Document:

Exhibit 10.2

EXECUTION
COPY

HEAD LEASE AGREEMENT

 

BETWEEN

 

SENECA NATION OF INDIANS

 

as
Landlord

and

 

SENECA ERIE GAMING CORPORATION

 

as
Tenant

Dated February 28, 2007

Effective as of:  April 1, 2006

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  PAGE

  
	
  ARTICLE 1. PREMISES AND TERM

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
   

  	
  Premises

  	
   

  	
  1

  
	
  Section 1.02

  	
   

  	
  Term

  	
   

  	
  1

  
	
  ARTICLE 2. RENT

  	
   

  	
  1

  
	
  Section 2.01

  	
   

  	
  Rent Payments.

  	
   

  	
  1

  
	
  Section 2.02

  	
   

  	
  Rent Net to Landlord

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3. REPRESENTATIONS AND WARRANTIES

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
   

  	
  Representations and Warranties of Tenant

  	
   

  	
  2

  
	
  Section 3.02

  	
   

  	
  Representations and Warranties of Landlord

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4. INSURANCE

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
   

  	
  Required Coverages.

  	
   

  	
  4

  
	
  Section 4.02

  	
   

  	
  Policy Requirements.

  	
   

  	
  5

  
	
  Section 4.03

  	
   

  	
  Blanket Policies

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5. USE OF INSURANCE PROCEEDS

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6. CONDEMNATION

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
   

  	
  Total Condemnation

  	
   

  	
  6

  
	
  Section 6.02

  	
   

  	
  Award to Landlord

  	
   

  	
  6

  
	
  Section 6.03

  	
   

  	
  Date of Taking

  	
   

  	
  7

  
	
  Section 6.04

  	
   

  	
  Partial Condemnation

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7. ASSIGNMENT, SUBLETTING AND MORTGAGES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
   

  	
  Restrictions on Right of Tenant to Transfer Lease

  	
   

  	
  7

  
	
  Section 7.02

  	
   

  	
  Leasehold Mortgage

  	
   

  	
  7

  
	
  Section 7.03

  	
   

  	
  Obligations of Subtenants

  	
   

  	
  10

  
	
  Section 7.04

  	
   

  	
  Tenant’s Obligation to Cure

  	
   

  	
  11

  
	
  Section 7.05

  	
   

  	
  No Waiver

  	
   

  	
  11

  
	
  Section 7.06

  	
   

  	
  Intentionally Omitted.

  	
   

  	
  11

  
	
  Section 7.07

  	
   

  	
  Tenant’s Use

  	
   

  	
  11

  
	
  Section 7.08

  	
   

  	
  Mortgage or other Security Agreement Requirements

  	
   

  	
  11

  
	
  Section 7.09

  	
   

  	
  Mortgagee; Arbitration

  	
   

  	
  11

  
	
  Section 7.10

  	
   

  	
  Landlord to Join in Tenant Mortgage

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8. INTENTIONALLY OMITTED

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9. WASTE AND DAMAGE TO PREMISES

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
   

  	
  Tenant’s Obligations

  	
   

  	
  12

  
	
  Section 9.02

  	
   

  	
  No Landlord Services

  	
   

  	
  12

  

 i
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10. CHANGES, ALTERATIONS AND ADDITIONS

  	
   

  	
  12

  
	
   

  	
   

  	
   

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

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12. INTENTIONALLY OMITTED

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13. DISCHARGE OF LIENS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
   

  	
  Discharge of Liens

  	
   

  	
  13

  
	
  Section 13.02

  	
   

  	
  Tenant Indemnity for Liens

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 14. LIMITED OBLIGATIONS OF THE PARTIES;
  INDEMNITY

  	
   

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 14.01

  	
   

  	
  Tenant Accepts “As Is”

  	
   

  	
  14

  
	
  Section 14.02

  	
   

  	
  No Landlord Representations

  	
   

  	
  14

  
	
  Section 14.03

  	
   

  	
  No Landlord Liability/Indemnification

  	
   

  	
  14

  
	
  Section 14.04

  	
   

  	
  Tenant Indemnity; Insurance

  	
   

  	
  16

  
	
  Section 14.05

  	
   

  	
  Survival

  	
   

  	
  16

  
	
  Section 14.06

  	
   

  	
  No Consequential Damages

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16. INTENTIONALLY OMITTED

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17. RIGHT OF INSPECTION

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 17.01

  	
   

  	
  Landlord Access to Premises

  	
   

  	
  16

  
	
  Section 17.02

  	
   

  	
  No Landlord Obligation to Repair

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19. PERMITTED USE; NO UNLAWFUL OCCUPANCY

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20. EVENTS OF DEFAULT, CONDITIONAL
  LIMITATIONS, REMEDIES

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 20.01

  	
   

  	
  Event of Default

  	
   

  	
  17

  
	
  Section 20.02

  	
   

  	
  Tenant Default; Payment of Rent and Termination of
  Lease

  	
   

  	
  18

  
	
  Section 20.03

  	
   

  	
  Intentionally omitted.

  	
   

  	
  19

  
	
  Section 20.04

  	
   

  	
  No Reinstatement

  	
   

  	
  19

  
	
  Section 20.05

  	
   

  	
  Strict Performance

  	
   

  	
  19

  
	
  Section 20.06

  	
   

  	
  Remedies Cumulative

  	
   

  	
  19

  
	
  Section 20.07

  	
   

  	
  Landlord’s Costs and Expenses

  	
   

  	
  19

  
	
  Section 20.08

  	
   

  	
  Tenant Bankruptcy

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 21. NOTICES

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22. TERMINATION

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23. INTENTIONALLY OMITTED

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24. INTENTIONALLY OMITTED

  	
   

  	
  22

  

 ii
 

 

	
  ARTICLE 25. EXCAVATIONS AND
  SHORING

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26. CERTIFICATES BY LANDLORD AND TENANT

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 26.01

  	
   

  	
  Landlord Certificate

  	
   

  	
  23

  
	
  Section 26.02

  	
   

  	
  Tenant Certificate

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 27. INTENTIONALLY OMITTED

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28. ENTIRE AGREEMENT

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29. QUIET ENJOYMENT

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30. DISPUTES

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31. RECORDING OF MEMORANDUM

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32. NO DISCRIMINATION WITH RESPECT TO THE
  PREMISES

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33. TENANT’S CHARTER

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34. MISCELLANEOUS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 34.01

  	
   

  	
  Captions

  	
   

  	
  24

  
	
  Section 34.02

  	
   

  	
  Table of Contents

  	
   

  	
  24

  
	
  Section 34.03

  	
   

  	
  Plurals

  	
   

  	
  24

  
	
  Section 34.04

  	
   

  	
  Execution of Documents

  	
   

  	
  25

  
	
  Section 34.05

  	
   

  	
  No Merger

  	
   

  	
  25

  
	
  Section 34.06

  	
   

  	
  No Broker

  	
   

  	
  25

  
	
  Section 34.07

  	
   

  	
  Changes of Lease

  	
   

  	
  25

  
	
  Section 34.08

  	
   

  	
  Governing Law

  	
   

  	
  25

  
	
  Section 34.09

  	
   

  	
  Successors and Assigns

  	
   

  	
  25

  
	
  Section 34.10

  	
   

  	
  No Violations

  	
   

  	
  25

  
	
  Section 34.11

  	
   

  	
  References

  	
   

  	
  25

  
	
  Section 34.12

  	
   

  	
  Severable

  	
   

  	
  25

  
	
  Section 34.13

  	
   

  	
  No Abatement

  	
   

  	
  25

  
	
  Section 34.14

  	
   

  	
  Substitution

  	
   

  	
  26

  
	
  Section 34.15

  	
   

  	
  Lease to Run With Land

  	
   

  	
  26

  
	
  Section 34.16

  	
   

  	
  Force Majeure

  	
   

  	
  26

  
	
  Section 34.17

  	
   

  	
  Easements

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibits

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Description of Premises Leased for SEGC Use

  	
   

  	
   

  

 

 iii

THIS HEAD LEASE AGREEMENT (this “Lease” or “Lease
Agreement”) dated February 28, 2007 and effective as of April 1, 2006 (the “Effective
Date”), between the Seneca Nation of Indians (“Landlord” or the “Nation”),
a sovereign Indian nation, having an office at 1490 Route 438, Irving, New York
(Cattaraugus Territory) 14801 and an office with the address of P.O. Box 231,
Salamanca, New York (Allegany Territory) 14779, and the Seneca Erie Gaming
Corporation, a wholly-owned governmental instrumentality of the Nation (“Tenant”
or “SEGC”), having an address at 310 Fourth Street, Niagara Falls, New
York (Nation Territory) 14302-0777,

W I T N E S S E T H:

WHEREAS, since April 1, 2006, the Nation has leased to
SEGC, a wholly owned governmental instrumentality of the Nation, land on the
Nation’s Buffalo Creek Territory, as more fully described on Exhibit A
hereto (the “Premises”) for use as the site for the Seneca Buffalo Creek
Casino and for related purposes pursuant to an oral lease agreement; and

WHEREAS, the parties acknowledge that SEGC has paid
and the Nation has received all payments due to the Nation under said lease
agreement for the lease of the Premises through the date hereof; and

WHEREAS, the Nation and SEGC, pursuant to this Lease,
desire to memorialize in writing the terms and conditions pursuant to which
SEGC leases the Premises.

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

ARTICLE 1.

PREMISES AND TERM

Section 1.01           Premises.  Landlord
does hereby lease to Tenant, and Tenant does hereby hire and take from Landlord
the Premises, subject to all title matters affecting the Land and existing as
of the date of this Lease Agreement.

Section 1.02           Term.  The Lease
term (the “Term”) shall commence as of the Effective Date of this Lease
and shall expire on the earlier of either (i) the twenty-first (21st) anniversary of gaming
activities under the Compact for Class III gaming between the Nation and the
State of New York, or (ii) such other date as may be herein provided.

ARTICLE 2.

RENT

Section 2.01           Rent
Payments.

