DAVID A. PATERSON ‘Govennon: ‘STATE OF NEw York October 6, 2010 VIA ERTIFIED MAIL Honorable Barry E. Snyder, Sr. President of the Seneca Nation of Indians 12837 Route 438 Cattaraugus Territory, Seneca Nation Irving, NY 14081 Honorable Barry E. Snyder, Sr. President of the Seneca Nation of Indians P.O. Box 237 Salamanca, NY 14779 Re: Notice of Claim Dear President Snyder: This is to invoke the negotiation provision of paragraph 14(b) of the Nation- State Gaming Compact between the Seneca Nation of Indians (the “Nation”) and the State of New York (the “State”), for the Nation’s continued nonpayment of past due State contributions for 2009 and 2010. As Governor Paterson indicated in his September 17, 2010 letter to you, the ‘Nation’s past due amount to the State for exclusivity payments for 2009 is approximately $105,500,000, and the Nation owes the State approximately $108,665,000 for 2010. These non payments, coupled with the Nation’s failure to remit in timely fashion the State exclusivity contributions from past, uncontested calendars, constitute a material, uncured breach. Accordingly, in the absence of a prompt resolution to this matter, the State is entitled to terminate the Nation-State Gaming Compact. ‘We are hopeful the Nation will agree to meet within 14 days of receipt of this, letter to negotiate in good faith and attempt to reach a prompt solution. Otherwise, in EXECUTIVE CHAMBER STATECAPITOL ALBANY 12224 ‘worn. gov PETER J. KIERNANaccord with the Nation-State Gaming Compact, the State will commence arbitration and seek a finding of material breach. Veh \ Peter J. Kiernan