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Exhibit 10.1  

 
 

THIRD AMENDED AND RESTATED GULFSTREAM LOAN AGREEMENT
  (Reconstruction of and Addition of Additional Slots Facilities at Gulfstream Park, Florida)    
    

December 22,
2006 

  

 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	ARTICLE 1

ARTICLE DEFINITIONS
	
 1.1	

Definitions	
 	

4
	1.2	Time	 	25
	1.3	Calculation of Interest and Fees	 	25
	1.4	Currency	 	25
	1.5	Governing Law	 	25
	1.6	Inconsistencies	 	25
	1.7	Non-Business Days	 	25
	1.8	Late Payments	 	25
	1.9	Accounting Terms	 	26
	1.10	Interpretation Not Affected by Headings, Etc.	 	26
	1.11	Rules of Construction	 	26
	1.12	Severability	 	27
	1.13	References to Remington Loan Agreement	 	27
	1.14	Schedules	 	27
	
ARTICLE 2

THE LOAN
	
 2.1	

Loan Amount	
 	

27
	2.2	Advances	 	28
	2.3	Holdbacks	 	29
	2.4	Holdback Advances	 	29
	2.5	Advance Payments	 	32
	2.6	Evidences of Advances	 	32
	2.7	Term	 	33
	2.8	Cost Consultant	 	33
	
ARTICLE 3

PAYMENTS AND INTEREST
	
 3.1	

Repayment	
 	

34
	3.2	Limitation on Prepayment	 	35
	3.3	Gulfstream Loan Consent and Waiver Agreement	 	35
	3.4	Prepayment	 	35
	3.5	Interest	 	36
	3.6	Unwinding Costs	 	37
	3.7	Application of Expropriation Proceeds	 	37
	3.8	Interest on Fees and Other Charges	 	38
	3.9	Gulfstream Excess Cash Flow Sweep	 	38
	3.10	Costs, Expenses, Etc.	 	38
	3.11	Maximum Interest Rate	 	39
	3.12	Payments Free of Withholding Taxes	 	40
	3.13	Concurrent Exercise of Prepayment Rights	 	41

i

 

	 
	 
	 	Page

	
ARTICLE 4

ADVANCES UNDER THE LOAN
	
 4.1	

Tranche 1 First Advance	
 	

41
	4.2	Tranche 2 — First Advance	 	45
	4.3	Tranche 3 — First Advance	 	48
	4.4	Subsequent Advances	 	51
	
ARTICLE 5

SECURITY FOR LOAN
	
 5.1	

General	
 	

59
	5.2	Right to Substitute Security for the Aventura Property	 	63
	5.3	Development of the Mixed-Use Property	 	64
	5.4	Tranche 3 Additional Slots Financing	 	64
	
ARTICLE 6

REPRESENTATIONS AND WARRANTIES
	
 6.1	

Borrower's and Guarantors' Representations and Warranties	
 	

65
	6.2	Survival of Borrower's and Guarantors' Representations	 	76
	6.3	Lender's Representations and Warranties	 	77
	
ARTICLE 7

AFFIRMATIVE COVENANTS
	
 7.1	

Covenants	
 	

77
	
ARTICLE 8

NEGATIVE COVENANTS
	
 8.1	

Negative Covenants	
 	

90
	
ARTICLE 9

EVENTS OF DEFAULT; ACCELERATION OF INDEBTEDNESS
	
 9.1	

Events of Default	
 	

97
	9.2	Acceleration; Remedies	 	101
	9.3	Waiver of Certain Rights	 	101

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	 	Page

	
ARTICLE 10

MISCELLANEOUS
	
 10.1	

Reliance and Non-Merger	
 	

103
	10.2	Confidentiality	 	103
	10.3	No Set-Off	 	103
	10.4	Employment of Experts	 	103
	10.5	Reliance by Lender	 	104
	10.6	Notices	 	104
	10.7	Further Assurances	 	105
	10.8	Assignment	 	106
	10.9	Disclosure of Information to Potential Permitted Lender Assignees	 	107
	10.10	Right to Cure	 	107
	10.11	Forbearance by the Lender Not a Waiver	 	107
	10.12	Waiver of Statute of Limitations and Other Defenses	 	107
	10.13	Relationship and Indemnity	 	108
	10.14	Time of Essence	 	108
	10.15	Service of Process/Venue	 	108
	10.16	Jury Trial Waiver	 	109
	10.17	Final Agreement/Modification	 	109
	10.18	Continuing Agreement	 	109
	10.19	No Third Party Beneficiaries	 	109
	10.20	Appointment of Administrative Agent	 	110
	10.21	No Brokers	 	110
	10.22	Execution in Counterparts	 	110
	10.23	Contribution by Guarantors with Respect to Indebtedness	 	110
	10.24	Successors and Assigns Bound; Joint and Several Liability and Agents	 	111
	10.25	Loss of Gulfstream Note	 	111
	10.26	Confirmation of Guarantees and Security	 	111
	10.27	Acknowledgment	 	112
	10.28	Operation of Agreement Relating to the Remington Guarantor	 	113

iii

THIRD AMENDED AND RESTATED GULFSTREAM LOAN AGREEMENT  

        THIS THIRD AMENDED AND RESTATED LOAN AGREEMENT made as of the 22 day of December, 2006. 

BETWEEN: 

GULFSTREAM PARK RACING ASSOCIATION, INC.,
  a corporation incorporated under the laws of the State of Florida 

(hereinafter
called the "Borrower"), 

OF
THE FIRST PART, 

— and —

MID ISLANDI SF.,
  a partnership formed under the laws of Iceland, acting through its Zug branch 

(hereinafter
called the "Lender"), 

OF
THE SECOND PART, 

— and —

REMINGTON PARK, INC.,
  a corporation incorporated under the laws of the State of Oklahoma 

(hereinafter
called the "Remington Guarantor"), 

OF
THE THIRD PART, 

— and — 

GPRA THOROUGHBRED TRAINING CENTER, INC.,
  a corporation incorporated under the laws of the State of Delaware 

 

(hereinafter
called the "Palm Meadows Guarantor"). 

OF
THE FOURTH PART 

— and — 

MAGNA ENTERTAINMENT CORP.,

a corporation incorporated under the laws of the State of Delaware 

(hereinafter
called "MEC"). 

OF
THE FIFTH PART 

WITNESSES
THAT: 

        WHEREAS
pursuant to a construction loan agreement made as of December 9, 2004 (the "Original Gulfstream Loan Agreement")
between: (i) the Borrower, as borrower; (ii) the Lender, as lender; and (iii) MEC Pennsylvania, Washington Trotting, and Mountain Laurel, each as a guarantor; the Lender agreed to
make the Loan available to the Borrower to finance, inter alia, Construction Costs relating to the reconstruction (the "Reconstruction")
of the Gulfstream Park Race Track clubhouse/grandstand facility and backstretch and related site works in Broward County and Miami-Dade County, Florida, all as more particularly set forth
in the Original Gulfstream Loan Agreement; 

        AND
WHEREAS pursuant to an amendment and restatement of the Original Gulfstream Loan Agreement made as of July 22, 2005 (the "Original Amended and
Restated Gulfstream Loan Agreement") between: (i) the parties to the Original Gulfstream Loan Agreement; and (ii) the Remington Guarantor and the Palm Meadows
Guarantor, as additional guarantors (the parties to the Original Amended and Restated Gulfstream Loan Agreement other than the Borrower and the Lender hereinafter collectively referred to as
the "Guarantors"); the terms and conditions of the Original Gulfstream Loan Agreement were amended to include,  inter alia, the Remington Guarantee and
Indemnity, the Palm Meadows Guarantee and Indemnity and the MEC Guarantee and Indemnity, all as more
particularly set forth in the Original Amended and Restated Gulfstream Loan Agreement; 

        AND
WHEREAS pursuant to a consent and waiver agreement made as of October 14, 2005 (the "Gulfstream Loan Consent and Waiver
Agreement"), the parties thereto confirmed the terms and conditions upon which the Lender was prepared to: (i) provide such consents and waivers as were required to
permit the entering into and performance of the Second Amendment Documents (as defined therein) by the Borrower; (ii) provide such consents and waivers as were required to permit the
Sale of The Meadows (as defined therein) by MEC Pennsylvania; and (iii) make a Subsequent Advance under the Original Amended and Restated Gulfstream Loan Agreement (the Original
Amended and Restated Gulfstream Loan Agreement, as amended by the Gulfstream Loan Consent and Waiver Agreement, being referred to herein as the "Amended and Restated Gulfstream
Loan Agreement"); 

2

 

        AND
WHEREAS the parties entered into a Second Amended and Restated Gulfstream Loan Agreement made as of July 26, 2006 (the "Second Amended and
Restated Loan Agreement") pursuant to which the Lender agreed to loan to the Borrower an additional $25,750,000 by way of a second tranche of the Loan, for the purposes of
funding the Borrower's Tranche 2 Slots Facilities Costs; 

        AND
WHEREAS pursuant to an MEC Assignment of Tranche A Junior Notes and Tranche B Junior Notes (the "Note Assignment
Agreement") dated July 26, 2006 between the Lender and MEC, MEC, inter alia, absolutely and unconditionally
bargained, sold, conveyed, set over, granted, transferred, assigned and delivered to the Lender a security interest in all of the right, title and interest of MEC in, to and under,  inter alia, the
Tranche A Junior Notes, the Tranche B Junior Notes and the Ancillary Rights (all as defined
therein), as continuing security for the MEC Guarantee and Indemnity; 

        AND
WHEREAS pursuant to a Release And Termination Agreement (the "Release and Termination Agreement") made as of the
14th day of November, 2006 among the Lender, MEC, MEC Pennsylvania Racing, Inc., Washington Trotting Association, Inc., Mountain Laurel Racing, Inc. and PA
Meadows, LLC, the parties confirmed that the Holdback Agreement (as defined therein) is an Ancillary Right that has been assigned to the Lender pursuant to the Note Assignment Agreement; 

        AND
WHEREAS as of the date hereof, Tranche 1 (as defined herein) is fully drawn down, $18,126,315 has been drawn down under Tranche 2 and there is
$153,823,971 outstanding (including Costs and capitalized interest) under the Loan; 

        AND
WHEREAS the parties have agreed to enter into this Agreement to confirm the terms and conditions upon which the Lender is prepared to loan to the Borrower an additional $21,500,000
by way of a third tranche of the Loan, for the purposes of funding the Borrower's Tranche 3 Slots Facilities Costs; 

        AND
WHEREAS the parties hereto have agreed to amend and restate the Second Amended and Restated Gulfstream Loan Agreement in order to give effect to the matters referred to in the
preceding recital on the terms and conditions of this Agreement; 

        AND
WHEREAS the parties hereto agree that, notwithstanding such amendment and restatement of the Second Amended and Restated Gulfstream Loan Agreement, the Gulfstream Loan Consent and
Waiver Agreement shall continue to be in full force and effect in accordance with its terms; 

        NOW THEREFOR THIS AGREEMENT WITNESSES that, in consideration of the covenants and agreements herein contained, and in reliance on the
individual creditworthiness of the Borrower and each of the Guarantors based on the representations, warranties and covenants of the Borrower and each of the Guarantors contained herein, the parties
hereto agree as follows: 

3

 
ARTICLE 1  

 ARTICLE DEFINITIONS  

1.1   Definitions  

        As used herein, unless otherwise herein expressly provided, the following capitalized terms shall have the respective meanings set forth below: 

        "Additional Guarantors" means, collectively, the Remington Guarantor and the Palm Meadows Guarantor; 

        "Additional Security" has the meaning ascribed thereto in Section 5.1; 

        "Additional Slots Facilities Financing" has the meaning ascribed thereto in Section 5.4; 

        "Additional Slots Facilities Financing Terms" has the meaning ascribed thereto in Section 5.4; 

        "Additional Slots Facilities Initiative" has the meaning ascribed thereto in Section 5.4; 

        "Additional Title Policies" has the meaning ascribed thereto in Section 4.4(n)(ix); 

        "Administrative Agent" has the meaning ascribed thereto in Section 10.20; 

        "Advance" means the First Advance and any Subsequent Advances (including a Holdback Advance); 

        "Affiliate" shall mean, with respect to any Person, each Person that controls, is controlled by or is under common control with such
Person or any Affiliate of such Person; provided, however, that in no case shall any Administrative Agent or any Lender be deemed to be an Affiliate of the Borrower or any Guarantor for purposes of
this Agreement. For the purpose of this definition, "control" of a Person shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise; 

        "Agreement" has the meaning ascribed thereto in Section 1.10;. 

        "Allocable Amount" has the meaning ascribed thereto in Section 10.23; 

        "Applicable Legal Requirement" means any Governmental Rule which could be reasonably expected to be generally followed by any Person with
operations comparable to those which are or have been conducted by any of the Borrower and/or any of the Guarantors, as applicable, or to any of the operations now or previously conducted at any of
the Properties, as applicable; 

4

 

        "Approvals and Consents" means, collectively, the Gulfstream Loan OHRC Approval, the Remington Loan OHRC Approval, the Gulfstream Loan Zoo
Consent and the Remington Loan Zoo Consent; 

        "Architect" means BRPH Company — Engineers, Inc., or such other Person acceptable to the
Lender, acting reasonably, who is engaged in architectural work and who is a member or licensee in good standing of the Florida Association of the American Institute of Architects or any successor
thereto; 

        "Aventura Lands" means the lands of approximately 32.2 acres, in the City of Aventura, Miami-Dade County, Florida, legally
described on Schedule A; 

        "Aventura Property" means the Aventura Lands, and all improvements now or hereafter located on the Aventura Lands, together with all
tangible and intangible property of the Borrower now or hereafter owned or leased by the Borrower in connection with the Aventura Lands or the improvements now or hereafter thereon; 

        "Bankruptcy Code" has the meaning ascribed thereto in Section 9.1(e); 

        "Base Rate" means, for any day, the annual rate of interest equal to the greater of (i) the rate which the Bank of Montreal
establishes at its principal office in Toronto, Ontario as the reference rate of interest in order to determine interest rates it will charge on such day for commercial loans in U.S. dollars
made to its customers in Canada and which it refers to as its "Base Rate", and (ii) the Federal Funds Effective Rate on such day plus 1% per annum, such rate to be adjusted automatically and
without the necessity of any notice to the Borrower upon each change to such rate; 

        "Borrower" means Gulfstream Park Racing Association, Inc. and its successors and permitted assigns; 

        "Borrower Incorporation Documents" has the meaning ascribed thereto in Section 6.1(f); 

        "Borrower's and Guarantors' Counsel" means Osler, Hoskin & Harcourt LLP, or such other firm or firms of solicitors or
counsel as are appointed by the Borrower and the Guarantors from time to time and notice of which is provided to the Lender; 

        "Borrower's and Guarantors' Florida Agent" means the Miami office of Akerman Senterfitt, or such other firm or firms of solicitors or
agents in the State of Florida as are appointed by the Borrower and Guarantors from time to time and notice of which is provided to the Lender; 

        "Borrower's and Guarantor's Oklahoma Counsel" means the Oklahoma City office of Crowe & Dunlevy, A Professional Corporation, or
such other firm or firms of solicitors or agents in the State of Oklahoma as are appointed by the Borrower and Guarantors from time to time and notice of which is provided to the Lender; 

5

 

        "Borrower's and Guarantors' Pennsylvania Agent" means the Pittsburgh office of Eckert Seamans Cherin & Mellott, LLC, or such
other firm or firms of solicitors or agents in the Commonwealth of Pennsylvania as are appointed by the Borrower and Guarantors from time to time and notice of which is provided to the Lender; 

        "Business Day" means a day other than a Saturday, Sunday or other day on which commercial banks are authorized or obligated to close under
the laws of the United States of America or the State of Florida; 

        "Capital Expenditures" means, for any Person during any period, the aggregate amount of all expenditures of such Person for fixed or
capital assets made during such period which, in accordance with GAAP, are classified as capital expenditures; 

        "Capitalized Interest Tranche" has the meaning ascribed thereto in the Remington Loan Agreement; 

        "Capital Lease Obligations" means the obligations of the Borrower to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) real or personal property, which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP and, for
purposes of this Agreement, the amount of such obligations shall in each case be the capitalized amount thereof, determined in accordance with GAAP; 

        "Cash Equivalents" means short-term issued guaranteed deposits or certificates of deposit with recognized financial
institutions, bonds or similar obligations carrying the full faith and credit of the United States of America or any state thereof or any agency or instrumentality of any of the foregoing
unconditionally backed by such credit and other similar investments acceptable to the Lender in its sole discretion; 

        "Closing Date" means December 22, 2006; 

        "Collateral" shall mean, collectively, all of the undertaking, property and assets of the Borrower, the Guarantors and MEC subject to the
Encumbrances, or intended to be subject to the Encumbrances, created by the Security; 

        "Combined" means, in relation to any financial results or financial statements of the Borrower, the Remington Guarantor and the Palm
Meadows Guarantor, the combined financial results or financial statements of the Borrower, the Remington Guarantor and the Palm Meadows Guarantor, calculated and prepared in accordance
with GAAP; 

        "Compliance Certificate" has the meaning attributed thereto in Section 7.1(d)(i)(B); 

        "Construction Contracts" means all contracts entered into by the Borrower or its agents with Persons for the supply by such Persons of
construction services or materials for the Reconstruction or any part thereof or services or materials related thereto, including, without limitation, the Suitt Stipulated Lump Sum Contract and the
Ranger Construction Stipulated Lump Sum Contract; 

6

 

        "Construction Costs" means all costs and expenses properly paid or due for the development, design, and construction of the Gulfstream
Facilities or any part thereof as part of the Reconstruction and the financing of same (but excluding all costs and expenses relating to the development, design and construction of the racing
surfaces and excluding the Gulfstream FF&E), including, without limiting the generality of the foregoing: 

	(i)
	payments
made to general contractors, trade contractors and/or subcontractors and material suppliers pursuant to contracts relating directly to the construction and
lease-up of the Reconstruction;

	(ii)
	on-site
costs incurred by or on behalf of the Borrower, including the cost of full-time on-site employees;

	(iii)
	reasonable
professional and consulting fees and expenses such as architectural, engineering, leasing, surveying, design, legal and accounting fees and expenses;

	(iv)
	costs
of building permits, water and sewer connection or usage fees, municipal levies, hydro fees and other similar expenses, temporary utilities, traffic signalization
and landscaping;

	(v)
	all
expenses relating to construction insurance, necessary surety and other performance bonds;

	(vi)
	underwriting
and financing fees, including letters of credit, standby fees, commitment fees, hedging fees and other finance placement costs; and

	(vii)
	interest
at the rate applicable from time to time on the principal amount outstanding hereunder for the payment of those items listed in clauses (i)
through (vi) of this definition to the end of the previous month; 

        "Cost Consultant" has the meaning ascribed thereto in Section 2.8; 

        "Cost Retainer" has the meaning ascribed thereto in Section 3.10; 

        "Costs" has the meaning ascribed thereto in Section 3.10; 

        "Disclosure Schedule" means the disclosure schedule prepared and executed by the Borrower as of December 22, 2006; 

        "EBITDA" means the earnings of a Person for any period before interest, taxes, depreciation and amortization for such Person, in each
case, determined on a consolidated basis; 

        "Employee Benefit Plan" shall mean any employee benefit plan within the meaning of section 3(3) of ERISA maintained or contributed
to by the Borrower or any Guarantor or any ERISA Affiliate, other than a Multiemployer Plan; 

7

 

        "Encumbrance" means any mortgage, lien (statutory or otherwise), pledge, assignment by way of security, charge, preference, priority,
security interest, lease intended as security, title retention agreement, statutory right reserved in any Governmental Authority, registered lease of real property, hypothecation, deposit arrangement
or other security arrangement of any kind; 

        "Environment" means soil, land, surface and subsurface strata, surface waters, groundwaters, drinking water supply, stream sediments,
ambient air (including air in buildings, natural or man-made structures), all layers of the atmosphere, all inorganic and organic matter and living organisms (including humans), all
natural resources and the interacting natural systems that include the foregoing listed components; 

        "Environmental Consent" means any consent, approval, permit, licence, Order, filing, authorization, exemption, registration, ratification,
permission, waiver, reporting or notice requirement and any other related agreement or communications whatsoever issued, granted or given or otherwise made available by or under the authority of any
Governmental Authority regarding environmental matters or under any Environmental Law; 

        "Environmental Damages" means all claims, judgments, damages, losses, penalties, liabilities (including strict liability), fines, charges,
costs and expenses, including costs of investigation, remediation, defense, settlement and reasonable attorneys' fees and expenses and reasonable consultants' fees, that (i) are incurred at any
time as a result of the existence of any Hazardous Materials at, on, upon, about or beneath any of the Properties or migrating or threatening to migrate to or from any of the Properties, or
(ii) arise from any investigation, Proceeding or remediation of any of the Properties (or any adjacent property to which any such Hazardous Materials may have migrated) in connection
with any allegation that any Person directly or indirectly disposed of Hazardous Materials therein, thereon or thereunder or in any manner whatsoever in violation of Environmental Laws; 

        "Environmental Disclosure" means the text of the Environmental Reports, in each case, including the attachments thereto but excluding the
underlying documents referred to in the Environmental Reports; 

        "Environmental Laws" means any Applicable Legal Requirement that requires or relates to: 

	(i)
	notifying
appropriate authorities, employees or the public of the presence of or intended or actual Releases of Hazardous Materials or violations of discharge limits or
other prohibitions or of the commencement of activities, such as resource extraction or construction, that could have an impact on the Environment;

	(ii)
	preventing
or reducing to acceptable levels the presence of or Release of Hazardous Materials in or into the Environment;

	(iii)
	reducing
the quantities, preventing the Release or minimizing the hazardous characteristics of wastes that are generated; 

8

 

	(iv)
	protecting
the Environment including regulating, limiting or restricting Releases of Hazardous Materials and protecting resources, species, or visual or ecological
amenities;

	(v)
	the
transportation, use and disposal of Hazardous Materials or other potentially harmful substances;

	(vi)
	remediating
Hazardous Materials that have been Released or are in the Environment, preventing the Threat of Release or paying the costs of such remediation; or

	(vii)
	making
responsible Persons or polluting Persons pay private parties or third parties, or groups of them, for damages done to their health or the Environment or
permitting representatives of the public to recover for injuries done to public assets or to obtain any other remedies whatsoever; 

        and
includes all Environmental Consents; 

        "Environmental or Safety Liability" means any Loss arising from, under, or in connection with any of the following: 

	(i)
	any
environmental or safety matter or condition (including the presence, use, generation, manufacture, disposal or transport of Hazardous Materials, on-site
or off-site contamination, safety or health matters, noise, odour, nuisance or the regulation of any chemical substance or product);

	(ii)
	responsibility,
financial or otherwise, under any Environmental Law or Safety Law for clean-up costs or corrective action, including any
clean-up, removal, containment or other remediation or response actions required by any Environmental Law or Safety Law (whether or not such actions have been required or requested by any
Governmental Authority or any other Person) and for any natural resource damages; or

	(iii)
	any
other compliance, corrective, remedial or other measure or cost required or lawfully imposed under any Environmental Law or Safety Law; 

        "Environmental Reports" has the meaning ascribed thereto in Section 7.1(w); 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended; 

        "ERISA Affiliate" means any Person which is treated as a single employer with the Borrower or any Guarantor under Section 414 of
the IRC; 

        "Event of Default" has the meaning ascribed thereto in Section 9.1; 

9

 

        "Federal Funds Effective Rate" means, for any day, the annual rate of interest equal to the weighted average of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding
Banking Day) by the Federal Reserve Bank of New York, or if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions
received by an agent for the Lender from three United States of America federal funds brokers of recognized standing selected by it; 

        "GAAP" means, at any time, generally accepted accounting principles in effect from time to time in the United States of America as
applied in a consistent manner from period to period; 

        "Governmental Authority" means (a) any nation, state, county, city, town, borough, village, district or other jurisdiction;
(b) any federal, state, local, municipal, foreign or other government; (c) any governmental or quasi-governmental authority of any nature (including any agency, branch, department,
board, commission, court, tribunal or other entity exercising governmental or quasi-governmental power); (d) any body exercising, or entitled or purporting to exercise, any administrative,
executive, judicial, legislative, regulatory or taxing authority or power, including the Federal Deposit Insurance Corporation, the Federal Reserve Board, the Comptroller of the Currency, any central
bank, fiscal, monetary or any comparable authority; or (e) any official of the foregoing; 

        "Governmental Authorizations" means any permit (including a building permit), licence, registration, approval (including a development or
zoning approval or variance or a platting or land subdivision approval), finding of suitability, authorization, plan, directive, order, consent, exemption, waiver, consent order or consent decree of
or from, or notice to, action by or filing with, any Governmental Authority; 

        "Governmental Rule" means any applicable federal, state, provincial, regional, local, municipal, foreign or other law, treaty,
constitution, statute, regulation, by-law, common law, principle of common law, code, ordinance, policy, circular, guideline, rule, Order or any other instrument, declaration or statement
of a Governmental Authority provided that if the same does not have the force of law, it is generally expected to be complied with by those to whom it is addressed by the authority enacting or
responsible for implementing the same; 

        "Guarantees and Indemnities" means, collectively, the Remington Guarantee and Indemnity, the Palm Meadows Guarantee and Indemnity, and the
MEC Guarantee and Indemnity; 

        "Guarantor Incorporation Documents" has the meaning ascribed thereto in Section 6.1(g); 

        "Guarantor Payment" has the meaning ascribed thereto in Section 10.23; 

        "Guarantors" means, collectively, the Additional Guarantors; 

        "Gulfstream/Aventura Tranche 2 Future Advance Agreement" means the certificate of future advance and first mortgage modification
agreement in respect of the Gulfstream/Aventura Mortgage, executed and delivered by the Borrower in connection with the creation of Tranche 2 and registered against title to the
Gulfstream/Aventura Lands; 

10

 

        "Gulfstream/Aventura Tranche 3 Future Advance Agreement" means the certificate of future advance and second mortgage modification
agreement (in form and substance satisfactory to the Lender and the Borrower) in respect of the Gulfstream/Aventura Mortgage, to be executed and delivered by the Borrower in connection with the
creation of Tranche 3 and registered against title to the Gulfstream/Aventura Lands; 

        "Gulfstream/Aventura Mortgage" has the meaning ascribed thereto in Section 5.1(b); 

        "Gulfstream/Aventura Properties" means, collectively, the Gulfstream Property and the Aventura Property; 

        "Gulfstream/Aventura Title Policy" has the meaning ascribed thereto in Section 4.1(r); 

        "Gulfstream Development Agreement" means the construction agreement, dated March 3, 2002, between the City of Hallandale Beach and
the Borrower, relating to the development of the Gulfstream Property; 

        "Gulfstream Excess Cash Flow" means, for any fiscal year of the Borrower, an amount equal to the EBITDA of the Borrower
(a) increased by, to the extent not added back in the calculation of EBITDA for such fiscal quarter, any non-cash deductions therefrom, including any deductions for deferred or
capitalized interest and for extraordinary or unusual losses, in each case, in respect of such fiscal year and (b) reduced by (i) any Capital Expenditures of the Borrower permitted by
Section 8.1(h), (ii) cash taxes of the Borrower to the extent not included in the calculation of EBITDA for such fiscal year, (iii) extraordinary or unusual gains of the Borrower,
to the extent included in the calculation of EBITDA for such fiscal year, and (iv) all payments for interest (other than deferred or capitalized interest) and principal (other than payments
required for the Gulfstream Excess Cash Flow Sweep) on any debt for borrowed money of the Borrower permitted by Section 8.1(b), in respect of such fiscal year; 

        "Gulfstream Excess Cash Flow Sweep" has the meaning ascribed thereto in Section 3.9; 

        "Gulfstream Excess Cash Flow Sweep Termination Date" means the date upon which the Borrower has repaid in full all of Tranche 2; 

        "Gulfstream Facilities" has the meaning ascribed thereto in the second recital of the Original Gulfstream Loan Agreement; 

        "Gulfstream Facilities Completion Date" means February 1, 2006; 

        "Gulfstream FF&E" means the furniture, fixtures, equipment, machinery and all process related additions to the building relating to the
Gulfstream Facilities; 

11

   
        "Gulfstream Lands" means the lands comprised of approximately 214.8 acres (including the Mixed-Use Lands) and having a
building area of approximately 350,000 square feet for the clubhouse and grandstand plus approximately 240,000 square feet for the backstretch, upon which the Gulfstream
Facilities are to be reconstructed, located in Broward County and Miami-Dade County, Florida, and legally described on Schedule E; 

        "Gulfstream Loan OHRC Approval" means the approval of the OHRC required to permit the Remington Guarantor to enter into the Loan Documents
to be provided by it and to perform its obligations thereunder, in form and on terms satisfactory to the Lender acting reasonably; 

        "Gulfstream Note" has the meaning ascribed thereto in Section 5.1(a); 

        "Gulfstream Property" means the Gulfstream Lands, and all improvements (including without limitation the Gulfstream Facilities) now or
hereafter located on the Gulfstream Lands, together with all tangible and intangible property of the Borrower now or hereafter owned or leased by the Borrower in connection with the Gulfstream Lands
or the improvements now or hereafter thereon; 

        "Gulfstream Repayment Commencement Date" has the meaning ascribed thereto in Section 3.1; 

        "Gulfstream Restricted Payment Release Conditions" has the meaning ascribed thereto in Section 8.1(u); 

        "Gulfstream Tranche 1 Maturity Date" has the meaning ascribed thereto in Section 2.7; 

        "Gulfstream Tranche 2 and Tranche 3 Maturity Date" has the meaning ascribed thereto in Section 2.7; 

        "Gulfstream Tranche 1 Unamortized Amount" means, at any time and from time to time, the outstanding principal amount of
Tranche 1, including accrued and capitalized interest and Costs in respect thereof of the Lender, at such time; 

        "Gulfstream Tranche 2 Unamortized Amount" means, at any time and from time to time, the outstanding principal amount of
Tranche 2, including accrued and capitalized interest and Costs in respect thereof of the Lender, at such time; 

        "Gulfstream Tranche 3 Unamortized Amount" means, at any time and from time to time, the outstanding principal amount of
Tranche 3, including accrued and capitalized interest and Costs in respect thereof of the Lender, at such time; 

        "Gulfstream Loan Zoo Trust Consent" means the consent of the Zoo Trust required to permit the Remington Guarantor to enter into Loan
Documents to be provided by it and to perform its obligations thereunder, in form and on terms satisfactory to the Lender, acting reasonably; 

12

 

        "H.15 Statistical Release" has the meaning ascribed thereto in Section 3.4; 

        "Hazardous Activity" shall include the distribution, generation, handling, importing, management, manufacturing, processing, production,
refinement, release, storage, transfer, transportation, treatment or use (including any withdrawal or other use of contaminated groundwater) of Hazardous Materials in, on, under, about and from any of
the Properties or any part thereof and any other act, business or operation that poses a material risk of harm, to Persons or property on or off the Properties; 

        "Hazardous Material" shall mean any solid, liquid, gas, odour, heat, vibration, radiation or combination of any of them that may have an
adverse effect on the Environment, and includes all wastes, pollutants, contaminants and each hazardous, toxic, radioactive, noxious, flammable, corrosive or caustic matter or substance, including any
substance, material or waste which is or is expected to be regulated by any Governmental Authority and including any material, substance or waste which is defined as a "contaminant" or "pollutant" or
as "hazardous", "toxic", "harmful" or "dangerous" under any provision of any Environmental Law or Safety Law, and including petroleum, petroleum products, asbestos, asbestos-containing material, urea
formaldehyde and polychlorinated biphenyls; 

        "Holdback Advance" means a Reconstruction Holdback Advance or a Slots Facilities Holdback Advance, as the case may be; 

        "Holdback Agreement" has the meaning ascribed thereto in the fifth recital hereto; 

        "Horsemen's Agreement" means an agreement between the Borrower and the Florida Horsemen's Benevolent and Protective
Association, Inc. regarding the application of gross slot machine revenue from the Slots Facilities to thoroughbred horse race purses delivered August 9, 2006; 

        "Indebtedness" has the meaning ascribed thereto in Section 5.1; 

        "Independent Investment Banker" has the meaning ascribed thereto in Section 3.4; 

        "Interest Date" means (i) where the Tranche 1 Interest Rate is being determined with reference to LIBOR, the last day of
each one month LIBOR period used in determining the Tranche 1 Interest Rate, and (ii) in all other cases, the last Business Day of each calendar month; 

        "IRC" means the Internal Revenue Code of 1986, as amended; 

        "JV Ground Lease" has the meaning ascribed thereto in Section 5.3; 

        "JV Inter-Creditor Agreement" has the meaning ascribed thereto in Section 5.3; 

        "Lender" means MID Islandi sf., a partnership formed under the laws of Iceland, acting through its Zug Branch, and its successors and
permitted assigns; 

13

 

        "Lender's Counsel" means Davies Ward Phillips & Vineberg LLP, or such other firm or firms of solicitors or counsel as are
appointed by the Lender from time to time and notice of which is provided to the Borrower and the Guarantors; 

        "Lender's Florida Agent" means the Miami office of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., or such other firm or
firms of solicitors or agents in the State of Florida as are appointed by the Lender from time to time and notice of which is provided to the Borrower and the Guarantors; 

        "Lender's Oklahoma Agent" means the Oklahoma City office of Spradling, Kennedy & McPhail L.L.P., or such other firm or firms
of solicitors or agents in the State of Oklahoma as are appointed by the Lender from time to time and notice of which is provided to the Borrower and the Guarantors; 

        "Lender's Pennsylvania Agent" means the Pittsburgh office of Pepper Hamilton LLP, or such other firm or firms of solicitors or
agents in the Commonwealth of Pennsylvania as are appointed by the Lender from time to time and notice of which is provided to the Borrower and the Guarantors; 

        "Lender's Tranche 1 Pre-Advance Expenses" means all reasonable and documented fees and charges, including legal fees
and disbursements, closing costs, recording and notary fees and any other similar matters pertinent thereto incurred by the Lender and/or its advisors in connection with this Agreement and/or the Loan
Documents on or prior to the date of the Tranche 1 First Advance; 

        "Lender's Tranche 2 Pre-Advance Expenses" means all reasonable and documented fees and charges, including legal fees
and disbursements, closing costs, recording and notary fees and any other similar matters pertinent thereto incurred by the Lender and/or its advisors in connection with this Agreement and/or the Loan
Documents on or prior to the date of the Tranche 2 First Advance; 

        "Lender's Tranche 3 Pre-Advance Expenses" means all reasonable and documented fees and charges, including legal fees
and disbursements, closing costs, recording and notary fees and any other similar matters pertinent thereto incurred by the Lender and/or its advisors in connection with this Agreement and/or the Loan
Documents on or prior to the date of the Tranche 3 First Advance; 

        "LIBOR" has the meaning ascribed thereto in the documentation governing MID's principal floating rate credit facility referred to in the
definition of "Tranche 1 Interest Rate"; 

        "Loan" has the meaning ascribed thereto in Section 2.1; 

        "Loan Amount" means the aggregate of the principal amount of the Loan, being comprised of (i) the principal amount of $115,000,000,
together with an amount equal to the Costs that are deemed to be Advances made available pursuant to Tranche 1 (collectively, the "Tranche 1 Loan
Amount"); (ii) the principal amount of $25,750,000, together with an amount equal to the Costs that are deemed to be Advances made available pursuant to Tranche 2
and the Tranche 2 Arrangement Fee (collectively, the "Tranche 2 Loan Amount"); and (iii) the principal amount of
$21,500,000, together with an amount equal to the Costs that are deemed to be Advances made available pursuant to Tranche 3 and the Tranche 3 Arrangement Fee (collectively, the  "Tranche 3 Loan
Amount") as the same may be reduced from time to time in accordance with the terms hereof;
 

14

 

        "Loan Documents" means, collectively, this Agreement, the Security and all other documents and agreements delivered pursuant hereto
and thereto; 

        "Loss" means any liability, cost, damage, Environmental Damage, loss, obligation, claim, action, suit, fine, penalty, judgment, award,
legal or administrative proceeding, other Proceeding, demand or response, remedial or inspection cost or expense, amount paid in settlement, interest thereon or expense (including reasonable and
documented legal or consulting fees, court costs and other out-of-pocket expenses incurred by or on behalf of the Lender in investigating, preparing or defending
the foregoing); 

        "Margin Stock" has the meaning ascribed thereto in Section 6.1(mm); 

        "Material Adverse Change" means any material adverse change in the business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower or of any Guarantor, or of any of the Properties; 

        "Material Adverse Effect" means an event, occurrence or condition which has a material adverse effect on (i) the business, assets,
operations, liabilities, prospects or financial or other condition of the Borrower and/or any of the Guarantors, (ii) the ability of the Borrower to complete the Reconstruction and/or the Slots
Facilities Initiative, (iii) the ability of the Remington Guarantor to complete the Remington Construction, (iv) the ability of the Borrower and/or any of the Guarantors and/or MEC to
pay the Indebtedness or perform any of its obligations in accordance with the terms of this Agreement and the other Loan Documents, (v) the rights and remedies of the Administrative Agent or
any Lender under this Agreement or the other Loan Documents, (vi) the value of the Collateral, or (vii) the Lender's security interests in the Collateral or the perfection or priority of
such security interests; 

        "Material Agreements" means: (i) the Remington Construction Contracts; (ii) the Remington Development Agreement;
(iii) the Construction Contracts; (iv) the Tranche 2 Slots Facilities Contracts; (v) the Tranche 3 Slots Facilities Contracts; (vi) the Gulfstream Development
Agreement; (vii) the Remington Lease; (viii) the agreements and other documents disclosed by the Borrower or a Guarantor as Material Agreements in either (A) the Disclosure
Schedule or (B) in writing to the Lender at any time as provided in Section 6.1(o); (ix) other contracts, agreements, commitments or other documents materially affecting the use,
development, leasing, construction and/or operation of any of the Properties; and (x) any contract, agreement, commitment or other document, the default under or the termination of which could
reasonably be expected to result in a Material Adverse Change; 

        "MEC" means Magna Entertainment Corp., a corporation incorporated and subsisting under the laws of the State of Delaware, and its
successors and permitted assigns; 

15

 

        "MEC Guarantee and Indemnity" has the meaning ascribed thereto in Section 5.1(l); 

        "MEC Recapitalization Plan" means the plan approved and adopted by the MEC's board of directors to recapitalize MEC and its subsidiaries
and to revise the business plan for MEC and its subsidiaries, and which shall be in form, scope and terms satisfactory to the Lender in its sole and absolute discretion; 

        "MID" means MI Developments Inc., a corporation incorporated under the laws of the Province of Ontario; 

        "Mixed-Use Lands" means the lands of approximately 85.7 acres, forming part of the Gulfstream Lands, as more
particularly described on Schedule B-1 of the Mixed-Use Property Pre-Development Agreement, that the Borrower proposes to develop for a mixed-use
development; 

        "Mixed-Use Property" means the Mixed-Use Lands, and all improvements now or hereafter located on the
Mixed-Use Lands, together with all tangible and intangible property of the Borrower now or hereafter owned or leased by the Borrower in connection with the Mixed-Use Lands or
the improvements now or hereafter thereon; 

        "Mixed-Use Property Pre-Development Agreement" means the pre-development management agreement, dated
April 2, 2004, by and between the Borrower, as owner, and Forest City Commercial Group, Inc., as developer; 

        "Mortgages" means, collectively, the Remington Second Mortgage, the Gulfstream/Aventura Mortgage and the Palm Meadows Training Center
Mortgage; 

        "Multiemployer Plan" means any multiemployer plan within the meaning of section 3(37) of ERISA maintained or contributed to by the
Borrower, any Guarantor or any ERISA Affiliate; 

        "Net Debt" of a Person means, at any time, the debt of such Person and its subsidiaries at such time determined in accordance with GAAP
(including, for greater certainty, indebtedness and liabilities in respect of capital leases and similar obligations) less the aggregate of cash and Cash Equivalents of such Person at such time to
which such Person has the sole and unrestricted right. For greater certainty, cash and Cash Equivalents of a Person shall exclude purse accounts and pooled or co-mingled cash or Cash
Equivalents unless Net Debt is being determined on a Combined basis, in which case pooled or co-mingled cash or Cash Equivalents which are solely those of Persons included in the
calculation of Combined Net Debt shall not be excluded; 

        "Note Assignment Agreement" has the meaning ascribed thereto in the fifth recital hereto; 

        "Occupancy Agreements" has the meaning ascribed thereto in Section 6.1(q); 

        "OHRC" means the Oklahoma Horse Racing Commission; 

16

 

        "Order" means any order, injunction, judgment, decision, decree, ruling, assessment or arbitration award of any Governmental Authority
or arbitrator; 

        "Organizational Documents" has the meaning ascribed thereto in Section 6.1(g); 

        "Original Gulfstream Loan Agreement" has the meaning ascribed thereto in the first recital hereto; 

        "Original Security" has the meaning ascribed thereto in Section 5.1; 

        "Palm Meadows Guarantee and Indemnity" has the meaning ascribed thereto in Section 5.1(j); 

        "Palm Meadows Guarantor" means GPRA Thoroughbred Training Center, Inc., and its successors and permitted assigns; 

        "Palm Meadows Training Center Lands" means the lands legally described on Schedule D; 

        "Palm Meadows Training Centre Tranche 2 Future Advance Agreement" means the certificate of future advance and first mortgage
modification agreement in respect of the Palm Meadows Training Centre Mortgage, to be executed and delivered by the Palm Meadows Guarantor in connection with the creation of Tranche 2
and registered against title to the Palm Meadows Training Centre Property; 

        "Palm Meadows Training Centre Tranche 3 Future Advance Agreement" means the certificate of future advance and second mortgage
modification agreement (in form and substance satisfactory to the Lender, acting reasonably) in respect of the Palm Meadows Training Centre Mortgage, to be executed and delivered by the Palm
Meadows Guarantor in connection with the creation of Tranche 3 and registered against title to the Palm Meadows Training Centre Property; 

        "Palm Meadows Training Center Mortgage" has the meaning ascribed thereto in Section 5.1(k)(i); 

        "Palm Meadows Training Center Property" means the Palm Meadows Training Center Lands and all improvements now or hereinafter located on
the Palm Meadows Training Center Lands, together with all tangible and intangible property now or hereafter owned or leased by the Palm Meadows Guarantor in connection with the Palm Meadows Training
Center Lands or the improvements now and hereafter thereon; 

        "Permitted Encumbrances" means the encumbrances set out in Schedule C hereto, any Purchase Money Security Interests in respect of:
(a) the Properties up to a maximum aggregate amount (together with any Purchase Money Security Interests in respect of the Properties disclosed on Schedule C) of $12,500,000;
(b) the Tranche 2 Slots Facilities up to a maximum aggregate amount of $2,500,000, and (c) the Tranche 3 Slots Facilities up to a maximum aggregate amount of $2,500,000,
and any other encumbrances from time to time permitted by the Lender, in its sole and absolute discretion, (including but not limited to any encumbrances created pursuant to the Additional Slots
Facilities Initiative, provided that such encumbrances are approved by the Lender pursuant to Section 5.4) in respect of any of the Properties; 

17

 

        "Permitted Lender Assignee" has the meaning ascribed hereto in Section 10.6; 

        "Person" means and includes an individual, a partnership, a corporation (including a business trust), a joint stock company, an
unincorporated association, a limited liability company, a limited liability partnership, a joint venture, a trust or other entity or a Governmental Authority; 

        "Plans", in relation to the Reconstruction, the Tranche 2 Slots Facilities Initiative or the Tranche 3 Slots Facilities
Initiative, as the case may be, has the meaning ascribed thereto in Section 7.1(h) and, in relation to the Remington Construction, has the meaning ascribed thereto in the Remington
Loan Agreement; 

        "Pre-Payment Amount" has the meaning ascribed thereto in Section 3.4; 

        "Pre-Payment Date" has the meaning ascribed thereto in Section 3.4; 

        "Pre-Payment Make-Whole Amount" has the meaning ascribed thereto in Section 3.4; 

        "Pre-Payment Notice" has the meaning ascribed thereto in Section 3.4; 

        "Proceeding" means any action, arbitration, audit, claim, hearing, investigation, litigation or suit (whether civil, criminal,
administrative, judicial or investigative, whether formal or informal, whether public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental
Authority or arbitrator; 

        "Properties" means, collectively, the Gulfstream/Aventura Properties, the Remington Property and the Palm Meadows Training Centre Property
and "Property" means any one of the Properties; 

        "Purchase Money Obligation" means any indebtedness, liability or obligation representing any unpaid part of, or incurred or assumed to pay
or refinance the whole or any part of, the cost of acquisition of any property or asset acquired by the Borrower intended to be used in carrying on the business of the Borrower and any expenditures
made for fixed improvements thereto, if such borrowing is incurred or assumed within 24 months after the acquisition of such property or asset or the making of such expenditures, as the case
may be, including Capital Lease Obligations; 