(a)           Rent.  Commencing as of October 1, 2006, Tenant
shall pay directly to the Landlord, or Landlord’s representative if Tenant is
so notified, annual rent (“Annual Rent”) in the amount of Fifteen
Million Dollars ($15,000,000.00) in equal monthly installments of One Million
Two Hundred Fifty Thousand Dollars ($1,250,000.00) in advance on the first day
of 

 1
 

each calendar month..  On October
1 of each year, the Annual Rent shall automatically increase to 103% of the
prior year’s Annual Rent, provided that no increase in Annual Rent hereunder
may contravene, or constitute a default under, any agreement, indenture,
instrument or other commitment legally binding upon Landlord and/or Tenant, or
to which the Premises are subject (“Commitments”).  Any proposed increase to an amount in excess
of 103% of the prior year’s Annual Rent shall be jointly reviewed by Landlord
and Tenant for consistency with then-applicable Commitments, with any such
increase to be confirmed by the parties in writing prior to its
effectiveness.  The delay or failure of
either party in computing the Annual Rent increase or executing a written
statement of confirmation of such Annual Rent increase will not impair the
continuing obligation of Tenant to pay Annual Rent. All amounts payable by
Tenant pursuant to this Lease Agreement, including, without limiting the
foregoing, Annual Rent, and any other sums, costs, expenses or deposits that
Tenant in any of the provisions of this Lease Agreement assumes or agrees to
pay and/or deposit, shall constitute “Rent” under this Lease.

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

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

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

Section 2.01           Representations and Warranties of
Tenant.  Tenant does hereby represent
and warrant as follows:

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

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

 2
 

Nation’s Council has duly authorized the execution, delivery and
performance of this Lease Agreement and the consummation of the transactions
herein contemplated.

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

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

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

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

(c)           Validity.  Landlord is not prohibited from entering into
this Lease Agreement and discharging and performing all covenants and
obligations on its part to be performed under and pursuant to this Lease
Agreement and the consummation of the transactions contemplated hereby.  Compliance with the provisions of this Lease
Agreement will not conflict with or violate or constitute a breach of or a
default under, the terms, conditions or provisions of any law, rule, regulation
or order, judgment or decree of any court, contractual limitation, restriction
nor indenture, deed of trust, mortgage, loan agreement, other evidence of
indebtedness or any other agreement or instrument to which Landlord is a party
or by which it or any of its property is bound. 
Neither Landlord entering into this Lease Agreement nor Landlord
discharging and performing all covenants and obligations on its part to be
performed under and

 3
 

pursuant to this Lease Agreement will be in conflict with or result in
a breach of or constitute (with due notice and/or lapse of time) a default
under any of the foregoing, or result in the creation or imposition of any lien
of any nature upon any of the property of Landlord under the terms of any of
the foregoing, nor are there any actions, suits or proceedings by or before any
court, administrative agency or other governmental authorities pending, or to
the best of Landlord’s knowledge, threatened, against or affecting Landlord
which would have a material, adverse affect on the ability of Landlord to
perform its obligations under this Lease Agreement.  This Lease Agreement is the legal, valid and
binding obligation of Landlord enforceable against Landlord in accordance with
its terms.

ARTICLE 4.

INSURANCE

Section 4.01           Required Coverages.

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

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

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

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

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

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

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

 4
 

Section 4.02           Policy
Requirements.

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

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

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

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

Section 4.03           Blanket Policies.  The insurance required by this Lease may, at
the option of Tenant, be effected by blanket or umbrella policies issued to
Tenant covering the Premises and other properties owned or leased by such
Tenant, provided that the policies otherwise comply with the provisions of this
Lease and allocate to the Premises and all improvements thereon and therein the
specified coverage, without possibility of reduction or coinsurance by reason
of, or damage to, any other premises named therein, and if the insurance
required by this Lease shall be effected by any such blanket or umbrella
policies, Tenant shall furnish to 

 5
 

Landlord certificates of insurance for such policies,
with schedules thereto attached showing the amount of insurance afforded by
such policies applicable to the Premises in form and substance satisfactory to
Landlord.

ARTICLE 5.

USE OF INSURANCE PROCEEDS

(a)           If
the Premises or improvements thereon or therein shall be destroyed or damaged
in whole or in part by fire or other casualty of any kind or nature, ordinary
or extraordinary, foreseen or unforeseen (each, a “Casualty”), Tenant
shall give to Landlord prompt notice thereof. Tenant may, at its election,
repair, alter, restore, replace and rebuild the same, or the functional
equivalent of the same as was existing immediately prior to such occurrence,
subject to such changes or alterations as Tenant may elect.  Landlord, in no event, shall be called upon
to restore any portion of the Premises or improvements, now or hereafter
existing or any portion thereof or to pay any of the costs or expenses
thereof.  If Tenant shall elect not to
restore the Premises or improvements, Tenant shall promptly give notice to
Landlord of its election not to restore.

(b)           All
insurance proceeds payable as a result of a Casualty will be paid directly to
Tenant.

ARTICLE 6.

CONDEMNATION

Section 6.01           Total Condemnation.

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

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

Section 6.02           Award to Landlord.

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

 6
 

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

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

Section 6.04           Partial Condemnation.  If less than substantially all of the
Premises be so taken, all of the terms and provisions of Sections (a) and (b)
of Article 5 shall be fully applicable hereto respecting Tenant’s election
regarding restoration and payment of the condemnation award.

ARTICLE 7.

ASSIGNMENT, SUBLETTING AND MORTGAGES

Section 7.01           Restrictions on Right of Tenant to
Transfer Lease.  Tenant may assign or
transfer this Lease, or sublet the Premises in its entirety or substantially in
its entirety, or portions thereof, without the prior written consent of
Landlord in each instance, provided, however that in all events Tenant shall
provide Landlord a true and correct copy of the documentation evidencing such
assignment, sublease or transfer within thirty (30) days of the execution and
completion thereof.  Tenant may also from
time to time enter into a venture with a third party or parties to perform a
business operation at the Premises. The foregoing in no way modifies Tenant’s
obligation under this Lease Agreement.

Section 7.02           Leasehold Mortgage.

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

(b)           If
Tenant shall encumber this Lease or its leasehold interest in the Premises and
if Tenant or a Holder of Leasehold Mortgage shall give written notice to
Landlord of the existence thereof and the address of such Holder of Leasehold
Mortgage, then Landlord will mail or deliver to each such Holder of Leasehold
Mortgage, at such address, a duplicate copy of all notices in writing which
Landlord may, from time to time, give to or serve on Tenant under and pursuant
to the terms and provisions hereof, such copies shall be mailed or delivered 

 7
 

to each such Holder of Leasehold Mortgage, at, or as near as possible
to, the same time such notices are given to or served on Tenant. Each such
Holder of Leasehold Mortgage may, at its option, at any time before the rights
of Tenant shall be terminated as provided herein, pay any of the rents due
hereunder, or pay any taxes and assessments, or do any act or thing required of
Tenant by the terms hereof, or do any act or thing that may be necessary and
proper to be done in the observance of the covenants and conditions hereof, or
to prevent the termination hereof, all payments so made, and all things so done
and performed by such Holder of Leasehold Mortgage shall be as effective to
prevent a termination of the rights of Tenant hereunder as the same would have
been if done and performed by Tenant.

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

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

 8
 

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

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

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

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

(v)           Impose any additional obligations
upon Tenant.

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

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

 9
 

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

(g)           Landlord
agrees to execute and deliver any and all consents and other documents
(including reasonable modifications to this Lease) reasonably requested by
Tenant and/or one or more Holder(s) of Leasehold Mortgage so long as such
documents are reasonably consistent with the provisions of this Section 7.02.

(h)           Notwithstanding
any provision in this Article 7 or elsewhere in this Lease to the contrary,
Tenant may, in its sole discretion, enter into lease financing, conventional
financing and other arrangements in connection with the acquisition, lease and
disposal of the equipment and/or personal property including, without
limitation, leasing of equipment and/or personal property from another with an
option to purchase at the end of the lease term and assignment of Tenant’s
interests in the equipment and/or personal property, if required, as security
for these transactions.

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

(j)            Notwithstanding
any provision in this Article 7 or elsewhere in this Lease to the contrary,
Tenant may, in its sole discretion and without the consent of Landlord enter
into any financing and other arrangements which do not create a lien on the
leasehold estate created hereby, including without limitation, pledges of
proceeds from all uses of the Premises as provided in this Lease.

(k)           As
used herein:

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

Section 7.03           Obligations of Subtenants.  To the extent applicable, Tenant shall use
good faith efforts to cause the subtenants, operators, licensees,
concessionaires and other occupants of the Premises (collectively “Subtenants”)
to comply with (a) all of Tenant’s obligations under this Lease, with respect
to the space covered by the Subtenants’ sublease (hereinafter defined), and (b)
their obligations under their subleases, occupancy, license and concession
agreements (collectively “Subleases”), and Tenant shall diligently
enforce all of the rights of the Landlord thereunder in accordance with the
terms of such Subleases.  Landlord hereby
agrees that all permitted assignments, sublets and subsublets shall have the
benefit of 

 10
 

nondisturbance and attornment as between any assignee,
sublessee or subsublessee and Landlord, either pursuant to provisions set forth
in such assignments, subleases or subsubleases or by virtue of separate
nondisturbance and attornment agreements containing customary terms and
conditions, which Landlord hereby agrees to execute within ten (10) days of
receipt of written request.

Section 7.04           Tenant’s Obligation to Cure.  The fact that a violation or breach of any of
the terms, provisions or conditions of this Lease results from or is caused by
an act or omission by any of the Subtenants shall not relieve Tenant of Tenant’s
obligation to cure the same. Tenant shall promptly take steps to cause any such
violation or breach to be cured. 
Landlord hereby acknowledges that so long as Tenant promptly takes steps
to cause any such violation or breach to be cured and diligently pursues the
same until cured, such violation or breach by any of the Subtenants shall not
constitute grounds for termination of this Lease.

Section 7.05           No Waiver.  Landlord, after Default (as hereinafter
defined) by Tenant, may collect rent and all other sums due under Subleases,
and apply the net amount collected to the Rent payable by Tenant hereunder, but
no such collection shall be, or be deemed to be, a waiver of any agreement,
term, covenant or condition of this Lease or the acceptance by Landlord of any
Subtenants as Tenant hereunder, or a release of Tenant from performance by
Tenant of its obligations under this Lease.

