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                                                                   EXHIBIT 10.11

                                                MAGNA ENTERTAINMENT CORP.

                                                337 Magna Drive
                                                Aurora,  Ontario, Canada L4G 7K1

September 27, 2001

                                                          PRIVATE & CONFIDENTIAL

Mr. Edward C. Hannah,
12 Katsura Place, R. R. No. 1,
Jerseyville, Ontario,
L0R 1R0.

Dear Ed:

                  RE: EMPLOYMENT WITH MAGNA ENTERTAINMENT CORP.

In accordance with our recent discussions, this letter will confirm that the
following shall be the terms and conditions of your employment with Magna
Entertainment Corp. ("MEC" or the "Corporation"), as follows:

1.   POSITION: Subject to the approval of the Board of Directors of the
     Corporation, you are appointed as Vice-President and General Counsel of the
     Corporation, reporting to the President and Chief Executive Officer of the
     Corporation or his designees.

2.   BASE SALARY: Your Base Salary shall be Cdn. $500,000 per annum (less
     statutorily required deductions), payable in arrears in accordance with the
     Corporation's standard payroll practices.

3.   GUARANTEED ANNUAL BONUS: In addition to your Base Salary, commencing
     January 1, 2002 you shall receive a Guaranteed Annual Bonus (inclusive of
     all entitlement to vacation pay, and less statutorily required deductions)
     in the amount of Cdn. $500,000 per annum payable quarterly in arrears at
     the end of each calendar quarter. In the event you and the Corporation
     agree in the future on an annual bonus in the form of your participation in
     the pre-tax profits of the Corporation, you agree that your Base Salary
     will be adjusted as agreed and your Guaranteed Annual Bonus will either be
     eliminated immediately or phased out over not more than one year.

4.   BENEFITS: During your employment by the Corporation, you will be entitled
     to:

     (a)  participate in all group insurance and benefit programs generally
          applicable to salaried employees of the Corporation from time to time,
          with the exception of any profit sharing plan, pension plan or any
          equivalent or related plans which may be in effect from time to time;

     (b)  four (4) weeks vacation in respect of each completed twelve (12) month
          period, to be taken at such time or times as are mutually convenient
          to you and the Corporation, but not payment in lieu thereof; and

     (c)  reimbursement for all reasonable and documented business expenses
          incurred on behalf of the Corporation in carrying out your duties, in
          accordance with the Corporation's policies from time to time, but
          excluding automobile operating costs.

5.   STOCK OPTIONS: Subject to the express approval of the Compensation
     Committee and/or Board of Directors of the Corporation and any regulatory
     bodies having jurisdiction, and subject to you entering into a Stock Option
     Agreement as prescribed by the Corporation, you shall be granted options to
     purchase 100,000 Class A Subordinate Voting shares of the Corporation at an
     exercise price per share which is equal to 100% of the

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                                       -2-

     last sale price of such shares on NASDAQ, on the trading day prior to the
     date of approval by the Corporation's Board or Compensation Committee. Such
     options may be granted in whole or in part and shall be exercisable by you
     only in accordance with the terms and conditions set forth in the Stock
     Option Agreement referred to above. Upon receipt of an executed copy of
     this agreement, we will place this matter before the Compensation Committee
     and/or the Board.

6.   SHARE INVESTMENT: The Corporation requires that you accumulate and maintain
     an investment in the Corporation's Class A Subordinate Voting shares ("MEC
     Shares") as a condition of your employment. As a minimum, you agree to
     accumulate and maintain over each of the three fiscal years commencing
     January 1, 2002, that number of MEC Shares which is calculated by dividing
     (i) one-third (1/3) of your after-tax total cash compensation for each of
     those three fiscal years converted to US dollars at the prevailing rate at
     the time of the calculation (the calculation of after-tax total cash
     compensation shall be determined by deducting Cdn. $150,000 and then giving
     effect to income tax at a deemed 50% tax rate) by (ii) the average closing
     trading price on NASDAQ for MEC Shares over each such year.

