Document:

Exhibit 10.30

A G R E E M E N T

THIS AGREEMENT, made and entered into this 16th day
December 2006 by and between MOUNTAINEER
PARK, INC. (hereinafter referred to as “Track”), which is licensed
by the West Virginia Racing Commission to conduct thoroughbred racing at the
Mountaineer Race Trace and Gaming Resort (hereinafter referred to as “Mountaineer
Park”), and MOUNTAINEER PARK HORSEMEN’S
BENEVOLENT AND PROTECTIVE ASSOCIATION, INC. (hereinafter referred to
as “HBPA”).

WITNESSETH:

WHEREAS, it is the mutual intent and purpose of the
above parties to set forth the basic agreement covering purse structure and
other matters of mutual interest and concern and to comply with West Virginia
statutory requirements for a contract; and

WHEREAS, the parties recognize the need for defining
and describing the business relationship between Track and HBPA so that they
may direct the business of thoroughbred horse racing at Mountaineer Park in the
best interest of all parties concerned.

NOW, THEREFORE, in consideration of the benefits and
advantages accruing to each of the parties hereto, do by these presents hereby
agree, bind and obligate themselves to each other as follows, to-wit:

 1
 

ARTICLE I

Definitions

1.             The
term “purse schedule” shall mean the total daily distribution for all races
scheduled and conducted.

2.             The
term “purse schedule distribution” shall mean the amount allocated for each and
every race based upon age, class, distance and type of race.

ARTICLE II

HBPA Exclusive Bargaining Agent

1.             Exclusive Representation.  The Mountaineer HBPA is currently recognized
by the West Virginia Racing Commission and the Racing Association to be the
duly qualified and exclusive representative of the majority of the owners and
trainers of live thoroughbred horse racing, within the meaning of the
Interstate Horseracing Act (15 U.S.C. § 3001, et seq.)
(the “Act”).  The Racing Association
shall only negotiate with the exclusive bargaining agent or representative of
the Mountaineer HBPA.  Any negotiation or
discussion of the terms and provisions of this Agreement, or any amendment
thereto, or any Agreement which shall supersede the terms and provisions of
this Agreement with any person, or entity or representative of an entity that
is not the exclusive 

 2
 

bargaining agent or representative of the
Mountaineer HBPA shall constitute a breach of this Agreement, provided that at
such time the Mountaineer HBPA remains the duly qualified and exclusive
representative of the majority of the owners and trainers of horses at
Mountaineer Racetrack.  Furthermore, the
Racing Association shall not insert any term or provision which conflicts with
the Mountaineer HBPA’s exclusive representation of owners and trainers of live
thoroughbred racing into any contract or agreement arising out of the use of
the Racing Association’s facilities and/or participation in the live horse
races conducted at the Racing Association

The Racing Association agrees that it shall
negotiate with and conduct any and all business which is the subject of this
Agreement and any matters reasonably related to any provisions of this
Agreement with the duly elected officers of the Mountaineer HBPA or their duly
designated representatives.

The HBPA agrees that it shall provide to the Racing
Association, in writing, on an annual basis, the names and addresses of each
duly elected member of the Mountaineer HBPA Board of Directors, the names and
addresses of each duly elected officer of the Mountaineer HBPA, and the names
and addresses of each representative duly designated by the Board of Directors
of the Mountaineer HBPA, who shall have the authority to negotiate with the
Racing Association.

HBPA promises that it will exercise any and all
authority to require its members to comply, when possible, with the intent and
terms of this Agreement.

 3
 

ARTICLE III

Racing
Schedule

1.             During
the term of this Agreement, Track shall each year use its best efforts to
conduct racing for 232 days and periodically provide schedules to the HBPA, it
being understood that (a) Track shall not be in breach of this Agreement so
long as it requests a license from the West Virginia Racing Commission to
conduct racing, and in fact conducts racing, for not less than the minimum
number of days required by the West Virginia racing statute, which is currently
210  HBPA acknowledges that Track,
consistent with its best efforts commitment, would not be expected to conduct
racing on more than six (6) days in a calendar week and may cancel racing days
based on inclement weather, unavailability of horses or jockeys, and economic factors,
including but not limited to average daily export handle for any calendar
quarter falling below levels indicated on the following table:

 

	
  

  	
   

  	
  Race Days

  225 or fewer

  	
   

  	
  Race Days

  226 or more

  	
   

  
	
  2007

  	
   

  	
  $

  	
  1,300,000

  	
   

  	
  $

  	
  1,600,000

  	
   

  
	
  2008

  	
   

  	
  $

  	
  1,365,000

  	
   

  	
  $

  	
  1,680,000

  	
   

  
	
  2009

  	
   

  	
  $

  	
  1,433,250

  	
   

  	
  $

  	
  1,764,000

  	
   

  

 

 4
 

Within seven (7) days of cancellation of a race day,
Track shall reschedule such race day and provide notice to HBPA of the
rescheduled dates to the extent necessary to achieve the minimum number of days
required by the West Virginia racing statute. 
Track agrees, subject to availability of horses, to program no less than
ten (10) races per day for not less than eight months per year and not less
than nine (9) races per day for the remaining months of the year.

2.             Track
agrees that it will not discontinue racing for a period of more than one (1)
three (3) week period in any calendar year, unless agreed upon by the HBPA,
except in the event of an act of God or other catastrophe, or conditions beyond
the foreseeable control of Track.

ARTICLE IV

Minimum Purse and Purse Scheduling

1.             The
daily minimum purse schedule payable by Track during the term of this Agreement
shall be One Hundred Twenty-Five Thousand Dollars ($125,000.00) per day except
as provided herein below.  It is mutually
agreed that, as far as possible and consistent with the foregoing, the
principle of “better purse for better horses” shall be followed in establishing
the purse payable for any one race. 
Track further agrees that, if necessary, better purses will be reduced
to maintain minimum purse schedules. 
Track may increase or decrease the purse schedule in effect as of
January 1 of each year by up to 20% during any calendar year.  The daily purse schedule as of January 1,
2007 is deemed to be $160,000.  Any
increase or decrease in purse schedule in excess of 20% during any calendar
year shall be subject to the approval of HBPA.

 5
 

2.             Track will establish and publish a purse schedule
distribution, which shall show the purse schedule distribution planned for
various classes of horses at various distances. 
Such schedule shall be updated as necessary.  Said schedule with any amendments thereto
shall be posted in the Racing Secretary’s office.  In the event of a purse schedule distribution
decrease, the purses for bottom claiming races shall not be reduced unless the
purses for all races are also reduced (though not necessarily by the same
percentage, if the decreased percentage difference from the top to the bottom
is more than 5% it will require HBPA approval (excluding stakes races).  In the event of a purse schedule distribution
increase, the purses for all races shall be increased (though not necessarily
by the same percentage.  If the increased
percentage difference from the top to the bottom is more than 5%, it will
require HBPA approval. (Excluding stake races)

(a)           At
such time as the Underpayment Money reaches Two Hundred Thousand Dollars
($200,000) or below, Track and HBPA shall negotiate to decrease the daily purse
distribution in an attempt to avoid an overpayment.

3.             Purses
for Stakes races shall not exceed, in the aggregate, 8% of the total purses
paid, from the purse account, in the immediately preceding calendar year
excluding the amounts paid for stake races and amounts received for sponsorship
of races unless otherwise authorized by HBPA. Track shall determine the number
of and purses for stake races and submit the stakes schedule to HBPA for
written comment.

 6
 

4.             Track
agrees to pay purses back through not less than eight (8) places.

5.             It
is understood by both parties that purse schedules shall not be in conflict
with the rules of racing of the West Virginia Racing Commission as presently
constituted or amended.

ARTICLE V

Purse Funds

1.             During
the term of this Agreement, Track shall pay purse monies:

(a)           as
provided by state law; and

(b)           any
additional percentage of the mutuel handle which may be legislated and
incorporated into the West Virginia Code during the period of this Agreement,
if specifically legislated for purses.

2.             In
the event any Underpayment Money exists in the purse schedule at the end of any
calendar year, then said Underpayment Money shall be added to the sum payable
in purses for the next succeeding year.

