Document:

Exhibit 4.2(a)

 

AMENDMENT NO. 1 TO RIGHTS AGREEMENT

 

THIS AMENDMENT NO. 1 (this “Amendment”),
dated as of June 15, 2007, to the Rights Agreement, dated as of March 2,
1999 (the “Rights Agreement”) between Penn National Gaming, Inc., a
Pennsylvania corporation (the “Company”) and Continental Stock Transfer and
Trust Company, a New York corporation (the “Rights Agent”).

 

R E C I T A L S

 

WHEREAS, the Company and the Rights Agent have
heretofore executed and entered into the Rights Agreement;

 

WHEREAS, the Company desires to amend the Rights
Agreement in accordance with Section 27 thereof;

 

WHEREAS, the Company, PNG Acquisition Company Inc.,
a Delaware corporation (“Parent”) and PNG Merger Sub Inc., a Pennsylvania
corporation and wholly owned subsidiary of Parent (“Merger Sub”) have entered
into an Agreement and Plan of Merger, dated as of June 15, 2007 (as
amended and supplemented from time to time, the “Merger Agreement”), pursuant
to which Merger Sub will merge with and into the Company (the “Merger”), with the
Company as the surviving entity in the Merger; and

 

WHEREAS, at a special meeting of the Board of Directors
of the Company held on June 15, 2007, the Board approved the amendment of
the Rights Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing
and the mutual agreements set forth in the Rights Agreement and herein, the
parties hereto agree as follows:

 

A G R E E M E N T

 

1.             Amendment
of the Definition of “Acquiring Person”.  Section 1.1 of the Rights Agreement is
hereby amended by adding the following sentence to the end thereof:

 

“The foregoing or any
provision to the contrary in this Agreement notwithstanding, none of Fortress
Investment Group LLC (“Fortress”), Centerbridge Partners, L.P. (“Centerbridge”),
PNG Holdings LLC, a Delaware limited liability company (“Holdings”), PNG
Acquisition Company Inc., a Delaware corporation and wholly owned subsidiary of
Holdings (“Parent”) or PNG Merger Sub Inc., a Pennsylvania corporation and
wholly owned subsidiary of Parent (“Merger Sub”) is, nor are any of their
Affiliates and Associates, nor shall any of Fortress, Centerbridge, Holdings,
Parent or Merger Sub or their respective Affiliates or Associates be deemed to
be, an Acquiring Person to the extent each is a Beneficial Owner as result of (i) the
approval, execution or delivery of that certain Agreement and Plan of Merger,
dated as of June 15, 2007, between the Company, Parent and Merger Sub (as
it may be amended and supplemented from time to time, the “Merger Agreement”)
or (ii) the 

 

 

consummation of the Merger
(as defined in the Merger Agreement) or any other transaction contemplated by
the Merger Agreement.”

 

2.             Amendment
of the Definition of “Adverse Person”.  Section 11.1.1.4 of the Rights Agreement
is hereby amended by adding the following sentence to the end thereof:

 

“The foregoing or any
provision to the contrary in this Agreement notwithstanding, none of Fortress,
Centerbridge, Holdings, Parent or Merger Sub is, nor are any of their
Affiliates and Associates, nor shall any of Fortress, Centerbridge, Holdings,
Parent or Merger Sub or their respective Affiliates or Associates be deemed to
be, an Adverse Person to the extent each is a Beneficial Owner as result of (i) the
approval, execution or delivery of the Merger Agreement or (ii) the
consummation of the Merger (as defined in the Merger Agreement) or any other
transaction contemplated by the Merger Agreement.”

 

3.             Amendment
of Section 20.  Section 20
of the Rights Agreement is hereby amended by adding a new Section 20.12 to
the end thereof to read in its entirety as follows:

 

“The Rights Agent shall not
be subject to, nor be required to comply with, or determine if any person or
entity has complied with, the Merger Agreement or any other agreement between
or among the parties to the Merger Agreement, even though reference to the
Merger Agreement may be made in this Amendment, or to comply with any notice,
instruction, direction, request or other communication, paper or document other
than as expressly set forth in this Amendment and in the Rights Agreement.”

 

4.             Amendment
of Section 30.  Section 30
of the Rights Agreement is hereby amended by adding the following sentence to
the end thereof:

 

“Nothing in this Agreement
shall be construed to give any holder of Rights or any other Person any legal
or equitable rights, remedies or claims under this Agreement by virtue of (i) the
approval, execution or delivery of the Merger Agreement or any related
agreements, (ii) the consummation of the Merger, (iii) the
consummation of any of the other transactions contemplated by the Merger
Agreement and related agreements or (iv) the public announcement of any of
the foregoing.”

