Exhibit 10.19(b)

 

WAIVER TO
CREDIT AGREEMENT

 

This WAIVER TO CREDIT AGREEMENT (this “Waiver”), dated as of February 18, 2005,
is made by and among PENN NATIONAL GAMING, INC. (“Borrower”); the Subsidiary
Guarantors party hereto; and BEAR STEARNS CORPORATE LENDING INC., as
administrative agent (in such capacity, “Administrative Agent”). 

 

R E C I T A L S :

 

WHEREAS, Borrower and Subsidiary Guarantors have entered into that certain
Credit Agreement dated as of March 3, 2003, as amended and restated as of
December 5, 2003 (as amended to date, the “Credit Agreement”) with the Lenders
party thereto; Bear Stearns Corporate Lending Inc., as swingline lender, as
administrative agent and as collateral agent; and the other agents party
thereto; and

 

WHEREAS, the Lenders and Administrative Agent have agreed to waive certain
provisions of the Credit Agreement as provided herein upon the terms and subject
to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

A G R E E M E N T :

 

SECTION 1.                                Definitions.  Unless otherwise
expressly defined herein, all capitalized terms used herein and defined in the
Credit Agreement shall be used herein as so defined.

 

SECTION 2.                                Waiver.  The Lenders hereby waive
compliance with the provisions of Section 10.10 of the Credit Agreement to the
extent necessary to permit Borrower to issue a notice of redemption of, and to
redeem, its outstanding 111/8% Senior Subordinated Notes due 2008 (which are
redeemable at Borrower’s option commencing on March 1, 2005) in accordance with
the terms of the indenture governing such notes (the “Redemption”); and (ii) to
use the proceeds of Revolving Loans, together with cash on hand, to fund the
Redemption.

 

SECTION 3.                                Representations and Warranties; No
Default or Event of Default.  The Credit Parties hereby confirm that, after
giving effect to the effectiveness of this Waiver, (a) all representations and
warranties contained in the Credit Agreement are true and correct in all
material respects as of the date hereof, except to the extent that any such
representation and warranty specifically relates to an earlier date, and (b) no
Default or Event of Default has occurred and is continuing.

 

SECTION 4.                                Miscellaneous.

 

(A)                                   THIS WAIVER SHALL BECOME EFFECTIVE WHEN
ADMINISTRATIVE AGENT SHALL HAVE RECEIVED (I) COUNTERPARTS OF THIS WAIVER
EXECUTED BY BORROWER AND THE SUBSIDIARY GUARANTORS, AND (II) EXECUTED LENDER
CONSENTS, SUBSTANTIALLY IN THE FORM ATTACHED HERETO AS ANNEX I, FROM A NUMBER OF
LENDERS SUFFICIENT TO CONSTITUTE THE MAJORITY LENDERS.

 

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(B)                                  EXCEPT AS PROVIDED HEREIN, THE CREDIT
AGREEMENT SHALL CONTINUE TO BE AND SHALL REMAIN IN FULL FORCE AND EFFECT IN
ACCORDANCE WITH ITS TERMS, AND NOTHING IN THIS WAIVER SHALL BE DEEMED TO
CONSTITUTE A WAIVER OF COMPLIANCE BY ANY CREDIT PARTY WITH RESPECT TO ANY OTHER
TERM OR PROVISION OF ANY CREDIT DOCUMENT.

 

(C)                                   THIS WAIVER MAY BE EXECUTED IN ANY NUMBER
OF COUNTERPARTS AND BY DIFFERENT PARTIES HERETO IN SEPARATE COUNTERPARTS, EACH
OF WHICH WHEN SO EXECUTED AND DELIVERED SHALL BE DEEMED AN ORIGINAL, BUT ALL
SUCH COUNTERPARTS TOGETHER SHALL CONSTITUTE BUT ONE AND THE SAME INSTRUMENT.

 

(E)                                   THIS WAIVER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly
executed and delivered as of the date first above written.

 

 

 

PENN NATIONAL GAMING, INC.

 

 

 

 

 

By:

 

/s/William J. Clifford

 

 

 

Name:

William J. Clifford

 

 

Title:

Chief Financial Officer and Senior
Vice President, Finance

 

 

Signature Page to Waiver

(Penn National Gaming, Inc.)

 

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SUBSIDIARY GUARANTORS:

 

 

 

BANGOR ACQUISITION CORP.

 

BANGOR HISTORIC TRACK, INC.

