THI S   A M END MENT   is made effective the   30 th   da y  o f Septembe r ,   201 3 .   BET W EEN:

CENTUR Y   C A SINOS EUROPE GmbH

(registered in A lberta as an extra - provincial   corporation   under   the   assumed name, Century   Casinos Europe LLC

 

-   an d –

 

UNITED HORSEMEN OF A LBERTA   INC.

(the "Borrower")

 

RECIT A LS:

 

A . Century   Casinos   Europe   LLC   and   Borrower   entered   into   a   C redit   A greement   made effective October 25, 2012;

 

B .         Borrower   has   advise d   th e   Lender   that   costs   for   the   RE C   Project   hav e   increased   and

Borrower has requested   additional financial assistance from the Lender;

 

C .         Century   Resorts   Albert a   Inc.,   an   affiliate   o f   Centur y   Casinos   Europe   LL C ,   i s   i n   the process   o f   establishing a   lin e  o f   credit   wit h   BMO   Bank   o f   Montrea l   so   as   to   enabl e   Century Resorts Alberta Inc.   to fund advances under Loan B, as defined herein;

 

D .         The   parties   no w   wis h   t o   amend   certain   terms   and   provision s   contained   i n   the   Credit

Agreement.

 

IN   CONSIDERATION   O F   THE   FOREGOING   an d   o f   t he   mutual   covenants   set   ou t   below ,   the parties   agree   as   follows:

 

A R TICLE 1

DEFINITIONS

 

1.1 Capitalized   terms   no t   otherwis e   defined   i n   this   Agreement   hav e   the   meanings   ascribed to them in the Credit Agreemen t .

 

A R TICLE 2

A M ENDMENTS TO CREDIT A GREEMENT

 

2.1       The   following definitions are added to Article 1.1 of the Credit Agreement:

 

" A mendment"   mean s   th e amendment agreemen t entered int o   betwee n   th e Lender   and Borrower dated November 29 ,     2013,   together   wit h     all   Schedules   attached thereto and forming part thereof.

 

“ BM O ”   means   BMO   Bank   of   Montreal;

 

“ CCE L ” means Century Casinos Europe LLC; “ CR A I ” means Century Resorts Alberta Inc.;

 

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“ Lender ”   means   CCE L   w h il e   it   remains   the   sole   lender   under   the   Credit Agreement,   as amended,   an d   shal l   mea n   both   CCE L and   CRAI ,   upon   CRAI’ s   participation   as   provided for in Article 1 7 ;

 

2.2 The   followin g     de f initions   i n     Articl e     1.1   o f     th e     Credit   Agreemen t     ar e     amende d     and replaced with the following:

 

“Converted   Equit y ”   means   the   Clas s   “A ”   Common   Shares   i n   th e   capita l   stock   o f   the Borrowe r   issued to   the   Lender   upon the   Lender’s   exercise o f   its   optio n to   convert Indebtedness, in accordance with this Credit Agreemen t ;

 

"Interest"   or  “interest”   means   (a)   i n     respec t     to   Loan   A ,     subjec t     t o     availability,   a   va r iable rate of interest, determined monthly as at or about 11:00 a.m. (London, England time)   on   the   last   Busines s  Da y  o f     each   calendar   month,   equa l  to   th e  one   month Canadia n   dollar   British   Bankers’   Association London   Interbank Offere d   Rate   (BBA LIBOR) quoted   to   the   Lende r   fr o m   time   to   time   an d   at   an y   time   b y   B M O   (or   such   other bank   as the   Lende r   ma y   select)   plus   8.0% ,   pe r   annum,   an d   such rate   shal l   apply commencing   the   nex t  following   da y     to   and   including   the   las t     busines s     da y    o f     the calendar   month   following   the   month   i n   whic h   the   rate   wa s   determined.   For   illustration, the   applicabl e   BBA   LIBOR   rate   as   o f   Jul y   31,   2012   wa s   1.09%   and   the   resulting   interest rate   payabl e   hereunder   fo r   the   period   August   1 ,   2012   through   to   and   including   August

31,   2012   i s   9.09 % per   annum.   A   s tatement   or   statements   i n   writing,   mad e   b y a   person authorized   b y   the   Lender   as   to   the   applicabl e   rate  o f   interest, from   time t o   time,   shal l   be final   an d   conclusiv e   proof   thereof   during   the   operativ e   time   o f   the   statemen t   and   shall not   be   open  t o   disput e or   challenge   b y the   Borrower,   or   an y other   part y   adverse   in interest to the Lende r ;   a nd   (b)   in respect to   Loan B,   the per annum interest rate, charged by BMO to the Lende r , as may be amended from time to tim e .

