Document:

SERVICES AGREEMENT

         Agreement dated February 1, 2000, by and between Autotote Systems,
Inc., a Delaware corporation ("Autotote") and Sam Houston Race Park, Ltd.
("Owner").

         WHEREAS, Owner operates a facility known as Sam Houston Race Park,
Houston, Texas (the "Facility") for the conduct on its premises of the activity
specified in Exhibit A and requires certain services of Autotote in connection
with the establishment and operation of services that are described in this
Agreement ("Services") at the Facility; and

         WHEREAS, AUTOTOTE desires to furnish certain equipment ("Equipment"),
labor and the software ("Software") required to perform the Services called for
by this Agreement (collectively the "System"), all as described in Exhibit B.

         NOW, THEREFORE, in consideration of the premises and the mutual
convenants hereinafter set forth, the parties hereto agree as follows:

         SECTION 1      FURNISHING OF SYSTEM AND SERVICES

         (a) Subject to the terms and conditions of this Agreement, Autotote
agrees to operate and maintain the System at the Facility on all days on which
licensed racing/simulcasting is being conducted at the Facility during the term
of this Agreement. Owner agrees to exclusively employ Autotote to perform the
Services during the term of this Agreement. The parties may agree to install
portions of the System at other locations and such locations shall be deemed
included within "Facility"; such agreement shall not be unreasonably withheld by
either party.

         (b) In connection with such Services, Autotote agrees to maintain the
System at the Facility, including furnishing the items described in Exhibit B.

         (c) All rights, title and ownership interest in and to the System shall
at all times remain with Autotote and the System shall remain in the possession
and under the direct control of Autotote. Owner grants Autotote unimpeded access
to any System at any time and shall permit the removal by Autotote of the
portable parts of the System when not required to provide Services at the
Facility.

         SECTION 2      OWNER RESPONSIBILITIES. Owner shall be responsible for
the items described in Exhibit D.

         SECTION 3      INSTALLATION. Owner agrees to perform in a good and
workmanlike manner all of the acts required to be performed by Owner as set
forth in the applicable provisions of and exhibits to this Agreement. Autotote
acknowledges Owner's performance of this section, with respect to the
installation prior to the date hereof.

         SECTION 4      PRICE(S) AND PAYMENT.

(a) Owner agrees to pay Autotote as provided in Exhibit F.

(b) Any charges for work done by Autotote under any section of this Agreement,
or for additional material or equipment supplied by Autotote in accordance with
order(s) of Owner or its agent, shall be considered as amounts due to Autotote
from Owner in accordance with Exhibit F.

(c) If it becomes necessary for Autotote to undertake work or activities, or
purchase or install equipment or materials, which herein are made the
obligations of Owner, in order to insure Autotote's proper performance of the
Agreement, then any costs incurred by Autotote as a result of such work,
activities, purchases, or installations shall be considered as amounts due to
Autotote from Owner in accordance with Exhibit F.

(d) Autotote may refuse to provide Services hereunder for so long as any failure
of Owner to pay bonafide amounts due hereunder continues for ten (10) days after
Owner receives notice from Autotote that amounts due have not been paid, and
Autotote may terminate this Agreement and be relieved and discharged from any
and all further responsibility, liability or obligation hereunder.

         SECTION 5      TERM. This Agreement shall be in full force and effect
as of February 1, 2000 and for a period of five (5) years ending January 30,
2005, unless sooner terminated as provided herein.

If, during the term of this Agreement, Owner gains the legislative authority to
conduct video gaming at the Facility, Autotote will forward a proposal to
include Probe XLC video gaming terminals. If the proposal were to be accepted by
Owner in its sole discretion, the remaining term of the Agreement would be
allowed to expire upon commencement of a new Agreement that includes the Probe
XLC equipment.

         SECTION 6      SPECIAL TERMINATION. In the event that wagering at the
facility shall be prohibited or become illegal by statute or court decision or
by action of cognizant governmental agency, the period of this Agreement shall
be deemed to have terminated as of the date of such prohibition or cessation of
such legal wagering, but without prejudice to the rights of either party up to
the date of termination; provided, however, that in the event the prohibition or
cessation of legal wagering is removed and racing on the abovementioned premises
becomes legal, this Agreement shall be returned to force intact, subject to
availability of personnel and equipment, for the unused balance of the term of
the Agreement. Upon termination, Autotote shall have the right to remove its
personnel, materials and equipment from the Facility.

After a period of two (2) years after the effective date of this Agreement,
Owner may elect to cease its pari-mutuel operations at the Facility without
incurring liquidated damages pursuant to Section 13 (C), provided, however, that
in the event pari-mutuel operation is resumed, this Agreement shall be returned
to force intact, subject to availability of personnel and equipment, for the
unused balance of the term of this Agreement.

         SECTION 7      WARRANTY
         (a) Autotote warrants that the System delivered and installed hereunder
shall be suitable for betting in accordance with provisions of the Texas Racing
Act and rules and regulations of the Texas Racing Comission and that it will
operate efficiently and without interruption on all wagering days for the term
of this Agreement; provided, however, that there shall not be deemed to be a
breach of the foregoing guarantee and warranty if wagering is interrupted for
less than thirty (30) minutes on any racing day, or if any interruption in the
function of any component part or unit of the System takes place which does not
prevent the efficient operation of wagering on any wagering day, or if not more
than ten percent (10%) of the ticket issuing machines fail to operate at any
time on any wagering day, or if the failure of the System to operate efficiently
or without interruption shall be due to or result from one or more of the causes
enumerated in Section 9 hereof, or the wilfull misconduct or gross negligence of
Owner, its agents or employees, or of any third party, or for any other cause
not within the control of Autotote and/or its employees. Notwithstanding the
above, if more than five (5) such interruptions occur per calendar year during
the term of this Agreement, the default provisions of Section 13 herein shall
apply.

         (b) THE WARRANTIES AND REMEDIES SET FORTH IN THIS AGREEMENT SHALL
EXTEND ONLY TO OWNER, ARE THE SOLE AND EXCLUSIVE WARRANTIES AND REMEDIES
AVAILABLE TO OWNER, APPLY TO ALL EQUIPMENT AND SOFTWARE FURNISHED THEREUNDER AND
ARE EXPRESSLY MADE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS, IMPLIED, OR
STATUTORY, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE

         (c) Liquidated damage obligations of Autotote constitute the sole and
exclusive remedy of Owner concerning performance by Autotote or the System or
any part thereof relating to the Services, and are specified in Exhibit G.

         SECTION 8      PATENT, TRADEMARK AND COPYRIGHT INFRINGEMENT
         (a) Autotote agrees to defend at its own cost and expense all patent
claims or patent litigation (including any claim for damages or royalties which
may be made or instituted against Owner, or to which Owner may be a party),
based upon or by reason of the installation and operation of the System,
uncombined with any equipment or device not furnished by Autotote, and to
indemnify and save Owner harmless against any damages or liability incurred or
sustained by Owner by reason of any such claim or litigation Owner shall notify
Autotote promptly in writing of any claim of infringement for which Autotote is
responsible, shall cooperate with Autotote in every reasonable way to facilitate
the defense of any such claim and shall allow Autotote to have sole control of
the defense of any such claim, suit or cause of action and all negotiations for
the settlement or compromise thereof. Should any System part thereof become or
in Autotote's opinion be likely to become the subject of a claim for
infringement, Autotote shall at its own expense and option, either procure for
Owner the right to continue using such System or replace the same with a
non-infringing system or modify the System so that it becomes non-infringing or
require the System's return; provided, however, if Equipment is replaced or
modified such replacements or modifications shall result in equally suitable
substitute equipment. This Section shall survive cancellation or termination of
this Agreement.

         (b) THE FOREGOING STATES THE SOLE AND EXCLUSIVE LIABILITY OF THE
PARTIES HERETO FOR INFRINGEMENT OR THE LIKE OF PATENTS, TRADEMARKS AND
COPYRIGHTS, WHETHER DIRECT OR CONTRIBUTORY, AND IS IN LIEU OF ALL WARRANTIES,
EXPRESS, IMPLIED OR STATUTORY IN REGARD THERETO, INCLUDING WITHOUT LIMITATION,
THE WARRANTY AGAINST INFRINGEMENT SPECIFIED IN THE UNIFORM COMMERCIAL CODE.

         SECTION 9      FORCE MAJEURE. Non-performance of any of the obligations
of Autotote or Owner (other than payment obligations) hereunder due to delays
from any cause beyond their respective control which could not by reasonable
diligence have been avoided, including any act of governmental authority, act of
God, accident such as fire, or explosion, strike or other labor difficulties,
riot, failure of transportation facilities, shortage of fuel or other material
shortage, shall be excusable delay and shall not be a breach of this Agreement.
Neither Owner nor Autotote shall be liable to the other for any additional cost
as a result of any such delay.

         SECTION 10     OWNERSHIP RIGHTS AND CONFIDENTIAL INFORMATION. All
information, know-how, equipment, programming, software, trademarks, trade
secrets, plans, drawings, specifications and documentation of Autotote, and all
other property of Autotote, real or personal, tangible or intangible, of any
nature whatsoever, used or developed in the course of the performance of this
Agreement, including, without limitation, the Equipment and Software furnished
with the System, shall be and remain the sole property of Autotote and neither
Owner nor any other party shall have any interest therein. Owner and Autotote
shall in all respects honor and maintain the confidentiality of such
confidential or proprietary information as may be disclosed by one party to the
other, and shall not use or disclose to others any such information, except for
purposes of performing this Agreement. For purposes of this section, Autotote
shall include its respective subsidiaries and affiliates. Confidential
Information shall not include information in the public domain, rightfully
acquired from a third party, already known or independently developed without
breach of this Agreement.

         SECTION 11     LIMITATION OF LIABILITY. EXCEPT AS SPECIFICALLY PROVIDED
FOR HEREIN, IN NO EVENT SHALL AUTOTOTE BE LIABLE FOR ANY INCIDENTAL OR
CONSEQUENTIAL DAMAGES. IN NO EVENT SHALL AUTOTOTE'S LIABILITY HEREUNDER FOR
BREACH OF ANY PROVISION OF THIS AGREEMENT (OTHER THAN WARRANTY AGAINST PATENT
INFRINGEMENT), EXCEED THE SPECIFIC LIQUIDATED DAMAGE AMOUNT PROVIDED IN THIS
AGREEMENT PLUS ANY SPECIFIC OBLIGATIONS PROVIDED IN THIS AGREEMENT TO INDEMNIFY
FOR THIRD PARTY CLAIMS.

         SECTION 12     INDEMNITY

         (a) Autotote shall indemnify and hold Owner harmless against any loss,
liability, costs or expenses (including reasonable attorney's fees) arising out
of or related to claims and suits for damages to person or property which may be
instituted against Owner, or to which Owner may be made a party, arising out of
or by reason of the Services provided herein by Autotote, including actions by
Autotote, its agents, servants and employees. Autotote shall have the right to
exercise full control of all negotiations and litigation in connection
therewith, including selection of counsel, and shall not be liable for any costs
or expenses incurred by Owner without Autotote's prior written approval, nor
shall Autotote be responsible for any claim or litigation based on equipment not
furnished by Autotote as part of its Services hereunder.

         (B) Owner will indemnify and hold Autotote harmless against any loss,
liability, costs or expenses (including reasonable attorney's fees) arising out
of or related to claims or suits for damages to persons or property resulting
from the operation of the wagering by agents and employees of Owner. Owner shall
have the right to exercise full control of all negotiations and litigation in
connection therewith, including selection of counsel and shall not be liable for
any costs or expenses incurred by Autotote without Owner's prior written
approval.

         SECTION 13     DEFAULT.

         (a) In the event that Autotote shall default in the performance of any
provision of this Agreement on its part to be performed (except a breach by
Autotote of the provisions of Section 7 and Section 2 of Exhibit G hereof as to
which the provisions of said paragraphs shall apply) and such default shall not
be cured within a period of twenty (20) days after written notice shall have
been received by Autotote specifying such default, then Owner may terminate this
Agreement by delivering to Autotote written notice of such termination; and in
the event of any such termination Autotote, at its expense, shall remove its
personnel, materials and equipment from the Facility.

         (b) In the event that Owner shall default in the performance of any
provisions of this Agreement on its part to be performed (except a breach by
Owner of the provisions of Section 3 of Exhibit G hereof as to which the
provisions of said paragraphs shall apply) and such default shall not be cured
within a period of twenty (20) days after notice shall have been given by
Autotote to Owner specifying such default, then Autotote may terminate this
Agreement by delivering to Owner written notice of such termination; and in the
event of any such termination Autotote shall remove its personnel, materials and
equipment from the Facility, and the cost of such removal shall be paid for by
Owner.

         (c) If any of the said sums of money due Autotote under this Agreement
are not promptly and fully paid when the same individually or severally become
due and payable and after written notice from Autotote and the expiration of
Owner's twenty (20) day period, or if (except if Owner continues to pay under
the terms of this Agreement) Owner becomes insolvent, ceases to do business as a
going concern, a petition in bankruptcy or for arrangement or reorganization be
filed by or against Owner, the materials or equipment provided by Autotote be
attached at no fault of Autotote, or a receiver be appointed for Owner, and as a
result thereof Autotote elects to terminate this Agreement pursuant to Section
13 (b) then the aggregate sum of the minimum annual amount specified in Section
3 of Exhibit F remaining to be paid for the first two (2) years of the term of
this Agreement up to a maximum of Two Hundred Thousand dollars ($200,000) as
liquidated damages, shall become due and payable forthwith, or thereafter at the
option of Autotote, as fully and completely as if the said amounts were
originally stipulated as due prior to such time, anything in this Agreement
herein to the contrary notwithstanding. The sum of Two Hundred Thousand dollars
($200,000) in liquidated damages as aforementioned shall be reduced by $8,333.33
for each month, up to a total of twenty four (24) months, Owner has conducted
racing and used the System. In any of said events Autotote is authorized and
empowered to enter the premises of Owner or other place where Autotote's
materials and equipment may be and resume possession of the same without notice
or demand or without legal process, such notice and demand being expressly
waived, and Autotote may at its option, by suit or otherwise, enforce payment of
all due obligations, plus interest and reasonable attorney's fees, and no suit
or legal proceedings with respect thereto shall be deemed any waiver of said
rights of Autotote to exercise possession of said property as herein provided.

