar import refer
to this Agreement as a whole and not any particular Article, Section or
subdivision hereof.

ARTICLE II

TRANSFER
AND PLEDGE OF PLEDGED DISTRIBUTIONS

Section 2.01      Transfer
and Assignment by Nation of Pledged Distributions.  The Nation hereby transfers and assigns to
the Authority all of its right, title and interest to and in the Pledged
Distributions.

Section 2.02      Pledge
by the Nation.  The Nation hereby
grants to the Trustee a security interest in, all of the Nation’s contractual
rights hereunder to enforce the obligation of SGC to make the Pledged
Distributions (whether a general intangible or payment intangible), together
with all proceeds of the foregoing.

ARTICLE III

COVENANTS
OF SGC

SGC covenants and agrees that, so long as any Bonds
are Outstanding under the Indenture, it shall and, to the extent applicable,
shall cause its Restricted Subsidiaries to:

Section 3.01      Initial
Monthly Distributions.  Subject to
any contractual restrictions applicable to SGC, make a Distribution to the
Nation on or before the 5th day of each month in an amount equal to the
amount required to be deposited by the Authority with the Trustee in that month
under Section 5.01 of the Indenture.  The
Nation and the Authority, pursuant to duly adopted resolutions, have directed
SGC to pay all Distributions made to the Nation under this section (and
assigned by the Nation to the Authority pursuant to Section 2.01 hereof)
directly to the Trustee (for the account of the Authority) for deposit to the
Bond Fund.

Section 3.02      Subsequent
Monthly Distributions.  Not make any
Distribution in any month, other than pursuant to Sections 3.01 or 3.03
hereof, until the Trustee has received the Distribution required by Section
3.01 in that month.

Section 3.03      Distributions
during Lock-Down Event of Default. 
Upon receipt by the Authority and SGC of written notice from the Trustee
that a Lock-Down Event of Default has occurred and is continuing, and until
such time as the Authority and SGC receive written notice from the Trustee that
such Lock-Down Event of Default is no longer continuing, at the direction of
the Nation and the Authority (pursuant to duly adopted resolutions), not make
any Distributions other than by paying the same to the Trustee for the account
of the Authority.  If a Lock-Down Event
of Default is cured or waived or otherwise ceases to continue, then all
Distributions paid by SGC to the Trustee pursuant to this Section 3.03
and not theretofore applied by the Trustee consistent with the terms of the
Indenture shall be released by the Trustee 

 7
 

to the Nation and upon such release such Distributions
shall no longer constitute Pledged Distributions.

Section 3.04      No
Other Distributions.   Not make any
Distributions other than Distributions made in accordance with Section 3.01,
3.02 or 3.03.

Section 3.05      Calculation
of Income Available for Distribution. 
Upon receipt of a written request from the Authority in connection with
Section 2.10 of the Indenture, provide the Authority with a calculation showing
the Income Available for Distribution for the period or periods requested by
the Authority.

ARTICLE IV

COVENANTS
OF THE NATION

The Nation covenants and agrees that, so long as any
Bonds are Outstanding under the Indenture, it shall:

Section 4.01      Pledged
Distributions.  (a)  Consistent with Section 2.01 hereof,
take any further action necessary to ensure the continuing validity and
effectiveness of its (i) transfer and assignment of all Pledged Distributions
to the Authority and (ii) grant of a security interest pursuant to Section
2.02 hereof; (b) cause SGC, subject to any contractual restrictions, to
make the Pledged Distributions required under Section 3.01 hereof and to
pay all Pledged Distributions directly to the Trustee (for the account of the
Authority) for deposit to the Bond Fund; and (c) in the event that it receives
any Distribution from SGC in contravention of Section 3.01, 3.02,
3.03 or 3.04 hereof, hold such Distribution in trust for the
benefit of the Trustee and promptly deliver such Distribution to the Trustee
for deposit in the Bond Fund.

Section 4.02      Payment
of Taxes.  Cause SGC to pay prior to
delinquency all material taxes, assessments, and governmental levies imposed
upon SGC or any of its Restricted Subsidiaries, except for any tax, assessment
or governmental levy contested in good faith and by appropriate proceeding or
where the failure to make such payment is not adverse in any material respect
to the ability of SGC to meet is obligations under this Agreement.

Section 4.03      Maintenance
of Properties.  Cause SGC to cause
all material properties used or useful in the conduct of the Gaming Enterprise
to be maintained and kept in good working condition, repair and working order
at all times (reasonable wear and tear excepted) and supplied with all
reasonably necessary equipment, and cause SGC to make all commercially
reasonable repairs, renewals, replacements, betterments and improvements
thereon.

Section 4.04      Maintenance
of Insurance.  Cause SGC to maintain
insurance with responsible carriers against such risks and in such amounts as
is customarily carried by similar businesses with such deductibles, retentions,
self insured amounts and coinsurance provisions as are customarily carried by
similar businesses of similar size, including, without limitation, property and
casualty.  Customary insurance will be
deemed to include, without limitation, the following:

 8
 

(a)           workers’ compensation insurance to
the extent required to comply with the Compact or the laws and regulations of
any applicable jurisdiction;

(b)           comprehensive general liability
insurance with minimum limits of $1,000,000 per occurrence;

(c)           umbrella or excess liability
insurance providing excess liability coverages over and above the foregoing
underlying insurance policies up to a minimum limit of $4,000,000 in the
aggregate;

(d)           business interruption insurance with
a minimum limit of at least $50,000,000; and

(e)           property insurance protecting the
property against losses and damages as is customarily covered by an “all-risk”
policy or property policy covering “special” causes of loss for a business of
similar type and size, providing coverage of not less than 100% of actual
replacement value (as determined at each policy renewal based  on the F. W. Dodge Building Index or some
other recognized means) of any improvements customarily insured consistent with
industry standards and with a deductible no greater than 2% of the insured
value of the Venues or such greater amount as is available on commercially
reasonable terms (other than earthquake or flood insurance, for which the
deductible may be up to 10% of such replacement value).

