Document:

Amendment No. 1 to the Amended and Restated Credit Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 AMENDMENT NO. 1 
 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”) is made as of May 2, 2007 by and among Churchill
Downs Incorporated, a Kentucky corporation (the “Borrower”), the Guarantors, the financial institutions listed on the signature pages hereto as the “Lenders” referred to below and JPMorgan Chase Bank, National Association,
as the agent and the collateral agent for the Lenders (the “Agent”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given to them in the “Credit Agreement” referred to below.

 W I T N E S S E T H: 
 WHEREAS, the signatories hereto are parties to that certain Amended and Restated Credit Agreement, dated as of September 23, 2005, by and among the Borrower, the Guarantors, the financial institutions from time to time parties thereto
(the “Lenders”) and the Agent (as the same may from time to time be amended, restated, supplemented or otherwise modified, the “Credit Agreement”); 
 WHEREAS, certain existing Lenders (the “Departing Lenders”) identified on the signature pages hereof as Departing Lenders have decided
to cease acting as Lenders; 
 WHEREAS, the parties hereto have agreed to amend the Credit Agreement on the terms and conditions set forth
herein; 
 NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Guarantors, the Lenders and the Administrative Agent have agreed to the following amendment to the Credit Agreement. 
 1. Amendments. Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in
Section 2 below, the Credit Agreement is hereby amended as follows: 
 (a) Section 1.1 of the Credit Agreement is hereby
amended to insert the following new definitions thereto in the appropriate alphabetical order as follows: 
 “ContentCo”
means CD ContentCo HC, LLC, a Delaware limited liability company existing to hold Borrower’s interest in TrackNet Media Group, LLC, a Delaware limited liability company and joint venture formed by Borrower and Magna Entertainment Corp., a
Delaware corporation (“Magna”), which joint venture will consolidate racing signals, wagering rights, account wagering and related businesses of the Borrower and its Subsidiaries and third parties, including without limitation,
Magna. 
 “Florida Casino Project” means the real property located in Miami-Dade County, Florida and the construction and
development of a gaming and/or slot machine establishment thereon and related improvements, and other property and assets directly related or ancillary thereto or used in connection therewith, including, without limitation, any building, restaurant,
hotel, theater, parking facilities, retail shops, land, golf courses, and other recreation and entertainment facilities, marina, vessel, barge, ship and equipment, and all other property related thereto to the extent required under applicable gaming
laws, liquor laws or any other applicable laws to be registered with, or approved by, or not disapproved by, all applicable gaming authorities or liquor authorities or any other governmental authorities, as the case may be. 

 “HRTV” means CD HRTV HC, LLC, a Delaware limited liability company existing to hold
Borrower’s fifty percent (50%) interest in Magna’s horse racing channel HRTVTM, which channel engages or will engage in the production of television broadcast of racing signals and related businesses of the Borrower and its
Subsidiaries and third parties, including without limitation, Magna. 
 (b) Section 1.1 of the Credit Agreement is hereby amended to
restate the definition of “Permitted Investment” in its entirety as follows: 
 “Permitted Investment” means
(i) a possible investment of up to $90,000,000 in Wagerco; (ii) a possible investment of up to $10,000,0000 in ContentCo; and (iii) a possible investment of up to $10,000,000 in HRTV. 
 (c) Section 1.1 of the Credit Agreement is hereby amended to restate the following definitions in their entirety as follows: 
 “Consolidated Indebtedness” means at any time the Indebtedness of the Loan Parties calculated on a consolidated basis as of such time in
accordance with Agreement Accounting Principles. The Indebtedness of any Excluded Subsidiary shall not be included in Consolidated Indebtedness. 
 “Consolidated Net Income” means, with reference to any period, the net income (or loss) of all of the Loan Parties calculated on a consolidated basis for such period in accordance with Agreement Accounting Principles. The net
income (or loss) of any Excluded Subsidiary shall not be included in Consolidated Net Income. 
 “Consolidated Net Worth” means as
of any date of determination total stockholders’ equity of all of the Loan Parties as of such date determined and consolidated in accordance with Agreement Accounting Principles. The total stockholders’ equity of any Excluded Subsidiary
shall not be included in Consolidated Net Worth. 
 “Consolidated Rentals” means, with reference to any period, the Rentals of the
Loan Parties calculated on a consolidated basis for such period in accordance with Agreement Accounting Principles. The Rentals of any Excluded Subsidiary shall not be included in Consolidated Rentals. 
 “Excluded Subsidiaries” means any Excluded Entity which is a Subsidiary of any of the Loan Parties. The Excluded Subsidiaries on the date of
Amendment No. 1 to this Agreement are: Churchill Downs Pennsylvania Company (formerly known as Churchill Downs California Foodservices Company), Tracknet, LLC, Churchill Downs California Company, Churchill Downs California Fall Operating
Company, Fair Grounds International Ventures, L.L.C., a Louisiana limited liability company, F.G. Staffing Services, Inc., a Louisiana corporation, CD ContentCo HC, LLC, a Delaware limited liability company and CD HRTV HC, LLC, a Delaware limited
liability company. 
 (d) Section 2.1 is hereby amended to (x) delete in its entirety the sentence reading as follows: “On
the date of this Agreement, the amount of the Aggregate Commitment is $200,000,000.” and (y) delete the reference to “$250,000,000” appearing therein and substitute “$170,000,000” in lieu thereof. 
 (e) Each of Section 2.22.1 and Section 2.22.5 of the Credit Agreement is hereby amended to delete the reference to
“$250,000,000” appearing therein and substitute “$170,000,000” in lieu thereof. 
 (f) Section 5.5 of the Credit
Agreement is hereby amended to delete the reference to “December 31, 2004” appearing therein and substitute “December 31, 2006” in lieu thereof. 
 (g) Section 6.24.2 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 6.24.2 Leverage Ratio. The Borrower will not permit the Leverage Ratio, determined as of the end of each of its fiscal quarters, of (i) Consolidated Funded Indebtedness to (ii) Consolidated Adjusted EBITDA for the then
most-recently ended four fiscal quarters to be greater than 3.25 to 1.0; provided that, during the term of this Agreement, for a single period of eight (8) consecutive fiscal quarters, such period beginning with the fiscal quarter during
which the Borrower’s aggregate amount of Capital Expenditures in respect of the Florida Casino Project (from the inception of such project) exceeds $10,000,000, the Leverage Ratio may be greater than 3.25 to 1.0 but less than or equal to 4.0 to
1.0; provided that from and after the end of such period of consecutive fiscal quarters, the Leverage Ratio shall not be greater than 3.25 to 1.0. 
  

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 (h) Section 6.24.3 of the Credit Agreement is hereby amended and restated in its entirety as
follows: 
 6.24.3 Minimum Net Worth. The Borrower will at all times maintain Consolidated Net Worth of not less than
(a) $190,000,000 as of the Closing Date, and (b) beginning with Borrower’s fiscal year ending December 31, 2006, the sum of (i) $290,000,000 plus (ii) 50% of Consolidated Net Income earned in each fiscal year (without
deduction for losses), plus (iii) 100% of the proceeds from any public and/or private offering and/or sale of any common and/or preferred stock and/or other equity security, and/or any note, debenture, or other security convertible, in whole or
in part, to common and/or preferred stock and/or other equity security, net of reasonable expenses, commissions and fees associates with such sale, from and after the date of this Agreement. 
 (i) A new Section 6.37 is hereby inserted into the Credit Agreement immediately following the existing Section 6.36 as follows:

 6.37 Florida Casino Project Capital Expenditures. The Borrower will not, nor will it permit any of its Subsidiaries to, expend, or
be committed to expend, an aggregate amount in excess of $100,000,000 for Capital Expenditures in connection with the Florida Casino Project. As used herein, “Capital Expenditures” means, without duplication, any expenditure or
commitment to expend money for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Borrower and its Subsidiaries prepared in accordance with GAAP. 
 (j) Section 7.3 of the Credit Agreement is hereby amended to insert a reference to “and/or 6.37” at the end thereof. 
 (k) The Commitments of the Lenders are amended and restated as set forth on Exhibit A hereto. Each Departing Lender shall cease to be a Lender for
all purposes under the Credit Agreement. The Borrower hereby agrees to compensate each Lender (including each Departing Lender) for any and all losses, costs and expenses incurred by such Lender in connection with the sale and assignment of any
Eurodollar Loans and the reallocation described in Section 2(a) below, in each case on the terms and in the manner set forth in Section 3.4 of the Credit Agreement. 
 (l) The Pricing Schedule is hereby amended and restated in its entirety as set forth on Exhibit B hereto. Such Pricing Schedule shall be effective
as of the first Monday following the date hereof and, beginning on such date, the Applicable Margin and the Applicable Fee Rate shall be calculated by reference to such Pricing Schedule based on the Leverage Ratio reflected in the most recent
financial statements and compliance certificate delivered pursuant to Section 6.1 of the Credit Agreement and adjustments to the applicable Level shall thereafter be effected in accordance with the Pricing Schedule. 
 (m) Schedules 1, 2, 3, 4.1(i)(p), 4.1(i)(q), 5.22, 5.23, 5.24, 5.25 and
5.26 of the Credit Agreement are hereby amended and restated in their entirety as set forth on Annex I hereto. 
 2.
Conditions of Effectiveness. This Amendment shall become effective and be deemed effective as of the date hereof, if, and only if, (a) the Agent and the Lenders shall have administered the reallocation of the Aggregate
Outstanding Credit Exposure among the Lenders such that after giving effect to the amendments to 

  

 3 

 
the Commitments pursuant hereto, each Lender’s Pro Rata Share of the Aggregate Outstanding Credit Exposures is equal to such Lender’s Pro Rata
Share of the total Commitments, (b) the Agent shall have received (i) executed copies of this Amendment from the Borrower, the Guarantors and the Lenders (including each Departing Lender) and (ii) for the account of each Lender (other
than a Departing Lender) an amendment fee in the amount of $7,500. 
 3. Representations and Warranties of the Loan
Parties. The Loan Parties jointly and severally hereby represent and warrant as follows: 
 (a) Each Loan Party has the power and
authority and legal right to execute and deliver this Amendment and the Credit Agreement (as modified hereby) and to perform its obligations hereunder and thereunder. The execution and delivery by each Loan Party of this Amendment and the
performance of its obligations hereunder and under the Credit Agreement (as modified hereby) have been duly authorized by proper corporate proceedings, and this Amendment and the Credit Agreement (as modified hereby) constitute legal, valid and
binding obligations of such Loan Party, enforceable against such Loan Party in accordance with its terms except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally. 
 (b) As of the date hereof and giving effect to the terms of this Amendment, (i) no Default or Unmatured Default has occurred and is continuing and
(ii) the representations and warranties of the Loan Parties set forth in the Credit Agreement (as modified hereby) and the other Loan Documents are true and correct in all material respects except to the extent any such representation or
warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall have been true and correct on and as of such earlier date. 
 4. Reference to and Effect on the Credit Agreement and Loan Documents. 
 (a) Upon the
effectiveness of this Amendment, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as modified hereby. This Amendment is a Loan Document pursuant to the
Credit Agreement and shall (unless expressly indicated herein or therein) be construed, administered, and applied, in accordance with all of the terms and provisions of the Credit Agreement. 
 (b) Each Loan Party, by its signature below, hereby (i) agrees that this Amendment and the transactions contemplated hereby shall not limit or
diminish the obligations of the Company arising under or pursuant to the Credit Agreement and the other Loan Documents to which it is a party, (ii) reaffirms all of its obligations under the Credit Agreement and each and every other Loan
Document to which it is a party (including, without limitation, each applicable Collateral Document), (iii) reaffirms all Liens on the Collateral which have been granted by it in favor of the Administrative Agent (for itself and the Lenders)
pursuant to any of the Loan Documents, and (iv) acknowledges and agrees that, except as specifically modified above, the Credit Agreement and all other Loan Documents executed and/or delivered in connection therewith shall remain in full force
and effect and are hereby reaffirmed, ratified and confirmed. 
 (c) The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of or consent to any modification of any provision of the Credit Agreement or any other Loan
Documents executed and/or delivered in connection therewith. 
 5. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE COMMONWEALTH OF KENTUCKY, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS. 
 6. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose. 
  