3.             This
is an agreement regarding the proceeds from video lottery terminals as provided
in West Virginia Code 29-22A-7(a)(6)

 7
 

ARTICLE VI

Revenue from Off-Track Betting and Telephone
Wagering

1.             In
the event the Track, HBPA or horsemen receive additional revenue or payments
from telephone wagering from whatever source derived, whether as a result of
legislation, by contract and/or modification of the rules of the West Virginia
Racing Commission, fifty percent (50%) of the telephone wagering adjusted net
revenues shall be retained by the Track and fifty percent (50%) shall be
allocated to purses.

2.             Revenue
from live, export and import wagering will be distributed in accordance with
West Virginia Code.

3.             Revenue from Video Lottery
Terminals will be distributed in accordance with West Virginia Code.

ARTICLE VII

Condition Book

1.             HBPA
represents that it has created a Condition Book Committee to consult with
horsemen concerning the conditions of racing and to make known to Track the
results of their consultations.  Track
agrees that this Committee shall have the right to meet with appropriate Track
personnel to discuss and comment on each condition book at least seventy-two
(72) hours before printing in order to permit Committee review, suggestions,
and recommendations.  Track will give due
consideration to the Committee’s suggestions and recommendations.

 8
 

2.             The
Condition Books will provide for bottom claiming prices not to exceed those set
forth in the table below:

 

	
  Jan. — June 30, 2007

  	
   

  	
  $

  	
  5,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  July 1,— December 31,
  2007

  	
   

  	
  $

  	
  5,000

  	
   

  

 

TRACK
RESERVES THE RIGHT TO RAISE THE BOTTOM CLAIMING PRICE TO $6,000 FOR THE YEAR
2008.

ARTICLE VIII

Racing Committee/Arbitration

1.             Track and the HBPA
shall organize and maintain a joint committee (hereinafter the “Racing
Committee”) to address issues related to and associated with live racing at
Mountaineer Race Track.  The HBPA and
Track shall each appoint three (3) representatives to the Racing
Committee.  The Racing Committee shall
have no authority to alter the terms and conditions of this Agreement.

2.             In the event there
is a disagreement between the parties as to whether any party has complied with
the terms or conditions in this Agreement, then Track and the HBPA shall each
choose an Arbitrator and the two Arbitrators shall choose a third Arbitrator.  The Board of Arbitrators shall decide the
issues involved and each party agrees to be bound by the decision of the
arbitrations panel, provided, however, that the arbitrators’ decision shall not
be binding on the parties with respect to matters of Federal law.”

 9
 

ARTICLE IX

Stalls

1.             It
is recognized by both parties that effective stall utilization is important to
Track management and that equitable allocation is essential to the livelihood
of horsemen.

2.             Track
shall not discriminate in the allocation of stalls by reason of HBPA membership
or activity or condone its representatives or employees discriminating in the
allocation of stalls.

3.             Track
shall make every effort to provide horsemen with fifteen (15) days prior notice
of the acceptance or rejection of stall applications and may demand immediate
confirmation from the horsemen of their intent to use allotted stalls.

4.             A
Stall Committee consisting of a Director of Racing, Racing Secretary, and
Association Steward shall hear any disputes regarding allocation of stalls.

5.             Upon
seven (7) days prior notice, Track shall have the right to take from any
horsemen any stall that management believes in good faith is not being used for
racing purposes.

 10
 

6.             Track
shall permit accepted horsemen to use the stalls at its racetrack barns and
other facilities as they exist on the date hereof for training purposes without
charge for horses qualified to race at Mountaineer Park.

7.             Track
agrees to provide stall and shed row area with proper fill within a reasonable
time period, upon written request of HBPA.

8.             Any change in
present stall application form that affects horse or trainer eligibility for
stalls shall be approved by HBPA.

ARTICLE X

Barn Area

1.             Barn
area will be available to horsemen at all times and the racetrack will be
available to horsemen during scheduled training times (including scheduled
training times during the period racing is discontinued).

2.             HBPA recognizes an obligation of
horsemen and backside personnel to maintain the stable area in a sanitary
condition, free from litter and other foreign objects.  HBPA will use its best efforts to ensure that
horsemen and their employees fulfill their obligations in this regard. Track
retains its right to discipline (including removal) horsemen or their employees
who fail to obey Track’s published rules and regulations.

3.             Track
shall maintain all barn area restroom facilities in a safe and healthy
environment.

 11
 

4.             During
winter months, Track agrees to maintain both main roads leading to and from the
racetrack, between all barns and all horsemen parking lots, for both training
and racing purposes.  These roads are
designated as the road going past the rec hall/kitchen and the other road
leading from the stable gate.  Reasonable
efforts before 7:00 a.m. will be made to keep these areas salted and ice-free
so as not to be hazardous to horses or backside personnel.  Track further agrees to make necessary
repairs to the backside and stall areas as deemed necessary from the monthly
inspection conducted.

ARTICLE XI

Racing Surfaces

1.             The
Track Surface Committee consisting of two horsemen, two jockeys, (appointed by
their respective associations), the track superintendent, a representative of
the Racing Commission, the State veterinarian, a steward, and a representative
of Track shall meet pursuant to a published schedule to assess track surface
conditions and agree to any actions to be taken with respect to maintenance of
the racing surface.  Track shall maintain
the Track in accordance with the reasonable direction of the Track Surface
Committee.

2.             Trainers shall, at
reasonable times and upon reasonable notice to the office of the Director of
Racing, have the right to enter onto the track for the purpose of determining
the safety of the racing surface.

 12
 

ARTICLE XII

Paddock

HBPA may contract with a paddock blacksmith who
shall not be deemed an employee of Track or HBPA but an independent contractor,
to be available in the paddock for each race on each and every race day.  Track shall reimburse HBPA for the cost of
the blacksmith in an amount not to exceed $100 per live racing day

ARTICLE
XIII

Fire and Liability Insurance

Track shall pay to HBPA annually, on or before May
15th of each year during the term of this Agreement, the actual cost of the
HBPA’s proportional assessment of a policy of fire and hazard insurance
(maintained by the national HBPA)covering horses and tack belonging to
horsemen.

Because of this payment for the Fire and Disaster
Insurance Plan, the Mountaineer HBPA shall indemnify and hold Racing Association
harmless from and against any damage, loss, action, judgment, cost or expense
(including reasonable attorneys’ fees) resulting from any claim, demand or
cause of action made or brought by a Horsemen for any loss covered by the Fire
and Disaster Insurance Plan.

 13

ARTICLE XIV

Dead Horse Removal

The cost of removing dead horses resulting from
track-related injuries shall be paid by the Track.  The cost of removing dead horses resulting
from non-track-related injuries shall be paid by one half by HBPA and one half
by Track.

ARTICLE XV

No Monopoly on Goods and Services

Track shall not establish or impose upon horsemen a
monopoly, restriction or requirement regarding the use of blacksmiths, feed
men, track supplier, veterinarians or other services customarily used by horsemen.  Track will permit any supplier of commodities
or services to enter the stable area; provided, however, that such supplier of
services or commodities has received a clearance from management and the West
Virginia Racing Commission, which will authorize admission to the stable
area.  Track agrees not to unreasonably
withhold said clearance.  Any owner or
trainer stabled on grounds will be permitted at any time to haul in hay or
grain for his own use only.

 14
 

ARTICLE XVI

Personnel Identification

Track shall bear all expenses incurred for the
preparation of the identification badges to be worn by backstretch personnel on
a first issue.  All lost badges shall be
paid for by the individual who loses the badge.

ARTICLE
XVII

Tattooing of Horses

The cost of lip tattooing shall be borne by the
owners or trainers of the horse being tattooed and not by the Track or HBPA.

ARTICLE
XVIII

HBPA Amenities

1.             Track
shall provide a business office for the duly elected representatives and
officers of HBPA.

2.             Track
shall provide temporary front-side parking consisting of sixty-eight (68)
spaces designated for trainers only.

3.             Track
shall provide adequate parking, admission passes and courtesies for horsemen.

4.             Track
shall provide to HBPA two hundred twenty five (225) each racing day during the
week and two hundred fifty (250) on each racing day that falls on a Saturday or
Sunday.