            (d) Notwithstanding anything to the contrary contained in this
Agreement, if the Totalisator System (i) does not function so as to comply with
provisions of the Texas Racing Act and rules and regulations of the Texas Racing
Commission, or (ii) does not provide the services and functions required for
satisfactory operations for a Class "1" racing facility, then in such event
Owner may terminate this Agreement within twenty (20) days after written notice
is delivered to Autotote and Autotote has failed to cure such default. However,
once notice has been given as to a particular default under this paragraph, no
notice will be required for a similar default in the future, and Owner will be
entitled to terminate without further notice. In the event of termination,
Autotote, at its expense, shall remove its personnel, materials and equipment
from the Facility. Notwithstanding the above, no termination shall occur
hereunder unless Autotote shall have been given twenty (20) days to effect a
cure as provided for in section 13 (a).

         SECTION 14     ARBITRATION AND REMEDIES.

         (a) Any controversy or claim not settled by the parties arising out of
or relating to this contract, or the breach thereof, shall be settled by
arbitration in accordance with the Rules of the American Arbitration
Association, and judgment upon the award rendered by the Arbitration(s) may be
entered in any Court having jurisdiction there.

         (b) The remedies expressly provided in this Agreement for breach
thereof by Autotote or Owner shall constitute the sole and exclusive remedies to
the aggrieved party, and all other remedies which might be otherwise available
under the law of any jurisdiction are hereby waived by both Autotote and Owner.

         SECTION 15     RESPONSIBILITIES. All persons employed by each party and
assigned to perform work specified by this Agreement shall be employees or
representatives of such party at all times and not of the other party, and shall
be under the supervision and control of their respective company. Each party
shall obey and abide by all social security, workman's compensation, and
unemployment laws which shall be applicable to the persons performing the work
hereunder.

         SECTION 16     ENTIRE AGREEMENT. This Agreement, including the Exhibits
annexed hereto, contains the entire agreement between Autotote and Owner, and no
prior written or oral representations, inducements, agreements, promises or
understandings altering, modifying, taking from or adding to its terms and
conditions shall have any force or effect; and no waiver or modification hereof
shall be effective unless the same is in writing and validly executed by the
party to be charged Each of the parties hereby confirms that it is not placing
any reliance on any convenant, representation or warranty of the other party,
whether oral or in writing, express or implied, except those herein set forth.

         SECTION 17     WAIVER. The Waiver by either party of any right
hereunder shall not be deemed a waiver of any other right hereunder.

         SECTION 18     ASSIGNMENT. Neither party shall, without the prior
written consent of the other party (which consent shall not be unreasonably
withheld) assign this Agreement or delegate its duties hereunder in whole or
part; provided, however, Owner agrees to any assignment Autotote may make for
the purpose of obtaining financing with a prime institution on the strength of
this Agreement, and Autotote hereby agrees that Owner, without negating its
liability, may assign to any entity or person who shall acquire or succed to
ownership of the license granted to Owner by the Texas Racing Commission to own
and operate the Facility, including any non-profit entity into which Owner may
merge. All of the terms and conditions of this Agreement shall be binding upon
and inure to the benefit of any transferee, successor or permitted assign of
either party hereto.

         SECTION 19     NOTICE. All notices to be given to Autotote shall be
sent through the United Postal Service by Registered or Certified mail, return
receipt requested, to Autotote at 100 Bellevue Rd., P.O. Box 6009, Newark,
Delaware 19714 or to such address as Autotote shall specify in writing to Owner.
All notices to be given to Owner shall be sent through the United States Postal
Service or Certified mail, return receipt requested, to Owner at Sam Houston
Race Park, Ltd., 5847 San Felipe, Suite 2600, Houston, Texas 77057, with a copy
to P.O. Box 2323, Houston, Texas 77252-2323, attention Robet L. Bork, Senior
Vice President and General Manager, or to such other address as Owner shall
specify in writing to Autotote.

         SECTION 20     REMOVAL OF EQUIPMENT. Upon termination of this Agreement
as hereinbefore provided, or upon expiration hereof, Autotote, at its own
expense, may remove from the premises of Owner, the System and appurtenant
portable and permanent equipment and materials furnished by Autotote.

         SECTION 21     GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of System installation.

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

SAM HOUSTON RACE PARK, LTD.                          AUTOTOTE SYSTEMS, INC.
("OWNER")                                            ("AUTOTOTE")

BY:      /S/ ROBERT L. BORK                 BY:   /S/ BROOKS PIERCE
     ROBERT L. BORK, SENIOR VP AND GM         BROOKS PIERCE, PRESIDENT, ASI

                                    EXHIBIT A
                                 OWNER ACTIVITY
                      AUTOTOTE SERVICE HOURS AND PERSONNEL

Activity of Owner:         Pari-Mutuel Wagering

Services shall commence no sooner than (1) hour prior to scheduled post time for
the first race, live and or simulcasting and shall be exclusively limited
(unless otherwise agreed) to a maximum of eighteen (18) hours per day, seven
days a week (such betting period being defined as "Performance").

                                    EXHIBIT B
                                    SYSTEM(S)

         The System shall calculate odds, wagers and pay-offs of wagers at the
Facility and the display of such information. Autotote shall be under no
obligation to furnish equipment or services in excess of the quantities
specified in this Agreement, unless and until an agreement in writing is
executed by the parties providing for such additional equipment.

         The System shall consist of:

Autotrak II Sell/Cash Totalisator System consisting of:

         Digital VAX Computers
         Disk Units
         Mag Tape Units
         High Speed Line Printers
         Board Control Units
         Color Video Channels
         Consoles
         Logging Printers
         Tote Control Desk
         Communication Controller for Terminals
         Up to 130 Smart Probe Sell/Cash Terminals, 25 Sams in a Can and
             75 SAM head modules (with requisite smart or dumb Probe
             Terminals) (with Brander and Bet Slip Reader in all terminals)
         Lampboxes and associated equipment required for present infoeld display
             board for the live racing season only (including auxiliary
             odds boards)
         Magnetic Tape Storage Cabinet w/set of Magnetic Tapes to store History
             of Performances for One Full Season, or other time period required
             by the Texas Racing Commission
         Autotrak II Sell/Cash software
         Uninterrupted Power Supply (UPS) unit for Computer Room
         Motorola Beeper System with Beepers
         50 VDC 100 Amp Motor Generators

         *Live racing season only

AUTOTOTE RESERVES THE RIGHT TO SUBSTITUTE EQUIVALENT FUNCTION COMPONENTS IN
PLACE OF ANY OF THE ABOVE ITEMS.

                The System shall have the following minimum capabilities:

         1. The central totalisator system shall accurately total the amounts
wagered in all pools in Autotote's standard U.S. on-track/ITW/OTB pari-mutuel
wagering program. It shall provide a record of all such totals and be capable of
transmitting to the appropriate display board at regular intervals the data
presently prescribed for display on such board. The system shall be capable of
performing the following functions:

         A) Accepting wagers on a maximum of sixteen (16) runners per
         live/simulcast race in each of the pools referred to in paragraph 1
         above and posting said numbers, results and prices to the fieldboard.

         B) Accepting wagers in any integral multiple of $1 to a maximum of
         $1,000.

         C) Accepting and storing wagers on each race and pool held or operated
         at the site from the time of opening of pari-mutuel wagering at the
         site on the day such race or pool is held or operated, and ending at
         the time of closing of pari-mutuel wagering for such race or pool.
         Also, accepting and storing wagers for any one future race or
         performance on specified pools up until the time of closing of wagering
         for such future race or performance.

         D) Providing those reports listed in Exhibit B-1 attached hereto.

         E) Providing for an accounting of outstanding live tickets as an
         integral part of the system during the racing season in which such
         outstanding tickets were purchased. At the conclusion of such racing
         season, Autotote shall deliver to Owner such listing of outstanding
         tickets listing serial number, date of purchases, bet details and value
         of each such ticket.

         F) Canceling any ticket prior to the close of wagering of the race for
         which the ticket was purchased, and reducing the appropriate pool or
         pools by the amount(s) so wagered.

         G) Provide for the display of live wagering information on the
         fieldboard.

         H) Making available up to six (6) channels of color video output to
         racetrack closed-circuit TV supplier for use over such network.

         I) Provide update information for the following video display units:

                  (1) Executive Information Console - The Executive Information
                  Console is an additional control console provided to allow a
                  racetrack's management the ability to obtain the most current
                  information and statistics about the currently running
                  performance. This console can be used to report a variety of
                  types of information, such as total money wagered during the
                  performance or betting totals of a specified race, that may be
                  relevant to the racetrack management.

2.       TERMINALS

         A) Each terminal shall be capable of:

                  (1) Printing and issuing standard length tickets for all pools
                  and denominations as described in paragraph 1.a.

                  (2) Reading, transmitting to and receiving from the central
                  totalisator data for betting slips and cashing winning tickets
                  and branding on such winning tickets their total value and an
                  integral portion of their unique serial number.

                  (3) Accommodating up to four compound wagers on each standard
                  length ticket issued.

                  (4) Providing status indicators and error messages to terminal
                  operators.

                  (5) Providing special terminal functions to the terminal
                  operators which allow them to report to the system draws or
                  returns of cash and final cash balance at end of performance,
                  inquire of the system current cash position and convert their
                  terminal to calculator mode.

                                  EXHIBIT "B-1"
                              LINE PRINTER REPORTS

The following reports are provided:

         CYCLIC REPORTS (Totals, Odds, Probable Pays)
         REFUNDS REPORT
         RESULTS AND DIVIDENDS REPORTS
         PRICE CALCULATION REPORTS
         WILL-PAYS REPORTS
         TELLER BANK BALANCE REPORT
         FINAL TELLER BALANCE REPORTS (with Overs and Shorts)
         WINDOW BALANCE REPORTS
         WINDOW ALLOCATION REPORTS
         PERFORMANCE POOL TOTALS REPORT
         PERFORMANCE SALES SUMMARY REPORT
         SALES SUMMARY REPORTS (by Pool)
         IRS REPORT
         CASHED TICKETS REPORT
         UNCASHED TICKETS REPORT
         CASHING SUMMARY REPORTS (All Cashing Activity)
         PERFORMANCE PARAMETERS REPORT
         BETTING ACTIVITY BREAKDOWN BY BET TYPE AND TICKET COUNT
         WINDOW TRANSACTION REPORTS
         HISTORY REPORTS

         Supplied if Applicable:

         ADVANCE POOL TOTALS REPORTS
         PURGED TICKETS REPORT (Overage unpaid winners)
         FUTURE DAY POOLS REPORT
         FUTURE DAY BETTING SUMMARY REPORT

Teller Histories will be supplied on request for up to an average of three (3)
tellers per performance. Charges will be billed for Autotote's labor for all
Teller Histories in excess of that amount.

                                    EXHIBIT C
                        AUTOTOTE MAINTENANCE OBLIGATIONS

(A) EXCEPT AS HEREIN PROVIDED, AUTOTOTE SHALL BE UNDER NO OBLIGATION TO FURNISH
SERVICES TO OWNER IN EXCESS OF THOSE SPECIFIED HEREIN, NOR SHALL OWNER BE
ENTITLED TO ADDITIONAL SERVICES UNLESS A SUPPLEMENTARY AGREEMENT IS ENTERED INTO
BETWEEN AUTOTOTE AND OWNER, PROVIDING FOR THE DESIRED ADDITIONS, UPON TERMS
ACCEPTABLE TO AUTOTOTE AND OWNER.

(b) Maintaining in an efficient operating condition during the term of this
Agreement, all frames, switches, accessories, wires, interconnecting cables and
other portable equipment necessary for the operation of the System which are
supplied by Autotote (provided, that failure of any one or more of these items
shall not be construed as a failure of the System, nor shall Autotote have any
liability because of such failure except as provided in item 2 of Exhibit G).

(c) Should additions to the services be necessary after the initial permanent
installation of the System Autotote shall furnish all necessary DC and signal
installation materials and equipment required for the electrical installation of
the "Tote" room, the selling lines and in the public display board, the cost of
such materials shall be borne by Owner at competitive prices in effect at the
time of delivery.

(d) To provide, at Autotote's expense, the necessary high speed printer paper
and logging teleprinter paper as may be required for use with the System.
Betting slips and other stationary supplies as may be required for use with
totalisator system shall be for Owner's account at the competitive prices in
effect at the time of delivery.

(e) To notify Owner of new or improved services perfected by Autotote and to
implement changes in the services provided hereunder to reflect such of the new
or improved services as Owner may desire, provided that Owner shall pay for all
such modifications and changes provided by Autotote at the cost no greater than
that offered Autotote's largest customers, in addition to the sums payable under
Exhibit F.

(f) To furnish and maintain on each wagering day, at its expense, the personnel
necessary for Autotote to perform the Services, including operating the central
controls and maintaining the System in efficient operating condition, as
described in Exhibit A and A-1.

(g) To maintain adequate fire insurance, theft, vandalism and riot insurance
coverage on the System and on all ancillary materials and equipment which are
required by Autotote in order to perform the services, which are the property of
Autotote.

(h) To carry workers Compensation insurance on its own employees. To carry
public liability insurance in an amount of $10,000,000 coverage on its own
equipment and the System and name Owner as additional insured. Autotote will
Owner with a certificate of insurance inentifying Owner as a named insured.

(i) To furnish all necessary ticket paper for the Sell/Cash terminals.

                                    EXHIBIT D
                             OWNER RESPONSIBILITIES

(a) Owner, in accordance with instructions furnished by Autotote, shall provide:

(i) The security needed to ensure the physical safety of the System against
injury from any cause whatsoever, excluding Force Majeure events, (including,
but not limited to, trespass, damage, interference by other persons or
cannibalism).

(ii) Adequate electrical power for the proper operation of the System. For this
purpose incoming power lines having sufficient capacity shall be brought from
the local utility to the "Tote" room and the selling lines, and the display
board, and distributed and terminated at locations as specified by Autotote.

(iii) A "Tote" room of sufficient size to house and permit the maintenance of
the central control equipment in a secure manner with an efficient layout, free
from dampness and reasonably free from dust, with necessary air conditioning,
suitable lighting and with adequate entrances capable of being secured so to
limit access to such control room.

(iv) Teller windows having ticket counters of sufficient size and structural
strength to accommodate Autotote's ticket issuing machines in areas reasonably
free from dust and dirt.

(v) A fieldboard structure sufficiently secure and with adequate ventilation,
interior lighting and AC electric power to permit the accomodation and
satisfactory operation of fieldboard display equipment.

(vi) Adequate and appropriate facilities, under the exclusive control of and
reasonably satisfactory to Autotote for proper maintenance of its materials and
equipment and for the safe and secure storage of ticket paper and other
supplies.

(vii) Adequate and appropriate rest rooms, convenient free parking, and other
facilities for Autotote's personnel on a par with facilities provided for other
similar level personnel employed by Owner at the Facility.