All such insurance policies will be issued by carriers
having an A.M. Best & Company, Inc. rating of A or higher and a financial
size category of not less than VII, in each case on the date each such policy
is issued to SGC, or if such carrier is not rated by A.M. Best & Company,
having the financial stability and size deemed appropriate by an opinion from a
reputable insurance broker.

Section 4.05      Compliance
with Laws.  Cause SGC to comply with
all statutes, laws, ordinances or government rules and regulations to which it
is subject, non-compliance with which would materially adversely affect the
business, prospects, earnings, properties, assets or financial condition of SGC
and its Restricted Subsidiaries taken as a whole.

Section 4.06      Gaming
Licenses.  Use its commercially
reasonable efforts to obtain and retain in full force and effect at all times
all Gaming Licenses necessary for the operation of the Gaming Enterprise;
provided that, if in the course of the exercise of its governmental or regulatory
functions the Nation is required to suspend or revoke any consent, permit or
license or close or suspend any operation or any part of any Venue as a result
of any noncompliance with the law, the Nation shall cause SGC to use its
commercially reasonable efforts to promptly and diligently correct such
noncompliance or replace any personnel causing such noncompliance so that such
Venue will be opened and fully operating.

Section 4.07      Notices
of Violations.  File with the Trustee
any Notice of Violation, Order of Temporary Closure, or Assessment of Civil
Fines, from the NIGC pursuant to 25 C.F.R. Part 573 or 575 or any successor
provision, and any written notice issued by, or cause of action commenced by,
New York State under the Compact.

 9
 

Section 4.08      Legal
Existence.  Subject to Section
4.09, cause SGC to do all things
necessary to preserve and keep in full force and effect its legal existence,
and the legal existence of each Restricted Subsidiary, in accordance with the
respective organizational documents (as the same may be amended from time to
time) of each Restricted Subsidiary and the material rights (charter and
statutory), licenses and franchises of SGC and its Restricted Subsidiaries;
provided that the Nation shall not be obligated to require SGC to preserve any
such right, license or franchise, or the corporate, partnership or other
existence of any of its Restricted Subsidiaries, if the Board of Directors of
SGC shall determine that the preservation thereof is no longer desirable in the
conduct of the business of SGC and its Restricted Subsidiaries taken as a
whole, and that the loss thereof is not adverse in any material respect to SGC’s
obligations under this Agreement.

Section 4.09      Mergers,
Etc.  Not permit SGC to consolidate with
or merge into (whether or not SGC is the surviving Person), any other entity or
to sell, convey, assign, transfer, lease or otherwise dispose of all or
substantially all of SGC’s and its Restricted Subsidiaries’ assets (determined
on a consolidated basis for SGC and its Restricted Subsidiaries) to any Person
in a single transaction or series or related transactions, unless:  either (i) SGC will be the surviving Person
or (ii) the surviving Person (if other than SGC) will be an entity organized
and existing under the laws of the Nation, and such surviving Person assumes by
a proper legal instrument the performance and observance of every covenant of
this Agreement to be performed or observed on the part of SGC.

For purposes of
this Section 4.09, the transfer by lease, assignment, sale or
otherwise, in a single transaction or series of transactions, of all or
substantially all the assets of one or more Restricted Subsidiaries, the
Capital Stock of which constitute all or substantially all the assets of SGC,
will be deemed to be the transfer of all or substantially all the assets of
SGC.

Section 4.10      Contractual
Obligations.  Not permit SGC to enter
into any Contractual Obligation after the date hereof if the terms of such
Contractual Obligation would materially adversely affect SGC’s ability to make
the Distributions described in Section 3.01 as and when required
thereunder (for the avoidance of doubt, it is agreed that contractual
restrictions comparable to those SGC is currently subject to under the SGC
Indenture shall not be deemed to materially adversely affect SGC’s ability to
make such Distributions).

Section 4.11      Sovereign
Immunity, Jurisdiction and Venue. 
Not permit SGC or the Authority to revoke or limit its limited waiver of
sovereign immunity contained in Article VII hereof or in any way attempt
to revoke or limit such limited waiver of sovereign immunity.

Section 4.12      Financial
Statements.  Furnish, without further
action on the part of the Trustee, to the Trustee and the Initial Purchaser,

(a)           not later than 90 days after the
close of each Fiscal Year of SGC, copies of annual audited consolidated
financial statements of SGC and its Restricted Subsidiaries for the preceding
Fiscal Year, prepared in accordance with GAAP consistently applied, including
balance sheet and operating statements, accompanied by an opinion of an
independent certified public accountant; and

 10
 

(b)           not later than 45 days after the
close of each fiscal quarter of SGC, a copy of the quarterly consolidated
financial statements of SGC and its Restricted Subsidiaries, for the preceding
fiscal quarter, prepared in accordance with GAAP consistently applied,
including balance sheet and operating statements, certified by the chief
financial officer of SGC;

provided, that so long as SGC files annual and
quarterly reports with the SEC, such filings shall satisfy the Nation’s
obligations under this Section 4.12.