        "Purchase Money Security Interest" means any Encumbrance to secure a Purchase Money Obligation, provided that: (i) the Encumbrance
attaches solely to the property or asset acquired or purchased (excluding any acquired or purchased equity securities) and fixed improvements thereto; (ii) at the time of acquisition of such
property or asset, the aggregate principal amount remaining unpaid on all Purchase Money Obligations secured by such Encumbrance on such property or assets whether or not assumed by the Borrower does
not exceed an amount equal to the total purchase price of such property or assets; and (iii) such Purchase Money Obligations shall have been incurred within the limitations of this Agreement,
together with any renewals or replacements of any such Encumbrances on such property or asset, provided that the amount secured by such renewal or replacement Encumbrance does not increase above the
original amount secured; 

18

 

        "Ranger Construction Stipulated Lump Sum Contract" means the stipulated lump sum contract (AIA A101-1997 Edition),
dated April 2004, between the Borrower and Ranger Construction South, a member of Vecellio Group, Inc.; 

        "Reconstruction" has the meaning ascribed thereto in the first recital hereof; 

        "Reconstruction Holdback" has the meaning ascribed thereto in Section 2.3; 

        "Reconstruction Holdback Advance" has the meaning ascribed thereto in Section 4; 

        "Release" shall mean any release, spill, emission, leaking, pumping, pouring, dumping, emptying, injection, deposit, disposal, discharge,
dispersal, leaching or migration or other movement on, into or through the Environment or on, into, through, over or out of any property; 

        "Release and Termination Agreement" has the meaning ascribed thereto in the sixth recital hereto; 

        "Relevant Entities" shall mean the Borrower and each Guarantor; 

        "Remaining Term" has the meaning ascribed thereto in Section 3.4; 

        "Remington Construction" means the "Construction" as defined in the Remington
Loan Agreement; 

        "Remington Construction Contracts" means "Construction Contracts" as defined in the
Remington Loan Agreement; 

        "Remington Development Agreement" has the meaning ascribed thereto in the Remington Loan Agreement; 

        "Remington Facilities" has the meaning ascribed thereto in the Remington Loan Agreement; 

        "Remington Facilities Completion Date" means November 22, 2005; 

        "Remington Lands Tranche 2 Future Advance Agreement" means the first amendment of loan documents in respect of the Remington
Mortgage, executed and delivered by the Remington Guarantor in connection with the creation of Tranche 2 and registered against title to the Remington Property; 

19

 

        "Remington Lands Tranche 3 Future Advance Agreement" means the second amendment of loan documents (in form and substance
satisfactory to the Lender, acting reasonably) in respect of the Remington Mortgage, to be executed and delivered by the Remington Guarantor in connection with the creation of Tranche 3
and registered against title to the Remington Property; 

        "Remington Guarantee and Indemnity" has the meaning ascribed thereto in Section 5.1(h); 

        "Remington Guarantor" means Remington Park, Inc., and its successors and permitted assigns; 

        "Remington Lands" means the lands legally described on Schedule B; 

        "Remington Lease" means the lease agreement dated June 12, 1986 between the Trustees of the Zoo Trust, as lessor, and Oklahoma
Racing Associates (a predecessor in interest of the Remington Guarantor), as lessee, as amended and as assigned to the Remington Guarantor by agreement dated April 15, 1988, pursuant to
which the Borrower has leased the Remington Lands; 

        "Remington Loan Agreement" means the loan agreement made as of July 22, 2005 among the Remington Guarantor, as borrower, the
Lender, as lender, and the Borrower, the Palm Meadows Guarantor and MEC, as guarantors, as the same may hereafter be further amended or restated from time to time; 

        "Remington Loan OHRC Approval" means the OHRC Approval as defined in the Remington Loan Agreement; 

        "Remington Loan Zoo Consent" means the Zoo Consent as defined in the Remington Loan Agreement; 

        "Remington Property" means the Remington Guarantor's leasehold interest in the Remington Lands, and all improvements (including without
limitation the Remington Facilities) now or hereafter located on the Remington Lands, together with all tangible and intangible property of the Remington Guarantor now or hereafter owned or leased by
the Remington Guarantor in connection with the Remington Lands or the improvements now or hereafter thereon; 

        "Remington Repayment Commencement Date" shall have the meaning ascribed thereto in the Remington Loan Agreement; 

        "Remington Second Mortgage" shall have the meaning ascribed thereto in Section 5.1(i); 

        "Remington Title Policy" has the meaning ascribed thereto in Section 4.3(n)(ix); 

        "Reportable Event" has the meaning given to that term under ERISA and applicable regulations thereunder; 

20

 

        "Request for Advance" means each request for an Advance under the Loan to be submitted by the Borrower in a form acceptable to
the Lender; 

        "ROFO Notice" has the meaning ascribed thereto in Section 5.4; 

        "Safety Consent" shall mean any consent, approval, permit, licence, Order, filing, authorization, exemption, registration, ratification,
permission, waived reporting requirement or waived notice requirement and any related agreement or communication whatsoever issued, granted, given or otherwise made available by or under the authority
of any Governmental Authority regarding health or safety matters or under any Safety Law; 

        "Safety Law" shall mean any Applicable Legal Requirement designed to provide safe or healthy conditions for the public or workers and to
reduce safety or health hazards for the public or workers and includes all Safety Consents; 

        "Securities" has the meaning ascribed thereto in Section 8.1(u)(ii); 

        "Security" has the meaning ascribed thereto in Section 5.1; 

        "Slots Facilities" means the slots facilities to be installed and operated in the Gulfstream Facilities; 

        "Specified Loan Amount" means any time (i) prior to the Gulfstream Repayment Commencement Date, the principal amount of One Hundred
and Fifteen Million Dollars ($115,000,000) and (ii) on and after the Gulfstream Repayment Commencement Date, the aggregate principal amount of Tranche 1 then outstanding exclusive of the
amount of capitalized interest at such time and any portion of such principal amount representing deemed Advances on account of Costs as reasonably determined by the Lender; 

        "Subsequent Advance Date" means the date as defined in Section 4.4; 

        "Subsequent Advances" has the meaning ascribed thereto in Section 4.4; 

        "Substitute Aventura Security" has the meaning ascribed thereto in Section 5.2; 

        "Suitt Stipulated Lump Sum Construction Contract" means the stipulated lump sum contract (AIA A101 - 1997
Edition), dated August 2004, between Gulfstream Park Racing Association, Inc. and Suitt Construction Company, Inc.; 

        "Taxes" has the meaning ascribed thereto in Section 3.12(a); 

        "Threat of Release" shall mean a reasonable likelihood of a Release that may require action in order to prevent or mitigate damage to the
Environment that may result from Release; 

        "Title Company" has the meaning ascribed thereto in Section 4.1(r); 

21

 

        "Title Policies" means, collectively, the Gulfstream/Aventura Title Policy and the Additional Title Policy; 

        "Tranche 1" has the meaning ascribed thereto in Section 2.1; 

        "Tranche 1 Advances" means the First Advance, and Subsequent Advances under Tranche 1; 

        "Tranche 1 First Advance" has the meaning ascribed thereto in Section 4.1; 

        "Tranche 1 First Advance Date" has the meaning ascribed thereto in Section 4.1(a); 

        "Tranche 1 Interest Rate" means, in respect of Tranche 1: (a) from the date of the First Advance until the Gulfstream
Facilities Completion Date, a floating rate equal to 2.55% above MID's notional per annum cost of one month LIBOR borrowings under its principal floating rate credit facility (as designated by
MID from time to time) to the extent that MID is able to determine such rate under its floating rate credit facility, and otherwise 2.55% above MID's notional per annum cost of Base Rate borrowings
under its floating rate credit facility, in each case, compounded monthly and (b) from and after the Gulfstream Facilities Completion Date until the Gulfstream Tranche 1 Maturity Date, a
fixed rate of 10.5% per annum, compounded semi-annually; 

        "Tranche 2" has the meaning ascribed thereto in Section 2.1; 

        "Tranche 2 Advances" means Subsequent Advances under Tranche 2; 

        "Tranche 2 Arrangement Fee" has the meaning ascribed thereto in Section 4.2; 

        "Tranche 2 Conditions" has the meaning ascribed thereto in Section 4.2; 

        "Tranche 2 First Advance" has the meaning ascribed thereto under Section 4.2; 

        "Tranche 2 First Advance Date" has the meaning ascribed thereto in Section 4.2; 

        "Tranche 2 Future Advance Agreements" means, collectively, the Gulfstream/Aventura Tranche 2 Future Advance Agreement, the
Palm Meadows Training Centre Tranche 2 Future Advance Agreement and the Remington Lands Tranche 2 Future Advance Agreement; 

        "Tranche 2 Interest Rate" means, in respect of Tranche 2, a fixed rate of 10.5% per annum, compounded
semi-annually; 

        "Tranche 2 Slots Facilities Capital Budget" means the capital budget in respect of the Slots Facilities Initiative, prepared by the
Borrower and approved by the Lender; 

22

 

        "Tranche 2 Slots Facilities Contracts" means all contracts entered into by the Borrower or its agents with Persons for the supply
by such Persons of construction services or materials for the Slots Facilities or any part thereof or services or materials related thereto; 

        "Tranche 2 Slots Facilities Costs" means the Borrower's costs, not to exceed $25,750,000, in respect of the Tranche 2 Slots
Facilities Initiative; 

        "Tranche 2 Slots Facilities FF&E" means up to 516 slot machines, and the furniture, fixtures, and equipment relating
thereto; 

        "Tranche 2 Slots Facilities Holdback" has the meaning ascribed thereto in Section 2.3; 

        "Tranche 2 Slots Facilities Holdback Advance" has the meaning ascribed thereto in Section 4; 

        "Tranche 2 Slots Facilities Initiative" means: (i) the acquisition of the Tranche 2 Slots Facilities FF&E;
(ii) the preparation of the Gulfstream Facilities to permit the installation of the Tranche 2 Slots Facilities FF&E in the Gulfstream Facilities, and the installation of the Slots
Facilities FF&E in the Gulfstream Facilities, including the required capital expenditures related thereto, all as more particularly described in the Tranche 2 Slots Facilities Capital Budget;
(iii) the acquisition of all necessary licenses in respect of the installation and/or operation Slots Facilities including, without limiting the generality of the foregoing: (A) a
$3,000,000 licensing fee; and (B) a $250,000 responsible gaming fee; and (iv) start-up and training costs in respect of the Slots Facilities; 

        "Tranche 2 Slots Facilities Opening Date" means the date on which the Tranche 2 Slots Facilities shall be opened to the
public with substantial completion of the construction in respect thereof and no fewer than 500 slot machines in operation; 

        "Tranche 3" has the meaning ascribed thereto in Section 2.1; 

        "Tranche 3 Advances" means Subsequent Advances under Tranche 3; 

        "Tranche 3 Arrangement Fee" has the meaning ascribed thereto in Section 4.3; 

        "Tranche 3 Conditions" has the meaning ascribed thereto in Section 4.3; 

        "Tranche 3 First Advance" has the meaning ascribed thereto under Section 4.3; 

        "Tranche 3 First Advance Date" has the meaning ascribed thereto in Section 4.3; 

        "Tranche 3 Future Advance Agreements" means, collectively, the Gulfstream/Aventura Tranche 3 Future Advance Agreement, the
Palm Meadows Training Centre Tranche 3 Future Advance Agreement and the Remington Lands Tranche 3 Future Advance Agreement; 

23

   
        "Tranche 3 Interest Rate" means, in respect of Tranche 3, a fixed rate of 10.5% per annum, compounded
semi-annually; 

        "Tranche 3 Repayment Commencement Date" means the earlier of (i) the first day of the second month following the date on
which the Tranche 3 Slots Facilities shall be opened to the public with substantial completion of the construction in respect thereof and approximately 700 slot machines in operation;
and (ii) May 1, 2007; 

        "Tranche 3 Slots Facilities Capital Budget" means the capital budget in respect of the Tranche 3 Slots Facilities
Initiative, prepared by the Borrower and approved by the Lender; 

        "Tranche 3 Slots Facilities Contracts" means all contracts entered into by the Borrower or its agents with Persons for the supply
by such Persons of construction services or materials for the Tranche 3 Slots Facilities or any part thereof or services or materials related thereto; 

        "Tranche 3 Slots Facilities Costs" means the Borrower's costs, not to exceed $21,500,000, in respect of the Tranche 3 Slots
Facilities Initiative; 

        "Tranche 3 Slots Facilities FF&E" means up to 700 slot machines, and the furniture, fixtures, and equipment relating
thereto; 

        "Tranche 3 Slots Facilities Holdback" has the meaning ascribed thereto in Section 2.3; 

        "Tranche 3 Slots Facilities Holdback Advance" has the meaning ascribed thereto in Section 4; 

        "Tranche 3 Slots Facilities Initiative" means: (i) the acquisition of the Tranche 3 Slots Facilities FF&E;
(ii) the preparation of the Gulfstream Facilities to permit the installation of the Tranche 3 Slots Facilities FF&E in the Gulfstream Facilities, and the installation of the
Tranche 3 Slots Facilities FF&E in the Gulfstream Facilities, including the required capital expenditures related thereto, all as more particularly described in the Tranche 3 Slots
Facilities Capital Budget; and (iii) start-up and training costs in respect of the Tranche 3 Slots Facilities; 

        "Unmatured Event of Default" has the meaning ascribed thereto in Section 9.1; 

        "Voluntary Pre-Payment Notice" has the meaning ascribed thereto in Section 3.4; and 

        "Zoo Trust" means the Oklahoma City Zoological Trust. 

24

 

1.2   Time  

        All references in this Agreement and each of the other Loan Documents to a time of day shall mean Miami time, unless otherwise indicated. 

1.3   Calculation of Interest and Fees  

        All calculations of interest and fees under this Agreement and the other Loan Documents for any period (a) shall include the first day of such period and,
provided that payment is received by Lender, as the case may be, by 11:00 a.m. on the due date for payment, shall exclude the last day of such period and (b) shall be calculated on the
basis of a year of 360 days for actual days elapsed. At the written request of the Borrower, the Lender shall advise the Borrower of the floating rate of the Tranche 1 Interest Rate in
effect from time to time prior to the Gulfstream Facilities Completion Date. 

1.4   Currency  

        All dollar amounts expressed herein shall refer to the lawful currency of the United States of America. 

1.5   Governing Law  

        This Agreement shall be in accordance with and governed by the laws of the State of Florida and the laws of the United States of America applicable
therein, without reference to conflict of interest rules. 

1.6   Inconsistencies  

        In the event of any inconsistency or conflict between the terms of this Agreement and the terms of any of the Security, the terms of this Agreement
shall govern. 

1.7   Non-Business Days  

        Whenever any payment to be made hereunder shall be stated to be due or any action is required to be taken hereunder on a day which is not a Business Day, such
payments shall be made or such action shall be taken, as the case may be, on the next succeeding Business Day and in the case of the payment of any monetary amount, such extension of time shall in
such case be included for the purpose of computation of interest payable hereunder. 

1.8   Late Payments  

        If any payment on a Business Day required to be made hereunder by the Borrower is made after 11:00 a.m., such payment shall be deemed to have been made on
the next Business Day. 

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1.9   Accounting Terms  

        All accounting terms not specifically defined herein shall be construed in accordance with GAAP and, except as otherwise provided herein, all financial data and
statements submitted pursuant to this Agreement shall be prepared and all financial calculations shall be made in accordance with such principles. 

1.10 Interpretation Not Affected by Headings, Etc.  

        The division of this Agreement into Articles, Sections, Subsections, Paragraphs and Subparagraphs and the insertion of headings and an index are for convenience
of reference only and shall not affect the construction or interpretation of this Agreement. The terms "this Loan Agreement", "this Agreement", "hereof", "herein", and "hereunder" and similar
expressions refer, in respect of any period or action prior to July 22, 2005, to the Original Gulfstream Loan Agreement, in respect of any period or action during the period from and after
July 22, 2005 and prior to the Closing Date, to the Original Amended and Restated Gulfstream Loan Agreement, in respect of any period or action during the period from and after July 26,
2006 and prior to the Closing Date, to the Second Amended and Restated Gulfstream Loan Agreement, and in respect of any period or action on or after the Closing Date, to this Third Amended and
Restated Loan Agreement, and not to any particular Article, Section, Subsection, Paragraph or Subparagraph or other portion hereof and include any agreement or instrument supplementary or ancillary
hereto. 

1.11 Rules of Construction  

        Words importing the singular number only shall include the plural and vice versa. Words importing the use of any
gender shall include all genders. Words importing Persons shall include firms and corporations and vice versa. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires
otherwise (a) any definition of or reference to any agreement, instrument or other document herein (including this Agreement) shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented, restated or otherwise modified (subject to any restrictions on such amendments, supplements, restatements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such Person's successors and permitted assigns, (c) unless otherwise expressly stated, all references in these
Provisions to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, these Provisions, but all such references elsewhere in
this Agreement shall be construed to refer to this Agreement apart from these Provisions, (d) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law
or regulation as amended, modified or supplemented from time to time and (e) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

26

 

1.12 Severability  

        In the event that one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any applicable law,
the validity, legality or enforceability of the remaining provisions hereof shall not be affected or impaired thereby; provided, however, that if any provision contained herein which materially
affects the ability of the Borrower to perform its obligations hereunder and under the Security or materially affects the validity, value or enforceability of this Agreement or the Security shall be
invalid, illegal or unenforceable, the Lender may, by written notice to the Borrower, elect to terminate its obligation to make any Advances hereunder. Each of the provisions of this Agreement is
hereby declared to be separate and distinct. 

1.13 References to Remington Loan Agreement  

        All terms defined in Section 1.1 by reference to the Remington Loan Agreement shall have the respective meanings ascribed thereto in the Remington
Loan Agreement. 

1.14 Schedules  

        The following schedules are attached hereto and are incorporated in and are deemed to be an integral part of this Agreement: 

Schedule A:
Legal Description of the Aventura Lands 

Schedule B:
Legal Description of the Remington Lands 

Schedule C:
Permitted Encumbrances 

Schedule D:
Legal Description of the Palm Meadows Training Center Lands 

Schedule E:
Legal Description of the Gulfstream Lands 

ARTICLE 2

THE LOAN  

2.1   Loan Amount  

        Subject to the terms and conditions of this Agreement, the Lender agrees to lend to the Borrower an amount equal to the Loan Amount (the "Loan"). The Loan
shall be available in three tranches on the terms and conditions set out herein. The maximum principal amount of the first tranche ("Tranche 1")
of the Loan that shall be available to the Borrower shall be the Tranche 1 Loan Amount, which tranche shall be used solely for the purpose of financing the Construction Costs and the Lender's
Costs in respect thereof as herein contemplated and for no other purpose. The maximum principal amount of the second tranche ("Tranche 2") of the
Loan that shall be available to the Borrower shall be the Tranche 2 Loan Amount, which tranche shall be used solely for the purpose of financing the Tranche 2 Slots Facilities Costs, the
Tranche 2 Arrangement Fee and the Lender's Costs in respect thereof as herein contemplated and for no other purpose. The maximum principal amount of the third tranche
("Tranche 3") of the Loan that shall be available to the Borrower shall be the Tranche 3 Loan Amount, which tranche shall be used solely
for the purpose of financing the Tranche 3 Slots Facilities Costs, the Tranche 3 Arrangement Fee and the Lender's Costs in respect thereof as herein contemplated and for no
other purpose. 

27

 

        Any
Advances made and subsequently repaid under Tranches 1, 2 and/or 3 may not be reborrowed. 

2.2   Advances  

        The Borrower shall be entitled to obtain Advances under the Loan upon the following terms and conditions: 

	(a)
	the
Borrower shall have given to the Lender notice of its intention to obtain an Advance in accordance with the provisions of Sections 4.1, 4.2, 4.3 or 4.4, as the case
may be;

	(b)
	Advances
shall not occur more often than five times per month and shall be in amounts which are not less than One Hundred Thousand Dollars ($100,000) each, other than the last
Advance, which may be for a lesser amount and other than Holdback Advances, each of which shall be in an amount of not less than Fifty Thousand Dollars ($50,000);

	(c)
	the
total of all Advances made hereunder in respect of Tranche 1 shall not exceed the principal amount of One Hundred and Fifteen Million Dollars ($115,000,000) plus the Costs
relating to Tranche 1 in respect of which deemed Advances may be made pursuant to Section 3.10, exclusive of any deemed Subsequent Advances pursuant to which interest accrued and
remaining unpaid prior to the Gulfstream Facilities Completion Date is capitalized to constitute part of the Tranche 1 Loan Amount in accordance with this Agreement;

	(d)
	the
total of all Advances made hereunder in respect of Tranche 2 shall not exceed the principal amount of Twenty-Five Million Seven Hundred and Fifty Thousand
Dollars ($25,750,000) plus the Tranche 2 Arrangement Fee and the Costs relating to Tranche 2 in respect of which deemed Advances may be made pursuant to Section 3.10, exclusive of
any deemed Subsequent Advances pursuant to which interest accrued and remaining unpaid prior to the Gulfstream Repayment Commencement Date is capitalized to constitute part of the Tranche 2
Loan Amount in accordance with this Agreement;

	(e)
	the
total of all Advances made hereunder in respect of Tranche 3 shall not exceed the principal amount of Twenty-One Million Five Hundred Thousand Dollars
($21,500,000) plus the Tranche 3 Arrangement Fee and the Costs relating to Tranche 3 in respect of which deemed Advances may be made pursuant to Section 3.10, exclusive of any
deemed Subsequent Advances pursuant to which interest accrued and remaining unpaid prior to the Tranche 3 Repayment Commencement Date is capitalized to constitute part of the Tranche 3
Loan Amount in accordance with this Agreement; 

28

 

	(f)
	the
Borrower shall have satisfied, on or before the date of the First Advance, the conditions set out in Section 4.1 and have complied with the requirements of
this Section;

	(g)
	the
Borrower shall have satisfied, on or before the date of any Subsequent Advance, the conditions set out in Section 4.4 and shall have complied with the requirements
of this Section for each Subsequent Advance;

	(h)
	the
Borrower shall have satisfied, on or before the date of the Tranche 3Advances, the conditions set out in Sections 4.3;

	(i)
	no
Unmatured Event of Default or Event of Default shall have occurred and be continuing; and

	(j)
	no
Advances under Tranche 1 shall be made subsequent to December 31, 2006, no Advances under Tranche 2 shall be made subsequent to June 30, 2007 and no
Advances under Tranche 3 shall be made subsequent to one year following the Tranche 3 Repayment Commencement Date. 

2.3   Holdbacks  

        Each Advance (other than a Holdback Advance) shall be subject to a holdback by the Lender in an amount determined by the Lender, acting reasonably, and taking
into account Applicable Legal Requirements, and, in respect of Tranche 1 Advances, the Construction Contracts and any other construction contracts relating to the Reconstruction (each such
holdback in respect of Tranche 1 being referred to herein as a "Reconstruction Holdback"), in respect of Tranche 2 Advances, the
Tranche 2 Slots Facilities Contracts and any other construction contracts relating to the Tranche 2 Slots Facilities (each such holdback in respect of Tranche 2 being referred to
herein as a "Tranche 2 Slots Facilities Holdback"), in respect of Tranche 3 Advances, the Tranche 3 Slots Facilities Contracts and
any other construction contracts relating to the Tranche 3 Slots Facilities (each such holdback in respect of Tranche 3 being referred to herein as a
"Tranche 3 Slots Facilities Holdback") all of which holdbacks shall be advanced to the Borrower in accordance with the provisions of
Sections 2.2 and 2.4. 

2.4   Holdback Advances  

	(a)
	Tranche 1

	(i)
	Upon
notification to the Lender by the Cost Consultant of the expiry of all applicable lien periods that relate to the Reconstruction or any discrete portion of the Reconstruction or
any contract or subcontract relating to the Reconstruction, the Borrower shall be entitled to obtain, as an Advance (herein called a "Reconstruction Holdback
Advance"), the amounts held back pursuant to Section 2.3 in respect of such Reconstruction (or any discrete portion thereof or any contract or subcontract
relating thereto, as applicable) but only upon and in compliance with the following terms and conditions: 

29

 

	(A)
	the
Borrower shall have delivered a Request for Advance at least five Business Days prior to the date of the Reconstruction Holdback Advance which Request for Advance shall reflect
compliance with this Section 2.4(a) and shall otherwise be complete and acceptable to the Lender;

	(B)
	the
Borrower shall, on or before the date of the Advance in question, have satisfied the conditions set out in Section 4.3 and no Unmatured Event of Default or Event of
Default shall have occurred and be continuing;

	(C)
	there
shall not be any claims for Encumbrances (other than Permitted Encumbrances) registered against title to the applicable Property nor shall the Lender have received notice of any
such claim and the Borrower shall have delivered to the Lender statutory declarations or lien waivers, in form and terms acceptable to the Lender, from all Persons entitled to payment pursuant to the
Construction Contract in question to the effect that, subject to receipt of the holdback amounts in question, they have been fully paid for the work completed to the date thereof and waiving any
rights they may have against the Lender in respect of non-payment for such work to date; and

	(D)
	payment
of a Reconstruction Holdback Advance shall only be made contemporaneously with the payment of another Advance other than another Reconstruction Holdback Advance or a deemed
Advance referred to in Section 3.10; provided that this clause (a)(i)(D) shall not apply to any Reconstruction Holdback Advance to be made after the completion of the Reconstruction.

	(b)
	Tranche 2

	(i)
	Upon
notification to the Lender by the Cost Consultant of the expiry of all applicable lien periods that relate to the Tranche 2 Slots Facilities or any discrete portion of the
Tranche 2 Slots Facilities or any contract or subcontract relating to the Tranche 2 Slots Facilities, the Borrower shall be entitled to obtain, as an Advance (herein called a
"Tranche 2 Slots Facilities Holdback Advance"), the amounts held back pursuant to Section 2.3 in respect of such Tranche 2 Slots
Facilities (or any discrete portion thereof or any contract or subcontract relating thereto, as applicable) but only upon and in compliance with the following terms and conditions: 

30

 

	(A)
	the
Borrower shall have delivered a Request for Advance at least five Business Days prior to the date of the Tranche 2 Slots Facilities Holdback Advance which Request for
Advance shall reflect compliance with this Section 2.4(b) and shall otherwise be complete and acceptable to the Lender;

	(B)
	the
Borrower shall, on or before the date of the Advance in question, have satisfied the conditions set out in Section 4.4 and no Unmatured Event of Default or Event of
Default shall have occurred and be continuing;

	(C)
	there
shall not be any claims for Encumbrances (other than Permitted Encumbrances) registered against title to the applicable Property nor shall the Lender have received notice of any
such claim and the Borrower shall have delivered to the Lender statutory declarations or lien waivers, in form and terms acceptable to the Lender, from all Persons entitled to payment pursuant to the
Tranche 2 Slots Facilities Contract in question to the effect that, subject to receipt of the holdback amounts in question, they have been fully paid for the work completed to the date thereof
and waiving any rights they may have against the Lender in respect of non-payment for such work to date; and

	(D)
	payment
of a Tranche 2 Slots Facilities Holdback Advance shall only be made contemporaneously with the payment of another Advance other than another Tranche 2 Slots
Facilities Holdback Advance or a deemed Advance referred to in Section 3.10; provided that this clause 2.4(b)(i)(D) shall not apply to any Tranche 2 Slots Facilities Holdback
Advance to be made after the completion of the Tranche 2 Slots Facilities.

	(c)
	Tranche 3

	(i)
	Upon
notification to the Lender by the Cost Consultant of the expiry of all applicable lien periods that relate to the Tranche 3 Slots Facilities or any discrete portion of the
Tranche 3 Slots Facilities or any contract or subcontract relating to the Tranche 3 Slots Facilities, the Borrower shall be entitled to obtain, as an Advance (herein called a
"Tranche 3 Slots Facilities Holdback Advance"), the amounts held back pursuant to Section 2.3 in respect of such Tranche 3 Slots
Facilities (or any discrete portion thereof or any contract or subcontract relating thereto, as applicable) but only upon and in compliance with the following terms and conditions:

	(A)
	the
Borrower shall have delivered a Request for Advance at least five Business Days prior to the date of the Tranche 3 Slots Facilities Holdback Advance which Request for
Advance shall reflect compliance with this Section 2.4(c) and shall otherwise be complete and acceptable to the Lender; 

31

 

	(B)
	the
Borrower shall, on or before the date of the Advance in question, have satisfied the conditions set out in Section 4.4 and no Unmatured Event of Default or Event of
Default shall have occurred and be continuing;

	(C)
	there
shall not be any claims for Encumbrances (other than Permitted Encumbrances) registered against title to the applicable Property nor shall the Lender have received notice of any
such claim and the Borrower shall have delivered to the Lender statutory declarations or lien waivers, in form and terms acceptable to the Lender, from all Persons entitled to payment pursuant to the
Tranche 3 Slots Facilities Contract in question to the effect that, subject to receipt of the holdback amounts in question, they have been fully paid for the work completed to the date thereof
and waiving any rights they may have against the Lender in respect of non-payment for such work to date; and

	(D)
	payment
of a Tranche 3 Slots Facilities Holdback Advance shall only be made contemporaneously with the payment of another Advance other than another Tranche 3 Slots
Facilities Holdback Advance or a deemed Advance referred to in Section 3.10; provided that this clause 2.4(c)(i)(D) shall not apply to any Tranche 3 Slots Facilities Holdback
Advance to be made after the completion of the Tranche 3 Slots Facilities. 

2.5   Advance Payments  

        The proceeds of all Advances shall be paid to the Borrower by way of deposit into the Borrower's current account as specified to the Lender in writing from time
to time, provided that the Lender may, upon the direction of the Borrower, pay all or part of such proceeds directly to a third party to the extent of any Construction Costs, Tranche 2 Slots
Facilities Costs or Tranche 3 Slots Facilities Costs, as the case may be, owed to such party which are the subject of such Advance. At its discretion, the Lender may make payment of all or part
of such proceeds directly to a third party where necessary in order to preserve the priority of the Security. The Borrower acknowledges that all proceeds advanced hereunder are subject to the terms
hereof, including the restrictions set out in Section 8.1(u). 

2.6   Evidences of Advances  

        The Lender shall maintain a book of account evidencing the indebtedness of the Borrower resulting from each Advance made from time to time and the amounts of
principal, interest and other fees payable and paid, and the amount of interest accrued in accordance with the terms hereof, from time to time hereunder. In any legal action or proceeding in respect
of this Agreement, the entries made in such book shall be in the absence of manifest error conclusive evidence of the amounts of the obligations of the Borrower therein recorded. 

32

 

2.7   Term  

        Unless otherwise accelerated pursuant to the Loan Documents (as hereinafter defined), Tranche 1 shall mature on the date on the tenth anniversary
date of the Gulfstream Facilities Completion Date (the "Gulfstream Tranche 1 Maturity Date") and Tranche 2 and Tranche 3
shall mature on December 31, 2011 (the "Gulfstream Tranche 2 and Tranche 3 Maturity Date"). 

2.8   Cost Consultant  

        In connection with the transactions contemplated hereunder and under the other Loan Documents, the Lender shall have the right (but not the duty) to employ
such consultants (hereinafter a "Cost Consultant"), as it may deem appropriate from time to time, to (a) review and make recommendations
regarding the work to be performed pursuant to the Construction Contracts, the Tranche 2 Slots Facilities Contracts and the Tranche 3 Slots Facilities Contracts, (b) inspect the
Gulfstream Property from time to time to ensure that the Gulfstream Facilities are being duly reconstructed in accordance with the Construction Contracts and the Loan Documents and the
Tranche 2 Slots Facilities and the Tranche 3 Slots Facilities are being duly constructed in accordance with the Tranche 2 Slots Facilities Contracts and the Tranche 3 Slots
Facilities Contracts and the Loan Documents, (c) review and make recommendations regarding any elements of a request for disbursement, (d) obtain information and documentation respecting
the reconstruction of the Gulfstream Facilities, the acquisition of the Tranche 2 Slots Facilities FF&E and the Tranche 3 Slots Facilities FF&E, and the construction of the
Tranche 2 Slots Facilities and the Tranche 3 Slots Facilities, and attend meetings respecting the reconstruction of the Gulfstream Facilities, the acquisition of the Tranche 2
Slots Facilities FF&E and the Tranche 3 Slots Facilities FF&E, and the construction of the Tranche 2 Slots Facilities and the Tranche 3 Slots Facilities and formulate reports for
the Lender pertaining to the reconstruction of the Gulfstream Facilities, the acquisition of the Tranche 2 Slots Facilities FF&E and the Tranche 3 Slots Facilities FF&E, and the
construction of the Tranche 2 Slots Facilities and the Tranche 3 Slots Facilities and (e) perform such other construction-related services with respect to the Gulfstream Property
as the Lender from time to time may require, all solely on behalf of the Lender. The reasonable costs and disbursements of such consultants shall be paid by the Borrower upon demand from the Lender,
which demand shall be accompanied by an invoice from the Cost Consultant or the Lender. Neither the Lender nor any Cost Consultant shall be deemed to have assumed any responsibility to, or be liable
to, the Borrower or any Guarantor with respect to any actions taken or omitted by the Lender or such consultants pursuant to this Section. The Borrower shall be entitled to receive, at its expense,
copies of all reports of the Cost Consultant, but shall not be entitled to rely on any statements or actions of the Cost Consultant or any of the Lender's other consultants. Neither the Cost
Consultant nor any other consultant retained by the Lender shall have the power or authority to grant any consents or approvals or bind the Lender in any manner, absent written confirmation from the
Lender of the accuracy of the information conveyed by such consultant to the Borrower. Any action or determination referred to hereunder as being taken by the Cost Consultant may, at the Lender's
election in its sole and absolute discretion, instead be taken by the Lender. In the event that at any time there shall be no Cost Consultant in
place, then all actions or determinations herein specified to be taken or made by the Cost Consultant shall be taken or made by the Lender. 

33

 
ARTICLE 3  

 PAYMENTS AND INTEREST  

3.1   Repayment  

        Principal and interest (including capitalized interest) in respect of Tranche 1 shall, subject to the repayment deferral contemplated below, be payable
monthly in advance in 12 equal blended monthly instalments per annum of principal and interest (except as otherwise herein provided, based on a 25-year amortization commencing on
the Gulfstream Facilities Completion Date) without demand from and after January 1, 2007 (the "Gulfstream Repayment Commencement Date"). 

        Principal
and interest (including capitalized interest) in respect of Tranche 2 shall, subject to the repayment deferral contemplated below, be payable monthly in advance in
12 equal blended monthly instalments per annum of principal and interest (except as otherwise herein provided, based on a 25-year amortization commencing on the Gulfstream Repayment
Commencement Date) without demand from and after the Gulfstream Repayment Commencement Date. 

        Principal
and interest (including capitalized interest) in respect of Tranche 3 shall, subject to the repayment deferral contemplated below, be payable monthly in advance in
12 equal blended monthly instalments per annum of principal and interest (except as otherwise herein provided, based on a 25-year amortization commencing on the Tranche 3
Repayment Commencement Date) without demand from and after the Tranche 3 Repayment Commencement Date. 

        Without
limiting the generality of Sections 3.4 and 9.2, payment of principal and interest payable under this Agreement by the Borrower shall commence without demand on the
Gulfstream Repayment Commencement Date, in respect of Tranche 1 and Tranche 2, and the Tranche 3 Repayment Commencement Date, in respect of Tranche 3. 

        The
Borrower shall make all payments due hereunder by payments to the Lender at a bank account specified by the Lender from time to time. 

        On
the Gulfstream Tranche 1 Maturity Date, the Borrower shall pay to the Lender the entire amount then owing under Tranche 1 (including without duplication, all accrued and
unpaid interest, fees and other amounts owing), and the Gulfstream Tranche 1 Unamortized Amount (including any interest accrued and added to principal) as of such date. 

        On
the Gulfstream Tranche 2 and Tranche 3 Maturity Date, the Borrower shall pay to the Lender: (i) the entire amount then owing under Tranche 2 and
Tranche 3 (including without duplication, all accrued and unpaid interest, fees and other amounts owing); (ii) the Gulfstream Tranche 2 Unamortized Amount (including any interest
accrued and added to principal) as of such date; and (iii) the Gulfstream Tranche 3 Unamortized Amount (including any interest accrued and added to principal) as of such date. 

34

 

3.2   Limitation on Prepayment  

        The Borrower shall have no right to pre-pay or otherwise repay the amounts owing under this Agreement except in accordance with the provisions of
Section 3.4. 

3.3   Gulfstream Loan Consent and Waiver Agreement  

        The parties hereby agree that, notwithstanding the amendment and restatement of the Second Amended and Restated Gulfstream Loan Agreement contained herein, the
Gulfstream Loan Consent and Waiver Agreement continues to be in full force and effect in accordance with its terms. 

3.4   Prepayment  

        (a)    Repayment of the Loan    

        The
Borrower shall have the right to pre-pay the Loan in full, provided that: (i) the Borrower pays the principal amount of the Loan then outstanding (together with,
but without limitation, all accrued and unpaid interest, fees and other Indebtedness owing, (including any interest capitalized and added to the principal) as of such date)
(the "Pre-Payment Amount") together with the Pre-Payment Make-Whole Amount; and (ii) the Borrower
cancels any undrawn portion of the Loan. Notice of such voluntary pre-payment (a "Pre-Payment Notice") shall be given by
the Borrower (which notice shall be irrevocable when given) to the Lender not later than 30 Business Days prior to the date of such pre-payment, specifying the date of such
pre-payment (the "Pre-Payment Date"). 

        The
"Pre-Payment Make-Whole Amount" is the amount that, if invested by the Lender on the Pre-Payment
Date for a term equal to the time period from the Pre-Payment Date to the Gulfstream Tranche 1 Maturity Date at a rate equal to the U.S. Government Treasury Yield plus
150 basis points as of the Pre-Payment Date, would yield an amount necessary to provide the Lender with a yield on the Specified Loan Amount such that the aggregate of the
Pre-Payment Make-Whole Amount paid and the earned income would equal the interest that the Lender would have received under the Loan from the Pre-Payment Date to
the Gulfstream Tranche 1 Maturity Date. For the purposes hereof, "U.S. Government Treasury Yield" means a rate of interest per annum equal to the weekly average yield to maturity of
United States Treasury Notes that have a constant maturity that corresponds to the remaining term to maturity of the Loan as of the Pre-Payment Date, calculated to the nearest
1/12th of a year (the "Remaining Term"). The Treasury Yield will be determined as of the third Business Day immediately preceding the
Pre-Payment Date. The weekly average yields of United States Treasury Notes will be determined by reference to the most recent statistical release published by the Federal Reserve
Bank of New York and designated "H.15(519) Selected Interest Rates" or any successor release (the "H.15 Statistical
Release"). If the H.15 Statistical Release sets forth a weekly average yield for United States Treasury Notes having a constant maturity that is the same as the
Remaining Term, then the Treasury Yield will be equal to such weekly average yield. In all other cases, the Treasury Yield will be calculated by interpolation, on a straight-line basis,
between the weekly average yields on the United States Treasury Notes that have a constant maturity closest to and greater than the remaining term and the United States Treasury Notes
that have a constant maturity closest to and less than the Remaining Term (in each case as set forth in the H.15 Statistical Release). Any weekly average yields so calculated by
interpolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200 of 1% or above being rounded upward. If weekly average yields for United States Treasury Notes are
not available in the H.15 Statistical Release or otherwise, then the Treasury Yield will be calculated by interpolation of comparable rates selected by the Independent Investment Banker. For
purposes of this Section 3.4, "Independent Investment Banker" means a primary United States Government securities dealer appointed by the
Lender after consultation with the Borrower. 

35

 

        On
receipt of full payment of the Pre-Payment Amount plus the Pre-Payment Make-Whole Amount (plus all costs incurred by the Lender in connection with
such pre-payment), which amounts will be paid together by the Borrower on the date set forth in the Pre-Payment Notice (which date will be no less than 15 days and no
more than 30 days after the date on which the Lender receives the Pre-Payment Notice), the Lender will promptly execute and deliver (or cause the Administrative Agent to
execute and deliver) a full release and discharge of the Security held by them with respect to the transactions and obligations contemplated herein and complete or authorize discharges of all security
filings made in respect of same, but in no event shall such release operate as a release of any indemnities which are stated to survive a termination and/or release of any such security
or obligations. 

        (b)    Repayment of Tranche 2    

        In
addition to the Borrower's right to pre-repay the Loan in full, as set out in Section 3.4(a) above, the Borrower shall have the right to pre-pay
Tranche 2, in whole or in part, without payment of any make-whole amount and without exercising its right under Section 3.4(a) above. Notice of such voluntary
pre-payment (a "Tranche 2 Pre-Payment Notice") shall be given by the Borrower (which notice shall be irrevocable
when given) to the Lender not later than 30 Business Days prior to the date of such pre-payment, specifying the date of such pre-payment
(a "Tranche 2 Pre-Payment Date"). 

        (c)    Repayment of Tranche 3    

        In
addition to the Borrower's right to pre-repay the Loan in full, as set out in Section 3.4(a) above, the Borrower shall have the right to pre-pay
Tranche 3, in whole or in part, without payment of any make-whole amount and without exercising its right under Section 3.4(a) above. Notice of such voluntary
pre-payment (a "Tranche 3 Pre-Payment Notice") shall be given by the Borrower (which notice shall be irrevocable
when given) to the Lender not later than 30 Business Days prior to the date of such pre-payment, specifying the date of such pre-payment
(a "Tranche 3 Pre-Payment Date"). 

3.5   Interest  

        Subject to Section 3.8, (a) all Tranche 1 Advances, including accrued and unpaid interest, fees, expenses and Tranche 1 Lender's
Costs, shall bear interest, before and after default, at the Tranche 1 Interest Rate, with interest on overdue interest at the rate as was applicable immediately prior to any arrears,
(b) all Tranche 2 Advances, including accrued and unpaid interest, fees, expenses and Tranche 2 Lender's Costs, shall bear interest, before and after default, at the
Tranche 2 Interest Rate, with interest on overdue interest at the rate as was applicable immediately prior to any arrears, and (c) all Tranche 3 Advances, including accrued and
unpaid interest, fees, expenses and Tranche 3 Lender's Costs, shall bear interest, before and after default, at the Tranche 3 Interest Rate, with interest on overdue interest at the rate
as was applicable immediately prior to any arrears. 

36

 

        Interest
shall accrue daily, be calculated in accordance with Section 1.3 and be due and payable in accordance with Section 3.1; provided, however, that:
(a) any interest payable in respect of Tranche 1 accruing prior to the Gulfstream Repayment Commencement Date shall be capitalized and added to the then outstanding principal amount of
Tranche 1 on each Interest Date, in which event the interest amount so capitalized shall be treated as principal for all purposes; (b) any interest payable in respect of Tranche 2
accruing prior to the Gulfstream Repayment Commencement Date shall be capitalized and added to the then outstanding principal amount of Tranche 2 on each Interest Date, in which event the
interest amount so capitalized shall be treated as principal for all purposes; (c) any interest payable in respect of Tranche 3 accruing prior to the Tranche 3 Repayment
Commencement Date shall be capitalized and added to the then outstanding principal amount of Tranche 3 on each Interest Date, in which event the interest amount so capitalized shall be treated
as principal for all purposes; (d) any interest accruing in respect of (i) Tranche 1 and/or Tranche 2 from and including the Gulfstream Repayment Commencement Date and/or
(ii) Tranche 3 from and including the Tranche 3 Repayment Commencement Date shall accrue daily, be calculated in accordance with Section 1.3, be compounded
semi-annually and be due and payable commencing on the Gulfstream Repayment Commencement Date, in respect of Tranche 1 and Tranche 2, and on the Tranche 3 Repayment
Commencement Date, in respect of Tranche 3, in accordance with the terms set out in Section 3.1. 

3.6   Unwinding Costs  

        The Borrower shall, from time to time, indemnify the Lender and hold it harmless from and against any and all costs, losses, liabilities or expenses, including
losses of profits, whether on account of interest paid by the Lender to lenders of funds borrowed by it or depositors of funds deposited with it to make or maintain any Advance which it may suffer or
incur as a result of any failure by the Borrower to borrow any funds after requesting an Advance (except where such failure is the result of the refusal of the Lender to make such funds available
where the Borrower is otherwise entitled to borrow such funds hereunder). The obligations of the Borrower under this Section 3.6 shall survive the payment and performance of the Indebtedness,
liabilities and obligations of the Borrower under, and the termination and release by the Lender of, this Agreement and the other Loan Documents. 

3.7   Application of Expropriation Proceeds  

        Upon the lawful expropriation or condemnation of the whole or any portion of any of the Properties, the proceeds of such expropriation or condemnation, after
deducting amounts required to satisfy the interests of Permitted Encumbrances, up to but not exceeding the amount of the Loan outstanding at the time of the expropriation or condemnation shall be paid
immediately over to the Lender, which shall not be considered a pre-payment. The proceeds of such expropriation or condemnation may be applied by the Lender in repayment of the principal
amount of the Loan then outstanding (without payment of a Pre-Payment Make Whole Amount or otherwise cancelling any undrawn portion of the Loan) in accordance with the provisions hereof. 

