MAGNA ENTERTAINMENT CORP
EXHIBIT 10.1 - 3RD AMENDMENT TO LEASE AGREEMENT
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<DESCRIPTION>EXHIBIT 10.1 - 3RD AMENDMENT TO LEASE AGREEMENT
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<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT 10.1  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="ka1860_third_amendment_to_lease_agreement"> </A>
<A NAME="toc_ka1860_1"> </A>
<BR>    THIRD AMENDMENT TO LEASE AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS THIRD AMENDMENT TO LEASE AGREEMENT (this "<U>Third Amendment</U>") is made as of April&nbsp;12, 2004 by and between BAY MEADOWS MAIN
TRACK INVESTORS,&nbsp;LLC, a Delaware limited liability company ("<U>Landlord</U>"), as the successor-in-interest to Bay Meadows Land
Company,&nbsp;LLC, a Delaware limited liability company, f/k/a PW Acquisitions IV,&nbsp;LLC ("BMLC") and BAY MEADOWS OPERATING COMPANY&nbsp;LLC, a Delaware limited liability company
("<U>Tenant</U>"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1860_recitals"> </A>
<A NAME="toc_ka1860_2"> </A>
<BR></FONT><FONT SIZE=2><B>RECITALS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;BMLC and Tenant entered into that certain Lease dated as of November&nbsp;17, 2000 (the "<U>Lease</U>"), for that certain
parcel of real property (the "Land") together with the horse racing facility and associated improvements (the "Main Track Improvements"), located in San Mateo County, California (as more particularly
described and defined in the Lease, collectively, the "Premises"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;BMLC
and Tenant entered into that certain Amendment to Lease Agreement dated as of December&nbsp;&nbsp;&nbsp;&nbsp;, 2002 (the "First Amendment"), whereby certain terms and
provisions of the Lease were amended or restated as more particularly set forth therein. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;Landlord
and Tenant entered into that certain Second Amendment to Lease Agreement dated as of December&nbsp;31, 2003 (the "Second Amendment") whereby certain terms and
provisions of the Lease were amended or restated as more particularly set forth therein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;Landlord
and Tenant desire further to amend the Lease on the terms provided in this Third Amendment. All initially capitalized terms used but not otherwise defined in
this Amendment shall have the meanings assigned to such terms in the Lease. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the covenants set forth herein, Landlord and Tenant agree to amend the terms and provisions of the Lease, as amended by the First Amendment and the
Second Amendment, as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1860_agreement"> </A>
<A NAME="toc_ka1860_3"> </A>
<BR></FONT><FONT SIZE=2><B>AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance.</U>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12(a) of the Lease is hereby deleted in its entirely and the following
substituted in its place: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Improvements.</U>&nbsp;&nbsp;&nbsp;&nbsp;Throughout
the term of the Lease, Landlord shall, at Landlord's sole cost and expense, maintain in effect
property insurance on the Main Track Improvements in such amounts and coverages as any institutional lender having a lien on the Premises shall require or as Landlord shall otherwise reasonably
determine shall be necessary or desirable. Tenant acknowledges that such insurance may include coverage insuring Landlord's interest in the FF&amp;E as specified in the Second Amendment, but that such
coverage shall not preclude Tenant from also carrying such insurance as Tenant shall deem necessary or appropriate with respect to Tenant's interest in the FF&amp;E. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;<U>Damage
and Destruction</U>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;14(a) of the Lease is hereby deleted in its entirety and the following substituted in its
place: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;<U>Option
to Terminate.</U>&nbsp;&nbsp;&nbsp;&nbsp;If the Main Track Improvements, or any portion thereof, are damaged or destroyed to the extent that racing
operations are not feasible during the remainder of the Term, then either Landlord or Tenant shall have the right to terminate this Lease effective upon the date of such damage or destruction by
giving notice to the other within thirty (30)&nbsp;days of the date of such damage or destruction. All proceeds of any insurance carried by Landlord with respect to the Main Track Improvements or
the FF&amp;E for the benefit of Landlord shall belong to and shall be payable solely to Landlord; provided, however, that in the event that either Landlord or Tenant so elects to terminate the Lease on
account of any such damage or destruction to the Main Track Improvements, Tenant shall be entitled to receive from Landlord (i)&nbsp;an amount equal to the pro&nbsp;rata portion of the rent paid
to Landlord for the period from the effective date of the termination to the Expiration Date of this Lease and (ii)&nbsp;an amount equal to the pro&nbsp;rata portion of the property taxes paid by
