Every application to become a franchise holder shall contain the following:

1. (1) Ownership and management.

   1. (A) State the name of the applicant and indicate whether it is an individual, firm, association, partnership, or corporation.

   2. (B) State the following information as to the applicant (if the applicant has a parent corporation, the same information must be submitted both for the parent and applicant corporation):

      1. (i) State the year in which the applicant was organized, its form of organization, and the name of the state under the laws of which it was organized. Attach a copy of the articles and bylaws to the application;
      2. (ii) State the classes of capital stock authorized, the amount authorized, and the amount outstanding as of the date not less than fifteen (15) days prior to the date of filing on the application. State the amount of dividends paid to stockholders during the five (5) years immediately preceding the application;

      3. (iii) State the name and address of each person who owns, of record or beneficially, one (1) or more shares of any class of capital stock. This can be indicated in columnar forms as follows:

         1. (a) (a) Name and address;
         2. (b) (b) Class of stock owned;
      4. (c) (c) Type of ownership whether of record or beneficial;

      5. (d) (d) Amount owned; and

         1. (e) (e) Percent of the class of stock;
      6. (iv) Describe briefly the terms of any voting trust in which any of the capital stock is held and the name, address, class, or stock, and number of shares of stock for all stock held in said voting trust;
      7. (v) Describe briefly the terms of any proxy by which any of the capital stock is held, the holder of the proxy and the name, address, class of stock, and number of shares of stock for all stock held by said proxy;
      8. (vi) State whether five percent (5%) or more of the applicant's assets, or five percent (5%) or more of any principal stockholders' stock, is encumbered by any long-term debt. Explain fully, by stating names and addresses of parties holding security interests or promissory notes from the applicant and the stockholders, where the stock is pledged as security, and outline the terms of the agreements creating the security interests;
      9. (vii) Outline briefly the divided rights, voting rights, liquidation rights, preemptive rights, conversion rights, and redemption provisions. If the rights of holders of such stock may be modified otherwise than by a vote of majority or more of the shares outstanding, voting as a class, so state and explain briefly;

      10. (viii) If the applicant was organized as a corporation within the past five (5) years, furnish the following information:

          1. (a) (a) The names of the promoters;
          2. (b) (b) The nature and amount of anything of value received or to be received by each promoter directly or indirectly from the applicant; and
      11. (c) (c) The nature and amount of any assets, services, or other consideration therefore received or to be received by the applicant;
      12. (ix) List the names of all directors and officers of the applicant and all persons chosen to become directors or officers, and attach a personal history resume for each person named. Indicate all positions and offices with the applicant held by each person named, and the principal occupation during the past five (5) years of each person named; and
      13. (x) List all parents of the applicant showing the basis of control, and as to each parent, the percentage of voting securities owned, or other basis of control by any of its parents.

   3. (C)

      1. (i) Attach to the application balance sheets and profit and loss statements for each of the three (3) fiscal years immediately preceding the application, or for the period of organization if less than three (3) years. If the applicant has not completed a full fiscal year since its organization or if it acquires or is to acquire the majority of its assets from a predecessor within the current fiscal year, the financial information shall be given for the current fiscal year. Balance sheets, profit and loss statements, and all other financial statements required herein shall be prepared, audited, and certified by independent, certified public accountants in accordance with generally accepted accounting procedures and practices applied on a consistent basis. Any report containing exceptions of a material nature will not be considered to be certified.
      2. (ii) State all loans by applicant in excess of one percent (1%) of the net income and describe fully the name of the borrower, amount of the loan, collateral, and terms.
   4. (D) Briefly describe any pending legal proceedings to which the applicant or any of its subsidiaries or parent corporation is a party or of which any of their property is the subject. Include the name of the court or agency in which the proceedings are pending, the date instituted and the principal parties thereto.
   5. (E) State if the applicant or its directors, officers, policy-making manager, or principal stockholders have owned an interest in any firm, partnership, association, or corporation previously licensed by the Arkansas Racing Commission or are now engaged in the business of racing outside of the State of Arkansas (and explain, as applicable).
   6. (F) Describe briefly and where practical state the approximate amount of any material interest, direct or indirect, of any officer, director, or principal stockholder of the applicant, or any associate of any of the foregoing persons in any material transactions during the last three (3) years, or in any material proposed transactions to which the applicant was, or is to be a party.
   7. (G) State generally the principal purposes for which the net income received by the applicant is intended to be used, (whether it be for payment of dividend, retained earnings for enumerated purposes, or other purposes) and show the approximate percentage of the amount intended for each purpose.
   8. (H) State all contracts by the applicant entered into within the year preceding the date of application, and all executory contracts not otherwise described pursuant to this part in which the consideration exceeds one percent (1%) of net income, and describe fully, including the names of the parties to the contract, amount of consideration, and terms.