     Subsequent to this three year period, you will annually maintain that
     number of MEC Shares which is calculated by dividing (i) one-third (1/3) of
     the after-tax total cash compensation for the three most recent fiscal
     years converted to US dollars at the prevailing rate at the time of the
     calculation (the calculation of after-tax total cash compensation shall be
     determined by deducting Cdn. $150,000 and then giving effect to income tax
     at a deemed 50% tax rate), by (ii) the average trading price on NASDAQ for
     MEC Shares over such three year period.

     Evidence of your ownership of the required number of MEC Shares must be
     produced each year commencing in February, 2003 for the fiscal year ending
     December 31, 2002, in order to obtain payment of any remaining unpaid
     balance of your Annual Bonus for the preceding fiscal year. You may
     accumulate such MEC Shares in advance at your discretion and may use MEC
     Shares which are already owned by you to satisfy such requirement.

7.   CONDITIONS FOR CONTINUED EMPLOYMENT: It is acknowledged by you that as a
     condition of your continued employment you will comply in every respect
     with the MEC Capital Expenditure Guidelines, the MEC Corporate
     Constitution, the MEC Real Estate Approval Guidelines, the MEC Corporate
     Disclosure Policy and the MEC Insider Reporting and Trading Policy, as
     amended from time to time, together with such other policies as the
     Corporation may establish and be in effect from time to time.

8.   TERMINATION: Your employment and this agreement, including all benefits
     provided for under this agreement, will terminate on: (a) the acceptance by
     the Corporation of your voluntary resignation; (b) at the Corporation's
     option, your disability for an aggregate of six (6) months or more in any
     twenty-four (24) month period, subject to any statutory requirement to
     accommodate such disability; (c) your death; or (d) your dismissal for just
     cause or by reason of your breach of the terms of this agreement.

     Otherwise, you or the Corporation may, at any time, terminate your
     employment and this agreement by providing the other party with six (6)
     months prior written notice of intention to terminate. In addition the
     Corporation may elect to terminate your employment immediately by paying
     you a retiring allowance of Cdn. $500,000 (less statutorily required
     deductions) either in a lump sum within thirty (30) days of the day of
     termination or monthly in arrears in six (6) equal instalments commencing
     thirty (30) days after the day of termination. The Corporation may also
     terminate your employment and this agreement by providing you a combination
     of working notice and retiring allowance equivalent to Cdn. $500,000. If
     your employment is terminated pursuant to this paragraph, the Corporation
     shall maintain on your behalf the benefits referred to in paragraph 4(a)
     (except for your Short Term and Long Term Disability benefits) for the
     greater of (i) the period required by applicable statute or (ii) the period
     of six (6) months from the date written notice to terminate was provided.

     In the event that you breach the provisions of paragraph 9, the payment of
     any further instalments of such retiring allowance will immediately cease.

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     On termination of this agreement other than for dismissal for cause or for
     breach under sub-paragraph 8(d), the Corporation will also pay your Annual
     Bonus on a prorated basis.

     The termination provisions set forth above include all severance pay
     entitlement, notice of termination or pay in lieu thereof, salary, bonuses,
     automobile allowances, vacation and/or vacation pay and other remuneration
     and benefits payable or otherwise provided to you in relation to your
     employment by the Corporation (including, specifically, any preceding
     employment by the Corporation, Magna International Inc. ("Magna"), and/or
     their respective affiliated or associated companies as the case may be (all
     of the foregoing are hereinafter collectively referred to as the "Magna
     Group")), and the termination of your employment and this agreement.

