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Exhibit 10.1  

 
 

STOCK PURCHASE AGREEMENT    
    

        This Stock Purchase Agreement (the "Agreement") is made as of May 8, 2006 by and among
Gartner, Inc., a corporation organized and existing under the laws of the State of Delaware (the "Company"), Silver Lake Partners, L.P., a
Delaware limited partnership, Silver Lake Investors, L.P., a Delaware limited partnership, and Silver Lake Technology Investors, L.L.C., a Delaware limited liability company (collectively,
"Silver Lake"). 

RECITALS  

        A.    WHEREAS,
as of the date hereof, Silver Lake owns of record 37,740,128 shares of common stock, par value $0.0005 per share, of the Company (the
"Common Stock"), which constitutes approximately 33.1% of the issued and outstanding shares of Common Stock of the Company; 

        B.    WHEREAS,
pursuant to Section 4.2 of that certain Amended and Restated Securityholders Agreement, dated July 12, 2002, among the Company, Silver Lake
Partners, L.P. and certain additional signatories thereto (the "Securityholders Agreement"), Silver Lake has requested that the Company prepare and file
with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-3 (the
"Registration Statement") relating to the registration under the Securities Act of 1933, as amended (the "Act"), of certain shares of Common Stock held
by Silver Lake; 

        C.    WHEREAS,
the Company, Silver Lake and Goldman, Sachs & Co., as representative of the several underwriters, intend to enter into an agreement pursuant to which
Silver Lake will sell an aggregate of 9,500,000 shares of Common Stock (such number of shares, the "Firm Shares") and, at the election of the
underwriters set forth on Schedule I thereto (the "Underwriters"), up to 1,425,000 additional shares of Common Stock (the
"Optional Shares," and together with the Firm Shares, the "Underwritten Shares"), to the Underwriters
(the "Underwriting Agreement"); 

        D.    WHEREAS,
in addition to the Underwritten Shares to be sold to the Underwriters pursuant to the Underwriting Agreement, Silver Lake desires and voluntarily agrees to sell
certain shares of Common Stock held by Silver Lake to the Company, and the Company desires to purchase such shares from Silver Lake; 

        E.    WHEREAS,
Silver Lake is entitled to certain contractual consent rights (in addition to any vote or consent of the board of directors or the stockholders of the Company
required by law or the Company's certificate of incorporation) pursuant to the terms of the Securityholders Agreement; and 

        F.     WHEREAS,
the Company and Silver Lake desire to make certain covenants and agreements with one another pursuant to this Agreement. 

        NOW
THEREFORE, in consideration of the covenants and promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows: 

AGREEMENT  

        1.    Purchase and Sale of the Shares; the Closing.    

        1.1    Purchase and Sale of Common Stock.    Subject to the consummation of the sale of the Firm Shares to the
Underwriters pursuant to and in accordance with the Underwriting Agreement, and the other terms and conditions of this Agreement, and on the basis of the representations, warranties and covenants set
forth herein, Silver Lake agrees to sell to the Company, and the Company agrees to purchase from Silver Lake, 1,000,000 shares of Common Stock (the
"Shares"). The allocation of the Shares to be sold by each Silver Lake entity at the Closing shall be pro rata based on the number of shares of Common
Stock held of record by each of Silver Lake Partners, L.P., Silver Lake Investors, L.P., and Silver Lake Technology Investors, L.L.C., rounded to the nearest whole share, or in such other 

 

proportion
as Silver Lake may determine; provided Silver Lake notifies the Company of such allocation at least one business day prior to the Closing. 

        1.2    Purchase Price.    The "Per Share Purchase Price" for the
Shares shall be equal to the price per share at which the Underwriters purchase the Firm Shares from Silver Lake pursuant to the terms of the Underwriting Agreement. The
"Purchase Price" shall equal the Per Share Purchase Price specified in this Section 1.2 multiplied by the number of Shares purchased by the
Company from Silver Lake pursuant to Section 1.1 of this Agreement. 

