Document:

Option Agreement Dated 01/20/2004

 EXHIBIT 10.10 
  
 OPTION AGREEMENT 
  
 This OPTION AGREEMENT (“Agreement”) to lease property, is made this 20th day of January, 2004 (“Effective Date”) by and between Henry J. Brabham, IV and Gail T. Brabham hereinafter collectively referred to as LESSOR, and
Colonial Downs L.P., a Virginia limited partnership or its assignee, hereinafter referred to as LESSEE. 
  
 WITNESSETH: 
  
 LESSOR hereby grants LESSEE the Option to lease certain property in Vinton, Virginia as follows: 
  

	1.	GRANT OF OPTION: For one hundred twenty (120) days (“Option Period”) following execution of this Agreement, LESSOR grants to LESSEE the option to lease
(“Option”) the property outlined herein. 

  

	2.	OPTION PRICE: LESSEE shall pay to LESSOR upon execution of this Agreement, $5,000 as consideration for such Option. Such amount shall be non-refundable but applicable against the
first month’s rent under the Lease in the event LESSEE exercises the Option. 

  

	3.	PROPERTY: That certain property on Vineyard Road, Vinton, Virginia comprised of approximately 8.539 acres of land and improvements thereon, if any, and which are Parcels #
060.20-03-81.02.0000 and 060.20-03-81.03.0000 of the Tax Maps for Vinton, Virginia (“Property”). A map of the Property is attached as Exhibit A. 

  

	4.	LEASE. The lease between the parties (“Lease”) shall reflect the terms of this Agreement and be in substantially the same form as that attached as Exhibit B. The Lease
shall be executed within five (5) days following exercise of the Option as provided herein. 

  

	5.	DUE DILIGENCE: Upon execution of this Agreement, LESSEE will evaluate the Property. During such evaluation, LESSEE shall conduct such tests as it deems necessary in its sole
discretion, including but not limited to environmental and geotechnical tests and preparation of a survey and title report. LESSOR shall cooperate with LESSEE during its evaluation, including providing access to the Property, and provide to LESSEE
copies of existing reports concerning the Property. 

	6.	EXERCISE OF THE OPTION: If LESSEE decides to exercise the Option granted herein, LESSEE will notify the LESSOR of its decision in writing before the end of the Option Period and the
parties shall proceed to Lease execution as provided herein. If the LESSEE does not notify LESSOR before the end of the Option Period, then this Agreement shall expire and neither party shall have any further liability hereunder.

  

	7.	LESSEE IMPROVEMENTS: LESSEE may, at LESSEE’S expense, construct one or more buildings and parking lot and other improvements on the Property, as it deems desirable, subject to
applicable building codes. LESSOR agrees to cooperate with LESSEE in obtaining necessary governmental approvals for the construction and operation of such improvements and to execute such applications, consents, and estoppel certificates as may be
required by governmental authorities or LESSEE’s lenders. 

  

	8.	OPTION TO BUY: The Lease will grant the LESSEE the option to buy (“Option to Buy”) the Property for $800,000 (“Purchase Price”). 

  

	9.	NOTICES: Any notice, request or demand required or permitted to be given pursuant to this Agreement shall be in writing and shall be deemed sufficiently given if, delivered by hand
by messenger at the address of the intended recipient, sent prepaid by Federal Express (or a comparable guaranteed overnight delivery service), or deposited in the United States first class mail (registered or certified, postage prepaid, with return
receipt requested), addressed to the intended recipient, at the intended recipient’s address set forth below, or at such other address as the intended recipient may have specified by written notice to the sender given in accordance with the
requirements of this Paragraph. Any such notice, request or demand so given shall be deemed given on the day it is delivered by messenger at the specified address, or on the day of deposit in the United States Mail, as the case may be.

  

			
	 For the LESSOR:
	  	Henry Brabham, IV
	 	  	        Vineyard Road
	 	  	Vinton, Virginia
		
	 With a Copy to:
	  	

	 	  	

	 	  	

		
	 For the LESSEE:
	  	David C. Grunenwald
	 	  	Vice-President of Development/Leasing
	 	  	1231 Main Avenue
	 	  	Cleveland, OH 44113

  

 2 

			
	 With a Copy to:
	  	James L. Weinberg, Esq.
	 	  	Hirschler Fleischer
	 	  	P.O. Box 500 (23218-0500)
	 	  	15th Floor
	 	  	701 East Byrd Street
	 	  	Richmond, Virginia 23219

  

	10.	CHOICE OF LAWS: This Agreement shall be construed under the laws of the Commonwealth of Virginia. 

  

	11.	AUTHORITY: Each party signing below warrants and represents that he or it has the authority to execute this Agreement. This Agreement shall be binding on and inure to the benefit of
each party’s successors and assigns. 

  

 3 

	12.	AGENCY DISCLOSURE AND LEASING FEE: LESSEE agrees to pay the leasing firm, Olde Colony Realty, Inc. and its agent, Galen Conner, its agreed upon leasing commission. Otherwise, each
party warrants to the other that no third party is entitled to a commission in connection with a lease or sale of the Property to LESSEE, pursuant to the Lease and Option to Buy granted herein. 

  
 Agreed and Accepted as of the Effective Date. 
  
 LESSEE: 
  

					
	 Colonial Downs, L.P.

	 By:     Stanley Racing Corp., General Partner

			
	 	 	 By:
	 	  

			
	 	 	Name:	 	  

			
	 	 	Title:	 	  

  
 LESSOR: 
  

	
	

	Henry J. Brabham IV
	 

  

	
	

	Gail T. Brabham

  

 4 

 EXHIBIT A 
  

Property Map 
  
  

 A-1 

 EXHIBIT B 
  

GROUND LEASE 
  
 This GROUND LEASE (“Lease”) is made as of the      day of
                    , 2004 (the “Effective Date”), between Henry Brabham, IV and Gail T. Brabham (collectively “LESSOR”)
and Colonial Downs L.P., a Virginia limited partnership (“LESSEE”). 
  
 RECITALS. 
  
 A. LESSOR is the owner of property
which consists of approximately 8.3539 acres of land located on Vineyard Road, in Vinton, Virginia (“Property”). A map of the Property is attached as Exhibit A. 
  
 B. LESSEE intends to lease from LESSOR the Property and construct a building of approximately 15,000 square foot of floor
area on the Property, as well as all necessary site work and utility installations for use as an satellite wagering facility (collectively the “Building”), as well as certain parking areas, drives, sidewalks, lighting fixtures and
landscaped areas (collectively the “Parking Facilities “), all in accordance with plans and specifications which are subject to LESSOR’s reasonable approval in writing by LESSOR. The Building and the Parking Facilities shall be
referred to collectively herein as the “Improvements”. 
  
 C. LESSEE will lease the Property and construct the Improvements on the terms and conditions set forth herein. The Property and Improvements shall be referred to collectively herein as the “Premises”. 
  
 WITNESSETH 
  
 NOW THEREFORE, in consideration of the mutual promises hereinafter set forth, and other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, LESSOR and LESSEE hereby agree as follows: 
  
 1. AGREEMENT TO LEASE 
  
 A. Grant. LESSOR hereby leases to LESSEE and LESSEE hereby takes from LESSOR the Property and agrees to use, occupy and lease the same in
accordance with the terms and provisions hereof. The Property shall be free of mortgages and other liens and encumbrances for the benefit of LESSOR, except utility easements and public rights-of-way. 
  

 B-1 

 B. Term. The term (the “Term”) of this Lease shall commence as of the Effective Date.
Rent, as prescribed herein, shall commence on the earlier to occur of the issuance of a certificate of occupancy for the Improvements, and six months from the date of this Lease (the “Rent Commencement Date”). The initial Term shall end on
the last day of the fifth (5th) Lease Year (as defined below) thereafter, unless sooner terminated or extended as
hereinafter provided. The term “Lease Year” as used herein shall mean a period of twelve (12) consecutive calendar months, provided, however, that the first Lease Year shall begin on the Rent Commencement Date and shall end on the last day
of the twelfth (12th) full calendar month thereafter. The second Lease Year shall commence on the next succeeding
day. Subsequent Lease Years shall begin and end on the anniversary of the first and last day of the second Lease Year, respectively. In addition, LESSOR grants to LESSEE the right to extend the Term for five (5) renewal periods (“Renewal
Periods”) of five (5) years each, which may be exercised by written notice to the LESSOR sixty (60) days before the end of the Term or then current Renewal Period, as applicable. 
  
 2. RENT. 
  
 A. Base Rent. LESSEE agrees to pay LESSOR for the Property, without demand, offset or deduction, base annual rent (“Base Rent”) in the
amount of One Hundred Twenty Thousand Dollars ($120,000). Base Rent shall increase beginning on the first day of each Renewal Period by 10% over the Base Rent of the Term or the preceding Renewal Period. 
  
 B. Commencement. Base Rent shall be payable in advance in lawful money
of the United States in monthly installments during the Term of this Lease, beginning on the Rent Commencement Date, and continuing thereafter on or before the first day of each month during the Term (each such date being referred to herein as a
“Due Date”). All Rent due under this Lease shall be payable by LESSEE to LESSOR at LESSOR’s address set forth in Paragraph 27 below or to such other place as LESSOR shall from time to time designate in writing. Rent mailed shall be
deemed paid on the date payment is received by LESSOR. If the Rent Commencement Date or termination date is not the first day of the month, Base Rent shall be prorated for the number of days this Lease is in effect during such months. 
  
 C. Late Charge; Default Rate. If LESSEE fails to pay Base Rent within
five (5) days after the Due Date, LESSEE shall promptly pay to LESSOR a service charge of five percent (5%) of the Rent then due. If any installment of the Base Rent is not paid when due and remains unpaid after expiration of any applicable cure
period provided for herein, such Rent, as increased by the five percent (5%) service charge, shall bear interest from the Due Date at an annual rate equal to 8% until paid. 
  

 B-2 

 3. CONSTRUCTION OF FACILITIES. Promptly after the execution and delivery of this Lease, LESSEE shall turn
the Property over to LESSEE and LESSEE shall take or cause to be taken all actions necessary for the installation of the Improvements (“LESSEE’s Work”). 
  
 4. USE OF PREMISES. The Premises shall be used and occupied only for uses permitted under the zoning district in which the
Premises is located (the “Permitted Uses”). 
  
 5.
CONSTRUCTION OF IMPROVEMENTS 
  
 A. LESSEE’s Work.
LESSEE shall promptly commence LESSEE’s Work and pursue LESSEE’s Work with due diligence to completion in a good and workmanlike manner and in compliance with LESSEE’s Plans (defined below), all applicable laws, orders and regulations
of all governmental authorities having jurisdiction over the construction of the Improvements. All costs of such construction, including, without limitation, engineering and architectural expenses, survey expenses, costs of all required licenses and
permits and actual construction costs, shall be borne solely by LESSEE. The Improvements shall be completed in accordance with plans and specifications (“LESSEE’s Plans”) which shall be submitted by LESSEE to LESSOR for LESSOR’s
written approval (Building exterior and Parking Facilities only) prior to the beginning of any such construction, which approval shall not be unreasonably withheld, conditioned, or delayed. LESSEE shall have the right, at LESSEE’s sole expense,
from time to time to submit, in its own name or in LESSOR’s name if so required, applications for such building permits and other construction approvals, and with the prior written approval of the LESSOR, which approval shall not be
unreasonably withheld, delayed, or conditioned. LESSOR will, at no out-of-pocket cost to LESSOR, join in such applications if requested to do so by LESSEE. During the course of construction of the Improvements, LESSOR may enter upon the Property
during business hours for purposes of inspecting the work. 
  
 B.
Acceptance of Premises. LESSEE hereby accepts the Property “AS IS, WHERE IS” condition as of the date hereof subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing use and occupancy
of the Property, and any covenants or restrictions of record. LESSEE acknowledges and agrees that LESSOR has made no representations or warranties as to the present or future use or condition of the Property and shall not be responsible for
obtaining any licenses or permits necessary for LESSEE to construct the Improvements or to occupy or conduct the Permitted Uses on the Property. 
  
 C. Title. Title to the Improvements, as well as all furniture, equipment and trade fixtures (collectively “Trade Fixtures”), shall be
vested in 
  

 B-3 

 LESSEE for the Term. At such time as this Lease expires or is terminated, whether by operation of law or otherwise, title
in the Improvements but not the Trade Fixtures shall automatically vest in LESSOR without the necessity of any further action by LESSOR or LESSEE. 
  
 6. ASSIGNMENT AND SUBLEASING. 
  
 A. Right to Assign. Except for transfers to Affiliates (as defined herein), LESSEE may not assign this Lease or any interest herein, without in
each instance having first obtained LESSOR’s prior written approval, which approval shall not be unreasonably withheld, delayed, or conditioned. 
  
 B. Right to Sublet. LESSEE may not sublet the Premises, in whole or part, without the prior written approval of the LESSOR, which approval shall
not be unreasonably withheld, delayed, or conditioned. 
  
 C.
Affiliate. As used herein, an “Affiliate” shall be (i) any entity that directly or indirectly through one or more intermediaries controls or is controlled by or is under common control with LESSEE or (ii) any entity of which is a
general partner or trustee, or with respect to which LESSEE serves in a similar capacity. 
  
 7. MORTGAGES OF LESSEE’S INTEREST. LESSOR shall not mortgage its interest in the Property during the Term, including Renewal Periods, of this Lease. LESSOR acknowledges that LESSEE may be obligated to mortgage
its interests hereunder to Wells Fargo Bank, N.A., as trustee, or any successor trustee under an indenture with Jacobs Entertainment, Inc., parent of LESSEE, and hereby consents to such mortgage. 
  
 8. TAXES. 
  
 A. Obligation to Pay. As used herein, “Taxes” shall mean all real estate taxes, assessments and other
governmental, quasi-governmental or private levies and charges of every kind, including any assessments, reimbursements or charges that may be imposed on the Premises, whether general or special, ordinary or extraordinary, unforeseen or foreseen
(including any interest or penalty) or which may be imposed, levied, assessed or confirmed by any lawful taxing authorities or which may become a lien or charge on or against all or any part of the Premises at any time during the Term, or any tax in
lieu thereof. LESSEE shall pay to LESSOR, or directly to the taxing authority at least ten (10) days prior to delinquency, all Taxes assessed against the Premises and shall simultaneously provide evidence of such payment to LESSOR. 
  