Section 4.13      Further
Assurances, Financing Statements, Maintenance of Lien.  At the request of the Trustee, cause to be
delivered any financing statement or other instrument which is or may be
required to carry out the intent of the parties as expressed in this Agreement,
and file or cause to be filed any financing statements under the Uniform
Commercial Code or similar instruments deemed necessary by the Trustee to
perfect and continue the perfection of the security interest of the Trustee
granted hereunder.

Section 4.14      Concerning
the Pledged Distributions.  Not
create, incur or suffer to exist any lien, pledge or security interest on a
parity with, or superior to, the pledge and security interest granted by the
Authority to the Trustee in the Pledged Distributions under the Indenture, nor
waive its sovereign immunity in any manner that would create recourse to the
Pledged Distributions other than under this Agreement, the Indenture and the
Purchase Agreement.

Section 4.15      Continued
Operation of the Class III Gaming. 
Subject to Section 4.09, continue to operate the Class III Gaming
operations at the Venues only through SGC and its Restricted Subsidiaries; and
not restrict or eliminate the right of SGC to conduct Class III Gaming
operations at the Venues in a manner that would materially adversely affect the
ability of SGC to make the Distributions contemplated by Section 3.01
hereof.

Section 4.16      Operation
of Class II Gaming.  Not expand,
develop or operate its Class II Gaming operations in a manner that materially
adversely affects the ability of SGC to make the Distributions contemplated by Section 3.01
hereof.

Section 4.17      Ownership
of SGC and Restricted Subsidiaries . 
Subject to Section 4.09, maintain 100% ownership of SGC and cause
SGC to maintain 100% ownership of each of its Restricted Subsidiaries.

Section 4.18      Gaming
Compliance/Termination.  (a) At all
times comply, and cause SGC and its Restricted Subsidiaries to comply, in each
case in all material respects with, the Compact, the Constitution, the Nation
Gaming Ordinance and the Gaming Regulations; (b) promptly after receiving written
notice thereof, notify the Trustee in writing of any termination, revocation,
suspension or limitation or proposed or threatened termination, revocation,
suspension or limitation by any Governmental Authority of the authority of the
Nation, SGC or any Restricted Subsidiary to operate the Gaming Enterprise in
accordance with the Compact, and (c) not exercise any right to terminate the
Compact voluntarily pursuant to Section 4 of the Compact.

Section 4.19      Operating
Lease Payments.  (a) Upon the occurrence
and during the continuation of a Lock-Down Event of Default, not increase the
amount that SGC or any of its 

 11
 

Restricted Subsidiaries is obligated to pay as
Operating Lease Payments, and (b) at all other times, not increase the amount
that SGC or any of its Restricted Subsidiaries is obligated to pay as Operating
Lease Payments unless prior to such increase the Nation causes SGC to deliver
to the Trustee a certification demonstrating that, had such increase been in
effect for the most recent 12-month period for which financial statements of
SGC are available, the Income Available for Distribution during such period
would have been not less than 200% of the Distributions which SGC was required
to make under Section 3.01 hereof during such period; provided, however
that no certification shall be required under this Section 4.19(b) in
connection with the 3% annual increases to Operating Lease Payments effected
consistent with the terms of Section 4.13 of the SGC Indenture.

Section 4.20      Covenant
to Provide Information.  During any
period in which the SGC is not subject to Section 13 or Section 15(d) of the
Exchange Act, make available to any Holder of the Bonds in connection with any
sale thereof, and to any prospective purchaser of such Bonds from such Holder,
the information required by Rule 144(d)(4) under the Securities Act of 1933, as
amended.

Section 4.21      Governmental
Actions; Taxes.  Not, by action of
the Council, by referendum or any other means, permit its representatives,
political subunits or councils, instrumentalities or enterprises, directly or
indirectly, except as required by federal or state law or the Compact, to do
any of the following:

(a)           increase or impose any tax, fee,
charge or other payment obligation on SGC or its Restricted Subsidiaries other
than Regulatory and Shared Services Expenses and Operating Lease Payments and
payments contemplated under any agreement in effect on the date hereof (this
Section 4.21(a) does not restrict the Nation from imposing any sales, use, room
occupancy, leisure and related charges, including admissions and cabaret
charges, imposed on the patrons of the Venues; provided, however, that (i) such
charges are not imposed on SGC or its Restricted Subsidiaries, and (ii) the
rate and scope of such Nation charges shall not exceed those taxes imposed by
state or local governments in New York State in connection with similar
activities outside of Seneca Territories);

(b)           impose any tax, fee, charge or other
payment obligation with respect to the Bonds, the Indenture or any payments or
deposits to be made thereunder;

(c)           unless required by the Compact or
other applicable Law, adopt, enact, promulgate or otherwise place into effect
any statute, law, ordinance, rule or legal requirement that would have a
material adverse effect on the rights of the Trustee or the Holders of the
Bonds under this Agreement, the Indenture and the Bonds;

(d)           commingle the assets of the Gaming
Enterprise with any other assets of the Nation; or

(e)           revoke or limit its limited waiver of
sovereign immunity contained in Article VII hereof or attempt to revoke
or limit such limited waiver of sovereign immunity.

 12
 

Section 4.22      Capital
Expenditures.  Upon the occurrence
and during the continuation of a Lock-Down Event of Default, not permit SGC to
make any Capital Expenditures other than (a) Maintenance Capital Expenditures
and (b) Capital Expenditures that had been approved by the board of directors
of SGC prior to the occurrence of such Lock-Down Event of Default.