5.             Track
shall provide fifty (50) parking spaces for owners.

 15
 

ARTICLE XIX

Horsemen’s Bookkeeper

A Horsemen’s Bookkeeper shall be employed by the Track
and shall be subject to the policies generally applicable to Track’s
employees.  The Horsemen’s Bookkeeper
shall perform those functions set forth from time to time by statute, and Track
shall provide such equipment as shall be reasonably necessary for the
performance of the Horsemen’s Bookkeeper’s statutory duties.

ARTICLE XX

Horsemen’s Bookkeeper Account

The following accounts shall be maintained by the
Horsemen’s Bookkeeper in the same bank in which such accounts are currently
maintained, so long as such bank’s fees for services remain competitive with
other banks in West Virginia:

First Account - “Horsemen’s Daily Account” —The Horsemen’s
bookkeeper shall establish a checking account into which the following shall be
deposited: (a) purse money, stake fees; (b) any owner or trainer deposits; and
(c) all moneys received as a result of claims made by horsemen or owners in
connection with the races.  All of the
funds in this account are recognized as being the sole property of the
horsemen, jockeys, etc., as reflected by the records maintained by the Horsemen’s
Bookkeeper.  Track agrees to deposit to
the Horsemen’s Daily Account each day the full amount due owners for purses
earned that day.  Track agrees to deposit
all other Horsemen’s Bookkeeper Account deposits (i.e., claims, etc.) a minimum
of once per week to the Horsemen’s Daily Account.  All interest earned on this account will be
considered the sole property of HBPA.

 16
 

Second Account - “Horsemen’s Reserve Account”—The Horsemen’s
bookkeeper shall establish and maintain a reserve account into which all
Underpayment Money (described above) shall be deposited.  All of said Underpayment Money shall be used
for purses.  In light of the fact that
prior to the running of a race and the transfer of funds from the Reserve
Account to the Horsemen’s Daily Account, the Underpayment Money is not due and
payable to the horsemen, All interest earned on this Underpayment Money shall
be considered the sole property of Track to the extent permitted by law.

ARTICLE XXI

HBPA Administrative Fund

Track agrees to pay to HBPA during the term of this
Agreement an amount equal to one-half percent (1⁄2%) of the total amount
distributed for purses.  Said sums shall
be deemed as purse money but shall not be withheld or deducted from any single
purse, but deducted from the percent allocated to purses by the State.  The sums due HBPA shall be paid by the end of
each month.

 17
 

ARTICLE
XXII

Security

Track agrees to provide and maintain reasonable
security at its main gate and such other gates providing ingress and egress to
its stable areas.

ARTICLE
XXIII

Starting Gate

1.             Track
agrees to provide a minimum of ten (10) assistant starters for each and every
race and on each and every race day.

ARTICLE
XXIV

Daily Meeting Figures

The pari-mutuel handle and purse distribution
figures as well as the percentage figures which represent the relationship
between purses and the total of pari-mutuel handle, shall be given to the HBPA
office each day of a race meet in progress.

ARTICLE XXV

Valuable Property Right

Track recognizes that the horses and participants in
races and related events occurring prior or subsequent to the running of a race
are valuable property rights belonging to the owners and trainers, and the
Track will not produce or exhibit still or motion pictures, videotapes, radio
or television programs, or authorize or license others to make or exhibit
motion pictures or 

 18
 

television programs of any of said events without prior consultation
and written agreement of the HBPA, it being understood, however, that (i) Track
may use such depictions for the promotion of Track’s business; and (ii) this
provision is not intended to affect the simulcasting, which is governed in all
respects by the parties’ separate agreement of this date concerning simulcasting.

ARTICLE
XXVI

Invalidity of any Part of this Agreement

In the event any provision, item or clause of this
Agreement or the application thereof is held invalid, such invalidity shall not
effect the remaining provisions, items or clauses or application of this
Agreement, and, to this end, it is agreed by the parties that this Agreement is
severable.

ARTICLE
XXVII

Simulcasting

Simulcasting at the Track shall be governed by the
West Virginia statutes and the Federal Interstate Horse Racing Act of
1978.  A Simulcasting Agreement and site
approval executed simultaneously with this Agreement shall be a part of this
Agreement (Exhibit A).  To the extent
there is a conflict between this Agreement and the Simulcasting Agreement with
respect to matters relating to live racing, then the terms of this Agreement
shall control.

 19
 

ARTICLE
XXVIII

Term

The term of this Agreement shall commence January 1,
2007, and shall terminate on December 31, 2009. 
However, this Agreement is binding only during the periods during which
the Track is permitted to operate permitted activities as defined in the
Racetrack Video Lottery Act of 1994 as amended.

ARTICLE XXIX

Integration

This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter contained herein
and supersedes any prior agreements between the parties hereto either oral or
written.

WITNESS the following signatures:

 

	
  MOUNTAINEER PARK, INC.

  	
   

  	
  MOUNTAINEER PARK HORSEMEN’S BENEVOLENT AND
  PROTECTIVE ASSOCIATION, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Rose Mary Williams

  	
   

  	
  /s/ Charles E. Bailey

  
	
  By:

  	
   

  	
  Rose Mary Williams

  	
   

  	
  By:

  	
   

  	
  Charles E. Bailey

  
	
  Its:

  	
   

  	
  Director of Racing

  	
   

  	
  Its:

  	
   

  	
   

  

 

 20Exhibit 10.31

Presque Isle Downs Live Racing Agreement

THIS AGREEMENT, made and entered
into this the 22nd day of February, 2007 by and between Presque
Isle Downs Inc., hereinafter “Racing Association,” and the Pennsylvania
Horsemen’s Benevolent and Protective Association Inc., a Pennsylvania
not-for-profit corporation, hereinafter “PA HBPA.”

WHEREAS, the PA HBPA is a trade
organization composed of owners and trainers (hereinafter the PA HBPA “Members”)
of thoroughbred race horses; and

WHEREAS, the PA HBPA provides
benevolent programs and other services for its members and their employees who
are engaged in live thoroughbred racing at the Racing Association; and

WHEREAS, the Racing Association
is licensed by the Pennsylvania State Horse Racing Commission (hereinafter
PSHRC), pursuant to Act 135 of 1981, to conduct live thoroughbred horse racing
with pari-mutuel waging and, in accordance with that licensure, Racing
Association owns and is constructing and intends to operate a thoroughbred
racing facility under the trade name Presque Isle Downs Inc. (hereinafter also
referred to as the “Racing Association”); and

WHEREAS, the parties hereto
reaffirm their support for quality live thoroughbred racing activities and
reaffirm their desire to the promotion of such activities in the State of
Pennsylvania; and

WHEREAS, the parties hereto
desire to memorialize and set forth in writing the contractual agreements by
and between the Racing Association and the PA HBPA concerning live thoroughbred
racing at the Racetrack.

NOW,
THEREFORE, in consideration of the promises and mutual
covenants contained herein, the parties desire to be legally bound, do agree as
follows:

1.                                       Definitions.

a.               “Exported Simulcast
Signals” — shall mean a simultaneous audio-visual and data transmission of live
horse race sent from a host facility to a guest facility located either in the
same state or a foreign state.

b.              “Imported Simulcast
Signals” — shall mean a simultaneous audio-visual and data transmission of live
horse race received from a host facility by a guest facility located either in
the same state or a foreign.

c.               “Host Facility” —
shall mean any facility where a live horse race is conducted

d.              “Guest Facility” —
shall mean any facility which acquires the non-exclusive right to receive the
simultaneous audio-visual and data signals of a live horse race conducted at a
host facility, and in addition, may accept pari-mutuel wagers, with the right
to commingle said facility’s pari-mutuel pools with and into a host facility’s
pari-mutuel pools.

e.               “Net Commission” —
Handle less amount returned to bettor.

f.                 “Transmission
Cost” — shall mean the cost of uplink services, decoder costs, voice tech, and
interface fees.