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 7. Counterparts. This Amendment may be executed by one or more of the parties hereto
on any number of separate counterparts (including by means of facsimile or electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
 ******* 
 IN WITNESS WHEREOF, this Amendment
has been duly executed as of the day and year first above written. 
  

			
	Borrower:
	
	CHURCHILL DOWNS INCORPORATED
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	VP Finance & Treasurer
	
	Guarantors:
	
	CHURCHILL DOWNS MANAGEMENT COMPANY
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	CHURCHILL DOWNS INVESTMENT COMPANY
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	CHURCHILL DOWNS SIMULCAST PRODUCTIONS, LLC
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	CHARLSON INDUSTRIES, INC.
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer

  

 5 

			
	CALDER RACE COURSE, INC.
		
	By:	 	 /s/ Steven P. Sexton

	Name:	 	Steven P. Sexton
	Title:	 	Vice President
	
	TROPICAL PARK, INC.
		
	By:	 	 /s/ Steven P. Sexton

	Name:	 	Steven P. Sexton
	Title:	 	Vice President
	
	ARLINGTON PARK RACECOURSE, LLC
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	ARLINGTON OTB CORP.
		
	By:	 	 /s/ Debra A. Wood

	Name:	 	Debbie A. Wood
	Title:	 	Secretary
	
	QUAD CITY DOWNS, INC.
		
	By:	 	 /s/ Debra A. Wood

	Name:	 	Debbie A. Wood
	Title:	 	Secretary

			
	CDIP, LLC
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	CDIP HOLDINGS, LLC
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	CHURCHILL DOWNS LOUISIANA HORSERACING COMPANY, L.L.C.
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	CHURCHILL DOWNS LOUISIANA VIDEO POKER COMPANY, L.L.C.
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer
	
	VIDEO SERVICES, INC.
		
	By:	 	 /s/ Michael Anderson

	Name:	 	Michael Anderson
	Title:	 	Treasurer

			
	 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
 as a Lender, as Agent and as Collateral Agent

		
	By:	 	 /s/ H. J. Brenner

	Name:	 	H. J. Brenner
	Title:	 	S.V.P.

			
	 PNC BANK, NATIONAL ASSOCIATION,
 as a Lender,
as LC Issuer and as Syndication Agent

		
	By:	 	 /s/ Shelly B. Stephenson

	Name:	 	Shelly B. Stephenson
	Title:	 	Vice President

			
	 NATIONAL CITY BANK (successor in interest to National City Bank of Kentucky),
 as a Lender and as Documentation Agent

		
	By:	 	 /s/ Rob King

	Name:	 	Rob King
	Title:	 	Senior Vice President

			
	 FIFTH THIRD BANK, KENTUCKY, INC.,
 as a
Lender

		
	By:	 	 /s/ David O’Neal

	Name:	 	David O’Neal
	Title:	 	Vice President

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as a Lender

		
	By:	 	 /s/ Mark Wheeler

	Name:	 	Mark Wheeler
	Title:	 	Executive Vice President

			
	 BANK OF AMERICA, N.A.,
 as a Departing Lender

		
	By:	 	 /s/ Lisa B. Barksdale

	Name:	 	Lisa B. Barksdale
	Title:	 	V.P.

			
	 BRANCH BANKING & TRUST COMPANY,
 as a
Departing Lender

		
	By:	 	 /s/ Johnny L. Perry

	Name:	 	Johnny L. Perry
	Title:	 	Senior Vice President

			
	 COMERICA BANK,
 as a Departing
Lender

		
	By:	 	 /s/ Heather Whiting

	Name:	 	Heather Whiting
	Title:	 	Vice President

			
	 SUNTRUST BANK,
 as a Departing
Lender

		
	By:	 	 /s/ Kap Yarbrough

	Name:	 	Kap Yarbrough
	Title:	 	Vice President

 EXHIBIT A 
  

				
	 Lender
	  	Commitment
	 JPMorgan Chase Bank, National Association
	  	$	30,000,000
	 PNC Bank, National Association
	  	$	30,000,000
	 National City Bank
	  	$	20,000,000
	 Fifth Third Bank, Kentucky, Inc.
	  	$	20,000,000
	 U.S. Bank National Association
	  	$	20,000,000
	 TOTAL:
	  	$	120,000,000

 EXHIBIT B 
 PRICING SCHEDULE 
  

																						
	 Applicable Margin
	  	Level I
Status	 	 	Level II
Status	 	 	Level III
Status	 	 	Level IV
Status	 	 	Level V
Status	 	 	Level VI
Status	 	 	Level VII
Status	 
	 Eurodollar Rate
	  	0.50	% 	 	0.625	% 	 	0.75	% 	 	0.875	% 	 	1.00	% 	 	1.25	% 	 	1.50	% 
	 Floating Rate
	  	0	% 	 	0	% 	 	0	% 	 	0	% 	 	0	% 	 	0	% 	 	0	% 
								
	 Applicable Fee Rate
	  	Level I
Status	 	 	Level II
Status	 	 	Level III
Status	 	 	Level IV
Status	 	 	Level V
Status	 	 	Level VI
Status	 	 	Level VII
Status	 
	 Commitment Fee
	  	0.10	% 	 	0.12	% 	 	0.15	% 	 	0.15	% 	 	0.20	% 	 	0.20	% 	 	0.25	% 

 For the purposes of this Schedule, the following terms have the following meanings, subject to the
final paragraph of this Schedule: 
 “Financials” means the annual or quarterly financial statements of the Borrower delivered
pursuant to Section 6.1(i) or (ii). 
 “Level I Status” exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, the Leverage Ratio is less than 1.00 to 1.00. 
 “Level II Status” exists at
any date if, as of the last day of the fiscal quarter of the Borrower referred to in the most recent Financials, (i) the Borrower has not qualified for Level I Status and (ii) the Leverage Ratio is greater than or equal to 1.00 to 1.00 and
less than 1.50 to 1.00. 
 “Level III Status” exists at any date if, as of the last day of the fiscal quarter of the Borrower
referred to in the most recent Financials, (i) the Borrower has not qualified for Level I Status or Level II Status and (ii) the Leverage Ratio is greater than or equal to 1.50 to 1.00 and less than 2.00 to 1.00. 
 “Level IV Status” exists at any date if, as of the last day of the fiscal quarter of the Borrower referred to in the most recent Financials,
(i) the Borrower has not qualified for Level I Status or Level II Status and (ii) the Leverage Ratio is greater than or equal to 2.00 to 1.00 and less than 2.50 to 1.00. 
 “Level V Status” exists at any date if, as of the last day of the fiscal quarter of the Borrower referred to in the most recent Financials,
(i) the Borrower has not qualified for Level I Status or Level II Status and (ii) the Leverage Ratio is greater than or equal to 2.50 to 1.00 and less than 3.00 to 1.00. 

 “Level VI Status” exists at any date if, as of the last day of the fiscal quarter of the
Borrower referred to in the most recent Financials, (i) the Borrower has not qualified for Level I Status or Level II Status and (ii) the Leverage Ratio is greater than or equal to 3.00 to 1.00 and less than 3.25 to 1.00. 
 “Level VII Status” exists at any date if the Borrower has not qualified for Level I Status, Level II Status, Level III Status, Level IV Status,
Level V Status or Level VI Status. 
 “Status” means either Level I Status, Level II Status, Level III Status, Level IV Status,
Level V Status, Level VI Status and Level VII Status. 
 The Applicable Margin and Applicable Fee Rate shall be determined in accordance with
the foregoing table based on the Borrower’s Status, adjusted quarterly and measured on the most recent four fiscal quarters ending on the determination date as reflected in the then most recent Financials. Adjustments, if any, to the Applicable
Margin or Applicable Fee Rate shall be effective five Business Days after the Agent has received the applicable Financials. If the Borrower fails to deliver the Financials to the Agent at the time required pursuant to Section 6.1, then the
Applicable Margin and Applicable Fee Rate shall be the highest Applicable Margin and Applicable Fee Rate set forth in the foregoing table until five days after such Financials are so delivered. 
  

 19 

 SCHEDULE 1 
 SUBSIDIARIES AND OTHER INVESTMENTS 
  

			
	Name:	 	Churchill Downs Management Company
	Jurisdiction:	 	Kentucky
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	20 shares
	Owner:	 	Churchill Downs Incorporated
		
	Name:	 	Arlington Park Racecourse, LLC
	Jurisdiction:	 	Illinois
	Membership Interest:	 	100%
	Owner:	 	Churchill Downs Incorporated
		
	Name:	 	Arlington OTB Corp.
	Jurisdiction:	 	Delaware
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	10
	Owner:	 	Arlington Park Racecourse, LLC
		
	Name:	 	Quad City Downs, Inc.
	Jurisdiction:	 	Iowa
	Authorized Capital Stock:	 	900,000 shares Common A
		 	900,000 shares Common B
	Issued Shares:	 	315,800 shares Common A
	Owner:	 	Arlington Park Racecourse, LLC
		 	(result of merger with Arlington Management Services, LLC effective 12/31/2006)
		
	Name:	 	Churchill Downs California Company
	Jurisdiction:	 	Kentucky
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	100 shares
	Owner:	 	Churchill Downs Incorporated (100%)
		
	Name:	 	Churchill Downs California Fall Operating Company
	Jurisdiction:	 	Kentucky
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	100 shares
	Owner:	 	Churchill Downs Incorporated (100%)

  

 Schedule 1 
 Page 1

			
	Name:	 	Churchill Downs Pennsylvania Company
	Jurisdiction:	 	Kentucky
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	100 shares
	Owner:	 	Churchill Downs Incorporated (100%)
		
	Name:	 	Calder Race Course, Inc.
	Jurisdiction:	 	Florida
	Authorized Capital Stock:	 	800,000 shares Common
		 	190 shares Preferred
	Issued Shares:	 	667,440 shares Common
	Owner:	 	Churchill Downs Management Company (100%)
		
	Name:	 	Tropical Park, Inc.
	Jurisdiction:	 	Florida
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	195 shares
	Owner:	 	Churchill Downs Management Company (100%)
		
	Name:	 	Churchill Downs Louisiana Horseracing Company, L.L.C.
	Jurisdiction:	 	Louisiana
	Membership Interest:	 	Uncertificated units (100%)
	Owner:	 	Churchill Downs Management Company
		
