Document:

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                                                                   Exhibit 10.27

                             LOAN PURCHASE CONTRACT

     THIS LOAN PURCHASE CONTRACT (the "CONTRACT"), is entered into as of the
7th day of September, 2001 (the "EFFECTIVE Date") by and between FOOTHILL
CAPITAL CORPORATION, a California corporation (the "SELLER") and OLD HILL
PARTNERS, INC., a Delaware corporation (the "PURCHASER"). For good and valuable
consideration, the receipt and sufficiency of which are acknowledged by Seller
and Purchaser, and in consideration of the mutual covenants set forth in this
Contract, Seller and Purchaser hereby agree as follows:

     1.   Sale and Purchase.

          (a) Seller agrees to sell, convey, transfer and assign to Purchaser,
and Purchaser agrees to purchase and accept from Seller, for the Purchase Price
(as hereinafter defined), on and subject to the terms and conditions set forth
in this Contract, all right, title and interest in and to, and does hereby
delegate its obligations in respect of, each of the following:

                    (1) That certain Consolidated, Amended, and Restated Loan
               and Security Agreement dated as of August 22, 1996, by and
               between Seller and Mountasia Entertainment International, Inc.
               (now known as Malibu Entertainment Worldwide, Inc.) and
               forty-five of its direct and indirect subsidiaries identified
               therein, together with the exhibits and schedules thereto (as
               amended, extended and modified, the "LOAN AGREEMENT"). All
               initially capitalized terms not defined herein shall have the
               respective meanings ascribed thereto in the Loan Agreement. For
               purposes of this Contract, Malibu Entertainment Worldwide, Inc.
               ("MALIBU") and any of its subsidiaries and its affiliates who are
               or may be indebted or obligated in any manner under the Loan
               Agreement or any of the other Loan Documents (as hereinafter
               defined) shall be referred to as the "OBLIGORS";

                    (2)  Those certain deeds of trust, leasehold deeds of trust,
               and mortgages (collectively, and as amended, extended and
               modified, the "MORTGAGES") described in the attached Exhibit A;

                    (3)  Those certain pledges of capital stock (as amended,
               extended and modified, the "STOCK PLEDGES"), together with all
               stock certificates and stock powers delivered in connection
               therewith and relating thereto, all as more particularly
               described in the attached Exhibit A;

                    (4)  Those certain trademark security agreements and/or
               collateral assignment documents (as amended, extended and
               modified, the "SECURITY AGREEMENTS") described in the attached
               Exhibit A;

                    (5)  Those certain collateral loan documents (as amended,
               extended and modified, the "COLLATERAL LOAN DOCUMENTS") described
               in the attached Exhibit A;

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              (6) Any and all blocked bank deposit accounts, other bank deposit
     accounts or assignable utility, escrow, security, damage, lease, tax
     insurance or any other deposits of an Obligor (collectively, the
     "DEPOSITS");

              (7) Any other Collateral not otherwise described above;

              (8) All other principal obligations that the Loan Agreement,
     Mortgages, Stock Pledges, Security Agreements, Collateral Loan Documents,
     Deposits, any of the Additional Loan Documents (as hereinafter defined) or
     other items secure, including, without limitation, any right of Seller to
     make one or more new, additional or future loans to any of the Obligors and
     to obtain or receive retroactive rank on such liens and security interests
     with respect to such new, additional or future loans; and

              (9) All other instruments, agreements or documents of any kind
     affecting or relating to the Loan or any of the Properties (as hereinafter
     defined), or executed in connection with or as security for the Loan,
     including but not limited to any and all guarantees, security agreements,
     indemnities, collateral assignments, UCC-1 financing statements and
     continuation statements and amendments and assignments thereof, pledge
     agreements, financial statements, operating reports, appraisals, analyses,
     site plans, surveys, soil and substrata studies, plans and specifications,
     engineering plans and studies, title insurance commitments policies,
     environmental site assessments or reports, modification agreements, renewal
     or extension agreements, assignments of rents, assignments of leases,
     assumption agreements, intercreditor agreements, consents to conveyances
     and applications for such consents, copies of any and all leases and
     subleases covering or affecting any of the Properties, and any attornment,
     subordination, or nondisturbance agreements with tenants or subtenants,
     boundary line agreements, judgments, court orders or decrees declaring or
     otherwise relating to the ownership, use, possession or boundary lines of
     any of the Properties, encroachment agreements, laborer's or materialmen's
     lien claim notices, lien affidavits, closing and disbursement statements,
     casualty and liability insurance policies, endorsements and certificates,
     property tax bills and receipts, correspondence with taxing authorities,
     licenses, building or other permits, certificates of occupancy, demolition
     permits, construction contracts, and payment and performance bonds, and any
     other information gathered by Seller in connection with Seller's decision
     to make the Loan or obtained or created by, or provided to Seller, during
     Seller's ownership of the Loan (collectively, the "ADDITIONAL LOAN
     DOCUMENTS"). The tracts of land and/or the locations identified and
     described on the attached Exhibit B are hereinafter collectively called the
     "PROPERTIES".

               (b) All of the instruments and documents described or referred
to in Section 1(a) above are collectively called the "LOAN DOCUMENTS." The
indebtedness evidenced by the Loan Agreement and the other Loan Documents are
hereinafter collectively called the "LOAN." The Seller's interest in and rights
under the Loan and the Loan Documents shall be conveyed, assigned and
transferred to Purchaser at the Closing (as hereinafter defined), without
recourse to Seller (except with respect to the representations and warranties
set forth in Section 10 below), free and clear of all liens, encumbrances,
defenses, charges, security interests, rights of offset, deductions or other
claims of whatever nature.

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          (c) Retained Rights. The foregoing to the contrary notwithstanding,
the following rights and claims shall belong to and be retained by Seller and
shall not be transferred to Purchaser pursuant to this Contract: any and all
payments made to Seller by an Obligor on or before the Closing Date (as defined
below).

     2. Assumption. For and in consideration of the transfer of rights by Seller
set forth in Section 1 hereof and the other consideration set forth herein, and
effective as of the Effective Date, Purchaser does hereby accept the foregoing
assignment of rights and delegation of obligations, and does hereby assume and
covenant and agree fully, completely and timely to perform, comply with and
discharge, each and all of the obligations, duties, liabilities, obligations and
responsibilities of every type and nature whatsoever and howsoever arising under
or as a result of the Loan Documents. From and after the Effective Date:
Purchaser shall be bound as a party to the Loan Documents and by the obligations
of Seller thereunder to the fullest extent permitted under the applicable Loan
Documents, and (b) Seller shall be released from Seller's obligations under the
Loan Agreement and the other Loan Documents.

     3. Credit Determination: Limitations on Seller's Liability. It is
understood and agreed that Purchaser has independently made its own credit
determinations and analysis based upon such information as Purchaser deems
sufficient to enter into the transaction contemplated hereby and not based on
any statements or representations by Seller that it will, independently and
without reliance upon Seller and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Agreement. It is understood and
agreed that the assignment and assumption hereunder are made WITHOUT RECOURSE
to Seller and that Seller makes no representation or warranty of any kind to
Purchaser and shall not be responsible for (except as set forth in Section 10
below) (a) due execution, legality, validity, enforceability, genuineness,
sufficiency, value or collectability of the Loan Agreement or any other Loan
Document, including without limitation, documents granting the Seller a
security interest in assets of the Obligors, (b) any representation, warranty
or statement made in or in connection with any of the Loan documents, (c) the
financial condition or creditworthiness of the Obligors, (d) the performance
or compliance with any of the terms or provisions of any of the Loan Documents,
(e) inspecting any of the property, books or records of the Obligors or (f) the
validity, enforceability, perfection, priority, condition, value or sufficiency
of any collateral securing or purporting to securing or purporting to secure
the Loans. Neither Seller nor any of its officers, directors, employees, agents
or attorneys shall be liable for any mistake, error of judgment, or action
taken or omitted to be taken in connection with the Loans or the Loan
Documents, except for its or their own gross negligence or willful misconduct.