(b) After the initial permanent System installation, Owner will furnish, at its
expense, all necessary labor required for requested additions to the
installation of the System agreed to by Owner, which labor includes the laying,
pulling, connecting and terminating of all necessary cables, terminals,
switches, junction boxes, and other similar material, as required in the "Tote"
room, display boards, ticket selling lines, judges and/or stewards locations,
mutuel manager and head banker locations, which services shall be performed in
accordance with Autotote's specifications, provided if the changes are required
because the System is not performing to the standards provided in this
Agreement, Autotote shall pay thise costs.

(c) Owner shall accept shipment of, store, and care for at its risk, sufficient
terminal printer ribbons and Ticket materials furnished by Autotote for one
Season. Owner agrees to pay for any special Ticket paper that it requests
Autotote to provide, and shall accept the same in Autotote's then current
minimum quantities and at Autotote's then current prices.

(d) Owner shall ensure that its employees who are engaged in the cashing of
tickets conform to the procedures prescribed by Autotote and to exercise
reasonable care in the examination and determination of the genuineness of
tickets presented for cashing.

(e) Owner shall notify Autotote in writing of the racing days allotted to it by
the appropriate governmental authority each year during the term of this
Agreement at least sixty (60) days prior to the start of such racing days and
will not change without good cause such dates including the number of
performances, including matinees (two (2) performances on one (1) day) if
applicable, and the beginning and closing dates of any performances. Autotote
shall have the right to remove any of its personnel, materials and equipment at
any time during the term of this Agreement when wagering is not scheduled at the
Facility and is not expected to resume for more than twenty one (21) days, but
no removal shall in any way effect Autotote's obligation, subject to sixty (60)
days written notice except as provided herein, to return the necessary materials
and equipment and reinstitute the Services for operation on all wagering days at
the facility, provided such wagering days fall within the beginning and closing
dates of any performances as previously notified and herein specified. If during
any scheduled racing period wagering does not, for any reason other than a
default by Autotote, commence as scheduled, or having commenced, is interrupted
and is expected to continue for more than twenty one (21) days, Autotote shall
have the right to remove its personnel, materials and equipment from the
Facility. In such case Autotote shall be obligated to reinstate the Services at
the Facility so as to not delay the comencement of wagering after receipt by
Autotote of written notice that wagering is to commence or resume and the
original closing date of the performances may at Owner's option, be extended by
the number of performances that wagering did not take place in accordance with
the original schedule.

(f) Owner shall cooperate in every way with Autotote in the installation and
operation of the System and to make available to Autotote such facilities as may
be required to perform the necessary System testing operations, provided that
the same not intercede with normal operations.

(g) Owner shall render such investigative assistance to Autotote as Autotote may
request in connection with discovering the source of counterfeit Tickets.

(h) Owner shall make, at its own expense, such additions or alterations to its
own premises as may be necessary for the installation and operation of the
System and reasonable agreed to by Owner. If the proposed modification is not
made, Autotote shall not be liable to Owner for any damages as a result of the
failure to make such modification. Owner shall pay all costs of any alterations
in or additions to the Facility or the permanent equipment (other than equipment
to be furnished by Autotote) installed at, or renovations to, the Facility that
are reasonably required in order to permit the installation of the System, and
for any necessary replacement of cables therefore purchased, or required to be
furnished pursuant to this Agreement, unless replacement is necessitated by the
negligence or misconduct of Autotote, by Owner. Owner shall provide Autotote
with written notice of the desired alterations, additions or replacements not
less than ninety (90) days prior to the date said alterations, additions or
replacements are to be completed. Such alternations, additions or replacements
shall not exceed the capacity of the System. In carrying out its undertaking
hereunder, Owner may be required to provide new structures or housing for the
materials and equipment utilized by Autotote in performing the Services
hereunder, or to alter its existing structures or housing for such purpose. In
such event, it will furnish at its expense, all materials and labor required for
such structures or housing in accordance with specifications supplied by
Autotote, including opening and closing walls, floors or ceilings, clean-up and
disposition of refuse, and repair of any damage to buildings, grounds, track,
plantings, etc. caused by installation, provided such damage was not caused by
negligence of Autotote.

(i) During the term of this Agreement, Owner, at its own cost and expense, shall
procure and keep in force all permits and licenses required by law that are
necessary in order to permit it to conduct licensed events at the Facility and
to discharge its obligations under this Agreement and shall comply with all
applicable laws and regulations.

(j) Owner will keep proper records and books of accounts and make true and
complete entries therein of all appropriate information relating to the
operation of wagering at the Facility.

(k) Owner will pay the cost of any alterations in or additions to the Services,
including programming changes, as may hereafter be desired by Owner, and such
alterations, if practicable, will be made by Autotote promptly after receipt
from Owner of its written request therefor and at a cost no greater than that
offered Autotote's largest customers.

(l) Owner will furnish, at its own expense, an adequate staff of paper changers,
tellers, mutuel personnel and any other personnel as are required in connection
with the operation of the wagering at the Facility, except for the personnel to
be furnished by Autotote. Owner's paper changers, tellers, mutuel personnel and
any other personnel will operate the terminals strictly in accordance with
Autotote's instructions, will account as required to Autotote's Manager at the
Facility for all rolls of ticket paper and will not otherwise attempt to handle
or operate the System.

(m) Owner will afford Autotote and its duly authorized agents or representatives
access at all reasonable times to the buildings and premises at the Facility and
will permit Autotote and such agents or representatives to inspect during each
wagering day and at all other reasonable times the record sheets, books of
account and other relevant information kept by Owner with respect to the
operation of wagering at the Facility and will furnish Autotote with duplicate
copies of all sheets required by it to verify the operation of the wagering,
including the mutuel's recapitulation sheets, ticket summary sheets and any
other pertinent records, which shall be kept confidential by Autotote.

(n) Owner will not use the System for any purpose other than as specified in
this Agreement and will not permit any part of the System to be removed from the
Facility by persons other than agents or employees of Autotote.

(o) Owner will, at its expense, furnish electricians to maintain and service the
electric power facilities required to be furnished by Owner as provided in
subsection (a)(ii).

(p) Owner will take, at its expense, all necessary measures to keep the System
materials and equipment kept by Autotote at the Facility free from any
restraint, levy, execution or seizure or other process of law arising from any
acts or omissions of Owner or its agents(s) or representative(s) which would in
any way impair the title of Autotote to such System, materials and equipment or
possession or repossession thereof when permitted under this Agreement. At
Autotote's request, it will provide Autotote with a waiver of landlord's lien.

(q) Owner will comply with all rules, laws, ordinances and lawful requirements
of every government, county, state or municipality, department, bureau or board
which may arise out of or in connection with the possession, use and/or
operation of wagering at the Facility including fire insurance underwriters'
requirements. Owner shall also furnish, at its expense, the safety devices
needed to comply with such requirements.

(r) Owner will maintain and furnish to Autotote a list of persons authorized to
have access to any room or structure housing any part of the System, which list
shall specify the particular position to which each such person is assigned and
the place or location of employment, the persons to which each such person is
assigned and the place or location of employment, the persons on such list being
subject to the approval of Autotote, which approval shall not be unreasonably
withheld. It will not permit access to the "Tote" room by any unauthorized
persons and Autotote shall cooperate. Owner and Autotote each agrees to
indemnify the other for damages or loss to Autotote caused as a result of access
to the secured areas having been given by Owner or its employees or agents ;or
Autotote or its employees or agents

(s) Owner agrees to assist Autotote in establishing a System hub at Sam Houston
Race Park and to cooperate and provide assistance to tracks and OTBs remotely
connected to the hub, including but not limited to, sharing comunications costs,
providing the downloading of simulcast and live program information, training
personnel and providing access to host racetracks through Sam Houston Race Park
simulcast contracts.

(t) Owner releases Autotote from any obligation to purchase box seats at Sam
Houston Race Park.

(u) Owner agrees to release fifteen (15) smart Probes from the amounts committed
to by Autotote on Exhibit B. Autotote agrees to resupply said terminals to Owner
for use on Kentucky Derby Day, Breeder's Cup Day, the Fourth of July, the Texas
Day of Champions, Connally Cup Day and Mystery Voucher Day. The parties agree to
review terminal inventory annually to adjust said invetory as attendance and
wagering levels warrant.

                                    EXHIBIT E
                                  INSTALLATION

                            INTENTIONALLY LEFT BLANK

                                    EXHIBIT F
                                 PRICE STRUCTURE

1.  Owner agrees to pay

         (a)  .0045 of all gross monies wagered annually;

         (b)  .0400 of all gross monies above $100 million wagered annually;

         (c)  In the event the annual handle is less than $100 million in any
         year during the term of this Agreement, Owner will pay to Autotote a
         fee of .0050 of all gross monies wagered in the following year. If
         during this following year the gross monies wagered is less than $100
         million, Owner will pay to Autotote a fee of .0050 of all gross
         monies wagered in the following year and for every successive year
         during the term of this Agreement during which the previous year the
         gross monies wagered is less than $100 million. If in such successive
         year the gross monies wagered exceeds $10 million, the fee will
         return to that described in (a) and (b) above for the year following.

         (d) Fifteen dollars ($15) per week for each SAM head module or Sam in
         a Can with a minimum of 100 such terminals or greater amount as
         requested by Owner. Each additional SAM head or Sam in a Can will
         also be fifteen dollars ($15) per week.

2. Autotote will provide Intertrack-Wagering ("ITW"), Direct Track Interface
("DTI") and interface services to Owner as further described in Exhibit F-1.

3. All amounts due shall be payable weekly without deduction not later than
Friday of the following week. If all amounts are not paid within fourteen (14)
days after the due date, interest at the rate of one and one half percent (1
1/2%) per month or to the extent allowed by law if less, starting from the day
immediately following the due date shall be imposed on such amounts. Said
default interest rate shall apply with respect to all amounts due under the
Agreement.

4. Autotote agrees that if any other Autotote customer within the State of Texas
obtains an agreement for a Totalisator System that is more favorable in either
price or conditions than is provided Owner under this Agreement, Autotote will
amend this Agreement to meet the best of those prices or conditions effective
immediately.

                                   EXHIBIT F-1
                                  DTI SERVICES

A.       Inter-track Wagering (ITW) For Racing at Facility (Host Racetrack).
         Autotote will provide ITW services to Owner for ITW common pool
         pari-mutuel wagering on races conducted at Owner's Facility. For this
         ITW service Autotote is to be paid .00125 of all monies accepted in
         Autotote's Totalisator system through DTI from out of state guest or
         other in state guest racetracks, such amount to be invoiced to and paid
         by guest racetracks (except any other track sharing the hub with
         Owner). In no manner is Sam Houston to be liable for said fees
         described in this section.

B.       Direct Track Interface (DTI) From Owner's Racetrack (Guest Racetrack)
         For Pari-mutuel Wagering on Racing at Remote Racetracks.
         Autotote shall provide totalisator services utilizing its computer
         programs, equipment and personnel for pari-mutuel wagering conducted at
         Owner's racetrack on races conducted at remote racetracks. For this
         service Owner agrees to pay to Autotote .00125 of all monies wagered at
         Sam Houston Race Park on other Autotote remote racetracks, except any
         other track sharing the hub with Owner. This fee (.00125) is in
         addition to the handle rate described in Exhibit F.

                                   EXHIBIT F-2
            LIST OF INITIAL PERMANENT INSTALLATION EQUIPMENT PROVIDED
                BY AUTOTOTE FOR INITIAL TOTALISATOR INSTALLATION

                            INTENTIONALLY LEFT BLANK

                                    EXHIBIT G
                               CERTAIN LIABILITIES

1. Autotote shall reimburse Owner for all amounts which Owner shall be required
to disburse by reasons of errors made by Autotote or its employees or its
equipment other than as provided for in Section 7(a) of the Agreement and
Section 2 of Exhibit G, provided however that in arriving at the amount, if any,
to be reimbursed, Autotote shall receive credit for all like overages and,
provided further that Autotote shall not be required to make a reimbursement if
any error is due to the gross negligence or wilfull misconduct of Owner or any
of its employees, the State or any of its employees, or acts of other parties
for whom Autotote is not responsible and provided further that Autotote shall
not be required to reimburse Owner for any errors regardless of cause in pools
in which winning tickets in a prior division of the pool are exchanged for
tickets in a subsequent division of that pool. . The limitation of liability
contained in Section 2 hereof, applies to this section.

2. If the failure of the System to operate efficiently or without interruption
shall be due to any acts other than those enumerated or referred to by reference
in Section 7 of the Agreement, or other than as a result of the failure of Owner
to perform its obligations hereunder, then Owner shall be entitled to liquidated
damages in an amount to be calculated as follows: five percent (5%) of the
difference between the amount of money handled on the day of such interruption
and the amount of money handled on a comparable day during the current race
meeting; in the event there is no comparable day in the current race meeting,
then the amount to be paid by Autotote to Owner shall be five percent (5%) of
the difference between the amount of money handled on a comparable race day of
the season immediately preceding. In no event shall Autotote be obligated to pay
to Owner a sum exceeding:

     (i)  One Hundred Thousand dollars ($100,000) in respect of any
     live/simulcasting racing day or

     (ii) Five Hundred Thousand dollars ($500,000) in respect of any year during
     the term of this Agreement.

If Owner enforces a claim for damages it will be entitled to receive interest
from fourteen (14) days after the due date at two percent (2%) per month or the
highest lawful rate of interest, whichever is the lower amount and reasonable
attorney fees.

3. If at any time during the term of this Agreement, any kind of a tax, license,
duty, commission or fee shall be imposed upon or levied or assessed against
Autotote by any governmental or other authority, or on the installation, use or
the Services provided under this Agreement, or the receipt of monies hereunder,
Owner agrees to pay to Autotote an amount equivalent thereto, together with any
penalties or interest assessed thereon, such payment to be made by Owner as and
when such tax or fee is assessed. If Owner fails to pay any such amounts as
aforesaid, then Owner shall be charged interest at the rate of one and one half
percent (1 1/2%) per month or to the extent allowed by law if less, starting
from the day after the due date, and Autotote may, by fourteen (14) days prior
written notice to Owner, terminate this Agreement and be relieved and discharged
from any and all further responsibility, liability, or obligations hereunder. In
the event Autotote terminates the Agreement as provided herein, Owner shall
remain liable as aforesaid for payment of such tax or fee, and any penalty or
interest accrued thereon, or if Autotote fails to contest the validity of any
such tax or fee after written demand by Owner, Owner, at its expense, may
contest the validity thereof in the name of Autotote. Nothing herein contained
shall make Owner responsible for federal, state or municipal income taxes of
Autotote by reason of the receipt of payments hereunder, franchise fees or state
and local property taxes applicable to Autotote equipment at Owner's Facility.
If, by reason of its use of the Services provided by Autotote under this
Agreement, Owner is assessed or has imposed or levied upon it any tax or fee by
any governmental authority, Owner agrees to pay such taxes or fees directly to
the appropriate taxing authority and also agree to provide to Autotote, from
time to time as required by Autotote, documentation as proof that such taxes or
fees have been paid.