Section 7.06           Intentionally
Omitted.

Section 7.07           Tenant’s Use.  Notwithstanding Tenant’s rights to enter into
subleases of the Premises, Tenant shall throughout the term of this Lease
Agreement, use or cause the Premises to be used as agreed between Landlord and
Tenant.  The parties hereby acknowledge that
Tenant will not use or cause to be used any part of the Premises for any
unlawful conduct or purpose.

Section 7.08           Mortgage or other Security
Agreement Requirements.  No mortgage
or other security agreement shall be valid or of any force or effect respecting
the Landlord unless and until a true copy of the original of each instrument
creating and effecting such mortgage or other security agreement, certified by
Tenant to be a true copy of such instrument, and written notice containing the
name and post office address of the Mortgagee, shall have been delivered to
Landlord, and the mortgage or other security agreement shall contain
substantially the following provisions:

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

Section 7.09           Mortgagee; Arbitration.  Landlord agrees that Landlord will give any
Mortgagee who shall have given Landlord a notice as provided in Section 7.10
hereof notice of any demand by Landlord for any arbitration, and Landlord will
recognize such Mortgagee as a proper party to participate in the arbitration.

 11
 

Section 7.10           Landlord to Join in Tenant
Mortgage.  Anything to the contrary
in the foregoing provisions of this Article 7 notwithstanding, in the event
Tenant shall request Landlord, in writing, to join in any mortgage, lien,
pledge, grant, assignment, hypothecation or such other conveyance, encumbering
Tenant’s estate in the Premises for any term, Landlord shall, at no cost or
expense to Landlord, execute, acknowledge and join in such mortgage.  Such mortgage shall, however, be fully non-recourse
to Landlord and all of the provisions of Article 14 of this Lease respecting
the non-liability and indemnification of Landlord shall be fully applicable
with respect thereto.  The provisions of
the mortgage specifying the non-recourse nature thereof with respect to
Landlord shall be satisfactory to Landlord.

ARTICLE 8.

INTENTIONALLY OMITTED

ARTICLE 9.

WASTE AND DAMAGE TO PREMISES

Section 9.01           Tenant’s Obligations.  Tenant, shall not commit or suffer, and shall
use all reasonable precaution to prevent waste, damage, or injury to the
Premises (including from environmental contamination).

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

ARTICLE 10.

CHANGES, ALTERATIONS AND ADDITIONS

Tenant may
alter the improvements at the Premises, or any part thereof, without the
consent of the Landlord, or make any addition thereto or construct any
improvements on the Premises or destroy any existing improvements, whether
voluntarily or in connection with a repair or restoration required by this
Lease (collectively, “Capital Improvements”), subject to the following:

(a)           If any contemplated
Capital Improvement shall not be covered by Tenant’s insurance policies, then
no such Capital Improvement shall be undertaken until Tenant shall have
delivered to Landlord insurance policies or certificates or memoranda therefor
issued by responsible insurers, bearing notations evidencing the payment of
premiums or accompanied by other evidence satisfactory to Landlord of such
payments, for the insurance required by Article 4 hereof.  If under the provisions of any casualty,
liability or other insurance policy or policies then covering the Premises or
any part thereof any consent to such Capital Improvement by the insurance
company or companies issuing such policy or policies shall be required to
continue and keep such policy or policies in full force and effect, Tenant
shall obtain such consents and 

 12
 

pay any
additional premiums or charges therefor that may be imposed by said insurance
company or companies prior to the commencement of the Capital Improvement, all
of which shall be carried out under the supervision of a duly licensed
architect or engineer selected by Tenant.

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

ARTICLE 11.

REQUIREMENTS OF PUBLIC AUTHORITIES AND

OF INSURANCE UNDERWRITERS AND POLICIES

Tenant, at its sole cost and expense, promptly shall
use all reasonable efforts to utilize the Premises in a manner consistent with
any and all present and future laws, rules, orders, ordinances, regulations,
statutes, requirements, codes and executive orders (collectively “Requirements”)
without regard to the nature of the work required to be done, extraordinary as
well as ordinary, of any governmental authority having jurisdiction, now
existing or hereafter created, and of any and all of their departments and
bureaus, and of any applicable fire rating bureau or other body exercising
similar functions, affecting the Premises, or any street, avenue and/or
sidewalk comprising a part or in front thereof and/or any vault in or under the
same, or requiring the removal of any encroachment, or affecting the
maintenance, use or occupation of the Premises. 
Tenant also shall use good faith efforts to comply with any and all
provisions and requirements of any casualty, liability or other insurance
policy required to be carried by Tenant under the provisions of this
Lease.  Nothing herein shall prevent
Tenant from contesting the validity of any Requirement in accordance with
existing law.  Notwithstanding anything
in this Lease Agreement to the contrary, the parties hereby acknowledge that
the Nation and SEGC are subject only to Requirements of the Seneca Nation and
that the Nation and SEGC voluntarily comply with certain Requirements of the
Seneca Nation and the federal government of the United States.

ARTICLE 12.

INTENTIONALLY OMITTED

ARTICLE 13.

DISCHARGE OF LIENS

Section 13.01         Discharge of Liens.  Except for any customary utility easements,
restrictive easement agreements, Mortgages or otherwise set forth in Section
7.02, neither Landlord nor Tenant shall create or permit to be created any
lien, encumbrance or charge upon the Land and shall not suffer any other matter
or thing whereby the estate, rights and interest of Landlord in the Premises or
any part thereof might be materially impaired.

 13

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

ARTICLE 14.

LIMITED OBLIGATIONS OF THE PARTIES; INDEMNITY

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

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

Section 14.03         No Landlord
Liability/Indemnification.

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

 14
 

(b)           The
obligations and agreements of the Landlord contained herein shall not
constitute or give rise to a general obligation of the Landlord, but rather
shall constitute limited obligations of the Landlord as expressly set forth in
this Lease Agreement.

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

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

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

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

(iv)          any accident, injury (including death)
or damage to any person or property occurring in, on or about the Premises or
any part thereof or adjacent thereto;

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

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

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

 15
 

unreasonably withheld or delayed. 
Notwithstanding the foregoing, if Landlord reasonably determines that it
is appropriate to engage its own attorneys then Landlord, after consultation
with Tenant, may engage its own attorneys to defend it or to assist in its
defense and Tenant shall pay the reasonable fees and disbursements of such
attorneys but Landlord may not enter into any settlement of the claim, action
or proceeding without the prior written consent of Tenant which may be given or
withheld at Tenant’s sole and absolute discretion.

Section 14.04         Tenant Indemnity; Insurance.  The obligations of Tenant under this Article
14 shall not be affected in any way by the absence of insurance or by the
failure or refusal of any insurance carrier to perform any obligation on its
part under insurance policies affecting the Premises.

Section 14.05         Survival.  The terms and conditions of this Article 14
shall survive the expiration or earlier termination of this Lease Agreement.

Section 14.06         No Consequential Damages.  In no event shall either party be liable for
consequential, incidental or special damages under this Lease Agreement.

ARTICLE 15.

LANDLORD NOT LIABLE FOR INJURY OR DAMAGE, ETC.

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

ARTICLE 16.

INTENTIONALLY OMITTED

ARTICLE 17.

RIGHT OF INSPECTION

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

Section 7.02           No Landlord Obligation to Repair.  Nothing in this Article 17 or elsewhere in
this Lease shall imply any duty on the part of Landlord to do any repairs,
maintenance, renovation or other work on or at the Premises, and performance
thereof by Landlord shall not constitute a waiver of Tenant’s default in
failing to perform the same. In the event Landlord has the right to undertake
any such work and undertakes such work, Landlord, during the progress of any
such work, may keep and store at the Premises all necessary materials, tools,
supplies and equipment for the completion of such work.  Once undertaken, Landlord shall diligently 

 16
 

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

ARTICLE 18.

LANDLORD’S RIGHT TO PERFORM TENANT’S COVENANTS

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

ARTICLE 19.

PERMITTED USE; NO UNLAWFUL OCCUPANCY

Subject to the provisions of applicable law of this
Lease, Tenant shall cause the Premises to be used as agreed to by Landlord and
Tenant.  Tenant shall not use or occupy,
nor permit or suffer the Premises or any part thereof to be used or occupied
for any unlawful or illegal business.

ARTICLE 20.

EVENTS OF DEFAULT, CONDITIONAL LIMITATIONS, REMEDIES

Section 20.01         Event of Default.  Each of the following events shall be an “Event
of Default” or “Default” hereunder:

(a)           Tenant
shall fail to pay any installment of Rent or any part thereof within thirty
(30) business days after receipt of written notice from Landlord that Tenant
has failed to pay such installment once the same has become due and payable and
remains unpaid following such thirty (30) business day period;

 17
 

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

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

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

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

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

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

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

Section 20.02         Tenant Default; Payment of Rent and
Termination of Lease.  If any Event
of Default shall have occurred and be continuing beyond all applicable notice
and cure periods, 

 18
 

Landlord may, at its sole option, give to Tenant an
additional thirty (30) business days notice of cancellation of this Lease and
opportunity to cure the same, in which event this Lease and the Term shall come
to an end and expire upon the expiration of such thirty (30) business day
period if Tenant thereafter fails to cure the same with the same force and
effect as if the date set forth in the notice was the date of the end of the
Term of the Lease; and Tenant shall then quit and surrender the Premises  to Landlord, and all unpaid Rent shall be
immediately due and Tenant shall immediately pay the full amount of such unpaid
Rent to Landlord.  Upon payment in full
of such amounts to the Landlord, Landlord and Tenant shall be released from any
and all further obligations under this Lease, except those that are expressly
provided for as surviving the termination thereof. The terms of this Section
20.02 shall survive the termination of this Lease.

Section 20.03         Intentionally
omitted.