37

 

3.8   Interest on Fees and Other Charges  

        All fees and other charges or amounts outstanding in respect of the Loan after demand, maturity, default or judgment owing to the Lender shall bear interest at a
rate per annum equal to the Tranche 2 Interest Rate (unless Tranche 2 has been repaid in full prior to such demand, maturity, default or judgment, in which event such fees and other
charges or amounts outstanding in respect of the Loan after demand, maturity, default or judgment owing to the Lender shall bear interest at a rate per annum equal to the Tranche 1 Interest
Rate). Such interest shall be determined daily, payable on demand and compounded monthly in arrears on the last day of each calendar month. 

3.9   Gulfstream Excess Cash Flow Sweep  

        From and including the date of this Agreement to and including the Gulfstream Excess Cash Flow Sweep Termination Date, the Borrower shall be required to pay
(the "Gulfstream Excess Cash Flow Sweep") to the Lender, on or before the 50th business day following the end of each applicable fiscal
year, an amount equal to 75% of Gulfstream Excess Cash Flow for application firstly against the principal outstanding under Tranche 2 and, in the event that Tranche 2 has been repaid in
full, against Tranche 3. 

3.10 Costs, Expenses, Etc.  

        The Borrower agrees that all Costs (including, without limitation, Tranche 1 Pre-Advance Expenses, Tranche 2 Pre-Advance
Expenses and Tranche 3 Pre-Advance Expenses) incurred by the Lender, including in connection with the preparation, execution, delivery and amendment of this Agreement, the Security,
any other Loan Documents and/or the Lender's due diligence, including legal, accounting, environmental and other professional fees and expenses, shall be for the account of the Borrower, and
(a) provided that there has not occurred an Event of Default or Unmatured Event of Default which is continuing, and provided that such amounts are incurred prior to the Gulfstream Repayment
Commencement Date, shall be deemed for all purposes to have been paid through deemed Advances by the Lender to Borrower under this Agreement and (b) provided that such amounts are incurred on
and after the Gulfstream Repayment Commencement Date or prior to such date if an Event of Default has occurred and is continuing, shall (unless the Lender, in its sole discretion, agrees in writing
with the Borrower that such amounts shall be deemed for all purposes to have been paid through deemed Advances by the Lender to Borrower under this Agreement) be paid by the Borrower to the Lender
promptly following receipt of an invoice therefor. The Borrower further agrees to promptly pay following receipt of an invoice therefore all such reasonable Costs incurred by the Lender, and all such
Costs incurred by the Lender in connection with the underwriting, approval, documentation, modification, workout, collection or enforcement of the Loan or any of the Loan Documents
(as applicable), including, without limitation, all fees and expenses, including attorneys' fees and expenses incurred by the Lender in the interpretation and enforcement of its rights
hereunder and under the Loan Documents, including the interpretation and enforcement of any of the Construction Contracts by the Lender, and all such Costs in respect of Tranche 1 shall be
included as additional indebtedness bearing interest at the Tranche 1 Interest Rate set forth hereunder and in the Gulfstream Note until paid, all such Costs in respect of Tranche 2
shall be included as additional indebtedness bearing interest at the Tranche 2 Interest Rate set forth hereunder and in the Gulfstream Note until paid, and all such Costs in respect of
Tranche 3 shall be included as additional indebtedness bearing interest at the Tranche 3 Interest Rate set forth hereunder and in the Gulfstream Note until paid. For the purposes hereof,
"Costs" means all reasonable expenditures and expenses which may be paid or incurred by or on behalf of the Lender, including repair costs, payments to
remove or protect against liens, attorneys' (primary and local) and legal fees and costs (including, but not limited to, all appellate level and post-judgment proceedings), receivers'
fees, appraisers' fees, engineers' fees, accountants' fees, independent consultants' fees (including environmental and insurance consultants), all reasonable costs and expenses incurred in connection
with any of the foregoing, the Lender's out-of-pocket costs and expenses related to any audit or inspection of the Properties, outlays for documentary and expert evidence,
stenographers' charges, documentary transfer and stamp taxes, intangible taxes, escrow fees, publication costs, and costs (which may be estimates as to items to be expended after entry of an order or
judgment) for procuring all such abstracts of title, title searches and examination, title insurance policies, and similar data and assurances with respect to title as the Lender may deem reasonably
necessary either to prosecute any action or to evidence to bidders at any sale of any collateral the true condition of the title to, or the value of, such collateral. "Costs" shall also include the
reasonable fees and expenses of any of the Lender's consultants retained by the Lender pursuant to the terms of this Agreement. Following the Gulfstream Facilities Completion Date, in the event that
the Borrower shall at any time fail to remit payments of any such Costs to the Lender within 30 days of the Lender's delivery of an invoice therefor, then the Lender reserves the right, at any
time(s) in the future, to require the Borrower to deposit with the Lender an amount of cash equal to the estimated Costs to be incurred by the Lender (a "Cost
Retainer") on account of any pending matter which may result in Costs being incurred by the Lender which the Borrower is responsible to pay to the Lender hereunder. In such an
event, the Lender shall have the right to require a Cost Retainer prior to being obligated to take any action required of the Lender under the Loan Documents. Upon written request from the Borrower,
the Lender shall provide to the Borrower an accounting as to the receipt and expenditure of each Cost Retainer delivered to the Borrower. 

38

 

3.11 Maximum Interest Rate  

        Notwithstanding anything to the contrary contained herein in the event that the Tranche 1 Interest Rate, the Tranche 2 Interest Rate, the
Tranche 3 Interest Rate exceeds the maximum rate of interest allowed by applicable law, as amended from time to time, in any interest period during the term of the Loan, only the maximum rate
of interest allowed shall then be charged but thereafter in any interest period or periods during which the rate is less than the maximum rate allowed by applicable law, as amended from time to time,
the Tranche 1 Interest Rate, the Tranche 2 Interest Rate and/or the Tranche 3 Interest Rate, as the case may be, shall be increased so that the Lender may collect interest in such
amount as may have been charged pursuant to the terms of the Gulfstream Note, but which was not charged because of the limitation imposed by law. It is the intent of the parties hereto that in no
event shall the amount of interest due or payment in the nature of interest payable hereunder exceed the maximum rate of interest allowed by applicable law, as amended from time to time, and in the
event any such payment is paid by the Borrower or received by the Lender, then such excess sum shall be credited as a payment of principal, unless the Borrower shall notify the Lender, in writing,
that the Borrower elects to have such excess sum returned to it forthwith. The Lender may, in determining the maximum rate of interest allowed under applicable law, as amended from time to time, take
advantage of: (i) the rate of interest permitted by Section 655.56, Florida Statutes, by reason of both Section 687.12 Florida Statutes ("Interest rates; parity among licensed
lenders or creditors") and 12 United States Code, Sections 85 and 86, and (ii) any other law, rule, or regulation in effect from time to time, available to the
Lender which exempts the Lender from any limit upon the rate of interest it may charge or grants to Lender the right to charge a higher rate of interest than that allowed by Florida Statutes,
Chapter 687. 

39

 

3.12 Payments Free of Withholding Taxes  

        (a)   All
payments required to be made by the Borrower hereunder shall be made to the Lender free and clear of and without deduction for any and all present and future taxes
(other than income taxes payable by the Lender), withholdings, levies, duties and other governmental charges ("Taxes") with the exception of any Taxes
payable by reason of the Lender or any Permitted Lender Assignee being a non-resident of the United States of America. Upon request by the Lender, the Borrower shall furnish to the
Lender a receipt for any Taxes paid by the Borrower pursuant to this Section 3.12 or, if no Taxes are payable with respect to any payment required to be made by the Borrower hereunder, either a
certificate from each appropriate taxing authority or an opinion of counsel acceptable to the Lender, in either case stating that such payment is exempt from or not subject to Taxes. If any Taxes are
paid or payable by the Lender, other than Taxes which were payable solely by reason of the Lender becoming a non-resident of the United States of America or the assignment by the
Lender, at a time when no demand had been made by the Lender hereunder or, if demand has been made, the time period within which the Borrower must respond to such demand has not expired, of any of its
rights hereunder or under the Security to a Person that was a non-resident of the United States of America, the Borrower will, upon demand by the Lender, and whether or not such
Taxes shall be correctly or legally asserted, indemnify the Lender for such payments, together with any interest, penalties and expenses in connection therewith plus interest thereon at the applicable
rate under the Loan, as the case may be (calculated as if such payments constituted overdue amounts of principal as of the date of making such payments). In the event that any such Taxes paid by the
Lender and reimbursed by the Borrower are incorrectly or illegally asserted, the Lender shall, at the request and expense of the Borrower, cooperate with the Borrower in order to enable the Borrower
to obtain a payment of such Taxes. The obligations of the Borrower under this Section 3.12 shall survive the payment and performance of the Indebtedness, liabilities and obligations of the
Borrower under, and the termination and release by the Lender of, this Agreement and the other Loan Documents. 

        (b)   The
Lender shall indemnify and save the Borrower harmless from and against any Loss arising by reason of the Lender or any Permitted Lender Assignee being a
non-resident of the United States of America, including, without limitation, the loss of any deductions or credits in respect of Taxes relating to interest paid pursuant to
this Agreement. 

40

   3.13 Concurrent Exercise of Prepayment Rights  

        Notwithstanding anything to the contrary in Section 3.4, the parties agree that, in the event the Remington Loan Agreement shall be in effect, it is a
condition to the exercise by the Borrower of its prepayment rights under Section 3.4(a) that the Remington Guarantor exercise its prepayment rights under Section 3.4 of the Remington
Loan Agreement concurrently and that any amounts payable hereunder and thereunder as a result of such concurrent exercise of prepayment rights are due and payable, and are paid, on the
same day. 

ARTICLE 4

ADVANCES UNDER THE LOAN  

4.1   Tranche 1 First Advance  

        The Borrower shall be entitled to obtain the first Advance under Tranche 1 (herein called the "Tranche 1 First
Advance") upon, and only in compliance with the following terms and upon satisfaction of the following conditions, all in form and substance satisfactory to the Lender in its
sole discretion: 

	(a)
	the
Tranche 1 First Advance shall occur upon a date (herein called the "Tranche 1 First Advance Date") determined by the
Borrower, provided that the Borrower shall have delivered to the Lender a complete and accurate Request for Advance, which Request for Advance shall reflect compliance by the Borrower with the
provisions of this Section 4.1 and, among other things, shall contain the certificate of a senior officer of the Borrower which shall:

	(i)
	certify
as to the aggregate amount of Construction Costs paid or incurred and payable by the Borrower at the date thereof which are the subject of the Request for
Advance in question;

	(ii)
	show
any construction lien holdback;

	(iii)
	certify
that all such Construction Costs are in accordance with the budget and Plans and that the amount remaining to be advanced under the Loan for the Reconstruction
is not less than the remaining Construction Costs that will be required to achieve completion of the Reconstruction; and

	(iv)
	certify
that, to the best of such Person's knowledge, all construction to the date of the certificate is in material compliance with municipal by-laws, all
other governmental requirements, the issued building permits and the Plans, and that there are no material infractions in respect thereof whatsoever. 

Such
certificate, as part of the Request for Advance, shall be supported by evidence satisfactory to the Lender, acting reasonably, and, if requested by the Lender, shall be accompanied by receipts,
invoices, where available and where such costs have not yet been paid, or other satisfactory evidence for the payment of all Construction Costs forming part of the Advance requested, which shall be
verified by and acceptable to the Lender. In addition, the Request for Advance shall be accompanied by: (a) copies of all lien waivers or releases for all lienable work performed on the
Gulfstream Property and paid for with the proceeds of the prior disbursement or otherwise (all such waivers or releases to be in such form as is reasonably required by Lender),
(b) copies of all contractor's affidavits as to payment of work to the date and the Borrower's affidavit as to such work as is not covered by the Construction Contracts, each together with
supporting documentation evidencing to the Lender's satisfaction payment of all Construction Costs to date and funded under the Loan, (c) a report in form and content satisfactory to the Lender
from the Cost Consultant, and (d) such other documents supporting the Request for Advance as the Lender may reasonably request; 

41

 

	(b)
	the
Tranche 1 First Advance shall include an amount equal to the Lender's Tranche 1 Pre-Advance Expenses (as determined by the Lender) that have been
invoiced to the Lender prior to the date of the Tranche 1 First Advance, and the cash portion of such Tranche 1 First Advance shall be in an amount which does not exceed the value of the
work in place for the Reconstruction, as determined by the Cost Consultant, provided that the amount remaining to be advanced under the Loan for the Reconstruction shall never be less than the
remaining Construction Costs that will be required to achieve completion of the Reconstruction, as estimated by the Cost Consultant;

	(c)
	the
Borrower shall have made available to the Lender true copies, where available, or otherwise photocopies of all Construction Contracts;

	(d)
	the
Borrower shall have delivered to the Lender: (i) an acknowledgement from Suitt Construction Company, Inc. concerning the status of the Suitt Stipulated Lump Sum
Construction Contract; and (ii) an acknowledgement from Vecellio Group, Inc. concerning the status of the Ranger Stipulated Lump Sum Construction Contract, in each case in form and
substance satisfactory to the Lender;

	(e)
	the
Borrower shall have made available to the Lender certified copies of their incorporating documents and shall have delivered to the Lender incumbency certificates with respect to
the officers of the Borrower and the Guarantors signing this Agreement and the Security;

	(f)
	the
Borrower shall have delivered to the Lender resolutions authorizing the Loan and any documents to be provided pursuant to the provisions hereof, and all documents evidencing any
necessary corporate action of the Borrower certified by appropriate officers thereof;

	(g)
	the
representations and warranties set forth in Article 6 shall be true and accurate in all respects as of Tranche 1 First Advance Date, and the Borrower shall have
delivered to the Lender a certificate of senior officers of each of the Borrower to the foregoing effect; 

42

 

	(h)
	the
Borrower shall have made available to the Lender true copies of all of the Material Agreements then in existence, all of which shall be satisfactory to the Lender and its counsel,
acting reasonably;

	(i)
	the
Lender shall have received the Original Security, all in form and substance satisfactory to the Lender, and all action required by the Borrower to fully perfect and maintain such
Original Security of and upon the assets of the Borrower to which it applies shall have been successfully completed, including completion of all security filings under UCC and real property
registrations;

	(j)
	the
Borrower shall have delivered to the Lender a certificate of the Borrower in a form satisfactory to the Lender certifying the good standing of the Borrower (and any other
entities controlled by or otherwise affiliated with the Borrower) under, and the validity and currency in force of, all Permitted Encumbrances and Material Agreements;

	(k)
	the
Lender shall be satisfied, acting reasonably, with the budget for the Reconstruction;

	(l)
	the
Cost Consultant shall have performed an inspection of the Reconstruction and reported to the Lender that the amount of work in place and the cost to complete in respect of the
Reconstruction do not exceed an aggregate of One Hundred and Fifteen Million Dollars ($115,000,000);

	(m)
	the
Borrower shall have made available to the Lender tax certificates in respect of each of the Gulfstream/Aventura Properties, in each case evidencing that all municipal taxes due in
respect thereof up to the Tranche 2 First Advance Date have been paid in full;

	(n)
	no
litigation, regulatory or other proceeding shall have been commenced seeking to restrict the Borrower and/or the Guarantors from completing the transactions contemplated hereby;

	(o)
	without
derogating from the Borrower's representations, warranties and covenants herein and under the Loan Documents, the Lender shall be satisfied with: (i) its due diligence
review of the Gulfstream/Aventura Properties, including with respect to environmental reports and ability to rely upon such reports, environmental and other approvals, title to properties and assets
and legal matters; and (ii) its assessment of all environmental conditions relating to the Gulfstream/Aventura Properties and actual or potential environmental liabilities of the Borrower and
its subsidiaries, including any appropriate insurance;

	(p)
	in
the opinion of the Lender, no Material Adverse Change shall have occurred;

	(q)
	the
Borrower shall have made available to the Lender copies of paid-up policies evidencing the insurance to be maintained by the Borrower pursuant to
Section 7.1(r); 

43

 

	(r)
	the
Lender shall have received a title insurance commitment, in form and substance satisfactory to the Lender, committing the title insurer to issue a lender's title insurance policy
(the "Gulfstream/Aventura Title Policy"), in an amount to be determined by the Lender, acting reasonably, from Fidelity National Title Insurance
Company of New York (or any other title company acceptable to the Lender) (the "Title Company"), insuring the Borrower's fee
ownership of the Gulfstream/Aventura Properties, the adequacy of the legal descriptions of the Gulfstream/Aventura Properties, the marketability of title and that the Gulfstream/Aventura Mortgage is a
valid first priority Encumbrances on the Gulfstream/Aventura Properties, free and clear of Encumbrances other than the Permitted Encumbrances and exceptions to title approved in writing by the Lender,
the validity and effectiveness of any such Encumbrances on the exercise by the Lender of its rights and remedies upon the occurrence of an Event of Default under this Agreement, together with an
endorsement to the Lender's title insurance policy to confirm that the title insurance will continue to be effective following the platting of any of the Properties. The Gulfstream/Aventura Title
Policy shall also contain any endorsements required by the Lender;

	(s)
	the
Borrower shall also have made available to the Lender:

	(A)
	surveys
with respect to the Gulfstream/Aventura Properties certified by independent, duly qualified, Florida Land Surveyors, satisfactory in substance and form to the Lender and the
Lender's Florida Agent; and

	(B)
	all
of which surveys shall evidence no title defects other than Permitted Encumbrances;

	(t)
	the
Borrower shall have delivered to the Lender certificates of the Architect or a professional engineer responsible for the design of the Reconstruction in substance and form
satisfactory to the Lender and to the counsel for the Lender (acting reasonably) to the effect that:

	(i)
	such
Architect or professional engineer, as the case may be, is responsible for the preparation of the plans and specifications for the Reconstruction and the
supervision of the Reconstruction in accordance with such plans and specifications;

	(ii)
	the
plans and specifications have been approved by all authorities having jurisdiction and the Reconstruction has been constructed to date substantially in accordance
with such plans and specifications; and

	(iii)
	all
permits, licences or other evidence of authorization required for such Reconstruction to date have been obtained;

	(u)
	the
Reconstruction, to the extent constructed to date, complies in all material respects with all applicable zoning and building by-laws and regulations; 

44

 

	(v)
	the
Lender shall be satisfied with the zoning and other by-law and regulatory requirements for the Reconstruction;

	(w)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantor's Florida Agent addressed to the Lender, the Lender's Counsel and the Lender's Florida
Agent, in form, scope and substance satisfactory to the Lender and its counsel, acting reasonably;

	(x)
	the
Lender shall have received an opinion of the Lender's Florida Agent, addressed to the Lender, in form, scope and substance satisfactory to the Lender;

	(y)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantors' Pennsylvania Agent, addressed to the Lender, the Lender's Counsel and the Lender's
Pennsylvania Agent, in form, scope and substance satisfactory to the Lender and its counsel, acting reasonably;

	(z)
	the
Lender shall have received an opinion of the Lender's Pennsylvania Agent, addressed to the Lender, in form, scope and substance satisfactory to the Lender;

	(aa)
	all
proceedings to be taken in connection with the transactions contemplated by this Agreement in connection with the Tranche 1 First Advance, and all documents incident
thereto, shall be reasonably satisfactory in form and substance to the Lender, and the Borrower shall have provided to or made available to the Lender copies of all documents which the Lender may
reasonably request in connection with the Tranche 1 First Advance, said transactions and copies of the records of all corporate proceedings in connection therewith in form and substance
reasonably satisfactory to the Lender;

	(bb)
	the
Borrower shall, prior to such Advance and, in accordance with Section 7.1(l), have funded at its own cost and expense, any cost overruns which have been identified by the
Cost Consultant;

	(cc)
	if
the Lender determines that changes are necessary to the credit facility between Bank of Montreal and MEC in order to permit the transactions contemplated by this Agreement, and
the Lender so advises the Borrower, the Borrower shall have delivered to the Lender a fully executed amendment to the credit facility between Bank of Montreal and MEC that makes all such changes
necessary to permit the transactions contemplated by this Agreement; and

	(dd)
	no
Event of Default or Unmatured Event of Default shall have occurred and be continuing or will result from the making of the Tranche 1 First Advance. 

45

 

4.2   Tranche 2 — First Advance  

        The Borrower shall be entitled to obtain the first Advance under Tranche 2 (herein called the "Tranche 2 First
Advance") upon, and only in compliance with the following terms and upon satisfaction of the following conditions, all in form and substance satisfactory to the Lender in its
sole discretion: 

	(a)
	the
Tranche 2 First Advance shall occur upon a date (herein called the "Tranche 2 First Advance Date") determined by the
Borrower, provided that the Borrower shall have delivered to the Lender a complete and accurate Request for Advance, which Request for Advance shall reflect compliance by the Borrower with the
provisions of this Section 4.2;

	(b)
	the
Tranche 2 First Advance shall include an amount equal to the Lender's Tranche 2 Pre-Advance Expenses (as determined by the Lender) that have been
invoiced to the Lender prior to the date of the Tranche 2 First Advance, and an arrangement fee (the "Tranche 2 Arrangement Fee")
of $257,500.00;

	(c)
	the
Borrower shall have delivered to the Lender the amended and restated Gulfstream Note referenced in Section 5.1(a);

	(d)
	the
Lender shall have received a fully executed copy of the Horsemen's Agreement;

	(e)
	the
Borrower and the Guarantors shall have made available to the Lender certified copies of their incorporating documents and shall have delivered to the Lender incumbency
certificates with respect to the officers of the Borrower and the Guarantors signing this Agreement and the Security;

	(f)
	the
Borrower and the Guarantors shall have delivered to the Lender resolutions authorizing this Agreement and any documents to be provided pursuant to the provisions hereof, and all
documents evidencing any necessary corporate action of the Borrower and the Guarantors certified by appropriate officers thereof;

	(g)
	the
representations and warranties set forth in Article 6 shall be true and accurate in all respects as of the Tranche 2 First Advance Date, and the Borrower and the
Guarantors shall have delivered to the Lender a certificate of senior officers of each of the Borrower and the Guarantors to the foregoing effect;

	(h)
	the
Borrower and the Guarantors shall have made available to the Lender true copies of all of the Material Agreements then in existence, all of which shall be satisfactory to the
Lender and its counsel, acting reasonably;

	(i)
	the
Lender shall have received the Security, all in form and substance satisfactory to the Lender, and all action required by the Borrower and the Guarantors to fully perfect and
maintain such Security of and upon the assets of the Borrower and the Guarantors to which it applies shall have been successfully completed, including completion of all security filings under UCC and
real property registrations;

	(j)
	the
Borrower shall have delivered to the Lender a certificate of the Borrower in a form satisfactory to the Lender certifying the good standing of the Borrower (and any other
entities controlled by or otherwise affiliated with the Borrower) under, and the validity and currency in force of, all Permitted Encumbrances and Material Agreements; 

46

 

	(k)
	the
Lender shall have received a certificate from the Borrower detailing the Tranche 2 Slots Facilities Costs;

	(l)
	the
Lender shall be satisfied, acting reasonably, with the budget for the Tranche 2 Slots Facilities Initiative;

	(m)
	the
Cost Consultant shall have performed an inspection of the Tranche 2 Slots Facilities Initiative and reported to the Lender that the cost to complete in respect of the
Tranche 2 Slots Facilities Initiative does not exceed an aggregate of Twenty Five Million Seven Hundred and Fifty Thousand Dollars ($25,750,000.00);

	(n)
	the
Borrower shall have made available to the Lender tax certificates in respect of each of the Gulfstream/Aventura Properties, and the Guarantors shall have made available to the
Lender tax certificates in respect of the Properties owned by them, in each case evidencing that all municipal taxes due in respect thereof up to the Tranche 2 First Advance Date have been paid
in full;

	(o)
	no
litigation, regulatory or other proceeding shall have been commenced seeking to restrict the Borrower and/or the Guarantors from completing the transactions contemplated hereby;

	(p)
	in
the opinion of the Lender, no Material Adverse Change shall have occurred;

	(q)
	the
Borrower shall have made available to the Lender copies of paid-up policies evidencing the insurance to be maintained by the Borrower and/or any of the Guarantors
pursuant to Section 7.1(r);

	(r)
	the
Lender shall have received from the Title Company an endorsement in respect of the Gulfstream/Aventura Title Policy, in form and substance satisfactory to the Lender, insuring the
full amount of the Loan (including Lender's Costs and interest);

	(s)
	the
Lender shall be satisfied, with the zoning and other by-law and regulatory requirements for the Tranche 2 Slots Facilities Initiative;

	(t)
	the
Borrower shall, prior to such Advance and, in accordance with Section 7.1(l), have funded at its own cost and expense, any cost overruns which have been identified by the
Cost Consultant;

	(u)
	no
Event of Default or Unmatured Event of Default shall have occurred and be continuing or will result from the making of the Tranche 2 First Advance;

	(v)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantor's Florida Agent addressed to the Lender, the Lender's Counsel and the Lender's Florida
Agent, in form, scope and substance satisfactory to the Lender and its counsel, acting reasonably; 

47

 

	(w)
	the
Lender shall have received an opinion of the Lender's Florida Agent, addressed to the Lender, in form, scope and substance satisfactory to the Lender;

	(x)
	the
Lender shall have received an opinion of the Lender's Oklahoma Agent, addressed to the Lender, in form, scope and substance satisfactory to the Lender;

	(y)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantor's Counsel addressed to the Lender, and the Lender's Counsel, in form, scope and substance
satisfactory to the Lender and its counsel, acting reasonably;

	(z)
	the
Gulfstream/Aventura Tranche 2 Future Advance Agreement shall have been registered on the Gulfstream/Aventura Properties;

	(aa)
	the
Palm Meadows Training Tranche 2 Future Advance Agreement shall have been registered on the Palm Meadows Training Centre Property;

	(bb)
	the
Remington Lands Tranche 2 Future Advance Agreement shall have been registered on the Remington Property;

	(cc)
	the
Borrower shall have delivered to the Lender a fully executed amendment to the credit facility between Bank of Montreal and MEC that makes all changes necessary to permit the
transactions contemplated by this Agreement in connection with the Tranche 2 First Advance, or a certificate from Bank of Montreal, addressed to MEC and the Lender, certifying that no such
changes are required;

	(dd)
	the
Lender shall have received evidence of the Borrower's payment of the additional guarantee fees as required by and referenced in Section 10.26 of the Second Amended and
Restated Gulfstream Loan Agreement; and

	(ee)
	all
proceedings to be taken in connection with the transactions contemplated by this Agreement in connection with the Tranche 2 First Advance, and all documents incident
thereto, shall be reasonably satisfactory in form and substance to the Lender, and the Borrower shall have provided to or made available to the Lender copies of all documents which the Lender may
reasonably request in connection with the Tranche 2 First Advance, said transactions and copies of the records of all corporate proceedings in connection therewith in form and substance
reasonably satisfactory to the Lender. 

4.3   Tranche 3 — First Advance  

        The Borrower shall be entitled to obtain the first Advance under Tranche 3 (herein called the "Tranche 3 First
Advance") upon, and only in compliance with the following terms and upon satisfaction of the following conditions, all in form and substance satisfactory to the Lender in its
sole discretion: 

	(a)
	the
Tranche 3 First Advance shall occur upon a date (herein called the "Tranche 3 First Advance Date") determined by the
Borrower, provided that the Borrower shall have delivered to the Lender a complete and accurate Request for Advance, which Request for Advance shall reflect compliance by the Borrower with the
provisions of this Section 4.3; 

48

 

	(b)
	the
Tranche 3 First Advance shall include an amount equal to the Lender's Tranche 3 Pre-Advance Expenses (as determined by the Lender) that have been
invoiced to the Lender prior to the date of the Tranche 3 First Advance, and an arrangement fee (the "Tranche 3 Arrangement Fee")
of $215,000.00;

	(c)
	the
Borrower shall have delivered to the Lender the amended and restated Gulfstream Note referenced in Section 5.1(a);

	(d)
	the
Borrower and the Guarantors shall have made available to the Lender certified copies of their incorporating documents and shall have delivered to the Lender incumbency
certificates with respect to the officers of the Borrower and the Guarantors signing this Agreement and the Security;

	(e)
	the
Borrower and the Guarantors shall have delivered to the Lender resolutions authorizing this Agreement and any documents to be provided pursuant to the provisions hereof, and all
documents evidencing any necessary corporate action of the Borrower and the Guarantors certified by appropriate officers thereof;

	(f)
	the
representations and warranties set forth in Article 6 shall be true and accurate in all respects as of the Tranche 3 First Advance Date, and the Borrower and the
Guarantors shall have delivered to the Lender a certificate of senior officers of each of the Borrower and the Guarantors to the foregoing effect;

	(g)
	the
Borrower and the Guarantors shall have made available to the Lender true copies of all of the Material Agreements then in existence, all of which shall be satisfactory to the
Lender and its counsel, acting reasonably;

	(h)
	the
Lender shall have received the Security, all in form and substance satisfactory to the Lender, and all action required by the Borrower and the Guarantors to fully perfect and
maintain such Security of and upon the assets of the Borrower and the Guarantors to which it applies shall have been successfully completed, including completion of all security filings under UCC and
real property registrations;

	(i)
	the
Borrower shall have delivered to the Lender a certificate of the Borrower in a form satisfactory to the Lender certifying the good standing of the Borrower (and any other
entities controlled by or otherwise affiliated with the Borrower) under, and the validity and currency in force of, all Permitted Encumbrances and Material Agreements;

	(j)
	the
Lender shall have received a certificate from the Borrower detailing the Tranche 3 Slots Facilities Costs;

	(k)
	the
Lender shall be satisfied, acting reasonably, with the budget for the Tranche 3 Slots Facilities Initiative; 

49

 

	(l)
	the
Cost Consultant shall have performed an inspection of the Tranche 3 Slots Facilities Initiative and reported to the Lender that the cost to complete in respect of the
Tranche 3 Slots Facilities Initiative does not exceed an aggregate of Twenty One Million Five Hundred Thousand Dollars ($21,500,000.00);

	(m)
	the
Borrower shall have made available to the Lender tax certificates in respect of each of the Gulfstream/Aventura Properties, and the Guarantors shall have made available to the
Lender tax certificates in respect of the Properties owned by them, in each case evidencing that all municipal taxes due in respect thereof up to the Tranche 3 First Advance Date have been paid
in full;

	(n)
	no
litigation, regulatory or other proceeding shall have been commenced seeking to restrict the Borrower and/or the Guarantors from completing the transactions contemplated hereby;

	(o)
	in
the opinion of the Lender, no Material Adverse Change shall have occurred;

	(p)
	the
Borrower shall have made available to the Lender copies of paid-up policies evidencing the insurance to be maintained by the Borrower and/or any of the Guarantors
pursuant to Section 7.1(r);

	(q)
	the
Lender shall have received from the Title Company an endorsement in respect of the Gulfstream/Aventura Title Policy, in form and substance satisfactory to the Lender, insuring the
full amount of the Loan (including Lender's Costs and interest);

	(r)
	the
Lender shall be satisfied, with the zoning and other by-law and regulatory requirements for the Tranche 3 Slots Facilities Initiative;

	(s)
	the
Borrower shall, prior to such Advance and, in accordance with Section 7.1(l), have funded at its own cost and expense, any cost overruns which have been identified by the
Cost Consultant;

	(t)
	no
Event of Default or Unmatured Event of Default shall have occurred and be continuing or will result from the making of the Tranche 3 First Advance.

	(u)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantor's Florida Agent addressed to the Lender, the Lender's Counsel and the Lender's Florida
Agent, in form, scope and substance satisfactory to the Lender and its counsel, acting reasonably;

	(v)
	the
Lender shall have received an opinion of the Lender's Florida Agent, addressed to the Lender, in form, scope and substance satisfactory to the Lender;

	(w)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantors' Oklahoma Agent, addressed to the Lender, the Lender's Counsel and the Lender's Oklahoma
Agent, in form, scope and substance satisfactory to the Lender and its counsel, acting reasonably; 

50

 

	(x)
	the
Lender shall have received an opinion of the Lender's Oklahoma Agent, addressed to the Lender, in form, scope and substance satisfactory to the Lender;

	(y)
	the
Borrower shall have delivered to the Lender an opinion of the Borrower's and Guarantor's Counsel addressed to the Lender, and the Lender's Counsel, in form, scope and substance
satisfactory to the Lender and its counsel, acting reasonably;

	(z)
	the
Gulfstream/Aventura Tranche 3 Future Advance Agreement shall have been registered on the Gulfstream/Aventura Properties;

	(aa)
	the
Palm Meadows Training Tranche 3 Future Advance Agreement shall have been registered on the Palm Meadows Training Centre Property;

	(bb)
	the
Remington Lands Tranche 3 Future Advance Agreement shall have been registered on the Remington Property;

	(cc)
	if
the Lender determines that changes are necessary to the credit facility between Bank of Montreal and MEC in order to permit the transactions contemplated by this Agreement, and
the Lender so advises the Borrower, the Borrower shall have delivered to the Lender a fully executed amendment to the credit facility between Bank of Montreal and MEC that makes all changes necessary
to permit the transactions contemplated by this Agreement;

	(dd)
	the
Lender shall have received evidence of the Borrower's payment of the additional guarantee fees referenced in Section 10.26; and 

all
proceedings to be taken in connection with the transactions contemplated by this Agreement in connection with the Tranche 3 First Advance, and all documents incident thereto, shall be
reasonably satisfactory in form and substance to the Lender, and the Borrower shall have provided to or made available to the Lender copies of all documents which the Lender may reasonably request in
connection with the Tranche 3 First Advance, said transactions and copies of the records of all corporate proceedings in connection therewith in form and substance reasonably satisfactory to
the Lender. 

4.4   Subsequent Advances  

        The Borrower shall be entitled to obtain subsequent advances of funds (herein called "Subsequent Advances") under
Tranche 1, Tranche 2 and Tranche 3, upon the following terms and conditions: 

	(a)
	except
with respect to Advances deemed to be made hereunder, Subsequent Advances shall occur not more frequently than twice a month, upon a date (herein called a
"Subsequent Advance Date") determined by the Borrower by way of written notice to the Lender in the form of a Request for Advance given at least five
(5) Business Days prior to the Subsequent Advance Date in question, which Request for Advance shall reflect compliance with this Section 4.2 and, in particular, shall contain the same
form of officer's certificate and supporting documentation as is required for a Request for Advance pursuant to Section 4.1(a), 4.2(a) or 4.3(a), as the case may be, and shall otherwise
be complete and acceptable to the Lender, acting reasonably; 

51

 

	(b)
	the
amount of any Subsequent Advance in respect of Tranche 1 shall be in an amount which, together with the aggregate of all previous Advances for the Reconstruction, does not
exceed the value of the work in place for the Reconstruction, as determined by the Cost Consultant, provided that the amount remaining to be advanced under the Loan for the Reconstruction shall never
be less than the remaining Construction Costs that will be required to achieve completion of the Reconstruction, as estimated by the Cost Consultant;

	(c)
	insofar
only as any agreement granting additional security that was not in place at the time of the giving of a previous opinion under Section 4.1, 4.2, or 4.4(n)(xi) or this
Section is given in favour of the Lender, the Lender shall have. received updated opinions in form, substance and scope satisfactory to the Lender and its counsel to the same effect as the
opinions delivered pursuant to Section 4.1 and, in addition, as to Subsequent Advances made after the Closing Date, 4.4(n)(xi),

	(d)
	if
so requested, the Lender shall have received an opinion from counsel to the Borrower and/or the Guarantors in form, substance and scope satisfactory to the Lender and its counsel
confirming the effectiveness, perfection and priority of the Security;

	(e)
	the
Borrower shall, prior to such Advance and in accordance with Section 7.1(l), have funded at its own cost and expense any cost overruns which have been identified by the
Lender or the Cost Consultant;

	(f)
	in
respect of any request for Advance in respect of Tranche 1, the Lender shall have received from the Cost Consultant a report satisfactory to the Lender as to the progress of
the Reconstruction as of the Subsequent Advance Date in question;

	(g)
	in
respect of any Subsequent Advance in respect of Tranche 1, Subsections 4.1(c), (h), (n), (u) and (v) shall have been satisfied and shall continue to be
true and accurate and in full force and effect as of the Subsequent Advance Date in question, in respect of any Subsequent Advance in respect of Tranche 2, Subsections 4.2 (h),
(o) and (s) shall have been satisfied and shall continue to be true and accurate and in full force and effect as of the Subsequent Advance Date in question, and in respect of any
Subsequent Advance in respect of Tranche 3, Subsections 4.3 (h), (o) and (s) shall have been satisfied and shall continue to be true and accurate and in full force and
effect as of the Subsequent Advance Date in question; 

52

 

	(h)
	the
representations and warranties set forth in Article 6 shall be true and accurate in all respects as of the date of the Subsequent Advance (except as such representations
and warranties may be updated or otherwise modified to reflect any changes consented to in writing by the Lender), and the Borrower and the Guarantors shall have delivered to the Lender a certificate
of senior officers of each of the Borrower and the Guarantors, without personal liability, to the foregoing effect;

	(i)
	from
and after the earlier of (i) the completion of construction of the Gulfstream Facilities and; (ii) December 31, 2006, the Lender will not be required to make
any Subsequent Advances under Tranche 1, other than Reconstruction Holdback Advances;

	(j)
	the
final Advance for sums due on the Construction Contracts shall be made following completion of the work contemplated thereby to the satisfaction of the Lender and the Cost
Consultant and the furnishing of the following documents to the Lender and the Cost Consultant: (i) all required affidavits from the contractor under the applicable Construction Contracts and
the Borrower, (ii) a certificate from the Borrower certifying that the applicable work was completed in accordance with the Plans, (iii) final releases or lien waivers, which may be
subject to payment of a specific amount as provided in Section 713.20(3), Florida Statutes, from all applicable contractors and other lienors (including, without limitation, the lien rights of
the construction contractor), which releases or waivers must be acceptable to the Lender and the Title Company; provided, however, that the Borrower shall obtain and deliver to the Lender a final
unqualified lien waiver from each such party at the time of payment of such specific amount to such party, (iv) a certificate from the Cost Consultant certifying that the applicable work has
been completed in accordance with the Plans (including completion of the final punch list items, which punch list shall be prepared by or on behalf of the Borrower and approved by the Cost Consultant
in its discretion), that all Governmental Rules in respect of the Reconstruction have been satisfied and that direct connection has been made for all utility services to the Gulfstream Property,
(v) a certificate of occupancy for the Reconstruction, any required approval by the Board of Fire Underwriters or its equivalent having jurisdiction over the Gulfstream Property, and any other
approval required by any Governmental Authority to the extent that any such approval is a condition to the lawful use and occupancy of the Gulfstream Property and the opening of same to the public,
(vi) a final certified "as-built" survey of the Gulfstream Property satisfactory to the Lender and the Cost Consultant, and (vii) the final endorsement to the Title Insurance
Policy, reflecting no exceptions from coverage except the Permitted Encumbrances;

	(k)
	an
endorsement to each Title Policy (or if any Title Policy is not then issued, a commitment from the Title Company to issue such endorsement) shall have been delivered to the
Lender, increasing the amount of coverage to include the amount of the Advance then requested, which endorsement shall show no exceptions to title other than the Permitted Encumbrances;

	(l)
	no
Event of Default or Unmatured Event of Default shall have occurred and be continuing or will result from the making of the Subsequent Advance; 

53

  

	(m)
	in
the opinion of the Lender, no Material Adverse Change shall have occurred since the date of the immediately preceding Advance; and

	(n)
	as
to the first Subsequent Advance made on or after July 22, 2005:

	(i)
	the
Borrower, the Guarantors and MEC shall have made available to the Lender certified copies of their incorporating documents and shall have delivered to the Lender
incumbency certificates with respect to the officers of the Borrower, the Guarantors and MEC signing this Agreement and the Additional Security;

	(ii)
	the
Borrower, the Guarantors and MEC shall have delivered to the Lender resolutions authorizing the execution, delivery and performance of this Agreement and the
Additional Security and any documents to be provided pursuant to the provisions hereof, and all documents evidencing any necessary corporate action of the Borrower, the Guarantors and MEC certified by
appropriate officers thereof;

	(iii)
	the
Borrower and the Guarantors shall have made available to the Lender true copies of all of the Material Agreements (other than those delivered pursuant to
Section 4.1(h)), together with the consents and acknowledgements of all parties thereto required by the terms of such Material Agreements (other than the Borrower or the Guarantors, as
applicable), to the grant of the Security in such Material Agreements all of which shall be in form, scope and terms satisfactory to the Lender and its counsel, acting reasonably;

	(iv)
	the
Lender shall have received the Additional Security to be provided by the Palm Meadows Guarantor and MEC, all in form and substance satisfactory to the Lender, and
all action required by the Palm Meadows Guarantor and MEC to fully perfect and maintain such Additional Security of and upon the assets of the Palm Meadows Guarantor or MEC, as applicable, to which it
applies shall have been successfully completed, including completion of all security filings under UCC and real property registrations;

	(v)
	the
Borrower shall have delivered to the Lender a certificate of the Borrower in a form satisfactory to the Lender certifying the good standing of the Borrower and the
Additional Guarantors under, and the validity and currency in force of, all Permitted Encumbrances and Material Agreements applicable to the Additional Guarantors;

	(vi)
	the
Additional Guarantors shall have made available to the Lender tax certificates or other documentation reasonably satisfactory to Lender in respect of each of the
Remington Property and the Palm Meadows Training Center Property, evidencing that all municipal taxes and assessments due and payable in respect thereof up to the date of such Advance have been paid
in full; 

54

 

	(vii)
	without
derogating from the Borrower's and the Guarantors' representations, warranties and covenants herein and under the Loan Documents, the Lender shall be satisfied
with: (i) its due diligence review of the Remington Property and the Palm Meadows Training Center Property, including with respect to environmental reports and ability to rely upon such
reports, environmental and other approvals, title to properties and assets and legal matters and (ii) its assessment of all environmental conditions relating to such Properties and actual or
potential environmental liabilities of Additional Guarantors and their respective subsidiaries, including any appropriate insurance;

	(viii)
	the
Additional Guarantors and the Borrower shall have made available to the Lender copies of paid-up policies evidencing the insurance to be maintained by
the Additional Guarantors pursuant to Section 7.1(r);

	(ix)
	the
Lender shall have received a title insurance commitment or commitments, in form and substance satisfactory to the Lender, committing the Title Company to issue a
lender's title insurance policy (the "Additional Title Policies") within 90 days thereafter in an amount to be determined by the Lender,
acting reasonably, from the Title Company, insuring the Remington Guarantor's leasehold and fee interests in the Remington Property and the Palm Meadow Guarantor's fee ownership of the Palm Meadow
Property, the marketability of title, that the Remington Mortgage is a valid second priority Encumbrance on the leasehold and fee ownership interest of the Borrower in respect of the Remington
Property and the Palm Meadows Training Center Mortgage is a valid first priority Encumbrance on the Palm Meadows Training Center Property, in each case, free and clear of Encumbrances other than the
Permitted Encumbrances and exceptions to title approved in writing by the Lender, the validity and effectiveness of any such Encumbrances on the exercise by the Lender of its rights and remedies upon
the occurrence of an Event of Default under this Agreement, together with an endorsement to the Lender's title insurance policy to confirm that the title insurance will continue to be effective
following the platting of the Remington Property and the Palm Meadows Training Center Property. The Title Policy shall also contain any endorsements reasonably required by the Lender;

	(x)
	the
Borrower and the Additional Guarantors shall also have made available to the Lender surveys with respect to the Remington Property and the Palm Meadows Training
Center Property certified by independent, duly qualified, Oklahoma or Florida Land Surveyors, as applicable, satisfactory in substance and form to the Lender and the Lender's Oklahoma Agent and the
Lender's Florida Agent, respectively, all of which surveys shall evidence no title defects other than Permitted Encumbrances or defects which have been insured over by title insurance; 

55

 

	(xi)
	the
Borrower and the Additional Guarantors shall have delivered to the Lender opinions of each of the Borrower's and Guarantors' Florida Agent, the Borrower's and
Guarantors' Oklahoma Counsel and the Borrower's and Guarantors' Pennsylvania Agent addressed to the Lender, the Lender's Counsel and, as applicable, the Lender's Florida Agent, the Lender's Oklahoma
Agent or the Lender's Pennsylvania Agent in form, scope and substance satisfactory to the Lender and its counsel, acting reasonably, which shall be similar, mutatis
mutandis, to opinions provided to the Lender in connection with the Tranche 1 First Advance, the Tranche 2 First Advance or the Tranche 3 First Advance,
whichever is applicable;

	(xii)
	the
Lender shall have received reasonably current environmental reports in respect of the Remington Property and the Palm Meadows Training Center Property prepared by
a duly qualified environmental consultant, together with reliance letters addressed to the Lender, all to be in form, scope and terms satisfactory to the Lender, and the Lender shall be satisfied with
such environmental reports, in its sole and absolute discretion;

	(xiii)
	the
Lender shall have received a reasonably current appraisal of the Palm Meadows Training Center Property prepared by a duly qualified property appraiser, indicating
that the value of such Property is not less than Forty-Five Million Dollars ($45,000,000), in form, scope and terms satisfactory to the Lender, in its sole and absolute discretion;

	(xiv)
	the
Lender's financing commitment for "The Meadows Construction Loan" as referred to in the term sheet dated December 8, 2004 between MEC and the Lender related
to this Agreement shall have been terminated by mutual agreement of all parties thereto; and

	(xv)
	the
Borrower shall have delivered to the Lender a fully executed amendment to the credit facility between Bank of Montreal and MEC that makes all changes to permit the
transactions contemplated by this Agreement, if such is required under the credit facility between Bank of Montreal and MEC. 

