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Exhibit 10.1  

 
 

FIRST AMENDING AGREEMENT    
    

        THIS AGREEMENT is made as of July 26, 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;

	B.
	The
Borrower, the Lender and the Agent have agreed to amend the Loan Agreement in order to increase the Lender's Commitment on the terms and conditions set out herein and have agreed
to certain other additional amendments to the Loan Agreement set out herein; and

	C.
	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 First Amending Agreement have the meaning given to such terms in the Loan Agreement. 

2.     Loan Agreement Amendments  

        The parties hereto agree to amend the Loan Agreement as follows: 

	(a)
	by
deleting the amount of "$50,000,000" set forth in section 1.1.6 and opposite the Lender's
name in Schedule 1.1.65 thereof and replacing the same with "$64,000,000";

	(b)
	by
deleting the reference to "July 31, 2006" in Section 1.1.120 and replacing it with
a reference to "November 5, 2006" such that November 5, 2006 (the "BMO
Maturity Date") will be the "Termination Date" for the purposes of the Loan Agreement; and

	(c)
	by
adding the following to section 2.3.2 after the words "Designated Assets": 

"other
than $39 million of sale proceeds of the Meadows Properties which shall be paid to the Lender as a repayment hereunder immediately after the first $100 million of such sale
proceeds has been paid to MID Islandi sf, such $39 million being an aggregate figure that includes the $12 million repayment provided for in the Consent and Waiver dated
November 15, 2005 between the Lender and the Borrower". 

3.     Conditions Precedent to Loan Agreement Amendments  

        The obligation of the Lender to agree to the amendment to increase the Lender's Commitment on or after the date hereof is subject to fulfillment of the following
conditions precedent on the date hereof: 

	(a)
	the
Borrower, MID Islandi sf and MI Developments Inc. agree to amend the Subordinated MID Bridge Facility to extend the maturity date thereof to December 5, 2006;

	(b)
	the
Borrower, MID Islandi sf and MI Developments Inc. agree to amend the subordination agreement dated July 22, 2005 amongst the Agent, the Lender, MID Islandi sf and MI
Developments Inc. to reflect the amendments to the Loan Agreement contemplated by section 2(c) above; 

2

 

	(c)
	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;

	(d)
	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;

	(e)
	no
Material Adverse Change since December 31, 2005 shall have occurred;

	(f)
	payment
in full of all reasonable invoiced fees, including for greater certainty, a commitment fee of 0.375% 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;

	(g)
	such
other documentation or information as the Lender shall have reasonably requested; and

	(h)
	the
Lender shall have received evidence of committed construction financing for the reconstruction of and addition of Slots Facilities at Gulfstream Park in the additional amount
of $25,750,000. 

4.     Renewal Fee  

        To the extent the Credit Facility is extended beyond the BMO Maturity Date, the Borrower shall pay a commitment fee of 0.375% of the Aggregate Commitment and all
reimbursable out-of-pocket expenses payable by the Borrower on or prior to such date including payment of all reasonable fees, disbursements and
out-of-pocket expenses of counsel to the Agent and the Lenders. 

5.     Conditions Precedent to Future Advances  

        The obligation of the Lender to advance more than $50,000,000 under the Credit Facility (a "Future Advance") on or after the date hereof is subject to
fulfillment of the following conditions precedent: 

	(a)
	the
Lender shall have received duly executed and delivered original copies of a guarantee in a form satisfactory to the Lender, acting reasonably, from MEC Maryland
Investments, Inc. (the "New Guarantor") as security for the Borrower's obligations under the Loan Agreement (the "New Security");

	(b)
	the
Lender shall have received evidence of registration of the New Security in such jurisdictions as the Lender may require together with search reports in the name of the
Borrower and the New Guarantor as may be required by the Lender; and 

3

 

	(c)
	the
Lender shall have received an opinion of Borrower's counsel in respect of the New Security dated the date of any such Future Advance in form and substance satisfactory to
the Agent and Lenders, acting reasonably;

	(d)
	the
Lender shall have received the following in form and substance satisfactory to the Lenders, acting reasonably:

	i.
	an
Officer's Certificate dated the date of any such Future Advance certifying that attached thereto are true and correct copies of the following documents, and that such
documents are in full force and effect, unamended;

	ii.
	the
articles or constating documents of each of the New Guarantor and AmTote International, Inc. ("AmTote");

	iii.
	the
by-laws or other organizational documents of each of the New Guarantor and AmTote;

	iv.
	a
certificate of incumbency including sample signatures of officers and directors of the New Guarantor; and

	v.
	the
resolutions or other documentation evidencing that all necessary action, corporate or otherwise, has been taken by each of the New Guarantor to authorize the
execution, delivery and performance of the New Security (as defined below) to which it is a party; and

	(e)
	a
certificate of status, certificate of good standing or similar certificate with respect to the jurisdiction of incorporation of each of the New Guarantor and AmTote. 