 B-4 

 B. Contest. LESSEE may, if in good faith and upon reasonable grounds it disputes the amount or
validity of any Taxes, contest and defend against the same and in good faith diligently conduct any necessary proceedings to prevent and avoid the same. LESSOR agrees that any contest or review initiated by LESSEE as provided herein may be
maintained at the election of LESSEE in the name of LESSEE or in the name of LESSOR or in the name of both LESSOR and LESSEE. LESSOR agrees to join in any such contest or review if required by law or regulations and further agrees to execute and
acknowledge such documents, instruments, assents and other papers as may be required or necessary, all at no cost to LESSOR. The legal proceedings referred to in this Subparagraph which may be prosecuted by LESSEE shall include appeals from any
judgments, decrees, or orders and such review or determinations of any administrative bodies and offices as may be appropriate. Taxes payable by LESSEE hereunder shall be prorated during the first Lease Year and the last Lease Year on a calendar
year basis. 
  
 C. Personal Property Tax. LESSEE shall be
liable for and shall pay by the due date all taxes levied against any personal property or trade fixtures placed by LESSEE in or about the Premises. 
  
 9. MECHANICS’ LIENS. LESSEE covenants not to permit any lien to be filed against the Premises on account of nonpayment or disputes with respect to
labor or materials furnished to the Premises or Improvements for or on behalf of LESSEE or any party claiming by, through, or under LESSEE, nor shall it permit any judgment lien or attachment to lie against the Premises. Should any lien of any
nature, including but not limited to the foregoing, be filed against the Premises, other than liens created or caused by LESSOR, LESSEE shall, within sixty (60) days, cause said lien to be removed by payment, substitution of collateral, posting a
bond therefor, or such other method as may be acceptable to LESSOR in its sole discretion. LESSEE shall indemnify, defend, and hold LESSOR harmless from any liability or expense incurred by LESSOR on account of any such claim, including, but not
limited to, LESSOR’s reasonable attorneys’ fees. 
  
 10.
MAINTENANCE, REPAIRS AND REPLACEMENTS. 
  
 A. Obligations to
Maintain Building. During the Term, LESSEE shall keep the Improvements in a clean, orderly condition, free of dirt, rubbish, and termites and other insects. In addition, LESSEE shall be solely responsible for all maintenance, repairs and
replacements of and to the Improvements, including, but not limited to, maintenance, repairs and/or replacements to the foundations, ceilings, floors, roof, lighting, walls, plumbing, heating, electrical, air conditioning, plate glass and windows
and all other interior and exterior components of the Building and LESSEE’s signage whether attached to or detached from the Building. 
  

 B-5 

 B. Surrender. At the termination of this Lease, LESSEE shall deliver the Premises to LESSOR in
broom clean condition, and otherwise in the same good and sanitary order and condition in which LESSEE is obligated to maintain the Premises during the Term, reasonable wear and tear excepted. 
  
 11. ALTERATIONS, CHANGES, AND IMPROVEMENTS. 
  
 A. Permitted Alterations. LESSEE shall not make or permit any
alterations, additions or improvements to the exterior of the Building or Parking Facilities, without the prior written consent of the LESSOR which shall not be unreasonably withheld, delayed, or conditioned. The cost of making such alterations,
improvements or additions and preparing said plans shall be borne by LESSEE. All such work shall be done in a good and workmanlike manner. All such work shall comply with all laws, ordinances or regulations of any governmental or administrative
agency having jurisdiction over the Premises, including any appropriate boards, commissions and underwriting agencies now or hereafter exercising similar rights and powers. 
  
 B. Trade Fixtures. LESSEE shall have the right at all times and at its sole expense to install LESSEE’s Trade
Fixtures, provided that LESSEE complies with all applicable governmental laws, ordinances and regulations. LESSEE shall upon the termination of this Lease, remove any of LESSEE’s previously installed Trade Fixtures, provided further that LESSEE
shall immediately repair any damage caused by such removal. 
  
 12. ESTOPPEL CERTIFICATES. LESSEE and LESSOR each agree at any time and from time to time within ten (10) days after a written request, to execute, acknowledge and deliver to the other a statement, in writing, and in form and substance
reasonably acceptable to LESSOR and LESSEE, certifying that this Lease is unmodified and in full force and effect (or if there have been modifications that this Lease is in full force and effect as modified and stating the modifications), and the
dates to which the Rent and other charges have been paid in advance, if any. 
  
 13. DELIVERY OF POSSESSION. Possession of the Property shall be delivered to LESSEE upon execution of this Lease. LESSEE shall have the right to specific performance to compel delivery of possession as provided
herein. 
  
 14. UTILITIES. 
  
 A. Connection to Utilities. LESSEE shall arrange for the
construction, installation, connection and operation of, and shall pay the cost of, all utility services, including, without limitation, water, sewer, gas, heat, cooling, power, telephone service and all other services to the Premises during the
Term and 
  

 B-6 

 LESSEE shall make payments when due directly to the utility or service company involved. LESSEE’s obligation to pay
its utility bills during the Term shall survive the termination of this Lease. LESSOR shall not be required to pay for any connection fees, services, supplies or upkeep in connection with utilities or other services to the Premises. 
  
 B. Liability. LESSOR shall not be liable in damages or otherwise to
LESSEE or to persons or property, if any utility service to the Premises is interrupted or terminated, unless caused by LESSOR’s gross negligence or willful misconduct, nor shall any such interruption or termination be construed as an eviction
(actual or constructive) of LESSEE, nor work an abatement of any Rent, nor relieve LESSEE from the obligation to fulfill each and every covenant or condition of this Lease, other than as a result of LESSOR’s gross negligence or willful
misconduct. 
  
 15. COMPLIANCE WITH LAWS, REGULATIONS AND
RESTRICTIONS. LESSEE shall comply with all governmental laws, rules, orders, ordinances, directions, regulations, and requirements of federal, state, county and municipal authorities, now in force or which hereafter may be in force, which shall
impose any duty upon LESSOR or LESSEE with respect to the use, occupation or alteration of the Premises, or the operations conducted by LESSEE at the Premises, whether material or incidental to said use and shall promptly comply with all changes in
governmental laws, ordinances, regulations, orders and directives and all restrictions and covenants of record affecting the Premises, including but not limited to the correction, prevention and abatement of nuisances in, upon, or connected with the
Premises, all at LESSEE’s sole risk and expense. 
  
 16. FIRE
AND CASUALTY DAMAGE. If the Property and/or Improvements are damaged or destroyed by fire or other cause, LESSEE shall give immediate notice thereof to LESSOR. The rights and obligations of LESSOR and LESSEE in the event of such casualty shall be as
follows: 
  
 A. Cost of Restoration Not Exceeding Fifty
Percent of Replacement Value. If during the Term of this Lease the Improvements are so damaged or destroyed by fire or other casualty that the cost of restoration shall not exceed fifty percent (50%) of the replacement value thereof, exclusive
of foundations, immediately prior to such damage, then the LESSEE, at its sole expense, shall promptly repair, restore, and replace the buildings and other improvements upon the Premises and refurnish such buildings and improvements in and to
substantially the same condition as before such damage or destruction. All proceeds from insurance shall be paid to and retained by the LESSEE and utilized first for purposes of payment of or reimbursement for the payment of, such repair,
restoration and replacement. If the amount of such insurance proceeds is insufficient to pay the cost of all work required in connection with any such damage or destruction, the LESSEE shall pay any additional sum required, and if the amount of such
insurance proceeds is in excess of the cost thereof, the amount of the excess shall be retained by the LESSEE. 
  

 B-7 

 B. Cost of Restoration Exceeding Fifty Percent of Replacement Value. If during the Term of this
Lease the Improvements are so damaged or destroyed by fire or other casualty that the cost of restoration shall exceed fifty percent (50%) of the replacement value thereof, exclusive of foundations, immediately prior to such damage, then the LESSEE
shall have the option, exercisable by written notice to LESSOR within sixty (60) days after the occurrence of such fire or other casualty of either (x) rebuilding or repairing the improvements to substantially the same condition as before such
damage or destruction, all in accordance with the provisions of Subparagraph 16.A above, or (y) clearing the site of all damaged or destroyed Improvements, in which event this Lease shall terminate. 
  
 17. CONDEMNATION. 
  
 A. Condemnation of Fee Interest. LESSEE shall be entitled to all
condemnation awards for any taking under the power of eminent domain or purchase in lieu thereof in excess of the sum of (i) the present value (as of the award date) of $800,000 payable upon the expiration of the First Renewal Period and (ii) the
present value (as of the award date) of the remaining Base Rent payments until the expiration of the First Renewal Period (such sum, the “Lease Value’). The LESSOR shall be entitled to all such awards up to the amount of the Lease Value.
For purposes of this paragraph, the present value of amounts shall be calculated using discount rates mutually acceptable to the parties. If any portion of the Land is taken such that the LESSEE’s use of the Premises is or will be materially
impaired, the LESSEE shall have the right to terminate this Lease, which right shall be exercised by LESSEE within sixty (60) days of such taking by sending written notice to LESSOR of such election to terminate. However, if such material impairment
arises out of a taking of so many of the parking spaces within the Premises as reduces the parking to less than 300 spaces or reduces the parking ratio below that which is required by the zoning ordinance applicable to the Premises, and LESSOR
notifies LESSEE in writing within thirty (30) days after notice of termination is given by LESSEE to LESSOR that LESSOR will attempt to provide LESSEE with substantially similar alternative parking, then this Lease shall terminate only if LESSOR is
unable or unwilling to provide the substantially similar alternative parking within sixty (60) days after LESSOR notifies LESSEE that LESSOR will attempt to provide LESSEE with the substitute parking. LESSOR shall have no obligation to provide or
attempt to provide such alternative parking. If any portion of the Property is taken such that the LESSEE’s use of the Premises is not materially impaired, this Lease shall continue with no reduction in Rent. 
  

 B-8 

 B. Condemnation of Improvements. Notwithstanding the foregoing or anything contained in this Lease
to the contrary, if any of the Improvements are condemned, taken under the power of eminent domain or purchased in lieu thereof, and if after such taking, the Improvements may be completed or restored so as to constitute a fully functional, complete
building reasonably suitable for the then LESSEE’s use thereof, the LESSEE shall be obligated to replace or restore such Improvements and shall be entitled to receive the condemnation proceeds derived from such taking of the Improvements except
as hereinafter provided in this Subparagraph 17.B. If after such taking the Improvements cannot be completed or restored so as to constitute a fully functional, complete building reasonably suitable for the LESSEE’s use thereof, then the LESSEE
and the LESSOR shall each have the right to terminate this Lease, which right shall be exercised by LESSEE or LESSOR within sixty (60) days of such taking by sending written notice to the other party of such election to terminate. If this Lease is
not terminated by either LESSOR or LESSEE hereunder, LESSEE shall be entitled to the condemnation award allocated to the Improvements and LESSEE shall restore the Improvements to substantially the same condition as existed prior to such taking. If
this Lease is so terminated by either LESSOR or LESSEE hereunder, LESSOR shall be entitled to that portion of the condemnation awards equal to the Lease Value and LESSEE shall be entitled to all condemnation awards in excess of the Lease Value.

  
 18. INDEMNIFICATION. 
  
 A. By LESSEE. LESSEE shall protect, indemnify and save harmless
LESSOR from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) imposed upon or incurred by or asserted against
LESSOR by reason of (a) any occurrence, injury to or death of persons (including workmen) or loss of or damage to property occurring on or about the Premises or any part thereof or the adjoining sidewalks, curbs, vaults, vault space, if any, streets
or ways to the extent attributable to LESSEE, its agents, contractors, employees, invitees or guests or which arises out of, or in the course of LESSEE’s use and occupancy of the Premises, (b) any use, non-use or condition of the Building or
any part thereof, (c) performance of any labor or services or the furnishing of any materials or other property in respect of the Premises or any part thereof, or (d) any release or threat of a release of a hazardous waste, hazardous substance or a
pollutant or contaminant, including petroleum and petroleum products, on or from the Building. 
  
 B. By LESSOR. LESSOR shall protect, indemnify and save harmless LESSEE from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without
limitation, reasonable attorneys’ fees and expenses) imposed upon or incurred by or asserted 
  

 B-9 

 against LESSEE by reason of any occurrence, injury to or death of persons (including workmen) or loss of or damage to
Premises to the extent attributable to LESSOR, its agents, contractors, employees, invitees or guests. The obligations of LESSOR under this Subparagraph arising by reason of any such occurrence having taken place during the Term shall survive any
expiration or termination of this Lease. 
  
 C. Joint
Liability. Where personal injury, death or loss or damage to property are the result of the joint negligence or misconduct of the parties hereto, the parties expressly agree to indemnify each other in proportion to their respective share of such
joint negligence or misconduct. 
  
 19. INSURANCE. 
  
 A. Required Coverages. At all times during the Term and at its sole
cost and expense, LESSEE shall obtain, maintain and keep in full force and effect, at its sole expense, the following insurance: 
  
 (i) Property insurance on the Premises, including coverage against all risks included within special peril coverage, in an amount not less than the
current replacement value of all Improvements, exclusive of the foundation, footings and parking area; 
  
 (ii) Property insurance, including coverage against all risks included within special peril coverage, upon property of every description owned by LESSEE
and located in the Improvements or for which LESSEE is legally liable or installed by or on behalf of LESSEE including, without limitation, the Trade Fixtures and all furniture, fittings, installations, other fixtures, inventory and any other
personal property in an amount not less than the full replacement cost thereof; 
  
 (iii) Commercial general liability and umbrella liability insurance coverage in limits of not less than $ 1 million per occurrence and $2 million in the aggregate. 
  
 (iv) Worker’s compensation and employer’s liability insurance in
form and amount required by law; 
  
 (v) During the construction
of the Improvements or any permitted alterations which are not covered by LESSEE’s then existing insurance as required above, LESSEE shall maintain builder’s risk insurance in such amounts as shall be required by LESSOR given the cost of
the construction. If any portion of the Improvements is completed and possession is taken by LESSEE, the builder’s risk insurance policy shall be endorsed to provide specifically for the coverage of any 
  

 B-10 

 such completed portion under the terms and conditions of the policy, so as to preclude the assertion of any and all
defenses predicated on the possession and use of the completed portion of the Improvements; 
  
 B. General Requirements. All policies shall be issued by insurers duly licensed in the Commonwealth of Virginia, reasonably acceptable to LESSOR, and in form reasonably satisfactory from time to time to LESSOR.
Upon LESSOR’s written request, LESSEE agrees that binding evidence of insurance will be delivered to LESSOR. All policies shall obligate the insurers to notify LESSOR in writing not less than thirty (30) days prior to any material change,
reduction in coverage, cancellation or other termination thereof and endeavor to give such notice prior to any change or reduction in coverage, including those for nonpayment of premium. The policies referred to in Subparagraph 19.A (iii) shall
name, as additional insureds, LESSOR and any other entity having an insurable interest or liability in or relating to the Premises (including any mortgagee of LESSOR). All such policies shall be primary and noncontributing with insurance carried by
LESSOR. 
  