Section 4.23      Affiliate
Transactions.  Upon the occurrence and during
the continuation of a Lock-Down Event of Default, not permit SGC or any of its
Restricted Subsidiaries to make any payments pursuant to Affiliate Transactions
other than Excluded Payments; provided that:

(a)           the Nation shall not permit SGC or
any of its Restricted Subsidiaries to (i) enter into any new contract with an
Affiliate (“New Affiliate Contract”) or (ii) increase any amounts payable under
an existing contract with an Affiliate (“Existing Affiliate Contract, “and,
together with a New Affiliate Contract, an “Affiliate Contract” or “Affiliate
Contracts”);

(b)           the Nation shall not permit SGC or
any of its Restricted Subsidiaries to make any payment under or pursuant to any
Existing Affiliate Contract unless such contract, taken as a whole, is on terms
which are no less favorable to SGC or such Restricted Subsidiary, as the case may be, than would be available in a
comparable contract on an arm’s-length basis with an unaffiliated third party (“Arm’s
Length Contract”); and for purposes of this Section 4.23(b), each operating
lease and each Operating Lease Payment increase which is made consistent with
Section 4.19 hereof, together with the applicable operating lease, shall be
deemed an Arm’s Length Contract;

(c)           the Nation shall not permit SGC or
any of its Restricted Subsidiaries to increase the amounts paid under clauses
(i) or (iv) of the definition of the term “Regulatory and Shared Services
Expenses” from the amounts designated in the approved fiscal year budget in
effect at the time of the occurrence of the Lock-Down Event of Default; and

(d)           if an Existing Affiliate Contract or series of
related Existing Affiliate Contracts involves aggregate payments or other
consideration having a Fair
Market Value in excess of $3.0 million, (i) the Nation shall cause SGC or such
Restricted Subsidiary to deliver to the Trustee, within 10 Business Days of the
occurrence of the Lock-Down Event of Default, copies of any determinations
obtained by SGC or such Restricted Subsidiary as to the fairness of such
Existing Affiliate Contract from a financial point of view, and (ii) at any
time after 20 Business Days of the occurrence of the Lock-Down Event of
Default, if the Holders of twenty-five percent (25%) of the principal amount of
the Outstanding Bonds so request, the Nation shall cause SGC to retain an
Independent Financial Advisor to review such Existing Affiliate Contract and to
determine whether such Existing Affiliate Contract is fair, from a financial
point of view, to SGC or the Restricted Subsidiary involved in such Existing
Affiliate Contract, as the case may be.

Section 4.24      Tax-Free Nature of
Series 2007-A Bonds.  For
the benefit of the Holders of the Series 2007-A Bonds, not permit any thing or
act to be done in such manner as would result in loss of the tax exemption of
interest on the Series 2007-A Bonds under Section 103 of

 

 13

the
Code, nor permit the Authority to use any of the proceeds received from the
sale of the Series 2007-A Bonds or any other money, directly or indirectly, in
any manner which would result in the Series 2007-A Bonds being classified as
arbitrage bonds within the meaning of Section 148 of the Code or private
activity bonds within the meaning of Section 141 of the Code.

Section 4.25      Existence
of Authority.  Do all things necessary to preserve and keep in
full force and effect the legal existence of the Authority and not amend the
Charter of the Authority in any manner that would materially adversely affect
the Trustee or the Holders of the Bonds or the ability of the Authority to
comply with its obligations under the Indenture, the Bonds and this Agreement.

ARTICLE
V

COVENANTS OF THE AUTHORITY

The
Authority covenants and agrees, so long as any Bonds shall be Outstanding under
the Indenture, that it will:

Section 5.01      Pledged
Distributions; Distributions. 
(a)  Pay all Pledged
Distributions, transferred and assigned to the Authority by the Nation pursuant
to Section 2.01 hereof, to the Trustee for deposit to the Bond Fund,
such obligation to be deemed satisfied by SGC’s direct payment of the Pledged
Distributions to the Trustee pursuant to Sections 3.01 and 3.03
hereof; and (b) in the event that it receives any Pledged Distribution from SGC
in contravention of Sections 3.01, 3.02, 3.03 or 3.04
hereof, hold such Pledged Distribution in trust for the benefit of the Trustee
and promptly deliver such Pledged Distribution to the Trustee for deposit in
the Bond Fund.

Section 5.02      Concerning
the Pledged Distributions.  Not
create, incur or suffer to exist any lien, pledge or security interest on a
parity with, or superior to, the pledge and security interest granted in the
Pledged Distributions to the Trustee by the Authority under the Indenture, nor
waive its sovereign immunity in any manner that would create recourse to the
Pledged Distributions other than under this Agreement, the Indenture and the
Purchase Agreement.