2.                                       Term
of Agreement.  This Agreement shall
become effective as of February 22, 2007, and shall remain in full force and
effect, unless sooner terminated as provided herein, until December 31, 2009
(hereinafter “Initial Term”).  This
Agreement shall continue for a further Term of two years without change unless
either party shall, at least ninety days prior to December 31, 2009, or each
successive two-year Term thereafter, give notice to the other of its intention
that this Agreement shall not be automatically renewed pursuant to the
provisions of this paragraph.  In the
event notice of intent not to renew is given by either party, the parties agree
that weekly negotiation sessions shall be held commencing no later than 75 days
prior to the expiration of the Term or successive Term and the parties mutually
agree to bargain in good faith, without waiving rights of either party.

3.                                       Exclusive
Representation.  The PA HBPA is
currently recognized by the PSHRC  to be
the duly qualified and exclusive representative of the majority of the owners
and trainers of live thoroughbred horse racing, within the meaning of the
Interstate Horseracing Act (15 U.S.C. § 3001, et seq.)
(the “Act”).  Therefore, the Racing
Association shall only negotiate with the exclusive bargaining agent or
representative of the PA HBPA.  Any
negotiation or discussion of the terms and provisions of this Agreement, or any
amendment thereto, or any Agreement which shall supersede the terms and
provisions of this Agreement with any person, or entity or representative of an
entity that is not the exclusive bargaining agent or representative of the PA
HBPA shall constitute a breach of this Agreement, provided that at such time
the PA HHBPA remains the duly qualified and exclusive representative of the
majority of the owners and trainers of horses at Presque Isle Downs.  Furthermore, the Racing Association shall not
insert any term or provision which conflicts with the PA HBPA’s exclusive
representation of owners and trainers of live thoroughbred racing into any
contract or agreement arising out of the use of the Racing Association’s facilities
and/or participation in the live horse races conducted at the Racing
Association.

4.                                       Purses
and Stakes.

a.               Minimum Purses.    It is mutually agreed that, as far as
possible and consistent with the foregoing, the principle of “better purses for
better horses” shall be followed in establishing the purse payable for any one
race.  Every effort will be made to have
the same level of purses for the same class of horses throughout each
thoroughbred horse racing meeting during the term hereof. In anticipation of
the commencement of slot machine operations at Presque Isle Downs in February
of 2007 and the accumulation of purse money from the statutory portion of slot
machine revenues from February of 2007 until the commencement of live racing in
September of 2007, and in order to avoid an overpayment, except as provided
below with respect to Stakes Races, the Racing Association and the PA HBPA
agree to pay purses based on the following schedule in the initial year of
operation, 2007, as outlined by the distribution schedule below.

 2
 

 

	
  

  	
  Division Of Purses for 2007

  	
   

  	
   

  
	
  First

  	
   

  	
  —

  	
   

  	
  75%

  	
   

  
	
  Second

  	
   

  	
  —

  	
   

  	
  45%

  	
   

  
	
  Third

  	
   

  	
  —

  	
   

  	
  20%

  	
   

  
	
  Fourth

  	
   

  	
  —

  	
   

  	
  15%

  	
   

  
	
  Fifth

  	
   

  	
  —

  	
   

  	
  10%

  	
   

  
	
  Sixth

  	
   

  	
  —

  	
   

  	
  5%

  	
   

  
	
  Seventh

  	
   

  	
  —

  	
   

  	
  4%

  	
   

  
	
  Eighth

  	
   

  	
  —

  	
   

  	
  2%

  	
   

  
	
  Total

  	
   

  	
  —

  	
   

  	
  175%

  	
   

  
								

 

The parties agree
that if commencement of slot machine operations at Presque Isle Downs is
delayed for any reason, then the parties will renegotiate the distribution
schedule for 2007.

 

	
  

  	
  Division of Purses 2008 forward

  	
   

  	
   

  
	
  First

  	
   

  	
  —

  	
   

  	
  60%

  	
   

  
	
  Second

  	
   

  	
  —

  	
   

  	
  20%

  	
   

  
	
  Third

  	
   

  	
  —

  	
   

  	
  10%

  	
   

  
	
  Fourth

  	
   

  	
  —

  	
   

  	
  5%

  	
   

  
	
  Fifth

  	
   

  	
  —

  	
   

  	
  2.5%

  	
   

  
	
  Sixth

  	
   

  	
  —

  	
   

  	
  1.5%

  	
   

  
	
  Seventh

  	
   

  	
  —

  	
   

  	
  .5%

  	
   

  
	
  Eighth

  	
   

  	
  —

  	
   

  	
  .5%

  	
   

  
	
  Total

  	
   

  	
  —

  	
   

  	
  100%

  	
   

  
								

 

b.               Purse Schedule
Distribution.  The Racing Association
and the PA HBPA will establish and publish a purse schedule distribution, which
shall show the purse distribution planned for various classes of horses at
various distances.  Such schedule shall
be updated as necessary.  Said schedule
with any amendments thereto shall be posted in the Racing Secretary’s office.

c.               Stakes Schedule.  In the initial year of operation, 2007, the
Racing Association and the PA HBPA will agree upon and approve a stakes
schedule for 2007 prior to June 30, 2007. 
In the year 2008 and each subsequent year, purses for stakes races shall
not exceed, in the aggregate, 8% of the total purses paid, from the purse
account, in the immediately preceding calendar year. The PA HBPA reserves the
right to authorize Stake Schedule funding greater than 8% in each year of the
agreement.  The Racing Association shall
determine the number of and purses for stakes races and submit the stakes
schedule to the PA HBPA for written comment prior to submission of the stakes
schedule to the PSHRC.  Stake Races shall
be guaranteed.  The Racing Association
agrees to pay purses for stakes races back through not less than five
places.  It is understood by both parties
that purse schedules shall not be in conflict with the rules of racing of the
PSHRC as presently constituted or as may be amended.

 3
 

d.              Purse Funds.  During the term of this Agreement, the Racing
Association and the PA HBPA shall allocate and pay purse moneys as provided by
this agreement, including any additional percentage of the pari-mutual handle
which may be legislated and incorporated into the PA Race Horse Industry Reform
Act statute during the period of this Agreement, if specifically legislated for
purses.  In the event Presque Isle Downs
commences slot machine operations prior to the first live race meet, then all
amounts from such slot machine operations that are required to be contributed
to racing purses will be placed in an account for the benefit of purses in
accordance with the laws and regulations of the Pennsylvania Gaming Control
Board.  In all cases, revenue from slot
machine operations shall be allocated in the manner set forth in the Race Horse
Development and Gaming Act of 2004.

i.      Underpayment of Purses.  Unless otherwise required by law, any
underpayment of purses to the horsemen during the term of this agreement will
be distributed during the next ensuing thoroughbred horse racing meeting.

e.               Overpayment of
Purses.  The Racing Association and
the PA HBPA agree to cooperate to the fullest extent possible to avoid any
overpayment of purses to horsemen as of the end of the racing meeting of any
year during the term of this agreement. 
If the Racing Association makes a payment in excess of the amount
computed for purses herein, the overpayment can be offset against any
underpayment in any succeeding race meeting, but overpayments, if any, existing
at the end of any racing meeting must be computed and adjusted only as of the
end of the last meet.

5.                                       Revenue
Sharing.

a.               On-Track
Wagering.  During the term of this
Agreement, the Racing Association shall pay to the Horsemen’s purse account an
amount equal to 331⁄3% (hereinafter referred to as the “On-track Purse
Percentage”) of the Racing Association’s net commission, including breakage as
allocated in § 325.222 (c)(2), but excluding any taxes due under state law,
received from pari-mutuel wagers made at the Racing Association’s racetrack on
live races run at the racetrack (the “Purse Monies”); provided, however, that
with respect to races conducted at the Host facility after January 1, 2009, the
Racing Association shall pay to the Horsemen’s purse account 50% of the Racing
Association’s net commission, including breakage as allocated in § 325.222
(c)(2), but excluding any taxes due under state law.  Nomination, starting, and entry fees paid by
owners shall not be considered purses paid by the Racing Association for the
purpose of determining the amount of the On-Track Purse Percentage.  It is understood and agreed upon these fees
will be matched by the Racing Association and used exclusively for the
marketing of the live racing product. 
The Racing Association will provide the PA HBPA with the schedule of
events and an accounting of these funds.