     4. Purchase Price.

          (a) The Purchase Price (the "PURCHASE PRICE") to be paid by Purchaser
to Seller for the Loan is Eleven Million Seven Hundred Fifty Thousand and
No/100 Dollars ($11,750,000.00). Seller hereby expressly agrees that it shall
accept the Purchase Price in full satisfaction of any and all amounts or
charges (including but not limited to principal payments, interest payments,
costs, expensed, and fees or charges of any type or character, including but
not limited to exit fees, forbearance fees or any other fees) due and payable,
or to become due and payable (but which have not been paid prior to the Closing
Date), to Seller by the Obligors, or

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any of them, under the Loan Agreement and/or any other Loan Document on or
after the Closing Date (as hereinafter defined). Without limiting the
generality of the foregoing, Seller and Purchaser agree that the Purchase Price
shall be deemed to include all interest, fees, and any other amounts of any
kind or nature due and payable by Obligors to Seller under the Loan Agreement
through the Closing Date (other than the Fifteenth Amendment Fee required by
the Amendment (as hereinafter defined), which Fifteenth Amendment Fee shall be
paid by the Obligors as set forth in the Amendment, all amounts previously paid
by the Obligors to the Seller prior to the Closing Date, and the fees, costs
and expenses described in Section 7(b)(3) of this Contract), and that there
shall be no proration of interest between Seller and Purchaser with respect to
the month in which the Closing Date occurs.

               (b) The Purchase Price shall be payable in cash at the Closing,

               (c) (Intentionally Omitted)

     5. (Intentionally Omitted)

     6. (Intentionally Omitted)

     7. Closing and Post-Closing.

               (a) The Closing ("CLOSING") of the sale of the Loan by Seller to
Purchaser shall occur in Dallas, Texas (or at such other location as may be
mutually agreed upon by Seller and Purchaser) on or before September 7, 2001
(the "CLOSING DATE"). Notwithstanding anything contained in this Section 7, if
Seller delays its performance of an obligation required under this Contract
which is a condition to Purchaser's obligations, the Closing Date shall be
extended, at Purchaser's option (in addition to and without waiver of any other
right or remedy provided to Purchaser under this Contract), for the number of
days the performance of such obligation were delayed.

               (b) At the Closing, all of the following shall occur, all of
which shall be deemed concurrent conditions:

                    (1) Seller, at Seller's sole cost and expense, shall deliver
      or cause to be delivered to Purchaser the following:

                         (i) The originals of the Loan Documents, each of which
             shall be transferred and assigned to Purchaser in accordance with
             the terms thereof and in a manner that shall be satisfactory to
             Purchaser in Purchaser's sole good faith discretion and that shall
             transfer at Closing all of Seller's rights, title and interest, in
             to and under the Loan Documents; provided however that in any event
             (A) such Loan Documents and Loans will be sold by Seller and
             purchased by Purchaser on an "as is" basis, and (B) all assignments
             of the Loan and the Loan Documents by Seller shall be made "without
             recourse" to the Seller;

                         (ii) All escrows, if any, held by Seller and any
             account records reflecting amounts held in escrow by the Seller on
             the Closing Date of whatever kind or character relating to the
             Loan;

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                    (iii)     An estoppel certificate (the "SELLER'S ESTOPPEL
          CERTIFICATE") for the loan, in the form attached hereto as Exhibit C,
          dated as of the Closing Date and fully executed by the Seller, which
          shall certify, among other things, the amount of the outstanding
          principal balance of the Loan as of the Closing Date;

                    (iv)      A Borrower's Estoppel Certificate executed by
          Malibu in the form attached hereto as Exhibit D; and

                    (v)       Evidence satisfactory to Purchaser or Stewart
          Title North Texas in Dallas, Texas (the "TITLE COMPANY") that the
          person executing any documents at the Closing on behalf of Seller has
          full right, power and authority to do so.

               (2) Purchaser, at Purchaser's sole cost and expense, shall
     deliver or cause to be delivered to Seller the following:

                    (i)       A wire transfer of immediately available federal
          funds or such other means of funding reasonably acceptable to Seller
          in an amount of money equal to the Purchase Price; and

                    (ii)      Evidence satisfactory to Seller and the Title
          Company that the person executing any documents at the Closing on
          behalf of Purchaser has full right, power and authority to do so.

               (3) Seller and Purchaser shall each pay their respective
     attorneys' fees incurred in connection with the negotiation of this
     Contract and the Closing, and shall each pay one-half (1/2) of any escrow
     fee, recording fees, and documentary stamp or transfer taxes charged in
     connection with this Contract or the transactions contemplated hereunder.
     Other Closing costs will be allocated between Purchaser and Seller in the
     same manner as closing costs are customarily allocated between the
     purchaser and seller of commercial real estate in a transaction occurring
     in Los Angeles, California; provided, however, that Obligors shall pay to
     Seller, on or before the Closing Date, in full in cash, an amount equal to
     the aggregate amount of all fees, costs and expenses described in this
     subsection 7(b)(3) which are incurred by Seller.

          (c) As soon as possible following the Closing Date (and in any event
no later than forty-five (45) days following the Closing Date), the following
shall occur, all of which shall be obligations of Seller that may be enforced by
Purchaser through the remedy of specific performance (without waiving any other
remedies or rights that Purchaser may have in the event Seller fails to perform
such obligations):

               (1) Seller, at Seller's sole cost and expense, shall deliver or
     cause to be delivered to Purchaser those executed UCC Assignments (as
     defined below) that Seller was unable to deliver at Closing; and

               (2) Seller, at Seller's sole cost and expense, shall deliver or
     cause to be delivered to Purchaser those executed Mortgage Assignments (as
     defined below) that Seller was unable to deliver at Closing.

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     8. Conditions to Performance by Purchaser.

          (a) Purchaser's obligations under this Contract shall be contingent
and specifically conditioned until the Closing upon the following matters:

               (1) All of the representations and warranties of Seller set forth
     in this Contract shall be true and correct at and as of the Closing in all
     respects, as though such representations and warranties were made at and as
     of the Closing;

               (2) Seller shall have delivered, performed, observed and complied
     with all of the items, instruments, documents, covenants, agreements and
     conditions required by this Contract to be delivered, performed, observed
     and complied with by Seller prior to or as of the Closing;

               (3) Seller shall not be in receivership or dissolution, nor have
     made any assignment for the benefit of creditors, nor admitted in writing
     its inability to pay its debts as they mature, nor have been adjudicated a
     bankrupt, nor have filed a petition in voluntary bankruptcy, a petition or
     answer seeking reorganization or an arrangement with creditors under the
     federal bankruptcy law or any other similar law or statute of the United
     States of America or any state, nor shall any such petition have been filed
     against it; and

               (4) That certain Amendment Number Fifteen to Consolidated,
     Amended and Restated Loan and Security Agreement (the "AMENDMENT") shall
     have been executed by Seller and the Obligors and shall have been delivered
     by Seller and the Obligors to the Title Company to hold in escrow pending
     the Closing, and the Obligors shall have consented in writing to the
     purchase of the Loan and the Loan Documents by Purchaser, which consent
     shall be evidenced by the Obligors' execution of this Contract. Purchaser
     has reviewed and is familiar with the terms, conditions and provisions of
     the Amendment and the side letter between Obligors and Seller dated as of
     the date of this Contract (the "SIDE LETTER"), and hereby consents to the
     Amendment and the Side Letter and the execution thereof. Seller and
     Purchaser hereby agree that anything contained in this Contract and the
     Amendment to the contrary notwithstanding, all fees payable by Seller under
     the terms of the Amendment shall be paid by Purchaser, and all fees payable
     to Seller under the terms of the Amendment shall be paid to Purchaser.

          (b) Any of the conditions set forth in Section 8(a), other than the
conditions set forth in Section 8(a)(4), may be waived, in writing, in whole or
in part, by Purchaser, in Purchaser's sole discretion, at or prior to the
Closing. If any of such conditions is not satisfied or waived, without limiting
the provisions of this Section 8, Purchaser may terminate this Contract by
giving written notice to Seller prior to or at the Closing, whereupon neither
party shall have any further rights, duties or obligations under this Contract.