The
provisions of this Section 4.3(n), insofar as they relate to the Remington Guarantor or its property and assets, shall not be operative unless and until it has obtained the Remington Loan
OHRC Approval. 

	(o)
	each
Request for Advance shall specify whether it is in respect of Tranche 1, Tranche 2 or Tranche 3;

	(p)
	subject
to Section 3.10, each Subsequent Advance shall include an amount equal to any Lender's Tranche 1 Pre-Advance Expenses, any Lender's Tranche 2
Pre-Advance Expenses, any Lender's Tranche 3 Pre-Advance Expenses and/or any other Lender's Costs that have been invoiced to the Lender prior to the date of such
Subsequent Advance, in each case to the extent that they have not previously been deemed to have been Advanced under the Loan; 

56

 

	(q)
	the
amount remaining to be advanced under Tranche 2 shall never be less than the remaining Tranche 2 Slots Facilities Costs that will be required to achieve completion
of the Tranche 2 Slots Facilities Initiative, as estimated by the Cost Consultant;

	(r)
	in
respect of any request for a Subsequent Advance in respect of Tranche 2, the Lender shall have received from the Cost Consultant a report satisfactory to the Lender as to
the progress of the Tranche 2 Slots Facilities Initiative as of the Subsequent Advance Date in question;

	(s)
	the
amount remaining to be advanced under Tranche 3 shall never be less than the remaining Tranche 3 Slots Facilities Costs that will be required to achieve completion
of the Tranche 3 Slots Facilities Initiative, as estimated by the Cost Consultant;

	(t)
	in
respect of any request for a Subsequent Advance in respect of Tranche 3, the Lender shall have received from the Cost Consultant a report satisfactory to the Lender as to
the progress of the Tranche 3 Slots Facilities Initiative as of the Subsequent Advance Date in question;

	(u)
	from
and after June 30, 2007 the Lender will not be required to make any Subsequent Advances under Tranche 2, other than Tranche 2 Slots Facilities Holdback
Advances;

	(v)
	from
and after one year following the Tranche 3 Repayment Commencement Date, the Lender will not be required to make any Subsequent Advances under Tranche 3, other than
Tranche 3 Slots Facilities Holdback Advances;

	(w)
	the
final Advance in respect of Tranche 2 for sums due on the Tranche 2 Slots Facilities Contracts shall be made following completion of the work contemplated
thereby to the satisfaction of the Lender and the Cost Consultant and if so requested by the Lender, the furnishing of the following documents to the Lender and the Cost Consultant: (i) all
required affidavits from the contractor under the applicable Tranche 2 Slots Facilities Contracts and the Borrower, (ii) a certificate from the Borrower certifying that the applicable
work was completed in accordance with the Plans, (iii) final releases or lien waivers, which may be subject to payment of a specific amount as provided in Section 713.20(3), Florida
Statutes, from all applicable contractors and other lienors (including, without limitation, the lien rights of the construction contractor), which releases or waivers must be acceptable to the Lender
and the Title Company; provided, however, that the Borrower shall obtain and deliver to the Lender a final unqualified lien waiver from each such party at the time of payment of such specific amount
to such party, (iv) a certificate from the Cost Consultant certifying that the applicable work has been completed in accordance with the Plans (including completion of the final punch list
items, which punch list shall be prepared by or on behalf of the Borrower and approved by the Cost Consultant in its discretion), that all Governmental Rules in respect of the Tranche 2 Slots
Facilities have been satisfied, and (v) to the extent required, a certificate of occupancy for the Tranche 2 Slots Facilities, any required approval by the Board of Fire Underwriters or
its equivalent having jurisdiction over the Tranche 2 Slots Facilities, and any other approval required by any Governmental Authority to the extent that any such approval is a condition to the
lawful use and occupancy of the Tranche 2 Slots Facilities and the opening of same to the public, and (vi) a final certified "as-built" survey of the Tranche 2 Slots
Facilites satisfactory to the Lender and the Cost Consultant, and (vii) the final endorsement to the Gulfstream/Aventura Title Insurance Policy, reflecting no exceptions from coverage except
the Permitted Encumbrances. 

57

 

	(x)
	the
final Advance in respect of Tranche 3 for sums due on the Tranche 3 Slots Facilities Contracts shall be made following completion of the work contemplated
thereby to the satisfaction of the Lender and the Cost Consultant and if so requested by the Lender, the furnishing of the following documents to the Lender and the Cost Consultant: (i) all
required affidavits from the contractor under the applicable Tranche 3 Slots Facilities Contracts and the Borrower, (ii) a certificate from the Borrower certifying that the applicable
work was completed in accordance with the Plans, (iii) final releases or lien waivers, which may be subject to payment of a specific amount as provided in Section 713.20(3), Florida
Statutes, from all applicable contractors and other lienors (including, without limitation, the lien rights of the construction contractor), which releases or waivers must be acceptable to the Lender
and the Title Company; provided, however, that the Borrower shall obtain and deliver to the Lender a final unqualified lien waiver from each such party at the time of payment of such specific amount
to such party, (iv) a certificate from the Cost Consultant certifying that the applicable work has been completed in accordance with the Plans (including completion of the final punch list
items, which punch list shall be prepared by or on behalf of the Borrower and approved by the Cost Consultant in its discretion), that all Governmental Rules in respect of the Tranche 3 Slots
Facilities have been satisfied, and (v) to the extent required, a certificate of occupancy for the Tranche 3 Slots Facilities, any required approval by the Board of Fire Underwriters or
its equivalent having jurisdiction over the Tranche 3 Slots Facilities, and any other approval required by any Governmental Authority to the extent that any such approval is a condition to the
lawful use and occupancy of the Tranche 3 Slots Facilities and the opening of same to the public, and (vi) a final certified "as-built" survey of the Tranche 3 Slots
Facilites satisfactory to the Lender and the Cost Consultant, and (vii) the final endorsement to the Gulfstream/Aventura Title Insurance Policy, reflecting no exceptions from coverage except
the Permitted Encumbrances. 

58

 

ARTICLE 5

SECURITY FOR LOAN  

5.1   General  

        As evidence of, and security for, the Loan and all other obligations, liability and indebtedness of the Borrower hereunder and under the other Loan Documents,
both present and future (the "Indebtedness"), the Borrower shall deliver to the Lender, in form satisfactory to the Lender and
its counsel: 

	(a)
	an
amended and restated promissory note in the amount of One Hundred and Sixty Two Million Two Hundred and Fifty Thousand Dollars ($162,250,000) from the Borrower in favour of the
Lender (the "Gulfstream Note");

	(b)
	a
perfected first priority Encumbrance on the Gulfstream/Aventura Properties pursuant to a mortgage dated December 9, 2004 from the Borrower in favor of the Lender
(the "Gulfstream/Aventura Mortgage"), together with the Gulfstream/Aventura Tranche 2 Future Advance Agreement and the Gulfstream/Aventura
Tranche 3 Future Advance Agreement;

	(c)
	a
first priority assignment of rents and leases generated by the use and occupancy of the Gulfstream/Aventura Properties pursuant to an assignment of rents and lessor's interest in
the Occupancy Agreements relating to the Gulfstream Property and the Aventura Property dated December 9, 2004 from the Borrower to the Lender;

	(d)
	a
general assignment of the Borrower's interest in the Material Agreements relating to any of the Gulfstream/Aventura Properties, where permitted; provided that if the assignment of
any such Material Agreement is not permitted, the Borrower shall use its commercially reasonable efforts to obtain all consents and waivers necessary to assign to the Lender such Material Agreement
and further agrees that if such consents and waivers are not obtained, such Material Agreement shall be held by the Borrower for the benefit of and in trust for the Lender;

	(e)
	a
perfected first priority Encumbrance (subject to any (i) Purchase Money Security Interest granted to lenders or vendors up to a maximum amount of Twelve Million and Five
Hundred Thousand Dollars ($12,500,000) in the aggregate for purposes only of acquiring the Gulfstream FF&E; (ii) and Purchase Money Security Interest granted to lenders or vendors up to a
maximum amount of Two Million Five Hundred Thousand Dollars ($2,500,000) in the aggregate for purposes only of acquiring the Tranche 2 Slots Facilities FF&E and (iii) Purchase Money
Security Interest granted to lenders or vendors up to a maximum of Two Million Five Hundred Thousand Dollars ($2,500,000) in the aggregate for purposes only of acquiring the Tranche 3 Slots
Facilities FF&E) in all personal property of the Borrower now owned and hereafter acquired (excluding licences and permits), pursuant to a general security agreement of even date herewith from the
Borrower to the Lender; 

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	(f)
	the
environmental indemnity agreement in respect of the Gulfstream/Aventura Properties, from the Borrower in favor of the Lender;

	(g)
	a
negative stock pledge agreement from MEC to the Lender regarding 100% of the issued and outstanding capital stock of the Borrower and each of the Additional Guarantors;

	(h)
	in
return for guarantee and indemnity fees to be paid by the Borrower to the Remington Guarantor upon receipt of the Gulfstream Loan OHRC Approval in the amount of $287,500, the
guarantee and indemnity (the "Remington Guarantee and Indemnity") of the Remington Guarantor, under which the Remington Guarantor unconditionally
guarantees the payment and performance of the Indebtedness outstanding from time to time, as well as interest and other amounts owing hereunder or under the other Loan Documents, the completion of the
Reconstruction in accordance with the Gulfstream Development Agreement, the Construction Contracts and the Plans, the completion of the Tranche 2 Slots Facilities Initiative in accordance with
the Tranche 2 Slots Facilities Contracts, the completion of the Tranche 3 Slots Facilities Initiative in accordance with the Tranche 3 Slots Facilities Contracts, and the
performance of all other obligations of the Borrower under the Loan and the Loan Documents, including the payment of cost overruns pursuant to Section 7.1(l);

	(i)
	as
security for the Remington Guarantee and Indemnity:

	(i)
	a
perfected second priority Encumbrance on the Remington Guarantor's leasehold interest in the Remington Lands pursuant to a leasehold mortgage, dated July 22,
2005, from the Remington Guarantor in favour of the Lender (the "Remington Second Mortgage");

	(ii)
	a
second priority assignment of rents and leases generated by the use and occupancy of the Remington Property pursuant to an assignment of rents and lessor's interest
in the Occupancy Agreements relating to the Remington Property, dated July 22, 2005, from the Remington Guarantor to the Lender;

	(iii)
	a
second general assignment, dated July 22, 2005, of the Remington Guarantor's interest in the Material Agreements relating to the Remington Property, where
permitted; provided that if the assignment of any such Material Agreement is not permitted, the Remington Guarantor shall use its commercially reasonable efforts to obtain all consents and waivers
necessary to assign to the Lender such Material Agreement and further agrees that if such consents and waivers are not obtained, such Material Agreement shall be held by the Remington Guarantor for
the benefit of and in trust for the Lender; 

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	(iv)
	a
perfected second priority Encumbrance (subject to any Permitted Encumbrances) in all personal property of the Remington Guarantor now owned and hereafter acquired
(excluding licences and permits but including the fee interest of Remington in the Remington Park Race Track clubhouse/grandstand forming part of the Remington Property), pursuant to a general
security agreement, dated July 22, 2005, from the Remington Guarantor to the Lender and which also contains a negative pledge on all of the Remington Guarantor's licences and permits;

	(v)
	the
environmental indemnity agreement in respect of the Remington Property, dated July 22, 2005, from the Remington Guarantor in favour of the Lender;

	(vi)
	the
Remington Lands Tranche 2 Future Advance Agreement, dated July 26, 2006;

	(vii)
	the
Remington Lands Tranche 3 Future Advance Agreement dated of even date herewith. 

All
of the items of security referred to in this Clause (h) shall be subordinate to the same types of security provided by the Remington Guarantor to the Lender as security for its liabilities
and obligations under the Remington Loan Agreement; 

	(j)
	in
return for guarantee and indemnity fees paid by the Borrower to the Palm Meadows Guarantor in the amount of $57,500, the guarantee and indemnity
(the "Palm Meadows Guarantee and Indemnity") of the Palm Meadows Guarantor, under which the Palm Meadows Guarantor unconditionally guarantees the
payment and performance of the Indebtedness outstanding from time to time, as well as interest and other amounts owing hereunder or under the other Loan Documents, the completion of the Reconstruction
in accordance with the Gulfstream Development Agreement, the Construction Contracts and the Plans, the completion of the Tranche 2 Slots Facilities Initiative in accordance with the
Tranche 2 Slots Facilities Contracts, the completion of the Tranche 3 Slots Facilities Initiative in accordance with the Tranche 3 Slots Facilities Contractsand the performance of
all other obligations of the Borrower under the Loan and the Loan Documents, including the payment of cost overruns pursuant to Section 7.1(l);

	(k)
	as
security for the Palm Meadows Guarantee and Indemnity:

	(i)
	a
perfected first priority Encumbrance (subject to any Permitted Encumbrances) on the Palm Meadows Training Center Property pursuant to a mortgage, dated July 22,
2005, from the Palm Meadows Guarantor in favour of the Lender (the "Palm Meadows Training Center Mortgage");

	(ii)
	a
first priority assignment of rents and leases generated by the use and occupancy of the Palm Meadows Training Center Property pursuant to an assignment of rents and
lessor's interest in the Occupancy Agreements relating to the Palm Meadows Training Center Property, dated July 22, 2005, from the Palm Meadows Guarantor to the Lender; 

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	(iii)
	a
first general assignment, dated July 22, 2005, of the Palm Meadows Guarantor's interest in the Material Agreements relating to the Palm Meadows Training
Center Property, where permitted; provided that if the assignment of any such Material Agreements is not permitted, the Palm Meadows Guarantor shall use commercially reasonable efforts to obtain all
consents and waivers necessary to assign to the Lender such Material Agreement and if such consents and waivers are not obtained, such Material Agreement shall be held by the Palm Meadows Guarantor
for the benefit of and in trust for the Lender;

	(iv)
	a
perfected first priority Encumbrance in all personal property of the Palm Meadows Guarantor now owned and hereafter acquired (excluding licences and permits), in each
case to the extent permitted by applicable laws and regulations pursuant to a general security agreement, dated July 22, 2005, from the Palm Meadows Guarantor to the Lender and which shall also
contain a negative pledge on all of the licences and permits held by the Palm Meadows Guarantor;

	(v)
	the
environmental indemnity agreement in respect of the Palm Meadows Training Center Property, dated July 22, 2005, from the Palm Meadows Guarantor in favour of
the Lender;

	(vi)
	the
Palm Meadows Training Centre Tranche 2 Future Advance Agreement, dated July 26, 2006; and

	(vii)
	the
Palm Meadows Training Centre Tranche 3 Future Advance Agreement dated of even date herewith;

	(l)
	the
limited recourse guarantee and indemnity of MEC (the "MEC Guarantee and Indemnity") pursuant to which MEC unconditionally
guarantees the payment and performance of the Indebtedness outstanding from time to time, as well as interest and other amounts owing hereunder or under the other Loan Documents, the completion of the
Reconstruction in accordance with the Gulfstream Development Agreement, the Construction Contracts and the Plans, and the performance of all other obligations of the Borrower under the Loan and the
Loan Documents, including the payment of cost overruns pursuant to Section 7.1(l), together with a stock pledge agreement of even date herewith from MEC to the Lender pursuant to which MEC
pledges 100% of the issued and outstanding capital stock of the Palm Meadows Guarantor, and, as additional security for the MEC Guarantee and Indemnity, and the Note Assignment Agreement and the
Release and Termination Agreement; 

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	(m)
	a
specific assignment to the Lender of the policies of insurance referred to in Section 6.1(nn) and the proceeds thereto, together with endorsement thereof reflecting
the Lender as a loss payee or additional insured, as applicable;

	(n)
	related
UCC financing statements;

	(o)
	any
other collateral or security described in this Agreement or in any of the other Loan Documents, and such other assignments, mortgages, security agreements and undertakings
relating to any of the Properties and other documentation in support thereof as the Lender and its counsel shall reasonably require; and

	(p)
	such
documents as the Lender, acting reasonably, shall require with respect to the provisions of the Construction Lien Law, Section 713, Florida Statutes and Oklahoma Statutes
§141, et seq for the purpose of preserving the priority of its Security. 

The
security set out above in this Section 5.1 (except the Gulfstream Note) is herein called the "Security"; the Security provided by the
Borrower is herein called the "Original Security" and the Security provided by the Remington Guarantor, the Palm Meadows Guarantor and MEC is herein
called the "Additional Security". The Original Security (save and except for the Tranche 2 Future Advance Agreements and Tranche 3 Future
Advance Ageements) was provided on or before the Tranche 1 First Advance Date, the Additional Security from the Palm Meadows Guarantor was provided on July 22, 2005, the Additional
Security from the Remington Guarantor was provided upon the receipt of the Gulfstream Loan OHRC Approval, the Tranche 2 Future Advance Agreements were provided in connection with the Second
Amended and Restated Gulfstream Loan Agreement and the Tranche 3 Future Advance Agreements will each be provided on the Closing Date. 

5.2   Right to Substitute Security for the Aventura Property  

        The Borrower shall have the right at any time to provide substitute security for the Aventura Property (the "Substitute Aventura
Security"), provided that (a) the Substitute Aventura Security is either (i) cash or one or more letters of credit drawn on a bank or banks acceptable to the
Lender, acting reasonably, or (ii) other property acceptable to the Lender, acting reasonably, (b) the Lender is satisfied, acting reasonably, that the realizable value of the Substitute
Aventura Security is not less than the value of the Aventura Property, and (c) the Borrower pays all costs and expenses (including those of the Lender) in connection with such substitution of
security. The Lender and the Borrower hereby agree that the value of the Aventura Property at any time shall be deemed to be the greater of (a) Fifty-Five Million Dollars
($55,000,000) and (b) the value as determined by the Lender, acting reasonably and based on one or more fair market value appraisals conducted by one or more qualified appraisers determined by
the Lender, acting reasonably, at the time of any request to substitute security. 

        Notwithstanding
the foregoing, the parties agree that it is a condition to the exercise by the Borrower of its rights under this Section 5.2 that the Borrower exercise its
substitution rights under the equivalent section of the Remington Loan Agreement concurrently and that any amounts payable hereunder and under the equivalent provisions of the Remington Loan Agreement
are due and payable, and are paid, on the same day. 

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5.3   Development of the Mixed-Use Property  

        The Lender acknowledges that the Borrower intends to jointly develop the Mixed-Use Property with a third party. 

        Promptly
following written request from the Borrower, the parties hereto will use commercially reasonable efforts to negotiate within 90 days an
inter-creditor/non-disturbance agreement (the "JV Inter-Creditor Agreement"), on terms satisfactory to the Lender, acting reasonably,
that provides that, upon the Mixed-Use Property being subdivided from the remainder of the Gulfstream Property, on terms acceptable to the Lender, acting reasonably, the Lender will
subordinate its security interest in such Mixed-Use Property to the joint venture's interest, as tenant, in the 99-year ground lease (the "JV
Ground Lease") that the Borrower will be entering into with the joint venture; provided that: (a) the Lender will be granted a second-ranking security interest over:
(i) the Borrower's (or any Affiliate's) interest in the JV Ground Lease; and (ii) the Borrower's (or any Affiliate's) interest in the joint venture entity, (b) the
Lender shall be satisfied, acting reasonably, that such joint development shall not adversely impact the access to or the structural integrity of the Gulfstream Facilities, (c) the requirement
that the tenant under the JV Ground Lease, the Borrower and the Lender enter into a reciprocal easement agreement, on terms satisfactory to the Lender, acting reasonably, (d) the Lender shall
receive from a reputable title insurance company approved by the Lender, acting reasonably, such title insurance endorsements as are reasonably requested by the Lender to insure the continued priority
and validity of its security interest under the Gulfstream/Aventura Mortgage in respect of the remaining portion of the Gulfstream Property, and (e) any financing related to the joint venture
shall be on terms subject to the approval of the Lender, acting reasonably. 

5.4   Additional Slots Financing  

        The Lender understands that, following the completion of the Tranche 3 Slots Facilities Initiative, the Borrower may wish to renovate and/or expand the
Gulfstream Facilities and install therein an additional 284 slots (or relocate existing slots to renovated, expanded or newly-constructed facilities)
(the "Additional Slots Facilities Initiative"), all at the Borrower's sole cost and expense. 

        The
Lender shall have a continuing right of first opportunity, exercisable in its sole and absolute discretion at any time and from time to time, to provide additional financing in
respect of the Additional Slots Facilities Initiative (the "Additional Slots Facilities Financing") required by the Borrower in connection with
the Additional Slots Facilities Initiative. If the Borrower determines that it wishes to pursue the Additional Slots Facilities Initiative, the Borrower shall provide the Lender with a written notice
in accordance with Section 10.6 hereof (the "ROFO Notice") setting out in detail the proposed purpose for the Additional Slots Facilities
Financing, together with the proposed principal amount, term, interest rate, and security in respect of the Additional Slots Facilities Financing (collectively, the "Additional
Slots Facilities Financing Terms"). If the Borrower and Lender are unable to reach agreement on the terms of the Additional Slots Facilities Financing within 50 days of
the delivery of the ROFO Notice, the Lender shall be deemed not to have exercised its right of first opportunity in respect of the Additional Slots Facilities Financing offered on the Additional Slots
Facilities Financing Terms. 

64

 

        If
the Lender is deemed not to have exercised its right of first opportunity in respect of a proposed Additional Slots Facilities Financing, the Lender agrees to consider in good faith
and act reasonably in reviewing any request from the Borrower to restructure the Security in respect of the Gulfstream/Aventura Properties held by the Lender in order to accommodate third party
financing of a proposed Additional Slots Facilities Initiative; provided that: (a) the provisos set forth in the immediately preceding paragraph are complied with; (b) the terms of the
third party financing of the proposed Additional Slots Facilities Initiative are no more favourable to the third party lender thereunder than the Additional Slots Facilities Financing Terms that were
contained in the relevant ROFO Notice (c) nothing herein shall require the Lender to subordinate or postpone its Security in respect of the Gulfstream/Aventura Properties or impair its value;
(d) all costs and expenses reasonably incurred by the Lender in reviewing such request and/or restructuring such Security in respect of the Gulfstream/Aventura Properties shall be paid for by
the Borrower; and (e) the Borrower pre-pays Tranche 2 and 3, in full, concurrent with the closing of such Additional Slots Facilities Financing. Any encumbrances
created pursuant to the Additional Slots Facilities Initiative that are approved by the Lender shall be deemed to Permitted Encumbrances. In the event that the Borrower does not secure third party
financing of the proposed Additional Slots Facilities Initiative on terms that are no more favourable to the third party lender thereunder than the Additional Slots Facilities Financing Terms that
were contained in the relevant ROFO Notice, the provisions of this Section 5.4 shall continue to apply. 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES  

6.1   Borrower's and Guarantors' Representations and Warranties  

        To induce the Lender to enter into the Loan Documents and to make the Loan, the Borrower hereby makes the following representations and warranties with respect to
itself, its subsidiaries and MEC, and the Guarantors hereby make the following representations and warranties with respect to themselves and their subsidiaries as of the date hereof (provided that
each of the representations and warranties is qualified by the disclosure schedule delivered to the Lender concurrently with the execution of the Original Gulfstream Loan Agreement and the Disclosure
Schedule (as specifically set out therein)): 

	(a)
	Binding Obligation:    The Loan Documents have each been duly authorized, executed and delivered by the Borrower, the
Guarantors and MEC and each constitutes the legally binding obligation of the Borrower, the Guarantors and MEC, as the case may be, enforceable (subject to creditors' rights and equitable remedies)
against the Borrower, the Guarantors and MEC, as the case may be, in accordance with each of their respective terms.

	(b)
	Borrower's and Guarantors' Existence:    The Borrower is a corporation duly formed, validly existing and in good standing
under the laws of the State of Florida and qualified to own its property and assets and to carry on business in the State of Florida, including the business currently carried on by it. The Remington
Guarantor is a corporation duly formed, validly existing and in good standing under the laws of the State of Oklahoma and qualified to own its property and assets and to carry on business in the State
of Oklahoma, including the business currently carried on by it. The Palm Meadows Guarantor is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware
and qualified to own its property and assets and to carry on business, including the business currently carried on by it. 

65

 

	(c)
	Authority:    The Borrower, the Guarantors and MEC have full right, power and authority to execute the Loan Documents on
their own behalf and no consents of any third parties are required that have not been obtained.

	(d)
	Business:    The Borrower does not carry on any business other than the ownership, operation, development, finance and
management of the Gulfstream/Aventura Properties, The Remington Guarantor does not carry on any business other than the ownership, operation, development, finance and management of the Remington
Property and the Palm Meadows Guarantor does not carry on any business other than the ownership, operation, development, finance and management of the Palm Meadows Training Center Property, including,
in each case, horseracing and parimutuel gaming and activities ancillary thereto. The Borrower and each of the Guarantors conduct their business in a reasonable and prudent manner.

	(e)
	No Violation:    The execution, delivery and compliance with the terms and provisions of this Agreement and the Loan
Documents by the Borrowers, the Guarantors and MEC will not (i) violate in any material respects any provisions of law or any Applicable Legal Requirements, (ii) require any consent of
any third party not previously obtained or as otherwise set out in Section 6.1(m), or (iii) violate in any material respects or cause a default under any agreement to which the Borrower,
the Guarantors and MEC are a party or by which they will be bound.

	(f)
	Borrower Organizational Documents:    A true and complete copy of the certificate of formation, certificate of authority to
transact business and by-laws of the Borrower and all other documents creating and governing the Borrower (collectively, the "Borrower Incorporation
Documents") have been made available to the Lender. There are no other agreements, oral or written, among any of the shareholders of the Borrower relating to the Borrower. The
Borrower Incorporation Documents were duly executed and delivered, are in full force and effect, and are binding upon and enforceable in accordance with their terms. No breach exists under the
Borrower Incorporation Documents and no act has occurred and no condition exists which, with the giving of notice or the passage of time would constitute a breach under the Borrower Incorporation
Documents. 

66

  

	(g)
	Guarantors' Organizational Documents:    True and complete copies of the certificates of formation, certificates of authority
to transact business, certificates of formation, articles of incorporation, by-laws and all other documents creating and governing each of the Guarantors and MEC (collectively, the
"Guarantor Incorporation Documents") have been made available to the Lender. There are no other agreements, oral or written, among any of the
shareholders of each of the Guarantors or MEC relating to the Guarantors or MEC. The Guarantor Incorporation Documents were duly executed and delivered, are in full force and effect, and are binding
upon and enforceable in accordance with their terms. No breach exists under the Guarantor Incorporation Documents and no act has occurred and no condition exists which, with the giving of notice or
the passage of time would constitute a breach under the Guarantor Incorporation Documents. The Borrower Incorporation Documents and the Guarantor Incorporation Documents are herein collectively
referred to as the "Organizational Documents".

	(h)
	Authorized Capital:    The authorized capital of the Borrower consists of 13,040 common shares of which
11,232 common shares are duly issued and outstanding as fully paid and non-assessable. The beneficial holders of such outstanding shares are as follows: 

	Beneficial Holder 
	 	Class of Shares
	 	Number of Shares

	Magna Entertainment Corp.	 	common	 	11,232

The
authorized capital of the Remington Guarantor consists of 10,000 common shares of which 500 common shares are duly issued and outstanding as fully paid and
non-assessable. The beneficial holder of such outstanding shares is as follows: 

	Beneficial Holder 
	 	Class of Shares
	 	Number of Shares

	Magna Entertainment Corp.	 	common	 	500

The
authorized capital of the Palm Meadows Guarantor consists of 10,000 common shares of which 100 common shares are duly issued and outstanding as fully paid and
non-assessable. The beneficial holder of such outstanding shares is as follows: 

	Beneficial Holder 
	 	Class of Shares
	 	Number of Shares

	Magna Entertainment Corp.	 	common	 	100

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	(i)
	Financial Statements:    The Lender has been furnished with a copy of the unaudited internally prepared consolidated
financial statements of the Borrower and each of the Guarantors dated as of and at the end of the most recently completed fiscal quarter. Such internally prepared consolidated financial statements of
the Borrower and each of the Guarantors fairly present the financial condition of the Borrower and each of the Guarantors as at such date in conformity with GAAP applied on a consistent basis (save
and except for the reflection of the value of the assets of the Borrower and each of the Guarantors at their market value instead of their cost as reflected in the notes to such financial statements)
and there has been no Material Adverse Change since the date of such statements.

	(j)
	Combined Financial Statements:    The Lender has been furnished with a copy of the unaudited internally prepared Combined
financial statements dated as of and at the end of the most recently completed fiscal quarter. Such internally prepared Combined financial statements fairly present the Combined financial condition of
the Borrower and the Additional Guarantors as at such date in conformity with generally accepted accounting principles applied on a consistent basis (save and except for the reflection of the value of
the assets of the Borrower, and the Additional Guarantors at their market value instead of their cost as reflected in the notes to such financial statements) and there has been no Material Adverse
Change since the date of such Combined statements.

	(k)
	Litigation:    There is no litigation, arbitration or other proceeding or governmental investigation pending or, to the best
of the Borrower's and the Guarantors' knowledge, threatened against or relating to the Borrower or any of the Guarantors or any of their property, assets, or business, including any of the Properties,
which, if decided adversely, could result in a Material Adverse Change or negatively affect the prospects for repayment of the Loan.

	(l)
	Taxes:    Except as could not be reasonably expected to have a Material Adverse Effect, the Borrower and each Guarantor have
filed all tax returns which are required to be filed, paid all Taxes shown as due thereon or as assessed or reassessed, except to the extent that any assessment or reassessment is being contested
diligently and in good faith, including interest and penalties which are due and payable and have provided adequate reserves for payment of any tax the payment of which is being contested.

	(m)
	Governmental Registrations, Approvals, Etc.:    No approval, authorization, consent or other order of, and no designation,
filing, further registration, qualification or recording with, any Governmental Authority, domestic or foreign, is legally required to authorize or is otherwise required in connection with or for the
execution, delivery or performance by the Borrower and/or any of the Guarantors and/or MEC of the Loan Documents, except (i) as have already been obtained, (ii) for the Gulfstream Loan
OHRC Approval (iii) for the Gulfstream Loan Zoo Trust Consent and (iv) except as are otherwise contemplated by the terms hereof. 

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	(n)
	Material Assets:    The Borrower and each of the Guarantors owns or has legally enforceable rights to use all material assets
(including real property and licences), contracts, and other documents necessary to conduct its business and that (a) all such assets (other than permits and licences) have been assigned,
pledged, mortgaged or otherwise encumbered pursuant to the Security and (b) all permits and licences are subject to a negative pledge.

	(o)
	Material Agreements:    The Material Agreements referred to in items (i) to (vii)(A) inclusive of the
definition of Material Agreements together with any other Material Agreements disclosed in writing to the Lender from time to time constitute all of the Material Agreements in existence. Neither the
Borrower nor the Guarantors, nor, to the best knowledge of the Borrower and the Guarantors, any other party thereto, is in breach of or in default of any material obligation thereunder except those in
respect of which the Borrower has advised the Lender in writing from time to time and of which the Lender has indicated in writing its satisfaction. To the best of the knowledge of the Borrower and
the Guarantors, the Material Agreements are in good standing and no event has occurred which, with the passage of time or the giving of notice or both, would constitute an event of default under any
of the Material Agreements.

	(p)
	Title:    The Borrower has good and marketable title in fee simple to the Gulfstream/Aventura Properties free and clear of
any Encumbrance of any nature except Permitted Encumbrances. The Remington Guarantor has a good and valid leasehold interest to the Remington Lands and has a good and valid ownership interest in the
other part of the Remington Property, in each case, free and clear of any Encumbrance of any nature except Permitted Encumbrances, and the Palm Meadows Guarantor has good and marketable title in fee
simple to the Palm Meadows Training Center Property free and clear of any Encumbrance of any nature except Permitted Encumbrances. No Person or entity has any option to acquire ownership of any of
the Properties.

	(q)
	Occupancy Agreements:    The list of all of the existing material leases, agreements to lease, licences and other forms of
occupancy agreements affecting any of the Properties (collectively, the "Occupancy Agreements") provided to the Lender in writing constitutes all of the
Occupancy Agreements now in existence. All of the Occupancy Agreements are in good standing and to the best knowledge of the Borrower and/or any of the Guarantors, none of the parties thereto is in
default of any material obligation thereunder except those in respect of which the Borrower has advised the Lender in writing from time to time and of which the Lender has indicated in writing its
satisfaction. 

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	(r)
	By-law Compliance:    All by-laws, zoning, licences, certificates, consents, approvals, rights,
permits and agreements required to enable the Gulfstream Facilities to be reconstructed and to enable the Properties to be used, operated and occupied in their current and intended manner are being
complied with or have been obtained and are in good standing, or, to the extent that any have not already been obtained, the same are not yet required and, if not yet required but the same are
material, the Borrower and the Guarantors have no reason to believe that the same will not be available prior to the time that the same are so required. All building services required for the proper
functioning of the Properties have been obtained, are functioning properly and are fit and suitable for their intended purpose.

	(s)
	Information Provided:    All information (other than financial projections) furnished or made available by the Borrower
and/or any of the Guarantors to the Lender to induce the Lender to enter into or maintain this Agreement is true, accurate and complete in all material respects and does not omit to state any material
fact, and all financial projections furnished or made available by the Borrower and/or any of the Guarantors to the Lender have been prepared based on reasonable assumptions and neither the Borrower
nor any of the Guarantors has any knowledge or information which would materially adversely affect such financial projections. The Borrower (and each of the Guarantors) has disclosed in writing
to the Lender everything to which it has knowledge regarding the business, operations, property, financial condition, or business prospects of itself, and each of the Properties which could result in
a Material Adverse Change.

	(t)
	Improvements:    Except as disclosed to the Lender in writing, the present use of each Property complies, and the future use
of each Property will comply, in all material respects, with all: (a) applicable legal and contractual requirements with regard to the use, occupancy, construction and operation thereof,
including, without limitation, all zoning, subdivision, environmental, flood hazard, fire safety, health, handicapped facilities, building and other laws, ordinances, codes, regulations, orders and
requirements of any Governmental Authority, including the Gulfstream Development Agreement and the Remington Development Agreement; (b) building, occupancy and other permits, licences and
approvals; and (c) declarations, easements, rights-of-way, covenants, conditions and restrictions of record.

	(u)
	Properties Access:    The Properties are accessible through all current access points, each of which connects or, upon the
completion of the contemplated development of the Properties, will connect, directly to a fully improved and dedicated road accepted for maintenance and public use by the Governmental Authority having
jurisdiction.

	(v)
	Utilities:    All utility services necessary and sufficient for the construction, use or operation of the Properties
(now and as contemplated by the Borrower and the Guarantors in the future) are currently connected or, upon the completion of the contemplated development of the Gulfstream Property, will be
connected, at the boundary of the applicable Property, as the case may be, directly to lines owned by the applicable utility and lying in dedicated roads, including water, storm, sanitary sewer, gas,
electric and telephone facilities. 

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	(w)
	Flood Hazards/Wetlands:    None of the Properties is situated in an area designated as having special flood hazards as
defined by the Flood Disaster Protection Act of 1973, as amended, or as wetlands by any Governmental Authority having jurisdiction over any of
the Properties.

	(x)
	Environmental Conditions:    Except as disclosed in the Environmental Disclosure:

	(i)
	each
of the Properties is in material compliance with all applicable Environmental Laws and all applicable Safety Laws, and all operations and activities on or at each
of the Properties are in material compliance with all applicable Environmental Laws and all applicable Safety Laws and to the knowledge of the Borrower and each of the Guarantors, there are no current
facts, circumstances or conditions that are reasonably likely to materially affect such continued compliance;

	(ii)
	neither
the Borrower nor any of the Guarantors has received any, or has knowledge of any, threatened, Order, notice, citation, directive, inquiry, summons or warning,
verbal, written or otherwise, or any other written communication from: (A) any Governmental Authority or private citizen, whether acting or purporting to act in the public interest or
otherwise; (B) the current or prior owner, occupant or operator of any of the Properties; or (C) any other Person to whom any of the Borrower and any of the Guarantors could be
reasonably held liable, of any actual or potential violation or failure to comply with any Environmental Law or Safety Law or of any actual or potential obligation to undertake or bear the cost of any
Environmental or Safety Liability, including with respect to any Hazardous Activity in respect of the Properties or any adjacent real property;

	(iii)
	the
Borrower and each of the Guarantors have obtained all material Environmental Consents and Safety Consents and have obtained or are in the process of obtaining all
non-material Environmental Consents and Safety Consents, in each case as required for their use and operation of the Properties and all such obtained Environmental Consents and Safety
Consents are in good standing and the Borrower and each of the Guarantors are in compliance with all terms and conditions of such Environmental Consents and Safety Consents;

	(iv)
	there
are no pending or, to the knowledge of the Borrower or any of the Guarantors, threatened, claims, encumbrances or restrictions of any nature resulting from or
constituting any material Environmental or Safety Liability or arising under or pursuant to any Environmental Law or Safety Law affecting the Borrower or any of the Guarantors or either of the
Properties or offsite location; 

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	(v)
	to
the knowledge of the Borrower and each of the Guarantors, there is no material amount of Hazardous Materials present at, near or from either of the Properties,
including any Hazardous Materials contained in barrels, aboveground or underground storage tanks, landfills, land deposits, surface impoundments, dumps, equipment (whether movable or fixed) or other
containers, either temporary or permanent, and deposited or located in land, water, sumps, containment ponds or any other part of any facility or incorporated into any structure therein or thereon
except in the ordinary course of business consistent with past practice and for which all necessary environmental disclosures have been made to Governmental Authorities;

	(vi)
	to
the knowledge of Borrower and each of the Guarantors, there has been no material Release or Threat of Release of any Hazardous Materials at or from any location
where any Hazardous Materials were generated, manufactured, refined, transferred, produced, imported, used, processed, transported, stored, handled, treated, disposed, recycled or received from the
Borrower and/or any of the Guarantors;

	(vii)
	to
the knowledge of the Borrower and each of the Guarantors, there are no aboveground or underground storage tanks in or associated with either of the Properties, that
would materially impact any of the Properties;

	(viii)
	to
the knowledge of the Borrower and each of the Guarantors, none of the Properties contain any wetlands or other sensitive, endangered or protected areas or species
or flora or fauna that would materially impede the Remington Construction or the Reconstruction and/or any currently proposed development of the Palm Meadows Training Center Property;

	(ix)
	to
the knowledge of the Borrower and each of the Guarantors, there are no facts or circumstances at the Properties that could form the basis for the assertion of any
material Environmental or Safety Liability against the Borrower and/or any of the Guarantors, including any material Environmental or Safety Liability arising from current environmental or health and
safety practices;

	(x)
	to
the knowledge of the Borrower and each of the Guarantors, neither the Borrower nor any of the Guarantors has compromised or released any insurance policies, or waived
any rights under insurance policies, that may provide coverage for any Environmental or Safety Liability, where such compromise, release or waiver would have a Material Adverse Effect;

	(xi)
	to
the knowledge of the Borrower and each of the Guarantors, neither the Borrower nor any of the Guarantors has assumed the liability of any other Person or entity for,
and has not agreed to indemnify any other Person or entity against, claims arising out of the Release of Hazardous Materials into the Environment other than on or from the Properties or other claims
under Environmental Laws and Safety Laws other than claims with respect to the Properties; 

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	(xii)
	to
the knowledge of the Borrower and each of the Guarantors, the Borrower and the Guarantors have delivered to the Lender true and complete copies of any and all
reports, studies, audits, analyses, evaluations, assessments or monitoring data which could reasonably be considered to contain a material fact pertaining to Hazardous Materials or Hazardous
Activities in, on, under or related to any of the Properties, the operations and approval of development of any of the Properties, compliance by the Borrower and any of the Guarantors with
Environmental Laws and Safety Laws or any actual or potential Environmental or Safety Liability of any of the Relevant Entities with respect to the Properties;

	(xiii)
	the
Borrower and each of the Guarantors are not aware of any material conflicts or disagreements between any Governmental Authorities and the Borrower and each of the
Guarantors regarding environmental matters; and

	(xiv)
	the
Borrower and each of the Guarantors do not intend as at the date of this Agreement to decrease in any material way the resources available to the Relevant Entities
to address issues under Environmental Laws or Safety Laws.

	(y)
	Taxes/Assessments:    There are no unpaid or outstanding real estate or other taxes or assessments on or against any of the
Properties or any part thereof which are not overdue. Upon the completion of the Reconstruction, the Tax bills affecting the Gulfstream Property will cover the entire Gulfstream Property and will not
cover or apply to any other property. Neither the Borrower nor any Guarantors have received any written notice of any supplemental Taxes which may be owing or otherwise assessed which are
not overdue.

	(z)
	Eminent Domain:    There is no eminent domain or condemnation proceeding pending or, to the best of the Borrower's knowledge
or any of the Guarantors' knowledge, threatened, relating to any of the Properties.

	(aa)
	Compliance:    There are no alleged or asserted violations of law (including, without limitation, all racing and gaming laws
and regulatory requirements), municipal ordinances, public or private contracts, declarations, covenants, conditions, or restrictions of record, or other requirements with respect to either of the
Properties which if enforced would or are likely to result in a Material Adverse Change.

	(bb)
	Employee Benefit Plans:    Neither the Borrower nor any of the Guarantors sponsors any pension plan, as defined
in ERISA. 

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	(cc)
	Labour Controversies:    There are no labour controversies pending or threatened against the Borrower and/or the Guarantors
which, if adversely determined, could result in a Material Adverse Change.

	(dd)
	Foreign Ownership:    Neither the Borrower nor any of the Guarantors is or will be a "foreign corporation", "foreign
partnership", "foreign trust", "foreign estate", "foreign person", "affiliate" of a "foreign person" or a "United States intermediary" of a "foreign person" within the meaning of the IRC,
Sections 897 and 1445, the Foreign Investments in Real Property Tax Act of 1980, the International Foreign
Investment Survey Act of 1976, the Agricultural Foreign Investment Disclosure Act of 1978, or the regulations promulgated
pursuant to such Acts or any amendments to such Acts.

	(ee)
	Solvency:    The Borrower and each of the Guarantors is solvent, able to pay its debts as such debts become due, has capital
sufficient to carry on its business and transactions and all businesses and transactions in which it is about to engage, and the value of its property at a fair valuation is greater than the sum of
its debts. Neither the Borrower nor any of the Guarantors will be rendered insolvent by the execution and delivery to the Lender of the Loan Documents or by the transactions contemplated thereunder,
and no: (i) assignment for the benefit of the creditors of any of them; (ii) appointment of a receiver for any of them or for the property of any of them; or (iii) bankruptcy,
reorganization, or liquidation proceeding, is pending or threatened (whether voluntary or involuntary) or has been instituted by or against any of them.

	(ff)
	Casualty:    Except for the Reconstruction, and the Remington Construction, there is no damage or destruction to any part of
the Properties by fire or other casualty that has not been repaired.

	(gg)
	No Agreement to Sell Assets:    Except as specifically set forth in the MEC Recapitalization Plan, the Borrower and each of
the Guarantors do not have any legal obligation, absolute or contingent, to any Person or entity to sell any of their assets, except in the ordinary course of business consistent with past practice,
or to effect any merger, consolidation or other reorganization of the Borrower or any of the Guarantors with any other Person or entity or to enter into any agreement with respect thereto.

	(hh)
	Business Purpose:    The proceeds of the Loan to the Borrower pursuant to the Loan Documents will be used by the Borrower
solely and exclusively for the proper business purposes set out in Section 2.1. The Borrower is not in the business of extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System), and no proceeds of any loans and/or advances made by the Lender to or for the benefit of the
Borrower will be used to purchase or carry margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock. 

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	(ii)
	Consideration:    The Loan Documents were executed and delivered by the Borrower to the Lender in good faith and in exchange
for a reasonably equivalent value without any intent to hinder, delay or defraud any creditor of the Borrower.

	(jj)
	Unmatured Event of Default or Event of Default:    No Unmatured Event of Default or Event of Default has occurred and
is continuing.

	(kk)
	Other Regulations:    Neither the Borrower nor any Guarantor nor MEC is subject to regulation under the  Investment Company Act of 1940, the Public Utility Holding Company Act of 1935, the  Federal Power Act, the Interstate Commerce Act, any state public utilities code or to any other law,
regulation, rule, limitation or restriction of a Governmental Authority limiting its ability to incur indebtedness.

	(ll)
	Patent and Other Rights:    Each of the Borrower and each of the Guarantors owns, licences or otherwise has the full right
to use, under validly existing agreements, all patents, licences, trademarks, trade names, trade secrets, service marks, copyrights and all rights with respect thereto, which are required to conduct
their businesses as now conducted.