ARTICLE
VI

EVENTS OF DEFAULT AND REMEDIES

Section 6.01      Events
of Default.  Each of the following
constitutes an “Event of Default” hereunder:

(a)           if SGC shall fail to
perform or comply with any of the covenants or agreements in Sections 3.01,
3.02, 3.03 or 3.04; or

(b)           if the Nation shall
fail to perform or comply with any of the covenants or agreements in Sections 4.01
or 4.09; or

 14
 

(c)           if the Nation shall
fail to perform or comply with any of the covenants or agreements in Sections
4.06, 4.15, or 4.17 and such failure continues for 10 days or
more; or

(d)           if the Nation shall
fail to perform or comply with any of the covenants or agreements in Sections
4.10, 4.11, 4.14, 4.19, or 4.21 and such
failure continues for 30 days or more; or

(e)           if the Authority
shall fail to perform or comply with any of the covenants or agreements in Section
5.01; or

(f)            if the Authority
shall fail to perform or comply with any of the covenants or agreements in Section 5.02
and such failure continues for five days or more; or

(g)           if a default or
defaults under the terms of one or more instruments evidencing or securing
indebtedness of SGC or any of its Restricted Subsidiaries having an outstanding
principal amount of the greater of (x) $10,000,000 and (y) the threshold
dollar amount contained in the comparable cross-default provision of any future
indenture or credit agreement evidencing SGC’s principal indebtedness,
individually or in the aggregate, which default (i) is caused by a failure to
pay at final maturity principal on such indebtedness after giving effect to any
applicable grace period, (ii) results in the acceleration of such indebtedness
prior to its express final maturity or (iii) results in the commencement of
judicial proceedings to foreclose upon, or to exercise remedies under
applicable law or applicable security documents to take ownership of, the
assets securing such indebtedness; or

(h)           if any Nation Party
shall fail to perform any of the other of its covenants or agreements contained
in this Agreement and such failure shall have continued for a period of 60 days
or more after written notice shall have been given to such Nation Party by the
Trustee; provided, that if such failure can be remedied but not within a period
of 60 days after notice and if the Nation Party has taken all action reasonably
possible to remedy such failure within such 60-day period, such failure shall
not become an Event of Default for so long as the Nation Party shall diligently
proceed to remedy such failure for a period not to exceed 180 days; or

(i)            if any Nation Party
or any Restricted Subsidiary files a petition in voluntary bankruptcy, for the
composition of its affairs or for its reorganization under any state or federal
bankruptcy or insolvency law, or makes an assignment for the benefit of
creditors, or consents in writing to the appointment of a trustee or receiver
for itself or for the whole or any substantial part of its property; or

(j)            if a court of
competent jurisdiction shall enter an order, judgment or decree declaring any
Nation Party or any Restricted Subsidiary an insolvent, or adjudging any Nation
Party or any Restricted Subsidiary bankrupt, or appointing a trustee or
receiver of any Nation Party or any Restricted Subsidiary or of the whole or
any substantial part of its property under any applicable law or statute of the
United States of 

 15
 

America or any
State thereof, and such order, judgment or decree shall not be vacated or set
aside or stayed within 90 days from the date of the entry thereof; or

(k)           if, under the
provisions of any other law for the relief or aid of debtors, any court of
competent jurisdiction shall assume custody or control of any Nation Party or
any Restricted Subsidiary or of the whole or any substantial part of its
property, and such custody or control shall not be terminated within
90 days from the date of assumption of such custody or control.

Section 6.02      Enforcement
of Covenants and Conditions.  Upon
any Event of Default, subject to the terms hereof, the Trustee may take such
action or actions for the enforcement of its rights and the rights of the
Bondholders as are available under applicable law.  The provisions of Article VII of the
Indenture related to the exercise of remedies by the Trustee and the
Bondholders shall apply with equal force to the exercise of remedies upon an
Event of Default under this Agreement, mutatis
mutandis.

Section 6.03      Limited
Recourse.  Notwithstanding anything
to the contrary in this Agreement, the obligations of the Nation and the
Authority under this Agreement are limited recourse obligations of the Nation
and the Authority with recourse limited to: 
(a) with respect to Nation obligations, the Pledged Distributions; and
(b) with respect to Authority obligations, the Trust Estate.

Section 6.04      No
Recourse to SGC.  Notwithstanding
anything to the contrary in this Agreement, neither the Trustee nor the Holders
of the Bonds have any recourse under this Agreement to any revenues, assets or
property of SGC, any of SGC’s subsidiaries, or any other entity owned by, or
affiliated with, SGC, in connection with the enforcement of SGC’s obligations
hereunder.

ARTICLE
VII

GOVERNING LAW; ARBITRATION; SOVEREIGN IMMUNITY

Section 7.01      Governing
Law.  This Agreement shall be
governed by and construed in accordance with the substantive law of the State
of New York.

Section 7.02      Limited
Waiver of Sovereign Immunity; Jurisdiction.

(a)           Retention of
Sovereign Immunity.  By executing
this Agreement, none of the Nation Parties waives, limits or modifies its
sovereign immunity from unconsented suit or judicial litigation, except as
provided herein.

(b)           Waiver of
Sovereign Immunity/Scope of Waiver. 
Each of the Nation Parties hereby grants to the Trustee (and the Holders
of the Bonds and their respective representatives) an irrevocable limited
waiver of sovereign immunity from unconsented suit and consents to suit in
accordance with, and subject to the terms of, this Agreement solely and
exclusively to:

(i)            interpret or
enforce the terms of this Agreement;

 16
 

(ii)           compel arbitration
under the commercial arbitration rules of the American Arbitration Association;

(iii)          enforce an
arbitrator’s decision with respect to arbitration under the commercial
arbitration rules of the American Arbitration Association;

(iv)          order amounts
payable under this Agreement to be paid in accordance with the terms of this
Agreement and, subject to the express limitations in Sections 6.03 and 6.04
hereof, enforce the award of damages owing as a consequence of a breach of this
Agreement, whether such order or award is the product of litigation or
arbitration;

(v)           subject to the
limitations in this Agreement, including those set forth in Sections 6.03
and 6.04 hereof, order the exercise of any other remedy available
generally in the State of New York for judgment creditors;

(vi)          determine whether
any consent or approval of a Nation Party has been improperly granted or
unreasonably withheld; and

(vii)         enforce any judgment
or arbitration decision prohibiting a Nation Party from taking any action, or
mandating or obligating a Nation Party to take any action.