     9. Conditions to Performance by Seller.

          (a) Seller's obligations under this Contract shall be contingent and
specifically conditioned until the Closing upon the following matters:

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               (1) All of the representations and warranties of Purchaser set
     forth in this Contract shall be true and correct at and as of the Closing
     in all respects, as though such representations and warranties were made at
     and as of the Closing;

               (2) Purchaser shall have delivered, performed, observed and
     complied with all of the items, instruments, documents, covenants,
     agreements and conditions required by this Contract to be delivered,
     performed, observed and complied with by Purchaser prior to or as of the
     Closing;

               (3) Purchaser shall not be in receivership or dissolution, nor
     have made any assignment for the benefit of creditors, nor admitted in
     writing its inability to pay its debts as they mature, nor have been
     adjudicated a bankrupt, nor have filed a petition in voluntary bankruptcy,
     a petition or answer seeking reorganization or an arrangement with
     creditors under the federal bankruptcy law or any other similar law or
     statute of the United States of America or any state, nor shall any such
     petition have been filed against it;

               (4) Each Obligor shall have executed and delivered to Seller that
     certain Termination Agreement and Release, date as of even date herewith,
     which shall be in form and substance acceptable to Seller; and

               (5) Seller shall have received the payments from the Obligors
     that are required pursuant to subsection 7(b)(3) of this Contract.

          (b) Any of the conditions set forth in Section 9(a) may be waived, in
writing, in whole or in part, by Seller, in Seller's sole discretion, at or
prior to the Closing. If any of such conditions is not satisfied or waived,
without limiting the provisions of this Section 9, Seller may terminate this
Contract by giving written notice to Purchaser prior to or at the Closing,
whereupon neither party shall have any further rights, duties or obligations
under this Contract.

     10. Seller's Covenants, Agreements, Representations and Warranties.

          (a) Seller covenants and agrees with, and represents and warrants to,
Purchaser that:

               (1) Seller shall deliver to Purchaser each of the following as
     soon as reasonably practicable but in no event later than 45 days after the
     Closing Date:

                    (i)       Assignments of UCC-1 financing statements/UCC-3
          financing statement change forms pertaining to the Loan (the "UCC
          ASSIGNMENTS") in the form required in each jurisdiction in which the
          applicable UCC financing statements were filed and sufficient to
          transfer to Purchaser all financing statements relating to the Loan;
          and

                    (ii)      Executed assignments of the Mortgages (the
          "MORTGAGE ASSIGNMENTS") in the form required for recordation in each
          jurisdiction in which the applicable Mortgages were filed and
          sufficient to transfer to Purchaser all of Seller's rights, titles and
          interests in, to and under the Mortgages;

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               (2) Seller is the sole legal and beneficial owner and holder of
the Loan and the rights granted by an Obligor pursuant to the Loan Documents,
free and clear of any liens, assessments or claims (the "ENCUMBRANCES"). At the
Closing, Purchaser will acquire title to the Loan and the rights granted by an
Obligor pursuant to the Loan Documents, free and clear of any and all
Encumbrances;

               (3) The information set forth in the Seller's Estoppel
Certificate to be delivered at Closing and dated as of the Closing Date shall
be true and correct;

               (4) Other than any Events of Default that have been waived in
writing by Seller pursuant to (a) Loan Documents that have been provided or
disclosed to Purchaser by Seller, (b) the Amendment, or (c) the other agreements
executed in connection with this Contract, there are to Seller's knowledge no
material Events of Default under the Loan Agreement; as used in this Contract,
the phrase "to Seller's knowledge" means solely the current actual knowledge of
Greg Gentry and other persons currently working with or for Greg Gentry in the
Atlanta, Georgia office of Seller (but not including any constructive or imputed
notice of any information), without any independent investigation of any kind;

               (5) Other than (a) the Loan Documents provided or disclosed to
Purchaser by Seller, (b) the Amendment, and (c) the other agreements executed
in connection with this Contract, to Seller's knowledge, as of the Closing
Date, there are no other agreements among Seller and the Obligors that
materially impair the ability of Purchaser to liquidate the Collateral or which
materially alter the terms of the Loan Agreement;

               (6) Seller has the right, power, legal capacity and authority to
execute and deliver this Contract and to consummate the transactions
contemplated by the Contract. This Contract has been duly and validly executed
and delivered by Seller, constitutes the valid, legal and binding agreement of
Seller and is enforceable against Seller in accordance with its terms;

               (7) Seller has delivered to Purchaser for review and purchase
true, correct and complete copies (or originals where requested by Purchaser)
of all the Loan Documents. Any other information, reports, statements and other
data pertaining to the Loan Documents and furnished by or on behalf of Seller
prior to or contemporaneously with the execution of this Contract are and shall
be true, correct and complete and do not and shall not omit to state any fact
or circumstance necessary to make the information contained therein not
misleading;

               (8) The execution, delivery, and performance of this Contract
and the endorsement and delivery of the Loans do not and will not contravene or
violate any law, rule, regulation, order, writ, judgment, injunction, decree,
determination or award presently in effect and applicable to Seller, or result
in a breach of, or constitute a default (with or without the giving of notice
or the lapse of time or both) under any indenture or any loan, credit or other
agreement to which Seller is a party or by which Seller or its property may be
bound or affected;

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               (9)  Prior to Closing, Seller shall obtain any written consents
     and approvals as may be necessary or required to permit Seller to perform
     Seller's obligations under this Contract;

               (10) Seller is a California corporation duly organized under the
     laws of the State of California and is currently in good standing in all
     jurisdiction where it is qualified to conduct business;

               (11) The individual or individuals executing this Contract and
     any and all documents contemplated herein on behalf of Seller has or have
     the legal power, right and actual authority to bind Seller to the terms and
     conditions in the Contract and in those documents;

               (12) No permission, approval or consent of any person, entities
     or governmental authorities is required for Seller to enter into this
     Contract or to consummate this Contract, except the consent of Malibu for
     the sale of the Loan and the Loan Documents; and

               (13) No representation, warranty, or statement of Seller in this
     Contract or in any document, certificate, or schedule furnished, to be
     furnished, or to be available to Purchaser pursuant to this Contract
     contains any misleading statements or facts or omits to state a material
     fact necessary to make the statements or facts contained herein or therein
     not misleading. All such representations, warranties or statements of
     Seller are based, to the best of Seller's knowledge, upon current, accurate
     and complete information as of the time of their making, and there has
     been, to Seller's knowledge, no material adverse change in such information
     subsequent thereto.

         (b) The representations, warranties and covenants of Seller set forth
in this Section 10 and elsewhere in this Contract shall be subject to the
following terms and conditions:

               (1)  The representations, warranties and covenants of Seller
     shall be deemed to be made both as of the Effective Date and as of the
     Closing, except to the extent that Seller otherwise notifies Purchaser in
     writing at or prior to Closing. If Seller does so notify Purchaser in
     writing at or prior to Closing, or if Purchaser discovers independently,
     that any of such representations, warranties and covenants is no longer
     true, Purchaser shall have the option either to (i) terminate this Contract
     by written notice to Seller, whereupon neither party shall have any further
     rights, duties or obligations under the Contract, or (ii) waive such
     representation, warranty or covenant and close the purchase of the Loans;

               (2)  No investigation or inspection by Purchaser or Purchaser's
     representatives shall be deemed to have in any way diminished or waived the
     representations, warranties and covenants of Seller set forth in this
     Contract, unless Purchaser shall have acknowledged actual knowledge of such
     matters in writing prior to the Closing.

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     11. Purchaser's Covenants, Agreements, Representation and Warranties.

          (a) Purchaser covenants and agrees with, and represents and warrants
to, Seller that:

                    (1) Purchaser has the right, power, legal capacity and
      authority to execute and deliver this Contract and to consummate the
      transactions contemplated by the Contract. This Contract has been duly and
      validly executed and delivered by Purchaser constitutes the valid, legal
      and binding agreement of Purchaser and is enforceable against Purchaser in
      accordance with its terms;

                    (2) The execution, delivery, and performance of this
      Contract do not and will not contravene or violate any law, rule,
      regulation, order, writ, judgment, injunction, decree, determination or
      award presently in effect and applicable to Purchaser, or result in a
      breach of, or constitute a default (with or without the giving of notice
      or the lapse of time or both) under any indenture or any loan, credit or
      other agreement to which Purchaser is a party or by which Purchaser or its
      property may be bound or affected;

                    (3) Purchaser shall not institute or take any action
      (including any judicial action or proceeding) in the name of Seller or any
      subsidiary or affiliate of Seller, provided that Purchaser shall advise
      each Obligor and any other parties to the Loan Documents whose
      notification is required pursuant to the terms of the Loan Documents, and
      may advise any other third parties, of the assignment of the Loans
      and the Loan Documents and that Purchaser is the assignee of Seller with
      respect thereto and shall also specify Purchaser's notice/contact
      information in accordance with the Loan Documents; from and after the
      Closing Date, Purchaser shall not mislead the Obligors as to Purchaser's
      identity and shall promptly disclose in writing to Obligors that Purchaser
      has become the owner of the Loans and the assignee of the Loan Documents;

                    (4) Purchaser is a Delaware corporation duly organized
      under the laws of Delaware and is currently in good standing in all
      jurisdictions where it is qualified to conduct business;

                    (5) The individual or individuals executing this Contract
      and any and all documents contemplated herein on behalf of Purchaser has
      or have the legal power, right and actual authority to bind Purchaser to
      the terms and conditions in the Contract and in those documents; and

                    (6) No permission, approval or consent of any person,
      entities or governmental authorities is required for Purchaser to enter
      into this Contract or to consummate this Contract, except the consent of
      Malibu for the sale of the Loan and the Loan Documents.