4. Autotote shall not be liable either directly, indirectly or consequentially
for any counterfeit, altered, or illegally printed tickets, unless Autotote or
its agents are negligent in accepting same. Autotote shall be liable, however,
for all amounts as branded by the Sell/Cash Terminals on any counterfeit,
altered, or illegally printed tickets on which the branded serial number digits
are identical to those of such tickets. However, Autotote shall not be liable
for such counterfeit, altered, or illegally printed tickets arising out of
wilfull misconduct or negligence by Owner or its employees or agents, or by
wilfull misconduct or negligent failure of Owner to provide proper security.

                           AUTOTOTE SERVICES AGREEMENT
                                      INDEX

SECTION

1 - Furnishing of System(s) and Service(s)
2 - Owner Responsibilities
3 - Installation
4 - Price(s) and Payment
5 - Term
6 - Special Termination
7 - Warranty
8 - Patent Infringement
9 - Force Majeure
10 - Ownership Right and Confidential Information
11 - Limitation of Liability
12 - Indemnity
13 - Default
14 - Arbitration and Remedies
15 - Responsibilities
16 - Entire Agreement
17 - Waiver
18 - Assignment
19 - Notice
20 - Removal of Equipment
21 - Governing Law

EXHIBITS

A- Owner Activity                                                     EX-1
B - System(s)                                                         EX-2
         B-1 - Line Printer Reports                                   EX-5
C - Autotote Maintenance Obligation s                                 EX-6
D - Owner Responsibilities                                            EX-7
E - Installation                                                      EX-12
F - Price Structure                                                   EX-13
         F -1 - ITW and DTI Services                                  EX-14
         F -2 -Permanent Installation Materials Provided by Autotote  EX-15
G - Certain Liabilities                                               EX-16STOCK PURCHASE AGREEMENT

                                     BETWEEN

                           LADBROKE RACING CORPORATION
                                   ("SELLER")

                                       AND

                           SAM HOUSTON RACE PARK, LTD.
                                  ("PURCHASER")

                                      DATED

                                 JANUARY 6, 2000

                                TABLE OF CONTENTS

ARTICLE I. TRANSFER OF THE SHARES AND PURCHASE PRICE
         1.1      PURCHASE AND SALE OF THE SHARES
         1.2      DELIVERY OF CERTIFICATES
         1.3      EARNEST MONEY

ARTICLE II.  THE CLOSING

ARTICLE III.  REPRESENTATIONS AND WARRANTIES OF SELLER
         3.1      ORGANIZATION
         3.2      NECESSARY ACTIONS; BINDING EFFECT
         3.3      NO CONFLICTS
         3.4      CONSENTS AND APPROVALS
         3.5      CAPITALIZATION
         3.6      TITLE TO THE SHARES
         3.7      FINANCIAL STATEMENTS
         3.8      ABSENCE OF UNDISCLOSED LIABILITIES
         3.9      ABSENCE OF CERTAIN CHANGES
         3.10     TAXES
         3.11     TITLE TO REAL PROPERTY
         3.12     TITLE TO PERSONAL PROPERTY
         3.13     REPRESENTATIONS REGARDING THE PROPERTY AND PERSONAL PROPERTY
         3.14     ADDITIONAL AGREEMENTS
         3.15     SCHEDULES
         3.16     LITIGATION
         3.17     ENFORCEABILITY OF AGREEMENT
         3.18     NO DEFAULTS
         3.19     LIABILITIES
         3.20     INSURANCE
         3.21     CORPORATE RECORDS
         3.22     ACCURACY OF REPRESENTATIONS, WARRANTIES AND COVENANTS
         3.23     LEGAL COMPLIANCE
         3.24     KNOWLEDGE
         3.25     MATERIALITY

ARTICLE IV.  REPRESENTATIONS AND WARRANTIES OF PURCHASER
         4.1      ORGANIZATION AND GOOD STANDING
         4.2      NECESSARY ACTIONS; BINDING EFFECT
         4.3      CERTAIN PROCEEDINGS
         4.4      NO CONFLICTS
         4.5      DISCLOSURE
         4.6      CONSENTS AND APPROVALS
         4.7      INVESTMENT INTENT
         4.8      KNOWLEDGE

ARTICLE V.  TAX MATTERS
         5.1      SECTION 338(H)(10)

ARTICLE VI.  COVENANTS OF PURCHASER AND SELLER
         6.1      SELLER'S COVENANTS
         6.2      PURCHASER'S COVENANTS

ARTICLE VII.  CONDITIONS TO OBLIGATIONS OF PURCHASER
         7.1      REPRESENTATIONS AND WARRANTIES TRUE AND CORRECT
         7.2      OPINION OF SELLER AND THE COMPANY
         7.3      ABSTRACTOR'S CERTIFICATE
         7.4      ENVIRONMENTAL AGREEMENT
         7.5      COMMISSION APPROVAL
         7.6      DELIVERY OF PROPERTY

ARTICLE VIII.  CONDITIONS TO OBLIGATIONS OF SELLER
         8.1      REPRESENTATIONS AND WARRANTIES TRUE AND CORRECT
         8.2      DELIVERY OF PURCHASE PRICE FOR THE SHARES
         8.3      DISMISSAL OF SUIT
         8.4      ENVIRONMENTAL AGREEMENT
         8.5      LICENSING FEE
         8.6      COMPANY NAME

ARTICLE IX.  APPROVAL

ARTICLE X.  TERMINATION AND ABANDONMENT
         10.1     METHODS OF TERMINATION
         10.2     PROCEDURE UPON TERMINATION

ARTICLE XI.  MISCELLANEOUS
         11.1     NOTICES
         11.2     EXPENSES AND FINDERS FEE
         11.3     INDEMNIFICATION OF PURCHASER
         11.4     INDEMNIFICATION OF SELLER
         11.5     DEFENSE OF CLAIMS; NOTICE
         11.6     EXPIRATION OF INDEMNIFICATION
         11.7     EXCLUSIVE REMEDY
         11.8     BUSINESS PRACTICES
         11.9     CONFIDENTIALITY
         11.10    ENTIRE AGREEMENT
         11.11    PARTIES BOUND
         11.12    GOVERNING LAW
         11.13    SEVERABILITY
         11.14    MULTIPLE COUNTERPARTS
         11.15    FURTHER ASSURANCES
         11.16    ATTORNEYS' FEES
         11.17    GENDER AND NUMBER
         11.18    CAPTIONS
         11.19    WAIVER
         11.20    AMENDMENT
         11.21    EFFECTIVE DATE

                            STOCK PURCHASE AGREEMENT

         This Stock Purchase Agreement (the "Agreement") is made and entered
into this 6th day of January 2000, between LADBROKE RACING CORPORATION, a
Delaware corporation ("Seller"), and SAM HOUSTON RACE PARK, LTD., a Texas
limited partnership ("Purchaser"). Seller and Purchaser are sometimes herein
referred to individually as "Party" or collectively as "Parties."

         Seller owns, in the aggregate, One Thousand (1,000) shares of the
common stock of Ladbroke Racing Texas Corporation, a Texas corporation (the
"Company"), consisting of all of the issued and outstanding shares of capital
stock of the Company (the "Shares") and desires to sell to Purchaser, and
Purchaser desires to purchase from Seller the Shares on the terms and conditions
in this Agreement.

         THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Seller and Purchaser hereby covenant and agree as
follows:

              ARTICLE I. TRANSFER OF THE SHARES AND PURCHASE PRICE

         I.1 PURCHASE AND SALE OF THE SHARES. On the terms and subject to the
conditions in this Agreement, and based upon the representations, warranties and
agreements contained in this Agreement, Seller agrees to sell, transfer and
assign the Shares to Purchaser or its designee and Purchaser or its designee
agrees to purchase the Shares from Seller in exchange for a total purchase price
of TWO MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS ($2,350,000.00) payable in
cash at the Closing, reduced by the amount of any condemnation awards paid as a
result of a taking of any part of the Property (defined in this Agreement), any
insurance proceeds paid to the Company for unrepaired damage to the Property (to
the extent such proceeds are not retained by the Company and delivered to
Purchaser at Closing), costs to be paid by Seller as provided in this Agreement
and applicable prorations (the "Purchase Price").

         I.2 DELIVERY OF CERTIFICATES. In exchange for delivery by Purchaser to
Seller of the Purchase Price payable in cash at the Closing, Seller will deliver
to Purchaser (i) stock certificates representing the Shares, endorsed in blank,
and accompanied by stock powers duly endorsed in blank, and (ii) executed
letters of any persons employed by the Company or any business entity affiliated
with or owned or controlled by the Company, resigning their position as an
officer, director and/or employee of the Company.

         I.3 EARNEST MONEY. In order to secure Purchaser's performance of this
Agreement, within three (3) business days after the execution of this Agreement,
Purchaser shall deposit with Winstead Sechrest & Minick P.C.. ("Escrow Agent")
the sum of FIFTY THOUSAND DOLLARS ($50,000.00) as earnest money ("Earnest
Money"). The Earnest Money shall be placed in an interest bearing account with a
federally insured banking institution mutually acceptable to Purchaser and
Seller, and all interest earned thereon shall be part of the Earnest Money and
shall be paid to the Party to whom the Earnest Money is payable as hereinafter
provided. Except as and to the extent otherwise expressly provided in this
Agreement, all Earnest Money shall be refundable to Purchaser in the event any
condition to Closing is not satisfied prior to Closing, or in the event of
Seller's wrongful failure or refusal to close. If the transactions contemplated
hereby are consummated, the Earnest Money shall be applied against the Purchase
Price at Closing. If the transactions are not consummated, the Earnest Money
shall be held and delivered by the Escrow Agent as provided in this Agreement.

                             ARTICLE II. THE CLOSING

         The Closing of the Sale of the Stock. The Closing of the sale of the
Shares shall occur at the offices of Purchaser, 5847 San Felipe, Suite 2600,
Houston, Texas, at 1:00 p.m. on the third business day following the approval of
this Agreement by the Texas Racing Commission (the "Commission") or such earlier
date as mutually agreed upon by Seller and Purchaser (the "Closing").

              ARTICLE III. REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents and warrants to Purchaser that, as of the date of
execution of this Agreement and up to and including the date of the Closing
(which representations and warranties shall survive the Closing, regardless of
what investigations, if any, Purchaser shall have made thereof prior to Closing)
as follows:

         III.1 ORGANIZATION. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Texas and is not required to be qualified, and is
not qualified, to do business in any jurisdiction other than Texas.

         III.2 NECESSARY ACTIONS; BINDING EFFECT. To Seller's knowledge, Seller
has taken all corporate action necessary to authorize its execution and delivery
of, and the performance of its obligations under, this Agreement. This Agreement
constitutes a valid obligation of Seller that is legally binding on and
enforceable against Seller in accordance with its terms, except as such
Enforceability may be limited by (i) bankruptcy, insolvency, moratorium or other
similar laws affecting creditors' rights, and (ii) general principles of equity
relating to the availability of equitable remedies (regardless of whether the
Agreement is sought to be enforced in a proceeding at law or in equity).

         III.3 NO CONFLICTS. To Seller's knowledge, neither the execution and
delivery of this Agreement by Seller or the performance by Seller of its
obligations hereunder nor the consummation of the transactions contemplated
hereby, will result in any of the following: (a) a default or an event that,
with notice or lapse of time, or both, would constitute a default, breach or
violation of any provision of the Articles of Incorporation or Bylaws of Seller;
or (b) a violation or breach of any writ, injunction or decree of any court or
governmental instrumentality applicable to Seller or by which any of its
properties is bound or any laws or regulations applicable to Seller, where the
violation would have a material adverse effect on Seller.

         III.4 CONSENTS AND APPROVALS. To Seller's knowledge, except for the
approval of the Commission as provided in Article IX, no consent, approval,
order or authorization of, or registration, declaration or filing with, any
person or entity or any court, administrative agency or commission or other
governmental authority or instrumentality is required by or with respect to
Seller in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby.

         III.5 CAPITALIZATION. The authorized capital stock of the Company
consists solely of 10,000 shares of common stock, no par value, of which 1,000
shares of that common stock (which constitutes the number of outstanding shares)
are issued and outstanding. There are in existence no subscriptions, preemptive
rights, calls, options, warrants, agreements, understandings, commitments or
rights of first refusal or similar rights or any other agreements to which
Seller is a party or by which Seller is bound relating to the issuance,
redemption, transfer, purchase or sale of any of the Shares, or of any other
securities of the Company convertible into capital stock or other securities of
the Company.

         III.6 TITLE TO THE SHARES. The Shares are owned of record and
beneficially by Seller as listed on Schedule 8 attached hereto and Seller holds
good, valid and indefeasible title to the Shares, free and clear of all liens,
encumbrances, pledges, charges, claims, restrictions, rights of first refusal,
voting trusts, voting agreements, buy/sell agreements, preemptive rights,
proxies or other interests of any nature of any person. Seller possesses full
authority and legal right to sell, transfer and assign legal and beneficial
ownership of its interest in the Company, free and clear of all liens,
encumbrances, pledges, charges, claims, restrictions, rights of first refusal,
voting trusts, voting agreements, buy/sell agreements, preemptive rights,
proxies or other interests of any nature of any person. Upon transfer of the
Shares at the Closing, the transferee will own the entire legal and beneficial
interest in the Company, free and clear of all liens, claims and encumbrances of
any kind, and subject to no legal or equitable restrictions of any kind.

         III.7 FINANCIAL STATEMENTS. Seller has delivered to Purchaser copies of
the financial statements described on Schedule 9 to this Agreement (the
"Financial Statements"), or will deliver the Financial Statements as required on
Schedule 9 within the time frame specified on Schedule 9, all of which are true,
correct and complete and have been prepared in accordance with generally
accepted accounting principles consistently followed throughout the periods
covered thereby, and presenting fairly the financial condition of the Company as
of those dates and the results of operations for those periods.

         III.8 ABSENCE OF UNDISCLOSED LIABILITIES. Except to the extent
reflected or reserved against in the most recent Financial Statement set forth
in Schedule 9, the Company, has no liabilities of any nature, whether accrued,
absolute, contingent, or otherwise, including, without limitation, tax
liabilities due or to become due, and whether incurred in respect of or measured
by its income or arising out of transactions entered into, or any state of facts
existing. Seller represents and warrants that it does not know or have
reasonable grounds to know of any basis for the assertion against the Company,
as of the date of this Agreement, of any liability of any nature or in any
amount not fully reflected or reserved against in the Financial Statements.