 C. Waiver of Subrogation. LESSOR and LESSEE
each waive any and all rights to recover against the other or against the officers, directors, shareholders, partners, joint venturers, employees, agents, customers, invitees or business visitors of such other party, for any loss or damage to such
waiving party arising from any cause covered by any insurance required to be carried by such party pursuant to this Paragraph 19 including any amount which may be covered by deductible or self-insurance retainage or any other insurance actually
carried by such party to the extent of the limits of such policy. LESSOR and LESSEE shall have included in their respective insurance policies waivers of their respective insurers’ right of subrogation against the other party or anyone claiming
through or under such party that any such insurer may acquire against the other by virtue of payment of any loss under the insurance covering the Premises, the Improvements therein, or the contents thereof. If such a waiver should be unobtainable or
unenforceable, then such policies of insurance shall expressly state and agree that such policies shall not be invalidated if the insured, before the casualty, waives the right of recovery against any party responsible for a casualty covered by the
policy. LESSEE and LESSOR shall each provide written evidence reasonably acceptable to the other that its insurer or insurers have waived their rights of subrogation as provided above. 
  
 20. DEFAULT BY LESSEE. 
  
 A. Events of Default. The following events shall be deemed to be “events of default” by LESSEE under this Lease: 
  
 (i) If any installment of the Rent is not paid when due and such default is
not cured within ten (10) days after written notice thereof from LESSOR to LESSEE (provided LESSOR shall not be obligated to give written notice to LESSEE more than two (2) times in any Lease Year). 
  

 B-11 

 (ii) LESSEE’s failure to comply with any material term, provision or covenant of this Lease, if
such failure shall continue for more than thirty (30) days after written notice thereof from LESSOR to LESSEE, or if such failure is not reasonable susceptible to being cured within such thirty (30) day period, if LESSEE fails to commence to cure
such failure within such the thirty day period and diligently prosecute such cure to completion; 
  
 (iii) If LESSEE shall become insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment for the benefit of creditors, or
shall fail to pay its debts and obligations as the same become due and payable; 
  
 (iv) If LESSEE shall file a petition under any section or chapter of the Bankruptcy Code, as amended, or under any similar law or statute of the United States or any state thereof; or LESSEE shall be adjudged bankrupt
or insolvent in proceedings filed against LESSEE thereunder; or 
  
 (v) If a receiver or trustee shall be appointed for all or substantially all of the assets of LESSEE and such receiver or trustee shall within a reasonable time fail to (a) affirm this Lease, (b) provide adequate assurances as to its
ability to perform all of the terms and conditions of this Lease as a receiver or trustee for LESSEE, and (c) cure all defaults. 
  
 B. Remedies. Upon the occurrence of any of such events of default, LESSOR shall have the right at LESSOR’s election to pursue, in addition to
and cumulative with any other rights LESSOR may have, at law or in equity, any one or more of the following remedies without any notice or demand whatsoever: 
  

(i) To give LESSEE written notice of LESSOR’s intent to terminate this Lease, in which event, on the date specified in LESSOR’s notice,
LESSEE’s right to possession of the Premises shall cease, this Lease shall terminate and LESSEE shall have no further rights hereunder; 
  
 (ii) Upon the occurrence of any event of default and regardless of whether or not LESSOR shall have terminated this Lease or exercised any remedies
hereunder, LESSEE will, subject to the provisions of Subparagraph (iii), continue to pay to LESSOR the Rent and other sums required to be paid by the LESSEE hereunder, and acceptance of such Rent shall not constitute a waiver of any default
hereunder; thereafter, until the expiration of the Term, provided, however, that LESSOR has the duty to mitigate its damages. 
  

 B-12 

 (iii) Any damage or loss of rent sustained by LESSOR may be recovered by LESSOR, at LESSOR’s
option, at any time after the occurrence of an event of default, at the time of any reletting or termination, in a single action or in separate actions, from time to time, as such loss of rents or damages shall accrue, or in a single proceeding
deferred by LESSOR or with jurisdiction reserved by the court. If suit shall be brought for recovery of the Premises, for the recovery of Rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant
herein contained on the part of LESSEE to be kept and performed, and a breach shall be established, LESSEE shall pay to LESSOR all expenses incurred therefor, including reasonable attorneys’ fees. 
  
 C. Remedies Cumulative. Pursuit of any of the foregoing remedies shall
not preclude pursuit of any of the other remedies herein provided or any other remedies provided by law, nor shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any of the Rent due to LESSOR hereunder or of any damages
accruing to LESSOR by reason of the violation of any of the terms, provisions, and covenants herein contained. In case of re-entry, repossession or termination of this Lease, whether or not the same is the result of the institution of summary or
other proceedings, LESSEE shall remain liable (in addition to other accrued liabilities), to the extent legally permissible, for the Rent and all other charges provided for herein until the date this Lease would have expired had such termination,
re-entry or repossession not occurred. 
  
 21. SIGNS. LESSEE may
erect signs on the Property which it deems necessary in its sole discretion. 
  
 22. LESSOR’S RIGHT OF ENTRY. LESSOR and its authorized agents or designees shall have the right upon twenty-four (24) hours prior written notice (except in event of emergency) to enter the Premises during
business hours in order to inspect the Premises. 
  
 23. QUIET
ENJOYMENT. LESSOR represents that it has full right and power to execute this Lease and to grant the estate demised herein and that LESSEE, upon payment of the rents herein reserved, and performance of all of the terms, conditions, and covenants
herein contained, shall have, hold, and enjoy the Premises during the full term of this Lease, and any extension hereof, subject and subordinate to all of the terms, covenants and conditions of this Lease, free from the claims of any person claiming
by, through or under LESSOR, including the holders of any mortgage. 
  

 B-13 

 24. HOLDING OVER. If LESSEE, or any of its successors in interest, shall remain in possession of the
Premises, or any part thereof, after the expiration of the Term, such holding over shall constitute and be construed as, at LESSOR’s option, a tenancy at sufferance or as a tenancy from month to month only, at a monthly rental of one hundred
twenty five percent (125%) of the monthly rent applicable during the last month of the Term. LESSEE shall also pay any damages, if any, incurred by LESSOR as a result of such holding over provided notice is given to LESSEE by LESSOR upon securing
any replacement LESSEE. LESSEE shall also be subject to all of the conditions, provisions and obligations of this Lease insofar as the same are applicable to a month-to-month tenancy. Acceptance of rent shall constitute a renewal of this Lease on a
month to month tenancy. 
  
 25. SURRENDER OF LEASE NOT MERGER. The
voluntary or other surrender of this Lease by LESSEE, or a mutual cancellation thereof, shall not work a merger and shall, at the option of LESSOR, terminate all or any existing subleases, and/or subtenancies, or may, at the option of LESSOR, act as
an assignment to it of any or all such subleases or subtenancies, if any. 
  
 26. ATTORNEYS’ FEES. In any action to enforce this Lease, recover possession, collect any amount due or for relief or damages resulting from a breach of any covenant under this Lease, declaratory or otherwise,
the defaulting or non-performing party shall pay the reasonable attorney’s fees and costs of the prevailing party. 
  
 27. NOTICES. Any notice, statement, demand, request, consent, approval, authorization, offer, agreement, appointment or designation under this Lease by
either party to the other shall be in writing and shall be sufficiently given and served upon the other party if sent by certified mail, return receipt requested, postage prepaid, or by overnight delivery by a nationally recognized courier service
addressed as follows: 
  

					
	 If to LESSOR:
	 	Henry Brabham, IV	 	 
	 	 	         Vineyard Road
	 	 
	 	 	 Vinton, Virginia
	 	 
			
	 With a Copy to:
	 	
	 	 
	 	 	
	 	 
	 	 	
	 	 
			
	 If to LESSEE:
	 	 David C. Grunenwald
	 	 
	 	 	 Vice-President of Development/Leasing
	 	 
	 	 	 1231 Main Avenue
	 	 
	 	 	 Cleveland, Ohio 44113
	 	 

  

 B-14 

					
	 With a Copy to:
	 	 James L. Weinberg, Esq.
	 	 
	 	 	 Hirschler Fleischer
	 	 
	 	 	 P.O. Box 500 (23218-0500)
	 	 
	 	 	 15th
Floor
	 	 
	 	 	 701 East Byrd Street
	 	 
	 	 	 Richmond, Virginia 23219
	 	 

  
 or to such other place as LESSOR or
LESSEE may from time to time designate by notice to the other party. Notice sent in compliance with this Paragraph shall be deemed given upon receipt if given by hand, on the third (3rd) day next day on which it is sent if sent by mail, or on the
next day if sent by overnight delivery service. 
  
 28. WAIVER.
Either party’s delay or failure to declare or enforce the other party’s breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition for any subsequent breach of the
same or any other term, covenant, or condition herein contained. The subsequent acceptance of any Rent hereunder by LESSOR shall not be deemed to be a waiver of any preceding breach by LESSEE of any term, covenant, or condition of this Lease,
regardless of LESSOR’s knowledge of such preceding breach at the time of acceptance of such Rent. 
  
 29. GOVERNING LAW. This Lease shall be construed and governed by the applicable laws of the Commonwealth of Virginia. 
  
 30. STATUS OF LESSOR. LESSOR shall have the absolute and unfettered right to
sell or transfer all or part of its interest in the Premises, subject to this Lease, including, but not limited to, the Option to Buy set forth in paragraph 32, and LESSEE acknowledges and agrees that upon such sale or transfer the term
“LESSOR” shall mean only the new owner or transferee and the transferor shall be automatically relieved of and discharged of all further liability with respect to the performance of any of the terms, conditions and covenants of this Lease,
and LESSEE agrees to thereafter look only to such purchaser or transferee of LESSOR’s interest in the Premises for the subsequent performance of LESSOR’s obligations hereunder. 
  
 31. RELATIONSHIP OF THE PARTIES. Nothing contained in this Lease shall be construed by the parties hereto, or by any third
party, as constituting the parties as principal and agent, partners or joint venturers, nor shall anything herein render either party liable for the debts and obligations of any other party, it being understood and agreed that the only relationship
between LESSOR and LESSEE is that of LESSOR and LESSEE. 
  

 B-15 

 32. OPTION TO BUY. LESSOR grants to LESSEE the option to purchase (“Option To Buy “) the
Property for $800,000. Such Option may be exercised by LESSEE by giving written notice to LESSOR any time after the Term and first Renewal Period of the Lease. Such purchase shall be pursuant to a purchase agreement (“Purchase Agreement”)
in substantially the same form as that attached as Exhibit B. In the event LESSEE exercises the Option to Buy, the parties agree to execute the Purchase Agreement within five (5) days after LESSOR receives LESSEE’s notice of its exercise of the
Option to Buy. 
  
 33. MISCELLANEOUS PROVISIONS. 
  
 A. Titles, Etc. The marginal headings or titles to the Paragraphs of
this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part of this Lease. Whenever the singular number is used in this Lease and when required by the context, the same shall include the
plural, and the masculine gender shall include the feminine and neuter genders, and the word “person” shall include corporation, firm, or association. If there be more than one LESSEE, the obligations imposed under this Lease upon LESSEE
shall be joint and several. 
  
 B. Entire Agreement. This
instrument contains all of the agreements and conditions made between the parties to this Lease and may not be modified orally or in any manner other than by an agreement in writing signed by all of the parties to this Lease, or their respective
successors in interest. 
  
 C. Time of the Essence. Except
as otherwise specifically provided herein, time is of the essence of each term and provision of this Lease. 
  
 D. Successors. The terms and provisions of this Lease shall be binding upon and inure to the benefit of the heirs, executors, administrators,
successors, and assigns of LESSOR and LESSEE. 
  
 E.
Severability. If any provision of this Lease shall at any time be deemed to be invalid or illegal by the entry of a final judgment from a court of competent jurisdiction, which judgment is not subject to appeal, then, in that event, this
Lease shall continue in full force and effect with respect to the remaining provisions of this Lease as if the invalidated provision had not been contained herein. In lieu of such illegal, invalid, or unenforceable provision, there shall be added
automatically as a part of this Lease a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible to make such provision legal, valid, and enforceable. 
  
 F. Memorandum of Lease. Either party may record a memorandum of this
Lease provided that the memorandum is in a form acceptable 
  

 B-16 

 to LESSOR and LESSEE. The party seeking to record the memorandum shall bear the cost of recording the memorandum. LESSEE
hereby agrees that it will not record this Lease unless such recordation is expressly consented to in writing by LESSOR, which consent may be withheld or granted in LESSOR’s sole discretion. 
  
 G. Counterparts. This Lease may be executed in any number of
counterparts, each of which shall be an original but all of which shall together constitute one and the same instrument. 
  
 H. Authorization. Each party represents that he or it is duly authorized to enter into and perform this Lease. 
  
 I. Broker. LESSEE agrees to pay the leasing firm, Olde Colony Realty,
Inc. and its agent, Galen Conner, its agreed upon leasing commission. Otherwise, each party warrants to the other that no other agent is entitled to a commission in connection with a lease or sale of the Property to LESSEE, pursuant to the lease and
option to purchase granted herein and covenants to pay, hold harmless and indemnify the other party from and against any and all cost, expense or liability for any compensation, commissions and charges claimed by any broker or agent with respect to
this Lease or the negotiation therewith with whom such indemnifying party had dealings. 
  
 J. Force Majeure. Whenever a day is appointed herein on which, or a period of time is designated within which, either party is required to do or complete any act, matter or thing, the time for the doing or
completion thereof shall be extended by a period of time equal to the number of days on or during which such party is prevented from, or is materially interfered with in the course of, the doing or completion of such act, matter or thing because of
strikes, lock-outs, embargoes, unavailability of labor or materials, wars, insurrections, rebellions, declaration of national emergencies, acts of God, or other causes beyond such party’s reasonable control (financial inability excluded);
provided, however, nothing contained in this subparagraph shall excuse either party from the prompt payment of any amount payable by such party hereunder except as may be expressly provided elsewhere in this Lease. 
  
 K. Rule Against Perpetuities. If the Rule Against Perpetuities would
invalidate this Lease or any portion hereof, or would limit the time during which this Lease shall be effective, due to a potential failure of an interest in property created herein to vest with a particular time, then, notwithstanding anything
contained in this Lease to the contrary, each such interest must vest, if at all, within twenty-one (21) years from the date of this Lease. If any such interest does not vest within that period, then this Lease shall automatically terminate
immediately prior to the expiration of that twenty-one (21) year period. 
  

 B-17 

 L. Time Periods. Should the last day of a time period fall on a weekend or legal holiday, the next
business day thereafter shall be considered the end of the time period. 
  
 M. Cooperation. LESSOR agrees to cooperate with LESSEE (at no material cost to LESSOR) to assist LESSEE in obtaining any approvals requested or required by governmental bodies or lenders to enable LESSEE to construct the Improvements
and operate its business on the Premises. 
  