     12. Agents. Any broker, agent or finder (the "AGENT") engaged by either
party to this Contract shall be paid by the party engaging such Agent when the
Closing occurs, with such payment to be made in accordance with the terms and
conditions of a separate agreement by and between the Agent and the party
engaging such Agent. Purchaser shall indemnify, defend and hold harmless
Seller against all claims, liabilities, costs, damages and expenses of any
nature arising out of any claim, demand or liability to or asserted by any
Agent, licensed or otherwise,

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claiming to have acted on behalf of or to have dealt with Purchaser in
connection with the transactions contemplated by this Contract. Seller shall
indemnify, defend and hold harmless Purchaser against all claims, liabilities,
costs, damages and expenses of any nature arising out of any claim, demand or
liability to or asserted by any Agent, licensed or otherwise, claiming to have
acted on behalf of or to have dealt with Seller in connection with the
transactions contemplated by this Contract. The provisions of this Section 12
shall survive the Closing and any termination of this Contract.

     13. Seller to Forward Certain Documents. After the Closing Date, Seller
will promptly forward to Purchaser within three (3) days after the Seller's
receipt thereof any payments and copies of any correspondence received by
Seller in connection with the Loan or any of the Loan Documents. Any checks
received by Seller after the Closing Date and representing payments under or in
connection with the Loan or any of the Loan Documents shall be endorsed by
Seller to Purchaser without recourse and promptly delivered to Purchaser in
accordance with the immediately preceding sentence.

     14. Notices. All notices required or delivered pursuant to the terms
hereof shall be delivered to the appropriate party, at the address shown below,
by hand delivery, confirmed facsimile, Federal Express or other national
overnight courier, or by certified mail, return receipt requested, postage
prepaid and shall be deemed delivered upon receipt, or, if earlier, when
deposited in the United States mail. Any party hereto may change its address
for notices hereunder by giving at least five (5) business days' prior written
notice of its new address to the other party hereto as provided herein:

          Purchaser:

          Old Hill Partners Inc.
          22 Thorndal Circle
          Darien, CT 06820
          Attn: Jeff Saye
          Telephone Number: 203-656-3004
          Facsimile Number: 203-656-3008

          with copy to:

          Peper Hamilton, LLP
          1201 Market Street, Suite 1600
          Wilmington, Delaware 19801
          Attn: Richard P. Eckman, Esq.
          Telephone Number: 302-777-6560
          Facsimile Number: 302-656-8865

          Seller:

          Foothill Capital Corporation
          1000 Abernathy Road, Suite 1450
          Atlanta, GA 30328
          Attn: Greg Gentry

                                       11

<PAGE>
          Telephone Number: 770-508-1354
          Facsimile Number: 770-508-1375

          with copy to:

          Brobeck, Phleger & Harrison, LLP
          550 South Hope Street
          Los Angeles, California 90071
          Attn: John Francis Hilson, Esq.
          Telephone Number: 213-745-3412
          Facsimile Number: 213-239-1234

     15. Entire Agreement. This Contract (including the exhibits attached
hereto) contains the entire agreement between Seller and Purchaser, and no oral
statements or prior written matter not specifically incorporated in this
Contract shall be of any force and effect. No variation, modification or changes
of this Contract shall be binding on either party unless set forth in a document
executed by the parties hereto or a duly authorized agent, officer or
representative thereof.

     16. Assigns. This Contract shall inure to the benefit of and be binding on
the parties hereto and their respective legal representatives, successors and
assigns. Either party may assign its rights under this Contract at any time at
or prior to Closing to any other person or entity. Seller agrees that if
Purchaser assigns its rights to this Contract such assignment will have the
effect of fully releasing Purchaser from any and all of Purchaser's obligations
and liability pursuant to this Contract. Notwithstanding the previous sentence,
upon any such assignment, Seller further agrees to execute any such documents as
Purchaser may require to effectuate Seller's intent of releasing Purchaser from
any and all obligations and liability with regard to the Contract.

     17. Time of the Essence. Time is of the essence in the execution and
performance of this Contract and of each of its provisions.

     18. Terminology. The captions beside the section numbers of this Contract
are for reference only and shall not modify or affect this Contract in any
manner whatsoever. Whenever required by the context, any gender shall include
any other gender, the singular shall include the plural, and the plural shall
include the singular.

     19. GOVERNING LAW. THIS CONTRACT, AND ANY CAUSE OF ACTION ARISING OUT OF
THIS CONTRACT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

     20. VENUE; WAIVER OF JURY TRIAL. THE PARTIES AGREE THAT ALL ACTIONS OR
PROCEEDINGS ARISING IN CONNECTION WITH THIS CONTRACT SHALL BE TRIED AND
LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW
YORK, STATE OF NEW YORK. EACH PARTY HERETO WAIVES THEIR RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
CONTRACT OR THE TRANSACTIONS CONTEMPLATED HEREBY, INCLUDING CONTRACT CLAIMS,
TORT
                                       12
<PAGE>
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.
EACH PARTY HERETO REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER AND EACH
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS CONTRACT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     21. Severability. If any one or more of the provisions contained in this
Contract shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision, and this Contract shall be construed as if such
invalid, illegal or unenforceable provision had never been contained in this
Contract.

     22. Foreign Person. If Seller is not a "foreign person," as defined in
Section 1445 of the Internal Revenue Code of 1986, as amended (the "FEDERAL TAX
LAW") then at the Closing, Seller will deliver to Purchaser a certificate so
stating, in a form complying with the Federal Tax Law. If Seller is a "foreign
person" or if Seller fails to deliver the required certificate at the Closing,
then in either event the funding to Seller at the Closing will be adjusted to
the extent required to comply with the withholding provisions of the Federal
Tax Law; and although the amount withheld will still be paid at the Closing by
Purchaser, it will be retained by a mutually acceptable escrow agent for
delivery to the Internal Revenue Service together with the appropriate Federal
Tax Law forwarding forms (and with copies being provided both to Seller and to
Purchaser). The following parties are approved as mutually acceptable escrow
agents if withholding is warranted in accordance with the immediately
preceding sentence (listed in order of decreasing preference): the Title
Company, the Purchaser's "independent CPA" (i.e., a certified public accountant
who is associated with an independent CPA firm), the Seller's "independent CPA"
or a financial institution mutually acceptable to Seller and Purchaser.

     23. Rules of Construction. The parties acknowledge that each party and its
counsel have reviewed and revised this Contract, and the parties agree that the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of this Contract or any amendments or exhibits hereto.

     24. Attorneys' Fees. If any litigation arises between any of the parties
hereto with respect to this Contract, the subject matter hereof or any
agreement executed pursuant to or in connection with this Contract, the
prevailing party shall be entitled to recover its reasonable costs and
expenses, including, without limitation, attorneys' fees and court costs,
incurred as a result of or in connection with such litigation.

     25. Further Acts and Assurances. Seller agrees to perform, execute and/or
deliver or cause to be performed, executed and/or delivered at the Closing or
after the Closing, any and all further acts, deeds and assurances as Purchaser
may reasonably require (i) to evidence and invest in Purchaser the ownership of
the Loan and the Loan Documents, and (ii) to consummate the transactions
contemplated hereby. Purchaser agrees to perform, execute and/or deliver or
cause to be performed, executed and/or delivered at the Closing or after the
Closing, any and all further acts, deeds and assurances as Seller may
reasonably require to consummate the transactions contemplated hereby.