(c)           Procedural
Requirements.  The limited waiver by
each Nation Party of its sovereign immunity as to unconsented suit set forth in
this Article VII is effective if, and only if, each and every one of the
following conditions is met:

(i)            the claim is made
by the Trustee or the Holders of Bonds or their respective representatives;

(ii)           the claim alleges a
breach by the Nation Party under this Agreement;

(iii)          the claim seeks (A)
payment of a specified sum, some specific action, or discontinuance of some
action by the applicable Nation Party to bring the applicable Nation Party into
full compliance with the duties and obligations expressly assumed by the
applicable Nation Party under this Agreement; or (B) as to the Nation or the
Authority only, money damages for noncompliance with the terms and provisions
of this Agreement;

(iv)          the claim is made in
a detailed written statement to the applicable Nation Party stating the
specific action or discontinuance of action by such Nation Party that would
cure the alleged breach or non-performance, or the sum of money claimed to be
due and owing to the Trustee (or the Holders of the Bonds) by reason of such
specific breach or non-performance, and the Nation Party shall have seven
calendar days to cure or cause the cure of such breach or non-performance or to
make such payment before judicial proceedings may be instituted; provided,
however, that this cure period may be reasonably extended in 

 17
 

the sole discretion of the Trustee (or the Holders of the Bonds or
their respective representatives) for non-monetary matters as long as the
Nation Party is making good faith efforts to cure such breach or
non-performance); and

(v)           with respect to any
claim authorized herein, initial suit as authorized herein, shall be commenced
within the later of three years after the claim accrues or is discovered upon
the exercise of due diligence, or such claim shall be forever barred.

The waiver granted herein
shall commence on the date hereof and shall continue for three years following
the date of payment and discharge of the Indenture pursuant to Section 10.01
thereof, except that the waiver shall remain effective for any proceedings then
pending and all appeals therefrom.

(d)           Recipient of
Waiver.  The recipients of the
benefit of this irrevocable waiver of sovereign immunity are limited to the
Trustee and each Holder of the Bonds.

(e)           Enforcement.  Each Nation Party irrevocably waives its
sovereign immunity from a judgment or order consistent with the terms and
provisions of this Agreement, which is final because either the time for appeal
thereof has expired or the judgment or order is issued by a court having final
appellate jurisdiction over the matter. 
Each Nation Party consents solely to the jurisdiction of, to be sued in
and accepts and agrees to be bound by any order or judgment of any United
States District Court for New York or the New York State Supreme Court in and
for New York County, New York, and any federal or state court having appellate
jurisdiction thereover, consistent with the terms and provisions of this
Agreement.  Each Nation Party irrevocably
waives its sovereign immunity as to an action by the Trustee (or the Holders of
the Bonds or their respective representatives) solely in any United States
District Court for New York or the New York State Supreme Court in and for New
York County, New York, and any federal or state court having appellate
jurisdiction thereover, seeking injunctive and/or declaratory relief against
the respective Nation Party based upon any attempt to revoke its irrevocable
waiver of its sovereign immunity under this Agreement, and as to enforcement in
said United States District Court or New York State Supreme Court in and for
New York County, New York of any such final judgment against such Nation
Party.  Without in any way limiting the
generality of the foregoing, each Nation Party expressly authorizes any
governmental authorities who have the right and duty under applicable law to
take any action authorized or ordered by any such court, to take such action to
give effect to any judgment entered or order granted in accordance with the
terms of this Agreement.

(f)            Waivers.  Each Nation Party hereby expressly and
irrevocably waives:

(i)            its rights to
assert or demand that any dispute, controversy, suit, action or proceeding
arising under this Agreement be heard in any forum other than as set forth in Section
7.02(e) hereof whether or not such forum now exists or is hereafter
created;

 18
 

(ii)           its right to assert
any requirement that any remedies available in any court or other tribunal,
forum, council or adjudicative body of the Nation (a “Nation Forum”) must be
exhausted prior to the commencement of any dispute, controversy, suit, action
or proceeding in any court set forth in Section 7.02(e) hereof even if
any such Nation Forum would have concurrent jurisdiction over any such dispute,
controversy, suit, action or proceeding but for such waiver;

(iii)          its sovereign
immunity as to the action of the Trustee (or the Holders of the Bonds or their
respective representatives) in any United States District Court for New York or
the New York State Supreme Court in and for New York County, New York, and any
federal or state court having appellate jurisdiction thereover seeking
injunctive and/or declaratory relief against the Nation Party based upon an
attempt by it to revoke its irrevocable waiver of its sovereign immunity or
other waivers granted hereunder; and

(iv)          its sovereign
immunity from a judgment or order (including any appellate judgment or other
order) and post-judgment proceedings supplemental thereto consistent with the
terms and provisions hereof, which is final because either the time for appeal
thereof has expired or the judgment or an order is issued by the court having
final jurisdiction over the matter.