        1.3    The Closing.    Subject to the terms and conditions hereof, the purchase and sale of the Shares contemplated by
this Agreement (the "Closing") will take place at the offices of Wilson Sonsini Goodrich & Rosati, Professional Corporation, 1301 Avenue of the
Americas, 40th Floor, New York, New York 10019 at 10:00 a.m. New York City time, on the third business day following the expiration of any prohibitions or restrictions on the
Company's ability to purchase shares of its Common Stock pursuant to Regulation M, as promulgated by the SEC, 17 CFR § 242.100, et.
seq., as may be amended from time to time, or such other day or location as the parties may mutually agree. At the Closing, (i) Silver Lake will deliver to the Company
certificates representing the Shares to be purchased by the Company duly endorsed or accompanied by stock powers duly executed in blank and otherwise in form acceptable for transfer on the books of
the Company (or shall deliver the Shares in such other manner as is reasonably agreed), and (ii) the Company shall deliver the Purchase Price to Silver Lake by wire transfer of immediately
available funds to one or more accounts specified by Silver Lake at least one business day prior to the Closing. 

        2.    Representations and Warranties of Silver Lake.    In order to induce the Company to enter into this Agreement,
Silver Lake hereby represents and warrants to the Company as follows: 

        2.1    Ownership of Shares.    Silver Lake owns of record the number of issued and outstanding shares of Common Stock
set forth in the recitals to this Agreement. The Shares to be sold to the Company by Silver Lake when delivered to the Company shall be free and clear of any liens, claims or encumbrances, including
rights of first refusal and similar claims except for restrictions of applicable state and federal securities laws. There are no restrictions on the transfer of such Shares imposed by any shareholder
or similar agreement or any law, regulation or order, other than applicable state and federal securities laws. 

        2.2    Authorization.    Silver Lake has full right, power and authority to execute, deliver and perform this
Agreement and to sell, assign and deliver the Shares to be sold by it to the Company. This Agreement is the legal, valid and, assuming due execution and delivery by the other parties hereto, binding
obligation of Silver Lake, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by (i) principles of public policy,
(ii) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights generally, and (iii) rules of
law governing the availability of equitable remedies. 

        2.3    No Violation; No Consent.    The execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby by Silver Lake (i) will not constitute a breach or violation of or default under any judgment, decree or order or any agreement or instrument of Silver Lake
or to which Silver Lake is subject, (ii) will not result in the creation or imposition of any lien upon the Shares to be sold by Silver Lake, and (iii) will not require the consent of or
notice to any governmental entity or any party to any contract, agreement or arrangement with Silver Lake. 

        2.4    Brokerage.    There are no claims for brokerage commissions or finder's fees or similar compensation in
connection with the transactions contemplated by this Agreement based on any arrangement or agreement made by or on behalf of Silver Lake. 

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        3.    Representations and Warranties of the Company.    In order to induce Silver Lake to enter into this Agreement,
the Company hereby represents and warrants as follows: 

        3.1    Organization and Corporate Power; Authorization.    The Company is a corporation duly incorporated, validly
existing and in good standing under the laws of the State of Delaware. The Company has the requisite power and authority to execute, deliver and perform this Agreement and to acquire the Shares. As of
the Closing, the Company will have sufficient capital to purchase the Shares hereunder in compliance with Section 160 of the Delaware General Corporation Law. The execution, delivery and
performance of this Agreement and the consummation by the Company of the transactions contemplated hereby have been approved by a majority of the disinterested directors on the Board of Directors of
the Company, having been advised by counsel, and have been otherwise duly authorized by all requisite action on the part of the Company. This Agreement and any other agreements, instruments, or
documents entered into by the Company pursuant to this Agreement have been duly executed and delivered by the Company and are the legal, valid and, assuming due execution by the other parties hereto,
binding obligations of the Company, enforceable against the Company in accordance with its terms except to the extent that the enforceability thereof may be limited by (i) principles of public
policy, (ii) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights generally, and
(iii) rules of law governing the availability of equitable remedies. 

        3.2    No Violation; No Consent.    The execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby by the Company (i) will not constitute a breach or violation of or default under any judgment, decree or order or any agreement or instrument of the Company
or to which the Company is subject, and (ii) will not require the consent of or notice to any governmental entity or any party to any contract, agreement or arrangement with the Company, other
than the consent of Silver Lake provided in Section 8 hereof. 

        3.3    Brokerage.    There are no claims for brokerage commissions or finder's fees or similar compensation in
connection with the transactions contemplated by this Agreement based on any arrangement or agreement made by or on behalf of the Company. 