Section 20.04         No Reinstatement.  No receipt of monies by Landlord from Tenant
after the termination of this Lease, or after the giving of any notice of the
termination of this Lease (unless such receipt cures the Event of Default which
was the basis for the notice), shall reinstate, continue or extend the Term or
affect any notice theretofore given to Tenant, or operate as a waiver of the
right of Landlord to enforce the payment of Rent payable by Tenant
hereunder.  After the service of notice
to terminate this Lease, Landlord may demand, receive and collect any moneys
due or thereafter falling due without in any manner affecting such notice, all
such monies collected being deemed payments on account of the use and
occupation of the Premises or, at the election of Landlord, on account of
Tenant’s liability hereunder.

Section 20.05         Strict Performance.  No failure by Landlord to insist upon the
strict performance of any covenants agreement, term or condition of this Lease
or to exercise any right or remedy consequent upon a breach thereof, and no
acceptance of full or partial Rent during the continuance of any such breach,
shall constitute a waiver of any such breach or of such covenant, agreement,
term or condition.  No covenant,
agreement, term or condition of this Lease to be performed or complied with by
Tenant, and no breach thereof, shall be waived, altered or modified except by a
written instrument executed by Landlord. 
No waiver of any breach shall affect or alter this Lease, but each and
every covenant, agreement, term and condition of this Lease shall continue in
full force and effect with respect to any other then existing or subsequent
breach thereof.

Section 20.06         Remedies Cumulative.  Each right and remedy of Landlord provided
for in this Lease shall be cumulative and shall be in addition to every other
right or remedy provided for in this Lease and the exercise or beginning of the
exercise by Landlord of any one or more of the rights or remedies provided for
in this Lease shall not preclude the simultaneous or later exercise by Landlord
of any or all other rights or remedies provided for in this Lease.

Section 20.07         Landlord’s Costs and Expenses.  Tenant shall pay to Landlord all reasonable
costs and expenses, including, without limitation, reasonable attorneys’ fees
and disbursements, incurred by Landlord in any action or proceeding to which
Landlord may be made a party by reason of any act or omission of Tenant
hereunder provided the Landlord is the prevailing party in such action.  Tenant also shall pay to Landlord all
reasonable costs and expenses, including without limitation, reasonable
attorneys’ fees and disbursements, incurred by Landlord in enforcing any of the
covenants and provisions of this Lease and incurred in any 

 19
 

action brought by Landlord against Tenant on account
of the provisions hereof, and all such reasonable costs, expenses, and
reasonable attorneys’ fees and disbursements may be included in and form a part
of any judgment entered in any proceeding brought by Landlord against Tenant on
or under this Lease provided the Landlord is the prevailing party in such
action.  All of the sums paid or
obligations incurred by Landlord as aforesaid, with interest and costs, shall
be paid by Tenant to Landlord promptly upon demand.

Section 20.08         Tenant Bankruptcy.  If an order for relief is entered or if a
stay of proceeding or other acts become effective in favor of Tenant or Tenant’s
interest in this Lease in any proceeding which is commenced by or against
Tenant under the present or any future federal bankruptcy code or any other
present or future applicable federal, state or other statute or law, Landlord
shall be entitled to invoke any and all rights and remedies available to it
under such bankruptcy code, statute, law or this Lease, including, without
limitation, such rights and remedies as may be necessary to protect adequately
Landlord’s right, title and interest in and to the Premises or any part thereof
and to assure adequately the complete and continuous future performance of
Tenant’s obligations under this Lease.  Adequate
protection of Landlord’s right, title and interest in and to the Premises, and
adequate assurance of the complete and continuous future performance of Tenant’s
obligations under this Lease, shall include, without limitation, the following
requirements:

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

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

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

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

(e)           If
Tenant’s trustee, Tenant or Tenant as debtor-in-possession assumes this Lease
and proposes to assign the same (pursuant to 11 U.S.C. §365, as the same may be
amended) to any Person who shall have made a bona fide offer to accept an
assignment of this Lease on terms acceptable to the trustee, Tenant or Tenant
as debtor-in-possession, then notice of such proposed assignment, setting forth
(i) the name and address of such Person, (ii) all of the terms and conditions
of such offer, and (iii) the adequate assurance to be provided Landlord to
assure such Person’s future performance under the Lease, including, without
limitation, the assurance referred to in 11 U.S.C. §365(b)(3) (as the same may
be amended), shall be given to Landlord by the trustee, Tenant or Tenant as
debtor-in-possession no later than twenty (20) days after receipt by the trustee,
Tenant or Tenant as debtor-in-possession of such offer, but in any 

 20
 

event no later than ten (10) days prior to the date that the trustee,
Tenant or Tenant as debtor-in-possession shall make application to a court of
competent jurisdiction for authority and approval to enter into such assignment
and assumption, and Landlord shall thereupon have the prior right, to be
exercised by notice to the trustee given at any time prior to the effective
date of such proposed assignment, to accept an assignment of this Lease upon
the same terms and conditions and for the same consideration, if any, as the
bona fide offer made by such Person, less any brokerage commissions which may
be payable out of the consideration to be paid by such Person for the
assignment of this Lease.

ARTICLE 21.

NOTICES

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

	
  (a)

  	
   

  	
  To Landlord:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Nation of
  Indians

  
	
   

  	
   

  	
  1490 Route 438

  
	
   

  	
   

  	
  Irving, New York
  14801

  
	
   

  	
   

  	
  Attn: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With copies to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Nation of
  Indians

  
	
   

  	
   

  	
  P.O. Box 231

  
	
   

  	
   

  	
  Salamanca, New
  York 14779

  
	
   

  	
   

  	
  Attn: Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Nation of
  Indians

  
	
   

  	
   

  	
  P.O. Box 231

  
	
   

  	
   

  	
  Salamanca, New
  York 14779

  
	
   

  	
   

  	
  Attn: Department
  of Justice

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  To Tenant:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Erie
  Gaming Corporation

  
	
   

  	
   

  	
  310 Fourth
  Street

  
	
   

  	
   

  	
  Niagara Falls,
  New York 14302-0777

  
	
   

  	
   

  	
  Attn: President
  and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Seneca Erie
  Gaming Corporation

  
	
   

  	
   

  	
  310 Fourth
  Street

  
	
   

  	
   

  	
  Niagara Falls,
  New York 14302-0777

  
	
   

  	
   

  	
  Attn: General
  Counsel

  

 

 21
 

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

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

ARTICLE 22.

TERMINATION

Tenant and Landlord shall each have the right to
terminate the Lease in its entirety at any time after the date of the Lease, by
giving the other party at least ninety (90) days advance written notice (the “Termination
Notice”) that such party intends to terminate the Lease effective as of the
date set forth therein (the “Termination Date”).  Tenant shall then quit and surrender the
Premises to Landlord on the Termination Date, and all unpaid Rent through the
Termination Date shall be immediately due and Tenant shall immediately pay the
full amount of such unpaid Rent through the Termination Date to Landlord.  Upon payment in full of such amounts to the
Landlord, Landlord and Tenant shall be released from any and all further
obligations under this Lease, except those that are expressly provided for as
surviving the termination thereof. The terms of this Article 22 shall survive
the termination of this Lease.

ARTICLE
23.

INTENTIONALLY OMITTED

ARTICLE
24.

INTENTIONALLY OMITTED

ARTICLE
25.

EXCAVATIONS AND SHORING

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

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

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

 22

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

ARTICLE 26.

CERTIFICATES BY LANDLORD AND TENANT

Section 26.01         Landlord Certificate.  Landlord agrees at any time and from time to
time, upon not less than ten (10) business days’ prior notice by Tenant, to
execute, acknowledge and deliver to Tenant or such other person designated by
Tenant, a statement in writing certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that the same, as
modified, is in full force and effect and stating the modifications) and the
date to which the Rent payable by Tenant hereunder has been paid, and stating
whether or not to the best knowledge of the signer of such certificate Tenant
is in Default in the performance of any covenant, agreement or condition
contained in this Lease, and, if so, specifying in detail each such Default of
which the signer may have knowledge and any other such item as Tenant shall
reasonably request, due regard being given to the fact that such certificate may
be requested on behalf of a potential or actual Mortgagee.

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

ARTICLE 27.

INTENTIONALLY OMITTED

ARTICLE 28.

ENTIRE AGREEMENT

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

ARTICLE 29.

QUIET ENJOYMENT

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

 23
 

ARTICLE 30.

DISPUTES

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

ARTICLE 31.

RECORDING OF MEMORANDUM

Landlord and Tenant, upon the written request of the
other, shall join in the execution of a memorandum of lease in proper form for
recordation.

ARTICLE 32.

NO DISCRIMINATION WITH RESPECT TO THE PREMISES

With respect to the Premises, Tenant covenants and
agrees that it shall (a) neither commit nor permit discrimination or
segregation by reason of race, creed, color, religion, national origin,
ancestry, sex, age, disability or marital status (“Discrimination”) in
the sale, transfer or assignment of its interest under this Lease or in the
subleasing, use or occupancy of the Premises or any part thereof or in
connection with the erection, maintenance, repair, restoration, alteration or
replacement of, or addition to, any building (b) not willfully engage in any
personnel practices which may have a discriminatory effect and (c) comply with
all federal laws, ordinances, rules, and regulations from time to time in
effect prohibiting Discrimination or segregation or pertaining to equal
employment opportunities.

ARTICLE 33.

TENANT’S CHARTER

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

ARTICLE 34.

MISCELLANEOUS

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

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

Section 34.03         Plurals.  The use herein of the neuter pronoun in any
reference to Landlord or Tenant shall be deemed to include any individual Landlord
or Tenant, and the use herein of 

 24
 

the words “successors and assigns” or “successors or
assigns” of Landlord or Tenant shall be deemed to include the heirs, legal
representatives and assigns of any individual Landlord or Tenant.

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

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

Section 34.06         No Broker.  Each of the parties represents to the other
that it has not dealt with any broker in connection with this transaction.  If any claim is made by broker who shall
claim to have acted or dealt with Tenant in connection with this transaction,
Tenant will be responsible for payment of the brokerage commission, fee or
other compensation to which such broker is entitled.

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

Section 34.08         Governing Law.  This Lease shall be interpreted and construed
in accordance with the laws of the Seneca Nation of Indians.