 

“Loan   A ”   means   the   Lender’s   loan   to   the Borrower up to a maximum of $13,000,000.00 on   a   non - revolving   basis, f o r   the   exclusiv e   us e   o f   developing   and   operating the   REC Project.

 

“Loan B”   means the Lender’s loan to the Borrower up to a maximum of $11,000,000.00 on a no n - revolving basis, for t he exclusive use of developing and operating the REC Project.

 

" Loan”   or   “Loans "   mean s   al l   loans,   including   Loan   A   and   Loan   B   and   other financial assistance   provide d   b y   the   Lender   to   Borrower, w h ich   the   parties   hereb y   agree   shal l   be governed   b y   this   Credi t   Agreement,   includin g   th e   loans   describe d   i n   Articl e   3,   together with   an y   other   financial   assistance   whic h   may   subsequently   be   provided   b y   the   Lender to Borrower, all as may be amended, replaced or made available from time to time.

 

2.3 Article 3.1 of the Cre d it   Agreement   is   amended   and   replaced   with   the   following:

 

“ 3.1   Subjec t   to   the   provision s   o f   th e   Credi t   Agreement ,   the   Lende r   agree s   to   mak e   Loan A and Loan B available to Borrower, provided that Loan B will only be advanced after the Lender has fully advanced Loan A   to   the   Borrower   or   t o the   Borrower’s   credi t. ”

 

2.4 Article 4.1 of the Credit Agreement is amended and replaced with the following:

 

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“4.1   Borrower   wil l requisition fro m   the   Lender , Loan   advances   fr o m   time to   time   in accordance   wit h     and   so   as   t o     fun d     prosecutio n     o f     t he   wor k     describe d     i n     the Development   Schedule,   as   applicable. The   Lende r   may, from   time   t o   time,   require Borrower   to   deposit   an y and   all   Loan   advances,   including   Loan   advances   that   may subsequently   become   C onverted E q uity ,     int o     such   ban k     account(s )     owne d     by Borrower   having   such   controls   on   Borrower’s   ability   to   thereafter   disburs e   such funds   as the Lender in its sole discretion deems satisfactory, including a requirement that funds in exces s   of   $25,000.00 ma y   onl y   be   pai d   fr o m   such   accou n t(s)   i f   authorize d   b y   the signature of an officer of director of Borrower appointed by the Lende r .”

 

2.5 Articles   5.1,   5.2,   5.3,   5. 6   and   5.10   o f   the   Credit   Agreement   are   amende d   and   replaced and Article 5.11 is added, all as follows:

 

“ 5. 1 Borrowe r shal l repa y   the   Loans,   together   with  I nteres t an d   al l other charges applicable to such   Loan s , as the case may b e , in accordance with the terms and conditions herein contained, and as the Lender may direct from time to tim e .

 

5.2 Interest shall accrue on   th e Loans   from the date of each advance, calculated daily, compounded monthly and interest will be payable quarterly, in arrears, with the first such payment commencing June 30, 2014, and every three months thereafter, not in

advance, both before and after maturity, de m and,   default   and   judgment.

 

5.3   Al l Loans other than Loan B Loans shall be repaid by equal, consecutive, quarterly payments with the first such payment being due the earlier of (i) 90 days after the date of Full Operation, or (ii) October 1, 2015, and every three months thereafter, in an amount sufficient to ensure repayment in full of eac h   Loan over a period of five years from the date of the initial advance   on such Loa n . The entire Indebtedness shall, in any event, be fully paid within five years from the   date   of   the   initial   advance   on Loan A.

 

5.6   W i thout limitation, the Borrower shall pay interest   (a)   o n that   part   of   the   Indebtedness directly   attributable to Loan A at the rate applicable to Loan A, and (b) on that part of the Indebtedness directly attributable to   Loan B at the rate applicable to Loan B.   Fo r any

part of the Indebtedness that is not directly attributable to either Loan A or Loan B, the

Borrower shall pay interest   on   such   amount   a t th e highes t rate payable hereunder.

 

5.10 Upon payment   or   extinguishment   in   full   of   Loa n  A , compensation based on 1.0% of EBITDA shall terminate, provided that all such compensation accrued to that time shall remain due and payable.