	Name:	 	Churchill Downs Louisiana Video Poker Company, L.L.C.
	Jurisdiction:	 	Louisiana
	Membership Interest:	 	Uncertificated units (100%)
	Owner:	 	Churchill Downs Management Company
		
	Name:	 	Video Services, Inc.
	Jurisdiction:	 	Louisiana
	Authorized Capital Stock:	 	510 Shares Class A (non-voting) Common
		 	490 Shares Class B (voting) Common
	Issued Shares:	 	510 Shares Class A (non-voting) Common
		 	490 Shares Class B (voting) Common
	Owner:	 	Churchill Downs Louisiana Video Poker Company, L.L.C. (100%)

  

 Schedule 1 
 Page 2

			
	Name:	 	CDIP Holdings, LLC
	Jurisdiction:	 	Kentucky
	Membership Interest:	 	Uncertificated units
	Owner:	 	99% Churchill Downs Incorporated
		 	1% Churchill Downs Management Company
		
	Name:	 	CDIP, LLC
	Jurisdiction:	 	Kentucky
	Membership Interest:	 	Uncertificated units
	Owner:	 	CDIP Holdings, LLC (100%)
		
	Name:	 	Churchill Downs Investment Company
	Jurisdiction:	 	Kentucky
	Authorized Capital Stock:	 	1,000 shares Common
	Issued Shares:	 	20 shares
	Owner:	 	Churchill Downs Incorporated (100%)
		
	Name:	 	Churchill Downs Simulcast Productions, LLC
		 	(f/k/a Charlson Broadcast Technologies, LLC)
	Jurisdiction:	 	Kentucky
	Membership Interest:	 	Uncertificated units
	Owner:	 	51% owned by Churchill Downs Investment Company
		 	49% owned by Charlson Industries, Inc.
		
	Name:	 	Charlson Industries, Inc.
	Jurisdiction:	 	Ohio
	Authorized Capital Stock:	 	600 shares Common
	Issued Shares:	 	489 shares owned by Charlson Broadcast Technologies, LLC
(n/k/a Churchill Downs Simulcast Productions, LLC)
		 	111 shares to Churchill Downs Investment Company
		
	Name:	 	RWHC, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Investment Company (80%)
		 	Keeneland Association, Inc. (20%)
		
	Name:	 	NYRHC, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Investment Company (100%)

  

 Schedule 1 
 Page 3

			
	Name:	 	CD ContentCo HC, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Investment Company (100%)
		
	Name:	 	CD HRTV HC, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Investment Company (100%)
		
	Name:	 	TrackNet Media Group, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	CD ContentCo HC, LLC (50%)
		 	Remaining 50% owned by Magna Entertainment Company (or an affiliate or subsidiary thereof)
		
	Name:	 	HRTV, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	CD HRTV HC, LLC (50%)
		 	Remaining 50% owned by Magna Entertainment Company (or an affiliate or subsidiary thereof)
		
	Name:	 	Kentucky Off-Track Betting, LLC
	Jurisdiction:	 	Kentucky
	Membership Interest:	 	Uncertificated units
	Owner:	 	25% owned by Churchill Downs Incorporated
		 	25% owned by Ellis Park Racecourse, Inc.
		 	25% owned by Turfway Park LLC
		 	25% owned by Keeneland Association, Inc.
		
	Name:	 	Tracknet, LLC
	Jurisdiction:	 	Kentucky
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Investment Company (100%)

  

 Schedule 1 
 Page 4

			
	Name:	 	CDIP, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Incorporated (100%)
		
	Name:	 	Churchill Downs Technology Initiatives Company
	Jurisdiction:	 	Delaware
	Authorized Capital Stock:	 	1000 shares Common
	Issued Shares:	 	100 shares to Churchill Downs Incorporated (100%)
		
	Name:	 	Fair Grounds International Ventures, L.L.C.
	Jurisdiction:	 	Louisiana
	Membership Interest:	 	Uncertificated units
	Owner:	 	Churchill Downs Louisiana Horseracing
		 	Company, L.L.C.
		
	Name:	 	F.G. Staffing Services, Inc.
	Jurisdiction:	 	Louisiana
	Authorized Capital Stock:	 	10,000 shares Common
	Owner:	 	100 shares to Churchill Downs Louisiana Horseracing
		 	Company, L.L.C. (100%)
		
	Name:	 	Nasrin Services, LLC
	Jurisdiction:	 	Delaware
	Membership Interest:	 	100%
	Owner:	 	70% owned by Autotote Systems, Inc.
		 	30% owned by Tracknet, LLC
		
	Name:	 	Kentucky Downs, LLC
	Jurisdiction:	 	Kentucky
	Membership Interest:	 	Uncertificated units
	Owner:	 	5% owned by Churchill Downs Incorporated
		
		 	Note: A transaction is pending pursuant to which Kentucky Downs Partners, LLC is purchasing a 71% interest in Kentucky Downs, LLC from Kelley Farms and a 14% interest from Turfway Park
(Turfway will retain a 10% interest after the transaction closes).

 SEE ALSO SCHEDULE 3 
  

 Schedule 1 
 Page 5

 SCHEDULE 2 
 INDEBTEDNESS AND 
 EXISTING LIENS ON COLLATERAL 
 5.14 Liens: 
 Those granted pursuant to the Credit Agreement dated
April 3, 2003 and the following liens: 
  

							
	 Secured Party
	  	 Collateral
	  	 Debtor
	  	 File Date

	Ameritech Credit Corp.	  	Telecommunications and data equipment	  	Churchill Downs Incorporated	  	 2/25/02
 (lapsed)

	Deere Credit, Inc.	  	Tractors	  	Churchill Downs Incorporated	  	4/2/03
	Deere Credit, Inc.	  	Tractors	  	Churchill Downs Incorporated	  	4/2/03
	Deere Credit, Inc.	  	Tractors	  	Churchill Downs Incorporated	  	3/16/04
	Deere Credit, Inc.	  	Tractor	  	Churchill Downs Incorporated	  	3/29/04
	Deere Credit, Inc.	  	Tractor	  	Churchill Downs Incorporated	  	4/10/06
	Deere Credit, Inc.	  	Tractor	  	Churchill Downs Incorporated	  	4/10/06
	Deere Credit, Inc.	  	Tractor	  	Churchill Downs Incorporated	  	1/17/07
	Deere Credit, Inc.	  	Tractor	  	Churchill Downs Incorporated	  	3/29/07
	Deere Credit, Inc.	  	Tractor	  	Churchill Downs Incorporated	  	4/4/07
	Marlin Leasing Corp.	  	Copiers and Printers	  	Churchill Downs Incorporated	  	10/27/06
	US Bancorp	  	Lease #981801 E-studio	  	Churchill Downs Incorporated	  	9/8/03
	US Bancorp	  	Copiers	  	Churchill Downs Incorporated	  	1/3/07
	US Bancorp	  	Copier Accessories	  	Churchill Downs Incorporated	  	2/14/07
	John Deere Construction & Forestry Company	  	Grader	  	Calder Race Course, Inc.	  	3/18/04
	Deere Credit, Inc.	  	Tractors	  	Calder Race Course, Inc.	  	5/18/04
	Deere Credit, Inc.	  	Tractors	  	Calder Race Course, Inc.	  	8/8/05

  

 Schedule 2 
 Page 1 of 3

							
	Deere Credit, Inc.	  	Tractors	  	Calder Race Course, Inc.	  	6/8/06
	State of Florida Dept. of Labor & Employment Security	  	Contribution due to Unemployment Compensation Fund	  	Calder Race Course, Inc.	  	6/13/00
				
	FPC Funding II LLC	  	Equipment Lease #22208801	  	Arlington Park Racecourse, LLC	  	12/15/04
	US Bancorp	  	Copiers	  	Arlington Park Racecourse, LLC	  	9/12/05
				
	American Express Business Finance	  	 Equipment Lease
 #608744/A#1058993
	  	Quad City Downs, Inc.	  	8/5/04
	American Express Business Finance	  	 Equipment Lease
 #608744/A#1058993
	  	Quad City Downs, Inc.	  	8/18/04
				
	Marlin Leasing Corp.	  	Copiers and Printers	  	Churchill Downs Louisiana Horseracing Company, L.L.C.	  	1/20/06
	Marlin Leasing Corp.	  	Copiers and Printers	  	Churchill Downs Louisiana Horseracing Company, L.L.C.	  	7/7/06
	Marlin Leasing Corp.	  	Copiers and Printers	  	Churchill Downs Louisiana Horseracing Company, L.L.C.	  	10/30/06
	State of Louisiana Dept. of Labor, Office of Regulatory Services	  	Contributions due	  	Churchill Downs Louisiana Horseracing Company, L.L.C.	  	12/08/06
				
	Fifth Third Bank	  	All assets and personal property	  	Charlson Broadcast Technologies, LLC	  	 9/5/01;
 cont. stmt. filed
 5/8/06

  

 Schedule 2 
 Page 2 of 3

 Section 6.10 (ii) Indebtedness: 
  

						
	 Convertible note payable
	  	$	12,832,605	  	Brad Kelly note payable for stock redemption (monthly amortization of $35,039)

  

 Schedule 2 
 Page 3 of 3

 SCHEDULE 3 
 LESS THAN 100% SUBSIDIARIES 
  

			
	Name:	  	TrackNet Media Group, LLC
	Jurisdiction:	  	Delaware
	Membership Interest:	  	50%
	Owner:	  	CD ContentCo HC, LLC
		
	Name:	  	HRTV, LLC
	Jurisdiction:	  	Delaware
	Membership Interest:	  	50%
	Owner:	  	CD HRTV HC, LLC
		
	Name:	  	RWHC, LLC
	Jurisdiction:	  	Delaware
	Membership Interest:	  	80%
	Owner:	  	Churchill Downs Investment Company
		
	Name:	  	Kentucky Off-Track Betting, LLC
	Jurisdiction:	  	Kentucky
	Membership Interest:	  	25%
	Owner:	  	Churchill Downs Incorporated
		
	Name:	  	Nasrin Services, LLC
	Jurisdiction:	  	Delaware
	Membership Interest:	  	30%
	Owner:	  	Tracknet, LLC
		
	Name:	  	Kentucky Downs, LLC
	Jurisdiction:	  	Kentucky
	Membership Interest:	  	5%
	Owner:	  	Churchill Downs Incorporated
		
	Name:	  	Triple Crown Productions, LLC
	Membership Interest:	  	33.33% owned by Churchill Downs Incorporated
		
	Name:	  	Parkland Partners Limited
	Membership Interest:	  	33.10% owned by Churchill Downs Incorporated

  

 Schedule 3 
 Page 1

			
	Name:	  	Equibase Holding Partners, LP
	Membership Interest:	  	5.64% owned by Churchill Downs Incorporated
		
	Name:	  	ODS Technologies, LP (TVG)
	Membership Interest:	  	3.166% owned by Churchill Downs Incorporated

  

 Schedule 3 
 Page 2

 SCHEDULE 4.1(i)(p) 
 SEARCHES OF PERSONAL PROPERTY RECORDS 
 WITH AGENCIES

  