9.   OTHER CONDITIONS: You hereby acknowledge as reasonable and agree that you
     shall abide by the following terms and conditions:

     i)   TECHNOLOGY,  KNOW-HOW, INVENTIONS, PATENTS: That all designs, devices,
          improvements,  inventions and ideas made or conceived by you resulting
          from your access to the business of the Magna Group shall be exclusive
          property of the Magna Group and you and your estate  agree to take all
          necessary steps to ensure that such property rights are protected.

     ii)  CONFIDENTIALITY: You shall keep confidential at any time during or
          after your employment, any information (including proprietary or
          confidential information) about the business and affairs of, or
          belonging to, the Corporation or any member of the Magna Group or
          their respective customers or suppliers, including information which,
          though technically not trade secrets, the dissemination or knowledge
          whereof might prove prejudicial to any of them. In addition, if
          requested at any time, you shall immediately execute a separate form
          of Employee Confidentiality Agreement in the Corporation's standard
          form as a condition of your continued employment.

     iii) NON-COMPETITION: During the term of your employment with the
          Corporation and for a period of six (6) months after the date of
          notice of termination of your employment, you shall not, directly or
          indirectly, in any capacity compete with the business of the
          Corporation or of any member of the Magna Group in respect of which
          you have had access to proprietary or confidential information;
          provided however that the foregoing non-competition provisions shall
          not prohibit you from the practise of law during this period as long
          as you do not provide legal services to competitive businesses.

     iv)  NON-SOLICITATION: During the term of your employment with the
          Corporation and for a period of twelve (12) months after the date of
          notice of termination of your employment, you shall not, directly or
          indirectly solicit, attempt to solicit, call upon, or accept the
          business of any firm, person or company who is or was a customer,
          client, or supplier of the Corporation or any member of the Magna
          Group or otherwise solicit, attempt to solicit, or communicate in any
          way with employees of the Corporation or any member of the Magna Group
          for the purpose of having such employees employed or in any way
          engaged by another person, firm, Corporation, or other entity.

10.  TERM: Your employment with the Corporation shall commence effective on June
     6, 2001 (the "Start Date"). Upon termination of this agreement, paragraph 9
     shall continue in full force and effect.

11.  ASSIGNABILITY: This agreement may be assigned by the Corporation in its
     sole discretion to any other member of the Magna Group, including Magna,
     without your prior consent. Upon completion of such assignment, the
     Corporation shall be automatically released from any obligation, liability
     or responsibility under this agreement.

If the terms of employment as set out in this agreement are acceptable to you,
please sign and date three copies in the places indicated and return two fully
signed copies to the attention of Jim McAlpine by October 1, 2001, after which,

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if not so signed and returned, this agreement shall become null and void and of
no effect. Upon execution by you, this agreement (i) replaces any prior written
or oral employment contract or other agreement concerning remuneration between
you and the Corporation or any member of the Magna Group (including any written
employment contract), and (ii) will continue to apply to your employment in a
similar or other capacity with the Corporation or any member of the Magna Group.

Yours very truly,

Jim McAlpine
President and Chief Executive Officer

/hc                               - - - - - - -

I hereby accept the terms and conditions set out above and acknowledge that this
agreement contains all the terms and conditions of my employment with Magna
Entertainment Corp. and that no other terms, conditions or representations other
than those within this letter form part of this agreement and confirm that I am
not subject to any restrictions (contractual or otherwise) arising from my
former employment which would prevent or impair me in carrying out my duties and
functions with the Corporation. Furthermore, I confirm that during the term of
my employment I will not offer to the Corporation any confidential or
proprietary information that I have knowledge of with respect to my former
employers, nor will I provide such information to the Corporation should I be
requested to do so, until such time as such information is no longer
confidential, proprietary or comes into the public domain.

--------------------------                      -----------------------------
Date                                            Edward C. Hannah<Page>

                                                                   EXHIBIT 10.16

                                                                  EXECUTION COPY

                               AMENDMENT NO. 3 TO

                                CREDIT AGREEMENT

     THIS AMENDMENT NO. 3, dated as of November 1, 2001 (this "AMENDMENT") is
entered into between The Santa Anita Companies, Inc., a Delaware corporation
(the "BORROWER"), and Wells Fargo Bank, National Association (the "BANK"), and
amends the Term Loan Credit Agreement dated as of November 15, 1999, as amended
by Amendment No. 1 thereto dated as of January 24, 2000 and Amendment No. 2
thereto dated as of March 1, 2000 (as further amended hereby and as the same may
be further amended, supplemented or otherwise modified from time to time, the
"CREDIT AGREEMENT"), between the Borrower and the Bank. Terms defined in the
Credit Agreement and not otherwise defined herein are used herein as therein
defined.