                                       13
<PAGE>
     26. No Third Party Beneficiaries. The representations and warranties of
Seller and Purchaser in this Contract are made only by Seller to Purchaser
personally and by Purchaser to Seller personally and are not assignable by
Purchaser or by Seller, and are not subject to enforcement by any other Person;
provided, however, that the representations and warranties of Seller may be
assigned by Purchaser to any assignee to whom Purchaser may sell the Loan and
the Loan Documents, and may be enforced by any such assignee of Purchaser. This
Contract is entered into for the sole protection and benefit of the parties
hereto and their respective successors and assigns (including any assignee of
Purchaser to whom Purchaser may sell the Loan and the Loan Documents), and no
other Person shall be a direct or indirect beneficiary of, or shall have any
direct or indirect cause of action or claim in connection with, this Contract.

     27. Counterparts. This Contract may be executed in multiple counterparts,
each of which shall be deemed an original and all of which together shall
constitute one and the same Contract.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       14
<PAGE>
     IN WITNESS WHEREOF, this Contract is executed to be effective for all
purposes as of the Effective Date.

                                        SELLER:

                                        FOOTHILL CAPITAL CORPORATION,
                                        a California corporation

                                        By: /s/ Greg Gentry
                                           ____________________________________
                                        Name:  Greg Gentry
                                        Title: Vice President

                                        Date Executed: September 7, 2001

                                        PURCHASER:

                                        OLD HILL PARTNERS INC.,
                                        a Delaware corporation

                                        By: ____________________________________
                                        Name:  John Howe
                                        Title: President

                                        Date Executed: September 7, 2001

                                       15
<PAGE>
     IN WITNESS WHEREOF, this Contract is executed to be effective for all
purposes as of the Effective Date.

                                    SELLER:

                                    FOOTHILL CAPITAL CORPORATION,
                                    a California corporation

                                    By:__________________________________
                                    Name:  Greg Gentry
                                    Title: Vice President

                                    Date Executed: September 7, 2001

                                    PURCHASER:

                                    OLD HILL PARTNERS, INC.,
                                    a Delaware corporation

                                    By: /s/ John Howe
                                       __________________________________
                                    Name:  John Howe
                                    Title: President

                                    Date Executed: September 7, 2001

                                       15

<PAGE>
          OBLIGORS' ACKNOWLEDGEMENT

     The undersigned Obligors each hereby approves of, and agrees and consents
to, the forgoing Loan Purchase Contract (the "CONTRACT"), dated of even date
herewith, between Foothill Capital Corporation, a California corporation
("SELLER"), and Old Hill Partners Inc. a Delaware corporation ("PURCHASER").
Each Obligor covenants and agrees that it will take all actions that are
reasonably requested in order to satisfy the conditions and other requirements
of, or to facilitate the closing of, the transactions contemplated by the
Contract.

          MALIBU ENTERTAINMENT WORLDWIDE, INC., a Georgia corporation
          MOUNTASIA FAMILY ENTERTAINMENT CENTERS, INC., a Texas corporation
          MALIBU MANAGEMENT COMPANY, a Georgia corporation
          MALIBU GRAND PRIX CORPORATION, a Delaware corporation
          TUCSON MGPC, INC., an Arizona corporation
          PUENTE HILLS MGPC, INC., a California corporation
          PUENTE HILLS SHOWBOAT MGPC, INC., a California corporation
          REDONDO BEACH CASTLE MGPC, INC., a California corporation
          REDWOOD CITY CASTLE MGPC, INC., a California corporation
          SAN DIEGO MGPC, INC., a California corporation
          PORTLAND MGPC, INC., an Oregon corporation
          DALLAS CASTLE MGPC, INC., a Texas corporation
          SAN ANTONIO CASTLE MGPC, INC., a Texas corporation
          SAN ANTONIO MGPC, INC., a Texas corporation
          MOUNTASIA DEVELOPMENT COMPANY, a Georgia corporation
          MALIBU GRAND PRIX DESIGN & MANUFACTURING, INC., a
          California corporation
          MALIBU GRAND PRIX FINANCIAL SERVICES, INC., a California
          corporation
          OFF TRACK MANAGEMENT, INC., a California corporation
          MGP SPECIAL, INC., a California corporation
          AMUSEMENT MANAGEMENT FLORIDA, INC., a Florida corporation
          MALIBU GRAND PRIX CONSULTING, INC., a California corporation
          MOUNTASIA - MEI INTERNATIONAL, INC. a Georgia corporation
          MOUNTASIA - MEI LIMITED COMPANY, INC. a California corporation
          MOUNTASIA - MEI CALIFORNIA, INC. a California corporation
          MOUNTASIA - MEI INTERNATIONAL, INC. a Georgia corporation, in its
          capacity as general partner of MOUNTASIA - MEI CALIFORNIA LIMITED
          PARTNERSHIP, a California limited partnership
          MALIBU CENTERS, INC., a Delaware corporation

          By: /s/ R. Scott Wheeler
             ___________________________________
          Name: R. Scott Wheeler
          Title: Responsible officer for each of the
                 above referenced Persons composing the Obligors

                                       16
<PAGE>
                                   Exhibit A

                                   Mortgages

          a. Mortgages and Security Agreement and Assignment of Leases and Rents
             for Henderson, NV FunCenter, Clark County, Nevada, in favor of
             Foothill and filed on August 28, 1996, under Book 960828,
             Instrument 309, and Book 960828, Book 310;

          b. Open-End Leasehold Deed of Trust, Assignment of Rents, Security
             Agreement and Fixture Filing Mortgages and Security Agreement for
             Redwood City MGP, San Mateo County, California, in favor of
             Foothill, filed on October 19, 1998 under File No. 98-169185;

          c. Open-End Leasehold Deed of Trust, Assignment of Rents, Security
             Agreement and Fixture Filing for Redondo Beach Castle MGP, Los
             Angeles County, California, in favor of Foothill and filed on
             November 13, 1998 under File No. 98-2083803;

          d. Mortgages and Security Agreement and Assignment of Leases and Rents
             for Kennesaw, GA Malibu FunCenter, in favor of Foothill and filed
             on July 16, 1996 in Book 9483, Page 0284, and Book 9843, Page 0289;

          e. Mortgages and Security Agreement and Assignment of Leases and Rents
             for Tampa, Florida Malibu Grand Prix, Hillsborough County, Florida,
             in favor of Foothill and filed on September 3, 1996 under Book
             8268, Volume 1107, and Book 8268, Volume 1115;

          f. Leasehold Deed of Trust, Assignment of Rents, Security Agreement
             and Fixture Filing for Dallas SpeedZone, Dallas County, Texas, in
             favor of Foothill and filed on November 4, 1998 in the Deed Records
             of Dallas County, Texas;

          g. Leasehold Deed of Trust, Assignment of Rents, Security Agreement
             and Fixture Filing for San Antonio MGP, Bexar County, Texas, in
             favor of Foothill and filed on October 8, 1999 under Book D, Volume
             8161, Page 1044;

          h. Deed of Trust, Security Agreement, Fixture Filing and Assignment of
             Rents for Mountasia of Kingwood, Montgomery County, Texas, in favor
             of Foothill and filed on August 30, 1996 under File No. 9654353;

          i. Leasehold Deed of Trust, Assignment of Rents, Security Agreement
             and Fixture Filing for Mountasia of North Cobb, Cobb County,
             Georgia, dated effective as of September 7, 2001, in favor of to be
             filed; and

          j. Leasehold Deed of Trust, Assignment of Rents, Security Agreement
             and Fixture Filing for Gwinnett MGP, Gwinnett County, Georgia,
             dated effective as of September 7, 2001, in favor of Foothill to be
             filed.

                                 Stock Pledges

     Stock Pledge Agreement dated effective August 22, 1996, from Malibu Grand
Prix Corporation as pledgor to Seller as pledgee.

                                      A-1
<PAGE>
     Stock Pledge Agreement dated effective August 22, 1996, from Malibu
Entertainment Worldwide, Inc. as pledgor to Seller as pledgee.

                              Security Agreements

                    1.   Consolidated, Amended, and Restated Loan and Security
     Agreement dated as of August 22, 1996, by and between Mountasia
     Entertainment International, Inc., Forty-Five of its Direct and Indirect
     Subsidiaries identified herein, and Foothill Capital Corporation
     ("Foothill"), together with exhibits and schedules, as amended.