        4.    Conditions to the Company's Obligations.    The obligations of the Company under Article 1 to purchase
the Shares at the Closing from Silver Lake are subject to the fulfillment as of the Closing of each of the following conditions unless waived by the Company in accordance with Section 9.12: 

        4.1    Representations and Warranties.    The representations and warranties of Silver Lake contained in
Article 2 shall be true and correct on and as of the date of the Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing. 

        4.2    Performance.    Silver Lake shall have performed and complied in all material respects with all agreements,
obligations, and conditions contained in this Agreement that are required to be performed or complied with by it on or before the date of the Closing. 

        4.3    Sale of Firm Shares.    The sale of the Firm Shares by Silver Lake to the Underwriters shall have closed in
accordance with the terms of the Underwriting Agreement. 

        4.4    Expiration of Regulation M Restrictions.    Any prohibitions or restrictions on the Company's ability to
purchase shares of its Common Stock pursuant to Regulation M, as promulgated by the SEC, 17 CFR § 242.100? et.
seq., as may be amended from time to time shall have expired. 

        4.5    Further Assurances.    No governmental authority shall have advised or notified the Company that the
consummation of the transactions contemplated hereunder would constitute a material violation of any applicable laws or regulations, which notification or advice shall not have been withdrawn after
the exhaustion of the Company's good faith efforts to cause such withdrawal. 

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        5.    Conditions to Silver Lake's Obligations.    The obligations of Silver Lake under Article 1 to sell the
Shares at the Closing are subject to the fulfillment as of the Closing of each of the following conditions unless waived by Silver Lake in accordance with Section 9.12: 

        5.1    Representations and Warranties.    The representations and warranties of the Company contained in
Article 3 shall be true and correct as of the date of the Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing. 

        5.2    Performance.    The Company shall have performed and complied in all material respects with all agreements,
obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the date of the Closing. 

        5.3    Sale of Firm Shares.    The sale of the Firm Shares by Silver Lake to the Underwriters shall have closed in
accordance with the terms of the Underwriting Agreement. 

        5.4    Expiration of Regulation M Restrictions.    Any prohibitions or restrictions on the Company's ability to
purchase shares of its Common Stock pursuant to Regulation M, as promulgated by the SEC, 17 CFR § 242.100, et. seq., as may be
amended from time to time shall have expired. 

        5.5    Further Assurances.    No governmental authority shall have advised or notified Silver Lake that the
consummation of the transactions contemplated hereunder would constitute a material violation of any applicable laws or regulations, which notification or advice shall not have been withdrawn after
the exhaustion of Silver Lake's good faith efforts to cause such withdrawal. 

        6.    Covenants.    

        6.1    Closing Conditions.    Silver Lake and the Company shall use their commercially reasonable efforts to ensure
that each of the conditions to Closing is satisfied. 

        7.    Survival of Representations and Warranties; Limitation on Liability.    All representations and warranties
hereunder shall survive the Closing. Notwithstanding the foregoing, in no event shall Silver Lake's liability for breach of the representations, warranties and covenants exceed the Purchase Price to
be paid by the Company to Silver Lake. 

        8.    Silver Lake Consent.    For purposes of Section 2.3 of the Securityholders Agreement and for all other
purposes, Silver Lake hereby provides its consent with respect to the transactions contemplated by this Agreement. 

        9.    Miscellaneous.    

        9.1    Adjustments.    Wherever a particular number is specified herein, including, without limitation, number of
shares or price per share, such number shall be adjusted to reflect any stock dividends, stock-splits, reverse stock-splits, combinations or other reclassifications of stock or any similar
transactions and appropriate adjustments shall be made with respect to the relevant provisions of this Agreement so as to fairly and equitably preserve, as far as practicable, the original rights and
obligations of the Company and Silver Lake under this Agreement. 

        9.2    Governing Law; Jurisdiction.    This Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York. Any legal action or other legal proceeding relating to this Agreement or the enforcement of any provision of this Agreement may be brought or otherwise
commenced in any state or federal court located in the State of New York. Each party hereto agrees to the entry of an order to enforce any resolution, settlement, order or award made pursuant to this
Section 9.2 by the state and federal courts located in the State of New York and in connection therewith hereby waives, and agrees not to assert by way of motion, as a defense, or otherwise,
any claim that such resolution, settlement, order or award is inconsistent with or violative of the laws or public policy of the laws of the State of New York or any other jurisdiction. 