					
	 Debtor
	  	 Jurisdictions Searched
	  	 Type of Search

			
	Churchill Downs Incorporated	  	Kentucky Secretary of State	  	UCC
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments
			
	Churchill Downs Management Company	  	Kentucky Secretary of State	  	UCC
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments
			
	Churchill Downs Investment Company	  	Kentucky Secretary of State	  	UCC
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments
			
	Calder Race Course, Inc.	  	Florida Secured Transaction Registy	  	UCC
		  	Florida Department of State	  	Federal Tax Liens & Judgment Liens
		  	Dade County Circuit Court	  	Federal & State Tax Liens & Local Judgments
			
	Tropical Park, Inc.	  	Florida Secured Transaction Registy	  	UCC
		  	Florida Department of State	  	Federal Tax Liens & Judgment Liens
		  	Dade County Circuit Court	  	Federal & State Tax Liens & Local Judgments
			
	Arlington Park Racecourse, LLC	  	Illinois Secretary of State	  	UCC & Federal Tax Liens
		  	Cook, Winnebago, & Rock Island County Recorders	  	Federal & State Tax Liens & Local Judgments
			
	Arlington Management Services, LLC	  	Illinois Secretary of State	  	UCC & Federal Tax Liens
		  	Cook, Winnebago, & Rock Island County Recorders	  	Federal & State Tax Liens & Local Judgments
			
	Arlington OTB Corp.	  	Delaware Secretary of State	  	UCC & Federal Tax Liens
		  	Illinois Secretary of State	  	UCC & Federal Tax Liens
		  	Cook, Winnebago, & Rock Island County Recorders	  	Federal & State Tax Liens & Local Judgments

  

 Schedule 4.1(i)(p) 
 Page 1
of 2 

					
	Quad City Downs, Inc.	  	Iowa Secretary of State	  	UCC & Federal Tax Liens
		  	Illinois Secretary of State	  	UCC & Federal Tax Liens
		  	Rock Island County Recorder	  	Federal & State Tax Liens & Local Judgments
			
	CDIP, LLC	  	Kentucky Secretary of State	  	UCC
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments
			
	CDIP Holdings, LLC	  	Kentucky Secretary of State	  	UCC
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments
			
	Churchill Downs Louisiana Horseracing Company, L.L.C.	  	East Baton Rouge Parish Clerk of Court	  	UCC
		  	Jefferson Parish Clerk of Court & Orleans Parish Clerk of Court	  	Federal & State Tax Liens & Local Judgments
			
	Churchill Downs Louisiana Video Poker Company, L.L.C.	  	East Baton Rouge Parish Clerk of Court	  	UCC
		  	Jefferson Parish Clerk of Court & Orleans Parish Clerk of Court	  	Federal & State Tax Liens & Local Judgments
			
	Video Services, Inc.	  	East Baton Rouge Parish Clerk of Court	  	UCC
		  	Jefferson Parish Clerk of Court & Orleans Parish Clerk of Court	  	Federal & State Tax Liens & Local Judgments
			
	Churchill Downs Simulcast Productions, LLC f/k/a Charlson Broadcast Technologies, LLC	  	Kentucky Secretary of State	  	UCC
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments
			
	Charlson Industries, Inc.	  	Ohio Secretary of State	  	UCC
		  	Hamilton County Recorder; Hamilton County Court of Common Pleas	  	Federal Tax Liens; State Tax Liens & Local Judgments
		  	Jefferson County Clerk	  	Federal & State Tax Liens & Local Judgments

  

 Schedule 4.1(i)(p) 
 Page 2
of 2 

 SCHEDULE 4.1(i)(q) 
 THIRD PARTY CONSENTS 
 Louisiana Gaming Control Board – Pursuant to LA R.S. 42:XIII
§ 2523(C)(5), by letter dated March 27, 2007, the Louisiana Gaming Control Board has determined that the modification of the Credit Facility does not substantially alter the terms of Churchill’s existing line of credit which was
previously approved and has waived any requirement for its approval. 

 SCHEDULE 5.22 
 INTELLECTUAL PROPERTY 
 CHURCHILL DOWNS INCORPORATED 
  

			
	Patents:	  	none
		
	Trademarks:	  	

  

					
	Federal Registrations:	 		  	
			
	CDSN	 		  	Reg. No. 2,682,320
	Churchill Charlie	 		  	Reg. No. 2,222,444
	Churchill Charlie Design only	 		  	Reg. No. 2,231,670
	Green Pastures Program	 		  	Reg. No. 2,706,752
	Green Pastures Program & Design	 		  	Reg. No. 2,690,637
	Junior Jockey Club	 		  	Reg. No. 2,443,645
	Road to the Roses	 		  	Reg. No. 2,744,388
	The World’s Most Legendary Racetrack	 		  	Reg. No. 2,071,030
	Twin Spires Logo (design only)	 		  	Reg. No. 2,565,972
		 		  	Reg. No. 2,568,139
			
	Federal Applications:	 		  	
			
	OAKS LILY	 		  	App. No. 78/868,795
	TWINSPIRES	 		  	App. No. 77/121,921
	TWINSPIRES (logo)	 		  	App. No. 77/121,932
			
	State Registrations:	 		  	
			
	Dawn at the Downs and Design	 	*	  	Kentucky No. 10852
	Run for the Roses and Design	 	*	  	Kentucky No. 08682
	Kentucky Sampler and Design	 	*	  	Kentucky No. 09309

  

			
	Copyright Registrations:	  	

  

			
	Kentucky Derby 113 logo	  	Reg. No. VA256465
	Kentucky Derby 114 logo	  	Reg. No. VA300797
	Kentucky Derby 115 logo	  	Reg. No. VA318109
	Kentucky Derby 116 logo	  	Reg. No. VA388760
	Kentucky Derby 117 logo	  	Reg. No. VA432815
	Kentucky Derby 118 logo	  	Reg. No. VA487209
	Kentucky Derby 119 logo	  	Reg. No. VA528216
	Kentucky Derby 120 logo	  	Reg. No. VA637781

  

 Schedule 5.22 
 Page 1

					
	Kentucky Derby 121 logo	 		  	Reg. No. VA680014
	Kentucky Derby 122 logo	 		  	Reg. No. VA760665
	Kentucky Derby 123 logo	 		  	Reg. No. VA846345
	Kentucky Derby 124 logo	 		  	Reg. No. VA911899
	Kentucky Derby 125 logo	 		  	Reg. No. VA981153
	Kentucky Derby 126 logo	 		  	Reg. No. VA982217
	Kentucky Derby 127 logo	 		  	Reg. No. VA1076482
	Kentucky Derby 128 logo	 		  	Reg. No. VA1128464
	Kentucky Derby 129 logo	 		  	Reg. No. VA1188676
	Kentucky Derby 130 logo	 		  	Reg. No. VA1262443
	Kentucky Derby 131 logo	 		  	
	Kentucky Derby 132 logo	 		  	
	Kentucky Derby 133 logo	 		  	
			
	Kentucky Derby Trophy design	 		  	

  

			
		
	Licensing Agreements:	  	none

 CHURCHILL DOWNS MANAGEMENT COMPANY 
  

			
	Patents:	  	none
		
	Trademarks:	  	none
		
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

 CHURCHILL DOWNS INVESTMENT COMPANY 
  

			
	Patents:	  	none
		
	Trademarks:	  	none
		
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

  

 Schedule 5.22 
 Page 2

 CALDER RACE COURSE, INC. 
  

			
	Patents:	  	none

 Trademarks: 
  

					
	State Registrations:	 		  	
			
	Grand Slam Stakes and Design	 	*	  	Florida No. T94,610
			
	Common Law:	 		  	
			
	Festival of the Sun and Design	 		  	
	Summit of Speed	 		  	

  

			
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

 TROPICAL PARK, INC. 
  

			
	Patents:	  	none

 Trademarks: 
  

			
	Common Law:	  	
		
	Tropical Park	  	

  

			
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

  

 Schedule 5.22 
 Page 3

 ARLINGTON PARK RACECOURSE, LLC 
  

			
	Patents:	  	none

 Trademarks: 
  

					
	Federal Registrations:	 		  	
			
	A and Design	 	*	  	Reg. No. 1,643,068
	A-Club	 	*	  	Reg. No. 2,575,234
	American Derby	 	*	  	Reg. No. 1,977,761
	Arlington and Design	 	*	  	Reg. No. 1,643,066
	Arlington Classic	 	*	  	Reg. No. 1,955,925
	Arlington Handicap	 	*	  	Reg. No. 1,972,394
	Arlington International Racecourse And Design	 	*	  	Reg. No. 1,696,540
	Arlington Matron Handicap	 	*	  	Reg. No. 1,969,474
	Arlington Million	 		  	Reg. No. 1,643,067
	Arlington Million X and Design	 		  	Reg. No. 1,665,281
	Arlington Park	 		  	Reg. No. 2,649,941
	Arlington-Washington Futurity	 	*	  	Reg. No. 1,955,931
	Arlington-Washington Lassie	 	*	  	Reg. No. 1,933,051
	Beverly D.	 	*	  	Reg. No. 1,922,590
	Hanshin Handicap	 	*	  	Reg. No. 1,967,951
	Inside Rail	 	*	  	Reg. No. 2,437,269
	International Festival of Racing	 	*	  	Reg. No. 1,473,710
		 		  	Reg. No. 1,980,602
	Modesty Handicap	 	*	  	Reg. No. 1,957,400
	Mud Bug OTB Chicago & Design	 	*	  	Reg. No. 2,415,761
	Pucker Up Stakes	 	*	  	Reg. No. 1,957,401
	Round Table Stakes	 	*	  	Reg. No. 1,952,704
	Sea O’Erin Handicap	 	*	  	Reg. No. 1,928,105
	Secretariat	 	*	  	Reg. No. 1,986,605
	Springfield Stakes	 	*	  	Reg. No. 1,975,924
	Washington Park Handicap	 	*	  	Reg. No. 1,952,705

  

			
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

  

 Schedule 5.22 
 Page 4

 ARLINGTON OTB CORP. 
  

			
	Patents:	  	none
		
	Trademarks:	  	none
		
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

 QUAD CITY DOWNS, INC. 
  

			
	Patents:	  	none
		
	Trademarks:	  	none
		
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

 CDIP, LLC 
  

			
	Patents:	  	none

 Trademarks: 
  

					
	Federal Registrations:	 		  	
			
	Churchill Downs	 		  	Reg. No. 1,011,127
		 		  	Reg. No. 1,557,889
	Kentucky Derby	 		  	Reg. No. 0,997,385
	Kentucky Oaks	 		  	Reg. No. 1,713,541
	The Kentucky Derby	 		  	Reg. No. 1,534,197
			
	State Registrations:	 		  	
			
	Finish Line Off Track Betting	 	*	  	Louisiana Trade Name

  

			
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

  

 Schedule 5.22 
 Page 5

 CDIP HOLDINGS, LLC 
  

			
	Patents:	  	none
		
	Trademarks:	  	none
		
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

 CHURCHILL DOWNS LOUISIANA HORSERACING COMPANY, L.L.C. 
  