 IN WITNESS WHEREOF,
LESSOR and LESSEE have signed and sealed this Lease as of the day and year above written. 
  
 LESSEE: 
  

					
	 Colonial Downs, L.P.

	 By:
	 	 Stanley Racing Corp., General Partner

			
	 	 	By:	 	  

			
	 	 	Name:	 	  

			
	 	 	Title:	 	  

  
 LESSOR: 
  

					
	  

	 Henry J. Brabham IV

  

					
	  

	 Gail T. Brabham

  
 EXHIBITS 
  
 EXHIBIT A – MAP OF THE PROPERTY 
 EXHIBIT B – PURCHASE AGREEMENT 
  

 B-18 

 EXHIBIT C 
  

Purchase Agreement 
  
 PURCHASE AGREEMENT 
  
 THIS PURCHASE AGREEMENT (“Agreement”), dated as of the      day of
                    ,             , by and between Henry Brabham, IV and
Gail T. Brabham (collectively “Seller”) and Colonial Downs L.P. a Virginia limited partnership (“Purchaser”), and recites and provides: 
  
 RECITALS 
  
 A. Seller is the owner of fee simple title to approximately 8.539 acres of real property subject to adjustment based on the Survey (as hereinafter
defined), with improvements thereon and appurtenances thereunto belonging, on Vineyard Road, in Vinton, Virginia (the “Property”). 
  
 B. The Seller has granted to the Purchaser the Option to Buy the Property in the Lease between the parties dated as of the
    day of                     , 2004 (“Lease”). 
  
 C. Purchaser has notified Seller of its intention to purchase such Property
as provided in such Lease. 
  
 AGREEMENT

  
 NOW, THEREFORE, in consideration of their mutual promises
hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto covenant and agree as follows: 
  
 1. Contract for Purchase and Sale. This Agreement shall constitute a binding contract, on the terms and conditions
herein set forth, for the purchase and sale of the Property. 
  
 2. Purchase Price. The purchase price (the “Purchase Price”) for the Property shall be Eight Hundred Thousand and No/100 Dollars ($800,000). The Purchase Price shall be payable immediately useable funds at Settlement (as
such term is defined in Paragraph 3). 
  
 3. Settlement.
Settlement of the purchase and sale of the Property shall be made at the offices of
                                        ,
or at 
  

 C-1 

 such other place as the parties may agree upon in writing, no later that thirty (30) days after Purchaser has notified
Seller of its intention to purchase the Property. At Settlement, the Purchaser shall pay to the Seller the Purchase Price and contemporaneously the Seller shall deliver to Purchaser (a) the Deed (as defined in Paragraph 5); (b) an affidavit for the
benefit of Purchaser and its title insurer, satisfactory to both (the “Affidavit”), stating, inter alia that (i) no right to a mechanic’s or materialmen’s lien has accrued with respect to the Property as a result of
any act or omission by the Seller and (ii) there are no outstanding leases or agreements with regard to, or other parties in or entitled to possession of, the Property; (c) a Certificate of Non-Foreign Status as required by Section 1445 of the
Internal Revenue Code of 1986 and any other certificates required by any governmental authority or agency; (d) evidence of registration with the Commonwealth of Virginia Department of Taxation in compliance with § 58.1-317 of the Code of
Virginia of 1950, as amended. The Seller shall pay the costs of preparing the Deed and the Grantor’s tax thereon. The Purchaser shall pay all costs and expenses incurred in connection with its examination of title to the Property and the Survey
and all premiums charged by the Purchaser’s title insurance company. Real estate taxes, including “rollback” taxes, if any, shall be prorated between the Seller and the Purchaser as of Settlement, according to the number of days of
the year which the Property is owned or to be owned by each party. Each party shall pay its own legal, accounting and other expenses incurred in connection with this Agreement or Settlement hereunder. 
  
 4. The Deed. At Settlement, the Seller shall deliver to the Purchaser
a general warranty deed with full English covenants of title (the “Deed”) conveying to the Purchaser a good and marketable fee simple title to the Property pursuant to the Survey, free and clear of all liens, encumbrances, conditions and
restrictions except (i) the lien for real estate taxes not yet due and payable; and (ii) any liens, encumbrances, conditions, restrictions or other objections to title which do not, in Purchaser’s reasonable opinion, adversely effect
Purchaser’s use of the Property. 
  
 5. Risk of Loss.
The risk of loss or damage to the Property by fire or other casualty prior to Settlement shall be on the Seller, except as otherwise provided in the Lease. If such loss or damage materially and adversely affects the Purchaser’s intended use and
enjoyment of the Property as of Settlement, the Purchaser shall be entitled to terminate this Agreement and the parties hereto shall have no further obligations or liabilities to one another hereunder. 
  
 6. Default By Seller. The parties agree that, in the event of a
default by Seller under this Agreement, Purchaser shall be entitled to enforce this Agreement by specific performance. 
  
 7. Agents and Brokers. Each party hereunder represents and warrants that it did not consult or deal with any broker or agent, real estate or
otherwise, 
  

 C-2 

 with regard to this Agreement or the transactions contemplated hereby, and each party hereto agrees to indemnify and hold
harmless the other party from all liability, expense, loss, cost or damage, including reasonable attorneys’ fees, that may arise by reason of any claim, demand or suit of any agent or broker arising out of facts constituting a breach of the
foregoing representations and warranties. 
  
 8. Binding
Agreement. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 9. Notices. Any notice, request or demand required or permitted to be given pursuant to this Agreement shall be conform to the Notice provision
outlined in the Lease. 
  
 10. Interpretation. When the
context in which words are used in this Agreement indicates that such is the intent, words in the singular number shall include the plural, and vice versa, and words in the masculine gender shall include the feminine and neuter genders, and vice
versa. 
  
 11. Title and Headings; References. Titles and
headings to Paragraphs and Subparagraphs herein are inserted for the convenience or reference only, and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. All Paragraph and Subparagraph references in this
Agreement are to the Paragraphs or Subparagraphs of this Agreement unless expressly stated to the contrary. 
  
 12. Entire Agreement; Modification. This Agreement contains the entire agreement between the parties hereto relating to the Property and supersedes
all prior and contemporaneous negotiations, understandings and agreements, written or oral, between the parties hereto. This Agreement shall not be amended or modified and no waiver of any provision hereof shall be effective unless set forth in a
written instrument executed with the same formality as this Agreement. 
  

 C-3 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its name
pursuant to due authority as of the dates set forth below. 
  
 PURCHASER: 
  

					
	 Colonial Downs, L.P.

	 By:
	 	 Stanley Racing Corp., General Partner

			
	 	 	 By:
	 	  

			
	 	 	 Name:
	 	  

			
	 	 	 Title:
	 	  

  
 SELLER: 
  

					
	  

	 Henry J. Brabham IV

  

					
	  

	 Gail T. Brabham

  

 C-4Deed of Lease Agreement Dated 05/08/2003

 EXHIBIT 10.11 
  
 DEED OF LEASE 
  
 THIS DEED OF LEASE is made this May 8, 2003, by and between HAYNES CHIPPENHAM PLAZA, L.L.C., a Virginia limited liability company, party of the
first part (hereinafter referred to as “Landlord”); and COLONIAL DOWNS, L.P., a Virginia limited partnership, party of the second, part (hereinafter referred to as “Tenant”). 
  
 WITNESSETH: 
  
 WHEREAS, Landlord is the owner of certain real property, lying and being in
the City of Richmond, Virginia, and known as 6550 Hull Street Road, Richmond, Virginia, containing approximately 11,457 square feet (the “Premises”), more particularly described on a plat, a copy of which is attached hereto and
marked “Exhibit A,” together with the right to use the driveways, parking areas, sidewalks and other common areas of the Shopping Center (as defined herein) as provided herein (the “Common Areas”) located in Haynes Plaza
more particularly shown on “Exhibit A” (the “Shopping Center”); and 
  
 WHEREAS, Landlord wishes to lease the Premises with all improvements thereon to Tenant, and Tenant wishes to lease the Premises with all improvements thereon from Landlord; and 
  
 NOW, THEREFORE, for and in consideration of the sum of TEN DOLLARS ($10.00),
in hand paid by Tenant to Landlord, and other good and valuable considerations, the receipt and sufficiency whereof are hereby acknowledged by each of the parties hereto, Landlord hereby grants to Tenant a lease for the Premises from Landlord,
subject to the following terms and conditions: 
  
 ARTICLE 1

 Lease Period 
  
 1.1 Initial Term. The initial term of this Lease shall commence on the earlier to occur of (i) the date Tenant opens for business at the Premises
or (ii) April 1, 2004, provided the conditions set forth in Article 21 hereof are satisfied or waived (such date being referred to as the “Commencement Date”), and shall continue for a period of five (5) years thereafter (such period being
referred to as the “Initial Term”). 
  
 1.2 Renewal
Term. Tenant shall have the right, six (6) months’ prior written notice to Landlord given prior to the Initial Term and any subsequent term, as applicable, to extend the term of this Lease for up to four (4) additional terms of five (5)
years each upon a rent as set forth in paragraph 2.1 herein. 

 ARTICLE 2 
 Payment of Rental and Deposit 
  
 2.1 Amount. 
  
 (a) The
Tenant shall pay to Landlord annual rental, which shall be paid in equal monthly installments, in advance, the first installment being payable upon the execution of this Lease by the parties hereto and similar installments being due and payable on
the first (1st) day of each and every calendar month. Annual rental is as follows: 
  

			
	 Period Covered

	  	 Annual Amount

		
	Commencement Date through end of Initial Term	  	Seven Dollars ($7.00) per square foot of gross leasable area in the Premises
		
	First Five (5)-Year Option	  	Eight Dollars ($8.00) per square foot of gross leasable area in the Premises
		
	Second Five (5)-Year Option	  	Nine Dollars ($9.00) per square foot of gross leasable area in the Premises
		
	Third Five (5)- Year Option	  	Ten Dollars ($10.00) per square foot of gross leasable area in the Premises
		
	Fourth Five (5)-Year Option	  	Eleven Dollars ($11.00) per square foot of gross leasable area in the Premises

  
 (b) If any payment is
not paid when due under this Lease and is delinquent for more than fifteen (15) days, the Tenant agrees to pay a late charge of five cents ($.05) for each dollar for each and every monthly installment that becomes overdue. Such charge is
acknowledged and agreed, by Landlord and Tenant, to be a charge other than interest and to be fully earned and non-refundable when due. 
  
 (c) In the event that Tenant fails to timely pay any installment of annual rental or any other amount due Landlord, after the expiration of all cure
periods, such unpaid installment or amount shall bear interest at the Prime Rate of Bank of America, from time to time, plus three percent (3%) until paid. In the event that Tenant fails to pay any other items required to be paid by Tenant
hereunder, 
  

 2 

 then and in that event Landlord may, but shall not be obligated to, pay the same and add the amount paid, together with
interest at the Prime Rate of Bank of America, from time to time, plus three percent (3%) until paid, to the amount of the next annual installment of rent to be paid by the Tenant hereunder; and if Landlord pays any other amount to correct a default
by Tenant (including reasonable costs, expenses, and attorney’s fees in connection therewith), or Tenant pays any amount to correct a default by Landlord, such nondefaulting party may, but shall not be obligated to, add or deduct, as the case
may be, the amount paid, together with interest at the above rate, to the amount of the next installment of rent to be paid by Tenant hereunder. Any amount so added shall be deemed to be rent. 
  
 2.2 Place of Payments. All rent payable by Tenant to Landlord under
this Lease shall be paid to Landlord at the address provided in paragraph 5.1 herein, or at such other address as shall be designated by notice given, as provided in this Lease. 
  
 2.3 Determination of Premises Area. For purposes of determining rent and Tenant’s pro-rata share of CAM and
Taxes, the gross leasable area of the Premises shall be computed by measuring from the center line of interior walls to the outside of exterior walls and shall exclude elevator shafts, stairwells, ductwork, and mezzanines, and any mechanical rooms
or closets or equipment areas not exclusively serving the Premises. If Tenant elects to use the “Satellite Dish Area” described herein, or the rooftop area as provided herein, such areas shall also expressly be excluded from gross leasable
area. 
  
 ARTICLE 3 
 Title 
  
 3.1 Ownership. Landlord warrants and represents that Landlord is the sole owner of fee simple title to the Premises and that no other person,
partnership, corporation, or other entity has the right to lease (as defined herein) or possess the Premises. Landlord also represents to Tenant that title to the Premises is free of all liens, leases, and encumbrances and is insurable by a title
policy issued by a reputable title insurance company at its standard rates, subject only to current City Taxes, not yet due and payable, and general utility and drainage easements, which do not adversely affect the use of the Premises. 

 
 ARTICLE 4 – Intentionally Deleted. 
  
 ARTICLE 5 
 Notices 
  
 5.1 Addresses. All notices, demands, and delivery of surveys and any and all other communications that may be or are required to be given to or made by 
  

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 either party to the other in connection with this agreement shall be in writing and shall be deemed to have been properly
given if sent by overnight courier or by United States registered or certified mail, return receipt requested, postage prepaid, to the parties at the following addresses: 
  
 If to Landlord: 
  
 Haynes Furniture Company, Inc., 
 a Virginia corporation 
 ATTN: Senior Vice President 
 5324 Virginia Beach Boulevard 
 Virginia Beach, Virginia 23462 
  
 With a copy to: 
  
 H. David Embree, Esquire 
 Hofheimer Nusbaum, P.C. 
 1700 Dominion Tower 
 Norfolk, Virginia 23510 
  
 If to Tenant: 
  
 Colonial Downs, L.P. 
 10515 Colonial Downs Parkway 
 New Kent, VA 23124 
 ATTN: Ian M. Stewart 
  
 With a copy to: 
  
 James L. Weinberg, Esquire 
 Hirschler Fleischer 
 701 East Byrd Street (23219) 
 P.O. Box 500 
 Richmond, VA 23218-0500 
  
 or at such other address as Landlord or
Tenant may have designated from time to time by written notice to the other party hereto. The date of service of such notices shall be the date such notices are mailed by the addressor. 
  
 ARTICLE 6 
 Demised Premises 
  
 6.1 Premises.
The Landlord does hereby demise and lease unto Tenant, and Tenant does hereby take and lease from Landlord, the Premises, being all that 
  

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 certain parcel of land, with the improvements thereon and appurtenances thereunto belonging, lying and being in the City
of Richmond, Virginia, and being more particularly described on “Exhibit A” attached hereto, for the term, upon the rentals, and conditions hereinafter set forth. 
  