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        9.3    Successors and Assigns.    Except as otherwise expressly provided herein, the provisions hereof shall inure to
the benefit of, and be binding upon, the successor and assigns of the parties hereto. 

        9.4    Entire Agreement; Amendment.    This Agreement constitutes the full and entire understanding and agreement
between the parties with regard to the subjects hereof. Neither this Agreement nor any provision hereof may be amended, changed or waived other than by a written instrument signed by the party against
who enforcement of any such amendment, change or waiver is sought. 

        9.5    Cooperation.    The Company and Silver Lake shall, from and after the date hereof, cooperate in a reasonable
manner to effect the purposes of this Agreement. 

        9.6    Termination.    The Company or Silver Lake may terminate this Agreement if (i) the Company, Silver Lake,
Goldman, Sachs & Co., J.P. Morgan Securities Inc. and Lehman Brothers Inc., as representatives of the several underwriters, have not entered into the Underwriting Agreement by
June 30, 2006, or (ii) the Underwriting Agreement (other than the provisions that survive termination) shall terminate or be terminated prior to payment for and delivery of the Firm
Shares to be sold thereunder. Upon termination of this Agreement pursuant to this Section 9.6, none of the parties hereto shall have any liability hereunder except for breaches of such party's
representations, warranties or covenants occurring prior to the date of such termination. 

        9.7    Notices, etc.    All notices and other communications required or permitted hereunder shall be effective upon
receipt and shall be in writing and may be delivered in person, by telecopy, electronic mail, express delivery service or U.S. mail, in which event it may be mailed by first-class, certified or
registered, postage prepaid, addressed, to the party to be notified, at the respective addresses set forth below, or at such other address which may hereinafter be designated in writing: 

	(a)
	If
to Silver Lake, to: 

Silver
Lake Partners, L.P.

2725 Sand Hill Road, Suite 150

Menlo Park, CA 94025

Attention: Karen King

Phone: 650-233-8158

Fax: 650-233-8125 

with
a copy to: 

Simpson
Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Attention: Richard Fenyes, Esq.

Phone: 212-455-2812

Fax: 212-455-2502 

	(b)
	If
to the Company, to: 

Gartner, Inc.

P.O. Box 10212

56 Top Gallant Road

Stamford, CT 06902-7747

Attention: General Counsel

Phone: 203-316-6311

Fax: 203-316-6245 

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with
a copy to: 

Wilson
Sonsini Goodrich & Rosati

1301 Avenue of the Americas, 40th Floor

New York, NY 10019-6022

Attention: Robert D. Sanchez, Esq.

Fax No. 212-999-5899 

        9.8    Severability.    If any provision of this Agreement shall be judicially determined to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        9.9    Titles and Subtitles.    The titles of the Articles and Sections of this Agreement are for convenience of
reference only and in no way define, limit, extend, or describe the scope of this Agreement or the intent of any of its provisions. 

        9.10    Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument. 

        9.11    Delays or Omissions.    It is agreed that no delay or omission to exercise any right, power or remedy accruing
to any party upon any breach or default of any other party under this Agreement shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or
any acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore
or thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character of any breach or default under this Agreement, or any waiver of any provisions or
conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing, and that all remedies, either under this Agreement, by law or otherwise,
shall be cumulative and not alternative. 

        9.12    Consents.    Any permission, consent, or approval of any kind or character under this Agreement shall be in
writing and shall be effective only to the extent specifically set forth in such writing. 

        9.13    SPECIFIC PERFORMANCE.    THE PARTIES HERETO AGREE THAT IRREPARABLE DAMAGE WOULD OCCUR IN THE EVENT THAT ANY OF
THE PROVISIONS OF THIS AGREEMENT WERE NOT PERFORMED IN ACCORDANCE WITH ITS SPECIFIC INTENT OR WERE OTHERWISE BREACHED. IT IS ACCORDINGLY AGREED THAT THE PARTIES SHALL BE ENTITLED TO AN INJUNCTION OR
INJUNCTIONS, WITHOUT BOND, TO PREVENT OR CURE BREACHES OF THE PROVISIONS OF THIS AGREEMENT AND TO ENFORCE SPECIFICALLY THE TERMS AND PROVISIONS HEREOF, THIS BEING IN ADDITION TO ANY OTHER REMEDY TO
WHICH THEY MAY BE ENTITLED BY LAW OR EQUITY, AND ANY PARTY SUED FOR BREACH OF THIS AGREEMENT EXPRESSLY WAIVES ANY DEFENSE THAT A REMEDY IN DAMAGES WOULD BE ADEQUATE. 