         III.9 ABSENCE OF CERTAIN CHANGES. Since the date of the most recent
Financial Statement set forth on Schedule 9, there has not been any change in
the Company's financial condition, assets, liabilities, or business, other than
changes in the ordinary course of business, none of which has been materially
adverse. There has not been any damage, destruction, or loss to the Property,
whether or not covered by insurance, materially and adversely affecting the
Property or the business conducted on, or to be conducted on, the Property or
which would prevent Purchaser from commencing, in the normal course of business,
operations of its business at the facilities on the Property. Notwithstanding
the foregoing, if (i) the Property has been damaged, (ii) such damage will not
cost in excess of $50,000 to repair, and (iii) such damage is fully covered by
insurance, Purchaser shall have no right to terminate this Agreement if Seller
assigns to Purchaser at Closing the proceeds of any insurance policy covering
such damages and pays to Purchaser at Closing the full amount of the deductible
under that policy (but in no event an amount in excess of the amount to repair
the damage), if any, unless such damage or destruction would prevent or delay
Purchaser from commencing, in the normal course of business, its operations at
the facilities on the property. If within one hundred eighty (180) days
subsequent to Closing Purchaser is unable to collect the full amount of the
damages from the insurance company (without any obligation to incur cost or file
a lawsuit to collect such amounts) Seller shall immediately pay to Purchaser the
unpaid portion of the damages. In the event Seller pays to Purchaser the unpaid
portion of the damages, Purchaser shall concurrently reassign the insurance
proceeds to Seller. There has not been (i) any declaration, or setting aside, or
payment of any dividend or other distribution in respect of the Shares (whether
in cash or in kind), or any direct or indirect redemption, purchase, or other
acquisition of any of the Shares; (ii) any increase in the compensation payable
or to become payable by the Company to any of its officers, employees, or
agents, or any bonus payment or arrangement made to or with any of them; or
(iii) any labor trouble, or any event or condition of any character, adversely
affecting the Company's business or prospects.

         III.10   TAXES.

                  (a) All Federal, state, local, territorial and foreign tax
         returns, reports, declarations, information statements and estimates
         (collectively, "Returns") have been timely filed for the Company for
         all periods which are required to be filed by it and the Company has
         paid all Taxes shown as payable by the Company on those Returns when
         and as required by law. For purposes of this Agreement, the term
         "Taxes" includes, without limitation, all taxes however denominated,
         including any interest, penalties and other additions to tax including
         income, real and personal property, payroll, employee withholding,
         unemployment insurance, social security, sales, use, ad valorem,
         excise, franchise, gross receipts, business license, occupation,
         pari-mutuel, stamp, environmental, transfer, workers' compensation,
         Pension Benefit Guaranty Corporation premiums and other governmental
         charges. All Returns required to be filed by the Company were true,
         correct and complete.

                  (b) No Returns are currently under any examination by the
         Internal Revenue Service ("IRS"), or any state, local or municipal tax
         authority having jurisdiction thereof, and, to the best knowledge of
         Seller, no items of revenue, cost or expense have been treated in a
         manner inconsistent with the prior years' Returns of the Company and/or
         any employee benefit plan of the Company which is not accordance with
         the provisions of the Internal Revenue Code of 1986, as amended (the
         "Code"), Treasury Regulations, and/or related state authorities which
         could result in additional Tax to the Company. Any additional Tax
         liability asserted by the IRS or by the State of Texas or other taxing
         authority as a result of any examinations has been paid unless
         contested and disclosed to Purchaser in writing.

                  (c) The provisions for Taxes, if shown on the Financial
         Statements, are adequate to cover the liabilities of the Company for
         all Taxes to the date thereof. All withholding taxes or other Taxes the
         Company is obligated to collect have been withheld or collected.

                  (d) At the Closing there will be no liens on any of the assets
         of the Company including, without limitation, the Property with respect
         to Taxes, other than liens for Taxes not yet due and payable or for
         Taxes that the Company is contesting in good faith through appropriate
         proceedings and for which appropriate reserves have been established.

                  (e) The Company has never been a member of an affiliated group
         filing consolidated returns other than a group for which the Company is
         currently a member. Neither the Company nor any member of the Company's
         group does business in or derived income from any state, local,
         territorial or foreign taxing jurisdiction other than those for which
         all Returns have been furnished to Purchaser.

                  (f) There is no tax audit in process, pending or threatened
         (either in writing or verbally, formally or informally). No tax
         deficiencies exist or have been asserted or expect to be asserted with
         respect to the Company or the Property and no notice has been delivered
         or is expected to be delivered stating that the Company or the Property
         has not filed a Return or paid any Taxes required to be filed or paid
         by it. No waiver or extension of any statute of limitations is in
         effect with respect to Taxes or Returns of the Company. The Company has
         disclosed on its federal income tax returns all positions taken in
         those returns that could give rise to substantial understatement
         penalty within the meaning of Section 6662 of the Code.

                  (g) The Company is currently a party to a tax sharing
         agreement and covenants to cancel such agreement prior to the Closing
         Date; the Company has not assumed the liability of any other person
         under contract.

                  (h) The Company is not a party to any safe harbor lease within
         the meaning of Section 168(f)(8) of the Code. The Company is not and
         has not been a United States real property holding corporation within
         the meaning of Section 897(c)(2) of the Code and Seller is not subject
         to withholding tax on the sale of the stock of the Company by reason of
         Section 1445 of the Code. Neither Seller nor the Company is a foreign
         person (as that term is defined in Section 1445 of the Code). Seller
         and the Company have not agreed, nor are they required to make any
         adjustment under Section 481(a) of the Code by reason of a change in
         accounting method or otherwise.

         III.11 TITLE TO REAL PROPERTY. The Company owns fee simple title to
real property described on Exhibit "A" to this Agreement (the "Property") free
and clear of any liens, claims, charges, options or other encumbrances, subject
only to the matters that are listed on Exhibit "B" to this Agreement. Seller
hereby warrants and defends title to the Property.

         III.12 TITLE TO PERSONAL PROPERTY. The Company has good and marketable
title to all personal property described on Exhibit "A-1" to this Agreement and
all other equipment and personal property located in, on or used in connection
with the Property (the "Personal Property"), free and clear of any liens,
claims, charges, options or other encumbrances. There are no financing
statements filed or signed which list the Company as debtor and no agreements
exist authorizing or permitting any person to sign or file any such statements.
Seller hereby warrants and defends the title to the Personal Property.

         III.13 REPRESENTATIONS REGARDING THE PROPERTY AND PERSONAL PROPERTY.
Seller makes the following representations to Purchaser regarding the Property
and the Personal Property:

                (a) Claims. Other than the lease agreement set forth on
         Schedule 10, the Property and the Personal Property are not subject to
         any prior lease or claims of parties in possession or claims for unpaid
         labor or materials.

                (b) Condemnation. There is no pending or threatened
         condemnation action or agreement in lieu thereof which affects the
         Property. There are no monetary liens or encumbrances (except the
         Permitted Exceptions) upon the Property or the Personal Property.

                (c) Zoning. Seller has no knowledge of any fact, action or
         proceeding, whether actual, pending or threatened, which could result
         in the modification or termination of the present zoning classification
         of the Property, or the termination of full, free and adequate access
         to and from the Property from all adjoining public highways and roads.

                (d) Improvements. To Seller's knowledge, the existing
         improvements and utilities on the Property are in full compliance with
         all applicable building, health and zoning laws and ordinances,
         including, without limitation, the Americans with Disabilities Act and
         the Texas Architectural Barriers Act. To Seller's knowledge, there is
         no latent or material structural defects in the Property.

                (e) Notices.  Seller has not received any notice from any
         governmental authority having jurisdiction over the Property requiring
         or specifying any work to be done on or to the Property.

                (f) Interference With Use. Seller has no knowledge of any
         existing, threatened or contemplated actions, circumstances or
         conditions (including, but not limited to subsurface conditions) which
         would materially interfere with the use of the Property for the
         purposes for which it is intended to be used.

                (g) Taxes. All ad valorem real and personal property taxes,
         excise taxes, income taxes and sales and use taxes applicable to the
         Property and the Personal Property have been paid in full, except for
         taxes not yet due and payable.

                (h) Books and Records.  All books, records, financial statements
         and other such information provided by Seller to Purchaser are true
         and correct.

                (i) Fitness. Seller makes no warranty of fitness, express or
         implied, as to the Personal Property. Except as noted on Exhibit A-1,
         Seller has no actual knowledge as to the fitness of any of the Personal
         Property, and undertakes no obligation to investigate such Personal
         Property.

         III.14 ADDITIONAL AGREEMENTS. Except as specifically described and
disclosed in this Agreement, the Company is not a party to any written or oral:
(a) sales, agency distribution or advertising contract; (b) contract with a
labor organization; (c) continuing contract for the future purchase of services,
materials, supplies, or equipment in excess of the requirements of its business
now booked or for normal operating inventories; (d) lease under which it is a
lessor or lessee; (e) pension, profit sharing, retirement, bonus,
hospitalization, insurance or similar plans or practices, formal or informal, in
effect with respect to its employees or others; (f) contract or agreement of any
other nature with any current or former officer, director, shareholder, or
employee of the Company, including any related party to such person; (g) power
of attorney; or (h) contract or commitment not elsewhere disclosed in this
Agreement; provided, however that if any contract or commitment exists which has
not been disclosed herein, Seller shall terminate such contract or commitment
prior to or at Closing.

         III.15 SCHEDULES. Seller hereby represents that the following schedules
attached to this Agreement are true and correct in all material respects:

                Schedule 1. Schedule 1 contains a list and description of all
         franchises, business licenses, permits, certificates or any evidence or
         governmental approvals which are held by the Company or any of their
         employees for the benefit of the Company (and any pending applications
         for any of the foregoing).

                Schedule 2. Schedule 2 contains a list and description of all
         litigation and arbitration, which to Seller's knowledge the Company has
         been named a party during the five (5) years preceding the date of this
         Agreement, and a list and brief description of all pending or
         threatened litigation or administrative or governmental proceedings to
         which the Company may become a party, or by which its assets,
         operations, or franchises may be affected.

                Schedule 3. Schedule 3 contains a list and description of
         Company's pension, profit sharing, retirement or other obligations
         relating to former employees of the Company. Upon request by Purchaser,
         Seller agrees to furnish Purchaser with copies of such items. As of the
         date of this Agreement, the Company has no employees.

                Schedule 4. Schedule 4 contains a list of all bank accounts,
         including current balances, safe deposit boxes, and securities owned by
         the Company and investments of the Company and amounts thereof,
         accompanied by a list of names of all persons authorized to draw
         thereon or to have access thereto.

                Schedule 5. Schedule 5 contains a list of all trademarks,
         service marks, trade names, copyrights, trade secrets, and similar
         rights, names, assumed names, or marks or any other intangible assets
         used by the Company.

                Schedule 6. Schedule 6 contains a list of any and all reports
         filed by the Company with any federal, state or local administrative or
         governmental agency, including without limitation, the Commission, the
         Texas Alcoholic Beverage Commission, the Bureau of Alcohol, Tobacco and
         Firearms, the Environmental Protection Agency and the Occupational
         Safety and Health Administration, and a copy of any communications
         received by the Company from such agencies.

                Schedule 7. Schedule 7 contains a list of any and all Returns
         (including, but not limited to, Returns of any employee benefit plan of
         the Company) of the Company, including all schedules and attachments
         thereto, for the immediately preceding five (5) years. Copies of all
         such Returns have been delivered to Purchaser prior to Closing.

                Schedule 8. Schedule 8 sets forth the name and jurisdiction of
         incorporation of the Company, the number of Shares of authorized,
         issued and outstanding capital stock of each class of capital stock of
         the Company and the record and beneficial owner of all of the
         outstanding shares of capital stock of the Company (free and clear of
         any restrictions on transfer, taxes, security interests, options,
         warrants, purchase rights, contracts, commitments, equities, claims,
         and demands. All of the issued and outstanding shares of capital stock
         of the Company have been duly authorized and are validly issued, fully
         paid, and nonassessable.

                Schedule 9. Schedule 9 contains a list of all of the financial
         statements relating to the Company that have been delivered to
         Purchaser.

                Schedule 10. Schedule 10 contains a list of written agreements
         to which the Company is a party.

                Schedule 11. Schedule 11 sets forth the allocation of the
         Purchase Price among the assets of the Company that are deemed to have
         been acquired pursuant to Section 338(h)(10) of the Code or state law
         equivalent.

                Schedule 12. Schedule 12 contains a list of liens to be
         released.

         The information furnished by Seller to Purchaser in accordance with
this Section 3.15 was prepared by Seller after diligent investigation, and
Seller knows of nothing which would result in any adverse change in that
information.

         III.16 LITIGATION. To Seller's knowledge, except as set forth in
Schedule 2, there are no actions, suits, proceedings, or investigations pending
or threatened against or affecting the Company or the Property, at law or in
equity or before or by any federal, state, municipal or other governmental
department, commission, board, agency or instrumentality. To Seller's knowledge,
the Company is not in default with respect to any writ, injunction or decree of
any court or federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality. To Seller's knowledge, the
Company is not a party to or subject to any judgment, order or decree entered in
any action or proceeding brought by any governmental agency or any other party
against the Company, enjoining it in respect of, or the effect of which is to
limit, restrict, regulate or prohibit, any business practice or the conduct of
business or the acquisition of any property. To Seller's knowledge, there are no
actions, suits, proceedings or claims pending or threatened against Seller with
respect to or in any manner affecting the ownership of the Shares, or where any
unfavorable ruling, decision or finding would render unlawful or otherwise
adversely affect the consummation of the transactions contemplated by this
Agreement.

         III.17 ENFORCEABILITY OF AGREEMENT. Seller has all requisite power,
authority and capacity to enter into this Agreement and to perform its
obligations under this Agreement. This Agreement constitutes a valid and legally
binding obligation of Seller, enforceable in accordance with its terms. Neither
the execution and delivery of this Agreement nor the performance of this
Agreement will constitute or result in the breach of any term, condition or
provision of, or constitute a default under, any material agreement or other
instrument to which Seller or the Company is a party, or under any law,
regulation, judgment or order binding upon Seller or the Company, or result in
the creation of any lien, charge or encumbrance against the Shares.

         III.18 NO DEFAULTS. The Company has performed all obligations required
to be performed by it to date and is not in default, in any material respect,
under any of the agreements, contracts, or other documents to which it is a
party, nor has there occurred any event that with notice or the lapse of time or
both would constitute a material default under such agreements, contracts or
other documents. Neither Seller nor the Company is a party to any contract or
agreement affecting the Shares which is nonassignable, prevents or places
restrictions on Seller's ability to sell the Shares or which will be adversely
affected by the sale of the Shares.