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

Section 34.10         No Violations.  Neither Landlord nor Tenant will do,
authorize or execute any act, deed or thing whatsoever or fail to take any such
action which will or may cause the other party to be in violation of any of its
obligations.

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

Section 34.12         Severable.  If any term or provision of this Lease, or
the application thereof to any person or circumstances shall, to any extent, be
invalid or unenforceable, the remainder of this Lease, or the application of
such term or provision to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby, and each
term and provision of this Lease shall be valid and be enforced to the fullest
extent permitted by law.

Section 34.13         No Abatement.  Except as may be otherwise expressly provided
herein, there shall be no abatement, diminution or reduction of Rent payable by
Tenant hereunder or of the other obligations of Tenant hereunder under any
circumstances.

 25
 

Section 34.14         Substitution.  Where Tenant is required to do or accomplish
any act or thing hereunder, Tenant may cause the same to be done or
accomplished by others with the same force and effect as if done or
accomplished by Tenant.

Section 34.15         Lease to Run With Land.  This Lease Agreement shall run with the land,
both as respects benefits and burdens created herein, and shall be binding upon
and inure to the benefit of the successors and assigns of the respective
parties.

Section 34.16         Force Majeure.  The obligations of Landlord and Tenant to
perform their respective covenants hereunder, other than, and exclusive of,
Tenant’s obligation to pay Rent hereunder, shall be excused to the extent that
Landlord or Tenant, as the case may be, is prevented or delayed from so doing
by reason of Force Majeure.  “Force
Majeure” shall mean failure, in whole or in part, or delay on the part of
Tenant in the performance of any of the obligations imposed upon Tenant under
this Lease, shall be excused and Landlord shall not exercise its option to
terminate this Lease, when such failure or delay is the direct result of any of
the following causes: Acts of God, earthquake, windstorm, hurricane, fire,
flood, strikes or other labor stoppages including shortages of labor or materials,
the elements, malicious mischief by third parties not within the control of
Tenant, insurrection, riot, public enemy, war, terrorism, wrongful acts of the
Landlord or comparable extraordinary cause not within the control of Tenant.

Section 34.17         Easements.  Landlord will, from time to time, at the
request of Tenant and at Tenant’s cost and expense (but subject to the approval
of Landlord, which approval shall not be unreasonably withheld, conditioned or
delayed), (i) grant consent to easements and other rights in the nature of
easements with respect to the Land to third parties, (ii) grant consent to
release existing easements or other rights in the nature of easements which are
for the benefit of the Land, (iii) execute petitions to have the Land annexed
to any municipal corporation or utility district and (iv) execute and deliver
to any person any instrument appropriate to confirm or effect such grants,
releases and petitions (to the extent of its interests in the Land).

REMAINDER
OF PAGE LEFT BLANK INTENTIONALLY

 26
 

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

LANDLORD:

SENECA
NATION OF INDIANS

By:          ______________________________
                 Name:
                 Title:

TENANT:

SENECA ERIE GAMING

CORPORATION

By:          ______________________________
                 Name:
                 Title:

 27
 

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF

  	
  )

  

 

On the _______ day of _____________ in the year 2007,
before me, the undersigned personally appeared ______________________,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

________________________________________________

Signature and Office of individual taking acknowledgment

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF

  	
  )

  

 

On the _______ day of _____________ in the year 2007,
before me, the undersigned personally appeared ______________________,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

________________________________________________

Signature and Office of individual taking acknowledgment

 

 28

Exhibit A

Description of Premises
Leased for SEGC Use

The approximate nine acre
parcel(s) of land in the inner harbor district of Buffalo, New York bordered by
Michigan Avenue to the west, Perry Street to the north, Marvin Street to the
east and South Park Avenue to the south.

 A-1Exhibit
10.39

MARKWEST
HYDROCARBON, INC.

INDEMNIFICATION
AGREEMENT

THIS INDEMNIFICATION AGREEMENT (this “Agreement”)
is entered into as of the        day of
               ,
20   , by and between MARKWEST HYDROCARBON, INC., a Delaware
corporation (the “Company”) and the undersigned Director and/or Officer (“Indemnitees”).

RECITALS

A.                                   The
Company is aware that competent and experienced persons are increasingly
reluctant to serve or continue serving as directors or officers of companies
unless they are protected by comprehensive liability insurance and adequate
indemnification due to the increased exposure to litigation costs and risks
resulting from service to such companies that often bear no relationship to the
compensation of such directors or officers.

B.                                     The
statutes and judicial decisions regarding the duties of directors and officers
are often difficult to apply, ambiguous, or conflicting, and therefore often
fail to provide directors and officers with adequate, reliable knowledge of the
legal risks to which they are exposed or the manner in which they are expected
to execute their fiduciary duties and responsibilities.

C.                                     The
Company and the Indemnitees recognize that plaintiffs often seek damages in
such large amounts, and the costs of litigation may be so great (whether or not
the case is meritorious), that the defense and/or settlement of such litigation
can create an extraordinary burden on the personal resources of directors and
officers.

D.                                    The
Company believes that it is unreasonable for its directors, officers and agents
and the directors, officers and agents of its subsidiaries to assume the risk
of judgments and other expenses which may occur in cases in which the director,
officer or agent received no personal benefit or was not culpable.

E.                                      The
Company recognizes that the issues in controversy in litigation against a
director, officer or agent of a corporation such as the Company or its
subsidiaries are often related to the knowledge, motives and intent of such
director, officer or agent, that he or she is usually the only witness with
knowledge of the essential facts and exculpating circumstances regarding such
matters, and that the long period of time which usually elapses before the
trial or other disposition of such litigation often extends beyond the time
that the director, officer or agent can reasonably recall such matters and may
extend beyond the normal time for retirement for such director, officer or
agent with the result that he or she, after retirement or in the event of his
or her death, his or her spouse, heirs, executors or administrators may be
faced with limited ability and undue hardship in maintaining an adequate
defense, which may discourage such a director, officer or agent from serving in
that position.

F.                                      The
Board of Directors of the Company (the “Board”) has concluded that, to attract
and retain competent and experienced persons to serve as directors and officers
of the Company, it is not only reasonable and prudent but necessary to promote
the best interests of the Company and its stockholders for the Company to
contractually indemnify its directors and certain of its officers in the manner
set forth herein, and to assume for itself liability for expenses and damages
in connection with claims against such directors and officers in connection
with their service to the Company as provided herein.

G.                                     Section 145
of the General Corporation Law of the State of Delaware, under which the
Company is organized (“Section 145”), empowers the Company to
indemnify its directors, officers, employees and agents by agreement and to
indemnify persons who serve, at the request of the Company, as the directors,
officers, employees or agents of other corporations or enterprises, and
expressly provides that the indemnification provided by Section 145 is not
exclusive.

H.                                    The
Company desires and has requested the Indemnitees to serve or continue to serve
as a director and/or officer of the Company, and the Indemnitees only is
willing to serve, or to continue to serve, as a director and/or officer of the
Company if the Indemnitees is furnished the indemnity provided for herein by
the Company.

NOW, THEREFORE, in consideration of the
foregoing premises and the mutual covenants and agreements set forth below, the
parties hereto, intending to be legally bound, hereby agree as follows:

1.                                      Definitions.  For purposes of this Agreement, the
following terms shall have the corresponding meanings set forth below:

“Claim”
means a claim or action asserted by a Person in a Proceeding.

“Company
Action” means a Proceeding in which a Claim has been brought by or in the name
of the Company to procure a judgment in its favor.

“Covered
Entity” means the Company, any subsidiary or affiliate of the Company or any
other Person for which Indemnitees is or was or may be deemed to be serving at
the request of the Company, or any subsidiary of the Company, as a director,
officer, employee, controlling person, agent or fiduciary.

“Disinterested
Director” means, with respect to any determination contemplated by this
Agreement, any Person who, as of the time of such determination, is a member of
the Company’s board of directors but is not a party to any Proceeding then
pending with respect to any Indemnification Event.

“ERISA”
means Employee Retirement Income Security Act of 1974, as amended, or any
similar Federal statute then in effect.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any similar
Federal statute then in effect.

 2
 

“Expenses” means
any and all direct and indirect fees and costs, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating,
printing and binding costs, telephone charges, postage and delivery service
fees and all other disbursements or expenses of any type or nature whatsoever
reasonably incurred by Indemnitees (including fees of investment bankers,
accountants and, subject to the limitations set forth in Section 3(c) below,
reasonable attorneys’ fees) in connection with or arising from an
Indemnification Event, including, without limitation: (i) the investigation or
defense of a Claim; (ii) being, or preparing to be, a witness or otherwise
participating, or preparing to participate, in any Proceeding; (iii)
furnishing, or preparing to furnish, documents in response to a subpoena or
otherwise in connection with any Proceeding; (iv) any appeal of any judgment,
outcome or determination in any Proceeding (including, without limitation, any
premium, security for and other costs relating to any cost bond, supersedes
bond or any other appeal bond or its equivalent); (v) establishing or enforcing
any right to indemnification under this Agreement (including, without
limitation, pursuant to Section 2(c) below), Delaware law or otherwise,
regardless of whether Indemnitees is ultimately successful in such action,
unless as a part of such action, a court of competent jurisdiction over such
action determines that each of the material assertions made by Indemnitees as a
basis for such action was not made in good faith or was frivolous; (vi)
Indemnitees’ defense of any Proceeding instituted by or in the name of the
Company under this Agreement to enforce or interpret any of the terms of this
Agreement (including, without limitation, costs and expenses incurred with
respect to Indemnitees counterclaims and cross-claims made in such action); and
(vii) any Federal, state, local or foreign taxes imposed on Indemnitees as a
result of the actual or deemed receipt of any payments under this Agreement,
including all interest, assessments and other charges paid or payable with
respect to such payments.

An “Indemnification
Event” shall be deemed to have occurred if Indemnitees was or is or becomes, or
is threatened to be made, a party to or witness or other participant in, or was
or is or becomes obligated to furnish or furnishes documents in response to a
subpoena or otherwise in connection with, any Proceeding by reason of the fact
that Indemnitees is or was or may be deemed a director, officer, employee,
controlling person, agent or fiduciary of any Covered Entity, or by reason of
any action or inaction on the part of Indemnitees while serving in any such
capacity (including, without limitation, rendering any written statement that
is a Required Statement or is made to another officer or employee of the
Covered Entity to support a Required Statement).