			
	Patents:	  	none

 Trademarks: 
  

					
	Federal Registrations:	 		  	
			
	Fair Grounds	 		  	Reg. No. 2,774,532
	Fair Grounds Race Course	 		  	Reg. No. 2,774,434
	Fair Grounds	 	*	  	Reg. No. 2,776,307
	Fair Grounds Net Bet	 	*	  	Reg. No. 2,765,008
	Fair Grounds Phone Bet	 	*	  	Reg. No. 2,782,522
	Fair Grounds Race Course	 	*	  	Reg. No. 2,756,768
	Fair Grounds Race Course	 	*	  	Reg. No. 2,756,769
	Fair Grounds Race Course	 	*	  	Reg. No. 2,759,489
	FGNETBET	 	*	  	Reg. No. 2,935,274
	FGNETBET.COM	 	*	  	Reg. No. 2,938,503
	Horsehead Design	 	*	  	Reg. No. 2,764,847
	Horsehead Design	 	*	  	Reg. No. 2,717,830
	Horsehead Design	 	*	  	Reg. No. 2,717,831
	Horsehead Design	 	*	  	Reg. No. 2,717,934
	Horsehead Design	 	*	  	Reg. No. 2,719,778
	Horsehead Design	 	*	  	Reg. No. 2,719,779
	Net Bet	 	*	  	Reg. No. 2,885,332
	New Orleans Fair Grounds	 	*	  	Reg. No. 2,774,533
			
	Common Law:	 		  	
			
	Fair Grounds OTB & Casino	 		  	

  

 Schedule 5.22 
 Page 6

 VIDEO SERVICES, INC. 
  

			
	Patents:	  	none

 Trademarks: 
  

					
	State Registrations:	 		  	
			
	Rockin’ Horse Game Room	 	*	  	Louisiana Trademark

  

			
	Copyright Registrations:	  	none
		
	Licensing Agreements:	  	none

  

	*	The company expects to abandon, not renew the registration with respect thereto, or otherwise dispose of these marks. 

  

 Schedule 5.22 
 Page 7

 SCHEDULE 5.23 
 CHURCHILL DOWNS INCORPORATED PROPERTIES 
 COMMERCIAL LIABILITY COVERED LOCATIONS

  

					
	1.	  	Churchill Downs/Trackside	  	700 Central Ave., Louisville, KY
			
	2.	  	Training Facility/Former Trackside	  	 4520 Poplar Level Road, Louisville, KY
 (4400
Brietenstein Ave.)

			
	3.	  	Racing Office Property	  	3750 Oakdale Avenue ( also 3744, 3747, 3748 )
		  	(formerly a church)	  	
			
	4	  	Calder Race Course	  	21001 NW 27th Ave., Miami, FL

			
	5.	  	Arlington Park	  	2200 Euclid Avenue, Arlington Heights, IL 60006
			
	6.	  	Trackside-Arlington Heights	  	2000 W. Euclid Avenue, Arlington Heights, IL 60006
			
	7.	  	Trackside-Rockford	  	5011 E. State St., Rockford, IL 61108
			
	8.	  	Trackside-Waukegan	  	630 S. Green Bay, Waukegan, IL
			
	9.	  	Trackside-Chicago	  	901 W. Weed St., Chicago, IL 60622
			
	10.	  	Trackside-Quad City Downs	  	5005 Morton Drive, E. Moline, IL
			
	11.	  	Trackside-South Elgin	  	335 N. McLean Blvd., Elgin, IL 60177
			
	12.	  	Trackside- McHenry	  	621 Ridgeview Drive, McHenry, IL 60050
			
	13.	  	Trackside-So. Beloit	  	1322 Gardner St., So. Beloit, IL 61080
			
	14.	  	Trackside-Lockport	  	1225 E. 9th Street, Lockport,
IL 60441
			
	15.	  	Fair Grounds Race Course	  	1751 Gentilly Boulevard, New Orleans, LA 70119
			
	16.	  	Kenner Finish Line	  	1700 Joe Yenni Boulevard, Kenner, LA 70064
			
	17.	  	Gretna Finish Line	  	64A Westbank Expressway, Gretna, LA 70053
			
	18.	  	Elmwood Finish Line	  	5428 Citrus Boulevard, Harahan, LA 70123
			
	19.	  	Metairie Finish Line	  	2700 Edenborn Avenue, Metairie, LA 70002
			
	20.	  	Parking lot adjacent to the Metairie Finish Line	  	2700 Edenborn Avenue, Metairie, LA 70002

  

 1 

					
	21.	  	LaPlace Finish Line	  	164 Belle Terre Blvd., LaPlace, LA 70068-3348
			
	22.	  	Covington Finish Line	  	600 North Highway 190, Suite #1
		  		  	Hollycrest Plaza Shopping Center, Covington, LA 70434
			
	23.	  	Houma Finish Line	  	111 Moss Lane, Houma, LA 70360
			
	24.	  	Thibodaux Finish Line	  	1766 Canal Boulevard, Thibodaux, LA 70301
			
	25.	  	Property currently being Used for Fair Grounds Supplemental housing	  	3100 Belfort Avenue, New Orleans, LA 70119
			
	26.	  	Churchill Downs Technology Initiatives Company	  	2033 Gateway Place, 5th &
6th Floors, San Jose, CA 95110

 DWELLINGS LEASED TO OTHERS - Louisville, KY 
  

					
	1012 Homeview	  	3111 S. Fourth	  	1001-1003 Thornberry
			
	1014 Homeview	  	3113-15 S. Fourth	  	
			
	1016 Homeview	  	3701 S. Fourth	  	3318-3320 Warren

 LOTS 
 (VACANT LOTS SURROUNDING LOUISVILLE TRACK USED FOR PARKING) 
 Bohannon Avenue – 3104, 3106, 3108, 3110,
3112, 3116, 3118, 3120 (collectively Lot 10), 3121, 3211, 3215, 3213 
 Central – 756 
 Homeview – 901, 903, 905, 907, 908, 909, 910, 911, 912, 913, 914, 915, 917, 919, 921, 923, 924, 926, 927, 928, 931, 932, 933, 935, 937, 947,
955, 1004, 1006, 1008, 1010, 1012, 1014, 1016, 1000 
 Longfield Avenue – 1009, 1029, 1031, 1033 
 Oakdale Avenue – 3l17, 3129, 3139-3139  1/2, 3141, 3143, 3716, 3720, 3722, 3724, 3728, 3730, 3732, 3734, 3740, 3756-62, 3750 
 Queen Avenue – 1000,
1002, 1006, 1008-10, 1012, 1014, 1016, 1018 
 Racine – 819, 900, 902, 906, 908, 910, 912, 913, 914, 915, 916, 917, 919,
920, 921, 923, 924, 925, 926, 927, 929, 930, 934, 936 (collectively Lot 8) 
 S. Fourth Street – 3101-03, 3107-09, 3111, 3113-15, 3141-43,
3701, 3705, 3709, 3711, 3713 
 S. Third Street – 3106, 3108, 3108 rear, 3110, 3114, 3116, 3118, 3120, 3122, 3128, 3130, 3142, 3144, 3146,
3150, and 3148 
 Southern Parkway – 3800 
 Taylor Blvd. – 3105, 3107, 3109, 3111 (collectively Lot 10 with Bohannon properties) 
 Terrace Park – 32-34 
 Thornberry – 923, 925, 927, 929, 931-33, 1001-1003, 1005, 1007, 1011, 1015, 1019, 1021 
 Warren Avenue – 3312, 3314, 3315, 3316, 3318, 3320, 3322, 3324 
 Wizard Avenue – 3317, 3319, 3320,
3321, 3325, 3327, 3329 
 Floyd Street – 819-827 (Leased Storage only) 
  

 2 

 Lot 1 – Corners of Warren, Queen, Wizard and Oleanda 
 (1000, 1002, 1006 1008-10, 1012, 1014, 1016 and 1018 Queen Avenue) 
 (3312, 3314, 3316, and 3324 Warren Avenue) 
 (3317, 3319, 3321, 3325, 3327 and 3329 Wizard Avenue)

 Lot 2 – Alley off of Warren, South of Homeview 
 (910, 924, 926, 928, 932 Homeview) 
 Lot 3 – Corner of 9th & Homeview 
 (900, 902, 904 Homeview is merged in with 700 Central Ave.) 
 (908, 909, 911, 914 Homeview) 
 Lot 4 –
Ninth St. & Homeview (lots combined): 
 (931, 933, 935, 937, 947 Homview) 
 Lot 5 – Ninth St. & Homeview (lots combined): 
 (901, 903, 905, 907, 913, 915, 917, 919, 921, 923 Homeview) 
 Lot 6 – Horsemen Lot (Lot between Homeview & Racine)

 (900, 902, 906, 908, 910, 911, 913, 915, 917, 919, 921 Racine) 
 Lot 7 – (3121 Bohannon) 
 (930, 934, 936 Racine) 
 Lot 9 – (921, 923, 925, 927, 929 Racine) 
 Lot 11
South Third Street 
 (3100, 3106, 3108, 3108 rear, 3110, 3112, 3114, 3116, 3118, 3120, 3122, 3128, 3130, 3132, and
3132 1/2) 
 Hussey Lot

 (3716, 3724, 3740, 3756-62 Oakdale Avenue) 
 (32-34 Terrace Park) 
 Longfield Avenue Lot 
 (3315 Warren) 
 (923, 925, 927, 929,
931-33 Thornberry) 
 Oakdale Lot – Horse Trailer Parking 
 (3117, 3129, 3139-3139 1/2, 3141, & 3143 Oakdale Avenue) 
 Racine Lot – 920 
 South Fourth Street Lot – 3101-03, 3107-09, 3141-43 
  

 3 

 Triangle Lot – 3141-43 S. 4th 
 Trackside Lot – 4400
Breitenstein Avenue 
 Turf Lot – 
 (819 Racine) 
 V.I.P. Lot – Ninth St. & Central Avenue 
 (756 Central Avenue) 
  

 4 

 SCHEDULE 5.24 
 OPERATING LOCATIONS 
  
  
  

			
	Churchill Downs Incorporated	  	 700 Central Avenue
 Louisville, Kentucky
40208

		
		  	 4520 Poplar Level Road
 Louisville, KY
40213

		
	 Churchill Downs Management Company
 Churchill Downs
Investment Company
 CDIP Holdings, LLC
 CDIP, LLC
 Churchill Downs Simulcast Productions, LLC
 Charlson Industries,
Inc.
	  	 700 Central Avenue
 Louisville, Kentucky
40208

		
	 Calder Race Course, Inc.
 Tropical Park,
Inc.
	  	 21001 NW 27th Avenue
 Miami, FL 33056

		
	Arlington Park Racecourse, LLC	  	 2000 Euclid Avenue
 Arlington Heights, IL
60006

		
		  	 Trackside Chicago
 901 W. Weed Street
 Chicago, Illinois 60622

		
		  	 Trackside Waukegan
 630 S. Green Bay
 Waukegan, Illinois 60085

		
	Arlington OTB Corp.	  	 2000 Euclid Avenue
 Arlington Heights, IL
60006

		
	Quad City Downs, Inc.	  	 2000 Euclid Avenue
 Arlington Heights, IL
60006

		
		  	 Trackside Rockford
 5011 E. State Street
 Rockford, Illinois 61108

		
		  	 Trackside Quad City Downs
 5005 Morton Drive

East Moline, Illinois 61244

  