         III.19 LIABILITIES. There are no liabilities of the Company of any
kind, whether or not accrued or contingent and whether or not determined or
determinable, other than liabilities disclosed to Purchaser in this Agreement.

         III.20 INSURANCE. All of the insurance policies carried for the benefit
of the Company are in full force and effect and Seller and the Company have no
knowledge of any threat by an insurance carrier to terminate any of the
insurance policies now held for the benefit of the Company or increase any
premiums in respect thereof, nor has the Company failed to comply with any
material conditions contained in those policies. The Company is insured with
respect to loss or damage to buildings, equipment and inventory, public
liability, products liability, and all other risks normally insured against by
companies similarly situated.

         III.21 CORPORATE RECORDS. True and correct copies of the Articles of
Incorporation and any amendments thereto and the Bylaws of the Company or any
predecessor to the Company have been delivered to Purchaser prior to the
execution of this Agreement. The corporate minute books of the Company will be
brought current as of the date of this Agreement and will be delivered to the
transferee of the Shares. The minute books will contain the minutes of all of
the meetings of the directors and shareholders of the Company which have been
held. In addition, the minute books accurately reflect the current officers and
directors of the Company.

         III.22 ACCURACY OF REPRESENTATIONS, WARRANTIES AND COVENANTS. To
Seller's knowledge, no representation, warranty or covenant made by Seller in or
pursuant to this Agreement contains or will at the Closing contain any untrue
statement of a material fact or omits or will omit to state any material fact
necessary to make such representation, warranty or statement not misleading, in
light of the circumstances in which it was made.

         III.23 LEGAL COMPLIANCE. The Company has complied with all applicable
laws (including rules, regulations, codes, plans, injunctions, judgments,
orders, decrees, rulings, and charges thereunder) of federal, state, local, and
foreign governments (and all agencies thereof), and to Seller's knowledge, no
action, suit, proceeding, hearing, investigation, charge, complaint, claim,
demand, or notice has been filed or commenced against any of them alleging any
failure to so comply.

         III.24 KNOWLEDGE. For purposes of determining under this Article III
whether Seller and/or the Company knows of any facts, events, conditions or
circumstances relating to the subject matter of the representations and
warranties contained in this Article III, Seller and/or the Company shall be
deemed to have knowledge of the facts, events, conditions and circumstances
actually known on or before the date hereof by any of the following officers of
Seller and the Company: John M. Swiatek, William McLaughlin, George P. Harbison
or Glenn R. Zeringue.

         III.25 MATERIALITY. To the extent Seller is not in material breach of
any of the representations and warranties set forth in Sections 3.8 and 3.19,
Purchaser shall not be entitled to terminate this Agreement, provided that
Seller cures such breach at or before Closing, or provides reasonably adequate
assurances that the curative measures will be accomplished in a commercially
reasonable period of time. Material, as defined in this Section 3.25 shall mean
damages not to exceed $50,000.

             ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF PURCHASER

         Purchaser hereby represents and warrants to Seller as follows:

         IV.1 ORGANIZATION AND GOOD STANDING. Purchaser is a limited partnership
duly organized, validly existing and in good standing under the laws of the
State of Texas. Purchaser is duly qualified to do business and is in good
standing in the State of Texas. Purchaser has the requisite partnership power
and authority to carry on its business as now being conducted and to execute and
deliver and perform its obligations under this Agreement.

         IV.2 NECESSARY ACTIONS; BINDING EFFECT. To Purchaser's knowledge,
Purchaser has taken all partnership action necessary to authorize its execution
and delivery of, and the performance of its obligations under, this Agreement.
This Agreement constitutes a valid obligation of Purchaser that is legally
binding on and enforceable against Purchaser in accordance with its terms,
except as such enforceability may be limited by (i) bankruptcy, insolvency,
moratorium or other similar laws affecting creditors' rights, and (ii) general
principles of equity relating to the availability of equitable remedies
(regardless of whether the Agreement is sought to be enforced in a proceeding at
law or in equity).

         IV.3 CERTAIN PROCEEDINGS. To Purchaser's knowledge, there is no pending
proceeding that has been commenced against Purchaser and that challenges, or may
have the effect of preventing, delaying, making illegal, or otherwise
interfering with, any of the contemplated transactions. To Purchaser's
knowledge, no such proceeding has been threatened.

         IV.4 NO CONFLICTS. To Purchaser's knowledge, neither the execution and
delivery of this Agreement by Purchaser or the performance by Purchaser of its
obligations hereunder nor the consummation of the transactions contemplated
hereby, will result in any of the following: (a) a default or an event that,
with notice or lapse of time, or both, would constitute a default, breach or
violation of any provision of the Articles of Incorporation or Bylaws of
Purchaser; or (b) a violation or breach of any writ, injunction or decree of any
court or governmental instrumentality applicable to Purchaser or by which any of
its properties is bound or any laws or regulations applicable to Purchaser,
where the violation would have a material adverse effect on Purchaser.

         IV.5 DISCLOSURE. To Purchaser's knowledge, none of the representations
or warranties of Purchaser contained herein or in any certificate furnished or
to be furnished pursuant hereto, contains any statement of a material fact that
was untrue when made or omits to state any material fact necessary to make the
statements of fact contained herein or therein not misleading in any material
respect.

         IV.6 CONSENTS AND APPROVALS. To Purchaser's knowledge, except for the
approval of the Commission as provided in Article IX, no consent, approval,
order or authorization of, or registration, declaration or filing with, any
person or entity or any court, administrative agency or commission or other
governmental authority or instrumentality is required by or with respect to
Purchaser in connection with the execution and delivery of this Agreement or the
consummation of the transactions contemplated hereby.

         IV.7 INVESTMENT INTENT. Purchaser is acquiring the Shares for its own
account and not with a view to their distribution within the meaning of Section
2(11) of Securities Act of 1933, as amended (the "Securities Act").

         IV.8 KNOWLEDGE. For purposes of determining under this Article IV
whether Purchaser knows of any facts, events, conditions or circumstances
relating to the subject matter of the representations and warranties contained
in this Article IV, Purchaser shall be deemed to have knowledge of the facts,
events, conditions and circumstances actually known on or before the date hereof
by any of the following officers of Purchaser: Robert L. Bork and Michael J.
Vitek.

                             ARTICLE V. TAX MATTERS

         V.1  SECTION 338(H)(10).

              (a) Election. Upon the request of Seller, Seller and Purchaser
         shall make a joint election under Section 338(h)(10) of the Code with
         respect to the purchase of the Shares and under any similar provisions
         of state law. Seller represents that its sale of the Shares is eligible
         for, and Purchaser represents that it is qualified to make, such
         election. Seller and Purchaser agree to prepare and file IRS Form 8023,
         required schedules thereto, and any similar state forms in a timely
         fashion in accordance with the rules under Section 338 of the Code or
         under a similar provision of state law, as the case may be. If any
         changes are required in these forms subsequent to their filing, the
         parties will promptly agree on such changes.

              (b) Allocation of Purchase Price. If the election contemplated
         in Section 5.1(a) hereof is made, Seller and Purchaser agree that
         Schedule 11 accurately reflects the parties' allocation of the Purchase
         Price among the assets of the Company that are deemed to have been
         acquired pursuant to Section 338(h)(10) of the Code or state law
         equivalent. Purchaser and Seller shall use the asset values determined
         from such allocation for purposes of all reports and returns with
         respect to Taxes, including IRS Form 8594 or any equivalent statement.

              (c) Amendments. Purchaser agrees that it shall not make any
         amendment to any federal income Tax Return of the Company for any
         period ending before Closing (or to any state Tax return that computes
         a tax liability by reference to amounts shown on the Company's federal
         income Tax Return for any such period) without the written consent of
         Seller.

              (d)      Taxes  Relating to Election.  Seller shall pay any and
         all Taxes arising from or relating to an election made under Section
         338(h)(10) of the Code.

                  ARTICLE VI. COVENANTS OF PURCHASER AND SELLER

         VI.1   SELLER'S COVENANTS.  Seller covenants and agrees that between
the date of this Agreement and the Closing:

                (a) Actions. Neither Seller nor the Company shall take any
         action which would cause any conditions precedent to any obligations
         under this Agreement not to be fulfilled, including, without
         limitation, taking, causing to be taken, or permitting to be taken or
         to exist any action, condition or thing which would cause the
         representations and warranties made by Seller in Article III above not
         to be materially true, correct and accurate as of the Closing.

                (b) Filings. Seller shall promptly file or submit and
         diligently prosecute any and all applications or notices with public
         authorities, federal, state or local, domestic or foreign, and all
         other requests for approvals to any private persons or entities, the
         filing or granting of which is necessary for the consummation of the
         sale of the Shares in accordance with this Agreement to the extent
         Seller is obligated hereunder.

                (c) No Liens. Seller and the Company shall not mortgage,
         pledge or subject to lien, charge, security agreement or any
         encumbrance, the Shares or any interest therein or the Property, or
         sell, lease, transfer or dispose of the Property or any of the Shares
         or any interest therein.

                (d) Preparation of Returns and Payment of Taxes. Seller shall
         cause the Company to prepare and timely file all Returns of the Company
         and amendments thereto required to be filed by them for tax periods
         which end on or before the Closing Date. Purchaser shall have a
         reasonable opportunity to review all Returns and amendments thereto.
         Seller shall cause the Company to pay and discharge all Taxes against
         it or any of its properties or assets, and all liabilities at any time
         existing, before they become delinquent and before penalties accrue,
         except to the extent and as long as: (a) they are being contested in
         good faith and by appropriate proceedings pursued diligently and in a
         manner so as not to cause any material adverse effect upon the
         condition (financial or otherwise) or operations of the Company; and
         (b) the Company shall have set aside on its books reserves (segregated
         to the extent required by sound accounting practice) in the amount of
         the demanded principal imposition (together with interest and penalties
         relating thereto, if any).

                (e) Access to Records. Between the date of this Agreement and
         the Closing Date, Seller shall give Purchaser and its authorized
         representatives full access to all properties, books, records and
         Returns of or relating to the Company and the Company's assets, whether
         in possession of Seller or third-party professional advisors or
         representatives in order that Purchaser may have full opportunity to
         make such investigations as it shall desire to make of the affairs of
         the Company. Seller shall ensure that all third-party advisors and
         representatives of Seller, including without limitation accountants and
         attorneys, fully cooperate and be available to Purchaser in connection
         with such investigation.

                (f) Certification of Non-Foreign Status. Seller shall furnish
         to Purchaser on or before the Closing Date a certification of Seller's
         non-foreign status as set forth in Treasury Regulation 1.1445-2(b).

                (g) Payment of Taxes; Prorations. Seller shall pay all taxes
         as they come due relating to the Property and the Personal Property.
         Upon the Closing Date, any unpaid real estate taxes and assessments for
         the current calendar year, personal property taxes, utility charges,
         and other normal and recurring costs and expenses attributable to the
         Property and Personal Property shall be prorated between the parties as
         of the Closing Date. Taxes for any period less than a year shall be
         prorated on a daily basis. Purchaser shall be given a credit against
         the Purchase Price in an amount equal to Seller's portion of the
         prorated taxes.

                (h) Conditions Precedent. Seller shall take all reasonable
         steps which are within its power to cause to be fulfilled those of the
         conditions precedent to Purchaser's obligations to consummate the
         transactions contemplated hereby which are dependent upon the actions
         of Seller.

         VI.2 PURCHASER'S COVENANTS. As promptly as practicable after the date
of the execution of this Agreement, Purchaser will make all filings required by
legal requirements to consummate the contemplated transactions to the extent
Purchaser is obligated hereunder. Between the date of this Agreement and the
Closing Date, Purchaser will cooperate with Seller with respect to all filings
that Seller is required to make in connection with the contemplated
transactions.

               ARTICLE VII. CONDITIONS TO OBLIGATIONS OF PURCHASER

         The obligations of Purchaser to consummate the transactions
contemplated hereby shall be subject to the following conditions:

         VII.1 REPRESENTATIONS AND WARRANTIES TRUE AND CORRECT. At the Closing,
all material representations and warranties of Seller contained herein shall
have been true on the date hereof and shall be true and correct as of the
Closing as if made for the first time as of the Closing; and Seller shall have
performed all obligations and complied with all covenants required by this
Agreement to be performed or complied with by Seller prior to the Closing.
Purchaser shall have been furnished with a certificate, signed by Seller and
dated as of the Closing, to the foregoing effect.

         VII.2 OPINION OF SELLER AND THE COMPANY. Seller shall have delivered to
Purchaser an opinion of counsel to both Seller and the Company, dated the
Closing Date, that the Company's corporate existence, good standing, and
authorized and issued stock are as stated in Article III, that Seller has the
authorization and power to transfer the Shares, that the form of the release of
the liens set forth on Schedule 12 is in the form sufficient to release said
liens, is enforceable and that such releases have been validly executed and
delivered.

         VII.3 ABSTRACTOR'S CERTIFICATE. Seller shall deliver to Purchaser on or
before the Closing Date an Abstractor's Certificate containing the following
exceptions, and none other: (1) standby fees and taxes for the year of the
Closing and subsequent years; and (2) other matters as shown on Exhibit "B"
attached to this Agreement (collectively the "Permitted Exceptions").

         VII.4 ENVIRONMENTAL AGREEMENT. Seller shall deliver to Purchaser the
Environmental Agreement attached to this Agreement as Exhibit "C"
("Environmental Agreement") executed by Seller.

         VII.5 COMMISSION APPROVAL.  The Commission shall have given the
approval required in Article IX.

         VII.6 DELIVERY OF PROPERTY. At the Closing, Seller shall deliver to
Purchaser all Personal Property, including without limitation, books, records
and Returns of the Company, and all keys and combinations to all locks in the
improvements.

                ARTICLE VIII. CONDITIONS TO OBLIGATIONS OF SELLER

         The obligations of Seller to consummate the transactions contemplated
hereby shall be subject to the following conditions:

         VIII.1 REPRESENTATIONS AND WARRANTIES TRUE AND CORRECT. At the Closing,
all material representations and warranties of Purchaser contained herein shall
have been true on the date hereof and shall be true and correct as of the
Closing as if made for the first time as of the Closing; and Purchaser shall
have performed all obligations and complied with all covenants required by this
Agreement to be performed or complied with by Purchaser prior to the Closing.
Seller shall have been furnished with a certificate, signed by Purchaser and
dated as of the Closing, to the foregoing effect.

         VIII.2 DELIVERY OF PURCHASE PRICE FOR THE SHARES. The Purchase Price
shall be delivered to Seller in cash, or cash equivalent, at the Closing.