        9.14    Payment of Fees and Expenses.    Each party shall be responsible for paying its own fees, costs and expenses
in connection with this Agreement and the transactions herein contemplated. 

        9.15    Construction of Agreement.    No provision of this Agreement shall be construed against either party as the
drafter thereof. 

        9.16    Section References.    Unless otherwise stated, any reference contained herein to a Section or subsection
refers to the provisions of this Agreement. 

        9.17    Variations of Pronouns.    All pronouns and all variations thereof shall be deemed to refer to the masculine,
feminine, or neuter, singular or plural, as the context in which they are used may require. 

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        IN
WITNESS WHEREOF, the parties have caused this Stock Purchase Agreement to be duly executed and delivered by their proper and duly authorized officers as of the day and year first
written above. 

	 	 	GARTNER, INC.
	

 	
 	

By:	
 	

/s/  CHRISTOPHER LAFOND      

	 	 	 	 	Name:	 	Christopher Lafond
	 	 	 	 	Title:	 	Executive Vice President and Chief Financial Officer
	

 	
 	
SILVER LAKE
	

 	
 	

SILVER LAKE PARTNERS, L.P.
	

 	
 	

By:	
 	

Silver Lake Technology Associates, L.L.C.,

its General Partner
	

 	
 	

By:	
 	

/s/  MICHAEL BINGLE      

	 	 	 	 	Name:	 	Michael Bingle
	 	 	 	 	Title:	 	Managing Director
	

 	
 	

SILVER LAKE INVESTORS, L.P.
	

 	
 	

By:	
 	

Silver Lake Technology Associates, L.L.C.,

its General Partner
	

 	
 	

By:	
 	

/s/  MICHAEL BINGLE      

	 	 	 	 	Name:	 	Michael Bingle
	 	 	 	 	Title:	 	Managing Director
	

 	
 	

SILVER LAKE TECHNOLOGY INVESTORS, L.L.C.
	

 	
 	

By:	
 	

Silver Lake Technology Management, L.L.C.,

its Manager
	

 	
 	

By:	
 	

/s/  MICHAEL BINGLE      

	 	 	 	 	Name:	 	Michael Bingle
	 	 	 	 	Title:	 	Managing Director

[Signature
Page to Stock Purchase Agreement] 

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Exhibit 10.3    
    

March 31,
2006 

Mr. W.
Thomas Hodgson

48 Stonecliffe Crescent

Aurora, Ontario

L4G 7Z6 

Dear
Tom: 

Reference
is made to our recent conversations concerning your departure as President and Chief Executive Officer and as a director of Magna Entertainment Corp. ("MEC") and our agreements, which are as
follows: 

	1.
	Effective
March 31, 2006 (the "Officer Resignation Date"), you will resign as President and Chief Executive Officer and as a director of MEC and as an officer and/or
director of all subsidiaries of MEC or its affiliates for which you serve in such capacities.

	2.
	Following
the Officer Resignation Date, you will remain as an employee of MEC for a two-month transition period. Effective May 31, 2006 (the "Employee
Resignation Date"), you will resign as an employee of MEC. You agree that on the Employee Resignation Date you shall execute and deliver the release in the form of Schedule
A attached hereto.

	3.
	You
shall be entitled to receive your Base Salary of US$300,000 and Guaranteed Bonus of US$200,000 annually up to and including the Employee Resignation Date. You acknowledge that you
have received such Guaranteed Bonus up to and including December 31, 2005 so that you are only entitled to such Guaranteed Bonus for the period from January 1, 2006 to March 31,
2006 (the "2006 First Quarter Bonus") and for the period from April 1, 2006 to May 31, 2006 (the "2006 Second Quarter Partial Bonus"). Notwithstanding the terms of your
employment agreement dated March 22, 2005 (your "Employment Agreement"), you shall receive prompt payment of the full amount of the 2006 First Quarter Bonus and the 2006 Second Quarter Partial
Bonus, respectively, in cash from MEC at the same time that senior executives of MEC are paid their bonuses for the first quarter of 2006 and second quarter of 2006, respectively. 