 4
 

b.              Simulcast
Revenues.  In addition to the
revenues paid by the Racing Association in the paragraph above, the Racing
Association shall, subject to obtaining the appropriate consent from Horsemen
in accordance with the provisions of paragraph 6, apply the following amounts
to the Horsemen’s purse account:

i.          Exported or Imported
In-State Simulcast Signals.  In the event the Racing Association exports a
simulcast signal and pari-mutuel wagering information on a race held at the
Racing Association (“Host” facility) to another racing association or other
off-track facility (“Guest” facility) located within the Commonwealth of
Pennsylvania, then, in such event, the Racing Association shall pay to the
Horsemen’s purse account 33%1⁄3 of the Racing Association’s fee revenues,
but excluding transmission cost and any taxes due under state law; provided,
however, that with respect to export fees generated from races conducted at the
Host facility after January 1, 2009, the Racing Association shall pay to the
Horsemen’s purse account 50% of the Racing Association’s fee revenues, but
excluding transmission cost and any taxes due under state law.  In the event the Racing Association imports a
simulcast signal and accepts pari-mutuel wagers on a race held at another
racing association located within the Commonwealth of Pennsylvania or imports a
simulcast signal and accepts pari-mutuel wagers from any other “guest” facility
located within the state, then, in such event, the Racing Association shall pay
to the Horsemen’s purse account 331¤3 %
of the Racing Association’s net commission, including breakage as allocated in
§ 325.22 (c)(2) but excluding transmission cost 
and any taxes due under state law. 

ii.       Exported Simulcast
Signals to Out-of-State Facility.  In
the event the Racing Association shall enter into a contract with a “guest”
racing association, off-track wagering system or other off-track facility, located
outside the commonwealth of Pennsylvania, for the purpose of authorizing such
guest facility to receive a simulcast signal from the Racing Association and to
accept pari-mutuel wagers on a race held at the Racing Association, then in
such event, the Racing Association shall pay to the Horsemen’s purse account an
amount equal to 331¤3 %
of the Racing Association’s fees received under the terms of said contract,
excluding only transmission cost, excise or similar taxes, if any, payable with
respect to such revenue; provided, however, that with respect to export fees
generated from races conducted at the Host facility after January 1, 2009, the
Racing Association shall pay to the Horsemen’s purse account 50% of fees
received under the terms of said contract, excluding only transmission cost,
excise or similar taxes, if any, payable with respect to such revenue.

iii.    Imported Simulcast Signals
from Out-of-State Facility.  In the
event the Racing Association shall enter into a contract with a host racing association
located outside of the Commonwealth of Pennsylvania, for the purpose of
importing the simulcast signal and accepting pari-mutuel wagers on a race held
at such host racing association’s facility, then in such event, the Racing
Association shall pay to the Horsemen’s purse account an amount equal to 331¤3 %
of the Racing Association’s net commission 
received under the terms of said contract, excluding only transmission
cost and excise or similar taxes, if any, payable with respect to such revenue.

 5
 

c.               Media Revenue,
Telephone, Electronic and other Gambling Revenue.  In addition to the revenues paid by the
Racing Association for On-Track Wagering and Simulcasting, the Racing
Association shall also apply the following amounts to the Horsemen’s purse account:

i.          Media Revenue.  If the Racing Association receives revenues
from the sale or licensing of its television, radio, or other media
transmission rights, including, but not limited to, cable, network or
subscription transmission, but excluding revenue from the export of interstate
or intrastate simulcasting pursuant to which revenues are paid under Paragraph
5  above (hereinafter referred to
collectively as “Media Rights”), the Racing Association shall pay to the
Horsemen’s purse account an amount equal to 331¤3 % of the
Racing Association’s gross revenue received from the sale of such Media Rights.
Prior to execution of any agreement for the sale of Media Rights, the Racing
Association shall notify the members of the PA HBPA of the material terms and conditions
of all contracts it negotiates under the terms of which it sells or licenses
its Media Rights and shall give consideration to the positions expressed by the
PA HBPA representatives.  PA HBPA
acknowledges that race images are used by the Racing Association for the
promotion of racing and Presque Isle Downs, Inc. and its parent corporation for
the promotion of their businesses and grants Presque Isle Downs, Inc. the right
to use racing images for the promotion of its business and that of its parent
corporation.  Nothing in this provision
shall be construed as an admission or acknowledgment by the Racing Association
that any person, entity or group other than itself has a proprietary right in
or to the Media Rights relating to any event hosted and/or sponsored by the
Racing Association.

ii.       Telephone Account,
Electronic Media, Or Other Forms of Remote Wagering Revenue.  In the event of such forms of wagering for
purposes of determining the amount to be paid to the Horsemen’s purse account,
a telephone account wager or other wager made on races conducted at the Host
Facility through an electronic media wagering system, the majority of which is
owned by the Racing Association, shall be deemed to be made at the Racing
Association as an on-track wager, and revenues received by the Racing
Association therefrom shall be allocated and paid to the Horsemen’s purse
account in accordance with the On-track Purse Percentage set out herein.  331¤3 %
of any source market or similar fees, or any other fees, no matter what they
may be called or how characterized, received by the Racing Association from
telephone account or electronic media wagering systems remunerating the Racing
Association for market impact occurring by virtue of such wagers being made in
defined geographical area to be determined at the time of source market fee
agreement on races being imported by the Racing Association via simulcast
signals from within or outside of Pennsylvania shall be allocated and paid to
the Horsemen’s purse account.  For purposes
of this Agreement, the term “source market or similar fees” shall include, but
not be limited to, any and all fees or revenues paid to the Racing Association
and/or its horsemen by Television Games Network or any other account wagering,
electronic media or other remote wagering entities for the right to 

 6
 

accept wagers from
account holders located in defined geographical area to be determined at the
time of source market fee agreement.  For
the avoidance of doubt, the “source market or similar fees” received by Racing
Association in connection with telephone account, electronic media, or other
forms of remote wagering with respect to live racing conducted at the Host
facility shall be subject to the Revenue Sharing provisions set forth above.

d.              Full Disclosure
of all Documents Relating to Revenue. 
The PA HBPA shall have the right to review, audit and inspect all files
and documents, in whatever form, in the hands of the Racing Association or its
agents or designees relating to any revenue generated by Racing Association,
including but not limited to: wagering at the racetrack, simulcast agreements,
sponsorships, media rights, telephone or electronic wagering, other forms of
gambling subject to compliance with any applicable laws, rules, regulations or policies
of the PA Gaming Control Board. 
Furthermore, the PA HBPA shall have the attendant right to review,
audit, and inspect all files and documents, in whatever form, relating to fees
and overhead expenses incurred by the Racing Association in its performance of
in-state and interstate simulcasting contracts, pari-mutuel wagering, and
operation of the racetrack.  The Racing
Association agrees to make all of its relevant books and records available to
the PA HBPA for review, audit, inspection and/or copying, upon 10 day’s notice
by the PA HBPA.  Any such review, audit
or inspection performed by the PA HBPA will be performed at its own
expense.  The Racing Association agrees
that it will not unduly delay, restrict or impede the PA HBPA’s access to this
information, and that it will maintain full, complete and accurate records of
all its transactions, including the sale of simulcast signals, for a minimum
period of 7 years.  Should the Racing
Association deny the PA HBPA’s request to review documents, it shall provide to
the PA HBPA, in writing, within 10 days the reasons for its denial.  Any dispute arising from this term shall be
first submitted to arbitration, in the manner provided in Paragraph 18 (b).  The foregoing rights set forth in this
section 5(d) are further qualified as follows: (i) the documents will be made
available to only the president and treasurer of the PA HBPA and any certified
public accountant engaged by the PA HBPA for such purpose; and (ii) any person
reviewing such documents will agree to keep all information strictly
confidential.