         VIII.3 DISMISSAL OF SUIT.  Purchaser shall deliver to Seller an agreed
order of dismissal with prejudice of the civil action entitled SHRP Valley,
LLC v. Ladbroke Racing Corporation, et. al., cause no. 99-11-4702-D filed in
the 103rd Judicial District Court in Cameron County, Texas.

         VIII.4 ENVIRONMENTAL AGREEMENT.  Purchaser shall deliver to Seller the
Environmental Agreement executed by Purchaser.

         VIII.5 LICENSING FEE. Seller shall pay prior to Closing the unpaid
portion of the annual payment due for inactive greyhound racetracks to the
Commission on the Company's Greyhound Racing License attached as Exhibit "D" to
this Agreement (the "License") for the licensing period from and after January
1, 2000, such liability not to exceed the aggregate sum of $18,750; provided
that Purchaser shall have full liability for any fees due the Commission on
account of any change in the status of the License from its current inactive
status.

         VIII.6 COMPANY NAME. Prior to or contemporaneously with Closing, the
Company shall be renamed to a name approved by Purchaser, but such new name
shall not include "Ladbroke" or "Ladbrokes".

                              ARTICLE IX. APPROVAL

         Seller and Purchaser shall each use their best efforts to obtain
approval of this Agreement by the Commission and the issuance by the Commission
of a resolution evidencing its determination that Purchaser is authorized to
exercise all of the rights under the License, that the License is in full force
and effect such that Purchaser shall be entitled, as the transferee of the
Shares, to continue all operations authorized under the License as a dog racing
facility. In the event this approval is not obtained, either Party may terminate
this Agreement within fifteen (15) days after receiving written notice that the
approval cannot be obtained.

                     ARTICLE X. TERMINATION AND ABANDONMENT

         X.1 METHODS OF TERMINATION. This Agreement may be terminated and the
purchase and sale of the Shares herein contemplated may be abandoned at any time
but not later than the Closing Date:

             (a) By mutual written consent of Seller and Purchaser;

             (b) By either Purchaser or Seller if a material breach of any
         provision of this Agreement has been committed by the other Party and
         such breach has not been waived or cured within a period of ten (10)
         days after receipt of written notice of such material breach; provided,
         however, if such breach is not capable of being cured within a ten (10)
         day period, and further provided that the Party in breach shall have
         commenced all reasonable steps to cure such breach, the cure period
         shall be extended as reasonably necessary to allow the Party to cure
         such breach, but not more than thirty (30) days without the written
         consent of both Parties hereto; or

             (c) By any Party, if the Closing has not occurred by March 31,
         2000; provided, that the Party so terminating is not in breach of any
         of its material obligations under this Agreement.

         X.2 PROCEDURE UPON TERMINATION.

             (a) In the event of termination and abandonment by Purchaser
         or by Seller, or both, pursuant to Section 10.1 hereof, written notice
         thereof shall forthwith be given to the other Party or Parties and to
         the Escrow Agent. If this Agreement is terminated as provided herein:

                      (i) Each Party will redeliver all documents,
              workpapers and other material of any other Party relating to
              the transactions contemplated hereby, whether so obtained
              before or after the execution hereof, to the Party furnishing
              the same;

                       (ii) The Parties shall be relieved of any obligation
              to sell or purchase the Shares, but none of the Parties shall
              be relieved of any liability for any material breach or
              default under this Agreement.

             (b) If this Agreement is validly terminated by Seller in
         accordance with Section 10.1(b), Seller shall be entitled either (i) to
         the Earnest Money as liquidated damages; or (ii) to enforce specific
         performance of this Agreement by Purchaser. Purchaser shall be entitled
         to the Earnest Money if this Agreement is validly terminated in
         accordance with Sections 10.1(a), 10.1(c), or by Purchaser in
         accordance with Section 10.1(b). If this Agreement is validly
         terminated by Purchaser in accordance with Section 10.1(b), Purchaser
         shall be entitled to exercise all remedies available to it at law or in
         equity or enforce specific performance of the Agreement.

                            ARTICLE XI. MISCELLANEOUS

         XI.1 NOTICES. Any notice, request, instruction or other document to be
given under this Agreement after the date hereof by any Party hereto to any
other Party hereto shall be in writing and shall be delivered personally against
a written receipt therefor, or sent by registered or certified mail, postage
prepaid, return receipt requested, and addressed to the proper Party at the
addresses shown below, or at such other address or person as any Party may
hereafter designate by written notice to the other Party in accordance herewith.
The date of mailing of any notice in accordance with this paragraph shall be
deemed to be the date of such notice and notice shall be effective from such
date.

         PURCHASER:                 Sam Houston Race Park, Ltd.
                                    P.O. Box 2323
                                    7575 N. Sam Houston Parkway West
                                    Houston, Texas  77252-2323
                                    Attn:  Robert L. Bork

         with copy to:              David Suson
                                    MAXXAM, Inc.
                                    5847 San Felipe, Suite 2600
                                    Houston, Texas 77007

         SELLER:                    Ladbroke Racing Corporation
                                    375 Southpointe Boulevard
                                    Suite 150
                                    Canonsburg, Pennsylvania 15317
                                    Attn:  John M. Swiatek

         with copy to:              Winstead Sechrest & Minick, P.C.
                                    100 Congress Avenue
                                    Suite 800
                                    Austin, Texas 78701
                                    Attn:  Timothy E. Young

         XI.2 EXPENSES AND FINDERS FEE. Seller and Purchaser shall each bear
their own expenses incurred in connection with this Agreement and with the
performance of their obligations under this Agreement. Seller and Purchaser each
represent to each other that no third person has brought the parties together or
is otherwise entitled to compensation in connection with this transaction.
Accordingly, each of the parties hereto shall indemnify the other for any
liability to any broker, finder or other third party for any fees in connection
with the transaction contemplated in this Agreement resulting from that Party's
actions in connection with this Agreement.

         XI.3 INDEMNIFICATION OF PURCHASER. Effective as of the Closing Date and
notwithstanding any investigation of the assets, properties, books, records and
business of the Company made by or an behalf of Purchaser prior to the Closing,
Seller hereby indemnifies Purchaser and shall hold Purchaser harmless from and
against all damages, losses, claims, liabilities and expenses, including
attorneys' fees, caused by or arising out of (i) all liabilities of the Company
of any nature, including, without limitation, any claims or demands of a
tortuous nature, whether accrued, absolute, contingent, or otherwise known or
unknown which arose in whole or in part prior to and including the Closing Date,
including, without limitation, any tax liabilities accrued in respect of, or
measured by the Company's income up to and including the Closing Date, or
arising out of transactions entered into, or any state of facts arising, prior
to and including the Closing Date; (ii) all liabilities of, or claims against,
the Company or the Property arising out of the conduct of the Company's business
prior to and including the Closing Date; (iii) any damage or deficiency
resulting from any misrepresentation, breach of warranty, nonfulfillment of any
agreement on the part of Seller and/or the Company under this Agreement, or from
any misrepresentation in or omission from any certificate or other instrument
furnished or to be furnished to Purchaser hereunder; (iv) failure of the
representations, warranties and covenants given by Seller in this Agreement to
be true and correct; and (v) all actions, suits, proceedings, demands,
assessments, judgments, costs, and expenses incident to any of the foregoing,
including the Company's gross negligence or intentional misconduct relating to
the License or operations of the racing facility on the Property.
Notwithstanding the foregoing and the provisions of Section 11.7, any
indemnification relating to environmental issues shall be controlled solely by
the Environmental Agreement. The total aggregate liability of Seller for all
claims that may arise under Section 11.3 and under the Environmental Agreement
will not exceed $2,350,000.

         XI.4 INDEMNIFICATION OF SELLER. Effective as of the Closing Date,
Purchaser hereby indemnifies Seller and shall hold Seller harmless from and
against all damages, losses, claims, liabilities and expenses, including
attorneys' fees, caused by or arising out of (i) all liabilities of the Company
of any nature, including, without limitation, any claims or demands of a
tortuous nature, whether accrued, absolute, contingent, or otherwise known or
unknown which arise in whole or in part from and after the Closing Date,
including, without limitation, any tax liabilities accrued in respect of, or
measured by the Company's income from and after the Closing Date, or arising out
of transactions entered into, or any state of facts arising, from and after the
Closing Date; (ii) all liabilities of, or claims against, the Company or the
Property arising out of the conduct of the Company's business from and after the
Closing Date; (iii) any damage or deficiency resulting from any
misrepresentation, breach of warranty, nonfulfillment of any agreement on the
part of Purchaser under this Agreement, or from any misrepresentation in or
omission from any certificate or other instrument furnished or to be furnished
to Seller hereunder; (iv) failure of the representations, warranties and
covenants given by Purchaser in this Agreement to be true and correct; and (v)
all actions, suits, proceedings, demands, assessments, judgments, costs and
expenses incident to any of the foregoing. The total aggregate liability of
Purchaser for all claims that may arise under Section 11.4 will not exceed
$500,000.

         XI.5 DEFENSE OF CLAIMS; NOTICE. Promptly after receipt by an
indemnified Party under Sections 11.3 or 11.4 of notice of commencement of any
action, such indemnified Party will, if a claim in respect thereof is to be made
by the indemnified Party against the indemnifying Party under Sections 11.3 or
11.4, notify the indemnifying Party in writing of the commencement thereof; but
the failure so to notify the indemnifying Party (i) will not relieve it from any
liability under Sections 11.3 or 11.4 unless and to the extent it did not
otherwise learn of such action and such failure results in the forfeiture by the
indemnifying Party of substantial rights and defenses, and (ii) will not, in any
event, relieve the indemnifying Party from any obligations to any indemnified
Party other than the indemnification obligations provided in Sections 11.3 or
11.4. The indemnifying Party shall appoint counsel of the indemnifying Party's
choice at the indemnifying Party's expense to represent the indemnified Party in
any action for which indemnification is sought; provided, however, that such
counsel shall be reasonably satisfactory to the indemnified Party.
Notwithstanding the foregoing, the indemnified Party shall have the right to
employ separate counsel and the indemnifying Party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying Party to represent the indemnified Party would
present such counsel with a conflict of interest, (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified Party
and the indemnifying Party, and the indemnified Party shall have reasonably
concluded that there may be legal defenses available to it which are different
from or additional to those available to the indemnifying Party, (iii) the
indemnifying Party will not have employed counsel reasonably satisfactory to the
indemnified Party to represent the indemnified Party within a reasonable time
after notice of the institution of such action, or (iv) the indemnifying Party
shall authorize the indemnified Party to employ separate counsel at the expense
of the indemnifying Party. The indemnifying Party shall have full control of
such defense and proceedings, including any compromise or settlement thereof.
The indemnified Party shall reasonably cooperate with the indemnifying Party and
its counsel in defending such claims. Notwithstanding the foregoing, an
indemnifying Party shall not, without the prior written consent of the
indemnified Party, settle or compromise or consent to the entry of any judgment
with respect to any pending or threatened claim, action, suit or proceeding, in
respect of which indemnification may be sought hereunder (whether or not the
indemnified Party is an actual or potential party to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of the indemnified Party from all liability arising out of such claim, action,
suit or proceeding. The provisions of this Section 11.5 shall survive any
termination or expiration of this Agreement, whether by lapse of time or
otherwise, and shall be binding upon the Parties hereto and their respective
successors and assigns.

         XI.6 EXPIRATION OF INDEMNIFICATION. The Parties' indemnification
obligations as set for in Sections 11.3 and 11.4 shall be coterminous with the
indemnity obligations of the Parties as set forth in the Environmental Agreement
and shall automatically expire as set forth therein.

         XI.7 EXCLUSIVE REMEDY. Except for claims arising as a result of fraud
or other intentional misconduct, the indemnification provisions of Sections 11.3
and 11.4 set forth the exclusive remedy under this Agreement for claims arising
thereunder. Each of the Parties hereby waives, to the fullest extent it may
lawfully do so, any other rights, causes of action, or remedies or damages that
it might assert against the other in connection with this Agreement and the
transaction contemplated hereby.

         XI.8 BUSINESS PRACTICES. Nothing in this Agreement including good faith
obligations shall be construed to require Seller or any of its affiliates to
change or modify current business practices of Seller and/or its affiliates.

         XI.9 CONFIDENTIALITY.

              (a) From the date hereof until the third anniversary of the
         later to occur of the Closing Date or the termination of this
         Agreement, each of Purchaser, the Company, and Seller will refrain, and
         will cause its respective officers, directors, employees, agents, and
         other representatives to refrain, from disclosing to any other person
         any confidential documents or confidential information concerning any
         other Party hereto acquired by it in connection with this Agreement or
         concerning the transactions contemplated hereby unless (i) such
         disclosure is compelled by judicial or administrative process or by
         other requirements of law (including, without limitation, in connection
         with obtaining necessary insurance regulatory approvals or to
         authorities regulating racing and gaming activities) and notice of such
         disclosure is furnished to such other Party hereto; (ii) any Party
         hereto deems it advisable (upon advice of such Party's legal counsel)
         to disclose any such documents or information in connection with the
         requirements of any securities law; or (iii) such documents or
         information can be shown to have been (A) previously available to the
         Party hereto receiving such documents or information on a
         non-confidential basis, provided that the source of such information
         was not known by such Party, after reasonable investigation, to be
         bound by any obligation of confidentiality to any Party with respect to
         such material, (B) generally available to the public through no fault
         of such receiving Party, or (C) later acquired by such receiving Party
         on a non-confidential basis, provided that the source of such
         information was not known by such Party, after reasonable
         investigation, to be bound by any obligation of confidentiality to the
         Party with respect to such material.

              (b) The Parties hereto acknowledge and agree that (i) a breach
         of any of the terms or provisions of this Section 11.9 would cause
         irreparable damage to the non-breaching Party for which adequate remedy
         at law is not available; and (ii) the non-breaching Party will be
         entitled as a matter of right to obtain, without posting any bond
         whatsoever, an injunction, restraining order, or other equitable relief
         to restrain any threatened or further breach of this Section 11.9.

              (c) In the event this Agreement is terminated and does not
         proceed to a Closing, then upon the written request of the other Party,
         each Party will promptly return to the other Party or destroy any
         confidential information in its possession and certify in writing to
         such other Party that it has done so.

         XI.10 ENTIRE AGREEMENT. This Agreement, by and between Seller and
Purchaser, constitutes the entire agreement and understanding between the
parties hereto and supersedes all prior agreements, arrangements and
understandings relating to the subject matter hereof.