	(mm)
	Margin Stock:    None of the Borrower nor any of the Guarantors nor MEC owns Margin Stock which, in each case, in the
aggregate, would constitute over 25% of the assets of such Person and no proceeds of the Loan will be used to purchase or carry, directly or indirectly, any Margin Stock or to extend credit, directly
or indirectly, to any Person for the purpose of purchasing or carrying any Margin Stock. The term "Margin Stock" shall have the meaning given to such
term in Regulation U issued by the Board of Governors of the Federal Reserve System.

	(nn)
	Adequate Insurance:    All of the property of the Borrower and the Guarantors is insured with good and responsible companies
against fire and other casualties in the same manner and to the same extent as such insurance is usually carried by Persons carrying on a similar business and owning similar property located in the
same general area as the property owned by the Borrower or Guarantor, as the case may be, including the Properties, and the Borrower and each of the Guarantors maintains or causes to be maintained
with good and responsible insurance companies adequate insurance against business interruption with respect to the operations of all of such property and liability on account of damage to Persons or
property, including damage resulting from product liability, and under all applicable workers' compensation laws, in the same manner and to the same extent as such insurance is usually carried by
Persons carrying on a similar business and owning similar property.

	(oo)
	Legal Name:    None of the Borrower nor any of the Guarantors conducts business under any corporate names other than its
legal name, and the Borrower and each of the Guarantors have, in the past, held themselves out as separate entities and have conducted operations under their own respective names; 

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	(pp)
	USA Patriot Act:    Neither the Borrower, nor any of the Guarantors nor MEC nor any Affiliate thereof, is identified in any
list of known or suspected terrorists published by any United States government agency (individually, as each such list may be amended or supplemented from time to time, referred to as a
"Blocked Persons List") including, without limitation, (i) the annex to Executive Order 13224 issued on September 23, 2001 by the President of the United States and
(ii) the Specially Designated Nationals List published by the United States Office of Foreign Assets Control.

	(qq)
	Licences and Permits:    Neither the Borrower nor any Guarantor has pledged any licences or permits, held by it or any of
its subsidiaries, to a third party except that the Borrower has provided a negative pledge of its licences and permits to the Lender pursuant to the Remington Loan Agreement.

	(rr)
	Disclosure:    All information provided to the Lender relating to the financial condition, business, affairs and prospects
of the Borrower and the Guarantors (other than financial projections), consisting of those documents and materials made available for review by the Borrower and referenced in binders of materials
compiled by the Borrower to assist the Lender and the Lender's counsel in connection with their due diligence review (but, for greater certainty, excluding any work product of the Lender or the
Lender's counsel), together with any information set out in the Disclosure Schedule, was true, accurate and complete in all material respects and omits no material fact necessary to make such
information not misleading in light of the circumstances under which such information was provided. All information (other than financial projections) furnished or made available by the Borrower
and/or any of the Guarantors to the Lender to induce the Lender to enter into or maintain this Agreement is true, accurate and complete in all material respects and does not omit to state any material
fact. All financial projections furnished or made available by the Borrower and/or any of the Guarantors to the Lender have been prepared in good faith, on the basis of all known facts and using
reasonable assumptions and the Borrower and each of the Guarantors believes such projections to be fair and reasonable and neither the Borrower nor any of the Guarantors has any knowledge or
information which would materially adversely affect such financial projections. The Borrower and each of the Guarantors has disclosed in writing to the Lender everything to which it has knowledge
regarding the business, operations, property, financial condition, or business prospects of itself, and each of the Properties which could result in a Material Adverse Change. 

6.2   Survival of Borrower's and Guarantors' Representations  

        All representations and warranties of the Borrower and the Guarantors in this Agreement, the Loan Documents and all representations and warranties in any
certificate delivered by the Borrower pursuant hereto and thereto shall survive execution of the Loan Documents and the making of the Loan, and may be relied upon by the Lender as being true and
correct with effect as of the date given (either initially or as brought down) until the Loan is fully and irrevocably paid. Without derogating from the foregoing, the representations and warranties
of the Borrower and each of the Guarantors set out in Section 6.1(x) shall survive the payment and performance of the Indebtedness, liabilities and obligations of the Borrower under, and the
termination and release by the Lender of, this Agreement and the other Loan Documents. 

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6.3   Lender's Representations and Warranties  

        The Lender hereby represents and warrants that: (a) this Agreement and the other Loan Documents executed by the Lender have each been duly authorized,
executed and delivered by the Lender and each constitutes the legally binding obligation of the Lender, enforceable against the Lender in accordance with its respective terms; (b) the Lender is
the Zug Branch of a partnership duly formed, validly existing and in good standing under the laws of Iceland; and (c) the Lender has full right, power and authority to execute this Agreement
and those other Loan Documents executed by it on its own behalf and no consents of third parties are required which have not been, or will not be, obtained. 

ARTICLE 7

AFFIRMATIVE COVENANTS  

7.1   Covenants  

        The Borrower and the Guarantors covenant and agree with the Lender that from the date of this Agreement and thereafter until the Loan (including interest
thereon), and all fees and expenses to be paid by the Borrower to the Lender hereunder, are paid in full: 

	(a)
	Payments:    The Borrower shall duly and punctually pay to the Lender all amounts payable by it hereunder when due.

	(b)
	Corporate Existence:    The Borrower shall maintain in good standing its corporate existence under the laws of the State of
Florida and qualify and remain duly qualified to do business and own property in each jurisdiction in which such qualification is necessary in view of its business and operations, the Palm Meadows
Guarantor shall maintain in good standing its corporate existence under the laws of the State of Delaware and qualify and remain duly qualified to do business and own property in each jurisdiction in
which such qualification is necessary in view of its business and operations and the Remington Guarantor shall maintain in good standing its corporate existence under the laws of the State of Oklahoma
and qualify and remain duly qualified to do business and own property in each jurisdiction in which such qualification is necessary in view of its business and operations.

	(c)
	Compliance with Laws:    The Borrower and each of the Guarantors shall comply, in all material respects, with all Applicable
Legal Requirements (including environmental laws, rules, regulations and orders and racing and gaming laws, rules, regulations and orders), such compliance to include, without limitation, paying when
due all Taxes, assessments and governmental charges or levies imposed upon it or upon its income or profits or any property belonging to it except to the extent contested in good faith and for which
adequate reserves are maintained. 

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	(d)
	Books and Records; Reporting:

	(i)
	The
Borrower and each of the Guarantors shall keep and maintain (and provide the Lender and its representatives and agents with reasonable access and copies of
same if so requested by the Lender) at all times at the Borrower's address (in the case of the Borrower) or at each Guarantor's address (in the case of the Guarantors), or at MEC's
address, or at such other place as the Lender may approve in writing, complete and accurate books of accounts and records adequate to reflect the results of the operation of each of the Properties,
any financial statements required to be provided to the Lender pursuant to any of the Mortgages and copies of all written contracts, correspondence and other documents affecting any of the Properties.
Without limiting the foregoing, the Borrower and each Guarantor agrees to deliver the following to the Lender, in duplicate:

	(A)
	copies
of any notices which any contractor delivers to the Borrower and/or such Guarantor under or pursuant to the Construction Contracts or the Remington Construction Contracts which
relate to (I) the occurrence of any default or event of default or other event that, with the passage of time, giving of notice or both, shall become a default or event of default under any of
the Construction Contracts, the Tranche 2 Slots Facilities Contracts, the Tranche 3 Slots Facilities Contracts or the Remington Construction Contracts, as the case may be,
(II) any situation or event which might give rise to the payment by the Borrower and/or any of the Guarantors of liquidated damages or other monetary amounts, (III) an application for
planning or development approval relating to any portion of any of the Properties, (IV) any matter relating to the design, layout, alignment or realignment, approval or construction of the
Gulfstream Facilities, the Tranche 2 Slots Facilities, the Tranche 3 Slots Facilities or the Remington Facilities or (V) any matter relating to the design, layout, approval or
construction of utility easements, lines, equipment and infrastructure of any of the Properties;

	(B)
	upon
the written request of the Lender, and contemporaneously with the quarterly and year-end financial statements required under Section 7.1(d)(ii), a certificate
(a "Compliance Certificate") signed by an officer of the Borrower and an officer of each Guarantor stating that to the best of his or her
knowledge after having made reasonable inquiry and without personal liability to such officer:

	(I)
	no
Unmatured Event of Default or Event of Default has occurred and is continuing or if any such Unmatured Event of Default or Event of Default has occurred and is
continuing, a statement as to the nature and status thereof, including specifying the relevant particulars and the period of existence thereof and the action taken, being taken or proposed to be taken
by or on behalf of the Borrower or any Guarantor with respect thereto, and stating that otherwise no Unmatured Event of Default or Event of Default has occurred during such fiscal quarter or fiscal
year, as applicable, which is still continuing; 

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	(II)
	confirming
that no distributions, dividends, transfers, loans or other payments have been made by the Borrower or the Guarantors in contravention of this
Agreement; and

	(III)
	in
each case where a Material Adverse Change has occurred, specifying the relevant particulars, the period of existence and the action taken, being taken or proposed
to be taken by or on behalf of the Borrower or any Guarantor with respect thereto, 

such
certificate to relate to the period from the end of the then last preceding fiscal quarter or fiscal year, as applicable, of the Borrower or such Guarantor in question to and including the date
of such certificate. 

	(ii)
	The
Borrower and the Guarantors shall prepare and furnish (or cause to be so prepared and furnished) to the Lender:

	(A)
	as
soon as available and in any event within 40 days after the end of each month, an unaudited income statement and a balance sheet for the Borrower and each of the Guarantors
for the preceding month and such other documentation as the Lender may reasonably request from time to time certified as true, correct and complete by the Borrower and each of the Guarantors,
as applicable;

	(B)
	as
soon as available and in any event within 40 days after the end of each fiscal quarter of the Borrower and the Guarantors, a copy of the unaudited financial statements of
the Borrower and each Guarantor for such fiscal quarter;

	(C)
	as
soon as available and in any event within 120 days after the end of the fiscal year of the Borrower and the Guarantors, (I) a copy of the audited (or, in the case of
the Palm Meadows Guarantor (unaudited)) annual financial statements for the fiscal year just ended of the Borrower and each of the Guarantors fairly presenting the financial condition and the results
of the operations of the Borrower and each Guarantor, including, without limitation, a balance sheet, an income statement and such additional reasonable information as the Lender may reasonably
request from time to time and (II) a copy of the unaudited Combined financial statements of the Borrower and the Additional Guarantors, and including the same type of statements and other
information as are contained in the audited financial statements referred to in (I) above; 

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	(D)
	within
40 days after the end of each fiscal quarter (or more often if requested by the Lender), the Borrower shall submit to the Lender a detailed written statement of
the status of the Reconstruction, the Tranche 2 Slots Facilities Initiative and the Tranche 3 Slots Facilities, including an updated budget, if applicable, detailed information regarding
infrastructure improvements and development costs, the status of the Construction Contracts, the Tranche 2 Slots Facilities Contracts and the Tranche 3 Slots Facilities Contracts
(and the Borrower's performance thereunder), including detailed information regarding amounts spent or incurred to such date and required to be spent or incurred to complete the Reconstruction,
the Tranche 2 Slots Facilities Initiative, and the Tranche 3 Slots Facilties Initiative as of the last day of such fiscal quarter, and any other matters reasonably requested by
the Lender;

	(E)
	as
soon as practicable and in any event not later than 40 days after the commencement of each fiscal year of the Borrower, projected individual and Combined financial
statements for the following fiscal year, including in each case, projected balance sheets, statements of income and retained earnings and statements of cash flow of the Borrower and the Additional
Guarantors, all in reasonable detail and in any event to include projected operating and capital budgets;

	(F)
	within
40 days after the commencement of each fiscal year of the Borrower and the Additional Guarantors, a business plan for the Borrower and each Additional Guarantor for the
two subsequent fiscal years in form, scope and substance acceptable to the Lender and, in the event that any material change is subsequently proposed to any such business plan, within five days
thereafter, written notice to the Lender providing reasonable details of the proposed change, to be followed as soon as practicable thereafter with a modified business plan reflecting such material
change;

	(G)
	until
the Gulfstream Facilities Completion Date, within 20 days after the end of each calendar month the Borrower will make available to the Lender, and, if requested, provide
a report containing, the following information for such calendar month:

	(I)
	a
detailed cost report in respect of the Reconstruction; 

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	(II)
	a
listing of all accounts payable reflecting the aging thereof and identifying those which are to be paid out of any reasonably contemporaneous
Tranche 1 Advance;

	(III)
	a
listing of all outstanding cheques in respect of the Reconstruction;

	(IV)
	details
of all monies held to satisfy construction liens in respect of the Reconstruction; and

	(V)
	any
material adverse changes to the budget for the Gulfstream Facilities, including any increase or decrease thereto which individually or in the aggregate shall exceed
$100,000;

	(H)
	if
reasonably requested by the Lender, the Borrower will provide supporting documentation for all receipts and expenditures disclosed on any of the aforementioned financial statements
and reports, including, but not limited to, bank statements, contracts, invoices, copies of checks and general ledgers. To the extent the Lender reasonably requires based on adverse or incorrect
matters disclosed in the Borrower's records or computations, the Lender may audit the accuracy of the Borrower's records and computations at any time and the reasonable costs and expenses of any such
audit shall be paid by the Borrower. If an Event of Default shall be continuing, the Lender shall be free to conduct such audits as the Lender may deem reasonably necessary and such shall be paid for
by the Borrower; and

	(I)
	until
the Tranche 2 Slots Facilities Opening Date, within 20 days after the end of each calendar month the Borrower will make available to the Lender, and, if requested,
provide a report containing, the following information for such calendar month:

	(I)
	a
detailed cost report in respect of the Tranche 2 Slots Facilities Initiative;

	(II)
	a
listing of all accounts payable reflecting the aging thereof and identifying those which are to be paid out of any reasonably contemporaneous
Tranche 2 Advance;

	(III)
	a
listing of all outstanding cheques in respect of the Tranche 2 Slots Facilities Initiative;

	(IV)
	details
of all monies held to satisfy construction liens in respect of the Tranche 2 Slots Facilities Initiative; and 

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	(V)
	any
material adverse changes to the budget for the Tranche 2 Slots Facilities Initiative, including any increase or decrease thereto which individually or in the
aggregate shall exceed $50,000;

	(J)
	until
the Tranche 3 Repayment Commencement Date, within 20 days after the end of each calendar month the Borrower will make available to the Lender, and, if requested,
provide a report containing, the following information for such calendar month:

	(I)
	a
detailed cost report in respect of the Tranche 3 Slots Facilities Initiative;

	(II)
	a
listing of all accounts payable reflecting the aging thereof and identifying those which are to be paid out of any reasonably contemporaneous
Tranche 3 Advance;

	(III)
	a
listing of all outstanding cheques in respect of the Tranche 3 Slots Facilities Initiative;

	(IV)
	details
of all monies held to satisfy construction liens in respect of the Tranche 3 Slots Facilities Initiative; and

	(V)
	any
material adverse changes to the budget for the Tranche 3 Slots Facilities Initiative, including any increase or decrease thereto which individually or in the
aggregate shall exceed $50,000;

	(iii)
	Within
40 days after the end of each fiscal quarter (or more often if requested by the Lender), the Borrower shall submit to the Lender a detailed
written statement of the status of any remediation activities in respect of the Properties (A) required under the Environmental Reports to comply with Environmental Law or (B) requested
by the Lender, acting reasonably, including, without limitation, a statement as to remediation work performed to date and remediation work remaining to be completed and, in addition, within one month
after the end of each third of a calendar year, commencing with the third of a calendar year ending August 31, 2005, the Borrower shall submit to the Lender, if requested, an update prepared by
the author of each Environmental Report satisfactory to the Lender of (x) each of the Environmental Reports or (y) the most recent update provided to comply herewith, including in such
update the amounts expended in respect of remediation during such period.

	(e)
	Additional Information:    Representatives of the Borrower and the Guarantors shall meet regularly with the Lender at the
Lender's request to discuss the status of the Properties. In addition, the Borrower and the Guarantors will make financial officers available to discuss with the Lender, upon reasonable prior notice
to the Borrower or the Guarantors, as applicable, the affairs, finances and accounts of the Borrower and the Guarantors and, to the extent the same is relevant to the Loan or the Security, its
Affiliates all at such reasonable times and as often as the Lender may reasonably request. The Borrower and each of the Guarantors shall deliver or make available to the Lender copies of all business
plans, independent authorized gaming analyses, appraisals, and other documentation in the possession or control of the Borrower and/or the Guarantors (and/or any Affiliate of the Borrower and/or the
Guarantors) that relates in any way to the Properties, or to the businesses to be conducted by the Borrower and/or any of the Guarantors on Properties, including any additional information that may be
reasonably requested by the Lender (if any) in connection with the foregoing. All costs and expenses related to such reporting shall be apportioned to, and shall form part of, the Loan Amount
(and shall be deemed to have been advanced by the respective lender thereunder), such costs and expenses to be apportioned by the Lender acting reasonably. 

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	(f)
	Use of Proceeds:    The Borrower shall use the proceeds of the Loan only as authorized in Section 2.1 hereof and
subject to the terms and provisions of the Loan Documents and for no other purpose, without the Lender's prior written consent, in the Lender's sole discretion. Except as expressly permitted herein,
no portion of the proceeds of the Loan shall be used by the Borrower to pay any amounts to MEC or any Affiliate, and in no event shall any amounts be paid in any manner that might cause the borrowing
or the application of such proceeds to violate Regulation G, Regulation U, Regulation T or Regulation X or any other regulation of the Board of Governors of the
Federal Reserve System or to violate the Securities and Exchange Act of 1934.

	(g)
	Maintenance of the Properties:    Subject to work done in connection with the Reconstruction, the Tranche 2 Slots
Facilities Initiative, the Tranche 3 Slots Facilities Initiative and the Remington Construction, the Borrower and the Guarantors shall keep the Properties, including all buildings and
improvements now or hereafter situated thereon, all equipment incidental to any of the Properties, in good condition subject to reasonable wear and tear, not commit or permit any waste thereof, make
all necessary or advisable repairs, replacements and improvements and complete and restore promptly and in good workmanlike manner any building, improvements or other items of any of the Properties
which may be damaged, or destroyed, and pay when due all costs incurred therefor.

	(h)
	Gulfstream Property Operation and Completion:    The Borrower shall at all times remain the operating company for the
Gulfstream Property and will diligently cause to be done all things necessary to carry out to completion the Reconstruction, the Tranche 2 Slots Facilities Initiative and the Tranche 3
Slots Facilities Initiative in accordance with plans and specifications therefor as are approved by the Lender, subject to such changes thereto as the Borrower may consider necessary and the Lender
shall have approved, acting reasonably (the "Plans"), and in accordance with all development and construction agreements related thereto, subject
to such changes thereto as the Borrower may consider necessary and the Lender shall have approved, acting reasonably, with all convenient speed and to complete such construction and development as
promptly as reasonably practicable and substantially in accordance with the Plans and such agreements in each case to the extent amended as aforesaid. Without derogating from the foregoing, all
applications for Governmental Authorizations in respect of the Plans, the Reconstruction, the Tranche 2 Slots Facilities Initiative and/or the Tranche 3 Slots Facilities Initiative,
shall, to the extent that the scope, form and substance or terms thereof are inconsistent or otherwise not in accordance with the Plans, be submitted to the Lender for its review and approval. 

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	(i)
	Conduct of Reconstruction, the Tranche 2 Slots Facilities Initiative and the Tranche 3 Slots Facilities
Initiative.    The Reconstruction, the Tranche 2 Slots Facilities and the Tranche 3 Slots Facilities will be constructed in a good and workmanlike
manner by the Borrower using quality materials in accordance with the plans and specifications approved by the Lender, acting reasonably.

	(j)
	Compliance with Agreements:    The Borrower and each of the Guarantors shall carry out all its obligations under this
Agreement, the Security and the Material Agreements and shall use its reasonable efforts to cause the other parties thereto to do likewise.

	(k)
	Notice of Default:    The Borrower and each of the Guarantors shall provide the Lender with a copy of all written notices,
correspondences and reports received or delivered by the Borrower, any Guarantor or MEC in respect of default under any of the Organizational Documents, Occupancy Agreements, Construction Contracts,
the Tranche 2 Slots Facilities Contracts, the Tranche 3 Slots Facilities Contracts or Material Agreements and notices of violations of any Governmental Rule received by the Borrower or
any of the Guarantors relating to any of the Properties, including, without limitation, all racing and/or gaming licences, the Gulfstream Development Agreement and/or any of the Construction
Contracts, the Tranche 2 Slots Facilities Contracts and/or the Tranche 3 Slots Facilities Contracts. The Borrower shall furnish, or cause to be furnished, to the Lender, immediately upon
becoming aware of the existence of an Event of Default or any Unmatured Event of Default, written notice of the existence of any such event or the existence of any such condition.

	(l)
	Construction Cost Overruns:    The Borrower shall promptly fund, at its own cost and expense, all cost overruns for the
Reconstruction, the Tranche 2 Slots Facilities Initiative and/or the Tranche 3 Slots Facilities Initiative such that the principal amount yet to be advanced hereunder for the
Reconstruction, the Tranche 2 Slots Facilities Initiative, and/or the Tranche 3 Slots Facilities Initiative shall not be less than the remaining cost to complete the Reconstruction,
Tranche 2 Slots Facilities Initiative and/or the Tranche 3 Slots Facilities Initiative, respectively.

	(m)
	Conduct of Business:    The Borrower and each of the Guarantors shall conduct its business in a reasonable and prudent manner
and, subject to the terms hereof, will take all reasonable steps to maintain and preserve its assets and properties and to maintain full and complete corporate and financial records. Neither the
Borrower nor any of the Guarantors shall engage in any business or activity other than that consistent with past practice or as provided in the MEC Recapitalization Plan and as contemplated hereunder,
which permitted business or activity shall include slots or other forms of alternative gaming permitted in connection with horse racing and parimutuel gaming. 

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	(n)
	Transactions with Affiliates; Separate and Distinct Business:    The Borrower shall conduct its operations as a separate and
distinct business and shall not, save as may be disclosed in the MEC Recapitalization Plan: (i) enter into any contract or agreement with any shareholder, member, partner, principal or
Affiliate, except upon market terms and conditions that are substantially similar to those that would be available to a similarly situated arm's length third party; (ii) commingle its assets or
funds with the assets or funds of any of its shareholders, members, partners, principals, Affiliates or any other entity; (iii) acquire or own any material assets other than the
Gulfstream/Aventura Properties and such incidental personal property as may be necessary for the operation of the Gulfstream/Aventura Properties; (iv) except in respect of the Remington Loan
Agreement, suggest that it is responsible for the debts of any third party (including any of its shareholders, members, partners, principals, Affiliates or any other entity); or (v) fail to
maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations.

	(o)
	Material Adverse Change:    Upon the happening of any Material Adverse Change, the Borrower and/or the Guarantors shall
promptly advise the Lender of such change or event.

	(p)
	Notification of Attachment or Other Action:    The Borrower and each of the Guarantors shall immediately notify the Lender in
writing of any attachment or other legal process levied or threatened against any of the Properties, or the institution of any action, suit or proceeding by or against the Borrower, any of the
Guarantors or any of the Properties, or any information received by the Borrower and/or any of the Guarantors relative to any of the Guarantors and/or the Borrower or any of the Properties, which may
adversely affect (i) the Borrower's ability to pay the Indebtedness, (ii) the value of any of the Properties or the value, validity or priority of the Lender's security interests granted
pursuant to any of the Mortgages and/or any of the other Loan Documents, (iii) any of the Guarantors' ability to perform under the Guarantees and Indemnities, or (iv) any other rights
and remedies of the Lender granted and continued pursuant to the Loan Documents.

	(q)
	Defense of Collateral:    The Borrower and the Guarantors shall pay when due all obligations, lawful claims or demands with
respect to each of the Properties which, if unpaid, might result in, or permit the creation of, any lien or encumbrance on such Property, including but not limited to all lawful claims for labour,
materials and supplies; provided that the Borrower or the applicable Guarantor shall have the right to contest any such claim so long as the Borrower or such Guarantor posts a bond acceptable to the
Lender to protect the Lender's interest in the Property, as the case may be, and, in general, do or cause to be done everything necessary to fully preserve the rights and interests of the Lender under
this Agreement and the other Loan Documents. The Borrower and the Guarantors shall at all times defend the Lender's interest in and to the Properties, and the priority position of said interest
subject to the Permitted Encumbrances, against any and all claims of any Person adverse to the Lender. The Borrower shall take all actions reasonably deemed necessary or appropriate by the Lender to
give effect to the Lender's priority of interests contemplated by this Agreement and the other Loan Documents. 

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	(r)
	Insurance:    The Borrower and the Guarantors shall maintain or cause to be maintained at all times with respect to the
Properties and their business and operations in respect thereof all customary and prudent insurance, including, without limitation, all insurance requested by the Lender, acting reasonably.

	(s)
	Taxes and Liabilities:    The Borrower and each Guarantor shall promptly pay when due all Taxes, duties, assessments and
other liabilities, except such taxes, duties, assessments and other liabilities as the Borrower is diligently contesting in good faith and by appropriate proceedings; provided that the Borrower or
such Guarantor has provided for and is maintaining adequate reserves with respect thereto.

	(t)
	Preserve Security:    The Borrower and each of the Guarantors shall upon reasonable request in writing by the Lender do,
observe and perform all matters and things reasonably within its powers necessary or expedient to be done, observed or performed for the purpose of maintaining and preserving the security interest of
the Lender as provided for herein and in the Security as valid security, perfected in the manner contemplated hereby and in the Security.

	(u)
	Payment of Obligations:    Subject to the right to contest legitimate disputes and subject, where applicable, to the provisos
in Section 7.1(q), the Borrower and each Guarantor shall pay and discharge, or cause to be paid and discharged, all its indebtedness and obligations to other Persons promptly in accordance with
normal terms and practices of its businesses, before they shall become in default, as well as all lawful claims for labour, materials and supplies which otherwise, if unpaid, might become a lien or
charge upon its properties or any part thereof.

	(v)
	Hold Disbursements in Trust:    Other than the proceeds of the Loan which will be used for the purposes set forth herein, the
Borrower will receive and hold in trust for the Lender all advances made hereunder directly to the Borrower and the Borrower will not apply the same for any other purposes.

	(w)
	Required Remediation and Environmental Actions:    Upon request of the Lender acting reasonably, the Borrower or an
Additional Guarantor, as applicable, hereby agrees to complete the requested remediation actions recommended to be taken with respect to the Properties in the Environmental Reports and not heretofore
undertaken as described in the Environmental Reports. The term "Environmental Reports" means collectively (i) the Phase I Environmental
Site Assessment and Environmental Compliance Audit in respect of the Gulfstream/Aventura Properties, prepared by Environmental Resources Management, and dated July 10, 2003, and (ii) the
environmental reports referred to in Section 4.3(n)(xii) and 4.4(n)(xii), and any updates or addenda thereto if and to the extent approved by the Lender in writing along with a reliance
letter relating thereto addressed to the Lender in form and substance satisfactory to the Lender. In connection with such required remediation actions, the Borrower shall obtain an update to the
applicable Environmental Report as and when requested by the Lender, acting reasonably, in order to confirm that the Borrower's actions, or Additional Guarantor's in respect of any required
remediation aforesaid are in conformity with Environmental Laws. In connection with each update to an Environmental Report, the Borrower or the Additional Guarantor shall obtain a reliance letter
relating thereto addressed to the Lender in form and substance reasonably satisfactory to the Lender. The Borrower and the Guarantors covenant that any soils or other materials that are removed in
connection with any remediation of any of the Properties shall be disposed of in conformity with Environmental Laws requirements at a location other than any of the Properties. 

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	(x)
	Surveys:    After the recording of any subdivision, plan of subdivision or small-scale planned development with respect to
any of the Properties, the Borrower and the Guarantors shall obtain and deliver to the Lender, at the Borrower's and Guarantors' expense, in a form reasonably acceptable to the Lender: (i) an
updated plan of survey for such Property showing such Property as so subdivided; and (ii) an endorsement to the Title Policies confirming the new legal description created by said subdivision
and affirmative insurance that the Mortgage in respect of such Property continues to encumber such Property, as subdivided and newly described.

	(y)
	Tax Deposits:    Upon written direction from the Lender after the occurrence of an Unmatured Event of Default or an Event of
Default which remains uncured, the Borrower shall immediately commence to deposit with the Lender commencing with the first interest payment due under the Loan and on the first day of each month
thereafter until the earlier of (i) the date that the Indebtedness is fully paid, and (ii) the Unmatured Event of Default or Event of Default has been cured, a sum equal to
one-twelfth (1/12) of the total annual taxes and assessments (general and special) respecting the Properties and the costs of insurance premiums, based upon the Lender's
reasonable estimate as to the amount of the taxes, assessments and premiums to be levied, assessed and incurred. The Borrower's initial deposit shall be increased by an amount equal to the Lender's
reasonable estimate of the amount of such taxes and insurance premiums to become owing on the due dates for the payment of such taxes and insurance premiums less the monthly payments to be deposited
hereunder prior to such due dates. If any such taxes or insurance premiums relating to the Properties are also related to other premises, the amount of any deposit hereunder shall be based upon the
Borrower's share of the taxes, assessments or insurance premiums, the Borrower shall apportion the total amount of the taxes, assessments or premiums levied or assessed as between such other premises
and the Properties for the purposes of computing the amount of any deposit hereunder. Such deposits shall be held without any allowance of interest. Such deposits shall be used for the payment of such
taxes, assessments and insurance premiums on the Properties on the earliest possible date when such payments become due. If the funds so deposited are insufficient to pay any such taxes, assessments
and insurance premiums for any year when the same shall become due and payable, the Borrower shall, within 10 Business Days after receipt of demand therefor from the Lender, deposit such
additional funds as may be necessary to pay such taxes, assessments and insurance premiums in full. If the funds so deposited exceed the amount required to pay such taxes, assessments and insurance
premiums for the year, the excess shall be applied on a subsequent deposit or deposits. Said deposits shall be kept in a separate, non-interest bearing account created by and in the name
of the Lender. Upon the occurrence of an Unmatured Event of Default or Event of Default, the Lender may, at its option, without being required to do so, apply any monies at the time on deposit
pursuant to this Section 7.1(y) on any of the Indebtedness, in such order and manner as the Lender may elect. When the Indebtedness has been fully paid, any remaining deposits shall be paid to
the Borrower. A security interest within the meaning of the Uniform Commercial Code of the state in which the Borrower is organized as a legal entity is hereby granted to the
Lender in and to any monies at any time on deposit pursuant to this Section 7.1(y), as additional security for the Indebtedness. Such funds shall be applied by the
Lender for the purposes made hereunder and shall not be subject to the direction or control of the Borrower. The Lender shall not be liable for any failure to apply the funds so deposited hereunder to
the payment of any particular taxes, assessments and insurance premiums unless the Borrower, while not in default hereunder, shall have requested the Lender in writing to make application of such
funds to the payment of the particular taxes, assessments or premiums for payment of which they were deposited, accompanied by the bills for such taxes, assessments or premiums. The Lender shall not
be liable for any act or omission taken in good faith or pursuant to the instruction of any party, but shall be liable only for gross negligence or wilful misconduct. 

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	(z)
	USA Patriot Act:    The Borrower and the Guarantors hereby covenant that until such time as the Indebtedness is paid in full,
they will take no action (nor fail to take any action) that would violate the PATRIOT Act, IEEPA or OFAC and will take all customary and reasonable steps to ensure that they are in compliance
with any orders issued thereunder. For purposes hereof, "IEEPA" means the International Emergency Economic Power
Act, 50 U.S.C. §1701 et. seq., "OFAC" means the U.S. Department of Treasury's Office of Foreign
Asset Control and "PATRIOT Act" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001 (Public Law 107-56) (The USA PATRIOT Act). 

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	(aa)
	Regulatory Matters:    The Remington Guarantor shall promptly seek and obtain the Approvals and Consents. The Remington
Guarantor shall keep the Lender apprised of the current status of the approval/consent process. In the event that either the Remington Loan OHRC Approval or the Remington Loan Zoo Trust Approval is
required but not obtained, and the Security to be provided by the Remington Guarantor is not duly registered in all the applicable offices of public record, in each case, on or before
October 11, 2005 or (ii) at any time the OHRC determines that it will not provide the Remington Loan OHRC Approval or, (iii) if the Remington Loan Zoo Consent is required, at any
time the Zoo Trust determines that it will not provide the Remington Loan Zoo Consent, the Lender shall have the right (exercisable in its sole and absolute discretion) to immediately terminate this
Agreement. In the event of such termination the Borrower shall immediately pay to the Lender the Loan Amount (including (and without duplication) all accrued and unpaid interest, fees, expenses
and closing costs and other Indebtedness owing as of such date), together with the Gulfstream Make-Whole Amount. Neither the Borrower nor any Guarantor will take any action which
(or fail to take any action the absence of which) would result in the withdrawal or termination of any Governmental Approval or that would disqualify the Remington Guarantor from applying for,
obtaining or receiving all necessary Governmental Authorizations to operate authorized gaming machines at the Remington Facilities.

	(bb)
	Litigation:    If the Borrower or any of the Guarantors becomes aware of any actual, pending or threatened litigation,
arbitration or other proceeding relating to the Borrower, any of the Guarantors, MEC or any of their property, assets or business, including any of the Properties which if decided adversely could
result in a Material Adverse Change, the Borrower or such Guarantor shall promptly give notice thereof to the Lender containing reasonable details thereof and the potential effect thereof.

	(cc)
	Chief Executive Office:    The Borrower and each Guarantor has advised or will advise the Lender in writing of their or
MEC's respective chief executive offices and places of business and changes thereto.

	(dd)
	Separateness of Guarantors.    Each of the Guarantors shall:

	(i)
	maintain
books and records and bank accounts separate from those of any other Person and maintain separate financial statements, except that it may also be included in
consolidated financial statements of its Affiliate;

	(ii)
	be,
and at all times hold itself out to the public and all other Persons as, a separate legal entity and correct any known misunderstandings regarding its existence as
a separate legal entity;

	(iii)
	pay
the salaries of its own employees, if any, and maintain a sufficient number of employees in light of its contemplated business operations; 

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	(iv)
	use
its own stationary, invoices and cheques;

	(v)
	file
its own tax returns with respect to itself (or consolidated tax returns, if applicable) as may be required under applicable law;

	(vi)
	except
as contemplated by the Loan Documents, not commingle or permit to be commingled its funds or other assets with those of any other Person;

	(vii)
	maintain
its assets in such a manner that it is not costly or difficult to segregate, ascertain or identify its individual assets from those of any
other Person;

	(viii)
	except
as contemplated by the Loan Documents and the Remington Loan Agreement, not guarantee or otherwise hold itself or its assets out to be responsible or available
for the debts or obligations of any Person, including any Affiliate;

	(ix)
	conduct
business in its own name;

	(x)
	within
60 days of the Closing Date, have and maintain at least one director and at least one officer different from the directors and officers of the Borrower and
the other Guarantors;

	(xi)
	hold
separate annual shareholder meetings with minutes thereof delivered to the Lender (or adopt written resolutions in lieu thereof where permitted under
applicable corporate law), with a copy of such minutes and/or resolutions provided to the Lender;

	(xii)
	hold
separate quarterly and annual Board of Directors meetings (or adopt written resolutions in lieu thereof where permitted under applicable corporate law)
with a copy of such minutes and/or resolutions delivered to the Lender; and

	(xiii)
	maintain
adequate capital in light of its contemplated business operations. 

ARTICLE 8

NEGATIVE COVENANTS  

8.1   Negative Covenants  

        Except as expressly permitted under this Agreement and the other Loan Documents, from the date of this Agreement and thereafter until the Loan has been paid in
full, the Borrower and the Guarantors covenant and agree with the Lender as follows: 

	(a)
	Licences and Permits:    Neither the Borrower nor any of the Guarantors shall pledge any of licences or permits, held by it
or any of its subsidiaries, to any third party. 

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	(b)
	Debt:    Neither the Borrower nor any Guarantor shall, directly or indirectly, incur or suffer to exist any debt or enter
into any guarantees, hypothecation, contracts or other agreements which would make the Borrower or such Guarantor liable for any debt or expense other than (i) Permitted Encumbrances,
(ii) customary trade payables and similar types of obligations that are consistent with past practice and in the ordinary course of the Borrower's or such Guarantor's business, (iii) the
Indebtedness, (iv) indebtedness in respect of the Remington Loan Agreement and security in respect thereof, (v) liabilities for management fees permitted by Section 8.1(r),
(vi) intercompany indebtedness of the Remington Guarantor to MEC of approximately $900,000 on account of Construction Costs (as defined in the Remington Loan Agreement) incurred by MEC
prior to the Closing Date; and (vii) indebtedness to BE&K, Inc. in the amount of $16,646,395, pursuant to a loan given by BE&K, Inc. to the Borrower.

	(c)
	Further Encumbrances:    Neither the Borrower nor any of the Guarantors will create, assume or permit to exist any
Encumbrance or security interest with respect to any of the Properties, or any portion thereof, whether ranking prior to, pari passu with or subsequent
to the Security, other than Permitted Encumbrances without the prior written consent of the Lender.

	(d)
	Transfers:    Neither the Borrower nor any of the Guarantors shall sell, assign, transfer, convey, lease or otherwise
alienate or dispose of any of the Properties, or any interest therein (financial or management), whether legal or equitable, without the prior written consent of the Lender.

	(e)
	Change of Control:    There shall not be, nor shall the Borrower and/or any of the Guarantors permit, any issue,
subscription, allotment, cancellation or redemption initiated by the Borrower or any of the Guarantors or, any transfer by sale, assignment, operation of law or other disposition or any redemption
initiated by a holder of shares of the Borrower and/or any of the Guarantors, of all or any part of the shares of the Borrower and/or any of the Guarantors or of any subsidiary corporation of the
Borrower and/or any of the Guarantors or any corporation which is an Affiliate of the Borrower and/or any of the Guarantors, other than the parent company of the Borrower or any of the Guarantors,
having voting rights, whether contingent or direct, nor permit any re-organization or amalgamation in any such case so as to result in any change in the present effective voting control of
the Borrower and/or any of the Guarantors from the Person or Persons holding such voting control at the date of execution of this Agreement (although the effective voting control may vary among those
Persons holding such voting control at the date of execution of this Agreement) without first obtaining the written consent of the Lender in each instance, which consent may be unreasonably or
arbitrarily withheld, notwithstanding any statutory provision or provisions to the contrary. There shall not be deemed to be a change in the present effective voting control if the shares of the
Borrower and/or any of the Guarantors in question are beneficially owned by (a) a company controlled by the Person who beneficially owns such shares at the date of execution of this Agreement
or (b) an Affiliate. Any subsequent change in control shall similarly be subject to the prior written consent of the Lender. The Borrower and each of the Guarantors shall make available to the
Lender or its lawful representatives all its corporate books and records for inspection at all reasonable times, in order to ascertain whether there has been any change in control. 

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	(f)
	Occupancy Agreements:    Neither the Borrower nor any of the Guarantors shall enter into, nor permit to be entered into any
leases, agreements to lease or any other Occupancy Agreements for any space which constitutes any material part of the Properties, or any of them without the prior written approval of the Lender,
acting reasonably, other than Permitted Encumbrances and stall agreements and leases for operations such as blacksmiths and veterinarians on market terms and consistent with past practice.

	(g)
	No Amendments:    Neither the Borrower nor any of the Guarantors shall make, permit or allow any material amendments or other
material changes to or terminate the Material Agreements (excluding leases of space in respect of the Properties of less than two thousand five hundred (2,500) square feet) or any other
agreement affecting the Security, except pursuant to an ordinary course renewal thereof nor make any material amendments to its constating documents, in each case in a manner which would materially
adversely affect the interest of the Lender hereunder or under the Security, in each case, without the prior written consent of the Lender, which shall not be unreasonably withheld. Neither the
Borrower nor the Remington Guarantor shall materially alter or vary the Plans for the Gulfstream/Aventura Properties or the Remington Property approved by the Lender without the prior written consent
of the Lender, not to be unreasonably withheld.

	(h)
	Capital Expenditures:    Neither the Borrower nor any of the Guarantors shall, without the Lender's prior written approval,
exercisable in the Lender's sole discretion, incur any Capital Expenditures or permit any mechanic's lienable work to be done to or for the benefit of any of the Properties except (a) for the
Reconstruction, (b) the completion of the Tranche 2 Slots Facilities Initiative, (c) the Tranche 3 Slots Facilities Initiative (d) the Remington Construction,
(e) Capital Expenditures in respect of the Gulfstream Facilities, the Remington Property and the Palm Meadows Training Centre Property not to exceed during any fiscal year Five Million Dollars
($5,000,000) in the aggregate for the Borrower and the Additional Guarantors (capital expenditures by the Remington Guarantor during any fiscal year in respect of the Remington Facilities not to
exceed One Million Two Hundred and Fifty Thousand Dollars ($1,250,000) for customary refreshing of existing authorized gaming devices), (f) capital expenditures by the Borrower during any
fiscal year not to exceed One Million Dollars ($1,000,000) for customary refreshing of authorized gaming devices in the Tranche 2 Slots Facilities, (g) capital expenditures by the
Borrower during any fiscal year not to exceed One Million Five Hundred Thousand Dollars ($1,500,000) for customary refreshing of authorized gaming devices in the Tranche 3 Slots Facilities
(h) as disclosed in the Occupancy Agreements approved by the Lender, (i) for normal repair and maintenance in the ordinary course of business or (j) emergency repairs. 

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	(i)
	Use:    None of the Borrower nor either of the Additional Guarantors shall use or develop a Property for any purposes other
than as contemplated under the Gulfstream Development Agreement, the Remington Development Agreement, the Construction Contracts, the Slots Facilities Contracts, the Remington Construction Contracts
and other permitted related purposes. Neither the Borrower nor either of the Additional Guarantors shall permit a Property or any portion thereof to be converted or take any preliminary actions which
could lead to a conversion to condominium or cooperative form of ownership until such time as the Loan is paid in full, together with all interest thereon.

	(j)
	Property Manager:    Neither the Borrower nor any of the Guarantors shall enter into any property management agreement in
respect of any of the Properties without the Lender's prior written consent.

	(k)
	No Commingling:    Except as specifically contemplated hereby, neither the Borrower nor any Guarantor shall commingle any
assets or funds related to the Properties with assets or funds of any of its shareholders, principals, Affiliates or any other entity.

	(l)
	No Change in Nature of Business:    Neither the Borrower nor any Guarantor shall make any material change in the nature of
its business carried on as of the date hereof.

	(m)
	No Mergers, Consolidations, Sales:    Neither the Borrower nor any Guarantor shall be a party to any merger, consolidation or
exchange of ownership interests, or purchase or otherwise acquire all or substantially all of the assets or stock of any class of, or any membership, partnership or joint venture interest in, any
other Person or entity, or sell, transfer, convey or lease all or any substantial part of its assets, or sell or assign, with or without recourse, any receivables.

	(n)
	No Change in Ownership:    Neither the Borrower nor any Guarantor shall permit any Person or entity to become a shareholder
of it or permit any of its shareholders to assign, transfer, pledge, hypothecate or sell any interest in it. If requested by the Lender, the Borrower and each Guarantor shall provide the Lender at
reasonable intervals with a corporate certificate that no such change of ownership has occurred during the preceding period.

	(o)
	ERISA:    Neither the Borrower nor any Guarantor nor any ERISA Affiliate shall (A) adopt or institute any Employee
Benefit Plan that is an employee pension benefit plan within the meaning of section 3(2) of ERISA, (B) take any action which will result in the partial or complete withdrawal, within the
meanings of sections 4203 and 4205 of ERISA, from a Multiemployer Plan except in the case of a closure of the businesses or facilities of an ERISA Affiliate, (C) engage or permit
any Person to engage in any non-exempt transaction prohibited by section 406 of ERISA or section 4975 of the IRC involving any Employee Benefit Plan or Multiemployer Plan
which would subject the Borrower, any Guarantor or any ERISA Affiliate to any tax, penalty or other liability, including a liability to indemnify, (D) incur or allow to exist any accumulated
funding deficiency (within the meaning of section 412 of the IRC or section 302 of ERISA), except for any funding deficiencies that relate to a Multiemployer Plan caused by a third party
(other than an Affiliate of the Borrower), (E) fail to make full payment when due of all amounts due as contributions to any Employee Benefit Plan or Multiemployer Plan, (F) fail to
comply with the requirements of section 4980B of the IRC or Part 6 of Title I(B) of ERISA, or (G) adopt any amendment to any Employee Benefit Plan which would require the posting
of security pursuant to section 401(a)(29) of the IRC, where singly or cumulatively, the above could be reasonably likely to have a Material Adverse Effect. 

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	(p)
	Other Agreements:    Neither the Borrower nor any Guarantor shall enter into any agreement containing any provision which
would be violated or breached by the performance of its obligations hereunder or under any instrument or document delivered or to be delivered by it hereunder or in connection herewith or which would
violate or breach any provision hereof or of any such instrument or document.