 

5.11   W i th respect to Loan B :

 

(a) th e Borrower   acknowledges   that   ( i )   the   Lender   intends to borrow the funds that   it   wil l thereafter   loan to Borrower under Loan B, ( ii ) the   Lender   intends   to borrow   such funds   from time to time,   as   and   when   needed,   from   BM O   pursuant to a   written   loa n   agreemen t   wit h   BM O , as may be amended from time to time, and  ( iii ) the Lender will incur   I nteres t an d   other   costs   i n connectio n wit h   the Lender’s   borrowin g   o f such fund s ;

 

(b) Borrower agrees to provide   or cause to provide   the   Lender   and   BMO   with such information and   other   things as the Lender shall request from time to time so as to satisfy   BMO’s   loan   requirements, including, without limitation,   written

 

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acknowledgements and subordination agreements from Borrower’s shareholder s , directors and contractors   as may be requested;

 

( c) Borrowe r   hereb y agrees   to   pay   the   Lender  I nteres t and such other costs that the Lender may   incur and   become   liable for   from time to tim e ,   al l with   the   intent that Borrower   shal l   f ully indemnify   and   save   the Lender   harmles s fro m and against   any   and   al l   I nteres t   an d other   costs   tha t the   Lender   ma y  b e   charge d by B M O   in respect to   Loa n B;

 

( d)   Borrower   shall,   in   addition,   pay the Lender on demand,   a n   aggregate administrative fee equal to 2.0%   o f   al l   those   amount s   referred to in   section

5.11( c ) hereo f , such administrative fee to paid concurrently with each payment of

principal and/or interest under section 5.11(e) hereo f ;   and

 

(e) All Loan B Loans shall be repaid, both as to principal and Interest, at   the same times and in the same manner as such repayment is required by the terms o f   the   loan that the Lender is obtaining from BMO as referred to in section

5.11(a) hereof.”

 

2.6 Articles   6. 1 ,   6.2   and   6. 3   o f   t he   Credi t   Agreemen t   are   amende d   and   replace d   wit h   the following:

 

“ 6.1   From   time   to   tim e , commencing   a t   an y   time   after that   dat e   whic h   i s   ten   (10)   days a f ter   the f i rs t   advanc e   o f   an y   Loan   whic h   i s   made   a f ter   September   30 ,   201 3,   t he   Lender shal l   hav e   the   continuous   ongoing   irrevoc abl e   right   to   exchange   al l   or   an y   part   o f   t he Indebtedness   to   Converted   Equity   on   the   basis   o f   $119.44   o f   I ndebtednes s   f o r   one Class “A” Common Share in the capital stock of the Borrower.

 

6.2   Notwithstanding   anythin g   se t   ou t   herein,   Borrower   shal l   not,   wi t hou t   the   Lender’s prior   written   consent ,   make   paymen t   so   a s   t o   reduc e   the Indebtedness   (nor   shal l   the Lender   be   obligated   to   accept   receipt   thereof),  i f   following   such   payment, the   Lender woul d   be   unabl e   to   conver t   the   remaining   Indebtedness   into   no t   less   tha n   51 % ,   i n   the aggregate (but excluding any shares hel d by Century or   to   whic h it i s entitled   and   w h ich are   no t   Converte d   Equity ,   such   a s   th e   shares   contemplated   b y   sectio n 16.1   hereof ) ,   of Borrower’s   authorized    and   outstanding    Clas s   “A”    Common    shar e   capital    after conversion.

 

6.3   The   Lender   shal l   no t   be   entitled   to   convert more   Indebtedness   than   wil l   result   i n   the Lender holding after any conversion ,   in   the   aggregate,   75 %   of   Borrower’s   authorized   and   outstanding Class “A” Common share capital. All sh ares then held by Lender in the capital of Borrower, including those shares contemplated by section   16.1   hereof , shall be included in calculating such aggregate amount. An y remaining   unconverted   Indebtedness   s hall remain a debt due to the Lender and be payable in accordance herewith.

 

6.4   The   Lender   may   exercise   its   conversion   rights   hereunder   from   time   to   time   by delivery   of   written   notice   to   Borrower   at the   address   referred to   herei n.   The   conversion privilege   referred to   herei n   shal l   be   separable and   transferable   b y   th e   Lender to   any affiliate or subsidiary of the Lender or successor to the Lender.

 

6.5   Borrower   acknowledges   the   directors   o f   Borrowe r   have   authorized   (a )   the   issuance o f   t he   conversion   option s   referred   to   herein   an d   (b)   t he   immediate   issuance   o f   t he

 

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Converted   Equity   upon   the   Lender’s   exercise,   fro m   time   t o   time,   o f   t he   conversion options . ”

 

2.7 Article 10.1(a) and (z) of the Credit Agreement are   amende d an d replace d wit h th e followin g :

 

“10.1   Borrowe r   shal l   not,   withou t   the   prio r   writte n   consent   o f   the   Lender

 

 

(z) conduct any banking business with a financial institution other than BMO at 340 – 7 th Avenue SW, Calgary AB T2P 0X4.”