(g)           No Revocation of
Sovereign Immunity Waiver.  Each
Nation Party agrees not to revoke or limit, in whole or in part, its limited
waiver of sovereign immunity contained in this Article VII or in any way to
attempt to revoke or limit, in whole or in part, such limited waiver of
sovereign immunity.  In the event of any
attempted revocation or limitation, the parties hereto expressly recognize and
agree that there would remain no adequate remedy at law available to the
Trustee or the Holders of the Bonds (to the extent permitted under Section 7.08
of the Indenture), the Trustee and the Holders of the Bonds (to the extent
permitted under Section 7.08 of the Indenture) would be irreparably injured
upon any such revocation or limitation, and each Nation Party hereby consents
to the entry of appropriate injunctive relief consistent with the terms and
conditions of this Agreement.  In the
event of any attempted limitation or revocation of the limited waiver of
sovereign immunity granted herein, the Trustee or the Holders of the Bonds (to
the extent permitted under Section 7.08 of the Indenture) may immediately seek
judicial injunctive relief as provided in this Article VII without first
complying with any of the prerequisites contained herein to the limited waiver
of sovereign immunity granted herein; provided that any action seeking
injunctive relief hereunder shall be brought solely in one of the United States
District Courts for New York or the New York State Supreme Court in and for New
York County, New York, and each Nation Party expressly consents to the
jurisdiction of, and agrees to be bound by, any order or judgment of such
District Courts or state court, and any federal or state court with appellate
jurisdiction thereover.

Section 7.03      Dispute
Resolution.

(a)           Arbitration.  If, and only if, a dispute arises between the
parties over a matter for which any Nation Party has provided a limited waiver
of sovereign immunity 

 19
 

under this Agreement (the “Dispute”), and neither the United States
District Courts for New York nor the New York State Supreme Court in and for
New York County, New York, can or is willing to hear the Dispute, then any
party hereto may request binding arbitration of such Dispute in accordance with
the procedures set forth herein.  To
initiate binding arbitration of such Dispute, a party shall notify the other
parties hereto in writing.  The Dispute
shall be settled by binding arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association, provided that judgment on the
award rendered by the arbitrator may be entered solely in the United States
District Courts for New York or the New York State Supreme Court in and for New
York County, New York.  One arbitrator
shall preside and shall be selected by the American Arbitration Association.

(b)           Restraining
Order/Preliminary Injunction.  Any
party, before or during any arbitration, may apply to a court having
jurisdiction as provided under Section 7.02(e) for a temporary
restraining order or preliminary injunction where such relief is necessary to
protect its interests pending completion of the dispute resolution proceedings.

(c)           Confidentiality.  No party nor the arbitrator may disclose the
existence or results of any arbitration hereunder, which shall be considered
confidential to the parties hereto, except:

(i)            with the express
prior written consent of the other parties hereto, which consent shall not be
unreasonably withheld or delayed;

(ii)           as required by
applicable law or the rules of any relevant stock exchange or requirement of
the Trustee, by order or decree of a court or other governmental authority
having jurisdiction over such party, or in connection with such party’s
enforcement of any rights it may have at law or in equity;

(iii)          on a “need to know”
basis to persons within or outside such party’s organization, such as
attorneys, accountants, bankers, financial advisors and other consultants; or

(iv)          after such
information has become publicly available without breach of this Agreement.

(d)           Fees and Costs.  In the event of arbitration, the prevailing
party shall be entitled to all of its costs, including reasonable attorneys’
fees and costs and expenses, from the nonprevailing party.

(e)           Location of
Arbitration.  The arbitration shall
take place at a location in an agreed city in the State of New York or such
other place as the parties may jointly agree. 
The arbitrator shall render an award within 45 days from the conclusion
of the arbitration.

(f)            Enforcement of
Arbitration Decisions.  The decision
of the arbitrator will be final and binding and enforced with the same force
and effect as a decree of a court having competent jurisdiction as provided
under Section 7.02 (e) hereof. 
For this 

 20
 

purpose, should the losing party in any arbitration proceeding pursuant
to this Section 7.03 refuse to abide by the decision of the arbitrator,
the prevailing party may apply solely to any United States District Court for
New York or the New York State Supreme Court in and for New York County, New
York to compel enforcement of the arbitrator’s award resulting from binding
arbitration.  In the sole event that
neither the United States District Courts of New York nor the New York State
Supreme Court in and for New York County, New York, takes jurisdiction over
such enforcement action, the prevailing party may apply to the courts of the
Nation for the enforcement of such action. 
Each party hereto consents to the jurisdiction of each such court for
this purpose.  Each Nation Party hereby
expressly and irrevocably waives its sovereign immunity with respect to the
entry of judgment on, and enforcement of, such award by such courts.

(g)           Designation of
Service Recipients.  In any action or
proceeding as to which a Nation Party has waived its sovereign immunity as set
forth in Section 7.02 hereof, each Nation Party consents and agrees that
process against it shall be effective if served:

(i)            if to the Nation,
on the President of the Nation; or by sending two copies of the process by
registered or certified mail to the President of the Nation at the address set
forth in Section 8.07 hereof.

(ii)           if to the
Authority, on the Chairman of the Board of Commissioners of the Authority; or
by sending two copies of the process by registered or certified mail to the
Chairman of the Board of Commissioners of the Authority at the address set
forth in Section 8.07 hereof.

(iii)          if to SGC, on the
President or Interim President of SGC; or by sending two copies of the process
by registered or certified mail to the President of SGC at the address set
forth in Section 8.07 hereof.

Courtesy copies of any
such process shall also be provided to the Nation’s Department of Justice and
SGC’s Office of General Counsel at the addresses set forth in Section 8.07
hereof; provided, however, that the failure to provide such courtesy copies
shall not affect the validity of any process served on the Nation, Authority or
SGC.