	(q)
	Assertion of Certain Claims and Defenses:    To the extent permitted by Applicable Legal Requirements, neither the Borrower
nor any of the Guarantors shall assert in any judicial proceeding any lender liability claim or counterclaim, the defense of lack of consideration or violation of any applicable usury laws or any
similar legal or equitable defense to the validity or enforceability of this Agreement or any other Loan Document.

	(r)
	Compensation and Fees; Disbursements:    Neither the Borrower nor any Guarantor shall pay to any Affiliates or other related
party (other than the Lender) of the Borrower, any of the Guarantors or MEC any compensation or fees for services rendered (including, without limitation any management, consulting or similar fees, or
comparable payment); provided that each of the Borrower and the Additional Guarantors may incur and accrue liabilities for management fees to MEC which, in the aggregate, shall not exceed, in any
fiscal year, 2.5% of the Combined gross revenues of the Borrower and the Additional Guarantors for such fiscal year; provided that no payment may be made in respect of such management fees unless at
the time of the making of such payment, and after giving effect thereto, (i) the ratio of the Combined Net Debt to trailing four quarter Combined EBITDA of the Borrower and the Additional
Guarantors does not exceed, and for prior four consecutive fiscal quarters such ratio has not exceeded, 3:1; and (ii) no Unmatured Event of Default or Event of Default or event of default or
unmatured event of default under the Remington Loan Agreement has occurred and is continuing.

	(s)
	Loans, Advances, Guaranties, Dividends, Distributions:    Except as expressly permitted hereunder, neither the Borrower nor
any of the Guarantors shall lend or advance money or credit to any Person or entity or purchase or repurchase (or agree, contingently or otherwise, to do so) the indebtedness of, or assume,
guarantee (directly or indirectly or by an instrument having the effect of assuming another's payment or performance of any obligation or capability of so doing, or otherwise), or endorse or otherwise
become liable, directly or indirectly, with respect to the obligations, stock or dividends of any Person or entity. 

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	(t)
	Investments; Acquisitions:    Neither the Borrower nor any Guarantor may purchase or otherwise acquire or make any investment
in any properties or assets, or permit or otherwise undertake any acquisitions; provided, however, that the Borrower or any Guarantor may make investments in Cash Equivalents in amounts and pursuant
to terms acceptable to the Lender, acting reasonably.

	(u)
	Restricted Payments:    Without in any way limiting the generality of the restrictions and limitations contained within the
covenants referenced in this Agreement, for so long as the Loan, the Remington Guarantee and Indemnity, the Palm Meadows Guarantee and Indemnity and/or the MEC Guarantee and Indemnity remains
outstanding, each of the Borrower and the Additional Guarantors is prohibited from undertaking the following without the express prior written consent of the Lender in its sole and absolute
discretion:

	(i)
	making
any payments on, in respect of or arising under or in connection with any indebtedness pari passu with or
subordinated to the Loan or indebtedness owed to any Affiliate, including, without limitation, any indebtedness owing to a shareholder or a subsidiary (other than the Lender), other than payments of
interest due and owing where the making of such payments will not result in an Unmatured Event of Default or Event of Default or an unmatured event of default or event of default under the Remington
Loan Agreement;

	(ii)
	redeeming,
purchasing or otherwise retiring or cancelling any securities (including any warrants, options or rights to acquire securities,
"Securities");

	(iii)
	creating
any sinking fund or entering into any analogous arrangement whereby cash is set aside or segregated for the payment of any indebtedness, other than the Loan,
or for the acquisition of any equity securities of the Borrower;

	(iv)
	issuing
any Securities containing any mandatory or fixed payment obligations of any kind, whether dividend or premium or otherwise;

	(v)
	declaring
or paying any dividends, provided that this provision shall not prohibit and there shall be permitted the declaration and payment of a single annual dividend
to MEC by the Borrower and each of the Additional Guarantors in each year within 60 days after the delivery to the Lender of the audited financial statements referred to in
Section 7.1(d)(ii)(C) for the immediately preceding fiscal year if, at the time of such declaration and payment, and after giving effect thereto, all of the Gulfstream Restricted Payment
Release Conditions have been satisfied; 

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	(vi)
	paying
any management, consulting or similar fee, or comparable payment, (A) to any Affiliate or other related party (other than the Lender) or
(B) outside of the ordinary course of the Borrower's or such Additional Guarantor's business as of the Closing Date and consistent with past practice (it being acknowledged that the
Remington Guarantor has entered into a consulting agreement with Ingenus Management and Consulting with respect to the Remington gaming facility); and

	(vii)
	entering
into any transactions with any Affiliates for the purposes of entering into any transaction or activity that is otherwise prohibited by this
Section 8.1(u). 

For
the purposes hereof, the "Gulfstream Restricted Payment Release Conditions" means: (i) the Capitalized Interest Tranche has been repaid in
full pursuant to the provisions of Section 3.3 of the Remington Loan Agreement, (ii) at the time of the declaring and making of a payment referred to in clause (iv) above
(a "restricted payment"), and after giving effect thereto, the ratio of outstanding Combined Net Debt of the Borrower and the Additional Guarantors to such entities' trailing four quarter
Combined EBITDA does not exceed 4:1, (iii) at the time of the declaring and making of the restricted payment, and after giving effect thereto, no Event of Default or Unmatured Event of Default
or event of default or unmatured event of default under the Remington Loan Agreement shall have occurred and be continuing, and (iv) the distribution of the restricted payment does not cause
the sum of (A) all restricted payments made by the Borrower and the Additional Guarantors (including the desired payment) and (B) all repayments made on account of the Capitalized
Interest Tranche pursuant to Section 3.3 of the Remington Loan Agreement to exceed an amount equal to (I) 40% of the Combined Excess Cash Flow of the Borrower and the Additional
Guarantors since the Remington Facilities Completion Date, (II) provided that, at the time of the declaring and making of the restricted payment, and after giving effect thereto, the ratio of
the Combined Net Debt of the Borrower and the Additional Guarantors to such entities' trailing four quarter Combined EBITDA does not exceed, and for the prior four consecutive fiscal quarters such
ratio has not exceeded, 3:1, 60% of the Combined Excess Cash Flow of the Borrower and the Additional Guarantors since the Remington Facilities Completion Date or (III) provided that, at the
time of the declaring and making of the restricted payment, and after giving effect thereto, the ratio of the Combined Net Debt of the Borrower and the Additional Guarantors to such entities' trailing
four quarter Combined EBITDA does not exceed, and for the prior four fiscal quarters such ratio has not exceeded, 2:1, 85% of the Combined Excess Cash Flow of the Borrower and the Additional
Guarantors since the Remington Facilities Completion Date. 

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        Notwithstanding the foregoing, the Lender agrees that the following types of payments will not be deemed to be restricted payments subject to the above restrictions: (a) payments
to MID or the Lender (including any amounts paid to the Lender in respect of: (i) the Borrower's obligations under the guarantees and indemnities provided by it under the Remington Loan
Agreement; (ii) the Remington Guarantor's obligations under the guarantees and indemnities provided by it under this Agreement; (iii) the Palm Meadows Guarantor's obligations under the
guarantees and indemnities provided by it under this Agreement, the Remington Loan Agreement and/or (v) MEC's obligations under guarantees and indemnities provided by it under this Agreement
and the Remington Loan Agreement); (b) the distribution by the Borrower to MEC of the First Advance, which was an amount equal to the amount paid by MEC with respect to the Reconstruction prior
to the closing of the Loan plus out-of-pocket fees and costs payable by the Borrower or MEC in connection with entering into the Loan; (c) the distribution by the
Remington Guarantor to MEC of the initial advance made to the Remington Guarantor under the Remington Loan Agreement, which initial advance was an amount equal to the amount paid by MEC (either for
its account or for the account of the Remington Guarantor) with respect to the Remington Construction prior to July 22, 2005 plus the out-of-pocket fees and costs
payable by the Remington Guarantor or MEC in connection with entering into the Remington Loan Agreement; (d) guarantee fees paid to the Borrower, the Remington Guarantor, or the Palm Meadow
Guarantor pursuant to this Agreement or the Remington Loan Agreement; and (e) provided that at the time of the making of such payment, and after giving effect thereto, no Unmatured Event of
Default or Event of Default or event of default or unmatured event of default under the Remington Loan Agreement, shall have occurred and be continuing, payments to MEC for the reimbursement of
additional amounts paid by MEC from time to time with respect to the Reconstruction, the Tranche 2 Slots Facilities Initiative, the Tranche 3 Slots Facilities Initiative, or the
Remington Construction, provided that all such amounts were incurred in accordance with the Plans and with the terms of this Agreement or the Remington Loan Agreement, as applicable. 

ARTICLE 9

EVENTS OF DEFAULT; ACCELERATION OF INDEBTEDNESS  

9.1   Events of Default  

        The occurrence or existence of any one or more of the following shall constitute an "Event of Default" hereunder: 

	(a)
	Non-Payment:    Default by the Borrower in payment of (i) any principal when due including, without
limitation, any mandatory repayments pursuant to Section 3.7 and/or 3.9 or (ii) any interest thereon within three Business Days after the same becomes due or (iii) any
other amount hereunder within 10 days after notice of non-payment thereof is received by the Borrower; 

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	(b)
	Defaults:    Default by the Borrower, any Guarantor or MEC in the performance or observance of any covenant, condition or
obligation contained in any Loan Document to which it is a party that does not require the payment of money to the Lender and such default continues for a period of 20 days (or such
longer period as the Lender may in its sole discretion determine) after the earliest of (x) receipt of notice from the Lender of such default, and (y) knowledge of the existence of such
default by any officer of the Borrower, any Guarantor or MEC; or

	(c)
	Representations and Warranties:    Any representation, warranty, certificate, information or other statement (financial or
otherwise) made, deemed to be made, or furnished by or on behalf of the Borrower or any Guarantor or MEC in or in connection with this Agreement or any of the other Loan Documents (i) that is
not or has not been qualified by reference to "material", "in all material respects" or "Material Adverse Effect", or any other materiality standard, shall be found to be false, incorrect, incomplete
or misleading in any material respect when made, deemed to be made, or furnished or (ii) that is or has been qualified by reference to "material", "in all material respects" or "Material
Adverse Effect", or any other materiality standard, shall be found to be false, incorrect, incomplete or misleading when made, deemed to be made, or furnished, where, in all such cases, the
consequences of such misrepresentation or breach of warranty could reasonably be expected to have a Material Adverse Effect; or

	(d)
	Cross Default:    (i) The Borrower or a Guarantor fails to make any payment beyond the applicable grace period with respect
thereto, if any (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) in respect of any indebtedness (other than indebtedness to the Lender), having an aggregate
principal amount of not less than Two Million Dollars ($2,000,000); or (ii) the Borrower, any Guarantor or MEC fails to make any payment beyond the applicable grace period with respect thereto,
if any, whether by scheduled maturity, required prepayment, acceleration, demand or otherwise in respect of any indebtedness to the Lender (other than the Indebtedness); or (iii) the applicable
Person in (i) or (ii) fails to observe or perform any other conditions relating to any such indebtedness, or any other event occurs, the effect of which default or other event causes or
permits the holder or holders of such indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, with the giving of notice if required, such indebtedness to become due
or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such indebtedness to be made, prior to its stated
maturity; or

	(e)
	Insolvency, Voluntary Proceedings:    The Borrower, any Guarantor and/or MEC shall (i) apply for or consent to the
appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) or make application for or seek relief or protection of itself or for
the benefit of their creditors under any of the sections, chapters or provisions of Title 11 of the United States Code, 11 U.S.C. §§ 101 et. seq.
(the "Bankruptcy Code"), (iii) be unable, or admit in writing its inability, to pay its debts generally as they mature, (iv) make a
general assignment for the benefit of itself or any of its creditors, (v) be dissolved or liquidated in full or in part, (vi) become insolvent (as such term may be defined or
interpreted under any applicable statute), (vii) commence a voluntary case or other Proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary
case or other Proceeding commenced against it, or (viii) take any action for the purpose of effecting any of the foregoing; or 

98

 

	(f)
	Involuntary Proceedings:    Proceedings for the appointment of a receiver, trustee, conservator, liquidator or custodian of
the Borrower, any Guarantor, and/or MEC or of all or a substantial part of the property thereof, or an involuntary case or other Proceedings seeking liquidation, reorganization, dissolution,
compromise, moratorium, protection, stay of proceedings of creditors or other relief with respect to the Borrower, any Guarantor, and/or MEC or the debts thereof under any bankruptcy, insolvency or
other similar law now or hereafter in effect shall be commenced and such Proceeding is not contested or shall not be dismissed or discharged within 45 days of commencement, provided that if an
order, decree or judgment is granted or entered (whether or not entered or subject to appeal) against any of the Borrower, any Guarantor, and/or MEC in the interim, such 45-day grace
period will cease to apply and provided further that if the Borrower, any Guarantor, and/or MEC files an answer admitting the material allegations of a petition filed against it in any such
Proceeding, such 45-day grace period will cease to apply; or

	(g)
	Judgments:    (i) One or more judgments, Orders, decrees or arbitration awards requiring the Borrower and/or any of the
Guarantors to pay an aggregate amount of One Million Dollars ($1,000,000) or more shall be rendered against the Borrower and/or any of the Guarantors in connection with any single or related series of
transactions, incidents or circumstances and the same shall not be satisfied, vacated or stayed within 15 Business Days from the date of entry thereof and, if stayed, within such period the
same has not been appealed and stayed during such appeal; provided that if enforcement and/or realization Proceedings are commenced in respect thereof, such 15 Business Day grace period shall
cease to apply; (ii) any judgment, writ, assessment, warrant of attachment, tax lien or execution or similar process shall be issued or levied against a substantial part of the Property of any
Loan Party which judgment is not stayed and dismissed or satisfied within 15 Business Days after issue or levy; or (iii) any other judgments, Orders, decrees, arbitration awards, writs,
assessments, warrants of attachment, tax liens or executions or similar processes which, alone or in the aggregate, could be reasonably expected to have a Material Adverse Effect are rendered, issued
or levied; or

	(h)
	Loan Documents:    Any Loan Document or any material term thereof shall cease to be, or be asserted by the Borrower and/or
any Guarantor and/or MEC not to be, a legal, valid and binding obligation of the Borrower and/or any of the Guarantors and/or MEC enforceable in accordance with its terms; or 

99

 

	(i)
	Security:    Any Encumbrance intended to be created by any Security shall at any time be invalidated, subordinated or
otherwise cease to be in full force and effect, for whatever reason, or any Encumbrance purported to be created by any Security shall cease to be, or shall be asserted by the Borrower and/or any of
the Guarantors and/or MEC not to be, a valid (except as expressly otherwise provided in such Security or any other Loan Documents) perfected Encumbrance in the Collateral covered thereby with the
priority contemplated herein; or

	(j)
	Employee Benefit Plans:    Any Reportable Event which constitutes grounds for the termination of any Employee Benefit Plan by
the Borrower or any ERISA Affiliate of the Borrower or for the appointment of a trustee by the Borrower or any ERISA Affiliate of the Borrower to administer any Employee Benefit Plan shall occur, or
any Employee Benefit Plan shall be terminated within the meaning of Title IV of ERISA or a trustee shall be appointed by the Borrower or any ERISA Affiliate of the Borrower to administer any Employee
Benefit Plan; or

	(k)
	Change of Control:    Any change of control shall occur with respect to the Borrower and/or any Guarantor; or

	(l)
	Material Adverse Effect:    Any event, occurrence or condition which, in the opinion of the Lender, has had a Material
Adverse Effect; or

	(m)
	Default under Material Agreement:    A default or event of default, or any event or circumstance not yet constituting an
event of default which, with the giving of any notice or the lapse of any period of time or both, would become an event of default on the part of the Borrower or any Guarantor, shall occur and be
continuing under any Material Agreement; provided that other than in respect of the Material Agreements referred to in items (i) to (vii)(A) of the definition of Material Agreements,
after giving effect to applicable grace periods under such other Material Agreements, the default or event of default under such other Material Agreements could be reasonably expected to have a
Material Adverse Effect, unless within 30 days thereof, such event of default has been cured or such Material Agreement is replaced by an agreement in form and substance, and with a party,
satisfactory to the Lender; or

	(n)
	Termination of Material Contract:    Any Material Agreement or any consent given thereunder shall cease to be in full force
and effect, or any party to a Material Agreement states that such Material Agreement is no longer in full force and effect; provided that other than in respect of the Material Agreement referred to in
items (i) to (vii)(A) of the definition of Material Agreements, the cessation, default or repudiation of such other Material Agreement has had or could be reasonably expected to have a
Material Adverse Effect, unless within 30 days thereof such Material Agreement is replaced by an agreement in form and substance, and with a party, satisfactory to the Lender; or 

100

 

	(o)
	Termination of Racing and/or Gaming Licences:    Any racing and/or gaming licences held by the Borrower or any of the
Guarantors or any consent or approval given thereunder shall cease to be in full force and effect or shall be materially and adversely changed or altered, provided that where such termination, change
or alteration is capable of being cured and the Borrower is using all commercially reasonable efforts to so cure, the Borrower shall have up to 30 days to so cure; or

	(p)
	Delivery of Security:    The Borrower and/or any of the Guarantors and/or MEC shall have failed to deliver to the Lender on
the applicable date the Security required to be delivered pursuant to Section 5.1; or

	(q)
	Defaults of the Guarantors or MEC:    While the Guarantees and Indemnities are in effect, any Guarantor thereunder or MEC
shall fail to observe or perform any covenant, obligation, condition or agreement contained in such Guarantee and Indemnity and such failure shall continue for 30 days; or

	(r)
	Guarantee:    Any of the Guarantees and Indemnities or any material term thereof shall cease to be, or be asserted by the
applicable Guarantors or MEC not to be, a legal, valid and binding obligation of such Guarantors or MEC, enforceable in accordance with its terms; or

	(s)
	Termination of Remington Lease:    The Remington Lease shall be terminated as a result of the Zoo Trust exercising its
discretionary termination rights thereunder. 

        As
used herein and in the other Loan Documents, the term "Unmatured Event of Default" means any of the foregoing events described in this
Section 9.1 which, if a notice were given or a cure or grace period expired, would become an Event of Default hereunder. 

9.2   Acceleration; Remedies  

        Upon the occurrence of an Event of Default, unless the Lender elects to waive such default in its sole and absolute discretion: (i) the Loan Amount
including without duplication, all accrued and unpaid interest, fees, expenses, closing costs and other Indebtedness owing; and (ii) the Pre-Payment Make-Whole Amount
shall become immediately due and payable without notice to the Borrower and the Lender shall be entitled to all of the rights and remedies provided in the Loan Documents or at law or in equity. Each
remedy provided in the Loan Documents is distinct and cumulative of all other rights or remedies under the Loan Documents or afforded by law or equity, and may be exercised concurrently,
independently, or successively, in any order whatsoever. Upon the occurrence of an Event of Default, the Lender shall be entitled to remain in possession of the Property or any other collateral
pledged to secure any obligation of the Borrower to the Lender, and to collect the rents therefrom and the Borrower shall and hereby consents thereto. 

9.3   Waiver of Certain Rights  

        The Borrower and each of the Guarantors hereby waives each of the following, to the fullest extent permitted by law: 

101

 

	(a)
	any
defence based upon:

	(i)
	the
unenforceability or invalidity of all or any part of the Loan, the Security, any of the Guarantees and Indemnities, or any other Loan Document, or any failure of the
Lender to take proper care or act in a commercially reasonable manner in respect of the Security or any collateral subject to the Security, including in respect of any disposition of the Collateral or
any set-off of the Borrower's or a Guarantor's bank deposits against the Loan;

	(ii)
	any
act or omission of the Borrower or any other Persons, including the Guarantors or MEC, that directly or indirectly results in the discharge or release of the
Borrower or any other Person or any of the Loan or any Security; or

	(iii)
	any
Guarantor's or MEC's present or future method of dealing with the Borrower or any Security (or any Collateral subject to the Security) or any other
guarantee for the Loan;

	(b)
	any
right (whether now or hereafter existing) to require any Guarantor or MEC, as a condition to the enforcement of any of the Guarantees and Indemnity:

	(i)
	to
accelerate the Loan or proceed and exhaust any recourse against the Borrower or any other Person;

	(ii)
	to
realize on any Security that it holds;

	(iii)
	to
marshal the assets of the Borrower or any Guarantees and Indemnity; or

	(iv)
	to
pursue any other remedy that the Borrower or any of the Guarantors or MEC may not be able to pursue itself and that might limit or reduce the Borrower's, a
Guarantor's or MEC's burden;

	(c)
	presentment,
demand, protest and notice of any kind including, without limitation, notices of default and notice of acceptance of any Guarantee and Indemnity;

	(d)
	all
suretyship defences and rights of every nature otherwise available under Florida, Pennsylvania or Oklahoma law or other applicable laws; and

	(e)
	all
other rights and defences (legal or equitable) the assertion or exercise of which would in any way diminish the liability of the Guarantors or MEC under the Guarantees and
Indemnities. 

102

 

ARTICLE 10

MISCELLANEOUS  

10.1     Reliance and Non-Merger  

            All covenants, agreements, representations and warranties of the Borrower or any Guarantor or MEC made herein or in any other Loan Document or in any certificate
or other document signed by any of its directors or officers and delivered by or on behalf of any of them pursuant hereto or thereto are material, shall be deemed to have been relied upon by the
Lender notwithstanding any investigation heretofore or hereafter made by the Lender or Lender's Counsel or any employee or other representative of any of them and shall survive the execution and
delivery of this Agreement and the other Loan Documents until there are no Loans outstanding and the Lenders shall have no further obligation to make Advances hereunder. For clarity, this
Section 10.1 shall in no way affect the survival of those provisions of this Agreement or any Loan Document which by their terms are stated to survive termination of this Agreement. 

10.2     Confidentiality  

            The Lender will maintain on a confidential basis (except as otherwise permitted hereunder or as required by Applicable Law) all information relating to the
Borrower, the Guarantors and MEC and their respective Subsidiaries provided to it hereunder by and on behalf of the Borrower, any of the Guarantors or MEC or obtained in respect of any diligence
conducted in respect hereof; provided, however, that this Section 10.2 shall not apply to any information which (i) was lawfully in the public domain at the time of communication to the
Lender, (ii) lawfully enters the public domain through no fault of the Lender subsequent to the time of communication to the Lender, (iii) was lawfully in the possession of the Lender
free of any obligation of confidence at the time of communication to the Lender, or (iv) was lawfully communicated to the Lender free of any obligation of confidence subsequent to the time of
initial communication to the Lender. 

10.3     No Set-Off  

            To the fullest extent permitted by law, the Borrower and each Guarantor shall make all payments under the Loan Documents regardless of, but without prejudice to
or otherwise releasing the Lender of or from, any liability, defense or counterclaim, including, without limitation, any defense or counterclaim based on any law, rule or policy which is now or
hereafter promulgated by any Governmental Authority which may adversely affect the Borrower's or such Guarantor's obligation to make, or the Lender's right to receive, such payments. The Borrower and
each Guarantor grants to the Lender the right to set off all accounts, credits or balances owed by the Lender to the Borrower or such Guarantor, as applicable, against the aggregate amount of
principal, interest, fees and other amounts due hereunder or under any other Loan Document when any such amount shall become due and payable, whether at maturity, upon acceleration of maturity thereof
or otherwise. 

10.4     Employment of Experts  

            The Lender may, at any time and from time to time, at the Borrower's cost, retain and employ legal counsel, independent accountants and other experts in order to
perform or assist it in the performance of its rights and powers under this Agreement or the other Loan Documents and will advise the Borrower at any time that it elects to do so. 

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10.5     Reliance by Lender  

            The Lender shall be entitled to rely upon any schedule, certificate, statement, report, notice or other document or written communication (including any
facsimile, telex or other means of electronic communication) of the Borrower, any Guarantor or MEC believed by it to be genuine and correct. 

10.6     Notices  

            Any notice or other communication which may be or is required to be given or made pursuant to this Agreement shall be deemed to have been sufficiently and
effectively given if signed by or on behalf of the party giving notice and sent by either personal service or paid registered mail to the party for which it is intended at its address
as follows: 

	(a)
	if
to the Borrower, at: 

Gulfstream
Park Racing Association, Inc.

901 South Federal Highway

Hallandale Beach, Florida

33009-7199 

Fax:                  954-457-6497

Attention:       President 

with
a copy to: 

Magna
Entertainment Corp.

337 Magna Drive

Aurora, Ontario

L4G 7K1 

Fax:                  905-726-7448

Attention:       Legal Department 

	(b)
	if
to the Lender, at: 

MID
Islandi sf. Zug Branch

Baarerstrasse 16, CH-6304 Zug Switzerland 

Fax:                  +41
41 725 27 25

Attention:       Thomas Schultheiss, Branch Manager 

with
a copy to: 

MI
Developments Inc.

455 Magna Drive

Aurora, Ontario, CANADA L4G 7A9 

Fax:                  905-726-2095

Attention:       General Counsel 

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	(c)
	if
to the Remington Guarantor, at: 

One
Remington Place

Oklahoma City

Oklahoma 73111 

Fax:                  405-425-3297

Attention:       General Manager 

	(d)
	if
to the Palm Meadows Guarantor, at: 

Palm
Meadows Thoroughbred Training Facility

8898 Lyons Road

Boynton Beach, FL 33437 USA 

Fax:                  561.731.3905

Attention:       Chief Financial 

Officer
in each case, with a copy to: 

Magna
Entertainment Corp.

337 Magna Drive

Aurora, Ontario

L4G 7K1 

Attention:       Legal
Department

Fax:                  905-726-7448 

        Any
notice or communication which may or is required to be given or made shall be made or given as herein provided or to such other address or in care of such other officer as a party
may from time to time advise to the other parties hereto by notice in writing as aforesaid. The date of receipt of any such notice shall be the date of delivery of such notice if served personally or,
if mailed as aforesaid, shall be deemed to be the fifth (5th) Business Day next following the date of such mailing. If at the date of any such mailing or on or before the third (3rd) Business Day
thereafter there is a general interruption in the operation of the postal service in the United States of America which does or is likely to delay delivery by mail of such notice, to the extent
possible, shall be served personally. 

105

 

10.7     Further Assurances  

        Whether
before or after the happening of an Event of Default, the Borrower and each Guarantor shall at its own expense do, make, execute or deliver, or cause to be done, made, executed
or delivered by its Subsidiaries or other Persons, all such further acts, documents and things in connection with the Loan and the Loan Documents as the Lender may
reasonably require from time to time for the purpose of giving effect to the Loan Documents all within a reasonable period of time following the request of the Lender. 

10.8     Assignment  

            The Loan Documents shall enure to the benefit of the Lender, its successors and assigns, and shall be binding upon the Borrower and the Guarantors, and their
respective successors and assigns. Neither the Borrower nor any of the Guarantors shall assign, sell, convey or otherwise transfer any of its rights or obligations under the Loan or the Loan
Documents. The Lender, may assign, sell, convey, grant participations in, pledge, or otherwise transfer all or any part of its rights or obligations under the Loan and the Loan Documents as follows
(each a "Permitted Lender Assignee"): (a) at any time, to any Affiliate of the Lender, without the Borrower's or the Guarantors' consent;
(b) at any time during which an Event of Default has occurred and is continuing, to any third party, without the Borrower's or any Guarantor's consent; and (c) at any time, with the
Borrower's consent, not to be unreasonably withheld. Any Permitted Lender Assignee shall provide written notice to the Borrower and the Guarantors of such assignment and its assumption of the
obligations of the Lender hereunder and thereafter shall be entitled to the performance of all of the Borrower's and the Guarantors' agreements and obligations under the Loan and the Loan Documents
and shall be entitled to enforce all the rights and remedies of the Lender under the Loan Documents, for the benefit of such Permitted Lender Assignee, as fully as if such Permitted Lender Assignee
was herein by name specifically given such rights and remedies. Each of the Borrower and the Guarantors expressly agrees that it will assert no claims or defenses that it may have against the Lender
against any Permitted Lender Assignee, except those specifically available under this Agreement. In the event that the Borrower or any Guarantor shall become directly liable for any additional charges
or levies by any Governmental Authority in consequence of the operation of this Section 10.8, the Borrower shall give the Lender notice thereof and thereafter the Lender shall indemnify the
Borrower or the Guarantor, as applicable, in full for any such charges or levies. The Borrower and the Guarantors shall be given written notice of any such assignment. The Borrower and the Guarantors
shall cooperate with and perform the reasonable requirements of the Permitted Lender Assignee, but the costs and expenses, including reasonable legal fees and disbursements relating directly to or
arising directly out of any such assignment shall not be the expense of the Borrower or the Guarantors. 

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10.9     Disclosure of Information to Potential Permitted Lender Assignees  

            The Borrower and the Guarantors agree that the Lender shall have the right (but shall be under no obligation) to make available to any potential Permitted
Lender Assignee any and all information which the Lender may have pursuant to the Loan Documents, provided such disclosure is not in violation of any applicable securities laws, rules or regulations
and such potential Permitted Lender Assignee enters into a typical and customary confidentiality agreement in favour of the Borrower and the Guarantors. 

10.10   Right to Cure  

            The Lender may from time to time, in its sole and absolute discretion (but shall have no obligation to do so), for the Borrower's account and at the
Borrower's expense, pay any amount or do any act required of the Borrower, a Guarantor or MEC hereunder or required under the Loan Documents or requested by the Lender to preserve, protect, maintain
or enforce the Loan, any of the Properties or any other Collateral, and which the Borrower, a Guarantor or MEC fails to pay or do or cause to be paid or done, including, without limitation, payment of
insurance premiums, taxes or assessments, warehouse charge, finishing or processing charge, landlord's claim, and any other lien upon or with respect to the Properties or any other Collateral. Any
payment made or other action taken by the Lender pursuant to this Section shall be without prejudice to any right to assert an Event of Default hereunder and to pursue the Lender's other rights and
remedies with respect thereto. 

10.11   Forbearance by the Lender Not a Waiver  

            Any forbearance by the Lender in exercising any right or remedy under any of the Loan Documents, or otherwise afforded by Applicable Law, shall not be a waiver
of or preclude the exercise of any right or remedy. The Lender's acceptance of payment of any sum secured by any of the Loan Documents after the due date of such payment shall not be a waiver of the
Lender's right to either require prompt payment when due of all other sums so secured or to declare a default for failure to make prompt payment. The procurement of insurance or the payment of taxes
or other liens or charges by the Lender shall not be a waiver of the Lender's right to accelerate the maturity of the Loan, nor shall the Lender's receipt of any awards, proceeds or damages operate to
cure or waive the Borrower's, any of the Guarantors' or MEC's default in payment or sums secured by any of the Loan Documents. With respect to all Loan Documents, only waivers made in writing by the
Lender shall be effective against the Lender. 

10.12   Waiver of Statute of Limitations and Other Defenses  

            The Borrower and Guarantors hereby waive the right to assert any statute of limitations or any other defense as a bar to the enforcement of the lien created by
any of the Loan Documents or to any action brought to enforce any obligation secured by any of the Loan Documents. 

107

 

10.13   Relationship and Indemnity  

            The relationship between the Lender and the Borrower, the Guarantors and MEC shall be that of creditor-debtor only. No term in this Agreement or in the other
Loan Documents, nor any shareholder or other Affiliate relationship between the parties, and no course of dealing between the parties shall be deemed to create any relationship of agency, partnership
or joint venture or any fiduciary duty by the Lender to any other party. 

        To
the fullest extent permitted by law, the Borrower and the Guarantors hereby agree to indemnify, protect, hold harmless and defend the Lender, its successors, assigns and members,
shareholders, directors, officers, employees, and agents from and against any and all losses, damages, costs, expenses (including reasonable attorneys' fees (including, but not limited to, all
appellate level and post-judgment proceedings)), claims, proceedings, penalties, fines and other sanctions arising from or relating to the transactions contemplated by this Agreement and
the other Loan Documents, and which arise out of or relate to (a) environmental matters, (b) breach by the Borrower and/or the Guarantors of any of their respective representations,
warranties or covenants set forth in this Agreement and the other Loan Documents, (c) any acts or omissions of the Borrower and/or the Guarantors or any agent or contractor thereof, and
(d) the business of the Borrower and/or the Guarantors. Upon written request by an indemnitee, the Borrower and the Guarantors will undertake, at their own costs and expense, on behalf of such
indemnitee, using counsel satisfactory to the indemnitee in such indemnitee's reasonable discretion, the defense of any legal action or proceeding whether or not such indemnitee shall be a party and
for which such indemnitee is entitled to be indemnified pursuant to this Section. At the Lender's option, the Lender may, at the Borrower's and/or the Guarantors' expense, prosecute or defend any
action involving the priority, validity or enforceability of the Mortgages. The obligations of the Borrower and the Guarantors under this Section 10.13 shall survive the payment and performance
of the Indebtedness, liabilities and obligations of the Borrower and the Guarantors under, and the termination and release by the Lender of, this Agreement and the other Loan Documents. 

10.14   Time of Essence  

            Time is of the essence of this Agreement and each of the other Loan Documents and the performance of each of the covenants and agreement contained herein
and therein. 

10.15   Service of Process/Venue  

            The Borrower and each Guarantor hereby consents to service of process, and to be sued, in the State of Florida and consents to the jurisdiction of the state and
federal courts where any of the Properties is located as well as the jurisdiction of all courts from which an appeal may be taken from such courts, for the purpose of any suit, or other proceeding
arising out of any of their obligations hereunder, and expressly waive any and all objections they may have as to venue in any such courts. Further, in the Lender's sole and absolute discretion, suits
to enforce this Agreement or in any way relating to the subject matter of this Agreement may be brought by the Lender in any court located within the State or County where any portion of the real
property included in any of the Properties is located or in the United States District Court having jurisdiction over all or any portion of the real property included in any of
the Properties. 

108

   10.16   Jury Trial Waiver  

            THE BORROWER, THE GUARANTORS AND THE LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE
SUBJECT MATTER OF THIS AGREEMENT AND THE BUSINESS RELATIONSHIP THAT IS BEING ESTABLISHED. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY THE BORROWER, THE GUARANTORS AND THE LENDER,
THE BORROWER AND EACH GUARANTOR ACKNOWLEDGE THAT NEITHER THE LENDER NOR ANY PERSON ACTING ON BEHALF OF THE LENDER HAS MADE ANY REPRESENTATIONS OF FACT TO INCLUDE THIS WAIVER OF TRIAL BY JURY OR HAS
TAKEN ANY ACTIONS WHICH IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THE BORROWER, EACH GUARANTOR AND THE LENDER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH OF THEM HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH OF THEM WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. THE
BORROWER, EACH GUARANTOR AND LENDER FURTHER ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED (OR HAVE HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF
THIS WAIVER BY INDEPENDENT LEGAL COUNSEL. 

10.17   Final Agreement/Modification  

            This Agreement, together with the other Loan Documents is intended as the final expression of the agreement between the Borrower, the Guarantors, MEC and the
Lender. All prior discussions, negotiations and agreements are of no further force and effect. This Agreement can be modified only in writing executed by all parties and the written agreement may not
be contradicted by any evidence of any alleged oral agreement. 

10.18   Continuing Agreement  

            This Agreement shall in all respects be a continuing agreement and shall remain in full force and effect (notwithstanding, without limitation, the death,
incompetency or dissolution of any of the Borrower, any of the Guarantors or MEC). 

10.19   No Third Party Beneficiaries  

            This Agreement, the Security and the other Loan Documents are made for the sole benefit of the Lender, the Borrower, the Guarantors and MEC and no other party
shall have any legal interest of any kind under or by reason of any of the foregoing. Whether or not the Lender elects to employ any or all the rights, powers or remedies available to it under any of
the foregoing, the Lender shall have no obligation or liability of any kind to any third party by reason of any of the foregoing or any of the Lender's actions or omissions pursuant thereto or
otherwise in connection with this transaction. 

109

 

10.20   Appointment of Administrative Agent  

            The
Lender may, at its discretion, following written notice to the Borrower, appoint and authorize an administrative agent (an "Administrative
Agent") to act as its agent hereunder and under the other Loan Documents with such powers as are expressly delegated to such Administrative Agent by the terms of such
appointment, together with such other powers as are reasonably incidental thereto but subject always to the terms of this Agreement. Any such Administrative Agent may resign at any time by giving
10 days' prior written notice thereof to the Borrower and the Lender, and the Administrative Agent may be removed at any time with or without cause by the Lender. Upon any such resignation or
removal, the Lender shall have the right to appoint a successor Administrative Agent. 

10.21   No Brokers  

            Each of the Borrower and the Guarantors, on the one hand, and the Lender, on the other hand, warrants and represents to the other that it has not employed any
broker or agent in connection with the transaction contemplated hereby. Each of the Borrower and the Guarantors, on the one hand, and the Lender, on the other hand, shall indemnify and hold the other
harmless from any loss or cost suffered or incurred by it as a result of any commission owed to any broker or agent claiming a commission due as a result of representing such party (or any of
its Affiliates) with respect hereto. 

10.22   Execution in Counterparts  

            This
Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement. 

10.23   Contribution by Guarantors with Respect to Indebtedness  

            To the extent that any Guarantor shall make a payment (a "Guarantor Payment") under its Guarantee and
Indemnity given in connection with this Agreement, which, taking into account all other Guarantor Payments then previously or concurrently made by any other Guarantor, exceeds the amount which
otherwise would have been paid by or attributable to such Guarantor if each Guarantor had paid the aggregate Indebtedness satisfied by such Guarantor Payment in the same proportion as such Guarantor's
"Allocable Amount" (as defined below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts
of each of the Guarantors as determined immediately prior to the making of such Guarantor Payment, then, following irrevocable payment in full in cash of the Guarantor Payment, and the Indebtedness,
and termination of this Agreement, such Guarantor shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Guarantor for the amount of such excess,  pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment. 

        As
of any date of determination, the Allocable Amount of any Guarantor shall be equal to the maximum amount of the claim which could then be recovered from such Guarantor under its
Guarantee and Indemnity given in connection with this Agreement without rendering such claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any
applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law. 

110

 

        This
Section 10.23 is intended only to define the relative rights of the Guarantors, and nothing set forth in this Section 10.23 is intended to or shall impair the
obligations of the Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of the respective Guarantees and Indemnity given
by each of them in connection with this Agreement. 

        The
parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of the Guarantor or Guarantors to which such contribution and
indemnification is owing. 

        The
rights of the indemnifying Guarantors against other Guarantors under this Section 10.23 shall be exercisable only upon the full and irrevocable payment of the Indebtedness in
cash and the termination of this Agreement, including, without limitation, the termination of the Loan commitment hereunder. 

        All
references in this Section 10.23 to a Guarantor or the Guarantors shall be deemed to include MEC. 

10.24   Successors and Assigns Bound; Joint and Several Liability and Agents  

            The
covenants and agreements contained in the Loan Documents shall bind, and the rights thereunder shall inure to, the respective permitted successors and assigns of the Lender, the
Borrower and the Guarantors, subject to the provisions of this Agreement. Subject to Section 10.23, all covenants and agreements of the Borrower and the Guarantors shall be joint and several.
In exercising any rights under the Loan Documents or taking any actions provided for therein, the Lender may act through its employees, agents or independent contractors as authorized by
the Lender. 

10.25   Loss of Gulfstream Note  

            Upon notice from the Lender of the loss, theft, or destruction of the Gulfstream Note and upon receipt of an indemnity reasonably satisfactory to the Borrower
from the Lender, or in the case of mutilation of the Gulfstream Note, upon surrender of the mutilated Gulfstream Note, the Borrower shall make and deliver a new note of like tenor in lieu of the then
to be superseded Gulfstream Note. 

10.26   Confirmation of Guarantees and Security  

            The Borrower hereby confirms and agrees that: (i) the Security to which it is a party shall be deemed for all purposes to secure the payment and
performance of the Indebtedness (including, without limiting the generality of the foregoing, in respect of Tranche 1, Tranche 2 and Tranche 3) outstanding from time to time, as
well as interest and other amounts owing hereunder or under the other Loan Documents, the completion of the Reconstruction in accordance with the Gulfstream Development Agreement, the Construction
Contracts, and such plans and specifications as are approved by the Lender and the performance of all other obligations of the Borrower under the Loan and the Loan Documents, including the payment of
cost overruns pursuant to Section 7.1(l). 

111

 

        In
return for additional guarantee and indemnity fees paid to each of the Guarantors as of the date of this Agreement (in the amount of $10,000 to the Palm Meadows Training
Guarantor and $50,000 to the Remington Guarantor), and in return for, inter alia, agreeing to loan the Borrower, MEC's wholly owned subsidiary,
the Tranche 1 Loan Amount, the Tranche 2 Loan Amount and the Tranche 3 Loan Amount, each Guarantor and MEC hereby confirm and agree that: (i) each of the Guarantees and
Indemnities and Security to which it is a party: (A) remains in full force and effect and has not been terminated, discharged or released; (B) constitutes a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization and other laws of general application limiting the enforceability of
creditors' rights; and (C) guarantees or secures, as the case may be: (I) the payment and performance of the Indebtedness (including, without limiting the generality of the foregoing, in
respect of Tranche 1, Tranche 2 and Tranche 3) outstanding from time to time, as well as interest and other amounts owing hereunder or under the other Loan Documents,
(II) the completion of the Reconstruction in accordance with the Gulfstream Development Agreement, the Construction Contracts, and such plans and specifications in respect thereof as are
approved by the Lender: (III) the completion of the Tranche 2 Slots Facilities Initiative in accordance with the Tranche 2 Slots Facilities Contracts and such plans and
specifications in respect thereof as are approved by the Lender, (IV) the completion of the Tranche 3 Slots Facilities Initiative in accordance with the Tranche 3 Slots Facilities
Contracts and such plans and specifications in respect thereof as are approved by the Lender, and (V) the performance of all other obligations of the Borrower under the Loan and the Loan
Documents, including, in each case, the payment of cost overruns pursuant to Section 7.1(l). 

10.27   Acknowledgment  

            THE BORROWER AND EACH GUARANTOR ACKNOWLEDGE THAT THEY HAVE THOROUGHLY READ AND REVIEWED THE TERMS AND PROVISIONS OF THIS AGREEMENT, THE ATTACHED SCHEDULES AND
THE LOAN DOCUMENTS AND ARE FAMILIAR WITH THE TERMS OF SAME; THAT THE TERMS AND PROVISIONS CONTAINED IN THIS AGREEMENT HAVE BEEN THOROUGHLY READ BY THE BORROWER
AND EACH GUARANTOR AND ARE CLEARLY UNDERSTOOD AND FULLY AND UNCONDITIONALLY CONSENTED TO BY THE BORROWER AND EACH GUARANTOR. THE BORROWER AND EACH GUARANTOR HAVE HAD FULL BENEFIT AND ADVICE OF COUNSEL
OF THEIR SELECTION IN REGARD TO UNDERSTANDING THE TERMS, MEANING, AND EFFECTS OF THIS AGREEMENT. THE BORROWER AND EACH GUARANTOR FURTHER ACKNOWLEDGE THAT THEIR EXECUTION OF THIS AGREEMENT AND THE LOAN
DOCUMENTS IS DONE FREELY, VOLUNTARILY AND WITH FULL KNOWLEDGE, AND WITHOUT DURESS, AND THAT IN EXECUTING THIS AGREEMENT AND THE LOAN DOCUMENTS, THE BORROWER AND EACH GUARANTOR HAVE RELIED ON NO OTHER
REPRESENTATIONS, EITHER WRITTEN OR ORAL, EXPRESS OR IMPLIED, MADE TO THEM BY ANY OTHER PARTY TO THE AGREEMENT; AND THAT THE CONSIDERATION RECEIVED BY THE BORROWER AND EACH GUARANTOR UNDER THIS
AGREEMENT AND THE LOAN DOCUMENTS HAS BEEN ACTUAL AND ADEQUATE. 

112

 

10.28   Operation of Agreement Relating to the Remington Guarantor  

            The provisions of this Agreement with respect to the Remington Guarantor and its execution of this Agreement, and the Security provided by the Remington
Guarantor will not be operative or effective unless and until it has obtained the Remington Loan OHRC Approval. The Remington Guarantor covenants that it will obtain such approval by March 1,
2007, and further covenants that it will not take any act (or omit to take any act) that disqualifies it from applying, obtaining, maintaining or receiving a license under the  Oklahoma Race Horsing Act and the terms of the Order granting Conditional Organizational Licenses for 2005 or related regulations as in effect from time
to time. 

113

   
        IN WITNESS WHEREOF, the parties hereto have executed this Agreement or have caused the same to be executed by their duly authorized representatives as of the date first
above written. 

	 	 	GULFSTREAM PARK RACING ASSOCIATION, INC.
	
 	
 	

by:	

 Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	    	 	 	 
	
 	
 	

 	

 Name: William G. Ford

Title: Secretary
	    	 	 	 
	 	 	We have authority to bind the Corporation.
	    	 	 	 
	    	 	 	 
	    	 	 	 
	 	 	REMINGTON PARK, INC.
	