“Independent
Legal Counsel” means an attorney or firm of attorneys designated by the
Indemnitees that is satisfactory to a majority of the Disinterested Directors
(or, if there are no Disinterested Directors, the Company’s board of directors)
that is experienced in matters of corporate law and neither presently is, nor
in the twenty-four (24) months prior to such designation has been, retained to
represent: (i) the Company or Indemnitees in any matter material to either such
party, or (ii) any other party to the Proceeding giving rise to a claim for
indemnification hereunder.

“Losses”
means any and all losses, claims, damages, liabilities, judgments, fines,
penalties, settlement payments, awards and amounts of any type whatsoever
incurred by Indemnitees in connection with or arising from an Indemnification
Event.

“Organizational
Documents” means any and all organizational documents, charters or similar
agreements or governing documents, including, without limitation (i) with respect
to a corporation, its certificate of incorporation and bylaws, (ii) with
respect to a limited liability company, its operating agreement, and (iii) with
respect to a limited partnership, its partnership agreement.

 3
 

“Person”
means an individual, a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an
unincorporated organization or other enterprise or government or agency or
political subdivision thereof.

“Proceeding”
means any threatened, pending or completed claim, action, suit, proceeding,
arbitration or alternative dispute resolution mechanism, investigation (formal
or informal), inquiry, administrative hearing, appeal or any other actual,
threatened or completed proceeding, whether brought in the right of a Covered
Entity or otherwise and whether of a civil (including intentional or
unintentional tort claims), criminal, administrative, arbitrative or
investigative nature.

“Required
Statement” means a written statement of a Person that is required to be, and
is, filed with the SEC regarding the design, adequacy or evaluation of a
Covered Entity’s internal controls or the accuracy, sufficiency or completeness
of reports or statements filed by a Covered Entity with the SEC pursuant to federal
law and/or administrative regulations, including without limitation, the
certifications contemplated by Sections 302 and 906 of the Sarbanes-Oxley Act
of 2002, as amended, or any rule or regulation promulgated pursuant thereto.

“Reviewing
Party” means, with respect to any determination contemplated by this Agreement,
any one of the following: (i) a majority vote of a quorum consisting of the
Disinterested Directors; (ii) a committee consisting solely of Disinterested
Directors, even if such Persons would not constitute a quorum of the Company’s
board of directors, so long as such committee was designated by a majority of
the Disinterested Directors; (iii) in the absence of any Disinterested
Directors and upon the written consent of Indemnitees, the Company’s
stockholders; or (iv) Independent Legal Counsel (in which case, any
determination shall be evidenced by the rendering of a written opinion).

“SEC”
means the Securities and Exchange Commission.

“Securities
Act” means the Securities Act of 1933, as amended, or any similar Federal
statute then in effect.

2.                                      Indemnification.

(a)                                  Indemnification
of Losses and Expenses.  If an
Indemnification Event has occurred, then, subject to Section 9 below, the
Company shall indemnify and hold harmless Indemnitees, to the fullest extent
permitted by law, against any and all Losses and Expenses, provided the
Indemnitees acted in good faith and in a manner Indemnitees reasonably believed
to be in, or not opposed to, the best interests of the Company, and, with
respect to any criminal Proceeding, had no reasonable cause to believe
Indemnitees’ conduct was unlawful.  The
termination of any Proceeding by judgment, court order, settlement or
conviction or on plea of nolo contendere, or its equivalent, shall not, of
itself, create a presumption that Indemnitees (i) did not act in good faith in
a manner which he reasonably believed to be in, or not opposed to, the best
interests of the Company, or (ii) with respect to any criminal Proceeding, had
reasonable cause to believe that Indemnitees’ conduct was unlawful.  Any indemnification provided for herein shall
be made no later than forty-five (45) days after receipt by the Company of the
Notice as required by Section 3(a) below and subject additionally to Section 4
below.

 4
 

(b)                                 Limitation
with Respect to Company Actions. Notwithstanding the foregoing, the Company
shall not indemnify and hold harmless Indemnitees with respect to any Losses
(as opposed to Expenses) in connection with or arising from any Company
Action.  Furthermore, the Company shall
not indemnify and hold harmless Indemnitees with respect to any Expenses in
connection with or arising from any Company Action as to which the Indemnitees
shall have been finally adjudged to be liable to the Company by a court of
competent jurisdiction due to Indemnitees’ willful misconduct of a culpable
nature in the performance of Indemnitees’ duties to the Company, unless, and
then only to extent that, any court in which such Company Action was brought
shall determine upon application that, despite the adjudication of liability,
but in view of all the circumstances of the case, the Indemnitees is fairly and
reasonably entitled to Expenses for such indemnification as such court shall
deem proper.

(c)                                  Advancement
of Expenses.  The Company shall
advance Expenses to or on behalf of Indemnitees as soon as practicable, but in
any event not later than 20 days after written request therefore by Indemnitees
which request shall be accompanied by vouchers, invoices or similar evidence
documenting in reasonable detail the Expenses incurred or to be incurred by
Indemnitees.  The Indemnitees hereby
undertakes to repay such amounts advanced only if, and to the extent that, it
shall ultimately be determined that Indemnitees is not entitled to be indemnified
by the Company as authorized under Delaware law. In the event that the Company
fails to pay expenses as incurred by Indemnitees as required by this paragraph,
Indemnitees may seek mandatory injunctive relief from any court having
jurisdiction to require the Company to pay expenses as set forth in this
paragraph.  If Indemnitees seeks
mandatory injunctive relief pursuant to this paragraph, it shall not be a
defense to enforcement of the Company’s obligations set forth in this paragraph
that Indemnitees has an adequate remedy at law for damages.

(d)                                 Contribution.  If, and to the extent, the indemnification of
Indemnitees provided for in Section 2(a) above for any reason is held by a
court of competent jurisdiction not to be permissible for liabilities arising
under Federal securities laws or ERISA, then the Company, in lieu of
indemnifying Indemnitees under this Agreement, shall contribute to the amount
paid or payable by Indemnitees as a result of such Losses or Expenses (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Covered Entities and all officers, directors or employees of the Covered
Entities other than Indemnitees who are jointly liable with Indemnitees (or
would be if joined in such Proceeding), on the one hand, and Indemnitees, on
the other hand, or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the relative
fault of the Covered Entities and all officers, directors or employees of the
Covered Entities other than Indemnitees who are jointly liable with Indemnitees
(or would be if joined in such Proceeding), on the one hand, and the
Indemnitees, on the other hand, in connection with the action or inaction that
resulted in such Losses or Expenses, as well as any other relevant equitable
considerations.  The relative fault of
the Covered Entities and all officers, directors or employees of the Covered
Entities other than Indemnitees who are jointly liable with Indemnitees (or
would be if joined in such Proceeding), on the one hand, and Indemnitees, on
the other hand, shall be determined by reference to, among other things, the
degree to which their actions were motivated by intent to gain personal profit
or advantage, the degree to which their liability is primary or secondary, and
the degree to which their conduct is active or passive.  No Person found guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not found guilty of
such fraudulent misrepresentation.

 5
 

(e)                                  Actions
where Indemnitees is Deceased.  If an
Indemnification Event has occurred, and if prior to, during the pendency of or
after completion of a Proceeding Indemnitees dies, the Company shall indemnify
and hold harmless Indemnitees’ heirs, executors and administrators against any
and all Expenses and Losses to the extent Indemnitees would have been entitled
to indemnification pursuant to Sections 2(a) above if Indemnitees were
still alive.

3.                                      Indemnification
Procedures.

(a)                                  Notice
of Indemnification Event. 
Indemnitees shall give the Company notice as soon as practicable of any
Indemnification Event of which Indemnitees becomes aware, provided that any
failure to so notify the Company shall not relieve the Company of any of its
obligations under this Agreement, except if, and then only to the extent that,
such failure increases the liability of the Company under this Agreement.  In addition, Indemnitees shall give the
Company such information and cooperation as it may reasonably require and as
shall be within Indemnitees’ power.

(b)                                 Notice
to Insurers.  If, at the time the
Company receives notice of an Indemnification Event pursuant to Section 3(a)
above, the Company has liability insurance in effect which may cover such
Indemnification Event, the Company shall give prompt written notice of such
Indemnification Event to the insurers in accordance with the procedures set
forth in each of the applicable policies of insurance.  The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of
Indemnitees, all amounts payable as a result of such Indemnification Event in
accordance with the terms of such policies; provided that nothing in this
Section 3(b) shall affect the Company’s obligations under this Agreement or the
Company’s obligations to comply with the provisions of this Agreement in a
timely manner as provided.

(c)                                  Selection
of Counsel.  If the Company shall be
obligated hereunder to pay or advance Expenses or indemnify Indemnitees with
respect to any Losses, the Company shall be entitled to assume the defense of
any related Claims, with counsel selected by the Company and approved by the
Indemnitees in Indemnitees’ reasonable discretion, upon the delivery to
Indemnitees of written notice of its election so to do.  After the retention of such counsel by the
Company, the Company will not be liable to Indemnitees under this Agreement for
any fees of other counsel subsequently incurred by Indemnitees with respect to
the defense of such Claims; provided that: (i) Indemnitees shall have the right
to employ counsel in connection with any such Claim at Indemnitees’ expense;
and (ii) if (A) the employment of counsel by Indemnitees has been previously
authorized by the Company, (B) counsel for Indemnitees shall have provided the
Company with written advice that there may reasonably be expected to exist a
conflict of interest between the Company and Indemnitees in the conduct of any
such defense, or (C) the Company shall not have in fact retained counsel to
assume the defense or shall not continue to retain such counsel to defend such
Claim, then the fees and expenses of Indemnitees’ counsel shall be at the
expense of the Company. The Company may not settle or compromise any claim or
consent to the entry of any judgment with respect to which indemnification is
being sought hereunder without the prior written consent of the Indemnitees
(such consent not to be unreasonably withheld).