 

	4.
	The
amount of 13,086 shares (your "Incentive Stock") of MEC Class A Subordinate Voting Stock ("Class A Stock"), being the amount of your Guaranteed Bonus that is
payable to you in Class A Stock during 2005, shall vest and be released to you on December 1, 2006.

	5.
	Notwithstanding
the terms of your incentive stock option agreements with MEC dated March 7, 2005 and March 21, 2005, your options to purchase 300,000 shares of
Class A Stock (your "Options") shall remain in full force and effect, shall vest on their current schedule, and shall be exercisable at any time up to and including the Expiration Date
(as defined in your stock option agreements) and without application of the terms of sections 2.2(b) through (f) of those agreements. However, in the event that you
become employed by, a director of, or a consultant to, any entity that competes, directly or indirectly, with MEC or any of its subsidiaries prior to the vesting of any Options, such
non-vested Options will be cancelled (all vested Options will be unaffected and remain in-force as set-out above).

	6.
	You
agree that you shall not sell, transfer or otherwise dispose of or trade any securities of MEC (including, without limitation, your Incentive Stock and your Options) before
December 1, 2006. Without limiting the foregoing, you acknowledge that it is your responsibility to be familiar with and comply with your obligations under insider trading laws and similar
securities laws.

	7.
	Upon
you having delivered on the Employee Resignation Date the executed release as provided in paragraph 2 above, MEC shall promptly pay to you a retiring allowance of
US$500,000 as full and final settlement of all amounts owing to you by MEC or its affiliates as a result of your employment with MEC and its subsidiaries, including all amounts owing to you under your
employment agreement with MEC (subject only to paragraph 8 below), which amount shall be paid to you in a lump sum (net of all usual deductions).

	8.
	As
soon as reasonably practicable following the Employee Resignation Date, you shall submit a final expense report or reports for all outstanding expenses which you have incurred on
behalf of MEC or any of its subsidiaries in accordance with typical practice and which have not previously been reimbursed. All such expenses shall be reimbursed to you by MEC promptly following
receipt of such expense report(s). In addition, promptly following execution of this agreement and submission of supporting invoices, MEC shall pay to you the amount of up to CDN$10,000 as
partial reimbursement for your legal expenses in connection with your departure from MEC.

	9.
	MEC
shall continue to maintain on your behalf your current benefits (excluding life and disability coverage) for a period of twelve (12) months commencing on the Employee
Resignation Date. Your current life and disability coverage shall be maintained for a period of not less than the period required by applicable statute. 

2

 

	10.
	MEC's
obligations to indemnify you pursuant to its by-laws shall continue in effect in respect of all your activities as a director, officer and employee of MEC and its
subsidiaries, and MEC shall continue to cover you under its directors' and officers' insurance policies in respect of your service as an officer or director of MEC and its subsidiaries (including,
without limitation, with respect to any claims made against you or losses or expenses incurred by you in connection with the litigation brought by Greenlight Capital, Inc. against MI
Developments Inc. ("MID")). For greater certainty, MEC acknowledges that you shall be entitled to reimbursement for all reasonable counsel fees and disbursements in connection with your
representation by counsel of your choice (subject to approval by MEC, acting reasonably) as a witness, party or potential witness or party in any shareholder litigation involving MEC or MID.

	11.
	You
acknowledge and agree that you are still subject to, and shall abide by, your obligations as set forth in paragraph 8 of your Employment Agreement.

	12.
	You
agree to promptly execute and provide to MEC all documents reasonably requested by MEC and its affiliates to evidence your resignation as a director and/or officer of MEC and its
affiliates.

	13.
	Except
as already agreed, and except as required by any applicable law, regulation or stock exchange rule, neither you nor MEC shall make any public announcement or issue any press
release with respect to your resignation as a director and officer of, and your departure from, MEC without the prior written consent of the other. Prior to either party making any public announcement
or press release, such party shall provide the other party with a reasonable opportunity to comment on said public announcement or press release.

	14.
	Upon
you having delivered on the Employee Resignation Date the executed release as provided in paragraph 2 above, MEC shall enter into a consulting agreement with you
substantially in the form attached hereto as Schedule B. You shall be entitled to retain the laptop computer and blackberry communications device that you are presently
using for so long as you are acting as a consultant to MEC, although you shall arrange and pay for your own service provider contract for your blackberry communications device.