 	
 	

by:	

 Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	    	 	 	 
	
 	
 	

 	

 Name: William G. Ford

Title: Secretary
	    	 	 	 
	 	 	We have authority to bind the Corporation.
	    	 	 	 
	    	 	 	 
	    	 	 	 
	 	 	GPRA THOROUGHBRED TRAINING CENTER INC.
	
 	
 	

by:	

 Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	    	 	 	 
	
 	
 	

 	

 Name: William G. Ford

Title: Secretary
	    	 	 	 
	 	 	We have authority to bind the Corporation.

114

 

	 	 	MAGNA ENTERTAINMENT CORP.
	
 	
 	

by:	

 Name: Blake S. Tohana

Title: Executive Vice-President and Chief Financial Officer
	    	 	 	 
	
 	
 	

 	

 Name: William G. Ford

Title: Secretary
	    	 	 	 
	 	 	We have authority to bind the Corporation.

115

 

	 	 	MID ISLANDI SF., ACTING THROUGH ITS ZUG BRANCH
	
 	
 	

by:	

 Name: Thomas Schultheiss

Title: Branch Manager
	    	 	 	 
	
 	
 	

 	

 Name: Herta Kessler

Title: Branch Manager
	    	 	 	 
	 	 	We have authority to bind the Partnership

116

 
 

SCHEDULE A
  
    Legal Description of the Aventura Lands    
    

PARCEL 2 (FEE SIMPLE ESTATE)  

        The North 659.41 feet of Tracts A and B, DONN ACRES, according to the plat thereof, as recorded in Plat Book 76, Page 30, Public Records of
Miami-Dade County, Florida. 

        LESS
AND EXCEPT therefrom the land conveyed to the City of Hallandale as set forth in the Right of Way Deed recorded in Official Records Book 22217, Page 230, Public Records of
Miami-Dade County, Florida, described as follows: 

        A
portion of Tract B, DONN ACRES, according to the Plat thereof, as recorded in Plat Book 76, at Page 30, of the Public Records of Dade County, Florida, lying in
Section 34, Township 51 South, Range 42 East, Dade County, Florida, being more particularly described as follows: Commence at the Northeast corner of said Section 34;
thence south 01 degrees 59 minutes 03 seconds East along the East line of said Section 34 for 608.00 feet to the POINT OF BEGINNING; thence continue along the last
described course for 51.43 feet; thence South 88 degrees 26 minutes 32 seconds West for 19.33 feet to a point on a curve (said point having a radial bearing of North
74 degrees 44 minutes 38 seconds West from the radius point); thence Northeasterly along a circular curve to the left having a radius of 460.00 feet, a central angle of
06 degrees 49 minutes 49 seconds for an arc distance of 54.84 feet to the POINT OF BEGINNING. 

        ALSO
LESS AND EXCEPT THEREFROM the land conveyed to the City of Aventura as set forth in the Right of Way Deed recorded in Official Records Book 17973, Page 3869, Public Records
of Miami-Dade County, Florida, described as follows: 

        A
portion of Tracts A, B and C, DONN ACRES, according to the Plat thereof, as recorded in Plat Book 76, at Page 30, Public Records of Dade County, Florida, said portion being more
particularly described as follows: Commencing at the Northeast corner of Section 34, Township 51 South, Range 42 East, in said Dade County; thence South 01 degrees
59 minutes 03 seconds East, on the East line of said Section 34, for 541.55 feet to the POINT OF BEGINNING; thence continue South 01 degrees 59 minutes
03 seconds East, on said East line, for 117.40 feet to the Northeast corner of Exhibit "B" of that Right of Way Deed to Dade County, as described and shown in Official Records
Book 12139, at Page 3803, of said Public
Records; thence South 88 degrees 26 minutes 32 seconds West, on the North line of said Exhibit "B" for 40.00 feet to the Northwest former of said Exhibit "B";
thence South 01 degrees 59 minutes 03 seconds East, on the West line of said Exhibit "B" for 0.49 feet to a parallel line 659.41 feet South of the North line
of said Section 34; thence South 88 degrees 26 minutes 03 seconds West, on said parallel line, for 624.04 feet the East line of said Tract A; thence continue South
88 degrees 26 minutes 03 seconds West, on said parallel line, for 2209.47 feet to a point on the East right of way line of Biscayne Boulevard (State Road No. 5), as
shown on the amended State Road Department Right of Way Plans, Road No. 4 recorded in Plat Book 34, at Page 54A, of said Public Records, said point being the beginning of a
non-tangent curve concave to the Northwest having a radius of 3909.83 feet and to said point a radial line bears South 69 degrees 16 minutes 28 seconds East;
thence Northerly, on said right of way line, along said curve, through a central angle of 02 degrees 21 minutes 50 seconds, for 161.31 feet to the point of cusp with a
curve concave to the Northeast having a radius of 25.00 feet, a central angle of 88 degrees 53 minutes 36 seconds and to said point a radial line bears North
71 degrees 39 minutes 17 seconds West; thence Southerly, Southeasterly and Easterly, along said curve, for 38.79 feet; thence South 70 degrees 31 minutes
53 seconds East, for 132.90 feet to the beginning of a curve concave to the North having a radius of 614.09 feet and a central angle of 21 degrees 02 minutes
04 seconds; thence Easterly, along said curve, for 225.44 feet to a parallel line 629.41 feet South of said North line of Section 34; thence North 88 degrees
26 minutes 03 seconds East, on said parallel line, for 1792.04 feet to the West line of said Tract B; thence continue North 88 degrees 26 minutes 03 seconds
East, on said parallel line for 437.05 feet to the beginning of a curve concave to the North having a radius of 330.00 feet and a central angle of 37 degrees 34 minutes
38 seconds; thence Easterly and Northeasterly, along said curve, for 216.43 feet; thence North 50 degrees 51 minutes 25 seconds East, for 31.83 feet to the
POINT OF BEGINNING. 

 

PARCEL 3 (NON EXCLUSIVE EASEMENT ESTATE)  

        Together with that certain Non Exclusive Drainage Easement as created in Agreement by and between Gulfstream Park Racing Association, Inc., a Florida
corporation and City National Bank of Miami entered into on April 20, 1984, recorded June 1, 1984, in Official Records Book 12165, Page 206, Public Records of
Miami-Dade County, Florida, over the following described land: 

        A
portion of Tract D, THE WATER WAYS — SECTION 1, according to the Plat thereof, as recorded in Plat Book 122, at Page 81,
Public Records of Miami-Dade County, Florida being more particularly described as follows: 

        The
South 15.00 feet of the North 60.00 feet of the West 305.01 feet of said Tract D. 

SAVE AND EXCEPT THE LANDS IDENTIFIED AS TRACT 'A' AND TRACT 'B' BELOW, WHICH DO NOT FORM PART OF THE AVENTURA LANDS:

TRACT 'A' 6.02 ACRES  

        Portions of Tract A and Tract B, DONN ACRES, according to the plat thereof as recorded in Plat Block 76, Page 30 of the Public Records of
Miami-Dade County, Florida, being more particularly described as follows: 

        COMMENCE
at the Northeast corner of said Tract B and the Northeast corner of Section 34, Township 51 South, Range 42 East; 

        THENCE
South 02°21'14" East on said East line of Tract B and the East line of said Section 34, a distance of 541.55 feet to the Northeast corner of a parcel of
land conveyed to the City of Aventura for highway purposes by Right-of-Way Deed recorded in Official Records Book 17973, Page 3869 of the Public Records of
Miami-Dade County, Florida; 

        THENCE
on the North line of said Parcel conveyed to the City of Aventura the following three (3) courses and distances; 

	1.
	South
50°29'14" West, a distance of 32.10 feet (31.83 feet by deed) to the beginning of a tangent curve concave to the Northwest;

	2.
	Southwesterly
on the arc of said curve having a radius of 330.00 feet, through a central angle of 37°32'07" (37°34'38" by deed), an arc distance of
216.19 feet (216.43 feet by deed) to a point of tangency;

	3.
	South
88°01'22" West, a distance of 128.17 feet to the POINT OF BEGINNING; 

        THENCE
continue South 88°01'22" West on said North line, a distance of 561.58 feet; 

        THENCE
North 01°52'05" West, a distance of 507.39 feet; 

        THENCE
North 88°09'53" East, a distance of 382.40 feet; 

        THENCE
South 37°41'02" East, a distance of 306.19 feet; 

        THENCE
South 01°52'05" East, a distance of 257.81 feet to the POINT OF BEGINNING; 

TOGETHER WITH  

TRACT 'B' 0.98 ACRES  

        Portions of Tract A and Tract B, DONN ACRES, according to the plat thereof as recorded in Plat Book 76, Page 30 of the Public Records of
Miami-Dade County, Florida, being more particularly described as follows: 

        COMMENCE
at the Northeast corner of said Tract B and the Northeast corner of Section 34, Township 51 South, Range 42 East; 

        THENCE
South 02°21'14" East on said East line of Tract B and the East line of said Section 34, a distance of 541.55 feet to the Northeast corner of a parcel of
land conveyed to the City of Aventura for highway purposes by Right-of-Way Deed recorded in Official Records Book 17973, Page 3869 of the Public Records of
Miami-Dade County, Florida; 

        THENCE
on the North line of said Parcel conveyed to the City of Aventura the following three (3) courses and distances; 

        South
50°29'14" West, a distance of 32.10 feet (31.83 feet by deed) to the beginning of a tangent curve concave to the Northwest; 

        Southwesterly
on the arc of said curve having a radius of 330.00 feet, through a central angle of 37°32'07" (37°34'38" by deed), an arc distance of
216.19 feet (216.43 feet by deed) to a point of tangency; 

        South
88°01'22" West, a distance of 107.88 feet to the POINT OF BEGINNING; 

        THENCE
continue South 88°01'22" West, a distance of 20.29 feet; 

        THENCE
North 01°52'05" West, a distance of 257.81 feet; 

        THENCE
North 37°41'02" West, a distance of 306.19 feet; 

        THENCE
South 88°09'53" West, a distance of 382.40 feet; 

        THENCE
North 01°52'05" West, a distance of 17.63 feet; 

        THENCE
North 88°09'53" East, a distance of 581.87 feet; 

        THENCE
South 01°52'05" East, a distance of 523.58 feet to the POINT OF BEGINNING; 

        Said
Tract "A" and Tract "B" lands lying in the City of Aventura, Miami-Dade County, Florida and containing total net area 305,075 square feet 7.00 (acres) more
or less 

2

 
 

SCHEDULE B
  
    Legal Description of the Remington Lands    
    

        Lots One (1), Two (2) and Three (3) in EASTERN INDUSTRIAL ADDITION to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded
plat thereof, 

AND

        Blocks
One (1), Two (2) and Three (3) in CASTLE HILL ADDITION to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded plat thereof, LESS AND EXCEPT the West
26.21 feet of Block 3. 

AND

        A
part of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma County, Oklahoma being more particularly described
as follows: 

        Commencing
at the Northwest Corner of the Northwest Quarter (NW/4) of said Section 12; 

Thence
South 00°06'33" East along the West line of said NW/4 a distance of 443.48 feet; 

Thence
North 89°53'27" East a distance of 115.00 feet to the intersection of the East right of way line of Martin Luther King Avenue and the South right of way line of Interstate
Highway No. 440; 

Thence
South 00°06'33" East along said right of way line of Martin Luther King Avenue a distance of 321.86 feet to the centerline of Deep Fork Creek, said point being the point
of beginning; 

Thence
South 74°10'33" East along said centerline a distance of 116:41 feet; 

Thence
South 63°25'33" East along said centerline a distance of 446.00 feet; 

Thence.
South 72°24'03" East along said centerline a distance of 197.55 feet; 

Thence
South 81°22'33" East along said centerline a distance of 225.00 feet; 

Thence
South 86°29'41" East along said centerline a distance of 81.70 feet; 

Thence
North 41°15'40" East along said centerline a distance of 101.96 feet; 

Thence
North 31°00'12" East along said centerline a distance of 240.65 feet; 

Thence
North 51°23'00" East along said centerline a distance of 307.54 feet; 

Thence
North 56°04'05" East along said centerline a distance of 150.70 feet; 

Thence
South 84°56'24" East along said centerline a distance of 107.66 feet; 

 

Thence
South 43°47'02" East along said centerline a distance of 201.38 feet; 

Thence
South 36°27'00" East along said centerline a distance of 124.80 feet; 

Thence
South 29°46'10" East along said centerline a distance of 597.02 feet to a point on the South line of the Northeast Quarter (NE/4) of the said NW/4; 

Thence
North 89°40'05" East along said South line a distance of 326.85 feet; 

Thence
North 89°39'51" East along the South line of the NW/4 of the NE/4 of said Section 12 a distance of 1299.57 feet to a point on the East line of said NW/4 of
the NE/4; 

Thence
North 00°09'28" West along said East line a distance of 478.06 feet; 

Thence
North 89°50'32" East a distance of 575.71 feet; 

Thence
South 00°09'28" East a distance of 52.04 feet; 

Thence
North 89°50'32" East a distance of 211.07 feet to a point on the West right of way line of Interstate Highway No. 35; 

Thence
South 16°02'43" East along said right of way a distance of 258.19 feet 

Thence
South 03°34'32" East a distance of 378.83 feet to a point on said West right of way line of Interstate Highway No. 35; 

Thence
South 68°03'46" East along said highway right of way a distance of 78.40 feet to a point of curvature; 

Thence
Southeasterly on a curve to the right along said highway right of way having a radius of 2709.79 feet (chord bearing South 07°05'22" East; chord distance 652.11 feet)
an arc distance of 653.69 feet; 

Thence
South 01°46'27" West along said highway right of way a distance of 440.14 feet; 

Thence
South 00°10'44" East and parallel with the East line of the Southeast Quarter (SE/4) of said Section 12 and along said Highway right of way line a distance of
919.03 feet; 

Thence
South 04°23'43" West along said highway right of way a distance of 250.80 feet; 

Thence
South 03°26'57" East along said highway right of way a distance of 350.57 feet; 

Thence
South 00°10'44" East and parallel with the East line of the SE/4 of said Section 12 and along said highway light of way a distance of 400.00 feet; 

Thence
South 03°38'07" West along said right of way a distance of 300.67 feet; 

Thence
South 00°10'44" East and parallel with the said East line of the SE/4 of said Section 12 and along said highway right of way a distance of 73.98 feet; 

2

 

Thence
South 89°39'56" West a distance of 668.35 feet to a point on the former East right of way line of the Missouri, Kansas and Texas railroad; 

Thence
South 04°20'04" East along said former railroad right of way a distance of 351.74 feet to a point on the South line of said Section 12; 

Thence
South 89°39'56" West along said South line of said Section a distance of 100.24 feet to a point on the former West right of way line of the Missouri, Kansas and
Texas railroad; 

Thence
North 04°20'04" West along said former railroad right of way a distance of 656.50 feet; 

Thence
South 85°39'56" West along said former railroad right of way a distance of 12.5 feet; 

Thence
North 04°20'04" West along said former railroad right of way a distance of 961.00 feet to a point of curvature; 

Thence
Northeasterly on a curve to the right along said former railroad right of way having a radius of 2938.20 feet (chord bearing North 04°08'10" West; chord distance
20.35 feet) an arc distance of 20.35 feet; 

Thence
South 89°39'56" West and parallel with the South line of the Southwest Quarter (SW/4) of Section 12 a distance of 643.59 feet; 

Thence
South 00°13'34" East a distance of 1633.00 feet to a point on the South line of Said Section 12; 

Thence
South 89°39'56" West along said South line of said Section a distance of 221.22 feet to a point of intersection with the former North right of way line of Grand
Boulevard (now Remington Place); 

Thence
North 42°53'17" West along said former North right of way line of Grand Boulevard a distance of 1066.16 feet to a point of curvature; 

Thence
Northwesterly on a curve to the left along said former Grand Boulevard right of way having a radius of 1194.33 feet (chord bearing North 61°47'63" West; chord distance
774,14 feet) an arc distance of 788.37 feet; 

Thence
North 07°01'01" East a distance of 16.95 feet; 

Thence
South 89°40'01" West along the North right of way line of Grand Boulevard according to the recorded plat of CASTLE HILL ADDITION (now vacated) a distance of
892.20 feet to a point of curvature; 

Thence
Northwesterly on a curve to the right along said North right of way line of Grand Boulevard according to said vacated plat, having a radius of 1810.00 feet (chord bearing North
79°00'49 West; chord distance 710.54 feet) an arc distance of 715.18 feet; 

Thence
North 00°06'22" West a distance of 175.00 feet; 

3

 

Thence
North 65°19'39" West a distance of 150.00 feet to a point on the former East right of way line of Martin Luther King Avenue; 

Thence
North 00°07'18" West along said former right of way a distance of 1094.19 feet to a point on the North line of the Southwest Quarter of said Section 12; 

Thence
North 00°06'33" West along said former right of way a distance of 661.25 feet; 

Thence
North 89°53'27" East along said former right of way a distance of 26.00 feet; 

Thence
North 00°06'33" West along said former right of way a distance of 425.00 feet; 

Thence
North 89°53'27" East along said former right of way a distance of 25.00 feet; 

Thence
North 00°06'33" West along said former right of way a distance of 518.50 feet; 

Thence
North 89°53'27" East along said former right of way a distance of 15.00 feet; 

Thence
North 00°06'33" West along the current right of way a distance of 275.02 feet to the point of beginning. 

        Said
tract being further described as Tracts 2, 16, 17, 19, 20, 21, 22, 24, 27, 28, 30, 31, 32, 34, 41, 42, 43, 44, 46, 48, 47, 48 and 49 as follows: 

Tract 2:  

        The Southwest Quarter (SW/4) of the Northeast Quarter (NE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian
Meridian, Oklahoma County, Oklahoma, as shown by the government survey thereof. 

Tract 16:  

        A part of the East Half (E/2) of the Northeast Quarter (NE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian
Meridian, Oklahoma County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southwest Corner of the Southeast Quarter (SE/4) of the NE/4; 

Thence
North 00°09'28" West along the West line of said SE/4 of the NE/4 a distance of 1010.88 feet to the point of beginning; 

Thence
continuing North 00°09'28" West a distance of 789.98 feet; 

Thence
North 89°50'32" East a distance of 575.71 feet; 

Thence
South 00°09'28" East a distance of 52.04 feet; 

Thence
North 89°50'32" East a distance of 211.07 feet to a point on the West right of way line of Interstate Highway 35; 

4

 

Thence
South 16°02'43" East along said right of way a distance of 258.19 feet to a point on the West right of way line of the Missouri, Kansas and Texas railroad; 

Thence
South 23°56'14" West along said railroad right of way a distance of 488.55 feet; 

Thence
North 60°51'28" West a distance of 225,54 feet; 

Thence
South 71°12'32' West a distance of 487.70 feet to the point of beginning. 

Tract 17:  

        A part of the Northeast Quarter (NE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southwest Corner of the Southeast Quarter (SE/4) of the NE/4 

Thence
North 00°09'28" West along the West line of said SE/4 of the NE/4 a distance of 390,00 feet to the point of beginning; 

Thence
continuing North 00°09'28' West along said West line a distance of 620.86 feet; 

Thence
North 71°12'32' East a distance of 487.70 feet; 

Thence
South 60°51'28" East a distance of 225.54 feet to a point on the West right of way line of the Missouri, Kansas and Texas railroad; 

Thence
South 23°56'14' West along said railroad right of way a distance of 722.66 feet; 

Thence
South 88°48'00" West a distance of 383.86 feet to the point of beginning. 

Tract 19:  

        A part of the Northeast Quarter (NE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Beginning
at the Southwest Corner of the Southeast Quarter (SE/4) of the NE/4; 

Thence
North 00°09'28" West along the West line of said SE/4 of the NE/4 a distance of 390.00 feet; 

Thence
North 88°48'00" East a distance of 363.86 feet to a point on the West right of way line of the Missouri, Kansas and Texas railroad; 

Thence
South 23°56'14" West along said railroad right of way a distance of 9.68 feet to a point of curvature; 

5

 

Thence
Southwesterly on a curve to the left along said railroad right of way having a radius of 2950.70 feet an arc distance of 412.55 feet to a point on the South One of
said NE/4; 

Thence
South 89°40'07" West a distance of 218.27 feet to the point of beginning. 898984 

Tract 20:  

        A part of the Northeast Quarter (NE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southeast Corner of the NE/4; 

Thence
South 89°40'07" West along the South line of said NE/4 a distance of 287.00 feet to a point on the West right of way of Interstate Highway 35; 

Thence
North 01°46'27" East along said right of way a distance of 96.88 feet to the point of beginning; 

Thence
South 89°40'07" West a distance of 585.85 feet to a point of curvature on the East right of way line of the Missouri, Kansas and Texas railroad; 

Thence
Northeasterly on a curve to the right along said railroad right of way having a radius of 2775.70 feet and an arc distance of 234.89 feet; 

Thence
North 23°56'14" East along said railroad right of way a distance of 882.88 feet to a point on the West right of way line of Interstate Highway 35; 

Thence
South 66°03'46" East along said Highway right of way a distance of 78.40 feet to a point of curvature on the West right of way line of said highway; 

Thence
Southeasterly on a curve to the right along said highway right of way having a radius of 2709.79 feet an arc distance of 653.69 feet; 

Thence
South 01°46'27" West along said highway right of way a distance of 343.26 feet to the point of beginning, 

Tract 21:  

        A part of the Northeast Quarter (NE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southeast Corner of said NE/4; 

Thence
South 89°40'07" West along the South line of said NE/4 a distance of 287.00 feet to the point of beginning, said point being on the West right of way line of
Interstate Highway 35; 

6

 

Thence
continuing South 89°40'07" West along the said South line of said NE/4 a distance of 614.43 feet to a point of curvature, said point being on the East right of way
line of the Missouri, Kansas and Texas railroad; 

Thence
Northeasterly on a curve to the right along said railroad right of way having a radius of 2775,70 feet and an arc distance of 102.02 feet; 

Thence
North 89°40'07" East and parallel with the South line of said NE/4 a distance of 585.85 feet to a point on the West right of way line of Interstate Highway 35; 

Thence
South 01°46'27" West along said Highway right of way a distance of 96.88 feet to the point of beginning. 

Tract 22:  

        A part of the Southeast Quarter (SE/4) of Section Twelve (12), Township Twelve (12) Noah, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Beginning
at the Northwest Corner of the Southeast Quarter (SE/4); 

Thence
North 89°40'07" East along the North line of said SE/4 a distance of 1546.80 feet to a point of curvature on the West right of way line of, the Missouri, Kansas and
Texas railroad; 

Thence
Southwesterly on a curve to the left along said railroad right of way having a radius of 2925.70 feet an arc distance of 483.33 feet; 

Thence
North 83°23'46" West along said railroad right of way a distance of 12.50 feet to a point of curvature; 

Thence
Southeasterly on a curve to the left along said railroad right of way having a radius of 0938.20 feet an arc distance of 540.58 feet; 

Thence
South 89°39'58" West a distance of 643.69 feet; 

Thence
South 00°13'34" East a distance of 1833.00 feet to a point on the South line of said SE/4; 

Thence
South 89°38'56" West along said South line a distance of 221.22 feet to a point of intersection with the North right of way line of Grand Boulevard; 

Thence
North 42°53'17" West along said right of way a distance of 833.76 feet to a point on the West line of said SE/4; 

Thence
North 00°01'54" West along the West line of said SE/4 a distance of 2029.81 feet to the point of beginning. 

7

 

Tract 24:  

        A part of the Southeast Quarter (SE/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Northeast Corner of the said SE/4; 

Thence
South 89°40'07° West along the North line of said SE/4 a distance of 287.00 feet to the point of beginning, said point being on the West right of way line
of Interstate Highway 35; 

Thence
South 00°10'44" East along said highway right of way a distance of 919.03 feet; 

Thence
South 04°23'43" West along said right of way a distance of 250.80 feet; 

Thence
South 03°26'57" East along said right of way a distance of 350.57 feet; 

Thence
South 00°10'44" East along said right of way a distance of 400.00 feet; 

Thence
South 03°38'07" West along said right of way a distance of 300.67 feet; 

Thence
South 00°10'44" East along said right, of way a distance of. 73,98 feet; 

Thence
South 89°39'56° West a distance of 668.35 feet to a point on the East right of way line of the Missouri, Kansas and Texas railroad; 

Thence
North 04°20'04" West along said railroad right of way a distance of 31.76 feet; 

Thence
North 85°39'56" East along said railroad right of way a distance of 12.5 feet; 

Thence
North 04°20'04" West along said railroad right of way a distance of 961.00 feet to a point of curvature; 

Thence
Northeasterly on a curve to the right along said railroad right of way having a radius of 2813.20 feet and an arc distance of 537.07 feet; 

Thence
North 83°23'46" West along said railroad right of way a distance of 12.5 feet to a point of curvature; 

Thence
Northeasterly on a curve to the right along said railroad right of way having a radius of 2825.70 feet and an arc distance of 498.29 feet to a point on the North line of the
said SE/4; 

Thence
North 89°40'07" East along said North line a distance of 666.78 feet to the point of beginning. 

Tract 27:  

        Lots One (1), Two (2) and Three (3) In EASTERN INDUSTRIAL ADDITION to Oklahoma City, Oklahoma County, Oklahoma, according to the recorded
plat thereof. 

8

 

Tract 28:  

        A part of the Southwest Quarter (SW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Northwest Corner of the SW/4; 

Thence
South 00°07'18" East along the West line of said Section 12 a distance of 662.73 feet; 

Thence
North 89°37'51" East a distance of 60.00 feet to the point of beginning; 

Thence
continuing North 89°37'51" East a distance of 1259.48 feet; 

Thence
South 00°04'36" East a distance of 660.16 feet to a point on the North Tine of CASTLE HILL ADDITION, according to the recorded plat thereof; 

Thence
South 89°40'01" West along said North line of said addition a distance of 1120.78 feet; 

Thence
North 00°06'22" West a distance of 164.48 feet; 

Thence
North 65°19'39" West a distance of 150.00 feet; 

Thence
North 00°07'18" West and parallel with the West line of said Section a distance of 431.60 feet to the point of beginning. 

Tract 30:  

        The Northeast Quarter (NE/4) of the Southwest Quarter (SW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian
Meridian, Oklahoma County, Oklahoma. 

Tract 31:  

        A part of the Southwest Quarter (SW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Beginning
at the Northeast Corner of CASTLE HILL ADDITION, according to the recopied plat thereof; 

Thence
North 89°40'01" East a distance of 838.83 feet to a point on the East line of said SW/4; 

Thence
South 00°01'54" East along the East line of the said SW/4 a distance of 707.81 feet to a point on the North right of way line of Grand Boulevard;, 

Thence
North 42°53'17" West along said right of way a distance of 232.40 feet to a point of curvature; 

9

 

Thence
Northwesterly on a curve to the left along said right of way having a radius of 1194.33 feet an arc distance of 788.37 feet; 

Thence
North 07°01'01" East a distance of 16.95 feet; 

Thence
North 00°19'59" West a distance of 150.00 feet to the point of beginning. 

Tract 32:  

        All of Blocks One (1), Two (2) and Three (3), less and except the West 26.21 feet of Block 3, in CASTLE HILL ADDITION, according to the recorded
plat thereof. 

Tract 34:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Northwest Corner of said NW/4 of the NW/4; 

Thence
South 00°06'33" East along the West line of said NW/4 of the NW/4 a distance of 443.48 feet; 

Thence
North 89°53'27" East a distance of 115.00 feet to the intersection of the East right of way line of Martin Luther King Avenue and the South right of way line of Interstate
Highway No. 440; 

Thence
South 00°06'33" East along the East right of way line of Martin Luther King Avenue, 115.00 feet East of and parallel with the West line of said NW/4 of the NW/4 a
distance of 321.86 feet to the centerline of Deep Fork Creek, said point also being the point of beginning; 

Thence
South 74°10'33" East along said centerline a distance of 116.41 feet; 

Thence
South 63°25'33" East along said centerline a distance of 446.00 feet; 

Thence
South 72°24'03" East along said centerline a distance of 197.55 feet; 

Thence
South 81°22'33" East along said centerline a distance of 225.00 feet; 

Thence
South 86°29'41" East along said centerline a distance of 81.70 feet; 

Thence
North 41°15'40" East along said centerline a distance of 101.96 feet; 

Thence
North 31°00'12" East along said centerline a distance of 240:65 feet to. the East line of said NW/4 of the NW/4;. 

Thence
South 00°04'09" East along said East line a distance of 603.15 feet to the Southeast Corner of said NW/4 of the NW/4; 

10

 

Thence
South 89°40'30" West along the South line of said NW/4 of the NW/4 a distance of 1208.85 feet to the East right of way line of Martin Luther King Avenue; 

Thence
North 00°06'33" West along said right of way line, 100.00 feet East of and parallel with the West line of said NW/4 of the NW/4, a distance of 281.77 feet; 

Thence
North 89°53'27" East along the East right of way line of Martin Luther King Avenue a distance of 15.00 feet; 

Thence
North 00°08'33" West along the East right of way line of Martin Luther King Avenue, 115.00 feet East of and parallel with the West line of said NW/4 of the NW/4, a distance
of 275.02 feet to the point of beginning. 

Tract 41:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Beginning
at the Southwest Corner of the Northeast Quarter (NE/4) of the NW/4; 

Thence
North 00°04'09" West along the West line of said NE/4 of the NW/4 a distance of 503.15 feet to the centerline of Deep Fork Creek; 

Thence
North 51°23'00" East along said centerline a distance of 307.54 feet; 

Thence
North 56°04'05"East along said centerline a distance of 150.70 feet; 

Thence
South 84°56'24" East along said centerline a distance of 107.66 feet; 

Thence
South 43°47'02" East along said centerline a distance of 201.38 feet; 

Thence
South 36°27'00" East along said centerline a distance of 124.80 feet; 

Thence
South 29°46'10" East along said centerline a distance of 597.02 feet to a point on the South line of the NE/4 of the said NW/4; 

Thence
South 89°40'05" West along the South line of the NE/4 of said NW/4 a distance of 981.89 feet to the point of beginning. 

Tract 42:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southwest Corner of said NW/4; 

Thence
North 00°06'33" West a distance of 885.00 feet; 

11

 

Thence
North 89°53'27" East a distance of 75.00 feet to the point of beginning; 

Thence
North 00°06'33" West a distance of 175.00 feet; 

Thence
North 89°53'27" East a distance of 98.00 feet; 

Thence
South 00°06'33" East a distance of 175.00 feet; 

Thence
South 89°53'27" West a distance of 98.00 feet to the point of beginning. 

Tract 43:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southwest Corner of said NW/4; 

Thence
North 00°08'33" West along the West Section line a distance of 531.10 feet; 

Thence
North 89°53'27" East a distance of 50,00 feet to the point of beginning; 

Thence
North 00°06'33" West and parallel with the said West Section line a distance of 130.35 feet; 

Thence
North 89°53'27" East a distance of 25.00 feet; 

Thence
North 00°06'33" West and parallel with said West Section line a distance of 223.56 feet; 

Thence
North 89°53'27" East a distance of 98.00 feet; 

Thence
North 00°08'33" West a distance of 175.00 feet; 

Thence
South 89°53'27" West a distance of 98.00 feet; 

Thence
North 00°08'33" West a distance of 26.45 feet; 

Thence
North 89°53'27" East a distance of 25.00 feet; 

Thence
North 00°06'33" West a distance of 236.73 feet to a point on the South line of the NW/4 of the NW/4; 

Thence
North 89°40'30" East along said South line of said NW/4 of the NW/4 a distance of 1208.85 feet to the Southeast Corner of said NW/4 of the NW/4; 

Thence
North 89°40'0S" East a distance of 808.74 feet; 

Thence
South 00°01'54" East a distance of 495,00 feet; 

12

 

Thence
South 89°40'05" West a distance of 808.51 feet to a point on the East line of the SW/4 of said NW/4; 

Thence
South 00°04'13" East along said East line of said SW/4 of said NW/4 a distance of 501.65 feet; 

Thence
South 89°53'27" West a distance of 758.16 feet; 

Thence
North 00°08'33" West a distance of 200.00 feet; 

Thence
South 89°53'27" West a distance of 500.00 feet to the point of beginning. 

Tract 44:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southwest Corner of said NW/4; 

Thence
North 00°06'33" West a distance of 331,10 feet; 

Thence
North 89°53'27" East. a distance of 50.00 feet to the point of beginning; 

Thence
North 00°06'33" West a distance of 200.00 feet; 

Thence
North 89°53'27" East a distance of 500.00 feet; 

Thence
South 00°06'33" East a distance of 200.00 feet; 

Thence
South 89°53'27" West a distance of 500.00 feet to the point of beginning. 

Tract 45:  

        The South Half (S/2) of the South Hail (S/2) of the Southwest Quarter (SW/4) of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve
(12) North, Range Three (3) West of the Indian Meridian, Oklahoma County, Oklahoma. 

Tract 46:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows; 

        Commencing
at the Southeast Corner of the NW/4; 

Thence
North 00°01'54" West along the East line of the said NW/4 a distance of 497,69 feet; 

Thence
South 89°40'05" West a distance of 500.00 feet to the point of beginning; 

13

 

Thence
continuing South 89°40'05" West a distance of 808.28 feet; 

Thence
North 00°04'13" West a distance of 330.00 feet; 

Thence
North 89°40'05" East a distance of 808.51 feet; 

Thence
South 00°01'54" East a distance of 330.00 feet to the point of beginning. 

Tract 47:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Commencing
at the Southeast Corner of said NW/4; 

Thence
North 00°01'54" West along the East line of said NW/4 a distance of 497.89 feet to the point of beginning; 

Thence
South 89°40'05" West a distance of 500.00 feet; 

Thence
North 00°01'54" West a distance of 825.00 feet to a point on the North line of the Southeast Quarter (SE/4) of the said NW/4; 

Thence
North 89°40'05" East along the North line of said SE/4 of the NW/4 a distance of 500.00 feet to a point on the East line of the said NW/4; 

Thence
South 00°01'54" East along the said East line of said NW/4 a distance of 825.00 feet to the point of beginning. 

Tract 48:  

        A part of the Northwest Quarter (NW/4) of Section Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma
County, Oklahoma, being more particularly described as follows: 

        Beginning
at the Southeast Corner of the NW/4 of said Section 12; 

Thence
South 89°40'07" West a distance of 1307.95 feet; 

Thence
North 00°04'13" West a distance of 497.68 feet; 

Thence
North 89°40'05" East a distance of 1308.28 feet to a point on the East line of said NW/4; 

Thence
South 00°01'54" East along said East line of said NW/4 a distance of 497,89 feet to the point of beginning. 

14

 

Tract 49:  

        A
part of the East Half (E/2) of Section- Twelve (12), Township Twelve (12) North, Range Three (3) West of the Indian Meridian, Oklahoma County, Oklahoma, being more
particularly described as follows: 

        Commencing
at the Southeast Corner of the Southeast Quarter (SE/4) of said Section 12; 

Thence
South 89°39'56" West along the South Tine of said SE/4 a distance of 949.88 feet to a point on the East right of way line of the Missouri, Kansas and Texas railroad,
said point being the point of beginning; 

Thence
continuing South 89°39'56" West along said Section line a distance of 100.24 feet to a point on the West right of way line of the Missouri, Kansas and Texas railroad; 

Thence
North 04°20'04" West along said railroad right of way a distance of 656.50 feet; 

Thence
South 85°39'56" West along said right of way a distance of 12.50 feet; 

Thence
North 04°20'04" West along said right of way a distance of 961.00 feet to a point of curvature; 

Thence
Northeasterly along said right of way on a curve to the right having a radius of 2938.20 feet and an arc distance of 560.93 feet; 

Thence
South 83°23'46" East along said right of way a distance of 12.50 feet to a point of curvature; 

Thence
Northeasterly along said right of way on a curve to the right having a radius of 2925.70 feet and an arc distance of 483.33 feet to a point on the North line of said SE/4; 

Thence
South 89°40'07" West along said North line a distance of 26.05 feet to a point of curvature; 

Thence
Northeasterly along said right of way on a curve to the right having a radius of 2950.70 feet and an arc distance of 412.55 feet; 

Thence
North 23°58'14" East along said right of way a distance of 1218.87 feet; 

Thence
South 03°34'32" East a distance of 378.83 feet to a point on the East right of way line of the said railroad; 

Thence
South 23°56'14" West along said right of way a distance of 882.88 feet to a point of curvature; 

Thence
Southwesterly along said right of way on a curve to the left having a radius of 2775.70 feet and an arc distance of 336.91 feet to a point on the North line of said SE/4; 

15

 

Thence
South 89°40'07" West along said North line a distance of 52,33 feet to a point of curvature; 

Thence
Southwesterly along said right of way on a curve to the left having a radius 2825.70 feet and an arc distance of 496.29 feet; 

Thence
South 83°23'46" East along said right of way a distance of 12.50 feet to a point of curvature; 

Thence
Southwesterly along said right of way on a curve to the left having a radius of 2813.20 feet and an arc distance of 537.07 feet; 

Thence
South 04°20'04" East along said right of way a distance of 961.00 feet; 

Thence
South 85°39'56" West along said right of way a distance of 12.50 feet; 

Thence
South 04°20'04" East along said right of way a distance of 663.50 feet to the point of beginning. 

16

 
 

SCHEDULE C
  
    Permitted Encumbrances    
    

I.     General Permitted Encumbrances:

	1.
	liens
for taxes (which term includes charges, rates and assessments) or utilities (including levies or imposts for sewers and other municipal utility services) not yet due or if due,
the validity of which is being contested in good faith and in respect of which there shall have been deposited with the Lender or a Governmental Authority in an amount sufficient to pay such taxes or
utilities (together with any interest or penalties accrued thereon), and liens or charges for the excess of the amount of any past due taxes or utilities charges for which a final assessment or
account has not been received over the amount of such taxes or utilities charges as estimated and paid by the Borrower;

	2.
	liens
arising out of claims under a judgment rendered or claim filed which are being contested in good faith and in respect of which there shall have been deposited with the Lender or
a Governmental Authority in an amount sufficient to pay such judgment or claim together with any interest accrued thereon and costs claimed in respect thereof;

	3.
	the
rights reserved to or vested in any municipality or governmental or other public authority by any statutory provision;

	4.
	zoning
(including, without limitation, airport zoning regulations), use and building by-laws and ordinances, federal, state or municipal by-laws and regulations
and other restrictions as to the use of any of the Properties which in the aggregate do not materially impair the value of any of the Properties or materially restrict the use thereof for the purposes
for which any of the Properties is held;

	5.
	subdivision,
site plan control, development, reciprocal, servicing, facility cost sharing or similar agreements currently existing or entered into with a governmental authority,
municipality or public utility from time to time in respect of any of the Properties which in the aggregate do not materially impair the value of any of the Properties or materially restrict the use
thereof for the purposes for which any of the Properties is held;

	6.
	minor
title defects or irregularities which, in the aggregate, do not materially impair the value of any of the Properties or materially restrict the use thereof for the purposes for
which any of the Properties is held;

	7.
	any
subsisting reservations, limitations, provisions and conditions contained in any original grants of any land or interests therein, reservations of undersurface rights to mines and
minerals of any kind including, without limitation, rights to coal, petroleum and minerals of any kind, including rights to enter, prospect and remove the same, and statutory exceptions,
qualifications or limitations to title;

	8.
	minor
encroachments by any of the Properties or any facilities of or used in connection with any of the Properties over adjacent lands and permitted under agreements with the owners of
such adjacent lands which in the aggregate do not materially impair the value of any of the Properties or materially restrict the use thereof for the purposes for which any of the Properties
is held; 

 

	9.
	Encumbrances
respecting encroachments by facilities on adjacent lands over any of the Properties which in the aggregate do not materially impair the value of any of the Properties or
materially restrict the use thereof for the purposes for which any of the Properties is held;

	10.
	permits,
licences, agreements, easements, restrictions, restrictive covenants, rights-of-way, public ways, rights in the nature of an easement and other
similar rights in land granted to or reserved by other persons (including, without in any way limiting the generality of the foregoing, permits, licences, agreements, easements,
rights-of-way, sidewalks, public ways, and rights in the nature of easements for sewers, drains, gas and water mains or electric light and power or data, telephone and
telegraph conduits, poles, wires and cables) which in the aggregate do not materially impair the value of any of the Properties or materially restrict the use thereof for the purposes for which any of
the Properties is held or which are contemplated or provided for or which the Borrower or any Guarantor is bound to enter into pursuant to any subdivision, development, site plan control or similar
agreement in respect of any of the Properties, and any encumbrance of any nature whatsoever charging the interest of persons (other than the Borrower and/or any Guarantor) under any such permit,
licence, agreement, easement, restriction, restrictive covenant, right-of-way, public way, right in the nature of an easement or servitude or other similar rights
in land;

	11.
	leases
and any notice in respect thereof and any Encumbrance of any nature whatsoever charging the interest of persons (other than the Borrower and/or any Guarantor) under any such
lease and any non-disturbance or other agreement entered into in respect of such lease;

	12.
	materialmen's,
carriers', repairmen's, warehousemen's or other like liens if collateral in an amount equal to the aggregate of such liens (together with any interest accrued thereon
and costs claimed in respect thereof) is deposited with the Lender or a Governmental Authority;

	13.
	security
given to a public utility or any municipality or other governmental authority or other public authority when required by the operations of either of the Properties in the
ordinary course of business, including, without limitation, the right of any such public utility, municipality or other governmental authority or other public authority to acquire portions of any of
the Properties for road widening or interchange construction and the right of such public utility, municipality or other governmental authority or other public authority to complete improvements,
landscaping or remedy deficiencies in any pedestrian walkways or traffic control or monitoring to be provided to any of the Properties;

	14.
	undetermined
or inchoate liens incidental to construction, maintenance or current operation a claim for which shall not at the time have been filed pursuant to Governmental Rule
registered against any of the Properties or of which notice in writing shall not at the time have been given to the Borrower and/or any Guarantor or otherwise or any lien or charge, a claim for which,
although registered, or notice of which, although given, relates to obligations not overdue or delinquent and in respect of any of the foregoing cases, the Borrower and/or any Guarantor has, where
applicable, complied with the holdback or other similar provisions of any Governmental Rule or requirements of the relevant construction contracts so as to protect any of the Properties therefrom and
to preserve the priority of the lien of any of the Mortgages or with respect to which the Borrower or a Guarantor, as the case may be, has deposited collateral with the Lender in an amount equal to
the amount of such lien together with the costs claimed in respect thereof; 

2

 

	15.
	any
Encumbrance payment of which has been provided for by deposit with the Lender or a Governmental Authority of collateral sufficient to pay the same;

	16.
	any
agreement pertaining to the use, operation or maintenance of any of the Properties which is necessary or desirable in connection with the efficient and proper operation of any of
the Properties and which in the aggregate do not materially impair the value of any of the Properties or materially restrict the use thereof for the purposes for which any of the Properties
is held;

	17.
	any
and all statutory liens, charges, adverse claims, prior claims, security interests, deemed trusts or other Encumbrances of any nature whatsoever which are not registered on the
title to any of the Properties and of which the Borrower and/or any Guarantor does not have notice, claimed or held by any other governmental department, agency or authority under or pursuant to any
applicable legislation, statute or regulation;

	18.
	any
lien (a "tenant lien") a claim for which, although registered or of which notice has been given, relates solely to work done by or on behalf of a tenant under a Lease if
and so long as: 

the
Borrower and/or any Guarantor has not assumed or otherwise become liable for the payment of such work and the claimant is not pursuing such tenant lien against the Borrower; or 

such
tenant lien does not rank and is not capable of ranking prior to or pari passu with the security constituted by the lien of a
Mortgage; or 

there
has been deposited with the Lender or a Governmental Authority collateral in an amount sufficient to pay such tenant lien, including any interest accrued thereon and costs claimed in respect
thereof; and 

	19.
	any
security provided to the Lender including, without limitation, the Security. 

II.    Specific Permitted Title Encumbrances for the Gulfstream Lands

	1.
	Easement
as contained in Deed No. 5055 from George W. Hedrick, joined by his wife, Laura E.N. Hedrick, to L.S. Johnson and Sadie R. Johnson, husband and wife, recorded
March 13, 1918, in Deed Book 2, Page 405, Public Records of Broward County, Florida. 

3

 

	2.
	Right
of Way Agreement in favor of Florida Power & Light Company dated July 1, 1955, in Official Records Book 418, Page 435, Public Records of Broward County,
Florida.

	3.
	Easement
in favor of Florida Power & Light Company, recorded August 9, 1980, in Official Records Book 9047, Page 604, Public Records of Broward County, Florida.

	4.
	Easement
Deed — Water Main in favor of City of Hallandale, a municipal corporation, recorded March 27, 1998, in Official Records Book
27944, Page 354, Public Records of Broward County, Florida.

	5.
	Easement
Deed — 14th Avenue Canal in favor of City of Hallandale, a municipal corporation, recorded March 27, 1998, in
Official Records Book 27944, Page 357, Public Records of Broward County, Florida.

