GAMING ACT, JULY 5, 2004, ACT 71.
(C)
TWO PERCENT (2%) OF PURSES SHALL BE PAID
MONTHLY TO PA HBPA FROM THE PURSE ACCOUNT, WHICH MAY BE INCREASED BY MUTUAL
WRITTEN CONSENT OF THE PARTIES.
FOR PURPOSES OF THIS ARTICLE, NET COMMISSIONS
ARE DEFINED AS THE GROSS HANDLE AT THE RACETRACK, TELEPHONE ACCOUNT BETTING,
NON-PRIMARY BETTING LOCATIONS (OTB'S), LESS THE AMOUNTS RETURNED TO THE BETTING
PUBLIC, LESS THE AMOUNTS PAID TO THE COMMONWEALTH OF PENNSYLVANIA AS REQUIRED BY
STATUTE, LESS HOST FEES PAID TO INTRASTATE AND INTERSTATE TRACKS OR HOST FEES
PAID TO THE NTRA FOR RACES RECEIVED OR FOR TELEPHONE OR ELECTRONIC WAGERING
RECEIVED FROM PERSONS IN GEOGRAPHIC PROXIMITY.
(D)
THE ASSOCIATIONS WILL USE COMMERCIALLY
REASONABLE BEST EFFORTS TO MAXIMIZE EACH EXISTING COMPONENT OF THE "GROSS
HANDLE" DESCRIBED IN
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SECTION 1 (A)(I) THROUGH (VII) ABOVE, AS WELL AS ANY ADDITIONAL SOURCE OF GROSS
HANDLE THAT BECOMES AVAILABLE DURING THE TERM OF THIS AGREEMENT.
2.
SIMULCASTING CONSENTS
(A)
THE PA HBPA GRANTS ITS CONSENT AND APPROVAL
TO THE ASSOCIATIONS AS PROVIDED FOR UNDER SECTIONS 216, 216A AND 234 OF THE RACE
HORSE INDUSTRY REFORM ACT AND THE PROVISIONS OF THE INTERSTATE HORSE RACING ACT
OF 1978, SO THAT THE ASSOCIATIONS MAY ACT AS "HOST LICENSEES" FOR THE PURPOSE OF
TRANSMITTING AND RECEIVING INTRASTATE, INTERNATIONAL AND INTERSTATE SIMULCAST
RACES, SAID CONSENT AND APPROVAL TO BE EFFECTIVE FOR ANY AGREEMENT THAT EXISTED
PRIOR TO THE EFFECTIVE DATE OF THIS AGREEMENT.
AS TO ANY NEW RACETRACKS THE
ASSOCIATIONS SHALL PRESENT ANY PROPOSED NEW SIMULCAST AGREEMENT TO PA HBPA FOR
ITS REVIEW AND APPROVAL, WHICH SHALL NOT BE UNREASONABLY WITHHELD.
SUCH
APPROVAL TO BE GIVEN OR DENIED WITHIN TWO (2) DAYS OF PRESENTATION TO PA HBPA.
(B)
IF PA HBPA DETERMINES THAT AN EXISTING
SIMULCAST AGREEMENT IS NOT IN THE BEST INTEREST OF RACING OR THAT A NEW
SIMULCAST AGREEMENT WOULD BE IN THE BEST INTEREST OF RACING, IT SHALL NOTIFY THE
ASSOCIATIONS AND THE PARTIES SHALL MEET AND DISCUSS THE EXISTING OR PROPOSED
SIMULCAST AGREEMENT.
(C)
THE PA HBPA WILL USE COMMERCIALLY
REASONABLE BEST EFFORTS TO MAXIMIZE PARTICIPATION OF ITS MEMBERS AND THEIR
HORSES TO ASSIST IN THE GOALS DESCRIBED IN SECTION L(D) ABOVE.
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3.
COMPATIBILITY OF PURSES
(A)
IT IS THE INTENT OF ASSOCIATIONS AND PA
HBPA TO PROMOTE COMPETITIVE HORSE RACING AT PENN NATIONAL TO (I) AVOID ANY
UNDERPAYMENT OR OVERPAYMENT OF PURSES (EXCEPT SEASONAL ADJUSTMENTS) AND
(II) ASSURE THE PAYMENT, AS FAR AS PRACTICAL AND FEASIBLE, OF CONSISTENT PURSES
THROUGHOUT THE CONTRACT YEAR.
(B)
ASSOCIATIONS SHALL NOTIFY PA HBPA OF THE
RACING DATES APPLIED FOR TO THE SHRC FOR THE NEXT FOLLOWING CALENDAR YEAR BY
PROMPTLY SENDING TO THE PA HBPA A COPY OF THEIR APPLICATION FILED WITH THE
SHRC.
THE ACTUAL PARI- MUTUEL HANDLES AND SLOT MACHINE REVENUE FROM PENN
NATIONAL DIRECTED TO PURSES FROM THE CURRENT YEAR FOR THE COMPARABLE DATES WILL
BE USED AS A GUIDE IN PROJECTING THE APPROXIMATE HANDLE FOR THE ENSUING YEAR.
THE PURSE FORMULA AS DESCRIBED UNDER PARAGRAPH 1