Item 1.01 Entry into Material Definitive Agreements

The following description of a New Loan Agreement (as defined below) does not purport to be complete and is qualified in its entirety by reference to Exhibit 10.1 hereto that is incorporated by reference herein.

New Loan Agreement

On December 1, 2008, the Registrant entered into a new loan agreement (the "New Loan Agreement") with MI Developments Inc. ("MID"), the Registrant's controlling shareholder. The New Loan Agreement provides for financing in an aggregate principal amount of up to $50 million (the "New Loan First Tranche") to fund the Registrant's operations and up to $75 million (the New Loan Second Tranche") to fund the Registrant's Laurel Park video lottery terminals ("VLT") license application and related matters and, if Laurel Park is awarded a VLT license, the construction of a temporary VLTs facility. Additional details regarding the New Loan First Tranche and the New Loan Second Tranche can be found in the Registrant's Form 8-K as filed with the Commission on December 2, 2008, a copy of which is incorporated by reference herein.

Item 8.01 Other Events

Special Committee Process

The terms of the New Loan Agreement were considered in conjunction with the Transaction Agreement by the Special Committee of MEC's board of directors consisting of Jerry D. Campbell (Chairman), Anthony Campbell and William J. Menear. The Transaction Agreement was unanimously approved by MEC's board following a favorable recommendation of the Special Committee. The Special Committee retained independent legal and financial advisors to assist in its deliberations in respect of the Transaction Agreement.