 Schedule 5.24 
 Page 1 of 3

 SCHEDULE 5.24 
 OPERATING LOCATIONS 
  
  
  

			
	Quad City Downs, Inc. (cont.)	  	 Trackside South Elgin
 334 N. McLean Blvd.
 South Elgin, Illinois 60177

		
		  	 Trackside South Beloit
 1322 Gardner Street
 South Beloit, Illinois 61080

		
		  	 Trackside McHenry
 2816 Route 120
 McHenry, Illinois 60051

		
		  	 Trackside Lockport
 Fat Sam’s Featuring Trackside
OTB
 1225 E. 9th St.
 Lockport, Illinois
60441-3234

		
	Churchill Downs Louisiana Horseracing Company, L.L.C.	  	 1751 Gentilly Boulevard
 New Orleans, Louisiana 70119

		
		  	 Kenner Finish Line
 1700 Joe Yenni Boulevard

Kenner, Louisiana 70064

		
		  	 Gretna Finish Line
 64A Westbank Expressway
 Gretna, Louisiana 70053

		
		  	 Elmwood Finish Line
 5428 Citrus Boulevard
 Harahan, Louisiana 70123

		
		  	 Metairie Finish Line
 2700 Edenborn Avenue
 Metairie, Louisiana 70002

		
		  	 Thibodaux Finish Line
 1766 Canal Boulevard
 Thibodaux, Louisiana 70301

		
		  	 LaPlace Finish Line
 164 Belle Terre Blvd.
 LaPlace, LA 70068-3348

  

 Schedule 5.24 
 Page 2 of 3

 SCHEDULE 5.24 
 OPERATING LOCATIONS 
  
  
  

			
	Churchill Downs Louisiana Horseracing Company, L.L.C. (cont.)	  	 Covington Finish Line
 600 North Highway 190, Suite #1

 Hollycrest Plaza Shopping Center
 Covington, Louisiana 70434

		
		  	 Houma Finish Line
 111 Moss Lane
 Houma, Louisiana 70360

		
	Churchill Downs Louisiana Video Poker Company, L.L.C.	  	 1751 Gentilly Boulevard
 New Orleans, Louisiana 70119

		
	Video Services, Inc.	  	 520 Elmwood Park Blvd., Suite 100
 Harahan, Louisiana
70123

  

 Schedule 5.24 
 Page 3 of 3

 SCHEDULE 5.25 
 CERTAIN LICENSES 
 Churchill Downs Incorporated holds a license issued by the Kentucky Racing Authority
to conduct live thoroughbred races in 2007. 
 Calder Race Course Inc. holds a license issued by the Division of Pari-Mutuel Wagering of
Florida’s Department of Business and Professional Regulation to conduct live thoroughbred races in 2007. 
 Tropical Park, Inc. holds a license
issued by the Division of Pari-Mutuel Wagering of the Department of Florida’s Department of Business and Professional Regulation to conduct live thoroughbred races in 2007. 
 Arlington Park Racecourse, LLC holds a license from the Illinois Racing Board to conduct live thoroughbred races in 2007. 
 Arlington Park Racecourse, LLC holds an inter-track wagering license from the Illinois Racing Board for its Trackside location. It also holds inter-track wagering location licenses for the locations in Chicago and Waukegan.

 Quad City Downs, Inc. holds an inter-track wagering license from the Illinois Racing Board for its East Moline location. It also holds inter-track
wagering location licenses for the locations in Rockford, McHenry, South Beloit and South Elgin. 
 Churchill Downs Louisiana Horseracing Company,
L.L.C. holds a ten-year racing license from the Louisiana State Racing Commission to conduct race meetings for the period April 16, 2005 through April 15, 2015. 
 Churchill Downs Louisiana Horseracing Company, L.L.C. holds a one-year license from the Louisiana State Racing Commission to conduct a live thoroughbred race meet from November 22, 2007 through
March 23, 2008. 
 Churchill Downs Louisiana Horseracing Company, L.L.C. holds a license from the Louisiana State Racing Commission to operate
off-track wagering facilities at the following locations: 
 See Attachment 1 
 Churchill Downs Louisiana Horseracing Company, L.L.C. holds a Type VI Owner/Operator License from the Louisiana Gaming Control Board authorizing it to own and
operate video poker devices for a term expiring June 30, 2010. 
  

 Schedule 5.25 
 Page 1 of 4

 Churchill Downs Louisiana Horseracing Company, L.L.C. holds nine Type IV video poker establishment licenses from
the Louisiana Gaming Control Board for the authorization to conduct video poker gaming at the following OTB locations for a term expiring June 30, 2010: 
 See Attachment 2 
 Churchill Downs Louisiana Horseracing Company, L.L.C. holds a license from the
Louisiana Gaming Control Board for the conduct of slot machine gaming at the Fair Grounds Race Course in New Orleans, subject to certain conditions in connection with facility construction, internal controls and facility management. 
 Churchill Downs Louisiana Video Poker Company, L.L.C. has acquired Video Services, Inc. which holds a Type VI Owner/Operator license from the Louisiana Gaming
Control Board for the authorization to own and operate video poker devices at the OTB Locations listed in Attachment 2 (the “VSI License”). The VSI License expired on June 30, 2004, and an application for renewal of the VSI License is
pending with the Louisiana Gaming Control Board. If approved, the VSI License will not expire until June 30, 2010. 
  

 Schedule 5.25 
 Page 2 of 4

 SCHEDULE 5.25 
 CERTAIN LICENSES 
 Attachment 1 
 Covington Finish Line 
 600 North Highway 190, Suite #1 
 Hollycrest Plaza Shopping Center 
 Covington, Louisiana 70434 
 Elmwood Finish Line 
 5428 Citrus Boulevard 
 Harahan, Louisiana 70123 
 Gretna Finish Line 
 64A Westbank Expressway 
 P.O. Box 1372 
 Gretna, Louisiana 70053 
 Houma Finish Line 
 111 Moss
Lane 
 Houma, Louisiana 70360 
 Kenner Finish Line 

1700 Joe Yenni Boulevard 
 P.O. Box 640459 
 Kenner, Louisiana 70064 
 LaPlace Finish Line 
 164 Belle Terre Blvd. 
 LaPlace, LA 70068-3348 
 Metairie Finish Line 
 2700 Edenborn Avenue 
 Metairie, Louisiana 70002 
 Thibodaux Finish Line 
 1766 Canal Boulevard 
 Thibodaux, Louisiana 70301 
 NOTE: Licenses exist for the following two locations, which were destroyed in Hurricane Katrina, though these locations have not been rebuilt as of the
date of the Amendment: 
 Slidell Finish Line 
 US Highway 11,
225 Brown’s Village Square 
 61025 Brown’s Village Square, Unit #5 
 Slidell, Louisiana 70459 
 St. Bernard Finish Line 
 7718 West Judge Perez Drive 
 Arabi, Louisiana 70043 
  

 Schedule 5.25 
 Page 3 of 4

 SCHEDULE 5.25 
 CERTAIN LICENSES 
 Attachment 2 
 Elmwood Finish Line 
 5428 Citrus Boulevard 
 Harahan, Louisiana 70123 
 Fair Grounds Corp OTB 
 1751 Gentilly Boulevard 
 New Orleans, LA 70119 
 Gretna Finish Line 
 64A Westbank Expressway 
 P.O. Box 1372 
 Gretna, Louisiana 70053 
 Houma Finish Line 
 111 Moss Lane 
 Houma, Louisiana
70360 
 Kenner Finish Line 
 1700 Joe Yenni Boulevard

 P.O. Box 640459 
 Kenner, Louisiana 70064 
 LaPlace Finish Line 
 164 Belle Terre Blvd. 
 LaPlace, LA 70068-3348 
 Metairie Finish Line 
 2700 Edenborn Avenue 
 Metairie, Louisiana 70002 
 Thibodaux Finish Line 
 1766 Canal Boulevard 
 Thibodaux, Louisiana 70301 
 NOTE: A license exists for the
following location, which was destroyed in Hurricane Katrina, though this location has not been rebuilt as of the date of the Amendment: 
 St. Bernard
Finish Line 
 7718 West Judge Perez Drive 
 Arabi, Louisiana
70043 
  

 Schedule 5.25 
 Page 4 of 4

 SCHEDULE 5.26 
 PREDECESSOR ENTITIES OF THE LOAN PARTIES 
 See Schedule 1 for state of incorporation or organization.

 See Schedule 5.23 for jurisdictional locations where collateral may have been kept. 
 Arlington Park Racecourse, LLC 
 Arlington International Racecourse, Inc. and Turf Club of Illinois, Inc. –
merged into Arlington Park Racecourse, LLC 
 Arlington Management Services, LLC merged into Arlington Park Racecourse, LLC; Arlington Management Services,
Inc., Arlington Global Services, Inc. and KFI Corporation were previously merged into Arlington Management Services, LLC 
 Arlington OTB Corp.

 None 
 CDIP, LLC 
 None 
 CDIP Holdings, LLC 
 None 
 Calder Race Course, Inc. 
 None 
 Churchill Downs Investment Company 
 None 
 Churchill Downs Management Company 
 None 
 Quad City Downs, Inc. 
 None 
  

 Schedule 5.26 
 Page 1 of 2

 Tropical Park, Inc. 
 None 
 Churchill Downs Louisiana Horseracing Company, L.L.C. 
 None 
 Churchill Downs Louisiana Video Poker Company, L.L.C. 
 None 
 Video Services, Inc. 
 None 
 Churchill Downs Simulcast Productions, LLC 
 F/k/a Charlson Broadcast Technologies, LLC – name change recorded May 28, 2004 with Kentucky Secretary of State 
 Charlson Industries, Inc. 
 None 
  

 Schedule 5.26 
 Page 2 of 2Commutation and Release Agreement

 Exhibit 10.1 
 COMMUTATION AND RELEASE AGREEMENT 
 This Commutation and Release Agreement (the “Commutation
Agreement”), dated July 20, 2009, is entered into by and among Ambac Assurance Corporation (“AAC”), Ambac Assurance UK Limited (“AUK” and, collectively with AAC, the “Company”) and Radian Asset Assurance Inc.
(the “Reinsurer”). Each of the Company and the Reinsurer are referred to herein as a “Party” and collectively as the “Parties”. 
 WITNESSETH: 
 WHEREAS, the Reinsurer and the Company have entered into certain reinsurance agreements
identified on the attached Appendix A-1 (the “Reinsurance Agreements”), under each of which the Reinsurer reinsures certain policies issued by the Company (the “Reinsured Policies”); and 
 WHEREAS, the Reinsurer and the Company have entered into certain reinsurance agreements identified on the attached Appendix A-2 (the
“Retained Agreements”), under each of which the Reinsurer reinsures certain policies issued by the Company (the “Retained Policies”); and 
 WHEREAS, the Reinsurer and the Company have agreed that the Company shall reassume all of the Reinsured Policies under each of the Reinsurance Agreements; and 
 WHEREAS, the Reinsurer and the Company have agreed that the Reinsurer shall continue to reinsure all of the Retained Policies according to the Retained
Agreements; and 
 WHEREAS, the Company and the Reinsurer now desire to terminate the reinsurance provided in each of the Reinsurance
Agreements and fully and finally settle and commute their respective obligations and liabilities under each of the Reinsurance Agreements on the Effective Date (as defined in paragraph 1 below) on the terms and subject to the conditions set forth in
this Commutation Agreement; and 
 WHEREAS, the Reinsurer has offered to pay, and the Company has agreed to accept, an all-inclusive net
amount payable by the Reinsurer in respect of the Reinsurer’s past, present, and future obligations and liabilities under the Reinsurance Agreements comprised of a settlement payment of US One Hundred Million Dollars ($100,000,000.00) and
payment of invoices submitted by the Company in respect of the Reinsurance Agreements through the Effective Date in an amount equal to US Four Million Two Hundred Seventy One Thousand Six Hundred Four and 43/100Dollars ($4,271,604.43), or a total of
US One Hundred Four Million Two Hundred Seventy One Thousand Six Hundred Four and 43/100 Dollars ($104,271,604.43) (the “Settlement Amount”); such Settlement Amount to be paid in the manner set forth herein; 
 NOW, THEREFORE, in consideration of the covenants set forth herein and the payments to be made hereunder, it is agreed by and between the Company and the
Reinsurer as follows: 
 1. Effective as of 12:01 a.m., Eastern time, on July 1, 2009 (such date being the “Effective Date”),
and subject to the provisions hereof, it is mutually agreed by and between the 