 

2.8 A rticle   11.1(d)   o f     the   Credit   Agreement   i s     hereb y     amended   and   replace d     with   the following:

 

“11.1(d)   If   the   RE C Project   i s   not   at   Ful l   Operation ,   as   determined   b y the   Lender   acting reasonably,   b y   December   30,   2014,   or   such   later   date   as   the   Borrowe r   ma y elect   to extend   such   date   i n   compliance   with   the   Ground   Lease, fo r   reasons   no t   caused   b y   the Lende r . ”

 

2.9 The following Article 16   –   Share Issuance, is added to the Credit Agreement:

 

“ 16.1 Borrower acknowledges (a) CCEL   has   taken   steps   to   arrange   for   Loan   B   to   be made to Borrower, (b) receipt from CCEL of the   share subscription   for 5,755 Class “A” Common Shares in the capital stock of Borrowe r ,   i n   the   form   attached   as   Schedule   ”G” heret o ,   ( c) receipt   fro m CCE L   o f   the   additional   consideration   referred to in the share subscription form,   (d) the   directors of the Borrower have authorized the issuance of the shares subscribed for by CCEL   and that such shares   hav e bee n   fully paid   for   an d will immediately after issuance, represent 15% of all the issued and outstanding capital stock of Borrower.   Borrowe r agrees to   cause the shares referred to   herei n   to   be   issued as fully paid   not later than   ten (10) days after the date of   the first advance of any Loan w h ich is made after September 30, 2013 . ”

 

 

 

2.10 The following Article 17   –   Participation,   is added to the Credit Agreement:

 

“ 17 . 1 CCEL is entitled to permit CRAI to   participa t e   i n   makin g   Loans   t o Borrowe r   an d in such case   (a )   CCEL shall act as agent   for   CRA I , (b)   re f erence   to   the   Lender in the Credit Agreemen t , as amende d ,   and   in   the   Securi t ie s, shall refer to CCEL, acting as agent for and on behalf of   itself   an d CRA I , (c)   CCE L   will hold all present and future Securities as agent for and on behalf of   itself   and   CRAI,   (d)   CCE L wil l disburs e   Loan advances and collect Indebtedness   for CCEL’s account and for the account of CRAI, as applicable, (e) CCEL may disclose   any   and   all   f i nancial and other information   about   Borrower   to   CRA I . The Borrower   hereb y acknowledges   and   consents   to   the   foregoin g . ”

 

2.11 The   Development   Schedule   i s   amended   and   replaced   wit h   that   attached   hereto   as

Schedule “ A - 1”.

 

2.12 The   Conversio n     Options   attached   as   Schedule   “F”   to   the   Credit   A g reemen t     are amended and replaced with those attached hereto as Schedule “ F - 1( a )”, and  “ F - 1(b ) .

 

2.13 Article 9.1(p) of the Credit Agreement is amended and replaced with the following:

 

“Borrower shall maintain its operating account at BMO at 340 – 7 th Avenue SW, Calgary

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AB T2P 0X4.

A R TICLE 3

A D DITION A L SECURITY

 

3.1       As   additional   partial   and   collateral   Security   fo r   th e   due   repayment   o f   the   Indebtedness b y   the   Borrower   to   t he   Lender,   the   Borrowe r   agrees   to   execute   and   deliver   or   otherwise   cause to   be   provide d   to   the   Lender, the   following   additiona l   documents,   al l   i n   f o r m   satisfactory   to   the Lender:

 

(a) Amended   V oting and   L oc k - Up A greements   wit h   shareholders   o f Borrower;

 

(b) Conversi on   Options from   Borrower,   permitting   Lende r   t o   conver t   deb t  t o   equit y   in the for m s   attached   as   Schedule   “F - 1 ” hereto;

 

(c) Amendment   to   Mortgag e     o f     Leasehold   Interest   increasing   principal   amount secured to not less than $24,000,000.00;

 

(d) Amendment   t o   Leasehold   Acknowledgement   Agreemen t   amon g   the   Lender,   the

Borrower and 1685258 Alberta Ltd; and

 

(e) Such   additional   securities,   amendments   t o   existing   Securities ,   and   an y   other documents   (including,   without   limitation,   direction   to   pay , resolutions,   certificates, opini ons   and   other   supporting   documents   from Borrower, shareholders or other s ) as   the   Lender   or   BM O Bank   o f   M ontreal   may   require   or   dee m   necessar y   or advisabl e   i n   connection   with   t h i s   Amendment, the   Credit   A g reement   an d   any present or future   Security.

