MAGNA ENTERTAINMENT CORP
EXHIBIT 10.8
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<DESCRIPTION>EXHIBIT 10.8
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;10.8  </B></FONT></P>

<P><FONT SIZE=2><B><U>PRIVATE&nbsp;&amp; CONFIDENTIAL</U>  </B></FONT></P>

<P><FONT SIZE=2><B><U>WITHOUT PREJUDICE</U>  </B></FONT></P>

<P><FONT SIZE=2>October&nbsp;13,
2006 </FONT></P>

<P><FONT SIZE=2>Mr.&nbsp;Don
Amos<BR>
1742&nbsp;The Loft<BR>
Mississauga, Ontario<BR>
L5L&nbsp;3H5 </FONT></P>

<P><FONT SIZE=2>Dear
Don: </FONT></P>

<P><FONT SIZE=2><B><U>Re: Employment with Magna Entertainment Corp. ("MEC")</U>  </B></FONT></P>

<P><FONT SIZE=2>Further
to the October&nbsp;12, 2006 letter from your counsel, this letter confirms the agreed upon terms which your employment with MEC will conclude as&nbsp;follows: </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>You
will retire from your employment with MEC effective October&nbsp;6, 2006.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>MEC
will pay you a retiring allowance of U.S.&nbsp;$709,600 representing one year's base salary and annual bonus. This amount will be subject to statutory deductions and any
outstanding advances, and will be forwarded to you by November&nbsp;3,&nbsp;2006.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>MEC
will maintain your current benefits, except Short and Long Term Disability Benefits, until October&nbsp;6, 2007. You will be eligible to participate in MEC's retiree benefit plan
after that date. Your Short and Long Term Disability Benefits will be maintained until December&nbsp;5, 2006. However, you do have the right within thirty-one (31)&nbsp;days after the
termination of your benefits to exercise your option to convert your group life insurance to an individual policy. If you wish to exercise this option, please contact Mr.&nbsp;Stephen J. O'Neill of
SunLife (416-493-9560).
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>You
will further be paid your MEC vested shares under the 2005 Performance Share Unit Award Agreement between yourself and MEC in accordance with the terms of this agreement. Subject
to the approval of the Compensation Committee of MEC's Board of Directors, the 2006 Performance Share Unit Award Agreement shall be cancelled and the deferred amount of your prorated 2006 Annual Bonus
(U.S.&nbsp;$134,615.38) shall be paid to you in a lump sum, less statutory deductions. MEC executive management will put this matter before the Compensation Committee at its next meeting, currently
scheduled for November&nbsp;1, 2006, with a strong recommendation for approval. Upon approval, payment of the deferred bonus will be made by November&nbsp;17,&nbsp;2006. </FONT></DD></DL>
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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>Your
stock options will be governed by the terms of the stock option agreements you have entered into with MEC and Magna International&nbsp;Inc. respectively. For purposes of
clarity, the terms of these agreements provide that a retiree may exercise his options within three (3)&nbsp;years of his retirement&nbsp;date.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>6.</FONT></DT><DD><FONT SIZE=2>MEC
will pay for your income tax return preparation for the years 2006 and 2007 utilizing the professionals which you have utilized in the&nbsp;past.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>7.</FONT></DT><DD><FONT SIZE=2>MEC
will allow you to retain your company issued laptop computer, Blackberry and fax&nbsp;machine.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>8.</FONT></DT><DD><FONT SIZE=2>MEC
will pay $5,000 to the firm of Grosman, Grosman&nbsp;&amp; Gale&nbsp;LLP as contribution for your legal&nbsp;expenses. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>By
signing this letter and in consideration of the payments described above, you&nbsp;agree: </FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>i)</FONT></DT><DD><FONT SIZE=2>to
release MEC, its subsidiaries, associates and affiliates and their respective shareholders, directors, officers, employees and agents, and their respective successors
and assigns of all such persons and corporations (collectively described in this paragraph as "MEC") of and from all liabilities, damages, actions, causes of action, claims, including any claims under
the Ontario <U>Employment Standards Act</U> for severance pay and termination pay, and demands, costs or expenses including lawyers' fees, agreements, provisions and covenants,
of any nature or any kind now accrued or which may hereafter accrue, arising out of any employment relationship with MEC and the cessation thereof, including without limitation the termination of any
employment contract either written or oral, between you and&nbsp;MEC;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>ii)</FONT></DT><DD><FONT SIZE=2>to
acknowledge that the payments described above satisfy all entitlements you may have under the Ontario <U>Employment Standards Act</U>, including
severance pay, termination pay and vacation&nbsp;pay;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>iii)</FONT></DT><DD><FONT SIZE=2>to
acknowledge that the payments provided for in this letter shall in no way be deemed to be an admission of any liability or obligation on the part of MEC and
constitute total satisfaction of all monies that are owed or may be owing to&nbsp;you;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>iv)</FONT></DT><DD><FONT SIZE=2>that
the release contained in this paragraph shall be binding on your heirs, executors, administrators, personal representatives and&nbsp;assigns;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>v)</FONT></DT><DD><FONT SIZE=2>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&nbsp;MEC; </FONT></DD></DL>
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<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<DT style='margin-bottom:-11pt;'><FONT SIZE=2>vi)</FONT></DT><DD><FONT SIZE=2>to
keep the terms and conditions of this letter confidential between you and&nbsp;MEC;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>vii)</FONT></DT><DD><FONT SIZE=2>at
any time hereafter, not to disclose in any way whatsoever any information concerning the business and affairs of MEC and its customers and suppliers, including its
trade secrets and confidential or proprietary information, to which you have been exposed during the term of your employment with MEC nor to take any action at any time to discredit or damage the
goodwill or reputation of&nbsp;MEC;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>viii)</FONT></DT><DD><FONT SIZE=2>to
agree to co-operate in effecting an orderly transition of all corporate governance matters regarding your retirement, including signing all necessary
documents to effect your resignation from all current offices you hold with MEC and its subsidiaries;&nbsp;and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>ix)</FONT></DT><DD><FONT SIZE=2>to
return any keys, identification cards, company credit cards, business material or other items or documents, if any, belonging to&nbsp;MEC. </FONT></DD></DL>
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<P><FONT SIZE=2>Your
Record of Employment, as well as payment of four (4)&nbsp;weeks' vacation pay, as well as any outstanding wages and prorated bonus, will be forwarded to you by October&nbsp;20, 2006. Please
submit a final expense report for any business expenses to which you may be entitled to reimbursement on or before November&nbsp;20, 2006. I would ask that you contact Andrew Staniusz (telephone
905.726.7078) to arrange a time for you to attend the office to retrieve your personal effects. </FONT></P>