 ARTICLE 7 
 Possession 
  
 7.1 Possession.
Exclusive possession of the Premises shall be given to Tenant as of the date on which the conditions precedent set forth in Article 21 below are either satisfied or waived, as evidenced by written notice to Landlord. Tenant shall have the right of
entry from and after execution of this Lease at all reasonable times to inspect, survey, measure and evaluate the Premises. 
  
 ARTICLE 8 
 Parking and Common
Areas; Signage 
  
 8.1 Access/Parking. Tenant shall
have the non-exclusive use, in common with others, of the parking areas, entrances, drive aisles, roadways, means of ingress and egress, service areas and other common areas of the Shopping Center, subject to Landlord’s adoption of reasonable
uniformly applied and enforced rules and regulations provided that Landlord reserves the right to designate a portion of the parking spaces immediately adjacent to Harbor Freight Tools in the area shown on Exhibit A-1 as “Harbor Freight
Exclusive Parking” for exclusive use by Harbor Freight customers. Landlord hereby agrees that Tenant shall also have exclusive use of those ten (10) parking spaces located adjacent to the Premises designated on Exhibit A-1 hereto as
“Tenant’s Exclusive Parking”. Tenant shall have the right to erect signs on Tenant’s Exclusive Parking spaces identifying such parking as “Exclusive Parking for Colonial Downs – Violators will be Towed at Owner’s
Expense”, or similar language. Landlord shall have no liability to Tenant in the event other tenants or occupants park in such spaces and shall not be obligated to police parking usage provided, however, Landlord agrees to validate in writing
that Tenant has been granted such rights, hereby authorizes Tenant to tow vehicles which may park in such spaces and shall support Tenant’s rights to take such action in any dispute, controversy, proceeding, litigation or otherwise to the
fullest extent possible including sending supporting notices and letters. Landlord further warrants that it shall provide and maintain at all times not less than seven hundred twenty-five (725) parking spaces in the Shopping Center for use by
Tenant. 
  
 8.2 Signs. Tenant is hereby granted an
exclusive easement to either (i) erect a pole sign of at least forty (40) feet in height along the west end of the Shopping Center so that it is visible from Chippenham Parkway in a location to be determined as provided herein or (ii) erect a sign
on the roof of the existing Haynes Furniture Store, in either case, subject to approval by governmental authorities 
  

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 having jurisdiction over such sign. Tenant will be permitted only to erect one of the two signs described above. Tenant
may also, at its election, erect two (2) exterior signs on the front and rear walls of the Premises. If Tenant erects a sign on the roof pursuant to these provisions, Tenant will repair any and all damage to the roof resulting from the posting of
such sign. The design and location of the signs shall be subject to Landlord’s approval, not to be withheld, delayed or conditioned unreasonably. Landlord shall have ten (10) days to approve any submission of signage from Tenant. If not
disapproved with reasons for disapproval stated by written notice to Tenant within such ten (10) day period, such submission shall be deemed approved. Tenant shall bear all costs in erecting such signs and shall be responsible for obtaining all
governmental approvals requested therefore. Landlord agrees to join in and timely support all applications for permits, licenses and approvals necessary to erect and assemble such signs. Landlord shall also permit Tenant to place its sign panel on
one of the currently vacant sign panels on the existing pylon for the Shopping Center as shown on Exhibit B. All signs shall be available to Tenant throughout the term of this Lease and any renewal. 
  
 8.3 Communications Installations. Tenant shall also have the exclusive
right to use, throughout the term of this Lease and any renewal, at no additional expense, an area in the Shopping Center, in a location reasonably acceptable to Landlord and Tenant (the “Satellite Dish Area”) for installation,
maintenance, operation, repair and replacement of satellite and other telecommunications equipment, provided all necessary governmental approvals are obtained by Tenant at Tenant’s expense. Tenant shall pay to Landlord any increased real estate
taxes solely resulting from Tenant’s installations in the Satellite Dish Area, on demand after Landlord receives any bills which include such additional taxes. Landlord and Tenant shall work in good faith to agree on a mutually acceptable
location for the Satellite Dish Area during the ninety (90) day period following execution hereof. 
  
 ARTICLE 9 
 Hazardous Materials 
  
 9.1 Environmental Requirements. Neither Landlord nor Tenant shall
allow, permit or cause: (i) the generation, accumulation, storage, release or threat of release of hazardous substances, pollutants, hazardous waste or toxic materials as those terms are used in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (“CERCLA”), 42 U.S.C. § 9601 et seq., as amended, Toxic Substances Control Act of 1976, Resource Conservation and Recovery Act of 1976 or in any other federal, state or local law (and all
regulations promulgated under any of the same) as such laws are amended from time to time (collectively, “Hazardous Substances”), on the Premises, including, but not limited to, polychlorinated biphenyls (PCBs) and asbestos, but not
including hazardous substances which are used or disposed of by Tenant in its usual operations provided same are used, stored, handled and disposed of in compliance with all applicable 
  

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 laws and regulations, (ii) the spilling or leaking of petroleum products on or from the Premises (other than immaterial
quantities in connection with the operation of motor vehicles); (iii) the draining, filling or modification of wetlands (as defined in federal, state or local law, regulation or ordinance) on the property on which the Premises is located; (iv) the
disposal of any hazardous substances, hazardous waste or toxic materials, or (v) any other environmental condition with regard to the Premises which could result in liability for an owner or operator of the Premises. 
  
 9.2 Indemnification. Landlord shall, at all times, indemnify, defend
and hold harmless Tenant against and from any and all claims, liens, suits, actions, debts, damages, costs, losses, liabilities, obligations, judgments, and expenses (including, without limitation, court costs and attorneys’ fees), of any
nature whatsoever, arising from any prior use or operation of the Premises or Shopping Center and arising from or relating to Landlord’s acts which result in (i) non-compliance with any Federal, state or local environmental statutes including,
without limitation, RCRA and CERCLA, as amended, or (ii) the release or discharge or disposal of any Hazardous Substance affecting the Premises or surrounding areas. The term Hazardous Substances shall include building materials and building
components including, without limitation, asbestos contained in or comprising building materials or building components. 
  
 Tenant shall indemnify, defend and hold Landlord harmless against and from any and all claims, liens, suits, actions, debts, damages, costs, liabilities,
obligations, judgments and expenses (including without limitation, court costs and attorneys fees) arising (i) from or out of Tenant’s non-compliance with any applicable Federal, state, or local environmental statutes, or (ii) from or out of
the release or discharge or disposal by Tenant of any such Hazardous Substances on or in the Premises or surrounding area. 
  
 ARTICLE 10 
 Taxes, Assessments,
and Commissions 
  
 10.1 Payment of Additional
Rent. Subject to the limits in paragraph 10.5 below, Tenant shall pay its actual Prorata Share of Taxes (as defined herein) (see paragraph 10.2) and its share of CAM costs (see paragraph 10.3) to Landlord for periods after the Commencement Date.
Tenant shall pay its share of Taxes within thirty (30) days after Tenant receives a copy of the paid Tax bill. Tenant shall pay its share of CAM costs on the first day of each month, commencing on the Rent Commencement Date and continuing on a
monthly basis throughout the Lease Term. Tenant’s monthly payments shall be equal to one-twelfth (1/12) of Tenant’s actual CAM cost payment for the previous year, but for the period from the Commencement Date until the end of the first
full calendar year after that date Tenant shall make estimated monthly payments in an amount reasonably determined by Landlord prior to the Commencement Date. Within 120 days after 
  

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 the expiration of each calendar year, Landlord shall furnish to Tenant Landlord’s annual statement of expenses,
itemized by category (“Landlord’s Reconciliation”) and such other documentation as Tenant reasonably requests. Tenant shall pay to Landlord within thirty (30) days after Tenant’s receipt of Landlord’s Reconciliation any
outstanding deficiency for the foregoing calendar year. If Landlord’s Reconciliation reflects an overpayment by Tenant for the calendar year, Tenant shall be given a credit against CAM costs for the ensuing calendar year (or in the last year of
the Lease Term, Tenant shall be given a cash refund of overpayment within thirty (30) days after the date of receipt of Landlord’s Reconciliation). Tenant’s “Prorata Share” for purposes of computing CAM costs and Taxes hereunder
shall be the gross leasable area of the Premises (determined pursuant to paragraph 2.3 above) (excluding mezzanines) divided by the gross leasable area of all buildings (including the Building) in the Shopping Center (excluding mezzanines), and
adjusted when necessary to reflect new leasable area (but shall not be increased if buildings in the Shopping Center are removed by casualty, condemnation, or otherwise). However, any increase in Tenant’s CAM costs and Taxes payment shall be
limited as provided in paragraph 10.5 herein. CAM costs and Taxes shall be prorated for partial years. Landlord waives Taxes and CAM costs that are not billed within 24 months from the date due. The provisions of this Lease shall not be deemed to
require Tenant to pay, by whatever name called, municipal, state, county, or federal income or receipts or excess profits Taxes assessed against Landlord, or municipal, county, state, or federal capital levy, estate, succession, inheritance, gift,
or transfer Taxes of Landlord, or corporation franchise Taxes imposed upon any corporate owner of the fee of the Premises, or any tax, whatever form it takes, in lieu of any such Taxes. 
  
 10.2 Taxes. “Taxes” means all real estate Taxes and other levies and assessments against the Shopping
Center (unless the Building is separately assessed), except (a) Taxes on undeveloped land in the Center; (b) Taxes on land in any out parcel area; (c) Taxes levied by special taxing districts; and (d) income, excess profit, estate, franchise,
development, transfer, recordation and similar Taxes. Landlord shall send Tenant a copy of assessment notices at least 15 days before the appeal deadline. If Tenant requests that Landlord appeal a Taxes assessment, including any assessment on
Tenant’s satellite dish installation, and if Landlord declines to appeal, Tenant may appeal that assessment at no cost to Landlord, but Landlord shall cooperate, and Tenant may deduct its appeal expenses from any Taxes refund obtained as a
result of the appeal. Neither party may compromise an appeal without the other’s approval, which approval shall not be unreasonably withheld, conditioned or delayed. 
  
 10.3 CAM. “CAM costs” means Landlord’s direct, out-of-pocket costs, charges, and expenses reasonably
paid to “Third Parties” (i.e., parties that are neither Landlord nor affiliates of Landlord) or otherwise incurred as obligations to Third Parties by Landlord (without markups) in connection with cleaning, 
  

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 maintaining, repairing and insuring the Common Areas in accordance with Landlord’s obligations hereunder (including
a third party management fee not to exceed 5% of those costs if outside management is employed), the premium for the casualty and liability insurance required under paragraph 15.1, and utilities such as water and sanitary sewer on master meters
which serve multiple Tenants in the Shopping Center and parking lot lighting. However, “CAM costs” do not include: (1) the cost of any capital expenditures, provided that such capital expenditure costs shall be depreciated on a
straight-line basis according to generally accepted accounting principles over their useful life for federal income tax purposes with only the annual straight-line depreciation attributable to the given lease year being included in CAM costs for
such lease year, so long as such capital item reduces or eliminates a CAM cost that otherwise would have been payable by Tenant (but for this provision); (2) the cost of repairing or replacing any portion of the Common Area, the original
construction of which was defective or where the repair or replacement is necessitated by Landlord’s negligent acts or omissions, or default of Landlord’s obligations under this Lease; (3) the cost of repairs that are covered by guaranties
and/or warranties, or that are reimbursed, in whole or in part, by insurance, other tenants, or otherwise by third parties; (4) any Taxes or assessments levied against any portion of the Common Area (including without limitation any interest and
penalties on such Taxes); (5) costs (other than reasonable grass cutting costs) to maintain unimproved land; (6) interest, late charges and/or penalties imposed on any CAM costs; (7) business license fees; (8) the cost of investigating, monitoring
or remedying any environmental condition; (9) the cost of any improvements, repairs and maintenance (a) caused by or resulting from the negligence or acts or omissions of Landlord or (b) required in order to permit the occupation of space in the
Center by other tenants, their respective agents, contractors, employees, and/or invitees (including without limitation any painting, redecorating or other work performed by Landlord for any tenant or prospective tenant); (10) the cost of any
repairs, improvements, electricity, special cleaning or overtime services provided solely for the benefit of any other tenant or leasable area in the Center; (11) the cost of compliance with applicable legal requirements which are applicable to
initial construction of the Improvements, supervision, profit, and/or general overhead, other than a possible 5 % administrative fee as set forth in this paragraph; (12) depreciation other than as set forth above with respect to capital
expenditures; (13) interest on and amortization of debt; (14) repairs or other work (including rebuilding) occasioned by fire, windstorm or other casualty, whether or not insured, or repairs required by a condemnation; (15) rent payable under any
lease to which this Lease is subject such as a ground or underlying lease; (16) costs incurred as a result of any violation by Landlord of such underlying or ground lease or any mortgage; (17) costs incurred as a result of enforcing leases against
other tenants in the Center or in defense of Landlord’s title (including, without limitation, legal fees); or (18) salaries, wages, benefits or Taxes of employees, managing agents’ fees or leasing agents’ commissions. On 20 days’
notice to Landlord, Tenant may inspect or audit the CAM 
  

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 records at Landlord’s headquarters, not more often than annually. Tenant shall conduct any audit with a C.P.A. or
accountant paid by Tenant, using generally accepted auditing standards, and not unreasonably interfering with Landlord’s business. Landlord shall promptly pay any overcharge of CAM costs due, and if the overcharge exceeds 5% of CAM costs due,
Landlord also shall pay the audit cost. 
  
 10.4 Tenant’s
Right to Contest. Intentionally deleted. 
  
 10.5 Annual
Cap. Payments due from Tenant under paragraphs 10.1 and 10.2 above shall be subject, however, to an annual cap on increases. In no event shall Tenant’s combined payments under paragraphs 10.1 and 10.2 in the first year exceed One Dollar
($1.00) per square foot leased. Such amounts shall not increase in any subsequent year by an amount in excess of (i) the aggregate percentage change in the CPI Price Index over the 12 month period immediately preceding the first day of the
2nd and each succeeding lease year, as applicable, multiplied by (ii) Tenant’s actual Prorata Share of CAM
costs and Taxes for the immediately preceding lease year (as limited by this paragraph 10.5). 
  
 “CPI Price Index” means the Consumer Price Index, U.S. City Average, All Urban Consumers, All Items (1982-1984=100) published by the Bureau of Labor Statistics of the United States Department of Labor or, if
the Bureau of Labor Statistics discontinues such publication, then any other corresponding standard cost of living index then prepared and published by the U.S. Government, such determination shall be made effective as of the first day of
2nd and each subsequent lease year (each, an “Adjustment Date”). The aggregate percentage change in the
CPI Price Index for such period shall be a fraction, the numerator of which is the CPI Price Index in effect on the Adjustment Date and the denominator of which is the Price Index in effect as of the first day of the immediately preceding lease
year. 
  