     WHEREAS, the Borrower has requested that the Bank agree to amend certain
provisions of the Credit Agreement to, among other things, create a revolving
credit facility for the Borrower, and the Bank is willing to make such
amendments on the terms and subject to the conditions set forth herein;

     NOW, THEREFORE, in consideration of the mutual agreements herein contained
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, the parties hereto agree as follows:

     SECTION 1.  AMENDMENT TO SECTION 1.1 OF THE CREDIT AGREEMENT. Section 1.1
of the Credit Agreement is hereby amended by amending and restating in its
entirety the definition of "Tangible Net Worth" set forth therein to read as
follows:

     "'Tangible Net Worth' means, at any date of determination, the
consolidated stockholders' equity of the Borrower and its Subsidiaries, as
determined in accordance with GAAP, as of such date PLUS the outstanding
principal amount of the Borrower's Subordinated Debt at such date MINUS (i) the
aggregate book value of the Intangible Assets of the Borrower and its
Subsidiaries as of such date and (ii) the aggregate amount of all amounts owing
to the Borrower from its Affiliates, including, without limitation, any
Indebtedness or accounts receivable owing from such Affiliates (but excluding
receivables arising in the ordinary course of business that are not more than 90
days past due).".

     SECTION 2.  AMENDMENT TO SECTION 6.3 OF THE CREDIT AGREEMENT. Section 6.3
of the Credit Agreement is hereby amended and restated in its entirety to read
as follows:

     "SECTION 6.3. RESTRICTED PAYMENTS.

          Pay or make, or agree to declare, pay or make, any Restricted Payment,
     except (a) dividends, distributions or payments by any Subsidiary to the
     Borrower, (b) the payment to Parent by Borrower and its Subsidiaries of a
     management fee in an aggregate amount not to exceed 2.5% of the gross
     revenues of Borrower and its Subsidiaries on a consolidated basis for such
     year and (c) payments by the Borrower of principal of

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     Indebtedness owing to Parent, PROVIDED that, in the case of clause (c), (i)
     no Event of Default then exists and (ii) immediately after making any such
     payment, and after giving effect thereto, the Borrower shall be in
     compliance, on a PRO FORMA basis, with Section 6.18; PROVIDED, FURTHER,
     HOWEVER, that at no time shall the outstanding aggregate principal amount
     of the Borrower's Subordinated Debt be less than $30,000,000.".

     SECTION 3.  AMENDMENT TO SECTION 6.18 OF THE CREDIT AGREEMENT. Section 6.18
of the Credit Agreement is hereby amended by deleting therefrom the dollar
amount "$60,000,000" and substituting therefor the dollar amount "$80,000,000."

     SECTION 4.  REPRESENTATIONS AND WARRANTIES. To induce the Bank to enter
into this Amendment, the Borrower represents and warrants to the Bank that (a)
as of the date hereof no Event of Default or Default has occurred and is
continuing and (b) except for representations and warranties which expressly
speak as of a different, specific date, all of the representations and
warranties of the Borrower contained in the Credit Agreement and each other Loan
Document to which the Borrower is a party continue to be true and correct in all
material respects as of the date of execution hereof as though made on such
date.

     SECTION 5.  CONSENT OF LATC AS GUARANTOR. The Los Angeles Turf Club,
Incorporated, a California corporation ("LATC"), hereby acknowledges and
consents to this Amendment, and affirms and acknowledges that the guaranty made
by LATC in favor of the Bank with respect to the obligations of the Borrower
under the Credit Agreement constitutes a continuing guaranty and remains in full
force and effect with respect to all of the Loans at any time outstanding and
LATC remains obligated thereunder without defense, offset or counterclaim of any
kind whatsoever, as if such guaranty were executed and delivered to the Bank on
the date hereof.