	15.
	You
hereby acknowledge and agree that this letter agreement, including without limitation Schedule A, supersedes all previous agreements between you and
MEC and its affiliates, whether oral or written, including without limitation your employment agreement. 

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If
you are in agreement with the foregoing, would you kindly execute a duplicate copy of this letter where indicated and return the same to me. 

Yours
truly, 

	
 /s/  FRANK STRONACH      
 Frank Stronach

Chairman	
 	

 
	

Agreed:	 	 
	

Date: March 31, 2006	 	 
	 	 	/s/  W. THOMAS HODGSON      
 W. Thomas Hodgson

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Schedule A
  Release and Resignation  

To:
Magna Entertainment Corp. and its affiliates 

Having
resigned as an officer and/or director of Magna Entertainment Corp. and its affiliates (collectively, "MEC"), in each case, effective March 31, 2006, I hereby resign as an employee of
Magna Entertainment Corp. effective May 31, 2006. 

I
hereby agree: 

	(i)
	to,
and do hereby, release MEC, its officers, directors and employees, its associates and affiliates (including, without limitation, MI Developments Inc.) and its
shareholders, directors, officers, employees and agents and the respective successors and assigns of all such persons and corporations (collectively described as the "Corporation") of and from all
liabilities, damages, actions, causes of action, claims (including, without limitation, any claim under the Ontario Employment Standards Act) and demands, costs or expenses (including, without
limitation, lawyers' fees), agreements, deferred compensation, provisions and covenants, of any nature or kind now accrued, arising out of any employment relationship with the Corporation and the
cessation thereof;

	(ii)
	that
the release contained herein shall be binding on my heirs, executors, administrators, personal representatives and assigns;

	(iii)
	not
to make any claim or to commence or maintain any action or proceeding against any other person or corporation who might claim contribution, indemnity or relief
over from the Corporation with respect to the subject matter of this release, excepting only any rights enforced in respect of directors' and officers' liability under policies of insurance for such;

	(iv)
	at
any time hereafter, except with the consent of MEC or as required by law, not to disclose any confidential information concerning the business and affairs of the
Corporation and its customers and suppliers, including its trade secrets and confidential or proprietary information to which I have been exposed during the term of my employment with MEC; and

	(v)
	nothing
in this release affects my rights:

	(a)
	under
my letter agreement with MEC dated March 31, 2006, relating to my departure from MEC;

	(b)
	under
the stock option agreements dated March 7, 2005 and March 21, 2005 and the Performance Share Unit Award Agreement dated as of April 1, 2005; 

5

 

	(c)
	to
be indemnified and held harmless by MEC and to the benefit of coverage under any directors' and officers' insurance policy in respect of any claim that may be made against me
respecting any act or thing arising from my having served as a director or officer of MEC and its affiliates; and

	(d)
	as
a shareholder of MEC. 

DATED
this 31st day of May, 2006. 

	
 	
 	

 W. Thomas Hodgson

6

 
 
 

Schedule B
  Form of Consulting Agreement  

[Letterhead
of Magna Entertainment Corp.] 

May 31,
2006 

W.
Thomas Hodgson

48 Stonecliffe Crescent

Aurora, Ontario

L4G 7Z6 

Dear
Tom: 

 
  Consulting Agreement with Magna Entertainment Corp. ("MEC")  
    

Further
to our discussions, MEC wishes to retain you (the "Consultant") to provide consulting services to assist MEC and certain of its affiliates with various projects from time to time as
determined by MEC, including without limitation projects relating to MEC's recapitalization plan (collectively, the "Projects"). The general terms and conditions of the consulting arrangement would be
as follows: 

	1.
	Consultant.    The
Consultant shall make himself reasonably available to MEC to carry out his obligations under this agreement. The Consultant
acknowledges that due to the nature of the Projects, the Consultant may be expected to engage in extensive business travel.

	2.
	Fees.    MEC
shall pay the Consultant at the rate of US$2,500 per day or part thereof (it being understood that the number of hours per
month and per week may vary from month-to-month and from week-to-week as determined by MEC). Invoices should be rendered on a monthly basis in arrears
and include GST and provincial taxes where applicable.