6.                                       Simulcast
Wagering Consent.

a.               Interstate
Simulcasting/Off-Track Wagering Consent. 
For the initial racing meet that is scheduled to begin September 1, 2007
and end September 28, 2007, the PA HBPA consents to the Racing Association
entering Simulcast Agreements with the entities listed on Exhibit A attached
hereto, provided that such Simulcast Agreements contain economic terms no less
favorable than those currently in effect between such entities and Mountaineer
Park, Inc.  For each subsequent race meet
commencing in 2008 and thereafter, the PA HBPA will exercise its consent and
approval right with respect to the interstate simulcasts and the conduct of
interstate off-track wagering by the Racing Association as provided for under
Section 234 of the Race Horse Industry Reform Act and the provisions of the 

 7
 

Interstate Horseracing Act of 1978 by separate letter
directed to the Racing Association and signed by an authorized representative
of the PA HBPA, such consent and approval not to be unreasonably withheld.  Likewise for each subsequent race meet
commencing in 2008 and thereafter, the Racing Association agrees to make its
request for the PA HBPA’s consent and approval no earlier than sixty (60) days,
but no later than thirty (30) days prior to each year’s race meet.  The Racing Association will provide to the PA
HBPA the information set out in subparagraph “c.” below along with a complete
list of all proposed simulcast “guest,” “satellite facilities,” and “secondary
recipients,” if any, providing a separately detailed summary of the price
proposed to be paid by each proposed off-track wagering site.  Within
seven (7) days after the Racing Association discloses the aforementioned
information to the PA HBPA, the PA HBPA will provide its letter granting or
withholding consent and approval, or any terms and conditions thereto, to the
Racing Association.  If the Racing Association provides all of the
aforementioned information to the PA HBPA by no later than thirty (30) days
prior to the meet, but the PA HBPA fails to provide its consent and approval
letter within seven (7) days after such information has been fully disclosed,
the Racing Association shall, by virtue of this agreement, be deemed to have
the PA HBPA’s consent and approval with respect to all of the disclosed
out-of-state off-track wagering sites at the prices so disclosed during the
upcoming meet.

b.              Intrastate
Simulcasting Consent.  For the initial racing meet that is scheduled
to begin September 1, 2007 and end September 28, 2007, the PA HBPA consents to
the Racing Association entering Simulcast Agreements with the entities listed
on Exhibit A attached hereto, provided that such Simulcast Agreements contain
economic terms no less favorable than those currently in effect between such
entities and Mountaineer Park, Inc.  For
each subsequent race meet commencing in 2008 and thereafter, the PA HBPA will
exercise its consent and approval right with respect to intrastate simulcasting
by the Racing Association as provided for under Section 234 of the Race Horse
Industry Reform Act, such consent not to be unreasonably withheld, by separate
letter directed to the Racing Association and signed by an authorized
representative of the PA HBPA in accordance with the provisions outlined in
subparagraph “a.” above except that (1) the Racing Association may disclose the
licensed locations within the State of Pennsylvania to whom it proposes to send
an intrastate simulcast at any time during the calendar year but no later than
thirty (30) days prior to the race meet, and the PA HBPA agrees to provide its
letter granting or withholding consent or approval, or any terms and conditions
thereto, by separate letter within seven (7) days thereafter.  The Racing
Association agrees to provide a complete disclosure of the terms and conditions
upon which it proposes to send intrastate simulcasts to any licensed location
within Pennsylvania along with its request for the PA HBPA’s consent and
approval.  If the Racing Association discloses all of the proposed terms
and conditions to the PA HBPA by no later than thirty (30) days prior to the
meet, but the PA HBPA fails to provide its consent and approval letter within
seven (7) days thereafter, the Racing Association shall, by virtue of this 

 8
 

agreement, be deemed to have the PA HBPA’s consent and
approval with respect to intrastate simulcasting to the disclosed licensed
locations in accordance with the disclosed terms and conditions for the
upcoming meet.

c.               The Racing
Association (for itself and it’s affiliated and related entities) agrees that
no person, firm or entity shall be permitted to accept wagers on races
conducted at the Racing Association and transmitted to such recipient unless
each such recipient has a written agreement (“Simulcast Agreement”) regarding
such transmission and wagering thereon with the Racing Association.  The Racing Association agrees not to grant
wagering rights to any “guest” facility located outside this state without
restricting such “guest” from retransmitting, rebroadcasting or otherwise
distributing the Racing Association’s simulcast signals, and prohibiting the
acceptance of wagers on the Racing Association’s races, unless “guest” fully
discloses to the Racing Association, and the Racing Association, in turn,
provides to PA  HBPA, the following: (1)
the address of each of “guest’s” principal locations or premises; (2) the
address of each of “guest’s” “satellite facilities,” if any, regardless whether
such facilities may be located in “guest’s” same or different state; (3) the
address of each of “guest’s” “secondary recipients,” if any.  The Racing Association agrees to provide a
complete list of all simulcast “guest,” “satellite facilities,” and “secondary
recipient” outlets, and any other facilities or outlets, which will or may
accept wagers on races conducted at the Racing Association during the term
hereof.  The Racing Association will also
provide the PA HBPA with complete copies of all simulcast contracts, agreements,
exhibits, schedules, and financial arrangements negotiated by the Racing
Association (including all affiliated and related entities) with each entity
that proposes to accept wagers on races conducted at the Racing Association
during the term hereof, it being the intention of the parties that the PA HBPA
shall have complete access to all information related or pertaining to all
Revenue from simulcast wagering

d.              Prior to the
commencement of each racing meet, the Racing Association shall provide the PA
HBPA with all host fee rate information and an opportunity to discuss same with
the Racing Association for all outlets to which it (or any affiliate or related
party) may contract.  Information
communicated in connection with the provisions of this paragraph shall be
maintained in confidence and shall not be publicly disclosed by either party
unless required by law to do so.

e.               During the term of
this Agreement, the parties recognize that the Racing Association may have the
need or occasion to negotiate with Guest Facilities, including off-track
wagering sites, located inside or outside the Commonwealth of Pennsylvania,
which are subject to the Interstate Horseracing Act of 1978 (the “Act”), for
the conduct of off-track wagering for the following races: Thoroughbred races
held at the Racing Association, in a time frame that does not allow the Racing
Association to include such sites in the list provided to the PA HBPA on or
before thirty (30) days prior to the meet as envisioned under subparagraph “a.”
above.  If the Racing Association negotiates with new or 

 9
 

additional off-track wagering site(s) in a time period
after the thirty (30) day window set out in subparagraph “a.” above, the
parties agree to follow the procedures as set out herein.  The Racing
Association shall disclose any new or additional site(s), accompanied with all
pertinent information as set out in subparagraph “a.” and “c.” above along with
the details of the proposed price at which the simulcast and off-track wagering
site proposes to purchase the simulcast and wagering rights.  The PA HBPA
agrees to exercise its consent and approval rights, which shall not be
unreasonably withheld, with respect to such new or additional site(s) within
five (5) business days after such information is fully disclosed.  If the Racing Association provides all of the
aforementioned information to the PA HBPA, but the PA HBPA fails to provide its
consent and approval letter within five (5) business days after such
information has been fully disclosed, the Racing Association shall, by virtue
of this agreement, be deemed to have the PA HBPA’s consent and approval with
respect to all of the disclosed 
off-track wagering sites at the prices so disclosed during the upcoming
meet.  Unless the PA HBPA shall have been deemed to consent and approve by
its inaction as set forth in the immediately preceding sentence and in Section
6(a) and 6(b) above, no race or races’ simulcast signal will be exported from
the Racing Association without prior written approval of the PA HBPA in
accordance with the Act.

7.                                       Racing
Surface.  The Racing Association and
the PA HBPA hereby agree that a synthetic surface will be installed as the
racing surface.  The cost of the surface
will be partially funded by the PA HBPA in the amount of 50% of the excess
capital expenditure above that of a conventional racing surface, together with
interest thereon at the blended rate that Racing Association pays from time to
time on its line of credit with Wells Fargo Bank (variable rate, currently
8.3%) and its publicly traded notes ($130 million of which have a fixed
interest rate of 93⁄4% and $125 million of which have a fixed interest rate of
9%).  Once live racing begins (currently
scheduled for September1, 2007), Racing Association shall bill the PA HBPA monthly
and payments will be due upon receipt of such bill.   In the alternative, the PA HBPA may obtain
its own financing.  Notwithstanding the
foregoing, if in the business judgment of Racing Association, in consultation
with engineers and other outside professionals, a synthetic surface will not accommodate
the planned winter activities of Racing Association (such as snowmobile use),
then Racing Association will not be required to install a synthetic surface. In
the initial year of operation, 2007, the racing surface shall be made available
for training 21 days prior to the start of a racing meet and 15 days after the
last day of a race meet.  In 2008 and
subsequent years the racing surface shall be made available for training 30
days prior to the start of the meet and 15 days after the last day of the meet.