  

 - 1 - 

 
Company and the Reinsurer that the reinsurance under the Reinsurance Agreements shall be fully and finally commuted and shall terminate. 
 2. No later than the close of business on July 24, 2009 (the “Payment Date”), the Reinsurer shall pay the Settlement Amount to the Company
in immediately available funds (in United States currency) by wire transfer to the account of the Company as shown on Appendix B hereto. If payment of the Settlement Amount in such manner is not made on or prior to the Payment Date, the
agreement set forth in paragraph 1 above shall be void and the Effective Date shall be deemed to have not occurred. The Company shall accept the Settlement Amount on or prior to the Payment Date as full and final settlement of any and all amounts
claimed heretofore or hereinafter to be due by the Reinsurer to the Company relating to arising under or in respect of the Reinsurance Agreements including, without limitation, any and all amounts due or claimed to be due relating to, or arising out
of, or in any way related to any Reinsured Policies. Upon receipt of the Settlement Amount on or prior to the Payment Date, the Company will execute and deliver to the Reinsurer a receipt in the form of the attached Appendix C. 
 3. As of the Effective Date, the Company unconditionally hereby releases and discharges the Reinsurer, its predecessors, and their past and present
parents, affiliates, agents, officers, directors, shareholders, policyholders, successors and assigns (collectively, the “Reinsurer Released Parties”) from any and all liabilities, including but not limited to, all obligations,
adjustments, executions, offsets, actions, causes of action, suits, debts, sums of money, accounts, reckonings, bonds, bills, covenants, contracts, controversies, agreements, promises, damages, judgments, claims, demands, duties, doings, omissions,
costs, expenses and/or losses whatsoever, whether known or unknown, reported or unreported, and whether arising in the past, present or future, which the Company, its predecessors and its successors ever had, now have, or hereafter may have whether
grounded in law or in equity, in contract or in tort (including, without limitation, any claims based on fraud, bad faith, or extra-contractual liabilities), whether known or unknown, against the Reinsurer Released Parties by reason of any matter
whatsoever arising out of the Reinsurance Agreements or the Trust Agreement (as defined in paragraph 11 below), including, without limitation, those arising under the Reinsured Policies, it being the intention of the parties that this Commutation
Agreement operate as a full and final settlement of the Reinsurer Released Parties’ current and future liabilities to the Company, its predecessors and its successors under said Reinsurance Agreements and the Trust Agreement, including, without
limitation, those arising under the Reinsured Policies, notwithstanding any provision to the contrary in any of the Reinsurance Agreements or the Trust Agreement; it being understood and agreed that any release or discharge contemplated by this
paragraph 3 with respect to the Trust Agreement shall be subject to the provisions of paragraph 11 of this Commutation Agreement. 
 4. As of
the Effective Date, the Reinsurer unconditionally hereby releases and discharges the Company, its predecessors, and their past and present parents, affiliates, agents, officers, directors, shareholders, policyholders, successors and assigns
(collectively, the “Company Released Parties”) from any and all liabilities, including, but not limited to, all obligations, adjustments, executions, offsets, actions, causes of action, suits, debts, sums of money, accounts, reckonings,
bonds, bills, covenants, contracts, controversies, agreements, promises, damages, judgments, claims, demands, duties, doings, omissions, costs, expenses and/or losses whatsoever, whether known or unknown, reported or unreported, and whether 

  

 - 2 - 

 
arising in the past, present or future, which the Reinsurer, its predecessors and successors ever had, now have, or hereafter may have whether grounded in
law or equity, in contract or in tort (including, without limitation, any claims based on fraud, bad faith, or extra-contractual liabilities), whether known or unknown, against the Company Released Parties by reason of any matter whatsoever arising
out of the Reinsurance Agreements or the Trust Agreement, including, without limitation, those arising under the Reinsured Policies, it being the intention of the parties that this Commutation Agreement operate as a full and final settlement of the
Company Released Parties’ current and future liabilities to the Reinsurer, its predecessors and its successors under said Reinsurance Agreements and the Trust Agreement, including, without limitation, those arising under the Reinsured Policies,
notwithstanding any provision to the contrary in any of the Reinsurance Agreements or the Trust Agreement; it being understood and agreed that any release or discharge contemplated by this paragraph 4 with respect to the Trust Agreement shall be
subject to the provisions of paragraph 11 of this Commutation Agreement. 
 5. The Parties each acknowledge that the payment of the
Settlement Amount as described in paragraph 1 herein is a complete accord, satisfaction, settlement and commutation of all the liability and obligations of each party under the Reinsurance Agreements and the Reinsured Policies. The Parties further
agree that, notwithstanding the foregoing paragraphs, or anything to the contrary herein, this Commutation Agreement shall not alter the rights and obligations of the Parties in respect of the Retained Agreements and the Retained Policies reinsured
by the Reinsurer thereunder. 
 6. The Reinsurer and the Company agree that, as of the Effective Date, the six notices of termination, dated
May 20, 2009, from AAC to the Reinsurer shall be deemed to be withdrawn and of no further force or effect. 
 7. The Reinsurer and the
Company agree that each will maintain the confidentiality of this Commutation Agreement, including the specific terms of the commutation and the Settlement Amount, except to the extent required by law, regulation or order, and except as may be made:

  

	 	a)	to either Party’s affiliates, directors, internal or external legal counsel, auditors and accountants; 

  

	 	b)	to rating agencies in connection with their ratings of the Reinsurer or the Company or to government-sponsored enterprises in connection with their review of such Party’s
insured portfolio or financial condition; 

  

	 	c)	to any regulator or other governmental entity with jurisdiction (or purporting to have jurisdiction) over the disclosing Party; 

  

	 	d)	as reasonably determined by the disclosing Party to be reasonably required for proper disclosure in the disclosing Party’s (or any affiliate’s) GAAP or statutory financial
statements, in any earnings release, or in any report filed by the disclosing Party (or any affiliate) with any state insurance commissioner’s office or with the Securities and Exchange Commission pursuant to the Securities Exchange Act of
1934; 

  

	 	e)	in connection with litigation or arbitration to which the disclosing Party is subject; 

  

 - 3 - 

	 	f)	in press releases or similar announcements made by such Party or its affiliates so long as such press releases or announcements do not specifically refer to the portion of the
Settlement Amount that is not based upon loss reserves or unearned premium reserves (except to the extent described in clause (d) above). 

 The Reinsurer and the Company will have no obligation of confidentiality in respect of any information that may be generally available to the public or become available to the public other than as a result of a breach
of such Partys’ obligations pursuant to this paragraph 7. Each Party acknowledges the other’s right to refer to the commutation in discussions with third parties, but specifically agrees that neither will issue, nor approve for issuance,
any press or media releases regarding the fact of this Commutation Agreement or the subject matter hereof except as specifically permitted by this paragraph 7. 
 8. This Commutation Agreement is the product of arm’s length negotiations and the terms of this Commutation Agreement have been completely read and fully understood and voluntarily accepted by both the Company
and Reinsurer, having the benefit of the advice of counsel. The Parties further state their intent to release known and unknown, and past, present and future, claims on the terms set forth herein and expressly waive and disavow the application of
any statutory or common law protection against the release of unknown or future claims. 
 9. The rights, duties and obligations of the
Commutation Agreement shall be final and binding upon and inure to the benefit of the parties hereto and their respective successors, liquidators, receivers and assigns. 
 10. Each Party represents and warrants to the other Party that: 
  

	 	a)	Such Party is a corporation in good standing in its jurisdiction of domicile, and that this Commutation Agreement is the legal, valid and binding obligation of such Party,
enforceable against such Party in accordance with its terms. 

  

	 	b)	Such Party is fully authorized and empowered to execute and deliver this Commutation Agreement; that the person executing this Commutation Agreement on behalf of such Party is fully
authorized to do so; and that there are no pending conditions, agreements, transactions, filings or negotiations to which such Party is a party that could render this Commutation Agreement or any part thereof void, voidable or unenforceable.

  

	 	c)	There is no authorization, consent or approval of any government or regulatory authority that is required to make this Commutation Agreement valid, enforceable in accordance with
its terms and binding upon such Party, except such authorization, consent or approval as has been obtained prior to the date hereof. 

  

	 	d)	No claim or account being paid, settled, released or terminated hereunder has previously been assigned, novated or transferred, nor will such claim be assigned, novated or
transferred, to another person or entity. 

  

 - 4 - 

	 	e)	No order has been made or petition presented or other step taken or contemplated for such Party to be wound up or for the appointment of a liquidator, provisional liquidator,
receiver, administrator or other like office holder under the laws of any jurisdiction whatsoever. 

  

	 	f)	The execution and delivery of, giving effect to, and performance of, such Party’s obligations under this Commutation Agreement do not conflict with, result in a breach or
violation or imposition of any lien, charge or encumbrance upon any property or assets of such Party or its affiliates pursuant to, the charter or bylaws or other organizational document of such Party or its affiliates or the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which such Party or any of its affiliates is a party or bound or to which such Party’s of any of its
affiliates’ property is subject. 

  

	 	g)	The execution and delivery of, giving effect to, and performance of, such Party’s obligations under this Commutation Agreement do not contravene, or fail to comply with, any
applicable laws to the extent such contravention or failure would result in this Commutation Agreement or any material provision hereof being void, voidable or unenforceable. 

  

	 	h)	Such Party is acting for its own account and has made its own independent decision to enter into this Commutation Agreement based upon its own judgment and without reliance on any
information provided or made available by, or any communication of, another Party hereto. 

  

	 	i)	Such Party has conducted a diligent, thorough and good faith search of the books and records of itself and its affiliates, and that, after conducting such a search, does not know
of, or have reason to suspect the existence of, any actual or alleged agreement whereby the Reinsurer reinsures the Company or any of its affiliates, other than the Reinsurance Agreements and the Retained Agreements. 

  

	 	j)	The Settlement Amount represents fair value for the transactions contemplated by this Commutation Agreement. 