                    2.   Trademark Security Agreement dated August 22, 1996, and
     executed by Malibu Entertainment Worldwide, Inc.

                    3.   Trademark Security Agreement dated August 22, 1996,
and executed by Malibu Grand Prix Corporation.

                           Collateral Loan Documents

        Blocked Depository Account Agreement executed December 19, 1996

                                      A-1

<PAGE>
                                   Exhibit B

                                   Properties

1.   AUSTIN MGP:
     7417 I-35 North, Travis County, Austin, Texas 78752

2.   COLUMBUS MGP:
     1201 Schrock Road, Franklin County, Columbus, Ohio 43229

3.   DALLAS SpeedZone:
     11130 Malibu Drive, Dallas County, Dallas, Texas 75229

4.   GWINNETT MGP:
     5400 Brook Hollow Pkwy., Gwinnett County, Norcross, Georgia 30071

5.   HOUSTON CASTLE MGP:
     1105 W. Loop North, Harris County, Houston, Texas 77055

6.   KENNESAW SpeedZone:
     3005 George Busbee Pkwy., Cobb County, Kennesaw, Georgia 30144

7.   MOUNTASIA OF HENDERSON:
     2050 Olympic Avenue, Clark County, Henderson, Nevada 89014

8.   MOUNTASIA OF KINGWOOD:
     2600 Eastex Freeway, Montgomery County, Kingwood, Texas 77339

9.   MOUNTASIA OF NORTH COBB:
     175 Ernest Barrett Pkwy., Cobb County, Marietta, Georgia 30066

10.  MOUNTASIA OF PLANO:
     2400 Premier Dr., Collin County, Plano, TX 75075

11.  MOUNTASIA OF WILLOWBROOK:
     17190 Tomball Pkwy., Harris County, Houston, Texas 77064

12.  PORTLAND MGP:
     9405 SW Cascade Ave., Washington County, Beaverton, Oregon 97005

13.  PUENTE HILLS SpeedZone:
     17871 Castleton, Los Angeles County, City of Industry, California 91748

14.  REDONDO BEACH CASTLE MGP:
     2419 Marine Avenue, Los Angeles County, Redondo Beach, California 90278

15.  REDWOOD CITY MGP:
     320 Blomquist, San Mateo County, Redwood City, California 92078

16.  SAN ANTONIO CASTLE MGP:
     3330 Cherry Ridge Dr., Bexar County, San Antonio, Texas 78230

17.  TAMPA MGP:
     14320 N. Nebraska, Hillsborough County, Tampa, Florida 33613

                                      B-1
<PAGE>
                                   Exhibit C

                         Seller's Estoppel Certificate

STATE OF TEXAS     Section
                   Section
COUNTY OF DALLAS   Section

BEFORE THE UNDERSIGNED NOTARY PUBLIC, ON THIS DAY PERSONALLY APPEARED THE
INDIVIDUAL IDENTIFIED BELOW WHO, UPON OATH, AFTER BEING DULY SWORN, DID DEPOSE
AND STATE AS FOLLOWS:

1.    The undersigned is Vice President of Foothill Capital Corporation, a
      California corporation ("SELLER") and is duly authorized to execute this
      Seller's Estoppel Certificate (the "ESTOPPEL CERTIFICATE") on behalf of
      Seller.

2.    This Estoppel Certificate is given to Old Hill Partners Inc., a Delaware
      corporation ("PURCHASER"), pursuant to that certain Loan Purchase Contract
      (the "CONTRACT"), dated September 7, 2001 between Seller and Purchaser,
      under the terms of which the Seller has agreed to sell to Purchaser all of
      Seller's right, title and interest in that certain Loan (the "LOAN") and
      those certain Loan Documents (the "LOAN DOCUMENTS") as more particularly
      described in the Contract.

3.    The Seller is the legal and equitable owner and holder of the Loan and the
      rights granted by an Obligor pursuant to the Loan Documents, and is the
      legal and equitable owner and holder of all of the liens and security
      interests arising under the Loan Documents.

4.    As of the date of this Estoppel Certificate, the unpaid principal balance
      of the Loan is $___________, and interest has been paid through
      _____________, 2001.

5.    The maturity of the Loan has not been accelerated.

6.    There are no outstanding liens, encumbrances security interests or claims
      of any kind against the Loan or the Loan Documents.

7.    The Seller will execute and deliver to Purchaser such assignments,
      documents and instruments reasonably requested by Purchaser to effectuate
      the purchase of the Loan and the Loan Documents by Purchaser.

8.    The Seller is a California corporation, and the undersigned has full power
      and legal authority to execute this affidavit on behalf of Seller and to
      transfer, assign and convey the Loan and the Loan Documents, and the liens
      and security interests arising under the Loan Documents, to Purchaser.

9.    The Seller acknowledges that Purchaser is relying upon this Estoppel
      Certificate in connection with its purchase of the Loan and the Loan
      Documents and would not purchase the Loan and the Loan Documents without
      this Estoppel Certificate.

           [THE REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY.]

<PAGE>
Dated: September 7, 2001

                          FOOTHILL CAPITAL CORPORATION

                          By:____________________________
                          Name:  Greg Gentry
                          Title: Vice President

STATE OF TEXAS     Section
                   Section
COUNTY OF DALLAS   Section

     This instrument was acknowledged before me on the 7th day of September,
2001 by Greg Gentry, Vice President of Foothill Capital Corporation, a
California corporation, on behalf of said corporation.

                          _______________________________

                          Name:__________________________
                          Notary Public, State of Texas
                          My commission expires:_________

<PAGE>
                                   Exhibit D

                        Borrower's Estoppel Certificate

STATE OF TEXAS     Section
                   Section
COUNTY OF DALLAS   Section

BEFORE THE UNDERSIGNED NOTARY PUBLIC, ON THIS DAY PERSONALLY APPEARED THE
INDIVIDUAL IDENTIFIED BELOW WHO, UPON OATH, AFTER BEING DULY SWORN, DID DEPOSE
AND STATE AS FOLLOWS:

1.   The undersigned is Chief Financial Officer of Malibu Entertainment
     Worldwide, Inc., a Georgia corporation ("BORROWER"), and is duly
     authorized, and has full power and legal authority, to execute this
     Borrower's Estoppel Certificate (the "BORROWER'S CERTIFICATE") on behalf of
     Borrower and on behalf of certain of Borrower's subsidiaries (the
     "SUBSIDIARIES") that are parties to, and obligors under, the Loan (as
     defined hereinafter) and the Loan Documents (as defined hereinafter).

2.   This Borrower's Certificate is given to Old Hill Partners Inc., a Delaware
     corporation ("PURCHASER"), pursuant to that certain Loan Purchase Contract
     (the "CONTRACT"), dated September 7, 2001 between Purchaser and Foothill
     Capital Corporation, a California (the "SELLER"), under the terms of which
     the Seller has agreed to sell to Purchaser all of Seller's right, title and
     interest in that certain Loan (the "LOAN") and those certain Loan Documents
     (the "LOAN DOCUMENTS") as more particularly described in the Contract.

3.   Borrower and the Subsidiaries are the only obligors under the Loan and the
     Loan Documents.

4.   As of the date of this Borrower's Certificate, the unpaid principal balance
     of the Loan is $____________, and interest has been paid through
     _________________, 2001.

5.   The maturity of the Loan has not been accelerated.

6.   To the best of Borrower's knowledge, there currently exists no Event of
     Default under the Loan or the Loan Documents, and there currently exists no
     event that, with the giving of notice or the lapse of time, or both, would
     give rise to an Event of Default.

           [THE REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY.]
<PAGE>
 7.  Borrower acknowledges that Purchaser is relying upon this Borrower's
     Certificate in connection with its purchase of the Loan and the Loan
     Documents and would not purchase the Loan and the Loan Documents without
     this Borrower's Certificate.

Dated: September 7, 2001

                          MALIBU ENTERTAINMENT WORLDWIDE, INC.