	3.
	Expenses.    MEC
shall reimburse the Consultant for all reasonable business expenses actually and properly incurred in carrying out the Projects
to the extent specifically required by MEC under this agreement and in accordance with MEC's expense reimbursement guidelines. If the Consultant travels outside of Canada on MEC business, it shall be
the Consultant's responsibility to maintain adequate medical coverage. The Consultant shall supply original vouchers and receipts to support all expenses, shall itemize such expenses on a standard MEC
expense report, and shall obtain advance approval from MEC's Project Coordinator for any individual expense in excess of CDN$5,000. The Consultant shall be based in his own off-site office
and shall be responsible for the expense of all office costs, support services and materials in carrying out his obligations under this agreement.

	4.
	Coordination
of Services.    The Consultant shall carry out those services needed to complete the Project with the assistance and under the
direction of the Project Coordinator or his designees. The Consultant shall provide those written reports required by the Project Coordinator from time to time and shall interact with MEC management
as directed by the Project Coordinator from time to time. The Chairman of MEC, or his designee, shall be the Project Coordinator. 

7

 
	5.
	Term.    This
agreement shall commence as of June 1, 2006 and may be terminated (a) by MEC for any reason on thirty
(30) days prior written notice or (b) by the Consultant for any reason on thirty (30) days prior written notice. In addition, this agreement may be immediately terminated by MEC
in the event Consultant is in material breach of the provisions of this agreement.

	6.
	Independent
Contractor.    The Consultant is an independent contractor and in no way shall the Consultant be considered an employee, agent or
joint venturer of MEC. Subject to coordination with the persons designated in paragraph 4, the Consultant shall determine how, where and when he shall carry out his consulting services and
other obligations under this agreement. The Consultant shall have no authority to represent or bind MEC in any way and agrees that he shall not hold himself out as having authority to act for MEC or
its affiliates.

	7.
	Licenses
and Taxes, etc.    As an independent contractor the Consultant shall obtain all necessary licenses for the operation of his consulting
business, including a GST registration number. The Consultant shall also be responsible for all applicable remittances including, but not limited to, federal and provincial taxes on his business
income. MEC shall not be responsible for any of the foregoing.

	8.
	Compliance
with Privacy Laws.    The Consultant agrees to comply with the Canadian Personal Information and Protection of
Electronic Documents Act ("PIPEDA") and such other Legislation and Regulations pertaining to privacy of personal information ("Privacy Laws") with respect to the receipt and
use of personal information relating to MEC's customers and employees. The Consultant further acknowledges that Privacy Law requirements include the need to:

	(a)
	properly
secure such information;

	(b)
	use
such information only for the purpose it was made available;

	(c)
	co-operate
with access requests; and

	(d)
	either
return or destroy such information once it is no longer needed for the Project.

	9.
	Competition.    During
the term of this agreement and for six (6) months following its expiry or termination, you shall not, directly or
indirectly, in any capacity compete with the business of MEC or any of its affiliates in respect of which you have had access to proprietary or confidential information.

	10.
	Confidentiality.    The
Consultant will treat as confidential and will not disclose directly or indirectly at any time during or subsequent to
the conclusion of the Projects any secret or confidential business, financial or other information belonging or relating to MEC or its affiliates or their customers and suppliers. The Consultant will
execute a separate Confidentiality Agreement if requested by MEC.

	11.
	Indemnity.    The
Consultant shall indemnify MEC for any costs, expenses or damages arising from the Consultant's failure to comply in all
material respects with the provisions of paragraphs 6, 7, 8, 9 and 10 of this agreement. 

8

 
	12.
	Governing
Law.    This agreement shall be governed by the laws of the Province of Ontario including all federal laws applicable therein. 

If
the terms of the consulting agreement set out in this letter are acceptable to the Consultant, please sign and date three (3) copies of this letter and return two copies to the attention of
MEC's Corporate Secretary. 

Yours
very truly, 

MAGNA ENTERTAINMENT CORP.

	

 Name:

Title:	 	 
	

 Name:

Title:	 	 

The
undersigned agrees to the terms and conditions contained in this letter. 

	

 Date	 	

 W. Thomas Hodgson

9

QuickLinks

Exhibit 10.3

Schedule A Release and Resignation

Schedule B Form of Consulting Agreement

Consulting Agreement with Magna Entertainment Corp. ("MEC")

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