 ARTICLE 11 
 Construction of Improvements; Use of Premises 
  
 11.1 Landlord’s Improvements. Landlord shall cause the Common Areas and Shopping Center to meet all requirements of the Americans with
Disabilities Act related to access. Landlord shall also cause all utilities, other than water and sanitary sewer, to be separated from other tenant utility lines, stubbed into the Building and separately metered. Tenant acknowledges that since water
cannot be subjected to separate metering, neither can sanitary sewer service. Landlord has installed a full interior sprinkler system to the Premises and shall bear any costs necessary to make such existing sprinkler system compliant with all
applicable laws. Tenant shall have the right to modify the existing interior sprinkler systems and related equipment in accordance with Tenant’s final approved plans and specifications for the Premises at Tenant’s expense. Tenant, at
Tenant’s sole expense, shall also be responsible for any other work, alterations or improvements 
  

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 necessary for Tenant to obtain a valid certificate of occupancy for the Premises. However, if repairs, alterations or
improvements to the structural components of the Premises, systems or Shopping Center are required by applicable law in order for the Premises to meet current code requirements for general retail use and such repairs, alterations, or improvements
are not due solely to the specific nature of Tenant’s improvements, Landlord shall perform the same at its expense. The foregoing work shall be fully completed by Landlord, at no cost to Tenant, prior to the Commencement Date. In addition,
Landlord shall provide Tenant with a work allowance of $55,000.00 for use by Tenant in performing its HVAC work and plumbing/fixturing work in bathrooms. The allowance shall be paid to Tenant within ten (10) days following Tenant’s installation
of the HVAC system and completion of bathroom improvement work. If the allowance is not paid within thirty (30) days following completion of the foregoing work, Tenant shall be entitled to offset such unpaid amounts against rent due hereunder.

  
 If Tenant objects to any allocated assessment of water and
sewer usage under Article 10, Tenant shall be entitled to install separate meters for the Premises and shall thereafter not be billed by Landlord for master water or sewer costs. 
  
 11.2 Tenant’s Improvements. Tenant shall renovate the Building pursuant to Plans and Specifications which are
approved by Landlord. As part of Tenants work, Tenant shall install an HVAC system with at least thirty (30) tons of capacity and which shall, in Tenant’s sole opinion, be adequate to service Tenant’s use of the Premises. Tenant shall have
the further right, at any time after the date hereof, to make interior alterations and improvements to the Premises as Tenant shall deem necessary or desirable, provided that said construction shall be of first class quality. All improvements made
by the Tenant shall become the property of the Landlord at the expiration of this Lease. If any alterations or improvements involve exterior or structural changes, Tenant shall obtain Landlord’s written approval prior to Tenant undertaking such
work, such approval not to be unreasonably withheld or delayed. 
  
 11.3 Indemnity by Tenant. Tenant covenants and agrees promptly to pay all sums legally due and payable by Tenant on account of any labor performed or materials supplied for which Tenant is responsible for the payment of and for which
any lien is or can legally be asserted against the Building, including the improvements thereon (or Tenant’s leasehold interest hereunder) and that Tenant will save Landlord harmless from and against all such asserted claims or liens, including
the cost of removing same. Tenant agrees that any lien for services, labor, or materials provided can only be placed on the Tenant’s leasehold interest in the improvements placed upon the Building, but not the land or existing improvements.

  
 11.4 Compliance with Laws. Tenant agrees that all
construction, alteration and improvements by Tenant shall comply with all applicable and lawful statutes, rules, orders, ordinances, requirements, and regulations of the City of Richmond, 
  

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 Virginia, the Federal Government, and any other governmental authority having jurisdiction over the Building. Tenant may,
if in good faith and on reasonable grounds, dispute the validity of any charge, complaint, or action taken pursuant to or under color of any statute, rule, order, ordinance, requirement, or regulation, defend against the same, and in good faith
diligently conduct any necessary proceedings to prevent and avoid any adverse consequence of the same. Tenant agrees that any such contest shall be prosecuted to a final conclusion as speedily as possible, and that it will hold Landlord harmless
with respect to any actions taken by any lawful governmental authority with respect thereto. 
  
 11.5. Use. Tenant shall have the right, during the term hereof, to occupy and to use the Premises as a satellite wagering facility with food and beverage (including alcoholic beverages) service, retail sales
and for any other lawful purpose, provided same does not violate any applicable governmental regulation or any exclusive use granted to any existing tenant of the Shopping Center as of the date hereof, such restrictions being identified on
Exhibit C hereto. 
  
 11.6 Environmental Statement.
Notwithstanding any other provision of this Lease, Landlord affirmatively represents and warrants to Tenant that the Premises do not violate any applicable laws or regulations relating to environmental or other similar matters, and agrees to
indemnify, defend and save harmless the Tenant from any claim, loss, damage or expense, including attorneys’ fees arising by virtue of any violation existing as of the date hereof. 
  
 11.7 Zoning. Landlord has no actual knowledge of any law, regulation, recorded covenant or restriction that would
prohibit or interfere with Tenant’s use of the Premises as a restaurant, bar, and satellite wagering facility. Landlord shall not change or attempt to change the zoning of the Premises without Tenant’s prior written consent. 
  
 11.8 Fixtures and Other Inventory. All trade fixtures, furnishings,
equipment, inventory and personal property of Tenant shall be and remain the personal property of Tenant and removable by Tenant at any time prior to, or within ten (10) days after, the termination of this Lease, and shall be so removed by Tenant at
the request of Landlord within said ten (10) days after the termination of this Lease. Those fixtures that are integrated into the physical structure of the Premises shall not be removed and shall become the property of Landlord when so integrated,
except in the case of machinery and equipment used in Tenant’s business, or trade fixtures which can be removed without damage to the Premises. Tenant agrees to promptly repair any damage to the Premises occasioned by the removal of
Tenant’s trade fixtures, furnishings, and equipment. 
  
 11.9
Quiet Enjoyment. So long as Tenant is not in material default hereunder beyond any applicable cure period, Landlord covenants that Tenant shall 
  

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 have quiet possession and enjoyment of the Premises for the term of this Lease without hindrance on the part of Landlord
and others claims through or under Landlord, and Landlord will warrant and defend Tenant in such quiet possession and enjoyment against the claims of all persons claiming by, through, or under Landlord. 
  
 ARTICLE 12 
 Utilities 
  
 12.1 Payment by Tenant. Tenant shall pay, or cause to be paid by others, when due, all charges for all gas, electricity, and all other utilities of every kind and nature whatsoever and for all other services
used by Tenant and its sublessees in connection with the Premises, and Tenant will save Landlord harmless from all of such charges; provided, however, Landlord shall have caused all such services to be separately stubbed into the Premises and
separately metered for Tenant. 
  
 ARTICLE 13 
 Maintenance and Repairs 
  
 13.1 Tenant’s Repairs. Tenant shall keep the Premises in good, clean condition, including keeping the HVAC system repaired and in working
order. Tenant shall maintain an annual HVAC service maintenance contract and shall provide Landlord with a copy thereof. 
  
 13.2 Landlord’s Repairs. Landlord shall be responsible for maintenance, cleaning, repair and replacement to: (i) the roof; (ii) the structural
walls, concrete floors, foundation and slab; (iii) the exterior water and sewer lines, (iv) the failure of any utility line under the floor slab or within a structural wall of the Premises, (v) all sidewalks, landscaping, grass areas, parking and
other Common Areas in the Shopping Center, including grass cutting, clearing snow and ice removal, waste removal, striping and resurfacing of paved surfaces, exterior and parking lot lighting and utility poles, and (vii) cleaning, maintaining and
repairing the Common Areas in first class condition. 
  
 13.3
No Changes. Landlord shall not modify or reduce the access drives, parking or other Common Areas in any manner, nor construct improvements or alterations in the Shopping Center if doing so would adversely affect Tenant’s use or access to
the Premises or visibility of the Premises. 
  
 13.4
Tenant’s Completion of Landlord’s Obligations. In the event that Landlord fails or neglects to make repairs or corrections, as provided herein, within a reasonable period of time after notice from Tenant, then Tenant may make such
repairs, and Landlord shall promptly reimburse Tenant for the actual cost thereof. 
  
  

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 13.5 Good Working Condition; Warranties. Landlord represents, warrants, and covenants that the
electricity, water, sanitary, and drainage sewers, telephone, and natural gas are available to the Premises and that Landlord will do nothing throughout the term of this Lease to interrupt such services, except for temporary interruptions during
non-business hours (except in the case of emergencies) required to repair or renovate such service facilities. Landlord further represents, warrants, and covenants that at the beginning date of this Lease, the structural components roof, plumbing,
and electrical systems in or affecting the Premises are in good working condition and satisfy all building and safety code requirements. 
  
 ARTICLE 14 
 Parties’
Indemnification 
  
 14.1 By Tenant. Tenant hereby
waives all claims against Landlord for damage to any property or injury to, or death of, any person in, upon, or about the Building, arising at any time and from any cause other than by reason of the negligence or willful misconduct of Landlord, its
agents, employees, representatives, or contractors. Tenant shall, and hereby agrees to, indemnify and hold Landlord harmless from any loss, cost, claim, expense and the like, including damage to any property, injury to or death of any person arising
from or out of Tenant’s use and occupancy of the Building except arising out of the negligence or willful misconduct of Landlord, its contractors, employees or principals. 
  
 14.2 By Landlord. The Landlord hereby agrees to indemnify the Tenant and save the Tenant harmless from and against
any and all claims, actions, damages, liability and expense in connection with loss of life, personal injury and damage to property arising from or out of any occurrence in, upon or within the Common Areas, or any part thereof, except arising out of
the negligence or willful misconduct of Tenant, its contractors, employees or principals. In the event that the Tenant, without fault on its part, is made a party to any litigation commenced by or against the Landlord, the Landlord shall protect and
hold the Tenant harmless and shall pay all costs and expenses, including reasonable attorney’s fees, incurred or paid by the Tenant in connection with such litigation. 
  
 14.3 Waiver of Recovery and Subrogation. Except as otherwise provided above, the Landlord and the Tenant hereby waive
all claims, demands or rights of indemnity which either of them may have against the other on account of damage to the Premises or to any personal property located thereon or to other improvements in the Shopping Center resulting from fire or other
casualties, no matter what the cause thereof may be even if such loss or damage results from the negligence of the other party, if and to the extent such loss or damage is covered (or required to be covered) by insurance benefiting the injured
party. The parties waive their respective rights, as set forth herein, because adequate insurance is to be maintained to protect them against all such casualties and they have obtained or agree to obtain from their insurance carriers appropriate
“waiver of subrogation provisions” in all such policies of insurance. 
  
  

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 ARTICLE 15 
 Insurance and Loss by Casualty 
  
 15.1 Insurance. Landlord covenants that it will cause the Shopping Center and the Premises to be insured against loss by fire or other casualty, with special forms endorsement or other comparable form providing
extended coverage, with a company or companies authorized to do business in the Commonwealth of Virginia, and in an amount sufficient at all times for the full replacement of such buildings and improvements in the event of total or partial loss by
facilities of the same size and quality as existed upon the premises prior to such loss. Landlord shall promptly deliver to Tenant certificates of insurance relating to such policy or policies. The premiums for all such policies shall be paid by
Landlord. Tenant shall carry and keep in force at all times public liability insurance with Landlord to be named as an additional insured, with combined single limit of Three Million Dollars ($3,000,000.00) for each occurrence for bodily injury and
death and/or property damage to the Premises. Tenant shall promptly deliver to Landlord certificates of insurance relating to liability policies. Notwithstanding the foregoing, it is expressly understood that Tenant shall not be liable to Landlord
hereunder for any claims or liability arising out of the negligence of Landlord, its agents, employees or invitees, or Landlord’s failure to comply with any of the terms and conditions of this Lease, or a condition on the Premises existing
prior to the date hereof. Landlord shall provide a public liability insurance policy naming Tenant as additional insured with combined single limits of $5,000,000 for each occurrence, each person, for bodily injury and death and/or property damage.
The coverage limits provided herein may be satisfied by a combination of primary and excess liability coverage. 
  
 15.2 Casualty. The loss or destruction of the Premises or the Shopping Center, whether by fire, earthquake, windstorm, or other casualty, shall not
constitute grounds for the termination of this Lease by Tenant if the Premises can be, and are, repaired by Landlord within one hundred eighty (180) days, and such repair and restoration costs do not exceed seventy-five percent (75%) of the then
total replacement cost of the Premises and related parking areas; provided, however, that damage or destruction of the Premises, in whole or in part, shall entitle Tenant to an abatement of rent or other charges herein required to be paid by Tenant
until the Premises are restored to their pre-casualty condition. Within thirty (30) days of the loss or destruction of the Premises, parking areas or any Common Areas, Landlord shall notify Tenant in writing of the expected completion date of such
repairs, and Landlord shall promptly commence and diligently prosecute to completion such demolition, repair, restoration, rebuilding, reconstruction, or replacement of the Premises, parking areas or any Common Areas. In the event the Premises,
parking areas and other Common Areas are not 
  

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 substantially repaired and reconstructed by Landlord, or are not reasonably expected to be restored, within one hundred
eighty (180) days after such destruction or damage then Tenant may, at its option, by giving notice to Landlord within thirty (30) days after the expiration of said period, terminate this Lease as of the fifteenth (15th) day after such notice if
such restoration has not been completed, whereupon this Lease and the right, liabilities, and obligations of Landlord and Tenant shall expire on such day. 
  
 ARTICLE 16 
 Condemnation

  
 16.1 Entire Premises. In the event the Premises or
any substantial portion of the Common Areas shall be acquired by authority of any governmental agency in the exercise of its power of eminent domain or by purchase in lieu thereof, and such taking relates to substantially all of the fee simple title
to the Premises, as well as to the entire right, title, and interest of Tenant, the rights and obligations of the parties hereunder (except rights and obligations arising prior to such taking or purchase) shall terminate as of the date of such
taking, and the parties hereto agree that Landlord shall receive the value of the land and all improvements thereon, with the exception of Tenant’s signs, fixtures, equipment, and inventory. 
  
 16.2 Partial Taking. If, during the term of this Lease, a portion (but
less than all) of the Premises or Common Area shall be acquired by authority of any government or governmental agency in the exercise of its power of eminent domain, or by private purchase in lieu thereof, and such taking or acquisition includes a
portion of the Premises or more than ten percent (10%) of the parking spaces in the Shopping Center, the rent accruing thereafter shall be reduced in proportion to the reduction that the amount received by Landlord from said partial taking bears to
the value of the land before such taking, as determined by an appraiser reasonably acceptable to Landlord and Tenant. If any portion of the Premises or more than twenty percent (20%) of the Shopping Center or more than ten percent (10%) of the
parking spaces are taken or conveyed to an agency having the power of eminent domain, the Tenant may, at its election, terminate the Lease. If the Lease is not terminated, Landlord shall restore the Premises, the Common Area and other portions of
the Shopping Center to a condition as substantially comparable as possible to their condition prior to the taking. 
  