(h)           Appointment
Irrevocable.  Each Nation Party
irrevocably appoints each of the persons in the foregoing clauses and their
respective successors in said offices from time to time, as agent for service
of process made in accordance herewith.

ARTICLE
VIII

MISCELLANEOUS

Section 8.01      Covenants
to Bind Successors and Assigns.  All
the covenants and agreements in this Agreement of the Nation, the Authority and
SGC shall bind and inure to the benefit of their respective successors.

 21
 

Section 8.02      Immunity
of Officers.  No recourse for the
performance of any obligation of the Nation, the Authority or SGC under this
Agreement shall be had against any officer, director, member, Council member or
agent of the Nation, the Authority or SGC as such, all such liability being
hereby expressly released and waived as a condition of and as a part of the
consideration for the execution of this Agreement.

Section 8.03      No
Benefits to Outside Parties.  Nothing
in this Agreement, express or implied, is intended or shall be construed to
confer upon or to give to any Person, other than the parties hereto and the
Bondholders any right, remedy or claim under or by reason of this Agreement or
covenant, condition or stipulation thereof; and the covenants and agreements in
this Agreement contained are and shall be for sole and exclusive benefit of the
parties hereto, their successors and assigns.

Section 8.04      Severability
of Provisions.  In case any one or
more of the provisions contained in this Agreement shall for any reason be held
to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Agreement, but this Agreement shall be construed as if such invalid or illegal
or unenforceable provision had never been contained herein.

Section 8.05      Execution
in Counterparts.  This Agreement may
be simultaneously executed in several counterparts, each of which, when so
executed, shall be deemed to be an original, and such counterparts shall
together constitute one and the same instrument.

Section 8.06      Headings
Not Controlling.  The headings of the
several Articles and Sections hereof are inserted for the convenience of
reference only and shall not control or affect the meaning or construction of
any of the provisions hereof.

Section 8.07      Notices,
etc. to Trustee, Nation, Authority and SGC. 
Any request, demand, authorization, direction, notice, consent or other
document provided or permitted by this Agreement shall be sufficient for any
purpose under this Agreement when hand delivered or mailed registered mail,
return receipt requested, postage prepaid (except as otherwise provided in this
Agreement) (with a copy to the other parties) at the following addresses (or
such other address as may be provided by any party by notice) and shall be
deemed to be effective upon receipt:

 22
 

 

	
  A.To the Nation

  	
  Seneca Nation of Indians 

  P.O. Box 321 

  Salamanca, New York 14779

  
	
   

  	
   

  
	
  B.To the Authority

  	
  Seneca Nation of Indians Capital Improvements 

  Authority 1490 Route 438 

  Cattaraugus Territory 

  Irving, New York 14081

  
	
   

  	
   

  
	
  C.To SGC

  	
  Seneca Gaming Corporation 

  310 Fourth Street 

  Niagara Falls, NY (Niagara Territory) 14303 

  Attn: CEO and President 

  cc: Office of General Counsel

  
	
   

  	
   

  
	
  D.To the Trustee

  	
  Wells Fargo Bank, National Association 

  ATTN: Corporate Trust Services 

  213 Court Street, Suite 703 

  Middletown, CT 06457 

  Fax Number: (860) 704-6219

  

 

Section 8.08      Amendments.  This Agreement may be amended by written
agreement of the Nation, the Authority SGC and the Trustee.  The Trustee may enter into any amendment of
this Agreement (a) that, in its judgment, does not adversely affect the
interests of the Holders of the Bonds, (b) with respect to Sections 3.01,
3.02, 3.03, 3.04 and 4.01 hereof, that is
authorized by the Holders of not less than sixty-six and two-thirds percent (66
2/3%) in aggregate principal amount of the Bonds then Outstanding, or
(c) to the extent neither clause (a) or (b), above, is applicable, that is
authorized by the Holders of not less than a majority in aggregate principal amount
of the Bonds then Outstanding. 
Authorizations, in the case of clauses (b) and (c), above, shall
be given and obtained in the manner provided for in Section 11.04 of the
Indenture.  Upon any written request of
the Authority accompanied by a resolution or other instrument authorizing the
execution of any such amendment, and upon receipt by the Trustee of evidence
reasonably satisfactory to the Trustee of the consent of the Holders as
aforesaid, the Trustee shall join in the execution of such amendment.  After an amendment becomes effective, it
shall bind every Holder and every subsequent Holder or portion of a Bond that
evidenced the same debt as the consenting Holder’s Bond.

 23
 

IN WITNESS WHEREOF, the SENECA NATION OF INDIANS, has
caused this Agreement to be signed in its name by its duly authorized officer,
the SENECA NATION OF INDIANS CAPITAL IMPROVEMENTS AUTHORITY, has caused this
Agreement to be signed in its name by its duly authorized officer, SENECA
GAMING CORPORATION, has caused this Agreement to be signed in its name by its
duly authorized officer and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee,
has caused this Agreement to be signed by an authorized representative of the
Trustee, all as of the day and year first above written.

	
   

  	
  SENECA NATION OF INDIANS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Maurice A.
  John, Sr.

  
	
   

  	
  Its: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SENECA NATION OF
  INDIANS CAPITAL

  IMPROVEMENTS AUTHORITY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  
	
   

  	
  Name: Kevin
  Seneca

  
	
   

  	
  Its: Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SENECA GAMING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Brian
  Hansberry

  
	
   

  	
  Its: Interim
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL 

  ASSOCIATION,

  
	
   

  	
   as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name: Robert L.
  Reynolds

  
	
   

  	
  Its: Vice
  President

  

 

 24

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