   9. (I)

      1. (i) List all direct remuneration paid by the applicant and its subsidiaries, if any, during the applicant's last fiscal year to:

         1. (a) (a) Each director and officer of the applicant whose aggregate direct remuneration exceeded ten thousand dollars ($10,000), naming each such person;
         2. (b) (b) All directors of the applicant as a group without naming them;
      2. (c) (c) All officers of the applicant as a group without naming them; and
      3. (d) (d) All other persons whose aggregate remuneration exceeds ten thousand dollars ($10,000), naming each such person.
      4. (ii) As used in subdivision (1)(I) of this section, direct remuneration shall include salary, retirement benefits, automobile furnished, expenses reimbursed, and all other sums paid for the benefit of the officer, director, or other recipient.
   10. (J) State whether the applicant, its officers, directors, and principal stockholders have complied with and are in compliance with 23 CAR § 357-105(a). If not in compliance, explain in full.

2. (2) Location and physical plant.

   1. (A) State county and municipality of track.
   2. (B) Give actual legal description of a site, names and addresses of the titleholders to the real property, and names and addresses of all persons holding mortgages or other security interests in the property.
   3. (C) State the number of miles from the nearest population center, and describe briefly the transportation facilities serving that population's center.
   4. (D) Indicate the exact dimensions of any track proposed.
   5. (E) Describe the grandstand size and type construction. Submit at least one (1) copy of architect's plans or rendering showing details of any proposed constructions.
   6. (F) Describe briefly the efforts made to ensure the security, safety, and comfort of patrons and license holders.
   7. (G) State the availability of fire protection and adequacy of law enforcement and police protection.
   8. (H) Indicate the parking lot capacity and describe the construction and type of parking facilities.
   9. (I) Indicate the number and type of construction of stables and other areas, indicating capacities and fire prevention facilities for all areas.
   10. (J) Indicate the provisions for facilities for owners and other racing personnel.
   11. (K) Describe the arrangements for food and drink concession, indicating the names and addresses of concessionaires and the terms of the concession contracts. Attach copy of contract.
   12. (L) Describe any concessions, clubs, or other special facilities for patrons.

3. (3) Racing operation.

   1. (A) Indicate by actual dates the racing days requested by the applicant.
   2. (B) Indicate the kind of racing to be conducted.
   3. (C) Describe the pari-mutuel operation in general and indicate in particular the terms of the pari-mutuel ticket sales.

4. (4) Economic and other aspects of track location.

   1. (A) Describe briefly climatic conditions prevalent during the proposed racing season.
   2. (B) Indicate the population of the local area and the growth trend. Indicate the potential market, including tourists, transients, and patrons from neighboring areas.
   3. (C) Indicate the principal sources of local income, showing the percentage from farming and ranching, industrial, professional and services, and military and other governmental sources.
   4. (D) Indicate the effect of competition with other racetracks in and out of the state and with other sports or recreational facilities in the area. State in detail what effect the competition from other racetracks will have on the availability of the racing stock and track personnel.
   5. (E) Indicate what effect opposition from area residents will have on the economic outlook for the proposed track.