     SECTION 6.  CONDITIONS TO EFFECTIVENESS. This Amendment shall become
effective as of November 1, 2001 on the date when the following conditions
precedent have been satisfied (such date, the "EFFECTIVE DATE"):

     (a) The Bank shall have received an executed counterpart of this Amendment
from each of the Borrower and LATC;

     (b) No Event of Default or Default shall have occurred and be continuing on
the Effective Date;

     (c) All of the conditions to the effectiveness of that certain Revolving
Credit Agreement, dated as of the date hereof (the "LATC CREDIT AGREEMENT"), by
and between LATC and the Bank set forth in Section 4.1 of the LATC Credit
Agreement shall have been satisfied; and

     (d) The reasonable costs and expenses of the Bank in connection with the
preparation, negotiation and execution of this Amendment and the other Loan
Documents delivered pursuant hereto shall have been paid.

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     SECTION 7.  REFERENCE TO AND EFFECT ON LOAN DOCUMENTS; RETURN OF TERM LOAN
NOTE.

     (a) Upon the effectiveness of this Amendment, on and after the date hereof,
each reference in the Credit Agreement to "this Agreement", "hereunder",
"hereof" or words of like import, and each reference in the other Loan Documents
to the Credit Agreement, shall mean and be a reference to the Credit Agreement
as amended hereby.

     (b) Except as expressly set forth herein, this Amendment shall not by
implication or otherwise limit, impair, constitute a waiver of, or otherwise
affect the rights and remedies of the Bank or the Borrower under the Credit
Agreement or any other Loan Document, and shall not alter, modify, amend or in
any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other Loan Document, all of
which are ratified and affirmed in all respects and shall continue in full force
and effect.

     (c) Nothing herein shall be deemed to entitle the Borrower to a waiver,
amendment, modification or other change of any of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement or any
other Loan Document in similar or different circumstances.

     (d) This Amendment shall be a Loan Document for all purposes.

     SECTION 8.  BENEFITS OF AMENDMENT. The terms and provisions of this
Amendment shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns to the extent contemplated by the
Credit Agreement.

     SECTION 9.  INTERPRETATION. The Article and Section headings used in this
Amendment are for convenience of reference only and shall not affect the
construction hereof.

     SECTION 10. EXECUTION IN COUNTERPARTS. This Amendment may be executed in
any number of counterparts, each of which counterparts, when so executed and
delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same Amendment. Faxed
signatures of this Amendment shall be binding for all purposes.

     SECTION 11. SEVERABILITY. If any provision of this Amendment shall be held
to be invalid, illegal or unenforceable under applicable law in any
jurisdiction, such provision shall be ineffective only to the extent of such
invalidity, illegality or unenforceability, which shall not affect any other
provisions hereof or the validity, legality and enforceability of such provision
in any other jurisdiction.

     SECTION 12. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN CALIFORNIA.

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     SECTION 13. EXPENSES. The Borrower agrees to pay the reasonable
out-of-pocket expenses of the Bank, including but not limited to the reasonable
fees, charges and disbursements of Gibson, Dunn & Crutcher LLP, special counsel
for the Bank, incurred in connection with the preparation, negotiation,
execution and delivery of the Credit Agreement and this Amendment and any
subsequent waiver, amendment or modification of the Credit Agreement or any
other Loan Document and the security arrangements in connection herewith or
therewith.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered as of the date first set forth above.

                             BORROWER:

                             THE SANTA ANITA COMPANIES, INC.

                             By:
                                ------------------------------------------------
                                Name:
                                Title:

                             By:
                                ------------------------------------------------
                                Name:
                                Title:

                             BANK:

                             WELLS FARGO BANK, NATIONAL ASSOCIATION,

                             By:
                                ------------------------------------------------
                                Name:
                                Title:

                             IN AGREEMENT TO BE BOUND BY SECTION 5 ABOVE ONLY:

                             LATC:

                             LOS ANGELES TURF CLUB, INCORPORATED,
                              as a guarantor

                             By:
                                ------------------------------------------------
                                Name:
                                Title:

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