Memorandum of Agreement

Maywood/Balmoral will defer 70% of its 2006 recapture entitlement.

• The deferred amount will be recoverable only if and when new revenue (as defined below) becomes available;
• Rate and amount of recovery will be limited to 50% of the horsemen’s total reimbursement debt, whichever is less; additionally, if, in any given year, the combined recapture reimbursement and current recapture obligation exceeds 75% of the horsemen’s net from new revenue, the amount above 75% will be deferred to the following year.
• If, after 70% deferment, purses generated are still insufficient to maintain 2005 purse structure, Maywood/Balmoral reserves the right to reduce purses accordingly; and,
• Maywood/Balmoral’s right to recovery of the deferred amount will “sunset” on 12/31/12.

“New revenue” is defined as legislatively approved non pari-mutuel revenue streams, such as, but not limited to, gaming revenues on non-live horseracing gaming.

The recapture deferral reimbursement language from the 2004 (par. 5) and 2005 (par. 3 A and B) contracts shall be modified to provide that reimbursement will be taken from any new revenue streams (as defined above), so long as that new revenue is passed into public law by December 31, 2006. After said date, the 2005 reimbursement will be governed by the original contract terms.

Maywood/Balmoral will provide coffee in the paddock as in the past.

Maywood will pay $300 per nine horse field and limit 9 horse fields to 4 per night.

Sulky insurance the same as in 2005.

Grievance/Arbitration clause stays in contract.

Balmoral/Maywood will be able to take 100% of recapture on the five days of work stoppage in 2006.

The IHHA take out will be set at $6500.00

The contract shall expire 12/31/2006

Duke Johnston for Balmoral/Maywood

Martin Engel for the IHHA