                          By:____________________________
                          Name:  R. Scott Wheeler
                          Title: Chief Financial Officer

STATE OF TEXAS     Section
                   Section
COUNTY OF DALLAS   Section

     This instrument was acknowledged before me on the 7th day of September,
2001 by R. Scott Wheeler, Chief Financial Officer of Malibu Entertainment
Worldwide, Inc., a Georgia corporation, on behalf of said corporation

                          _______________________________

                          Name:__________________________
                          Notary Public, State of Texas
                          My commission expires:_________<PAGE>

                                                                   Exhibit 10.28

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER THE 1933 ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS
NOT REQUIRED.

     THE SECURITIES REPRESENTED BY THIS WARRANT ARE ALSO SUBJECT TO ADDITIONAL
RESTRICTIONS ON TRANSFER AS SET FORTH IN THE SERIES CC PREFERRED STOCK
SHAREHOLDERS' AGREEMENT, DATED AS OF SEPTEMBER 7, 2001, COPIES OF WHICH WILL BE
FURNISHED BY THE COMPANY UPON REQUEST.

                                                               September 7, 2001

                              WARRANT TO PURCHASE
                          SERIES CC PREFERRED STOCK OF
                      MALIBU ENTERTAINMENT WORLDWIDE, INC.

     This Warrant is issued, for value received, to Old Hill Partners, Inc., a
Delaware corporation ("Old Hill"), by Malibu Entertainment Worldwide, Inc., a
Georgia corporation (the "Company").

     This Warrant is being granted to Old Hill in connection with Old Hill's
purchase of a loan pursuant to the certain Loan Purchase Agreement, dated as of
September 7, 2001 by and between Foothill Capital Corporation and Old Hill (the
"Foothill Loan").

     1.  Purchase of Shares. Subject to the terms and conditions as hereinafter
set forth, the holder of this Warrant is entitled, upon surrender of this
Warrant at the principal office of the Company (or at such other place as the
Company shall notify the holder hereof in writing), to purchase from the
Company, at any time within and prior to the expiration of the Exercise Period,
forty-six and eighty-nine one-hundredths (46.89) shares of the Company's Series
CC Preferred Stock, no par value (the "Series CC Preferred"), for an amount
equal to the Exercise Price (the "Exercise Stock"). Shares of Series CC
Preferred are convertible into shares of Common Stock of the Company (the
"Common Stock"). Old hill has been provided with and has reviewed a copy of the
Certificate of Designations for the Series CC Preferred. The number of shares of
Exercise Stock shall be subject to adjustment as provided in Section 7 below.

     2.  Exercise Price. The purchase price for each share of Exercise Stock
subject to this Warrant shall be $0.1 per share. Such price (as adjusted from
time to time, the "Exercise Price") shall be subject to adjustment pursuant to
Section 7 hereof.

<PAGE>

     3.   Exercise Period. This Warrant shall become exercisable as of the date
hereof and shall remain exercisable until the later of (i) August 21, 2004 or
(ii) two years after the date in which the Foothill Loan is fully paid (the
"EXERCISE PERIOD").

     4.   Method of Exercise; Expenses.

          (a)  At any time during the Exercise Period, the holder shall be
entitled to purchase all, but not less than all, of the Exercise Stock in
accordance with the terms hereof. Such exercise shall be effected by:

               (i)  the surrender of this Warrant, together with a duly
executed copy of the form of subscription attached as Annex A hereto, to the
Secretary of the Company at its principal offices; and

               (ii) the payment to the Company by certified check or bank draft
of the aggregate Exercise Price for the number of shares of Exercise Stock
being purchased.

          (b)  Notwithstanding anything to the contrary contained in this
Warrant, this Warrant may be exercised by presentation and surrender of this
Warrant to the Company at its principal offices with a written notice of the
holder's intention to effect a cashless exercise, including a calculation (to
the extent then calculable) of the number of shares of Series CC Preferred to
be issued upon such exercise in accordance with the terms hereof (a "CASHLESS
EXERCISE", and the date of such presentation and surrender being herein
referred to as the "CASHLESS EXERCISE DATE"). In the event of a Cashless
Exercise, in lieu of paying the Exercise Price in cash, the holder shall
surrender this Warrant for that number of shares of Series CC Preferred
determined by multiplying the number of shares of Exercise Stock to which it
would otherwise be entitled by a fraction, the numerator of which shall be the
excess, if any, of the Market Price of the Series CC Preferred as of the
Cashless Exercise Date over the Exercise Price, and the denominator of which
shall be the Market Price of the Series CC Preferred as of the Cashless
Exercise Date.

     The "MARKET PRICE" of the Series CC Preferred as of any date will deemed
to equal the fair market value of shares of Common Stock of the Company into
which such shares of Series CC Preferred are then convertible. The fair market
value of shares of Common Stock as of any date, (i) means the average of the
closing bid prices for the shares of the specified security as reported by the
Nasdaq National Market ("NNM") for the five (5) trading days immediately
preceding such date, or (ii) if the NNM is not the principal trading market for
the specified security, the average of the last reported sale prices on the
principal trading market for the specified security during the same period, or
(iii) if the market value cannot be calculated as of such date on any of the
foregoing bases, the fair market value of the Common Stock shall be the average
fair market value as reasonably determined by the Board of Directors of the
Company.

     (c)  The Company shall pay all expenses, taxes (other than transfer taxes)
and other charges payable in connection with the preparation, issuance and
delivery of this Warrant and the Exercise Stock.

                                       2
<PAGE>

     5.   Certificates for Shares. Upon the exercise of the purchase rights
evidenced by this Warrant, one or more certificates for the number of shares of
Exercise Stock so purchased shall be issued as soon as practicable thereafter,
and in any event within ten (10) business days of the date of exercise. The
persons entitled to the shares of Exercise Stock so purchased shall be treated
for all purposes as the holders of such shares as of the close of business on
the date of exercise. The certificates so delivered shall be in such
denominations as may be requested by the holder and shall be registered in the
name of the holder or such other name as shall be designated by the holder.

     6.   Valid Issuance of Shares. The Company covenants that (i) it will at
all times keep reserved for issuance upon exercise hereof such number of shares
of Series CC Preferred as shall be issuable upon such exercise, and (ii) the
shares of Series CC Preferred, when issued pursuant to the exercise of this
Warrant, will be duly and validly issued, fully paid and nonassessable and
free from all taxes, liens, charges and preemptive or similar rights with
respect to the issuance thereof.

     7.   Adjustment of Exercise Price and Type and Number of Shares. The
Exercise Price and the number and kind of shares of Exercise Stock (or other
securities) purchasable hereunder shall be subject to adjustment as follows:

          (a)  Subdivision or Combination of Common Stock. If the Company at
any time subdivides (by any stock split, stock dividend, recapitalization,
reorganization, reclassification or otherwise) its outstanding shares of
Series CC Preferred into a greater number of shares, then, after the date of
record for effecting such subdivision, the Exercise Price in effect immediately
prior to such subdivision will be proportionately reduced and the number of
shares of Exercise Stock acquirable hereunder shall be proportionately
increased. If the Company at any time combines (by reverse stock split,
recapitalization, reorganization, reclassification or otherwise) its
outstanding shares of Series CC Preferred into a smaller number of shares,
then, after the date of record for effecting such combination, the Exercise
Price in effect immediately prior to such combination will be proportionately
and equitably increased and the number of shares of Exercise Stock acquirable
hereunder shall be proportionately decreased.

          (b)  Consolidation, Merger or Sale. In case of any consolidation or
merger of the Company with any other corporation, or in case of any sale or
conveyance of all or substantially all of the Company other than in connection
with a plan of complete liquidation of the Company, then as a condition of such
consolidation, merger or sale or conveyance, adequate provision will be made
whereby the holder of this Warrant will have the right to acquire and receive
upon exercise of this Warrant in lieu of the shares of Series CC Preferred
immediately thereto fore acquirable upon the exercise of this Warrant, such
shares of stock, securities or assets as may be issued or payable with respect
to or in exchange for the number of shares of Series CC Preferred immediately
theretofore acquirable and receivable upon exercise of this Warrant had such
consolidation, merger or sale or conveyance not taken place. In any such case,
the Company will make appropriate provision to ensure that the provisions of
this Section 7 hereof will thereafter be applicable as nearly as may be in
relation to any shares of stock or securities thereafter deliverable upon the
exercise of this Warrant. The Company will

                                       3
<PAGE>

not effect any consolidation, merger or sale or conveyance unless prior to the
consummation thereof, the successor corporation (if other than the Company)
assumes by written instrument the obligations under this Section 7 and the
obligations to deliver to the holder of this Warrant such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the
holder may be entitled to acquire.