8.                                       Condition
Book.  PA HBPA represents that it has
created a Condition Book Committee to consult with Horsemen concerning the
conditions of racing and to make known to the Racing Association the results of
their consultations.  The Racing
Association agrees that this Committee shall have the right to meet with the
appropriate Racing Association personnel to discuss and approve each Condition
Book at least 10 days before printing in order to permit Committee review,
suggestions, and recommendations.  The
Racing Association will send a copy of the Condition Book to the Chairman of
the Condition Book Committee, as well as post a copy in the Racing Secretary’s
office, on or before the first date they are distributed.

 10

9.                                       PA
HBPA Office and Amenities.  The
Racing Association shall provide, at no cost to the PA HBPA, a suitable office
(including, at no cost to the PA HBPA, suitable lighting, heat, air
conditioning and janitorial, but not furniture or equipment) located on the
grounds of the Racing Association for its use.

The Racing Association shall not remove, prohibit or
restrict in any way the PA HBPA’s use and enjoyment of this office and
amenities during the term of this Agreement. 
Should, however, the PA HBPA breach the terms of this Agreement or allow
this Agreement to terminate without executing a new Horsemen’s Agreement, the
Racing Association agrees to allow the PA HBPA to remain in its office, with
the same amenities provided above, for 30 days from the date of the alleged
breach or lapse of this Agreement. 
Furthermore, the Racing Association shall provide 30 day’s written
notice to the PA HBPA before taking any action to remove or restrict its use
and enjoyment of this office.

Additionally, on live race days, the Racing
Association shall provide the PA HBPA one dining table overlooking the race
track for the PA HBPA and its member’s exclusive use, programs, and free
parking for PA HBPA members with horses entered in a race on that day,
provided, however, that if the PA HBPA does not confirm with the manager on
duty within four (4) hours prior to post time its intention to use the reserved
dining table for that race day, then the Racing Association may make the table
available to its other patrons.

10.           Stalls and Track Facilities:

a.               Stall
Allocations and Applications:  Racing
Association shall make its stalls available free of charge to Horseman each
race meeting.  Racing Association shall
not discriminate in the allocation of stalls by reason of HBPA membership or
activity or allow its representatives or employees to discriminate in the
allocation of stalls.  Horsemen must
provide a stall application to Racing Association to receive a free stall and
must provide proof of worker’s compensation insurance unless supplying a
written affidavit certifying no employees.

The terms and conditions of stall applications shall
be sent to the HBPA at least thirty days prior to the first day of each race
meeting.  A copy of the stall application
is attached hereto as an addendum.

b.              Backside
Facilities:  The racing surface, the
barns and related backside facilities at the Racetrack, all necessary for
training purposes, shall be made available by Racing Association to Horsemen
without charge for those Horsemen who have horses training. Racing Association
shall, at its own expense, make water, hot water, and electricity available to
each barn in use and keep the racing surface harrowed and watered.

The racing strip, barns, tack rooms and other
facilities useful for training purposes shall be made available to Horsemen
without charge.  Racing Association
agrees that these facilities shall be made available during reasonable hours
for training 

 11
 

purposes, subject to weather conditions.  Racing Association agrees to reimburse the PA
HBPA for the services of a paddock blacksmith in the paddock for each and every
live race day, such reimbursement not to exceed $100 per live race day.

The Racing Association agrees to take reasonable steps
to maintain the stalls and barn areas in a suitable manner at all times,
including but not limited to, the daily collection of manure and the filling of
all road areas to prevent water accumulation. Racing Association agrees to
remove trash and debris from trash receptacles provided on the backside area at
no cost to the Horsemen and maintain all backside area restrooms in a clean and
sanitary condition.

The PA HBPA recognizes an obligation of Horsemen and
backside personnel to maintain the backside area occupied by them in a sanitary
condition, free from litter and other foreign objects.  HBPA will use its best efforts to ensure that
Horsemen and their employees fulfill their obligation in this regard.

c.               Vendors:  Racing Association shall not establish or
impose upon Horsemen a monopoly, restriction or requirement regarding the use
of blacksmiths, feed men, track suppliers, veterinarians, or other services
customarily used by Horsemen.  Racing
Association will secure its best efforts to keep such unlicensed persons off
its premises.

11.                                 PA
HBPA Funds.  The Racing Association
shall pay to PA HBPA, during the terms of the agreement, an amount equal to 5 %
of total purses paid to the Horsemen on races run at the Track during each live
race meet from the purse account.  This
rate shall remain in effect until the PA HBPA’s capital contribution, including
interest financed by Presque Isle Downs Inc., for its share of the installation
of a synthetic surface, is amortized over a period not to exceed 5 Years, after
which the rate will be 3%. The monies due the PA HBPA shall be paid by the end
of each month.

12.                                 Anti-Strike.  The Officers of the PA HBPA agree, so long as
the Racing Association is not in breach, to not directly or indirectly call,
instigate, promote or participate in any strike, boycott or slowdown of the
Racing Associations facilities, including but not limited to its slot machine
operations.

13.                                 Fire
Insurance and Liability.  There is
currently in existence a Fire and Disaster Insurance Plan, provided by the
NHBPA, under which a reputable insurance company provides insurance for
Horsemen to protect them from loss of their race horses, tack supplies, and
other personal property due to fire or disaster.  Therefore, Racing Association agrees to pay
to NHBPA, for each year of the Agreement, its proportional share of the total
annual premium as determined annually by the NHBPA.  It is understood, however, that the limits
and types of coverage will not increase without the prior written agreement of
the Racing Association.

Because of this payment for the Fire and Disaster
Insurance Plan, the PA HBPA shall indemnify and hold Racing Association
harmless from and against any damage, loss, action, judgment, cost or expense
(including reasonable attorneys’ fees) resulting from any claim, demand or
cause of action made or brought by a Horsemen for any loss covered by the Fire
and Disaster Insurance Plan.

 12
 

14.           Horsemen’s Bookkeeper and Purse
Account.

Bookkeeper.  A Horsemen’s Bookkeeper shall be employed by
the Racing Association and shall be subject to the policies generally
applicable to the Racing Association employees. 
The Horsemen’s Bookkeeper shall perform those functions set forth from
time to time by statute and  Section 235
of the Race Horse Industry Reform Act, and the Racing Association shall provide
such equipment as shall be reasonably necessary for the performance of the
Horsemen’s Bookkeeper’s statutory duties. 
The Racing Association shall at all times maintain sufficient funds in
such account to meet the horsemen’s 
requests for payment for purses, stakes, rewards, claims and deposits as
such requests are made or in accordance with the State law, Racing Association
rules, or the provisions herein.

All portions of purse money shall be made available to
earners thereof immediately following clearance of purses by PSHRC; except
however, when the stewards shall order money withheld until final adjudication
of a dispute determining which persons are entitled to such money in
dispute.  Money owing to a horseman by
reason of the claim of such horseman’s horse for cash shall be made available
to such horseman, for claiming purposes only, in the race following the race
when such horsemen’s horse was claimed if such horseman shall request that his
money be made available prior to or at the time of the claim of such horseman’s
horse.  In the case of payment in a form
other than cash or cash equivalents, then the money will be paid to the
horsemen upon the Racing Association’s receipt of collected funds.

