HOW PURSES ARE GENERATED – SUFFOLK DOWNS January 2011

							        HOW PURSES ARE GENERATED – SUFFOLK DOWNS
                        January 2011

In general, earned purse has been calculated as follows:

A.     Statutory Requirements

       Live Handle – 8.5% of WPS wagers and 9.5% of Exotic wagers

       Simulcast Handle – For simulcast races conducted at times other than when
       Suffolk Downs is running live, 4% of the wagers are alloacted to purses. For
       simulcast races run at the same time Suffolk Downs is running live, the purse
       allocation is 50% of the net remaining after the host fees and statutory fees (which
       total 1%) are paid.

       Premiums from Raynham, Plainridge & Wonderland – 100% of the premiums
       received from the other Massachusetts licensees is allocated towards purse
       money.

       Outstanding Tickets – 100% of the non-cashed wagers originating at Suffolk is
       allocated towards purse money after the funds are paid to and released by the
       Racing Commission.

       Massachusetts Purse Pool – 100% of all cash received from the state is allocated
       towards purse money.

B.     Prior Contractual Agreement

       Transmitted Handle – 50% of the negotiated host fee after reducing it by 0.5%
       of the handle to pay for administrative and other costs of sending out the signal.

       IHA Payments – 50% of all payments received from Twin River, Rockingham,
       Seabrook and Newport are allocated towards purse money.

       ADW Payments – 50% of all payments received from TVG, YouBet, XpressBet
       and Twin Spires are allocated towards purse money.