 

 

 

A R TICLE 4

A D V A NCES

 

4.1       In   addition   to   and   not   i n   substitution   f o r   an y   similar   or   like   requirement   containe d   i n   the Credit Agreement, and n otwithstanding anything set out herein or elsewhere to the contrary, t he Lender   shal l   not   i n   an y   circumstances   be   bound   t o   make   an y   advance s   whatsoever   pursuant to an y   Loan   i n   any   amounts   or   to   advanc e   an y   amount   stated   as   secured pursuant   to   an y  o f   the Securities   until it has satisfied itself as to the following:

 

(a) The   Lende r   has   entere d   into   a   f orbearance   a greement   wit h   Borrower   o n   terms the Lender in its sole discretion deems satisfactory,   by September 30, 2013;

 

(b) T he   Lender   has   receive d   such   documents   a s   it   i n   its   sole   discretion   deems satisfactory,   confirmin g     that   1369454   Albert a     Ltd.   has   dismissed   Court   of Queen’s   Bench   Actio n No.   1201 - 02650 against   Borrowe r   and   has released Borrower from those matters alleged   in such court action, b y Augus t 31 , 201 3;

 

(c) T he   Lende r ,   or   it s   affiliate,   ha s   receive d   from   BM O   a   signed   term   sheet ,   credit agreement   amendment   and   related   securit y   documents,   providin g   fo r   not   less than   $11,000,000.00   o f additional financing   from   BM O ,   al l   on   suc h   term s   as the Lender   i n its   sole   discretion   deems   satisfactor y ,   b y   December 1 , 2013 ;

 

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(d) The   Lende r     has  receive d     a     cop y     o f     Borrower’ s     audited   financial   statements prepared   b y   BDO   Canad a   LL P   fo r   the   perio d   endin g   Januar y   31,   2013,   together with   profit   an d   loss   statement,   cash   budge t   and capital   expenditures forecast   for the   current fiscal   year ,   al l   i n   a   for m   the   Lende r   i n   it s   sole   discretion deems satisfactory,   b y September 30, 201 3 ;

 

(e) The   Lender   has   receive d     a     copy   o f     an   amendment   to   the   l ease   c ondition agreement   made October   1,   2012   betwee n   1685258   Alberta   Ltd   and   Borrower extending   the   date   i n   2.1(c)   thereof   from   Augus t   15,   2013   to   February   28,   2014, al l   i n   a   f o r m   the   Lender   i n   its   sole   discretion   deems   satisfactory,   b y   September

30, 2013;

 

( f )         The   Lende r   has receive d   a   cop y   o f   an   amendmen t to   the   Purchas e   Agreement , extending   the   date fo r   Construction,   as   de f ine d therein,   to   Septembe r   30,   2014, and otherwise   all in a form the Lender in its sole discretion deems satisfactory, by September 30, 2013;

 

(g) The   Lender   has   receive d   a   copy   o f   an   amendment   to   t he   Ground   Lease,   al l   in   a form the Lender in its sole discretion deems satisfactory, by September 30, 2013;

 

(h) The   Lender   ha s   receive d   a   cop y   o f   a   l oan   agreement   betwee n   Lyn n   Chouinard, as   lender,   and Borrowe r ,   al l   i n a   for m   the   Lende r   i n its   sole discretion   deems satisfactor y ,   whereb y   Lynn   Chouinard   agrees   to   advanc e   $ 335,470.55 to   the Borrowe r ,   by   October   1,   2013;

 

(i) The   Lende r   has   receive d   a   cop y   o f   a   l oan   agreement   betwee n   Gran Sabana Investments Ltd. ,   as lender,   and   Borrower, al l   i n   a  f o r m   the   Lende r   i n   its   sole   discretio n   deems satisfactor y ,   w hereb y   Gran Sabana Investments Ltd. agrees   to   advanc e   $ 35,470.55   to   the   Borrower, b y November 1, 2013;

 

(j) The   Lender   has   receive d   such   documents   a s   it   i n   its   sole   discretion   deems satisfactory, confirmin g   th e   directors   and ,   t o   th e   extent   necessary ,   the shareholders   o f   Borrowe r   hav e   approved   o f   t hi s   Amendment   and   al l matters contemplated herein    i n    accordance    wit h    th e    Unanimous    Shareholde r s Agreement and as otherwis e required at law, by November 7 , 2013;

 

(k) The   Lender   has   receive d   such   documents   a s   it   i n   its   sole   discretion   deems satisfactory,   confirming   the   securit y   interest   registered   agains t   Borrowe r   as   #