Tenant with respect to the Premises for the period from the effective date of the termination to the Expiration Date of this Lease; and provided, further, that all other terms and provisions of the
Lease applicable upon the Expiration Date, including the provisions of Paragraphs&nbsp;3, 4, 5 and 7 of the Second Amendment, shall survive such termination as though the Lease had terminated upon
the Expiration Date in accordance with its terms. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification.</U>&nbsp;&nbsp;&nbsp;&nbsp;Landlord
acknowledges that the indemnification obligation of Tenant under Paragraph&nbsp;11 of the Lease is
intended to apply only to matters that occur during the period of Tenant's occupancy of the Premises. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;<U>General
and Miscellaneous.</U> </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Representations and Warranties</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Tenant represents to Landlord that (i)&nbsp;the person or persons
signatory to this Amendment have full power and authority to bind Tenant, and (ii)&nbsp;the execution and delivery of this Amendment and the performance of Tenant's obligations hereunder do not and
shall not result in the violation of Tenant's organizational documents or any material contract or agreement to which tenant is a party. Landlord represents to Tenant that (i)&nbsp;the person or
persons signatory to this Amendment have full power and authority to bind Landlord, and (ii)&nbsp;the execution and delivery of this Amendment and the performance of Landlord's obligations hereunder
do not and shall not result in the violation of Landlord's organizational documents or any material contract or agreement to which Landlord is a party. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Ratification</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Except as modified herein and by the First Amendment and the Second Amendment, the Lease
remains unchanged and is in full force and effect. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Counterparts</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;This Amendment may be executed in counterparts, each of which shall constitute an original,
but all together shall be deemed to be one agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Severability</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Amendment which a court of competent jurisdiction shall determine to be
invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof and all such other provisions shall remain in full force and effect. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Applicable Law</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;This Amendment shall be governed by and construed in accordance with the laws of the State
of California. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>No Recordation</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Neither this Amendment, nor a short form thereof, shall be recorded. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Reaffirmation</I></FONT><FONT SIZE=2>.&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically amended hereby or in the First Amendment or the Second Amendment, the
Lease is and shall remain in full force and effect; and to the extent that there are any inconsistencies between the provisions of this Amendment and the Lease (as modified by the First Amendment and
the Second Amendment), the provisions hereof shall control. </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, this Amendment is effective as of the date first written above. </FONT></P>

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<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=2><FONT SIZE=2> LANDLORD:</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>TENANT:</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=2><BR><FONT SIZE=2> BAY MEADOWS MAIN TRACK<BR>
INVESTORS,&nbsp;LLC, a Delaware limited<BR>
liability company</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
BAY MEADOWS OPERATING<BR>
COMPANY&nbsp;LLC, a Delaware limited<BR>
liability company</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>/signed/Kristin Gardner</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Magna Entertainment Corp., a<BR>
Delaware corporation</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Kristin Gardner</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>/signed/Gary M. Cohn</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Vice-President</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>Name:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>Gary M. Cohn</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>Title:</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>V.P. and Secretary</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="8%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%"><HR NOSHADE></TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<FONT SIZE=2><A HREF="#toc_ka1860_1">THIRD AMENDMENT TO LEASE AGREEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ka1860_2">RECITALS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ka1860_3">AGREEMENT</A></FONT><BR>
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