          (c)  Notice of Adjustment. Upon the occurrence of any event which
requires any adjustment of the Exercise Price, then, and in each such case, the
Company shall give notice thereof to the holder of this Warrant, which notice
shall state the Exercise Price resulting from such adjustment and the increase
or decrease in the number of Warrant Shares purchasable at such price upon
exercise, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based. Such calculation shall be certified
by the chief financial officer of the Company.

     8.   No Stockholder Rights. Prior to exercise of this Warrant, the holder
shall not be entitled to any rights of a stockholder with respect to the shares
of Exercise Stock, including, without limitation, the right to vote such
shares, receive dividends or other distributions thereon, exercise preemptive
rights or be notified of stockholder meetings.

     9.   Transferability. Except for transfers made to any Permitted Old Hill
Transferee (as defined in the Series CC Preferred Stock Shareholders' Agreement
by and among MEI Holdings, L.P., Old Hill and the Company, dated as of
September 7, 2001 (the "SHAREHOLDERS' AGREEMENT")) subject to Old Hill's rights
and obligations under the Shareholders' Agreement, this Warrant may not be
transferred or assigned, in whole or in part, without the prior written consent
of the Company, such consent not to be unreasonably withheld.

     10.  Legend; Notice of Proposed Transfers.

          (a)  Except for transfers made to any Permitted Old Hill Transferee
(as defined in the Shareholders' Agreement) subject to the Shareholders'
Agreement, this Warrant and the shares of Exercise Stock issuable upon exercise
of this Warrant (collectively, the "SECURITIES") shall not be sold, assigned,
transferred or pledged except upon the conditions specified in this Section 10.

          (b)  Each certificate representing the Exercise Stock and any other
securities issued in respect of the Exercise Stock upon any stock split, stock
dividend, recapitalization, merger, consolidation or similar event, shall be
stamped or otherwise imprinted with a legend in the following form (in addition
to any legend required under applicable state securities laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS AND HAVE BEEN TAKEN FOR INVESTMENT PURPOSES ONLY AND NOT WITH A
VIEW TO OR FOR SALE IN CONNECTION WITH ANY DISTRIBUTION THEREOF. THE SECURITIES
MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH

                                       4
<PAGE>
     REGISTRATION AND QUALIFICATION WITHOUT, EXCEPT UNDER CERTAIN SPECIFIC
     LIMITED CIRCUMSTANCES, AN OPINION OF COUNSEL FOR THE HOLDER, CONCURRED IN
     BY COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT
     REQUIRED.

Each holder of Securities and each subsequent transferee consents to the Company
making a notation on its records and giving instructions to any transfer agent
of the Securities in order to implement the restrictions on transfer established
in this Section 10.

          (c) Each holder of a warrant or stock certificate, as the case may be,
representing the Exercise Stock, by acceptance thereof, agrees to comply in all
respects with the provisions of this Section 10(c). Such holder agrees not to
make any disposition of all or any portion of the Exercise Stock unless and
until (x) there is then in effect a registration statement under the 1933 Act
covering such proposed disposition and such disposition is made in accordance
with such registration statement or (Y) such holder shall have notified the
Company of the proposed disposition and if requested by the Company, such holder
shall have furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company that such disposition will not require registration
of such shares under the 1933 Act.

     11. Investment Representations and Covenants of the Investor. With respect
to the acquisition of any of the Securities, the Investor hereby represents and
warrants to the Company as follows:

          (a) Experience; Accredited Investor. The Investor is capable of
evaluating the merits and risks of its investment in the Company and has the
capacity to protect its own interests. The Investor is an "accredited investor",
as defined in Regulation D promulgated under the 1933 Act.

          (b) Investment. The Investor is acquiring the Securities for
investment for its own account, not as a nominee or agent, and not with the view
to, or for resale in connection with, any distribution thereof. The Investor
understands that the Securities have not been, and will not be, registered under
the 1933 Act by reason of a specific exemption from the registration provisions
of the 1933 Act, the availability of which depends upon, among other things, the
bona fide nature of the investment intent and the accuracy of the Investor's
representations as expressed herein.

          (c) Rule 144. The Investor acknowledges that the Securities must be
held indefinitely unless subsequently registered under the 1933 Act, or unless
an exemption from such registration is available. The Investor is aware of the
provisions of Rule 144 promulgated under the 1933 Act that permit limited resale
of securities purchased in a private placement subject to satisfaction of
certain conditions.

     12.  Successors and Assigns. The terms and provisions of this Warrant and
the Agreement shall inure to the benefit of, and be binding upon, the Company
and the holders

                                       5
<PAGE>

hereof and their respective successors and permitted assigns. This Warrant will
be binding upon any entity succeeding the Company by merger or consolidation.

     13.  Amendments and Waivers. Any waiver or amendment of any term of this
Warrant shall be in writing and shall be binding upon any subsequent holder of
this Warrant.

     14.  Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be addressed to the receiving party's
address set forth in this Section 14 or to such other address as a party may
designate by notice hereunder, and shall be either (i) delivered by hand,
(ii) sent by reputable overnight courier, or (iii) sent by registered or
certified mail, return receipt requested, postage prepaid. All notices,
requests, consents, and other communications hereunder shall be deemed to have
been given either (x) if by hand, at the time of the delivery thereof to the
receiving party at the address of such party set forth below, (y) if sent by
overnight courier, on the next business day following the day such notice is
delivered to the courier service, or (z) if sent by registered or certified
mail, on the 5th business day following the day such mailing is made,

If to the Company at:

          Malibu Entertainment Worldwide, Inc.
          717 N. Harwood Street
          Suite 1650
          Dallas, Texas 75201
          Attn:  Scott Wheeler

If to Old Hill at:

          Old Hill Partners, Inc.
          28 Thorndal Circle
          2nd Floor
          Darien, CT 06820

With copy to:

          Pepper Hamilton LLP
          Suite 1600
          1201 Market Street
          P.O. Box 1709
          Wilmington, DE 19899-1709
          Attn: Richard P. Eckman, Esquire

     15.  Governing Law. This Warrant shall be governed by the laws of the State
of Georgia (without giving effect to the conflict of law principles thereof).

                     [THE NEXT PAGE IS THE SIGNATURE PAGE]

                                       6
<PAGE>

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
duly authorized officer as of September 7, 2001.

                                      MALIBU ENTERTAINMENT WORLDWIDE,
                                      INC.

                                      By:
                                          --------------------------------------

                                          Name:
                                                 -------------------------------

                                          Title:
                                                 -------------------------------

ACCEPTED and AGREED to;

OLD HILL PARTNERS, INC.

By: /s/  MARK SAMUEL
    -----------------------
    Name:  Mark Samuel

    Title: Secretary

                            [Warrant Signature Page]

<PAGE>

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
duly authorized officer as of September 7, 2001.

                                      MALIBU ENTERTAINMENT WORLDWIDE,
                                      INC.

                                      By: /s/       R. SCOTT WHEELER
                                          --------------------------------------

                                          Name:     R. SCOTT WHEELER
                                                 -------------------------------

                                          Title:    CEO
                                                 -------------------------------

ACCEPTED and AGREED to;

OLD HILL PARTNERS, INC.

By: /s/  MARK SAMUEL
    -----------------------
    Name:  Mark Samuel

    Title: Secretary

                            [Warrant Signature Page]
<PAGE>

                                    ANNEX A

                                  SUBSCRIPTION

Malibu Entertainment Worldwide, Inc.
Attention: Corporate Secretary

     The undersigned, the holder of the attached Warrant, hereby irrevocably
elects to purchase pursuant to the provisions of the attached Warrant
___________ shares of Series CC Preferred Stock of Malibu Entertainment
Worldwide, Inc.

     In full payment of the exercise price per share required under such Warrant
the undersigned:

________  (1)   hereby tenders payment of $ _____________ by cash, certified
                check or bank draft to the order of the Company; or

________  (2)   hereby makes a Cashless Exercise (as defined in the Warrant).

                                        WARRANT HOLDER:

                                        _______________________________________
                                        [Print Name]

Date: _______________________           By: ___________________________________

                                            Name: _____________________________

                                            Title: ____________________________

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