	6.
	Agreement
between Golden Isles Utilities Corporation, a Florida corporation, and Highland Lakes, Inc., a Florida corporation, recorded July 13, 1980, in Official Records
Book 1982, Page 33, Public Records of Broward County, Florida.

	7.
	Drainage
Easement in favor of the City of Hallandale, recorded April 9, 2004, in Official Records Book 37222, Page 80, Public Records of Broward County, Florida.

	8.
	Dedication
of streets, and avenues for the perpetual use of the public as set forth on the plat of Hallandale Park No. 12, Part 2, according to the Plat thereof,
as recorded in Plat Book 10, Page 17, Public Records of Broward County, Florida.

	9.
	Dedication
of avenues, boulevards and drives for the perpetual use of the public as set forth on the Plat of Hallandale Park, No. 12,
Riviera — Section, according to the Plat thereof, as recorded in Plat Boo 10, Page 18, Public Records of Broward County, Florida.

	10.
	Dedication
of streets, avenues and boulevards for the perpetual use of the public as set forth on the Plat of Golden Isles Boulevard Annex, Beach Section, according to the Plat
thereof, as recorded in Plat Book 12, Page 46, Public Records of Broward County, Florida. 

III.  Specified Permitted Title Encumbrances for the Aventura Lands Parcel 2

	1.
	Right
of Way Agreement in favor of Florida Power & Light Company, a Florida corporation, dated October 18, 1956, recorded in Deed Book 4349, Page 31, Public
Records of Miami-Dade County, Florida.

	2.
	Right
of Way Agreement in favor of Florida Power & Light Company, a Florida corporation, recorded June 27, 1957, in Official Records Book 311, Page 306, Public
Records of Miami-Dade County, Florida.

	3.
	Agreement
by and between Gulfstream Realty Corporation, a Florida corporation, The Netherton Corporation, a Florida corporation and Golden Isles Utilities Corporation, a Florida
corporation, recorded May 12, 1960, in Official Records Book 2054, Page 174, Public Records of Miami-Dade County, Florida. 

4

 

	4.
	Easement
Deed in favor of Golden Isles Utilities Corporation, a Florida corporation, recorded May 12, 1960, in Official Records Book 2054, Page 179, Public Records of
Miami-Dade County, Florida.

	5.
	Easement
Deed in favor of Golden Isles Utilities Corporation, a Florida corporation, recorded May 12, 1960, in Official Records Book 2054, Page 182, Public Records of
Miami-Dade County, Florida.

	6.
	Agreement
between Golden Isles Utilities Corporation, a Florida corporation and Highland Lakes, Inc., a Florida corporation, recorded July 13, 1960, in Official Records
Book 2156, Page 266; as amended by the Agreement recorded August 24, 1961, in Official Records Book 2773, Page 689, Public Records of Miami-Dade County, Florida.

	7.
	Unrecorded
Development Agreement by and between Adventura Commons Associates, Ltd., a Florida limited partnership, Trafalgar Associates of Aventura, Ltd., and Gulfstream
Park Racing Association, Inc., a Florida corporation, as evidenced by the Memorandum of Development Agreement recorded November 12, 1997, in Official Records Book 17863,
Page 2866; Confirmatory Agreement recorded September 6, 2000, in Official Records Book 19271, Page 221, all of the Public Records of Miami-Dade County, Florida.

	8.
	Easement
in favor of Florida Power & Light Company, a Florida corporation, recorded May 2, 2000, in Official Records Book 19092, Page 2020, Public Records of
Miami-Dade County, Florida.

	9.
	Easement
in favor of the City of Aventura recorded May 16, 2002, in Official Records Book 20400, Page 2646, Public Records of Miami-Dade County, Florida.

	10.
	Matters
set forth on the Plat of Donn Acres according to the Plat thereof, as recorded in Plat Book 76, Page 30, Public Records of Miami-Dade County, Florida. 

IV.   Specific Permitted Title Encumbrances for the Aventura Lands (Parcels 2 and 3)

	1.
	The
obligations set forth in the Agreement (creating a Drainage Easement) by and between Gulfstream Park Racing Association, Inc., a Florida corporation and City National Bank
of Miami, as Trustee Under Land Trust dated March 15, 1968, Trust No. 2-550-6, recorded June 1, 1984, in Official Records Book 12165, Page 206,
Public Records of Miami-Dade County, Florida. 

V.     Specified Permitted Title Encumbrances for the Aventura Lands (Parcel 3)

	1.
	Declaration
of Covenants, Conditions Restrictions, Easements, Charges and Liens, recorded December 1, 1983, in Official Records Book 11984, Page 300; First Amendment and
Supplemental Declaration recorded May 23, 1984, in Official Records Book 12156, Page 957; Second Amendment and Supplemental Declaration recorded November 1, 1984, in Official
Records Book 12314, Page 1118; Assignment of Declarations Rights recorded April 16, 1985, in Official Records Book 12479, Page 1926; Third Amendment and Supplemental Declaration
recorded March 3, 1986, in Official Records Book 12808, Page 1129; Fourth Amendment and Supplemental Declaration recorded February 25, 1988, in Official Records Book 13588,
Page 571; Fifth Amendment and Supplemental Declaration recorded August 16, 1990, in Official Records Book 14665, Page 1726; Sixth Amendment and Supplemental Declaration recorded
September 23, 1993, in Official Records Book 16063, Page 3602, all of the Public Records of Miami-Dade County, Florida. 

5

 

	2.
	Roadway
Easement, Conditions and Restrictions as set forth on the plat of The Waterways — Section 1, according to the Plat thereof,
as recorded in Plat Book 122, Page 81, Public Records of Miami-Dade County, Florida. 

VI.  Specified Permitted Title Encumbrances for the Palm Meadows Training
Center Lands

	1.
	Reservations
in favor of the Board of County Commissioners of Everglades Drainage District now known as the South Florida Water Management District as set forth and contained in that
certain Deed recorded in Deed Book 779, page 551, Public Records Palm Beach County, Florida. (as to Parcel 1)

	2.
	Reservation
of 50% of all oil, gas and other minerals as set forth and contained in that certain Quit Claim Deed recorded in Deed Book 919, page 35; as affected by Release of
Reservations No. 17199 By South Florida Water Management District On Lands Deeded By Board Of County Commissioners Of Everglades Drainage District recorded May 3, 1999 in Official
Records Book 11085, page 761; Non-Use Commitment No. 1361 By South Florida Water Management District On Lands Deeded By Board Of County Commissioners Of Everglades Drainage
District recorded October 2, 2002 in Official Records Book 14219, page 1917, all of the Public Records Palm Beach County, Florida. (as to Parcels 1 & 2)

	3.
	Covenant
set forth and contained in that certain Agreement by and between Boywic Farms Inc. and Florida State Turnpike Authority, a body corporate under the laws of the State of
Florida, recorded October 13, 1955 in Deed Book 1110, page 686, and Warranty Deed recorded November 7, 1955 in Deed Book 1113, page 434, all of the Public Records Palm
Beach County, Florida. (as to Parcels 1 & 2)

	4.
	Easement
in favor of Florida Power & Light Company recorded September 26, 1966 in Official Records Book 1429, page 585, Public Records Palm Beach County, Florida.
(as to Parcel 1)

	5.
	Rights
in Reservation in favor of the Lake Worth Drainage District, for canal and levee purposes, recorded March 28, 1972 in Official Records Book 1994, page 1573, and in
Official Records Book 1994, page 1615, all of the Public Records Palm Beach County, Florida. (as to Parcels 1 & 2)

	6.
	Easement
Deed in favor of Lake Worth Drainage District recorded February 4, 1994 in Official Records Book 8109, page 1487; as affected by Quit Claim Deed recorded
July 2, 2004 in Official Records Book 17201, page 554; Special Warranty Deed recorded September 19, 2004 in Official Records Book 17512, page 612, all of the Public Records
Palm Beach County, Florida. (as to Parcels 1 & 2) 

6

 

	7.
	Standard
Potable Water And Wastewater Development Agreement (SDA) by and between Palm Beach County, a subdivision of the State of Florida, and GPRA Thoroughbred Training
Centre, Inc., a Delaware corporation, recorded July 16, 2001 in Official Records Book 12729, page 1927, Public Records Palm Beach County, Florida. (as to Parcel
1 & 2)

	8.
	Kitchen
Equipment Removal Agreement by and between GPRA Thoroughbred Training Centre, Inc., and Palm Beach County recorded November 21, 2002 in Official Records
Book 14423, page 1762, Public Records Palm Beach County, Florida. (as to Parcel 1)

	9.
	Easement
in favor of Florida Power & Light Company recorded October 9, 2003 in Official Records Book 16002, page 55, Public Records Palm Beach County, Florida.
(as to Parcel 1)

	10.
	Utility
Easement in favor of Florida Power & Light Company recorded November 21, 2003 in Official Records Book 16225, page 849; as corrected by Corrective Utility
Easement in favor of Florida Power & Light Company recorded February 18, 2004 in Official Records Book 16561, page 1171, all of the Public Records Palm Beach County, Florida.
(as to Parcel 1)

	11.
	Utility
Easement in favor of Palm Beach County, c/o Water Utilities Department, recorded February 18, 2004 in Official Records Book 16561, page 1161, Public Records Palm
Beach County, Florida. (as to Parcel 1)

	12.
	Conditions
and Easement as set forth on the plat of PALM BEACH THOROUGHBRED TRAINING FARM, according to the plat thereof, as recorded in Plat Book 96, page 164
through 171, inclusive, Public Records Palm Beach County, Florida. (as to Parcel 1)

	13.
	Restrictive
Covenant recorded October 4, 2001 in Official Records Book 12961, page 1548; Modification to Restrictive Covenant Agreement recorded September 30,
2002 in Official Records Book 14207, page 1232, all of the Public Records Palm Beach County, Florida. (as to Parcel 1)

	14.
	Easement
in favor of Bellsouth Telecommunications, Inc., a Georgia corporation recorded October 25, 2002 in Official Records Book 14316, page 1290, Public Records
Palm Beach County, Florida. (as to Parcel 1) 

VII. Specific Permitted Title Encumbrances for the Remington Lands

	1.
	Final
Order Establishing Prior Ground Water Rights for Oklahoma County, recorded in Book 4840, page 601.

	2.
	Rules
and regulations described in Ordinance No. 16376, recorded in Book 4835, page 1021 and amended in Book 4881, page 414, establishing an Urban
Conservation District.

	3.
	Easement
in favor of Oklahoma Gas and Electric Company, recorded in Book 5542, page 1850, as to Tracts 2, 17, 20, 41, 43, 44 and 45. 

7

 

	4.
	Easement
in favor of Oklahoma Gas and Electric Company, recorded in Book 5542, page 1852, as to Tracts 34, 43 and 41.

	5.
	Easement
in favor of Oklahoma Gas and Electric Company, recorded in Book 5542, page 1854, as to Tracts 2, 17, 20 and 49.

	6.
	Grant
of Right-of-Way in favor of Champlin Refining Company, recorded in Book 170, page 561, as assigned to Champlin Petroleum Company by Assignment
recorded in Book 3148, page 331; Partial Release recorded in Book 4063, page 822 and in Book 5636, page 1322, as to Tract 2.

	7.
	Right-of-Way
in favor of Cimarron Valley Pipe Line Company, recorded in Book 509, page 49, subsequently assigned to Mid-Continent Pipe Line
Company by Assignment recorded in Book 5275, page 1905; Partial Release recorded in Book 4063, page 822 and in Book 5636, page 1322, as to Tract 2.

	8.
	Right-of-Way
in favor of Standish Pipe Line Company, recorded in Book 520, page 333; Assignment to Mega Natural Gas Company, recorded in Book 5429,
page 9; Partial Release recorded in Book 4063, page 824 and in Book 6370, page 2109, as to Tracts 22 and 24.

	9.
	Right-of-Way
Contract in favor of Standish Pipe Line Company, recorded in Book 520, page 346; Assignment to Mega Natural Gas Company, recorded in Book
5429, page 9; Partial Release recorded in Book 6370, page 2109, as to Tracts 22 and 24.

	10.
	Right-of-Way
Contract in favor of Standish Pipe Line Company, recorded in Book 520, page 347; Assignment to Mega Natural Gas Company, recorded in Book
5429, page 9; Partial Release recorded in Book 6370, page 2109, as to Tracts 22 and 24.

	11.
	Easement
as set forth in Administrator's Deed, recorded in Book 1425, page 657, as to Tracts 17, 19 and 49.

	12.
	Resolution
amending zoning regulations recorded in Book 1785, page 149, as to Tracts 34, 42, 43, 44, 45, 46, 47 and 48.

	13.
	Pipe
Line Right-of-Way in favor of Champlin Refining Company recorded in Book 1866, page 268; Assignment to Williams Pipe Line Company, recorded in Book
5219, page 440; Pipeline Relocation Agreement recorded in Book 5671, page 1104; Corrected partial release recorded in Book 5671, page 1097; Partial Release recorded in Book 5656,
page 252 and in Book 6370, page 2126, as to Tracts 16, 17, 20 and 21.

	14.
	Pipe
Line Right-of-Way in favor of Champlin Refining Company recorded in Book 1866, page 269; Assignment to Williams Pipe Line Company, recorded in Book
5219, page 440; Pipeline Relocation Agreement recorded in Book 5671, page 1104; Corrected partial release recorded in Book 5671, page 1097; Partial Release recorded in Book 5656,
page 252 and in Book 6370, page 2126, as to Tract 19. 

8

 

	15.
	Pipe
Line Right-of-Way in favor of Champlin Refining Company recorded in Book 1866, page 270; Assignment to Williams Pipe Line Company, recorded in Book
5219, page 440; Partial Release recorded in Book 4063, page 822; Pipeline Relocation Agreement recorded in Book 5671, page 1104; Partial Release recorded in Book 5636,
page 1322; Corrected partial release recorded in Book 5671, page 1097; Partial Release recorded in Book 5656, page 252, as to Tract 2.

	16.
	Easement
and Right-of-Way in favor of the Town of Nichols Hills, recorded in Book 2002, page 272, as to Tract 43.

	17.
	Easement
set forth in Report of Commissioners No. 141217, recorded in Book 2164, page 331, as amended by Judgment recorded in Book 2218, page 528, as
to Tract 42.

	18.
	Easement
in favor of the State of Oklahoma, recorded in Book 2344, page 267, as to Tract 34.

	19.
	Easement
in favor of the State of Oklahoma, recorded in Book 2344, page 269, as to Tracts 34, 42 and 43.

	20.
	Easement
in favor of the State of Oklahoma, recorded in Book 2344, page 271, as to Tracts 34, 42 and 43.

	21.
	Pipeline
License in favor of the City of Oklahoma City, recorded in Book 3057, page 446, as to Tract 49.

	22.
	Right-of-Way
Grant in favor of Phillips Petroleum Company, recorded in Book 5200, page 1249, as to Tracts 42 and 43, and Assignment to GPM
Gas Company, L.L.C., recorded in Book 7824, page 1411.

	23.
	Utility
Easements as shown on the recorded plat of Eastern Industrial District, recorded in Book 33 of Plats, page 55, as to Tract 27.

	24.
	Restrictive
covenants recorded in Book 2135, page 161, and in Book 12 of Plats, page 96, as amended by Journal Entry No. 163584, recorded in Book 870,
page 457, which do not provide for a forfeiture or reversion of title upon violation thereof, but deleting any covenant, condition or restriction indicating a preference, limitation or
discrimination based on race, colour, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c), as to Tracts
27 and 32.

	25.
	Building
lines and alley as shown on the recorded plat of Castle Hill Addition, recorded in Book 12 of Plats, page 96, as to Tract 32.

	26.
	Easement
in favor of Oklahoma Gas and Electric Company, recorded in Book 5559, page 377, as to Tract 43.

	27.
	Dedication
of Permanent Easement to the Public, recorded in Book 5594, page 1555, as to Tracts 27, 28, 34, 44 and 45. 

9

 

	28.
	Lease
Agreement dated June 10, 1986 by and between the City of Nichols Hills, Oklahoma, a municipal corporation, Lessor, and Oklahoma City Zoological Trust, a public trust,
Lessee, filed October 6, 1986 and recorded in Book 5533, page 792; Amended and Restated Lease Agreement dated September 9, 1986, filed October 6, 1986 and recorded in Book
5533, page 860, as to Tract 47.

	29.
	Lease
Agreement dated June 12, 1986 by and between the Board of Regents of The University of Oklahoma, a body corporate, Lessor, and The Oklahoma City Zoological
Society, Inc., an Oklahoma charitable corporation, Lessee, filed February 17, 1987 and recorded in Book 5589, page 211; Assignment and Assumption of Lease dated June 13,
1986, filed February 17, 1987 and recorded in Book 5589, page 242, as to Tracts 42 and 43.

	30.
	Amended
and Restated Lease Agreement dated September 30, 1986 by and between the City of Oklahoma City, a municipal corporation and the Oklahoma City Zoological Trust, filed
February 17, 1987 and recorded in Book 5589, page 246, as to Tracts 2, 16, 17, 19-24, 27, 28, 30, 31, 32, 34, 41, 44, 45, 46, 48 and 49; Amended and Restated Lease,
recorded in Book 5606, page 1735; Amended and Restated Lease and Operating Agreement, recorded in Book 6058, page 1170, Second Amended and Restated Lease and Operating Agreement,
recorded in Book 7627, page 565; Ratification and Extension of Lease, recorded in Book 7627, page 627 and Partial Release of Amended and Restated Lease Agreement, Amended and
Restated Lease and Operating Agreement, Second Amended and Restated Lease and Operating Agreement, and Ratification and Extension of Lease, recorded in Book 8458, page 407.

	31.
	Pipeline
Right-of-Way Easement in favor of Mega Natural Gas Company, recorded in Book 5609, page 494; Partial Release recorded in Book 6370,
page 2109.

	32.
	Easement
in favor of the City of Oklahoma City, recorded in Book 5609, page 469, as to Tracts 42 and 43.

	33.
	Easement
in favor of the public as set forth in Dedication filed April 27, 1987 and recorded in Book 5621, page 405; Partial Release recorded in Book 6370,
page 2144 and in Book 6370, page 2145, as to Tracts 22 and 31.

	34.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2363.

	35.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2367.

	36.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2371.

	37.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2375. 

10

 

	38.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2381.

	39.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2385.

	40.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2391.

	41.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2395.

	42.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6356, page 2399.

	43.
	Permanent
Easement in favor of the City of Oklahoma City, recorded in Book 6370, page 2115.

	44.
	Right-of-Way
agreement in favor of Oklahoma Natural Gas Company, recorded in Book 6370, page 2121.

	45.
	Right-of-Way
Agreement in favor of Oklahoma Natural Gas Company, recorded in Book 6370, page 2133.

	46.
	Easement
in favor of Oklahoma Gas and Electric Company, recorded in Book 6385, page 1762.

	47.
	Agreement
by and between the City of Oklahoma City, a municipal corporation and the Trustees of Oklahoma City Public Property Authority, a public trust and the Oklahoma City
Zoological Trust, a public trust, dated September 1, 1998, filed June 30, 1999 and recorded in Book 7627, page 585.

	48.
	With
respect to Deep Fork Creek:

	•
	change
in its course, or channels thereof, in any manner, affecting title to the Land;

	•
	rights
of others in and to the continued uninterrupted flow of the waters; and

	•
	riparian
rights.

	49.
	Easement
in favor of Oklahoma Gas and Electric Company, recorded in Book 6370, page 2103.

	50.
	Encroachment
of building located in Tract 43 onto Oklahoma Gas and Electric Company easement recorded in Book 6370, page 2103.

	51.
	Release
of Amended and Restated Lease Agreement among the City of Oklahoma City, the Trustees of the Oklahoma City Zoological Trust and the Amateur Softball Association of America,
recorded in Book 8458, page 402; Quit Claim Deed from Amateur Softball Association of America in favor of the City of Oklahoma City, recorded in Book 8458, page 413 and Agreement
and Amendment Number Two to Amended and Restated Lease of February 3, 1987, recorded in Book 8458, page 417. 

11

 
 

SCHEDULE D
  
    Legal Description of the Palm Meadows Training Center Lands    
    

PARCEL
1: 

        All
of the Plat of PALM BEACH THOROUGHBRED TRAINING FARM, according to the plat thereof, as recorded in Plat Book 96, page 164 through 171, inclusive, Public Records Palm
Beach County, Florida. 

LESS
AND EXCEPT: 

        All
of Parcel B and the South 80.00 feet of Parcel A, PALM BEACH THOROUGHBRED TRAINING FARM, according to the plat thereof, as recorded in Plat Book 96, page 164
through 171, inclusive, Public Records Palm Beach County, Florida. 

PARCEL
2: 

        That
part of Tracts 55, 86, 87 and 118, Block 46, THE PALM BEACH FARMS CO. PLAT NO. 3, according to the plat thereof, as recorded in Plat Book 2, pages 45
through 54, inclusive, Public Records Palm Beach County, Florida. 

AND

        That
part of Tracts 1 and 32, Block 50, THE PALM BEACH FARMS CO. PLAT NO. 3, according to the plat thereof, as recorded in Plat Book 2, pages 45 through 54,
inclusive, Public Records Palm Beach County, Florida, lying East of the Florida's Turnpike. 

TOGETHER
WITH THE FOLLOWING RIGHTS OF WAY: 

        The
South 1/2 of the 30 foot platted right of way as shown on the said Plat of THE PALM BEACH FARMS COMPANY PLAT NO. 3, lying North of and adjacent to Tract 55,
Block 46, according to the said Plat of THE PALM BEACH FARMS COMPANY PLAT NO. 3 bounded on the East by a line lying 25 feet East of the Northerly extension of the East line of Tract 55
of said Block 46, and bounded on the West by the East right of way line of the Florida State Turnpike as described in Deed Book 1113, pages 434 and 435 of the Public Records Palm Beach
County, Florida. 

AND
ALSO 

        All
of that certain 30 foot right of way lying between Tracts 86 and 87, Block 46, THE PALM BEACH FARMS COMPANY PLAT NO. 3, bounded on the West by the East right of way line of
that certain right of way for the Florida State Turnpike as descried in Deed Book 1113, pages 434 and 435 of the Public Records Palm Beach County, Florida and bounded on the East by a
line lying 25 feet East of the Northerly extension of the East line of said Tract 87. 

AND
ALSO 

 

        The
North 1/2 of the 50 foot right of way lying South of Tract 118, Block 46, according to the said Plat of THE PALM BEACH FARMS COMPANY PLAT NO. 3 bounded
on the West by the East right of way line of the Florida State Turnpike as described in Deed Book 1113, pages 434 and 435 of the Public Records Palm Beach County, Florida, and bounded on
the East by a line lying 25 feet East of the Southerly extension of the East line of said Tract 118. 

AND
ALSO 

        The
South 1/2 of the 50 foot platted right of way as shown on said Plat of THE PALM BEACH FARMS COMPANY PLAT NO. 3, lying North of and adjacent to Tract 1, Block
50, according to the said Plat of THE PALM BEACH FARMS COMPANY PLAT NO. 3 bounded on the East by a line lying 25 feet East of the Northerly extension of East line of Tract 1 of said
Block 50, and bounded on the West by the East right of way line of the Florida State Turnpike as described in Deed Book 1113, pages 434 and 435, of the Public Records Palm Beach County,
Florida. 

AND
ALSO 

        All
that part of the North 1/2 of a 30 foot right of way lying South of Tract 32, Block 50, according to the said Plat of THE PALM BEACH FARMS COMPANY PLAT NO. 3
and its Easterly extension to a line lying 25 foot East of and parallel with the East line of said Tract 32, all lying East of the East right of way line of the Florida's Turnpike as described
in Deed Book 1113, pages 434 and 435 of the Public Records Palm Beach County, Florida. 

AND
ALSO 

        The
West 1/2 of that certain 50 foot road right of way lying adjacent to the East line of Tracts 1 and 32, Block 50, according to the said Plat of PALM BEACH FARMS
COMPANY PLAT NO. 3. 

AND
ALSO 

        All
of that certain 25 foot road right of way lying adjacent to the East line of Tracts 55, 86, 87 and 118, Block 46, according to the said Plat of PALM BEACH FARMS COMPANY PLAT
NO. 3. 

LESS
AND EXCEPT THE FOLLOWING DESCRIBED PROPERTY: 

        A
portion of the North 1/2 of the 30 foot Platted road right of way lying South of Tracts 17 through 32, Block 50; portions of Tracts 32 and 1, Block 50; a portion
of the 50 foot platted road right of way lying between Blocks 50 and 48; portions of tracts 115 and 87, Block 46; a portion of the 30 foot platted road right of way lying between Tracts
87 and 88 of said Block 46; portions of Tracts 86 and 65; a portion of the South 1/2 of the 30 foot platted road lying North of Tracts 55 through 70, Block 46, all of PALM BEACH
FARMS COMPANY PLAT NO. 3, according to the Plat thereof, as recorded in Plat Book 2, pages 45 through 54, of the Public Records Palm Beach County, Florida, described as follows: 

2

 

        Begin
at the intersection of the West right of way of the Sunshine State Parkway (Miami to Fort Pierce Section) according to the right of way map station 2016+27.78 to
2126+18.91 Palm Beach County (Contract 3.2, sheets 6 and 7 of 13) with the South line of the said North 1/2 of the 30 foot platted road right of way lying South of
Tracts 17 through 32, Block 50 of said PALM BEACH FARMS COMPANY PLAT NO. 3; thence South 89 degrees 59 minutes 00 seconds West, along said South line, a distance of
7.58 feet thence North 00 degrees 06 minutes 36 seconds West, along the West boundaries of said Tracts 32 and 1, Block 50 and the Northerly and Southerly extensions
thereof, also along the West boundaries of said Tracts 118, 87, 86 and 55, Block 46 and the Northerly and Southerly extensions thereof, a distance of 4075.16 feet to the North boundary of the
said South 1/2 of the 30 foot platted road right of way lying North of Tracts 55 through 70, Block 46; thence North 89 degrees 57 minutes 42 seconds East,
along said North boundary a distance of 6.80 feet to the said West right of way of said Sunshine State Parkway; thence South 00 degrees 07 minutes 15 seconds East, along
said West right of way a distance of 4075.17 feet to the POINT OF BEGINNING> 

3

 
 

SCHEDULE E
  
    Legal Description of the Gulfstream Lands    
    

PARCEL 1 (FEE SIMPLE ESTATE)  

        The East 180.6 feet of Lot 1, Block 7; LESS the North 75 feet thereof for State Road Right of way; 

        The
South 300.00 feet of Lot 1, Block 7; LESS the East 180.6 feet thereof; and also less the West 33.23 feet thereof; 

        Lot
4, Block 7, less the North 25.00 feet of the West 33.23 feet thereof; 

        Lots
3 and 4, Block 8; 

        Lots
1, 2, 3 and 4, Block 9; 

        Lots
1, 2, 3 and 4, Block 10; 

        Lots
1, 2, 3 and 4, Block 15; 

        Lots
1, 2, 3 and 4, Block 16; 

        All
of the Subdivision in Section 27, Township 51 South, Range 42 East, according to the Plat of TOWN OF HALLANDALE, according to the Plat thereof, as recorded in
Plat Book B, Page 13, Public Records of Dade County, Florida, now being a part of Broward County, Florida. 

        LESS
AND EXCEPT from all the above those portions lying West of the East right of way of Federal Highway (U.S. No. 1), said East right of way lien being described as
follows: Beginning at the intersection of the North line of said Lot 2, Block 10, with a line that lies 90.00 feet East of and parallel with the West line of the Southeast One Quarter
(SE 1/4) of said Section 27; thence Southerly along said parallel line a distance of 1869.97 feet; to the point of curvature of a curve concave to the West and
having a radius of 3909.83 feet; thence Southerly along said curve through a central angle of 12 degrees 03 minutes 38 seconds for an arc distance of 823.02 feet to
a point of terminus on the South line of the Southeast One Quarter (SE 1/4) of said Section 27, Township 51 South, Range 42 East, Broward County, Florida. 

        Portions
of the Plat of TOWN OF HALLANDALE, according to the Plat thereof, as recorded in Plat Book B, Page 13, Public Records of Miami-Dade County, Florida, now being
a portion of Broward County, Florida, as reflected in the legal description set forth above were replatted by the following plats: 

 

	(a)
	HALLANDALE
PARK NO. 12 PART 2, recorded in Plat Book 10, Page 17, Public Records of Miami-Dade County, Florida, now being a portion of Broward County,
Florida.

	(b)
	HALLANDALE
PARK NO. 12 REVISED-SECTIONS, recorded in Plat Book 10, Page 18, Public Records of Miami-Dade County, Florida, now being a portion of Broward
County, Florida.

	(c)
	GOLDEN
ISLES BOULEVARD ANNEX BENCH SECTION, recorded in Plat Book 12, Page 46, Public Records of Miami-Dade County, Florida, now being a portion of Broward County,
Florida. 

AND

        All
of the subdivisions of HOLLYDALE PARK, according to the Plat thereof, as recorded in Plat Book 11, Page 2, Public Records of Broward County, Florida. 

        LESS
AND EXCEPT THEREFROM all of Hibiscus Street as shown on said HOLLYDALE PARK, a/k/a the north 25 feet of the Southwest One Quarter (SW 1/4) of the
Southwest One Quarter (SW 1/4) of the Northeast One Quarter (NE 1/4) of Section 27, Township 51 South, Range 42 East, Broward County,
Florida. 

        ALSO
EXCEPTING THEREFROM all that portion of said Hollydale Park lying West of a line 90.00 feet East of and parallel with the West line of the Southwest One Quarter
(SW 1/4) of the Southwest One Quarter (SW 1/4) of the Northeast One Quarter (NE 1/4) of Section 27, Township 51 South,
Range 42 East, Broward County, Florida. 

AND 

        The
West One Half (W 1/2) of the Southwest One Quarter (SW 1/4) of the Northwest One Quarter (NW 1/4) of the Southwest
One Quarter (SW 1/4) and the West One Half (W 1/2) of the Northwest One Quarter (NW 1/4) of the Southwest One Quarter
(SW 1/4) of the Southwest One Quarter (SW 1/4) of Section 26, Township 51 South, Range 42 East, Broward County, Florida. 

        ALSO
LESS AND EXCEPT THEREFROM all of the above description property conveyed by the Deed to the State of Florida for use and benefit of the State of Florida Department of Transportation
as set forth in the Deed recorded in Official Record Book 13597, Page 886, Public Records of Broward County, Florida, described as follows: That part of Lots 2 and 3, Block 15, TOWN OF
HALLANDALE, according to the Plat thereof, as recorded in Plat Book B, Page 13, Public Records in Broward County, Florida, said part being more particularly described as follows: Commence at
the Northeast corner of the Southeast Quarter of Section 27, Township 51 South, Range 42 East; thence South 87 degrees 07 minutes 18 seconds West along the
North line of said Southeast Quarter of Section 27, a distance of 2665.11 feet to the Northwest corner of said Southeast Quarter of Section 27; thence South 02 degrees
52 minutes 00 seconds East along the West line of the East Half of said Section 27 a distance of 1869.97 feet; thence North 87 degrees 08 minutes
00 seconds East a distance of 94.5 feet; thence South 02 degrees 52 minutes 00 seconds East a distance of 4.32 feet to the POINT OF BEGINNING; thence continue
South 02 degrees 52 minutes 00 seconds East, a distance of 32.91 feet to the beginning of a curve concave Westerly, having a radius of 3743.00 feet and a chord
bearing of South 0 degrees 21 minutes 43 seconds East; thence run Southerly along the arc of said curve through a central angle of 5 degrees 00 minutes
35 seconds a distance of 327.27 feet; thence South 6 degrees 49 minutes 12 seconds West a distance of 99.85 feet to a point on the existing Easterly right of
way line of State Road 5 and the beginning of a curve concave to the West, said curve having a radius of 3819.83 feet and a chord bearing of North 1 degree 32 minutes
43 seconds East; thence Northerly along the arc of said curve a distance of 318.44 feet through a central angle of 4 degrees 46 minutes 35 seconds to the end of said
curve; thence along the South line of said Lot 3, Block 15, North 87 degrees 02 minutes 19 seconds East a distance of 2.11 feet; thence continue along said existing
Easterly right of way line North 2 degrees 52 minutes 00 seconds West a distance of 140.79 feet; thence leaving said existing Easterly right of way line run North
87 degrees 08 minutes 00 seconds East a distance of 4.50 feet to the POINT OF BEGINNING. 

2

 

        ALSO
LESS AND EXCEPT THEREFROM all of the above described property conveyed to the State of Florida for the use and benefit of the State of Florida Department of Transportation as set
forth in the Deed recorded in Official Records Book 15493, Page 113, Public Records of Broward County, Florida, described as follows: That part of Lots 10 and 11, Block 2, of HOLLYDALE PARK,
according to the Plat thereof, as recorded in Plat Book 11, Page 2, Public Records of Broward County, Florida, and that part of a 25 foot abandoned and vacated road as shown on said Plat
of Hollydale Park and that part of Lot 2, Block 10 of the TOWN OF HALLANDALE, according to the Plat thereof, as recorded in Plat Book B, Page 13, Public Records in Dade County, Florida, said
part being more particularly described as follows: Commence at the Southwest corner of the Northwest Quarter in Section 27, Township 51 South, Range 42 East; thence North
87 degrees 07 minutes 28 seconds East, along the Quarter Section lien of said Section 27 a distance of 2655.87 feet to the baseline of survey for State Road 5;
thence North 02 degrees 52 minutes 00 seconds West a distance of 62.77 feet; thence North 87 degrees 08 minutes 00 seconds East a distance of
90.00 feet to the Easterly existing right of way for State Road 5 and the POINT OF BEGINNING; thence South 67 degrees 58 minutes 47 seconds East a distance of
23.16 feet; thence North 87 degrees 07 minutes 18 seconds East a distance of 10.97 feet; thence South 02 degrees 52 minutes 42 seconds East a
distance of 106.00 feet; thence South 42 degrees 07 minutes 39 seconds West a distance of 38.89 feet; thence South 02 degrees 52 minutes
00 seconds East a distance of 200.25 feet; thence South 00 degrees 56 minutes 51 seconds West a distance of 67.65 feet; thence North 02 degrees
52 minutes 00 seconds West a distance of 411.00 feet to the POINT OF BEGINNING; and that part of Lots 1 and 2 in Block 1 of HOLLYDALE PARK, according to the Plat thereof,
as recorded in Plat Book 11, Page 2, of the Public Records in Broward County, Florida, said part being more particularly described as follows: Commence at the Southwest corner of the Northwest
quarter in Section 27, Township 51 South, Range 42 East; thence North 87 degrees 07 minutes 28 seconds East a distance of 2655.87 feet to the baseline
of Survey for State Road 5; thence North 02 degrees 52 minutes 00 seconds West a distance of 618.41 feet; thence South 87 degrees 08 minutes 00 seconds
East a distance of 90.00 feet to the POINT OF BEGINNING; thence North 32 degrees 50 minutes 45 seconds East a distance of 40.03 feet; thence South 87 degrees
12 minutes 47 seconds West a distance of 23.36 feet to the Easterly existing right of way for State Road 5; thence South 02 degrees 52 minutes 00 seconds East
a distance of 32.53 feet to the POINT OF BEGINNING. 

3

QuickLinks

THIRD AMENDED AND RESTATED GULFSTREAM LOAN AGREEMENT (Reconstruction of and Addition of Additional Slots Facilities at Gulfstream Park, Florida)

TABLE OF CONTENTS

SCHEDULE A Legal Description of the Aventura Lands

SCHEDULE B Legal Description of the Remington Lands

SCHEDULE C Permitted Encumbrances

SCHEDULE D Legal Description of the Palm Meadows Training Center Lands

SCHEDULE E Legal Description of the Gulfstream LandsQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.2  

 
 

SIXTH AMENDING AGREEMENT    
    

        THIS AGREEMENT is made as of December 22, 2006, 

B E T W E E N:  

 
 

MAGNA ENTERTAINMENT CORP.
  as Borrower (the "Borrower")    
    

 
 

 — and —   

 
 

THE GUARANTORS SET FORTH
  ON THE SIGNATURE PAGES HEREOF
  as Guarantors (collectively, the "Guarantors")    
    

 
 

 — and —   

 
 

BANK OF MONTREAL, ACTING THROUGH ITS
  CHICAGO LENDING OFFICE
  as Lender (the "Lender")    
    

 
 

 — and —   

 
 

BANK OF MONTREAL, ACTING THROUGH ITS
  CHICAGO LENDING OFFICE
  as Agent (the "Agent")    
    

RECITALS:  

	A.
	The
Lender has made a certain credit facility available to the Borrower in accordance with the terms and conditions set out in an amended and restated credit agreement
(the "Loan Agreement") dated as of July 22, 2005, between the Borrower, the Guarantors, the Lender, the Agent and BMO Nesbitt Burns Inc., a Division of Bank of Montreal, as
arranger, as amended by a first amending agreement dated July 26th, 2006, a second amending agreement dated November 6th, 2006, a third amending agreement dated November 27, 2006,
a fourth amending agreement dated December 12, 2006 and a sixth amending agreement dated December 19, 2006;

	B.
	The
Borrower, the Lender and the Agent have agreed to further amend the Loan Agreement by, among other things, extending the Maturity Date on the terms and conditions set
out herein; 

 
	C.
	The
Borrower made a permanent reduction of the Loan by repaying $39,000,000 of the Loan on November 14, 2006, such that the remaining outstanding amount of the Loan, and the
maximum amount of the Aggregate Commitment, after such payment was $25,000,000 (the "Loan Adjustment");

	D.
	The
Borrower has requested that the Aggregate Commitment as adjusted by the Loan Adjustment be increased by $15,000,000 (the "Additional Amount") and the parties hereto wish to
amend the Loan Agreement reflect this increase to the Aggregate Commitment.

	E.
	The
Guarantors have agreed to confirm the guarantees and security granted by them in connection with the Loan Agreement. 

        NOW THEREFORE in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged) the parties agree as follows: 

1.     Interpretation  

        Capitalized terms not defined in this Sixth Amending Agreement have the meaning given to such terms in the Loan Agreement. 

2.     Loan Agreement Amendment  

        The parties hereto agree to amend the Loan Agreement as follows: 

        (a)   by
deleting the amount "$64,000,000" set forth in Section 1.1.6 and opposite the Lender's name in
Schedule 1.1.65 thereof and replacing the same with "$40,000,000" such that, after taking into account the Loan Adjustment, the maximum amount of
the Aggregate Commitment is increased by the Additional Amount to $40,000,000; 

        (b)   by
deleting section 1.9 of the Loan Agreement in its entirety and replacing it with the following: 

"Applicable Margin" means for Base Rate Loans, 5.0%, and (ii) Libor Loans, 6.0%." 

	(c)
	by
deleting the reference to "December 19, 2006" in Section 1.1.120 and replacing it with a reference to  "March 30th, 2007" such that
March 30th, 2007 will be the "Termination Date" for the purposes of the Loan Agreement;
 

2

 

        (d)   by
deleting Section 7.1.18 in its entirety and replacing it with the following: 

"7.1.18
EBITDA Maintenance. The Borrower shall maintain an aggregate EBITDA from operations at the Santa Anita Premises and Golden Gate Premises
calculated on a rolling 12 month basis as at the end of each Fiscal Quarter, of not less than $15,000,000 provided that, in each case, notwithstanding paragraph (c) of the definition of
EBITDA, all net gains from the sale of real estate which were included in the calculation of Net Income will be deducted from EBITDA for purposes of this section 7.1.18."; 

3.     Additional Advance  

        The Lender shall make available the Additional Amount, to be drawn upon by Borrower in accordance with the terms of the Loan Agreement. 

4.     Conditions Precedent to Loan Agreement Amendments  

        The obligation of the Lender to agree to the amendment herein, and to make available the Additional Amount, is subject to fulfillment of the following conditions
precedent on the date hereof: 

	(a)
	the
representations and warranties of the Borrower set out in section 6.1 of the Loan Agreement are true and correct on the date hereof provided if any such representation and
warranty is specifically given as of any particular date or particular period of time, then such representation and warranty shall continue to be given as at such date or such period of time;

	(b)
	no
Default or Event of Default has occurred or is continuing or would arise immediately after giving effect to or as a result of the amendment herein;

	(c)
	no
Material Adverse Change since September 30th, 2006 shall have occurred;

	(d)
	payment
in full of all reasonable invoiced fees, including for greater certainty, a commitment fee of 50 bps of the Aggregate Commitment and all reimbursable
out-of-pocket expenses payable by the Borrower on or prior to the date hereof including payment of all reasonable fees, disbursements and out-of-pocket
expenses of counsel to the Agent and the Lenders; and

	(e)
	such
other documentation or information as the Lender shall have reasonably requested. 

5.     Loan Agreement  

        Save as expressly amended by this Sixth Amending Agreement, all other terms and conditions of the Loan Agreement and each of the Loan Documents remain in full
force and effect, unamended, and this Sixth Amending Agreement constitutes a Loan Document for the purposes of the Loan Agreement. 

3

 

6.     Confirmation of Guarantee and Security  

        Except for Bay Meadows Operating Company LLC (the "Released Guarantor") whose obligations under the Loan Agreement and the Loan Documents to which
it is a party are being released pursuant to Section 7 hereto, each of the Guarantors acknowledges and confirms that (i) the guarantee granted by it pursuant to Article 10 of the
Loan Agreement constitutes a continuing guarantee of, among other things, all present and future obligations of the Borrower to the Lender under the Loan Agreement and shall remain in full force and
effect; and (ii) each of the other Loan Documents executed by it shall remain in full force and effect. In addition, (i) MEC Land Holdings (California) Inc. acknowledges and
confirms that the Golden Gate Mortgage constitutes continuing security for the obligations secured thereby and shall remain in full force and effect, and (ii) The Santa Anita
Companies, Inc. acknowledges and confirms that the Santa Anita Mortgage constitutes continuing security for the obligations secured thereby and shall remain in full force and effect. 

7.     Release of Guarantee and Security  

        The Lender hereby acknowledges and agrees that the Released Guarantor is released from all of its obligations under the Loan Agreement and the Loan Documents to
which it is a party and, as such, the Released Guarantor shall not, with respect to and under the Loan Agreement and the other Loan Documents to which it is a party, have any obligation of any kind to
any of the parties hereto or to any third party. 

8.     Lender Consent  

        Lender acknowledges that the Borrow has advised that a third amended and restated construction loan agreement pertaining to Gulfstream Park will be executed on or
about the same date hereof and that said agreement will increase to $162,250,000 (plus amortized interest and lender's costs) the amount of said loan in order that an additional $21,500,00 (plus
amortized interest and lender's costs) can be advanced and applied toward construction, equipment and other costs related to the installation of an additional 700 slot machines at Gulfstream
Park. Lender hereby consents to the increase described in the immediately preceding sentence. 

9.     Counterparts  

        This Sixth Amending Agreement may be signed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same instrument. 

4

 

        IN WITNESS WHEREOF this Sixth Amending Agreement has been executed by the parties hereto as of the date first written above. 

	 
	 	 
	 

	
 	
 	
MAGNA ENTERTAINMENT CORP.,

as Borrower
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary
	
 	
 	
PACIFIC RACING ASSOCIATION,

as Guarantor, but only with respect to Article 10 of

the Loan Agreement and all other provisions

related thereto
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary

5

 

	 
	 	 
	 

	
 	
 	
 MEC LAND HOLDINGS (CALIFORNIA) INC.,

as Guarantor, but only with respect to Article 10

of the Loan Agreement and all other provisions

related thereto
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary

6

 

	 
	 	 
	 

	
 	
 	
THE SANTA ANITA COMPANIES, INC.,

as Guarantor, but only with respect to Article 10 of

the Loan Agreement and all other provisions

related thereto
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary
	
 	
 	
3000 MARYLAND INVESTMENTS LLC
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary

7

 

	 
	 	 
	 

	
 	
 	
MEC MARYLAND INVESTMENTS INC.
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary
	
 	
 	
LOS ANGELES TURF CLUB, INCORPORATED,

as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	
 	
 	

By:	

 Name: Blake S. Tohana

Title: Executive Vice-President and

Chief Financial Officer
	
 	
 	

By:	

 Name: William G. Ford

Title: Secretary

8

 

	 
	 	 
	 

	
 	
 	
BANK OF MONTREAL, acting

through its Chicago lending office, as Lender
	
 	
 	

By:	

	
 	
 	

By:	

	
 	
 	
BANK OF MONTREAL,

acting through its Chicago lending office, as Agent
	
 	
 	

By:	

 Name:

Title:
	
 	
 	

By:	

 Name:

Title:

9

QuickLinks

SIXTH AMENDING AGREEMENT

MAGNA ENTERTAINMENT CORP. as Borrower (the "Borrower")

— and —

THE GUARANTORS SET FORTH ON THE SIGNATURE PAGES HEREOF as Guarantors (collectively, the "Guarantors")

— and —

BANK OF MONTREAL, ACTING THROUGH ITS CHICAGO LENDING OFFICE as Lender (the "Lender")

— and —

BANK OF MONTREAL, ACTING THROUGH ITS CHICAGO LENDING OFFICE as Agent (the "Agent")

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]