For this purpose, the Horsemen’s Bookkeeper shall
maintain a separate bank account known as the “Horsemen’s Purse Account”
subject to and in accordance with all laws and regulations of the Commonwealth
of Pennsylvania.  The Racing Association
shall have no control over such funds once transferred by it to the Horsemen’s
Bookkeeper Account.   The Racing
Association agrees to furnish (at no cost, fee or expense to the PA HBPA)
appropriate office space, furniture and equipment for the operation of the
Horsemen’s Bookkeeper. The racing association shall be responsible for the
acquisition and maintenance of any computer software necessary for the
operation of the Horsemen’s Purse Account and the management and operation of
the account including, but not limited to, all tax and regulatory filings.

Funds on deposit in the Horsemen’s Bookkeeper Account
shall be placed in an interest bearing account and the interest shall be paid
in accordance with the Race Horse Industry Reform Act.  The selection of the financial institution
holding the funds shall be at the discretion of the PA HBPA

15.           Racing Committee:

a.               During the term of
this Agreement, the Racing Association and the PA HBPA shall organize and
maintain a joint committee known as the “Racing Committee.”  The PA HBPA shall appoint no more than three
members to the Racing Committee.  The
Racing Association shall appoint no more the three members to the Racing
Committee.  The Racing Committee shall
meet at least once not more 

 13
 

than 30 days, nor less
than 10 days, prior to each of the Racing Association’s race meetings, and at least
once within 30 days after the conclusion of each race meeting.  The Committee shall meet at such other times
as shall be requested by  one or more of
its members to discuss such things as promotion, publicity, track conditions,
other matters which relate to attendance, pari-mutuel handle, the quality of
racing, health benefit programs, death benefits, drug and alcohol abuse
programs, and any other program which will aid and assist the racing industry
in Pennsylvania to care for its personnel at the highest possible level.  In addition to the above topics, the Racing
Committee will specifically discuss: (1) parking for owners and backside
workers; (2) access to and from the Racing Association’s facility through
backside gates; (3) access to the Racetrack for training purposes during any
necessary construction at the Racetrack; and special event parking issues.  Unless closed for the season, the Racetrack
and Trackside racing strips shall each be maintained properly and be provided a
starting gate and crew 4 days per week, subject to Racing Committee
discretion.  A minimum of ten members on
the gate crew will be provided for all race cards. Provided, however, that the
PA HBPA may consent to a lower number. The Racing Association shall, in a
timely manner, use its best efforts to provide the PA HBPA representatives on
the Racing Committee with reasonable proposals to address the enumerated issues
listed above.  The Committee shall keep
minutes of its discussions, recommendations and decisions.

b.              Grievance Committee:  The parties hereto believe it most advisable
and to their mutual best interest that any future difference between them with
respect to the provisions of this Agreement, the matters covered hereby or any
other matter pertaining to thoroughbred racing where both parties are
interested, should be settled by them, without undue publicity, by negotiation
and consultation.  This sub-committee
shall consist of not more than four members appointed by the PA HBPA, and four
members appointed by the Racing Association. 
These members shall act as a joint body in an effort to amicably and
equitably resolve all disputes or grievances between the PA HBPA and the Racing
Association. Officials of either the PA HBPA or the Racing Association may
request a meeting of the Racing Committee, Grievance Sub-committee to discuss
any existing disputes between the horsemen and the Racing Association.  Such request shall include an agenda for
those matters which are to be discussed. 
Within 72 hours after receipt of such request, a meeting shall be held
at a mutually agreeable time and place. 
Matters which can not be resolved shall be submitted to arbitration,
subject to Paragraph 18. (b) of this Agreement. The election of either party to
submit an issue to arbitration shall be reflected in writing to the other
party, specifying the issue which has not been satisfactorily resolved by the
Grievance Sub-committee.

c.               Equine Safety
Committee

The Associations and the PA HBPA agree to establish an
Equine Safety Committee.  The membership
will consist of representatives from all constituent groups (Racing
association, horsemen, jockeys or other necessary group) that affect live
racing at Presque Isle Downs.  The
committee will meet at least once a month, if not more frequently, to discuss
the variety of issues that affect all aspects of equine safety at Presque Isle
Downs.

 14
 

d.              PA
HBPA/Management Committee

During the term of this Agreement, Associations and
the PA HBPA shall organize and maintain a joint committee to be known as the “PA
HBPA/Management Committee”.  This
Committee shall be composed of not more than five representatives form the PA
HBPA (including the President) and not more than five representatives form
Associations (including the Director of Racing).  This Committee shall meet regularly at the
request of any member of said Committee. 
The Committee shall discuss such things a barn area issues, track
conditions, racing program, and other matters which relate to attendance,
pari-mutuel handle, the equality of racing and any other issues not
specifically addressed in this Agreement which will assist the Pennsylvania
thoroughbred horse racing industry to be progressive and competitive. The
committee shall determine how to resolve any of the foregoing issues and it may
recommend any impasse to arbitration in accordance with Section 18. (b) of this
Agreement.

16.                                 Wagering
Hub — In the event that the Racing Association establishes a wagering hub
either at Presque Isle Downs or at some other physical location during the term
of this agreement, the Racing Association will recognize Presque Isle Downs
source market customers as those with zip codes within a 50 mile radius of
Presque Isle Downs.  Revenue generated
from these Presque Isle Downs source market customers will be subject to the
Revenue Sharing provisions of this Agreement.

17.                                 Horsemen’s
Discount - All Horsemen who are licensed by the PSHRC as an owner or
trainer and are active members of the PA HBPA shall receive a 20% discount at
all dining facilities excluding the gourmet restaurant currently known as La
Bonne Vie.

18.                                 PA
HBPA Covenant -

a.               PA HBPA covenants
that so long as Associations comply with the provisions of this Agreement, PA
HBPA will not institute or instigate, promote, encourage, condone, or engage in
any boycott, close down, slow down, stoppage of, or interference with any race
meet or race meets of Associations, at Presque Isle Downs, or any other
business activity of Presque Isle Downs, including its slot machine operations.  PA HBPA will use its best efforts to ensure
that its members comply with this paragraph.

b.              In the event that
there is a disagreement between the parties as to whether any party has
complied with the terms or conditions in this Agreement, then the Associations
shall choose an Arbitrator and the PA HBPA shall choose an Arbitrator.  The two Arbitrators shall choose a third
Arbitrator, and the Board of Arbitrators shall decide the issues involved and
each party agrees to be bound by the decision of the arbitration panel, except
with respect to questions of federal law. 
No action shall be taken by the PA HBPA prohibited by paragraph 18(a)
unless and until the Arbitrators have determined that Associations are not in
compliance with the terms hereof.

19.                                 Associations’
Covenants - The Associations will not, by means of agreement or otherwise,
seek to establish or impose upon the horsemen a monopoly concerning independent
contractors such as horseshoers, feedmen, tack suppliers, jockeys or any 

 15
 

other suppliers or servicemen customarily used by horsemen.  Notwithstanding the foregoing, the
Associations reserved the right to impose reasonable non discriminatory
requirements for security, safety and environmental reasons on the Association’s
premises and to limit access to only those vendors, suppliers and servicemen
who are properly licensed by the State Horse Racing Commission and conditioned
upon their compliance with reasonable rules and regulations promulgated by the
Associations.

20.                                 This
Agreement shall be submitted to the Pennsylvania State Horse Racing Commission.

21.                                 Binding
Effect — This Agreement shall be binding upon and inure to the benefit of
the parties hereto or their respective successors and approved assigns. Each
party will supply the other with a certified copy of a Resolution approving
this Agreement.

22.                                 Entire
Agreement — This Agreement contains the entire agreement and understanding
of the parties hereto with respect to the subject matter interest and
supersedes all prior or contemporaneous agreements with respect to such subject
matters; and may not be modified or amended except in writing signed by all
parties hereto.

IN
WITNESS WHEREOF, the Associations and PA HBPA have executed
this Live Racing Agreement the 22nd day of February, 2007.

 

	
  PENNSYLVANIA HORSEMEN’S 

  BENEVOLENT AND PROTECTIVE

  ASSOCIATION, INC.

  	
   

  	
  PRESQUE ISLE DOWNS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  \s\ Joseph Santanna

  	
   

  	
  \s\
  Richard D. Knight

  
	
  Joseph Santanna,
  President

  	
   

  	
  Richard D. Knight, President

  Chief Executive Officer

  

 

 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]