 16.3 Award. Notwithstanding the above, the Tenant shall not have any claim to any portion of the award representing the real property or other
portions of the Shopping Center, but shall be entitled to assert a claim for improvements placed thereon by the Tenant, fixtures and moving costs. 
  
  

 16 

 ARTICLE 17 
 Insolvency 
  
 17.1
By Tenant. Should Tenant make an assignment or other conveyance for the benefit of its creditors, or should a voluntary or involuntary petition in bankruptcy be filed by or against Tenant, and Tenant be adjudicated bankrupt by final decree of
such adjudication, this Lease shall not be terminated as a result thereof so long as (and only so long as) the rental payments hereunder are not in arrears beyond the period specified in Article 18 hereof and there is no default on the part of
Tenant with respect to any other provisions hereof. 
  
 ARTICLE
18 
 Default 
  
 18.1 Remedies of Landlord. Landlord and Tenant further covenant and agree that if default shall be made at any time by Tenant in the payment of
rent or upon default in the payment of any sum which Landlord is entitled to under the terms of this Lease, or if Tenant shall be in material default hereunder, and if any such material default: (i) shall continue for ten (10) days in the case of
default in the payment of rent after notice in writing thereof by Landlord to Tenant without further notice of any kind by Landlord to Tenant, or (ii) shall continue for thirty (30) days (in the case of any other default) after notice in writing
thereof by Landlord to Tenant, if said material default is capable of being cured within thirty (30) days, or a reasonable time to cure same if such default is not capable of being cured within said thirty (30) days, provided Tenant undertakes and
proceeds with due diligence and continuity to cure same, it shall be lawful for Landlord, at its election, after the termination of said ten (10) or thirty (30) days (as the case may be) to declare the term of this Lease ended and this Lease
terminated, cancelled, and annulled (whereupon all rights of Tenant hereunder and in the Premises shall expire and terminate, but Tenant shall remain liable hereunder as hereinafter provided), and thereafter Landlord may reenter and take possession
of the Premises as improved, and every part thereof, with process of law, and to distrain for any rent due or to become due hereunder or to institute such other appropriate proceedings as Landlord may be legally entitled to employ in the Premises.
In the event of default, Landlord’s remedies shall be cumulative, and no remedy expressly provided for herein shall be deemed to exclude any other remedy allowed by law. Termination of this Lease by reason of Tenant’s default, as above
provided, shall not relieve Tenant of its liabilities and obligations, and such liabilities and obligations shall survive any such termination. In the event of any such termination, Tenant shall remain in all events liable for the full rent to the
date of such termination, and shall also be and remain liable and answerable in damages for the deficiency and loss of rent and other damages which Landlord may thereby sustain in respect of the balance of the term of this Lease, but it shall be
Landlord’s duty to use commercially reasonable efforts to minimize damages to Tenant and to relet the Premises for the account and 
  

 17 

 benefit of Tenant in liquidation and discharge, in whole or in part, as the case may be, of the liability of Tenant under
the terms and provisions of this Lease, and such damages may, at the option of Landlord, be recovered by Landlord in separate actions, from time to time, as Tenant’s obligation to pay rent would have accrued if the term hereof had continued, or
from time to time as such damages shall have been made more easily ascertainable by reletting of the Premises, or such action by Landlord may, at the option of Landlord, be deferred until the expiration of the term hereof. In the event that Tenant
defaults in the performance of any of its obligations hereunder and Landlord institutes any legal proceedings to recover possession of the Premises, or to enforce the performance by tenant of any of its obligations under this Lease, Landlord shall
be entitled to reimbursement for its reasonable costs incurred, including reasonable attorney’s fees. Notwithstanding the foregoing, if the Premises are encumbered by any leasehold deeds of trust and Landlord has been given written notice
thereof, then at the time of any such default, as hereinbefore set forth by Tenant, Landlord shall give written notice of such default to the noteholders of any such deeds of trust, and said noteholders shall have the right and time period afforded
Tenant herein in which to cure any such default of Tenant, and if such default is so cured within said time period, the terms and provisions of this Lease shall remain in full force and effect for the benefit of the noteholders of any such deeds of
trust or any assignee of said noteholders. 
  
 18.2 Remedies of
Tenant. Other than in the event of an emergency, in the event Landlord fails to comply with any material covenant or obligation contained in this Lease within thirty (30) days after written notice from Tenant to Landlord of the noncompliance,
Tenant shall have the right, in addition to Tenant’s other rights and remedies hereunder, at law and in equity, to: (a) terminate this Lease at any time thereafter upon written notice to Landlord; or (b) cure or attempt to cure such
noncompliance. In the event of an emergency, or if such non-performance is or will disrupt Tenant’s normal use and operations at the Premises or if there is a risk of imminent damage to the property or injury to persons, Tenant shall have the
right, in addition to Tenant’s other rights and remedies hereunder, at law and in equity, to cure or attempt to cure such noncompliance immediately and following reasonable notice to Landlord. If Tenant elects to cure such noncompliance by
Landlord, any costs or expenses (including, without limitation, reasonable attorney’s fees and costs), plus interest at the Prime Rate of Bank of America plus three percent (3%) of the amount of such costs and expenses (collectively, the
“Amount Due”) shall be set off from the next due installment or installments of rent or other charge due to Landlord hereunder. If there is no rent or other charge due to Landlord; the Amount Due shall be paid by Landlord to Tenant within
ten (10) days after notice from Tenant to Landlord of the Amount Due. After such ten (10)-day period, interest shall accrue on such unpaid Amount Due at the above rate. The failure of Tenant to insist in any one (1) or more instances upon the strict
performance of any covenant of this Lease or to exercise any option or right herein contained shall not be construed as a waiver for the future of such covenant, right, or option, but the same shall continue in full force and effect. 
  
  

 18 

 ARTICLE 19 
 Assignment and Subletting 
  
 19.1 Tenant may not assign this Lease, in whole or in part, or sublet all or any part of the Premises without the express written consent of Landlord, which consent will not be unreasonably withheld, conditioned or delayed; provided,
however, that no assignment or subletting by Tenant, voluntary or involuntary, shall in any way affect the terms, conditions, covenants, agreements, and provisions herein set forth, and any and all such assignments or subleases shall be at all time
subject to this Lease and to the prior right, title, and interest of Landlord in and to the Premises. Any such assignment or subletting, in whole or in part, shall not relieve or release tenant of the primary responsibility for all payments,
covenants, duties, and obligations hereunder. Landlord shall have the right to transfer or assign this Lease or Landlord’s reversion hereunder, and Tenant agrees to attorn to the lawful transferee thereof, but any such transfer or assignment
shall be at all times subject to this Lease and the right of Tenant hereunder. The Tenant shall have the right to assign this Lease to a parent, subsidiary or affiliated company, or to an entity which merges with or consolidated into the foregoing,
provided the Tenant and any guarantor of this Lease shall not be released from the obligations for the payment of rent and other requirements hereunder. Landlord acknowledges that Tenant may sublease the kitchen and certain restaurant facilities in
the Premises to a third party, and Landlord hereby agrees to such sublease without further action by Tenant, subject to the foregoing. 
  
 ARTICLE 20 
 Subordination and
Attornment 
  
 20.1 This Lease shall be subject and
subordinate to any and all mortgages (as hereinafter defined) now or hereafter encumbering the Premises or any part thereof and placed thereon by Landlord and to all renewals, modifications, replacements, and extensions of such mortgages; provided,
however, that the subordination herein contained shall not be effective with respect to any mortgage, unless and until the holder of such mortgage shall execute and deliver a non-disturbance and attornment agreement in favor of Tenant, providing
that in the event its mortgage shall be foreclosed or the holder of the mortgage accepts a duly recorded deed in lieu of foreclosure, so long as no event of default shall have occurred and be continuing hereunder, and so long as Tenant shall attorn
to the purchaser upon foreclosure, or the owner of the Premises pursuant to the deed in lieu of foreclosure, and continues to fully and completely perform Tenant’s duties and obligations under this Lease, the Lease shall not terminate by reason
of such foreclosure or deed in lieu of foreclosure, Tenant’s possession and quiet enjoyment of 
  

 19 

 the property shall not be disturbed and the purchaser, upon acceptance and recordation of the Trustee’s deed after
such foreclosure or acceptance and recordation of such deed in lieu of foreclosure, its successors, or assigns, shall recognize Tenant and shall be obligated to perform fully and completely Landlord’s duties and obligations under this Lease
arising from and after the date of acceptance and recordation of the Trustee’s deed or deed in lieu of foreclosure. Landlord shall promptly advise Tenant in writing if it shall enter into any mortgage affecting the Premises after the date
hereof. In such event, Landlord shall use its best efforts to cause the holder of any mortgage affecting the Premises to enter into a nondisturbance agreement with Tenant substantially in the form of Exhibit D attached hereto. As used in this
paragraph, the term “mortgage” shall mean any mortgage, deed to secure debt, deed of trust, trust deed, sale-leaseback, lease-leaseback, or other collateral conveyance of, or lien, or encumbrance against the Premises or any part thereof.

  
 ARTICLE 21 
 Conditions Precedent 
  
 21.1 The respective obligations set forth herein of Landlord and Tenant shall be subject to the fulfillment of the conditions set forth below, or such
conditions shall have been waived by the Tenant: 
  
 (a) The
Virginia Racing Commission and any other applicable regulatory bodies shall have granted a license to Tenant to own and operate a satellite wagering facility in the Premises; 
  
 (b) Tenant shall have secured all requisite State and local governmental approvals for the operation of a restaurant and
satellite wagering facility; 
  
 (c) Tenant shall have secured a
license to serve alcoholic beverages from the Virginia Alcohol Beverage Control Bureau; 
  
 (d) The current holder of a mortgage affecting the Premises shall have executed and delivered a Subordination, Nondisturbance and Attornment Agreement substantially in the form of Exhibit D attached hereto;

  
 (e) Landlord shall have secured any Tenant or Lender consents
related to the Shopping Center that are required by Tenant’s use of the Premises as described in paragraph 11.5; and 
  
 (f) Tenant shall have satisfied itself that it can obtain governmental approvals for its signs as provided in Section 8.2, and that it can operate its
business under the current zoning affecting the Shopping Center and the Premises. 
  
  

 20 

 (g) Landlord and Tenant shall have reached agreement on the location for Tenant’s telecommunications
equipment, satellite dish, etc,. pursuant to Section 8.3. 
  
 Notwithstanding the foregoing, if such conditions precedent set forth in clauses (a) – (c) above have not been satisfied or waived by Tenant on or before May 15, 2003, and the conditions precedent set forth in clauses (d), (e), (f) and
(g) above have not been satisfied or waived by Tenant on or before ninety (90) days after the date hereof, Tenant may terminate this Lease upon written notice to Landlord following which Landlord and Tenant shall have no obligations to one another
hereunder. The May 15, 2003 deadline date for Tenant to terminate based on clauses (a) - (c) may be extended through May 1, 2004 upon payment by Tenant of a non-refundable deposit of $2,500.00 per month, such payments to be made by the
10th day of each month beginning with July 2003. 
  
 ARTICLE 22 
 Early Termination 
  
 22.1 Notwithstanding
any provision to the contrary contained in this Lease, Tenant shall have the right to terminate this Lease upon six (6) months’ written notice to Landlord in the event that at any time during the initial term or any renewal (i) the Virginia
Racing Commission revokes Tenant’s license to own and operate a satellite wagering facility on the Premises, provided Tenant does not open a satellite wagering facility within four (4) miles of the Premises during the one (1) year period
following termination of this Lease and/or (ii) Haynes Furniture ceases operating in 100% of its Premises as they are used for retail selling space (approximately 100,000 square feet) today unless a comparable retail operator commences operating in
100% of such retail selling space within ninety (90) days after Haynes closes. Upon such termination, neither Landlord nor Tenant shall have any rights or obligations with respect to the other under this Lease other than Tenant’s duty to
surrender the Premises as required herein. 
  
 ARTICLE 23

 Force Majeure 
  
 23.1 In the event that Landlord or Tenant shall be delayed, hindered in, or prevented from the performance of any action required hereunder by reason of
strikes, lock-outs, riots, insurrection, war, acts of God, or other reason of a like nature not the fault of such parties or not within their control, then performance of such act shall be excused for the period of delay, and the period for the
performance of any such act shall be extended for a period equivalent to the period of such delay. 
  
  

 21 

 ARTICLE 24 
 Successors and Assigns 
  
 24.1 This Lease shall be binding upon and shall inure to the benefit of the parties hereto, and to their respective personal and legal representatives, estates, heirs, legatees, assigns, and successors in interest. 
  
 ARTICLE 25 
 Landlord’s Covenants 
  
 25.1 In connection herewith, Landlord has granted Tenant a reasonable credit toward rent for and in consideration of the Tenant undertaking to make substantial repairs and renovations to the Premises, it being
understood that all repairs, additions, and improvements to the Premises shall become part of the freehold, and title to same shall be vested in Landlord upon vacation of the Premises by the Tenant, with the exception of Tenant’s signs within
or upon the Premises or the Shopping Center, equipment, furnishings, inventory, trade fixtures and other personal property, as provided in paragraph 11.6 hereof. 
  
 ARTICLE 26 
 Relationship of Landlord and Tenant 
  
 26.1 It is expressly understood that Landlord shall not be construed or held to be a partner, joint venturer, or associate of Tenant in the conduct of its business, it being expressly understood and agreed that the relationship between the
parties hereto is and shall at all times remain that of Landlord and Tenant. 
  
 ARTICLE 27 
 Right to Inspect 
  
 27.1 Upon twenty-four (24) hours’ written notice to Tenant, Landlord or
its agents shall have access to the Premises and improvements thereon at any and all reasonable times for the purpose of inspecting the Premises. Tenant agrees to furnish an agent of Tenant for such purpose upon request therefor, after reasonable
notice, by Landlord. 
  
 ARTICLE 28 
 Estoppel Certificates 
  
 28.1 Landlord and Tenant will, at the request of the other, execute, acknowledge, and deliver to the requesting party a certificate certifying: (i)
whether or not this Lease is unmodified and in full force and effect (or, if there have been modifications, the extent to which this Lease is in full force and effect as modified 
  

 22 

 and stating the modifications); (ii) whether or not there are then existing any offsets or defenses against the
enforcement of any other provisions of this Lease (and if so, specifying the same); and (iii) the dates, if any, to which the rent and other charges have been paid in advance. Any such certificate may be relied upon by any prospective mortgagee or
mortgagees of the Premises or of any part thereof, or any prospective assignee or mortgagee of Tenant’s interest hereunder. 
  