08121812442,   presently   i n   favor   o f   HSB C   Bank   Canad a,   has   been   discharged, b y   September   30 ,   2013   or   such   later   date d   a s   th e   Lende r   and   the   Borrower agree upo n ;

 

(l) The   Lender   has   receive d   such   documents   a s   it   i n   its   sole   discretion   deems satisfactory,   confirming th e   removal   and   discharge   o f   instrument   #7040A M   from the   fe e   simple   title   to   the   Lands,   by   September   30,   2013   or   such   later   dated   as the Lender and the   Borrower   agree   upon;

 

(m) The   Lender   has   receive d,   other   than   i n     respect   o f     t he   CR A     Disput e,   such documents   as it   i n its   sole discretion   deems   satisfactory, confirming   al l amounts owe d to   applicable   taxing   authorities   hav e been   pai d up   to   date   or   confirming   all collection,   garnishment   and   en f orcement   actio n   against   Borrowe r   has   ceased,

 

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hav e   agreed to   allo w   Borrower   to   dela y   payment   o f   al l   amounts   owe d,   have released   and   otherwis e   permitted   Borrowe r   to fu l l y   utilize   its   bank   accounts,   and hav e entered   into structured payment plans   wit h   Borrower to   permit   payments of outstanding   amount s   ove r   time,   b y   August   3 1 ,   2013 ;   provide d   that   i n   respect of the CRA Dispute, this condition precedent to advances shall be that:

 

(i) by that date which is five business days after the first advance of Loan A w h ich occurs after September 30, 2013, the   Borrower   has   duly   and punctually   paid   all amounts owing to Canada Revenue Agency (including any amounts owing in respect of the CRA Dispute);

 

(ii) by that date which is fi v e business days after BMO and the Lender have each signed a definitive term sheet as to the terms of the BMO loan referred to in section 5.11(a) hereo f , the Borrower has duly and punctually pai d   all amounts owing to provincial taxation authorities (includ i ng   any amounts owing in respect of the CRA Dispute ) ; and

 

(iii ) by each such deadline in (i) and (ii) above agrees to provide evidence to the Lender, satisfactory to the Lender in its sole discretion, that such amounts have been paid and that the CRA Dispute has   thereby   been   fully and   finally   resolved.

 

“CRA Dispute” means the Borrower’s dispute with Canada Revenue Agency and provincial taxation authorities in respect of the Borrower ’ s taxation years ended January 31, 2009 to January 31, 2013 inclusive.

 

(n) The   Lende r   has   entere d   into   amend in g   agreemen t s,   on   terms   the   Lende r   i n   its sole discretion   deems   satisfactory, wit h each shareholder   o f   t he Borrowe r   that previousl y   entered   into   a   voting   and   loc k - u p   agreement   wit h   the   Lende r , or   such lesser   number   o f   s harehol ders   as   the   Lender   i n   it s   sole discretion   ma y agree  t o, confirming   suc h   shareholders   agree to   jointl y   pay Borrowe r   ( f rom   an y   and   all proceeds   suc h   shareholder s   ma y   no w   or   i n future   becom e   entitle d   t o   fr o m Borrower)   al l   sums   pai d   or   pa yabl e   b y   Borrowe r   i n   connection   wit h   (i)   1369454

Alberta   Ltd.’s   Court   o f   Q ueen’s   Bench   Action   No . 1201 - 02650   against   Borrower, (ii)   al l amounts   presentl y past   due and o w ed by   Borrower to   applicable   taxing authoritie s ,     together   wit h     related   interest,   penaltie s     and   costs,   and  (iii)   all amounts   presentl y   owe d   b y   Borrower   to   its   shareholders   (other than amounts owe d   b y   Borrower   to   Lynn   Chouinard   and   Gran Sabana Investments Ltd. contemplated   i n   the   loan agreements referred to herein ) , by September 30, 2013;

 

(o) Four   nominee s   o f   the   Lende r   shal l   hav e   been   dul y   elected   to   an d   be   on   the

Borrower’s board of directors;

 

(p) Such   other   documents,   securities,   assurances,   certificates,   consents,   statutory declarations,   b y - laws ,   opinions,   and   resolution s   as the   Lende r   i n   it s   discretion requires of any person, firm or corporation have been delivered to the   Lende r .