         XI.11 PARTIES BOUND. The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective heirs, legal
representatives, successors and assigns of the parties hereto. Nothing in this
Agreement, express or implied, is intended to confer upon any person, other than
the parties hereto, and their respective successors and assigns, any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

         XI.12 GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Texas, and is performable by the
parties in Cameron County, Texas.

         XI.13 SEVERABILITY. Should any phrase, clause, sentence or section of
this Agreement be judicially declared to be invalid, unenforceable or void, such
decision will not have the effect of invalidating or voiding the remainder of
this Agreement, and such part of this Agreement will be deemed to have been
stricken and the remainder of this Agreement will have the same force and effect
as if such part or parts had never been included herein.

         XI.14 MULTIPLE COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original, but all
of which together shall constitute one and the same instrument.

         XI.15 FURTHER ASSURANCES. Upon Purchaser's request at any time and
without further consideration, Seller agrees to execute and deliver such
additional instruments of transfer and to take such other action as Purchaser
reasonably may require to more effectively transfer to and vest in Purchaser the
full and complete ownership of the Shares as contemplated herein.

         XI.16 ATTORNEYS' FEES. If it shall be necessary for any Party herein to
employ an attorney to enforce their rights pursuant to this Agreement because of
default of any other Party, the defaulting Party shall reimburse the
nondefaulting Party for reasonable attorneys' fees.

         XI.17 GENDER AND NUMBER. Words of any gender used in this Agreement
shall be held and construed to include any other gender, and words in the
singular number shall be held to include the plural and vice versa, unless the
context otherwise requires.

         XI.18 CAPTIONS. The captions used in connection with the Paragraphs of
this Agreement are for convenience only and shall not be deemed to enlarge,
limit or otherwise modify the meaning of the language of this Agreement.

         XI.19 WAIVER. No waiver by the parties hereto of any default or breach
of any term, condition or covenant of this Agreement shall be deemed to be a
waiver of any other breach of the same or any other term, condition, or covenant
contained herein.

         XI.20 AMENDMENT. No amendment, modification, or alteration of the terms
hereof shall be binding unless the same be in writing, dated subsequent to the
date hereof and duly executed by the parties hereto.

         XI.21 EFFECTIVE DATE. All time limits provided for herein which are
measured by the number of days "from the date hereof" or "from the date of
execution of this Agreement" (rather than being designated by specific date)
shall run from the date of this Agreement as first set forth above, which date
is sometimes referred to herein as the "effective date" or the "date of
execution."

PURCHASER:                                       SELLER:

SAM HOUSTON RACE PARK, LTD.                      LADBROKE RACING CORPORATION
By:      SHRP General Partner, Inc.,
         Its Managing General Partner

         By:   /S/ JAMES D. NOTEWARE             /S/ JOHN M. SWIATEK
         Name:  James D. Noteware                John M. Swiatek,
         As its:  President                      President

                                     JOINDER

         Ladbroke Hotels U.S.A. Corporation, a Delaware corporation
("Guarantor"), hereby enters into this Agreement for the limited purpose of
providing security for the obligations of Seller hereunder.

         Guarantor hereby unconditionally guarantees the payment obligations of
Seller pursuant to this Agreement, including Seller's indemnification
obligations and obligations under the representations and warranties of the
Agreement. Guarantor represents and warrants that, as of the date of execution
of this Agreement and up to and including the date of the Closing that it is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware. Guarantor has the requisite corporate power and
authority to carry on its business as now being conducted and to execute and
deliver and perform its obligations under this Agreement. To Guarantor's
knowledge, Guarantor has taken all corporate action necessary to authorize its
execution and delivery of, and the performance of its obligations under, this
Agreement. This Agreement constitutes a valid obligation of Guarantor that is
legally binding on and enforceable against Guarantor in accordance with its
terms, except as such enforceability may be limited by (i) bankruptcy,
insolvency, moratorium or other similar laws affecting creditors' rights, and
(ii) general principles of equity relating to the availability of equitable
remedies (regardless of whether the Agreement is sought to be enforced in a
proceeding at law or in equity).

         To Guarantor's knowledge, there is no pending proceeding that has been
commenced against Guarantor and that challenges, or may have the effect of
preventing, delaying, making illegal, or otherwise interfering with, any of the
contemplated transactions. To Guarantor's knowledge, no such proceeding has been
threatened.

         To Guarantor's knowledge, neither the execution and delivery of this
Agreement by Guarantor or the performance by Guarantor of its obligations
hereunder nor the consummation of the transactions contemplated hereby, will
result in any of the following: (i) a default or an event that, with notice or
lapse of time, or both, would constitute a default, breach or violation of any
provision of the Articles of Incorporation or Bylaws of Guarantor; or (ii) a
violation or breach of any writ, injunction or decree of any court or
governmental instrumentality applicable to Guarantor or by which any of its
properties is bound or any laws or regulations applicable to Guarantor, where
the violation would have a material adverse effect on Guarantor.

                                   GUARANTOR:

                                   LADBROKE HOTELS U.S.A.  CORPORATION

                                       /S/ PAUL LIERMAN
                                        Paul Lierman

Vice President & Secretary

                                   EXHIBIT "A"

                              PROPERTY DESCRIPTION

                                  EXHIBIT "A-1"

                                PERSONAL PROPERTY

                                   EXHIBIT "B"

                              PERMITTED EXCEPTIONS

                                   EXHIBIT "C"

                             ENVIRONMENTAL AGREEMENT

                                   EXHIBIT "D"

                            GREYHOUND RACING LICENSE

                                   SCHEDULE 1

                       FRANCHISES, LICENSES, PERMITS ETC.

1.       The Applications of Valley Racing Association and Lone Star Greyhound
         Park, Inc. for a Pari-Mutuel Greyhound Race Track License for Cameron
         County, Texas and Order by the Texas Racing Commission granting license
         to Valley Racing Association on July 11, 1989.

                                   SCHEDULE 2

                           LITIGATION AND ARBITRATION

1.       Cause No. 99-11-4702-D, SHRP Valley, LLC v. Ladbroke Racing
         Corporation, Ladbroke Racing Texas Corporation, Ladbroke Racing
         Management Texas Corporation, Valley Racing Association, and Valley
         Group, Inc., In the District Court of Cameron County, Texas, 103rd
         Judicial District. SHRP Valley LLC ("SHRP") sought a temporary
         restraining order and preliminary and permanent injunction against
         Ladbroke Racing Corporation, Ladbroke Racing Texas Corporation
         ("LRTC"), Ladbroke Racing Management Texas Corporation, Valley Racing
         Association, and Valley Group, Inc. to stop their efforts to sell the
         stock of LRTC to any entity other than SHRP. This case is active.

2.       Cause No. H95-0635, Hamstein Music Company, Jay Livingston Music, Frank
         Music Corp., Gladys Music, Jerry Leiber Music, Mike Stoller Music, and
         Polygram International Publishing, Inc. v. Valley Racing Association,
         Valley Group, Inc., Ladbroke Racing Texas Corporation, Thomas E.
         Winters, Fausto Yturria, Jr., Gary W. Calfee, John Long and John Ford,
         In the United States District Court for the Southern District of Texas,
         Houston Division. Valley Racing Association, Valley Group, Inc.,
         Ladbroke Racing Texas Corporation, Thomas E. Winters, Fausto Yturria,
         Gary Calfee, John Long and John Ford were collectively sued by Authors
         and Publishers ("ASCAP") et. al. relative to music being played at the
         track without the appropriate programming license and payment of the
         applicable fees. The case was settled on about November 1996 by payment
         of $33,000 to ASCAP in exchange for full and final releases and
         dismissal of the case with prejudice.

3.       Cause No. 94-09089, Texas Greyhound Association v. Texas Racing
         Commission, Corpus Christi Greyhound Racetrack, Valley Greyhound Park,
         A.L. Mangham, Jr., Deorsey E. McGruder, Jr., Patricia Pangburn, John
         Sharp and Ronald D. Krist, In the District Court of Travis County,
         Texas, 345th Judicial District. The Texas Racing Commission, Valley
         Racing Association, Corpus Christi Greyhound Racetrack, A.L. Mangham,
         Jr., Deorsey E. McGruder, Jr., Patricia Pangburn, John Sharp and Ronald
         Krist were collectively sued by The Texas Greyhound Association, which
         was seeking a declaratory judgment on minimum purse amounts for
         simulcast races. The case was dismissed for want of prosecution in
         August of 1997.

4.       Cause No. 93-11-6403-D, Pascual Moblia v. Valley Greyhound Park, a/k/a
         Valley Racing Association, Fausto Yturria, individually and as an owner
         of Valley Greyhound Park, a/k/a Valley Racing Association, Terry
         Ashcraft individually and as an employee of Valley Greyhound Park,
         a/k/a Valley Racing Association, and William McLaughlin individually
         and as an employee of Valley Greyhound Park, a/k/a Valley Racing,
         Association, In the District Court of Cameron County, Texas, 103rd
         Judicial District. This case was settled.

5.       TxRC Docket No. 98-R4-04, In the Matter of Valley Racing Association,
         Before the Texas Racing Commission. The Texas Racing Commission
         initiated an administrative action in October 1998 for revocation of
         license due to unpaid fees. This action was dismissed in November 1998
         after payment of the fees.

                                   SCHEDULE 3

                         OBLIGATIONS TO FORMER EMPLOYEES

                                      None.

                                   SCHEDULE 4

                                  BANK ACCOUNTS

                                      None.

                                   SCHEDULE 5

                   TRADEMARKS, COPYRIGHTS ASSUMED NAMES, ETC.

                                     None.

                                   SCHEDULE 6

                               GOVERNMENT REPORTS

                                      None.

                                   SCHEDULE 7

                                   TAX RETURNS

1.       Valley Racing Association Joint Venture Form 1065 U.S. Partnership
         Return of Income, 1992.

2.       Valley Racing Association Joint Venture Form 1065 U.S. Partnership
         Return of Income, 1993.

3.       Valley Racing Association Joint Venture Form 1065 U.S. Partnership
         Return of Income, 1994.

4.       Ladbroke Racing Texas, Inc. Form 1120 U.S. Corporation Income Tax
         Return 1995.

5.       Ladbroke Racing Texas, Inc. Form 1120 U.S. Corporation Income Tax
         Return 1996.

6.       Ladbroke Racing Texas, Inc. Form 1120 U.S. Corporation Income Tax
         Return 1997.

7.       Ladbroke Racing Texas, Inc. Form 1120 U.S. Corporation Income Tax
         Return 1998.

8.       Ladbroke Racing Texas, Inc. Form 1120 U.S. Corporation Income Tax
         Return, 1999(to be provided when filed)

9.       Ladbroke Racing Texas Corporation Texas Corporation Franchise Tax
         Report, 1995.

10.      Ladbroke Racing Texas, Inc. Texas Corporation Franchise Tax Report,
         1996.

11.      Ladbroke Racing Texas Corporation Texas Corporation Franchise Tax
         Report, 1997.

12.      Ladbroke Racing Texas Corporation Texas Annual Franchise Information
         Report, 1998.

13.      Ladbroke Racing Texas Corporation Texas Annual Franchise Information
         Report, 1999.

14.      Valley Racing Association Form 941 Employer's Quarterly Federal Tax
         Return, 1995.

15.      Valley Racing Association Form 945 Annual Return of Withheld Federal
         Income Tax, 1995.

16.      Valley Racing Association Form 945 Annual Return of Withheld Federal
         Income Tax, 1996.

                                   SCHEDULE 8

                                STOCK INFORMATION

Name of Owner:                              Ladbroke Racing Texas Corporation
State of Incorporation:                     Texas

Class of Stock:                             Common
No. of Shares of Stock Issued:              1,000
No. of Shares of Stock Outstanding:         0
No. of Shares of Stock Authorized:          10,000

Name of Stock Holder(s):                    Ladbroke Racing Corporation

                                   SCHEDULE 9

                              FINANCIAL STATEMENTS

1.       Valley Racing Association Financial Statements and Report of
         Independent Certified Public Accountants, December 31, 1994 and 1993.

2.       Valley Racing Association Financial Statements and Report of
         Independent Certified Public Accountants, December 31, 1993 and 1992.

3.       Valley Racing Association Financial Statements and Report of
         Independent Certified Public Accountants, December 31, 1992 and 1991.

4.       Ladbroke Racing Texas Corporation Internal Financial Statement for
         Calendar Year 1995.*

5.       Ladbroke Racing Texas Corporation Internal Financial Statement for
         Calendar Year 1996.*

6.       Ladbroke Racing Texas Corporation Internal Financial Statement for
         Calendar Year 1997.*

7.       Ladbroke Racing Texas Corporation Internal Financial Statement for
         Calendar Year 1998.*

8.       Ladbroke Racing Texas Corporation Internal Financial Statement for
         Calendar Year 1999.**

[FN]

*  To be delivered within five (5) days of closing.
** To be delivered within five (5) days of Closing and to show no
   liability other than liabilities to be paid at or prior to Closing by
   Seller.
</FN>

                                   SCHEDULE 10

                               WRITTEN AGREEMENTS

1.       Lease Agreement, between Valley Racing Association and SHRP Valley LLC,
         effective as of March 3, 1999.

2.       Management Agreement, entered into by and between Valley Racing
         Association and SHRP Valley LLC, on March 3, 1999.

3.       Pledge Agreement, made by Ladbroke Racing Corporation to SHRP Valley
         LLC, dated March 3, 1999.

                                   SCHEDULE 11

                  ALLOCATION OF PURCHASE PRICE AMONG THE ASSETS

                                   SCHEDULE 12

                              LIENS TO BE RELEASED

1.       Deed of Trust dated April 11, 1991, recorded in Volume 1517, Page 99 of
         the Official Records of Cameron County, Texas, executed by Valley
         Racing Association, a Texas joint venture, to Ted A. Hodges, Trustee,
         and all terms, conditions and stipulations contained therein, including
         any additional indebtedness secured thereby, securing one promissory
         note of even date therewith in the principal amount of $15,135,000.00,
         payable to Allied Irish Banks FLC.

2.       Said lien has been extended and/or modified by instrument recorded in
         Volume 2859, Page 170 of the Official Records of Cameron County, Texas.

3.       Said lien has been extended and/or modified by instrument recorded in
         Volume 2997, Page 160 of the Official Records of Cameron County, Texas.

4.       Deed of Trust dated June 27, 1991, recorded in Volume 1611, Page 99 of
         the Official Records of Cameron County, Texas, executed by Valley
         Racing Association, a Texas joint venture, to Steven M. Bowers,
         Trustee, and all terms, conditions and stipulations contained therein,
         including any additional indebtedness secured thereby, securing two
         promissory notes of even date therewith in the principal amounts of
         $1,000,000.00 and $350,000.00, payable to Ladbroke Racing Corporation.

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