 ARTICLE 29 
 Brokerage

  
 29.1 Landlord and Tenant each warrant and represent to the
other that except for Divaris Real Estate (“Broker”), whose commission shall be paid by Landlord, there was no broker or agent involved by it in consummating this Lease, and that no conversations or prior negotiations were had with any
broker or agent concerning the renting of the Premises. Landlord and Tenant shall each indemnify and hold the other harmless against any claims for brokerage or other commissions arising by reason of a breach of its aforesaid representation and
warranty. 
  
 ARTICLE 30 
 Recordation 
  
 30.1 Landlord agrees that it will, upon Tenant’s written request, execute and record a memorandum or short form lease in form and substance
acceptable to Tenant at Tenant’s expense. 
  
 ARTICLE 31

 Gender and Number 
  
 31.1 Words of any gender used in this Lease shall be held to include any other gender, and words in the singular number shall be held to include the
plural (and vice-versa) when the sense requires. 
  
 ARTICLE 32

 Time is of the Essence 
  
 32.1 Time is of the essence, and each party recognizes same. 
  
 ARTICLE 33 
 Titles

  
 33.1 The titles and article or paragraph headings are
inserted for convenience only and are in no way to be construed as a part of this Lease or as a limitation on the scope of the particular provisions to which they enter. 
  
  

 23 

 ARTICLE 34 
 Waiver 
  
 34.1 The
failure of Landlord or Tenant to insist upon strict performance of any of the covenants or conditions of this Lease or to exercise any option herein conferred in any one or more instances shall not be construed as a waiver or relinquishment for the
future of any such covenant, condition, or option, but the same shall be and remain in full force and effect; and it is further agreed that the acceptance by Landlord of rent from Tenant shall not constitute a waiver of such breach, nor a waiver of
the right of Landlord to insist upon Tenant’s curing such breach or default. 
  
 ARTICLE 35 - Intentionally Deleted. 
  
 ARTICLE 36 
 Validity 
  
 36.1 In the event that any provision of this Agreement shall be held to be invalid, the same shall not affect in any respect
whatsoever the validity of the remainder of this Agreement. 
  
 ARTICLE 37 
 Applicable Law 
  
 37.1 This Agreement and the rights of the parties hereunder shall be interpreted in accordance with the laws of the
Commonwealth of Virginia. 
  
 ARTICLE 38 
 Entire Agreement 
  
 38.1 This instrument contains all the agreements and conditions made between the parties hereto, and there are no promises, agreements, conditions, or
understandings, either oral or written, expressed or implied, between them, other than as herein set forth. This Lease supersedes all prior understandings, agreements, and conditions, whether oral or written, between the parties hereto, and may not
be modified orally or in any other manner other than by an agreement in writing, signed by all the parties hereto or their respective successors in interest. 
  
 ARTICLE 39 
 Effectiveness of
Lease 
  
 39.1 This Lease shall not be effective until
executed by Landlord and Tenant. 
  

 24 

 IN WITNESS WHEREOF, Landlord, by its duly authorized representative, and Tenants have signed and sealed
this Agreement as of the day and year first above written. 
  

			
	LANDLORD:
	
	 HAYNES CHIPPENHAM PLAZA, L.L.C., a
 Virginia
limited liability company

		
	 By:
	 	HAYNES FURNITURE COMPANY, INC., a Virginia corporation,
	 	 	Member-Manager

  

					
			
	 	 	   By:
	 	 (SEAL)

	 	 	   Name:
	 	  

	 	 	   Title:
	 	  

  

			
	TENANT:
	
	 COLONIAL DOWNS, L.P., a

	 Virginia limited partnership

		
	 By:
	 	STANSLEY RACING CORP., a Virginia corporation, its sole general partner

  

					
	 	 	 By:
	 	 (SEAL)

	 	 	 	 	    Ian M. Stewart, President

  

 25 

 Exhibit A 
  
 The Shopping Center and the Premises 
  

 1 
 Exhibit A 

 Exhibit A-1 
  
 Parking and Signs 
  
  

 1 
 Exhibit A-1 

 Exhibit B 
  
 Pylon Sign 
  

 1 
 Exhibit B 

 Exhibit C 
  
 Restrictions 
  
 The following restrictions pertain to the Shopping Center: 
  

	1.	Pursuant to a Declaration of Restrictive Covenant dated June 19, 2000 and recorded as instrument number 0026279, by Haynes Furniture Company, Incorporated, as owner, for the benefit
of Delhaize America, Inc., formerly known as Food Lion, Inc., the Owner has agreed that it will not, until March 31, 2013: 

  

	 	a.	Lease, rent or sell any portion of the Premises or allow any portion of the Premises to be occupied as a grocery store or a supermarket, or 

  

	 	b.	Lease, rent or sell any portion of the Premises to or allow any portion of the Premises to be occupied by a tenant, the majority of whose sales results from the sale of food items.

  

	2.	Pursuant to that certain Lease made as January 31, 2001, by and between Harbor Freight Tools USA, Inc., as Tenant, and Haynes Furniture Company, Incorporated, as Landlord, Harbor
Freight Tools USA, Inc., has the exclusive right in the Premises and Shopping Center to operate a retail store for sales of hardware, tools, and related merchandise and services. 

  

 1 
 Exhibit C 

 Exhibit D 
  
 THIS INSTRUMENT WAS PREPARED BY HOFHEIMER NUSBAUM, P.C. 
  
 SUBORDINATION NON-DISTURBANCE 
 AND ATTORNMENT AGREEMENT 
  
 THIS AGREEMENT made this      day of
                             2003, among COLUMN FINANCIAL, INC., a Delaware corporation, its
successors and assigns (hereinafter referred to as “Lender”) (Index as Grantor and Grantee), COLONIAL DOWNS, L.P., a Virginia limited partnership, (hereinafter referred to as “Tenant”) (Index as Grantor and Grantee), and
HAYNES CHIPPENHAM PLAZA, L.L.C., a Virginia limited liability company (hereinafter referred to as “Landlord”) (Index as Grantor and Grantee). 
  

STATEMENT OF BACKGROUND 
  
 Landlord and Tenant have entered into a certain lease (hereinafter referred to as the “Lease”), dated May     , 2003,
relating to the premises described in the Lease (hereinafter referred to as the “Premises”) which are described in, or are a part of the property described in Exhibit “A” attached hereto and by this reference made a part hereof.
Lender has made a loan to Landlord in the principal amount of $7,000,000 secured by a mortgage or security deed (hereinafter referred to as the “Mortgage”) and an assignment of leases and rents from Landlord to Lender covering certain
property described therein (the “Property”) including the Premises. Tenant has agreed that the Lease shall be subject and subordinate to the Mortgage held by Lender, provided Tenant is assured of continued occupancy of the Premises under
the terms of the Lease. 
  
 STATEMENT OF AGREEMENT

  
 For and in consideration of the mutual covenants herein
contained, the sum of Ten Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, and notwithstanding anything in the Lease to the contrary, it is hereby agreed as follows:

  
 1. Lender, Tenant and Landlord do hereby covenant and agree
that the Lease with all rights, options (including options to acquire or lease all or any part of the Premises), liens and charges created thereby, is and shall continue to be subject and subordinate in all respects to the Mortgage and to any
renewals, modifications, consolidations, replacements and extensions thereof and to all advancements made thereunder. 
  
 2. Lender does hereby agree with Tenant that, in the event Lender becomes the owner of the Premises by foreclosure, conveyance in lieu of foreclosure or
otherwise, so long as Tenant complies with and performs its obligations under the Lease, (a) the Lease shall continue in full force and effect as a direct Lease between the succeeding owner of the Property and Tenant, upon and subject to all of the
terms, covenants and conditions of the Lease, for the balance of the term of the Lease, and Lender will not disturb the possession of Tenant, and (b) the 
  

 1 
 Exhibit D 

 Premises shall be subject to the Lease and Lender shall recognize Tenant as the tenant of the Premises for the remainder
of the term of the Lease in accordance with the provisions thereof and Tenant’s rights under the Lease and shall not disturb Tenant’s possession of the Premises; provided, however, that Lender shall not be liable for any act or omission of
any prior landlord (including Landlord), nor shall Lender be bound by any rent or additional rent which Tenant might have paid for more than the current month or any security deposit or other prepaid charge paid to any prior landlord (including
Landlord) nor shall it be bound by any amendment or modification of the Lease made without its written consent. Nothing contained herein shall prevent Lender from naming Tenant in any foreclosure or other action or proceeding initiated by Lender
pursuant to the Mortgage to the extent necessary under applicable Law in order for Lender to avail itself of and complete the foreclosure or other remedy. 
  
 3. Tenant does hereby agree with Lender that, in the event Lender becomes the owner of the Premises by foreclosure, conveyance in lieu of foreclosure or
otherwise, then Tenant shall attorn to and recognize Lender as the landlord under the Lease for the remainder of the term thereof, and Tenant shall perform and observe its obligations thereunder, subject only to the terms and conditions of the
Lease. Tenant further covenants and agrees to execute and deliver upon request of Lender an appropriate agreement of attornment to Lender and any subsequent titleholder of the Premises reasonably acceptable to Tenant. 
  
 4. Tenant acknowledges that Landlord may execute and deliver to Lender an
assignment of the Lease as security for said loan, and Tenant hereby expressly consents to such assignment. Tenant agrees to notify Lender of any default(s) by Landlord under the Lease; Lender shall have the same right to cure such default(s) as is
provided to Landlord under the Lease. 
  
 5. Lender shall have no
obligation or incur any liability with respect to the construction or completion of the improvements in which the Premises are located or for completion of the Premises or any improvements for Tenant’s use and occupancy. Lender shall have no
obligations nor incur any liability with respect to any warranties of any nature whatsoever, including, any warranties respecting use, compliance with zoning, hazardous wastes or environmental laws, Landlord’s title, Landlord’s authority,
habitability, fitness for purpose or possession. In the event that Lender shall acquire title to the Premises or the Property, Lender shall have no obligation, nor incur any liability, beyond Lender’s then equity interest, if any, in the
Premises, and Tenant shall look exclusively to such equity interest of Lender, if any, in the Premises for the payment and discharge of any obligations or liability imposed upon Lender, hereunder, under the Lease or under any new lease of the
Premises. 
  
 6. If any portion or portions of this Agreement
shall be held invalid or inoperative, then all of the remaining portions shall remain in full force and effect, and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion or portions held to be invalid
or inoperative. 
  
 7. This Agreement shall be governed by and
construed in accordance with the laws of the State in which the Property is located. 
  
 8. Lender shall not, either by virtue of the Mortgage, the Assignment of Leases or this Agreement, be or become a mortgagee in possession or be or become 
  

 2 
 Exhibit D 

 subject to any liability or obligation under the Lease or otherwise until Lender shall have acquired the interest of
Landlord in the Premises, by foreclosure or otherwise, and then such liability or obligation of Lender under the Lease shall extend only to those liability or obligations accruing subsequent to the date that Lender has acquired the interest of
Landlord in the Premises as modified by the terms of this Agreement. 
  
 9. Any and all notices, elections, approvals, consents, demands, requests and responses thereto (“Communications”) permitted or required to be given under this Agreement shall be in writing and shall be deemed to have been
properly given and shall be effective upon the earlier of receipt thereof or deposit thereof in the United States mail, postage prepaid, certified with return receipt requested, to the other party at the address of such other party set forth
hereinbelow or at such other address within the continental United States as such other party may designate by notice specifically designated as a notice of change of address and given in accordance herewith; provided, however, that the time period
in which a response to any Communication must be given shall commence on the date of receipt thereof; and provided further that no notice of change of address shall be effective with respect to Communications sent prior to the time of receipt
thereof. Any notice, if given to Lender, must be addressed as follows, subject to change as provided hereinabove: 
  
 Column Financial, Inc. 
 11 Madison Avenue, 5th Floor 
 New York, NY 10010 
 Attn: Edmund Taylor 
  
 and, if given to Tenant, must be addressed as follows, subject to change as provided hereinabove: 
  
 Colonial Downs, L.P. 
 10515 Colonial Downs Parkway 
 New Kent, VA 23124 
  
 with a copy to: 
  
 James L. Weinberg,
Esq. 
 Hirschler Fleischer 
 P.O. Box 500 
 Richmond, VA 23218-0500 
  
 and, if given to Landlord, must be addressed as follows, subject to change as provided
hereinabove: 
  
 Haynes Chippenham Plaza, L.L.C.

 5324 Virginia Beach Blvd. 
 Virginia Beach, VA 23462 
  
 10.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors, successors-in-title and assigns. When used herein, the term “landlord” refers to Landlord
and to any successor to the interest of Landlord under the Lease. The term “Lender” refers to Lender and to any successor-in-interest of Lender under the Mortgage. 
  

 3 
 Exhibit D 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement under seal as of the date
first above written. 
  

			
	 LENDER:

	
	 COLUMN FINANCIAL, INC.,

	 a Delaware corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 LANDLORD:

	
	 HAYNES CHIPPENHAM PLAZA, L.L.C.,

	 a Virginia limited liability company

		
	 By:
	 	 HAYNES FURNITURE COMPANY,

	 	 	 INCORPORATED, a Virginia

	 	 	 corporation, its Managing Member

  

					
	 	 	       By:
	 	  

	 	 	       Name:
	 	  

	 	 	       Title:
	 	  

  

			
	 TENANT:

	
	 COLONIAL DOWNS, L.P., a Virginia

	 limited partnership

		
	 By:
	 	 STANSLEY RACING CORP., a

	 	 	 Virginia corporation, its sole general
 partner

  

					
			
	 	 	 By:
	 	  

	 	 	 	 	         Ian M. Stewart, President

  

 4 
 Exhibit D 

 STATE OF VIRGINIA 
 COUNTY/CITY OF                                     ,
to-wit: 
  
 The foregoing Subordination, Non-Disturbance and
Attornment Agreement was acknowledged before me this      day of                         ,
2003, by
                                        
                         of Column Financial, Inc., a Delaware corporation, on behalf of said corporation. He/She is
personally known to me or has produced a driver’s license as identification. 
  

	
	

	 Notary Public

  
 My Commission Expires:
                                       
          
  
 STATE OF VIRGINIA

 COUNTY/CITY OF
                            , to-wit: 
  
 The foregoing Subordination, Non-Disturbance and Attornment Agreement was acknowledged before me this
     day of                         , 2003, by
                                        
                         of Hayes Furniture Corporation, Incorporated, a Virginia limited liability company, on behalf of said
company. He/She is personally known to me or has produced a driver’s license as identification. 
  

	
	

	 Notary Public

  
 My Commission Expires:
                                       
          
  

 5 
 Exhibit D

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