<P><FONT SIZE=2>We
ask that you review the contents of this letter carefully. You may wish to discuss the contents of this letter with your lawyer prior to signing&nbsp;it. </FONT></P>

<P><FONT SIZE=2>If
you are in agreement with the terms of your severance package as set out in this letter, please sign and date four (4)&nbsp;copies of this letter and courier out two (2)&nbsp;copies to Andrew
Staniusz by close of business day today. I would ask, as well, that a copy of this agreement signed by you be faxed to Andrew Staniusz (fax&nbsp;905.726.7295) by close of business day today. Please
be advised that the terms of this letter are open for acceptance until 5:00&nbsp;p.m. on October&nbsp;13, 2006 following which time if not accepted by you, it will be considered to
be&nbsp;revoked. </FONT></P>

<P><FONT SIZE=2>We
thank you for your contribution to MEC and wish you a happy retirement. </FONT></P>

<P><FONT SIZE=2>Yours
very truly, </FONT></P>


<P><FONT SIZE=2>/s/Donald
Mills </FONT></P>

<P><FONT SIZE=2>Dennis
Mills<BR>
Vice Chairman </FONT></P>

<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;I,
Don Amos, have read over, understand and hereby agree to the terms and conditions as set out in this letter regarding the conclusion of my employment with Magna
Entertainment&nbsp;Corp. </FONT></P>

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<TD WIDTH="39%"><HR NOSHADE><FONT SIZE=2> Date</FONT></TD>
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<TD WIDTH="39%"><HR NOSHADE><FONT SIZE=2> Don Amos<BR></FONT>
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<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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