4.                                      Determination
of Right to Indemnification.

(a)                                  Successful
Proceeding.  To the extent
Indemnitees has been successful, on the merits or otherwise, in defense of any
Proceeding referred to in Sections 2(a) or 2(b), the Company shall indemnify
Indemnitees against Losses and Expenses incurred by him in connection
therewith.  If

 6
 

Indemnitees is not
wholly successful in such Proceeding, but is successful, on the merits or
otherwise, as to one or more but less than all Claims in such Proceeding, the
Company shall indemnify Indemnitees against all Losses and Expenses actually or
reasonably incurred by Indemnitees in connection with each successfully
resolved Claim.

(b)                                 Other
Proceedings.  In the event that
Section 4(a) is inapplicable, the Company shall nevertheless indemnify
Indemnitees, unless, but then only to the extent that, a Reviewing Party chosen
pursuant to Section 4(c) determines that Indemnitees has not met the applicable
standard of conduct set forth in Sections 2(a) or 2(b), as applicable, as a
condition to such indemnification.

(c)                                  Reviewing
Party Determination. No such indemnification shall be made, however, unless
and until in each specific case there has been a determination that Indemnitees
has met the applicable standard of conduct set forth in Sections 2(a) or 2(b),
as applicable.  As a condition to any
such indemnification, a Reviewing Party chosen by the Company’s board of
directors shall make such determination, subject to the following:

(i)                                     A
Reviewing Party so chosen shall act in good faith to assure Indemnitees a
complete opportunity to present to such Reviewing Party Indemnitees’ case that
Indemnitees has met the applicable standard of conduct.

(ii)                                  Indemnitees
shall be deemed to have acted in good faith if Indemnitees’ action is based on
the records or books of account of a Covered Entity, including, without
limitation, its financial statements, or on information supplied to Indemnitees
by the officers or employees of a Covered Entity in the course of their duties,
or on the advice of legal counsel for a Covered Entity or on information or
records given, or reports made, to a Covered Entity by an independent certified
public accountant or by an appraiser or other expert selected with reasonable
care by a Covered Entity.  In addition,
the knowledge and/or actions, or failure to act, of any director, officer,
agent or employee of a Covered Entity shall not be imputed to Indemnitees for
purposes of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of
this Section 4(c)(ii) are satisfied, it shall in any event be presumed that
Indemnitees has at all times acted in good faith and in a manner Indemnitees
reasonably believed to be in or not opposed to the best interests of the
Company.  Any Person seeking to overcome
this presumption shall have the burden of proof and the burden of persuasion,
by clear and convincing evidence.

(iii)                               If
a Reviewing Party chosen pursuant to this Section 4(c) shall not have made a
determination whether Indemnitees is entitled to indemnification within
forty-five (45) days after receipt by the Company of the request therefore, the
requisite determination of entitlement to indemnification shall be deemed to
have been made and Indemnitees shall be entitled to such indemnification,
absent (A) a misstatement by Indemnitees of a material fact, or an omission of
a material fact necessary to make Indemnitees’ statement not materially
misleading, in connection with the request for indemnification, or (B) a
prohibition of such indemnification under applicable law; provided, however,
that such 45-day period may be extended for a reasonable time, not to exceed an
additional fifteen (15) days, if the Reviewing Party in good faith requires
such additional time for obtaining or evaluating documentation and/or
information relating thereto; and provided, further, that the foregoing
provisions of this Section 4(c)(iii) shall not apply if (I) the determination
of entitlement to indemnification is to be made by the stockholders of the
Company, (II), a special meeting of stockholders is called by the board of
directors of the Company for such purpose with thirty (30) days

 7
 

after the
stockholders are chosen as the Reviewing Party, (III) such meeting is held for
such purpose within sixty (60) days after having been so called, and (IV)such
determination is made thereat.

(iv)                              Change
In Control.  If there has been such a
Change in Control of the Company, the Reviewing Party shall be the Independent
Legal Counsel.  The Company agrees that
if there is a Change in Control of the Company, then with respect to all
matters thereafter arising concerning the rights of Indemnitees to
Indemnification under this Agreement or any other agreement or under the
Company’s Certificate of Incorporation or Bylaws as now or hereafter in effect,
Independent Legal Counsel shall be selected by Indemnitees and approved by the
Company (which approval shall not be unreasonably withheld).  Such counsel, among other things, shall
render its written opinion to the Company and Indemnitees as to whether and to
what extent Indemnitees would be permitted to be indemnified under applicable
law and this Agreement and the Company agrees to abide by such opinion.  The Company agrees to pay the reasonable fees
of the Independent Legal Counsel referred to above and to fully indemnify such
counsel against any and all expenses (including attorneys’ fees), claims,
liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.

For
purposes of this Section 4(c)(iv), a “Change in Control” shall mean a change in
ownership or control of the Company effected through any of the following
transactions:

(A)                              any “person”
or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934 (the “1934 Act”), other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company, or John Fox
and his affiliates, being or becoming the “beneficial owner” (as defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, of greater than fifty
percent (50%) of the outstanding voting stock of the Company; or

(B)                                at
any time during any period of three consecutive years (not including any period
prior to the effective date of this Plan), individuals who at the beginning of
such period constitute the Board of Directors (and any new director whose
election by the Board or whose nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors
then still in office who were either directors at the beginning of such period
or whose election or nomination for election was previously so approved)
ceasing for any reason to constitute a majority thereof; or

(C)                                the
stockholders of the Company approving a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least 80% of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, or an
agreement for the sale by the Company of all or substantially all of the
Company’s assets.

(d)                                 Appeal
to Court.  Notwithstanding a
determination by a Reviewing Party chosen pursuant to Section 4(c) that
Indemnitees is not entitled to indemnification with respect to a specific Claim
or Proceeding (an “Adverse Determination”), Indemnitees shall have the right to
apply to the Court of Chancery of Delaware, the court in which that Claim or
Proceeding is or was pending

 8
 

or any other court
of competent jurisdiction for the purpose of enforcing Indemnitees’ right to
indemnification pursuant to this Agreement, provided that Indemnitees shall
commence any such Proceeding seeking to enforce Indemnitees’ right to
indemnification within one (1) year following the date upon which Indemnitees
is notified in writing by the Company of the Adverse Determination.  In the event of any dispute between the
parties concerning their respective rights and obligations hereunder, the
Company shall have the burden of proving that the Company is not obligated to
make the payment or advance claimed by Indemnitees.

(e)                                  Presumption
of Success.  The Company acknowledges
that a settlement or other disposition short of final judgment shall be deemed
a successful resolution for purposes of Section 4(a) if it permits a party to
avoid expense, delay, distraction, disruption or uncertainty.  In the event that any Proceeding to which
Indemnitees is a party is resolved in any manner (other than by adverse judgment
against Indemnitees) including, without limitation, settlement of such
Proceeding with or without payment of money or other consideration, it shall be
presumed that Indemnitees has been successful on the merits or otherwise in
such Proceeding. Anyone seeking to overcome this presumption shall have the
burden of proof and the burden of persuasion, by clear and convincing evidence.

(f)                                    Expenses
Related to this Agreement. 
Notwithstanding any other provision in this Agreement to the contrary,
the Company shall indemnify Indemnitees against all Expenses incurred by
Indemnitees in connection with any Proceeding under this Section 4
involving Indemnitees and against all Expenses incurred by Indemnitees in
connection with any other Proceeding between the Company and Indemnitees
involving the interpretation or enforcement (subject to Section 10) of the
rights of Indemnitees under this Agreement unless a court of competent
jurisdiction finds that each of the claims and/or defenses of Indemnitees in
any such Proceeding was frivolous or made in bad faith.

5.                                      Additional
Indemnification Rights; Non-exclusivity.

(a)                                  Scope.
The Company hereby agrees to indemnify Indemnitees to the fullest extent
permitted by law, even if such indemnification is not specifically authorized
by the other provisions of this Agreement or any other agreement, the
Organizational Documents of any Covered Entity or by applicable law.  In the event of any change after the date of
this Agreement in any applicable law, statute or rule which expands the right
of an Delaware corporation to indemnify a member of its board of directors or
an officer, employee, controlling person, agent or fiduciary, it is the intent
of the parties hereto that Indemnitees shall enjoy by this Agreement the
greater benefits afforded by such change. In the event of any change in any
applicable law, statute or rule which narrows the right of an Delaware
corporation to indemnify a member of its board of directors or an officer,
employee, controlling person, agent or fiduciary, such change, to the extent
not otherwise required by such law, statute or rule to be applied to this
Agreement, shall have no effect on this Agreement or the parties rights and
obligations hereunder except as set forth in Section 9(a) hereof.

(b)                                 Non-exclusivity.  The rights to indemnification, contribution
and advancement of Expenses provided in this Agreement shall not be deemed
exclusive of, but shall be in addition to, any other rights to which
Indemnitees may at any time be entitled under the Organizational Documents of
any Covered Entity, any other agreement, any vote of stockholders or
Disinterested Directors, the laws of the State of Delaware or otherwise.  Furthermore, no right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy 

 9
 

shall be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion of any right or remedy
hereunder or otherwise shall not prevent the concurrent assertion of any other
right or remedy.  The rights to
indemnification, contribution and advancement of Expenses provided in this
Agreement shall continue as to Indemnitees for any action Indemnitees took or
did not take while serving in an indemnified capacity even though Indemnitees
may have ceased to serve in such capacity.

6.                                      No
Duplication of Payments.

The
Company shall not be liable under this Agreement to make any payment of any
amount otherwise identifiable hereunder, or for which advancement is provided
hereunder, if and to the extent Indemnitees has otherwise actually received
such payment, whether pursuant to any insurance policy, the Organizational
Documents of any Covered Entity or otherwise (but specifically excluding any
payment received by the Indemnitees from any insurance policy maintained by or
for the benefit of such Indemnitees (other than the Company) so long as
Indemnitees does not by virtue thereof actually retain duplicative payments).