 

(q) Assurances   i n   a   form   satisfactory   to   the   Lende r' s   solicitors,   actin g   reasonably, hav e   been   provide d   by   Borrower   to   confirm   tha t   al l   necessary   corporate   action has   been   taken   b y   the   Borrowe r   i n   respect   o f   thi s   Amendment   to   ensur e that   t he Credit   Agreemen t ,   as   amende d   hereby ,   and   al l   o f   t he   Securities   r e quire d   to   be

 

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delivered   t hereunder   an d   hereunder   are   vali d   and   bin ding   obligations   o f   the

Borrowe r ;

 

(r ) The Lender has, in its sole discretion, otherwise deemed all conditions precedent to advance have been satisfied;

 

(s) The   Lender   has   receive d   such   documents   a s   i t   i n   its   sole   discretion   deems satisfactory,   confirmin g   Borrower   has   satisfied   al l obligations   unde r   and   is otherwise in compliance with this Amendmen t ;

 

(t ) The Lender has received legal opinions from the solicitors for Borrower, in a form and   substance   satisfactory   to   th e   Lender,   wit h   respect to the   capacity   an d   power o f   t he   Borrowe r   to   ente r   int o   this   Amendment ,   to   execute   the   Securities ,   and other   documentation required   b y   the   Lender,   to   per f orm   it s   obligations   hereunder and   under   the   Securitie s   and   t o   such   othe r   matters   as the   Lender   o r   its counsel may requir e .

 

A R TICLE 5

W A RR A NTIES   AN D REPRESENT A TIONS

 

5.1 Borrower hereby warrants and represents in favour of the Lende r that:

 

(a) Neither   the   execution   nor   the   deliver y   o f   this   Amendmen t ,   no r   the   execution   or deliver y   o f   an y   o f the   Securities,   does   o r   wil l   violate   or   constitute a de f aul t   under an y   agreement,   declaration ,   trust   deed ,   debenture, mortgage,   indenture ,   bond, instrument,   agreement,   charter,   bylaw ,   provision,   statute, judgment,   regulatio n   or order   o f   l a w   to   whic h   Borrower   i s   bound   or   b y   whic h   any   o f   its   assets   ar e   bound or affected.

 

(b) The   Amendmen t     and   th e     Securities,   insofar   as   the y     pertain   to   Borrower, constitute   legal,   vali d   and   binding   obligations   o f   Borrower,   en f orceabl e   against   it i n   accordance   wit h   their   resp ectiv e   terms   (except   a s   suc h   en f orcement   ma y   be the   subject   o f   a n y   applicabl e   bankruptc y ,   insolvenc y   or   similar   law s   generally affecting the enforcement of creditors’ rights and the discretion exercisable by the courts in granting equitable remedies, such as specific performance).

 

(c) The   Amendment   and   th e     Securities   do   not   violate   any  o f     the   provision s     of Borrower's   constating   document s   or ,   to   the   bes t   o f   B orrower's   know l edge,   any contracts,   agreements, trust   agreements ,   laws ,   regulations,   orders,   injunctions, judgements or decrees to which Borrower is subject.

 

(d) Borrower   has   not   relied ,   nor   shal l   it   i n   the   future   rely,   upon   an y   written   o r   verbal representations,   warrantie s   or   agreements   o f   t he   Lende r ,   its   officers, agents, employee s   or   an y   other   person   i n   executing thi s   Amendmen t ,   excep t   such representations, warranties or agreements   as   are   set   out   in   this   Amendmen t .

 

(e) Each   o f   t he   warrantie s   and   representat i ons   mad e   i n   the   Cr edit   A g reement ,   as amended hereby,    ar e    true    and    accurat e,    except    as    ma y    hav e    been communicated in writing by Borrower to the   Lende r   prior to the date her eof.

 

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(f) Borrower acknowledges that pursuant to its request, the Lender has made the f ollowing   advance s   under   Loan  A :

 

(i)   $250,000.00   on   October   25,   2012   to the escrow agent   pursuan t  t o th e escrow agreement   made on or about September 25, 2012   between Borrower, the Lender and others, which funds have not yet been released to Borrowe r ;

 

(ii)   $50,000.00   on   July   2 3, 2013 to BDO Canada LLP for preparation of

Borrower’s 2013 financial statemen t ;

 

(iii )   $ 349,000, on account of fees, disbursements and tax, prior to November 28 , 2013 on account of the Lender’s legal costs   in relation to the   Credit Agreement and transactions contemplated thereby.

 

 

 

A R TICLE 6

A D DITION A L   COVENANTS

 

6.1       W ithou t   restricting   the   generality   or   enforceability   o f   an y   o f   the   other   covenants   herein contained,   the   Borrowe r agrees   tha t   i t   will   cause   to   promptly   remove   the   six   barns   presently located   on   the   Lands   a t its   risk   and   cos t ,   fo r   a   total   cost   no t   to   excee d   $50,000.0 0 ,   so   that   the RE C Project,   an d   i n   particular,   th e   construction   o f   storm   water   drainag e   an d racetrack   ar e   not being interfered with.