6.     Pledge of Shares  

        New Guarantor shall, upon the acquisition of all of the shares of AmTote pursuant to the terms of a stockholders agreement dated as of August 21,
2003, pledge all shares of AmTote that New Guarantor holds as additional security, and such shares shall thereafter be deemed to be included in the definition of New Security. 

7.     Loan Agreement  

        Save as expressly amended by this First 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 First Amending Agreement constitutes a Loan Document for the purposes of the Loan Agreement. 

4

 

8.     Guarantee and Security  

        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. The Lender acknowledges that, concurrent with any Future
Advance, MID Islandi sf will be granted a second ranking charge on the shares of AmTote on terms and conditions substantially similar to the New Security. 

9.     Counterparts  

        This First 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. 

        IN WITNESS WHEREOF this First Amending Agreement has been executed by the parties hereto as of the date first written above. 

	 	 	MAGNA ENTERTAINMENT CORP., as Borrower
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

5

 

	 	 	BAY MEADOWS OPERATING COMPANY LLC, as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

	 

	 	 	PACIFIC RACING ASSOCIATION, as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

6

 

	 	 	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:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

	 

	 	 	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:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

7

 

	 	 	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:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

	 

	 	 	BANK OF MONTREAL, acting through its Chicago lending office, as Lender
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

8

 

	 	 	BANK OF MONTREAL, acting through its Chicago lending office, as Agent
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:
	
 	
 	

By:	

                   /s/ Signed
 Name:

Title:

9

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Exhibit 10.2  

 
 

SECOND AMENDING AGREEMENT    
    

        THIS AGREEMENT is made as of November 6th, 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;

	B.
	The
Borrower, the Lender and the Agent have agreed to further amend the Loan Agreement by extending the Maturity Date on the terms and conditions set out herein; and

	C.
	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 Second 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 by deleting the reference to "November 6,
2006" in Section 1.1.120 and replacing it with a reference to "November 28,
2006" such that November 28, 2006 will be the "Termination Date" for the purposes of the Loan Agreement. 

3.     Conditions Precedent to Loan Agreement Amendments  

        The obligation of the Lender to agree to the amendment herein 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 August 1st, 2006 shall have occurred;

	(d)
	payment
in full of all reasonable invoiced fees, including for greater certainty, a Renewal Fee of 0.375% 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. 

4.     Loan Agreement  

        Save as expressly amended by this Second 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 Second Amending Agreement constitutes a Loan Document for the purposes of the Loan Agreement. 

2

 

5.     Guarantee and Security  

        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. The Lender acknowledges that, concurrent with any Future
Advance, MID Islandi sf will be granted a second ranking charge on the shares of AmTote on terms and conditions substantially similar to the New Security. 

6.     Counterparts  

        This Second 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. 

        IN WITNESS WHEREOF this Second Amending Agreement has been executed by the parties hereto as of the date first written above. 

	 	 	MAGNA ENTERTAINMENT CORP., as Borrower
	
 	
 	

By:	

          /s/ Blake S. Tohana
 Name: Blake S. Tohana

Title: Executive Vice-President and CFO
	
 	
 	

By:	

          /s/ William G. Ford
 Name: William G. Ford

Title: Secretary

3

 

	 	 	BAY MEADOWS OPERATING COMPANY LLC, as Guarantor, but only with respect to Article 10 of the Loan Agreement and all other provisions related thereto
	
 	
 	

By:	

          /s/ Blake S. Tohana
 Name: Blake S. Tohana

Title: Executive Vice-President and CFO
	
 	
 	

By:	

          /s/ William G. Ford
 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:	

          /s/ Blake S. Tohana
 Name: Blake S. Tohana

Title: Executive Vice-President and CFO
	
 	
 	

By:	

          /s/ William G. Ford
 Name: William G. Ford

Title: Secretary

4

 

	 	 	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:	

          /s/ Blake S. Tohana
 Name: Blake S. Tohana

Title: Executive Vice-President and CFO
	
 	
 	

By:	

          /s/ William G. Ford
 Name: William G. Ford

Title: Secretary

	 

	 	 	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:	

          /s/ Blake S. Tohana
 Name: Blake S. Tohana

Title: Executive Vice-President and CFO
	
 	
 	

By:	

          /s/ William G. Ford
 Name: William G. Ford

Title: Secretary

5

 

	 	 	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:	

          /s/ Blake S. Tohana
 Name: Blake S. Tohana

Title: Executive Vice-President and CFO
	
 	
 	

By:	

          /s/ William G. Ford
 Name: William G. Ford

Title: Secretary

6

 

	 	 	BANK OF MONTREAL, acting through its Chicago lending office, as Lender
	
 	
 	

By:	

          /s/ Signed
 Name:

Title:

	 

	 	 	BANK OF MONTREAL, acting through its Chicago lending office, as Agent
	
 	
 	

By:	

          /s/ Signed
 Name:

Title:

7

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SECOND AMENDING AGREEMENT

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