7.                                      Mutual
Acknowledgement.

Both
the Company and Indemnitees acknowledge that, in certain instances, Federal law
or public policy may override applicable state law and prohibit the Company
from indemnifying its directors and officers under this Agreement or otherwise.  For example, the Company and Indemnitees
acknowledge that the SEC has taken the position that indemnification is not
permissible for liabilities arising under certain Federal securities laws, and
Federal legislation prohibits indemnification for certain ERISA violations.  Indemnitees understands and acknowledges that
the Company has undertaken, or may be required in the future to undertake, with
the SEC to submit the question of indemnification to a court in certain circumstances
for a determination of the Company’s right under public policy to indemnify
Indemnitees, and any right to indemnification hereunder shall be subject to,
and conditioned upon, any such required court determination.

8.                                      Liability
Insurance.

(a)                                  Maintenance
of D&O Insurance.  The Company hereby
covenants and agrees that, so long as Indemnitees shall continue to serve as an
agent of the Company and thereafter so long as Indemnitees shall be subject to
any possible proceeding by reason of the fact that Indemnitees was an agent of
the Company, the Company, subject to Section 8(c), shall promptly obtain
and maintain in full force and effect directors’ and officers’ liability
insurance (“D&O Insurance”) in reasonable amounts from established
and reputable insurers, and the Company’s Organizational Documents shall at all
times provide for indemnification and exculpation of officers and directors to
the fullest extent permitted under applicable law.

(b)                                 Rights
and Benefits. In all policies of D&O Insurance, Indemnitees shall be
named as an insured in such a manner as to provide Indemnitees the same rights
and benefits as are accorded to the most favorably insured of the Company’s
officers and directors.  The Company
shall advise Indemnitees as to the general terms of, and the amounts of
coverage provide by, any liability insurance policy described in this Section 8
and shall promptly notify Indemnitees if, at any time, any such insurance
policy will no longer be maintained or the amount of coverage under any such
insurance policy will be decreased.

 10
 

(c)                                  Limitation
on Required Maintenance of D&O Insurance.  Notwithstanding the foregoing, the Company
shall have no obligation to obtain or maintain D&O Insurance if the Company
determines in good faith that such insurance is not reasonably available, the
premium costs for such insurance are disproportionate to the amount of coverage
provided, the coverage provided by such insurance is limited by exclusions so
as to provide an insufficient benefit, or Indemnitees is covered by similar
insurance maintained by a subsidiary of the Company.

9.                                      Exceptions.

Any
other provision herein to the contrary notwithstanding, the Company shall not
be obligated pursuant to the terms of this Agreement to indemnify Indemnitees:

(a)                                  against
any Losses or Expenses, or advance Expenses to Indemnitees, with respect to
Claims initiated or brought voluntarily by Indemnitees, and not by way of
defense (including, without limitation, affirmative defenses and
counterclaims), except (i) Claims to establish or enforce a right to indemnification,
contribution or advancement with respect to an Indemnification Event, whether
under this Agreement, any other agreement or insurance policy, the Company’s
Organizational Documents of any Covered Entity, the laws of the State of
Delaware or otherwise, (ii) if the Company’s board of directors has approved
specifically the initiation or bringing of such Claim. (iii) if such
indemnification is expressly required to be made by law, or (iv) if such
indemnification is provided by the Company, in its sole discretion, pursuant to
the powers vested in the Company under the General Corporation Law of the State
of Delaware;

(b)                                 against
any Losses or Expenses, or advance Expenses to Indemnitees, with respect to any
proceeding instituted by Indemnitees to enforce or interpret this Agreement, if
a court of competent jurisdiction determines that the material assertions made
by Indemnitees in such proceeding were not made in good faith or were
frivolous;

(c)                                  for
any amounts paid in settlement of a proceeding unless the Company consents to
such settlement, which consent shall not be unreasonably withheld;

(d)                                 against
any Losses or Expenses, or advance Expenses to Indemnitees, with respect to
Claims arising (i) with respect to an accounting of profits made from the
purchase and sale (or sale and purchase) by Indemnitees of securities of the
Company within the meaning of Section 16(b) of the Exchange Act or (ii)
pursuant to Sections 304 or 306 of the Sarbanes-Oxley Act of 2002, as amended,
or any rule or regulation promulgated pursuant thereto; or

(e)                                  if,
and to the extent, that a court of competent jurisdiction renders a final,
unappealable decision that such indemnification is not lawful.

10.                               Remedies
of Indemnitees.

(a)                                  Right
to Petition Court.  In the event that
Indemnitees makes a request for payment of Losses and Expenses or a request for
an advancement of Expenses and the Company fails to make such payment or
advancement in a timely manner pursuant to the terms of this Agreement,
Indemnitees may petition a court of law to enforce the Company’s obligations
under this Agreement.

 11
 

(b)                                 Burden
of Proof.  In any judicial proceeding
brought under this Section 10, the Company shall have the burden of proving by
clear and convincing evidence that Indemnitees is not entitled to payment of
Losses and Expenses hereunder.

(c)                                  Expenses.  The Company agrees to reimburse Indemnitees
in full for any Expenses incurred by Indemnitees in connection with
investigating, preparing for, litigating, defending or settling any action
brought by Indemnitees under this Section 10, or in connection with any claim
or counterclaim brought by the Company in connection therewith.

(d)                                 Validity
of Agreement.  The Company shall be
precluded from asserting in any Proceeding, including, without limitation, an
action under this Section 10, that the provisions of this Agreement are not
valid, binding and enforceable or that there is insufficient consideration for
this Agreement and shall stipulate in court that the Company is bound by all
the provisions of this Agreement.

(e)                                  Failure
to Act Not a Defense.  The failure of
the Company (including its Board of Directors or any committee thereof,
Independent Legal Counsel or stockholders) to make a determination concerning
the permissibility of the payment of Losses and Expenses or the advancement of
Expenses under this Agreement shall not be a defense in any action brought
under this Section 10, and shall not create a presumption that such payment or
advancement is not permissible.

11.                               Survival
of Rights.

(a)                                  All
agreements and obligations of the Company contained herein shall continue
during the period Indemnitees is an agent of the Company and shall continue
thereafter so long as Indemnitees shall be subject to any possible claim or
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, arbitrational, administrative or investigative, by reason of the fact
that Indemnitees was serving in the capacity referred to herein.

(b)                                 The
Company shall require any successor to the Company (whether direct or indirect,
by purchase, merger, consolidation or otherwise) or to all or substantially all
of the business or assets of the Company, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place.

12.                               Miscellaneous.

(a)                                  Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

(b)                                 Binding
Effect; Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors and assigns (including
with respect to the Company, any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company) and with respect to Indemnitees, his or her
spouse, heirs, and personal and legal representatives.  The Company shall require and cause any
successor or assign (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part,
of the business and/or assets of the Company, to assume and agree to perform
this Agreement in the

 12
 

same manner and to
the same extent that the Company would be required to perform if no such
succession or assignment had taken place. 
This Agreement shall continue in effect with respect to Claims relating
to Indemnification Events regardless of whether Indemnitees continues to serve
as a director, officer, employee, controlling person, agent or fiduciary of any
Covered Entity.

(c)                                  Notice.  All notices and other communications required
or permitted hereunder shall be in writing, shall be effective when given, and
shall in any event be deemed to be given (i) five (5) days after deposit with
the U.S. Postal Service or other applicable postal service, if delivered by
first class mail, postage prepaid, (ii) upon delivery, if delivered by hand,
(iii) one (1) business day after the business day of deposit with Federal
Express or similar, nationally recognized overnight courier, freight prepaid,
or (iv) one (1) business day after the business day of delivery by confirmed
facsimile transmission, if deliverable by facsimile transmission, with copy by
other means permitted hereunder, and addressed, if to Indemnitees, to
Indemnitees’ address or facsimile number (as applicable) as set forth beneath
Indemnitees’ signature to this Agreement, or, if to the Company, at the address
or facsimile number (as applicable) of its principal corporate offices
(attention: Secretary), or at such other address or facsimile number (as
applicable) as such party may designate to the other parties hereto. 

(d)                                 Enforceability.  This Agreement, when executed and delivered
by the Company in accordance with the provisions hereof, shall be a legal,
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms.

(e)                                  Consent
to Jurisdiction.  The Company and
Indemnitees each hereby irrevocably consent to the jurisdiction and venue of
the federal or state courts located in the State of Delaware for all purposes
in connection with any Proceeding which arises out of or relates to this
Agreement and agree that any Proceeding instituted under this Agreement shall
be commenced, prosecuted and continued only in the federal or state courts
located in the State of Delaware.

(f)                                    Severability.  The provisions of this Agreement shall be
severable in the event that any of the provisions hereof (including any provision
with a single section, paragraph or sentence) are held by a court of competent
jurisdiction to be invalid, void or otherwise unenforceable, and the remaining
provisions shall remain enforceable to the fullest extent permitted by law.  Furthermore, to the fullest extent possible,
the provisions of this Agreement (including, without limitation, each portion
of this Agreement containing any provision held to be invalid, void or
otherwise unenforceable that is not itself invalid, void or unenforceable)
shall be construed so as to give effect to the extent manifested by the
provision held invalid, illegal or unenforceable.

(g)                                 Choice
of Law.  This Agreement shall be
governed by and its provisions shall be construed and enforced in accordance
with, the laws of the State of Delaware, without regard to the conflict of laws
principles thereof.

(h)                                 Subrogation.  In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitees (other than with respect to any rights of
recovery under any insurance policy maintained by the Indemnitees or by any
Person (other than the Company) for and on behalf of the Indemnitees) who shall
execute all documents required and shall do all acts that may be necessary to
secure such rights and to enable the Company effectively to bring suit to
enforce such rights.

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(i)                                     Amendment
and Termination.  No amendment,
modification, termination or cancellation of this Agreement shall be effective
unless it is in a writing signed by the parties to be bound thereby.  Notice of same shall be provided to all
parties hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

(j)                                     No
Construction as Employment Agreement. 
Nothing contained in this Agreement shall be construed as giving
Indemnitees any right to be retained or continue in the employ or service of
any Covered Entity.

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of
the day and year first above written.

	
  

  	
  MarkWest
  Hydrocarbon, Inc.

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  INDEMNITEES:

  
	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
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