 

A R TICLE 7

GENER A L

 

7.1       This   Amendmen t   shal l   be   read   and   construed   alon g   wit h   and   fo r   al l   purposes   treated   as part   o f   t he   Credit   A g reement   and fo r   such   purposes   and   so   f a r   as   ma y   be   necessary to effectuate   the   intent   of these   presents,   the   Credit Agreement   shal l   be   regarded   as   be in g   hereby amended. W i t h   the   exceptio n   o f   t he   modifications   to   the   Credi t   A g reemen t   contained   i n   this Amendment,   i n   al l   other respects   the   provision s   o f   th e   Credi t   A g reemen t   shal l   continue   to   apply and   are   i n   full   forc e   an d   effect   and   continu e   to   remain   v a li d   and   binding   obligations   on   the   part o f   B orrower.   Borrowe r   covenants   and   agrees   that   it   wil l   promptly   observe,   perform,   and   fu l fill an y   and   al l   covenants,   provisos   and   conditions   contained   i n   the   Credit   Agreement,   as amended hereby,   as fully   and   effectu all y   and   to   al l   intents and   purposes   a s   i f   th e   sam e   wer e   incorporated herein.

 

7.2       This   Amendmen t   shal l   no t   create   an y   merger   or   novatio n   or   alter   o r   prejudic e   the   rights o f   t he   Lender   contained   i n   the   Credit   Agreement,   as   amended   hereby,   as   regards   an y   Secur i ty or   otherwise, al l   o f   whic h rights are hereb y expressly reserved.   The   recitals and schedules attached hereto are included in and form an integral part of this Amendment.

 

7.3       The   Borrower   will   be   responsible   fo r   al l   costs   incurred   b y   the   Lender   in   connection   with this   Amendment   and   al l  ancillary   matters.   This   Amendment   ma y     not  be   assigned   b y     the Borrower   withou t   the   prio r   written   consent   o f   th e   Lende r ,   whic h   consent ma y   be   unreasonably withheld.

 

7.4      This   Amendment ,   th e Securities   and   an y   an d   al l   other   documentation   delivere d   in conjunction   herewit h   or therewith   shal l   enure   to the   benefit   o f   t he   Lende r ,   it s   successors   and assigns, and shall be binding upon the Borrower, and its successors and permitted assigns.

 

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7.5 This Amendment may be executed in counterparts, each of which when so executed shal l   be   deeme d   t o   be an   original   and   suc h   counterparts   shal l   constitute   on e   and the   same instrument   and   notwithstanding   the   dat e   o f   e xecutio n   shal l   be   deemed   to   bear   that   date   as f irst abov e   written.   A facsimile   transcribed   cop y   o f   t his   Amendmen t   signe d   b y   an y   party   in counterpart, shal l be deemed to   be and shal l constitute a properl y executed, delivere d   and binding   document   o f   th e   parties   so   signing,   notwithstanding   the   actual   dat e   o f   execution.   Each o f   t he   parties f u rther   agree   promptl y   to   return   an   original,   duly   executed   counterpart   o f   t his Amendment   following   th e   deliver y  o f   the facsimile   transcribed   cop y   thereof,   as   herei n   provided for.

 

7.6       Each   o f   the   parties   acknowledge   that   i f   a n y   o f   th e   Securities   contemplated   hereb y   have been executed and delivered by any party prior to execution of this   Amendmen t , such Securities so   executed   and   delivered   shal l   remain   i n   full   f o rce   and   effect   as   collateral   i n   accordance   with the terms hereo f .

 

 

 

 

 

 

 

 

The remainder of this page has been intentionally left blank.

 

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IN   WITNESS   WHEREOF   the duly authorized agent or signatory of the   Lende r   has   executed this Amendment to Credit   Agreemen t ,   and   th e   Borrower   has   executed   this   Amendment to Credit   Agreement   attested   by its   proper officers   i n   that   behalf,   al l   as   o f   the   29 th   da y   o f   November ,   201 3 ,   to   b e   effective   as   of the day and year first above mentioned.

 

 

 

CENTUR Y   C A SINOS EUROPE GmbH (registered in A lberta under the assumed name, Century   Casinos Europe LLC)

 

Per:     /s/ Andreas Terler

 

 

 

 

 

UNITED HORSEMEN OF A LBERTA   INC.

 

Per:      /s/ Darcy Marler