 

DEL’S-SEAWAY SHRIMP & OYSTER
COMPANY, INC.

 

HOLLYWOOD CASINO-AURORA, INC.

 

 

 

 

 

By:

 

/s/Kevin DeSanctis

 

 

 

Name:

Kevin DeSanctis

 

 

Title:

President

 

 

 

 

 

PNGI CHARLES TOWN FOOD & BEVERAGE
LIMITED LIABILITY COMPANY

 

 

 

 

 

By:

 

/s/Richard Moore

 

 

 

Name:

Richard Moore

 

 

Title:

Manager

 

 

 

 

 

PNGI CHARLES TOWN GAMING LIMITED
LIABILITY COMPANY

 

 

 

By:

PENN NATIONAL HOLDING
COMPANY, Managing Member

 

 

 

 

 

By:

 

/s/Robert Ippolito

 

 

 

 

Name:

Robert S. Ippolito

 

 

 

Title:

Treasurer

 

 

 

 

 

PENN NATIONAL GSFR, LLC

 

 

 

By:

PENN NATIONAL GAMING, INC.,
Sole Member and Manager

 

 

 

 

 

By:

 

/s/Robert Ippolito

 

 

 

Name:

Robert S. Ippolito

 

 

 

Title:

Treasurer

 

 

Signature Page to Waiver

(Penn National Gaming, Inc.)

 

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W-B DOWNS, INC.

 

WILKES BARRE DOWNS, INC.

 

 

 

 

 

By:

 

/s/William J. Clifford

 

 

 

Name:

William J. Clifford

 

 

Title:

President

 

 

 

 

 

BSL, INC.

 

BTN, INC.

 

CHC CASINOS CORP.

 

CRC HOLDINGS, INC.

 

EBETUSA.COM, INC.

 

HOLLYWOOD CASINO CORPORATION

 

HOLLYWOOD MANAGEMENT, INC.

 

HWCC DEVELOPMENT CORPORATION

 

HWCC-HOLDINGS, INC.

 

HWCC-GOLF COURSE PARTNERS, INC.

 

HWCC-TRANSPORTATION, INC.

 

HWCC-TUNICA, INC.

 

LOUISIANA CASINO CRUISES, INC.

 

MOUNTAINVIEW THOROUGHBRED
RACING ASSOCIATION

 

PNGI POCONO, INC.

 

PENN BULLPEN, INC.

 

PENN BULLWHACKERS, INC.

 

PENN MILLSITE, INC.

 

PENN NATIONAL HOLDING COMPANY

 

PENN NATIONAL SPEEDWAY, INC.

 

PENN SILVER HAWK, INC.

 

PENNSYLVANIA NATIONAL TURF CLUB,
INC.

 

STERLING AVIATION, INC.

 

THOROUGHBRED ACQUISITION CORP.

 

 

 

 

 

By:

/s/Robert Ippolito

 

 

 

Name:

Robert S. Ippolito

 

 

Title:

Treasurer

 

Signature Page to Waiver

(Penn National Gaming, Inc.)

 

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BEAR STEARNS CORPORATE LENDING INC.,

 

as Administrative Agent and as a Lender

 

 

 

 

 

By:

 

/s/Keith C. Barnish

 

 

 

Name:

Keith C. Barnish

 

 

Title:

Executive Vice President

 

 

Signature Page to Waiver

(Penn National Gaming, Inc.)

 

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Annex I

 

LENDER CONSENT

 

 

February       , 2005

 

Reference is made to the Credit Agreement dated as of March 3, 2003, as amended
and restated as of December 5, 2003 (as amended to date, the “Credit Agreement”;
the terms defined therein being used herein as therein defined) among Penn
National Gaming, Inc. as Borrower; the Subsidiary Guarantors party thereto; the
Lenders party thereto; Bear Stearns Corporate Lending Inc., as swingline lender,
as administrative agent and as collateral agent; and the other agents party
thereto.

 

The undersigned, as a Lender, hereby consents to the Waiver to Credit Agreement
(the “Waiver”) in the form delivered to the undersigned Lender on or prior to
the date hereof.

 

Pursuant to Section 13.04 of the Credit Agreement, the undersigned Lender hereby
consents to the execution by Bear Stearns Corporate Lending Inc., as
Administrative Agent, of the Waiver.

 

 

 

 

 

 

(Name of Lender)

 

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

Lender Consent to Waiver

(Penn National Gaming, Inc.)

 

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