 AAC represents and warrants to the Reinsurer that it is the successor to AMBAC Indemnity Corporation, and has full power and authority to enter into this
Commutation Agreement in such capacity. AAC and AUK each jointly and severally represent and warrant to the Reinsurer that they collectively possess full title, right and interest in respect of the Reinsurance Agreements and any claims released
herein, that they have full power and authority to effect the releases granted herein, and that no other person has any right or authority to claim as or through any reinsured under the Reinsurance Agreements. 
 Furthermore, the Company represents and warrants to the Reinsurer that (x) the Wisconsin Office of the Commissioner of Insurance (together with any
other regulator requiring 

  

 - 5 - 

 
advance notice of the transactions contemplated by this Commutation Agreement) has been advised of the terms of this Commutation Agreement and has not
objected to such terms and (y) it has not withdrawn any funds from the Trust Account (as defined in the Trust Agreement referenced in paragraph 11 below). 
 The Reinsurer represents and warrants to the Company that it is the successor to Enhance Reinsurance Company, and has full power and authority to enter into this Commutation Agreement in such capacity. Radian
Asset Assurance Inc. represents and warrants to the Company that it possesses full title, right and interest in respect of the Reinsurance Agreements and any claims released herein, that it has full power and authority to effect the releases granted
herein, and that no other person has any right or authority to claim as or through any reinsurer under the Reinsurance Agreements. 
 11. The
Reinsurer and the Company agree that on or promptly following the date hereof, the Parties shall deliver to Northern Trust Company of New York, as trustee (the “Trustee”) under the Trust Account Agreement dated as of August 3, 2006
among the Parties and the Trustee (the “Trust Agreement”) such notices and instructions as may be necessary to withdraw and transfer from the Trust Account (as defined in the Trust Agreement) to the Reinsurer all assets held in the Trust
Account and to terminate the Trust Agreement; including providing the Trustee and the Trust such releases and discharges from liability as the Trustee may reasonably request. Notwithstanding anything contained in this Commutation Agreement to the
contrary, the releases and discharges contemplated by paragraphs 3 and 4 of this Commutation Agreement with respect to the Trust Agreement shall become effective only upon the transfer of all assets held in the Trust Account to the Reinsurer. The
Reinsurer represents and warrants that, to the best of its knowledge and belief, all fees due to the Trustee under the Trust Agreement have been paid and that all costs and expenses of the Trustee required to be reimbursed by the Reinsurer have been
reimbursed. If after the date hereof the Trustee presents an invoice for any such fees, costs or expenses, the amount payable pursuant to such invoice shall be for the account of the Reinsurer. 
 12. Upon any request made by any Party to another Party, the Party receiving such request shall promptly deliver to the requesting Party any information
reasonably required in order for such Party to account for the transactions contemplated by this Commutation Agreement in its financial statements. 
 13. Each Party shall bear its own costs and expenses in connection with the preparation, negotiation, execution, delivery and performance of this Commutation Agreement. 
 14. Except as explicitly stated herein, nothing in this Commutation Agreement shall be deemed to create any right in any person or entity that is not a
Party, and this Commutation Agreement shall not be construed in any respect to be a contract in whole or in part for the benefit of any such third party. 
 15. If it is found in a final judgment by an arbitrator or a court of competent jurisdiction (not subject to further appeal) that any term or provision hereof is invalid or unenforceable, (a) the remaining terms
and provisions hereof shall be unimpaired and shall remain in full force and effect and (b) the invalid or unenforceable provision or term shall be 

  

 - 6 - 

 
replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of such invalid or unenforceable term or
provision. 
 16. In the event that following the execution and delivery of this Commutation Agreement and consummation of the transactions
contemplated herein, including, without limitation, payment of the Settlement Amount and the release of the Parties from their liabilities under the Reinsurance Agreements and Trust Agreement, including, without limitation, those arising under the
Reinsured Policies, the Settlement Amount shall be rescinded, or must otherwise be restored or returned, and is in fact rescinded, restored and/or returned, or the release of either Party’s obligations under the Reinsurance Agreements, Trust
Agreement and/or Reinsured Policies (or any of them) is rescinded or voided, upon the insolvency, bankruptcy, dissolution, liquidation, rehabilitation or reorganization of the Reinsurer or the Company, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the Reinsurer or the Company or any substantial part of its property, then the Parties shall be restored in all respects to their respective positions under the Reinsurance
Agreements, the Trust Agreement and the Reinsured Policies as if this Commutation Agreement had not been executed and delivered, the Settlement Amount had not been paid and the Parties not released as herein provided; provided always that nothing in
this paragraph 16 shall apply unless and until the full Settlement Amount has been returned to the Reinsurer. 
 17. All representations,
warranties, covenants, liabilities and obligations of AAC and Ambac Assurance UK Limited under this Commutation Agreement shall be joint and several, whether so expressed or not. 
 18. This Commutation Agreement constitutes the entire agreement between the parties as respects its subject matter and supersedes all other prior
agreements, understandings, statements, representations and warranties, oral or written, express or implied, by and among the parties and their respective affiliates, representatives and agents in respect of the subject matter hereof. The parties
agree to cooperate to cause to be done, executed, acknowledged and delivered, each and every such further act, conveyance and assurance reasonably required in order to accomplish the purpose of this Commutation Agreement. This Commutation Agreement
may be executed by the parties hereto in any number of counterparts, and by each of the parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument. This Commutation Agreement may not be modified or amended, except by written instrument executed by each of the parties hereto. 
 19. This Commutation Agreement shall be governed by the laws of the State of New York without regard to principles of conflicts of law. 
 20. Each of the Parties hereby irrevocably consents to submit to the jurisdiction of the courts of the State of New York and the United States District
Court for the Southern District of New York, for any lawsuits, actions or other proceedings arising out of or relating to this Commutation Agreement and agrees not to commence any such lawsuit, action or other proceeding except in such courts. The
Parties further agree that service of any process, summons, notice or document by certified or registered mail to the recipient’s address set forth in the Surplus Share Reinsurance Agreement, dated as of April 1, 2007, between the Company
and 

  

 - 7 - 

 
the Reinsurer shall be effective service of process for any lawsuit, action or other proceeding brought against such recipient in any such court. Each of the
Parties hereby irrevocably and unconditionally waives any objection to the laying of venue of any lawsuit, action or other proceeding arising out of or relating to this Commutation Agreement in the courts of the State of New York and the United
States District Court for the Southern District of New York, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such lawsuit, action or other proceeding brought in any such court has
been brought in an inconvenient forum. The Parties further agree that no arbitration provision contained in any of the Reinsurance Agreements shall apply to this Commutation Agreement. 
 [remainder of page left blank] 
  

 - 8 - 

 IN WITNESS HEREOF, the parties hereto have caused this Commutation Agreement to be executed, in
duplicate, by their duly authorized representatives as of the date first above written. 
  

											
	AMBAC ASSURANCE CORPORATION	 	RADIAN ASSET ASSURANCE INC.	 	
						
	By:	 	 /s/ Iain Bruce
	 		 	By:	 	 /s/ David J. Beidler
	 	
						
	Its:	 	 Managing Director
	 		 	Its:	 	 President
	 	
						
	Date:	 	 20 July 2009
	 		 	Date:	 	 July 20, 2009
	 	
				
	AMBAC ASSURANCE UK LIMITED	 		 		 	
						
	By:	 	 /s/ Kevin J. Doyle
	 		 		 		 	
						
	Its:	 	 Senior VP
	 		 		 		 	
						
	Date:	 	 7/20/09
	 		 		 		 	

  

 - 9 - 

 APPENDIX A-1 
 Schedule of Reinsurance Agreements to be commuted 
  

	1.	Municipal Bond Facultative Reinsurance Agreement effective as of December 31, 1986 between AAC (as successor to AMBAC Indemnity Corporation) and the Reinsurer (as ultimate
successor to Enhance Reinsurance Company); 

  

	2.	Municipal Bond Reinsurance Agreement dated as of January 1, 1987 between AAC (as successor to AMBAC Indemnity Corporation) and the Reinsurer (as ultimate successor to Enhance
Reinsurance Company); 

  

	3.	1987 Municipal Bond Quota Share Agreement dated as of January 1, 1987 between AAC (as successor to AMBAC Indemnity Corporation) and the Reinsurer (as ultimate successor to
Enhance Reinsurance Company); 

  

	4.	1990 Pro Rata Reinsurance Agreement dated as of January 1, 1990 between AAC (as successor to AMBAC Indemnity Corporation) and the Reinsurer (as ultimate successor to Enhance
Reinsurance Company); 

  

	5.	Facultative Reinsurance Agreement dated as of November 17, 1994 between AAC (as successor to AMBAC Indemnity Corporation) and the Reinsurer (as ultimate successor to Enhance
Reinsurance Company); 

  

	6.	1995 Pro Rata Reinsurance Agreement dated as of January 1, 1995 between AAC (as successor to AMBAC Indemnity Corporation) and the Reinsurer (as ultimate successor to Enhance
Reinsurance Company); 

  

	7.	Facultative Reinsurance Agreement dated as of January 1, 2001 between AAC and the Reinsurer (as ultimate successor to Enhance Reinsurance Company); 

  

	8.	Facultative Reinsurance Agreement dated as of August 13, 2002 between AUK and the Reinsurer (as ultimate successor to Radian Reinsurance Inc.); 

  

	9.	Surplus Share Reinsurance Agreement, dated as of March 1, 2005, between AAC and the Reinsurer; 

  

	10.	Amended and Restated Surplus Share Reinsurance Agreement, dated as of April 1, 2005, between the Company and the Reinsurer; 

  

	11.	Second Amended and Restated Surplus Share Reinsurance Agreement, dated as of April 1, 2006, between the Company and the Reinsurer; and 

  

	12.	Surplus Share Reinsurance Agreement, dated as of April 1, 2007, between the Company and the Reinsurer; 

 each as amended, supplemented or otherwise modified. 

 APPENDIX A-2 
 Schedule of reinsurance agreements to be retained 
  

	1.	Risk Sharing Agreement Basic Terms and Conditions, dated as of May 30, 2001, between AAC and the Reinsurer (as ultimate successor to Enhance Reinsurance Company); and

  

	2.	Risk Sharing Agreement Basic Terms and Conditions, dated as of December 8, 1998, between AAC, MBIA Insurance Company and the Reinsurer (as ultimate successor to Enhance
Reinsurance Company); 

 each as amended, supplemented or otherwise modified. 

 APPENDIX B 
 Wire Instructions 
 [redacted] 

 APPENDIX C 
 Form of Receipt of Settlement Amount 
 [Date] 
 Radian Asset Assurance Inc. 
 335 Madison Avenue 
 New York, New York 10017 
 Re: Receipt of Settlement Amount 
 Ladies and Gentlemen: 
 Reference is made to the Commutation and Release Agreement, effective as July 1, 2009 (the
“Commutation Agreement”), by and between Ambac Assurance Corporation, Ambac Assurance UK Limited and Radian Asset Assurance Inc. Capitalized terms used herein without definition shall have the meanings ascribed thereto in the Commutation
Agreement. 
 The undersigned, on behalf of the Company, hereby confirms receipt of the Settlement Amount on July    , 2009. 

Sincerely, 
  

			
	AMBAC ASSURANCE CORPORATION
		
	By	 	  

	Name:	 	
	Title:

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