 

5.             Effectiveness.
 This Amendment shall be deemed effective
as of the date first written above, as if executed on such date.  Except as specifically amended by this Amendment,
all other terms and conditions of the Rights Agreement shall remain in full
force and effect and are hereby ratified and confirmed.

 

6.             Miscellaneous.
 This Amendment shall be deemed to be a
contract made under the laws of the Commonwealth of Pennsylvania and for all
purposes shall be governed by and construed in accordance with the laws of such
commonwealth applicable to contracts to be made and performed entirely within
such State.  This Amendment may be
executed in any number of counterparts, each of which shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
one and the same instrument.  If any
term, provision, 

 

2

 

covenant or restriction of this Amendment is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this
Amendment shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.  Except
as otherwise expressly provided herein, or unless the context otherwise
requires, capitalized terms used herein shall have the respective meanings
assigned to them in the Rights Agreement. 
The Rights Agent and the Company hereby waive any notice requirement
under the Rights Agreement pertaining to the matters covered by this Amendment.

 

[Signature Page Follows]

 

3

 

IN WITNESS WHEREOF, this
Amendment has been duly executed by the Company and the Rights Agent as of the
day and year first written above.

 

	
   

  	
  PENN NATIONAL GAMING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Peter
  M. Carlino

  
	
   

  	
   

  	
  Name:

  	
  Peter
  M. Carlino

  
	
   

  	
   

  	
  Title:

  	
  Chairman
  and Chief

  
	
   

  	
   

  	
   

  	
  Executive
  Officer

  

 

 

	
   

  	
  CONTINENTAL
  STOCK TRANSFER 

  
	
   

  	
  AND
  TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Steven
  Nelson

  
	
   

  	
   

  	
  Name:

  	
  Steven
  Nelson

  
	
   

  	
   

  	
  Title:

  	
  Chairman

  

 

4Exhibit 10.8(a)

 

Schedule
of Executive Officers entering into Change in Control Payment 

Acknowledgement and Agreement

 

The following executive
officers of Penn National Gaming, Inc. have entered into Change in Control
Payment Acknowledgement and Agreement in the form of Exhibit 10.1 to Penn
National Gaming, Inc.’s current report on Form 8-K, filed on January 2,
2008:

 

	
  Name

  	
   

  	
  Amount of Accelerated Change in Control

  Payment

  	
   

  
	
  William J. Clifford

  	
   

  	
  $

  	
  3,409,875

  	
   

  
	
  Leonard DeAngelo

  	
   

  	
  $

  	
  3,653,438

  	
   

  
	
  Jordan B. Savitch

  	
   

  	
  $

  	
  1,281,138Exhibit 10.26

 

Compensatory Arrangements with Certain Executive Officers

 

Set forth below are the 2008
salaries of Penn National Gaming, Inc.’s named executive officers and its
recently appointed President and Chief Operating Officer:

 

	
  Name and Title

  	
   

  	
  Salary for Fiscal 2008

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Peter M. Carlino 

  Chairman and Chief Executive Officer

  	
   

  	
  $

  	
  1,560,000

  	
   

  
	
  Timothy J. Wilmott 

  President and Chief Operating Officer

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Leonard M. DeAngelo 

  Executive Vice President of Operations

  	
   

  	
  $

  	
  750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  William J. Clifford 

  Senior Vice President-Finance and Chief Financial Officer

  	
   

  	
  $

  	
  728,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Jordan B. Savitch 

  Senior Vice President and General Counsel

  	
   

  	
  $

  	
  421,200

  	
   

  
	
  Robert Ippolito 

  Vice President, Secretary and Treasurer

  	
   

  	
  $

  	
  280,800Exhibit 10.32

 

ASSURED
GUARANTY LTD.

 

DESCRIPTION
OF EXECUTIVE OFFICER CASH COMPENSATION

 

FOR 2008

 

Set
forth below are the 2008 annual salary of 
the Chief Executive Officer, the Chief Financial Officer and each of the
three other  most highly compensated
Executive Officers.

 

 

Dominic J. Frederico

 

 President and Chief Executive
Officer, Assured Guaranty Ltd.

 

	
  Salary

  	
   

  
	
  $

  	
  750,000

  	
   

  
			

 

 

Robert B. Mills

 

 Chief Financial
Officer, Assured Guaranty Ltd.

 

	
  Salary

  	
   

  
	
  $

  	
  520,000

  	
   

  
			

 

 

Michael J. Schozer

 

 President, Assured
Guaranty Corp.

 

	
  Salary

  	
   

  
	
  $

  	
  400,000

  	
   

  
			

 

 

James M. Michener

 

 General Counsel,
Assured Guaranty Ltd.

 

	
  Salary

  	
   

  
	
  $

  	
  390,000

  	
   

  
			

 

 

 Robert A. Bailenson

 

 Chief Accounting
Officer, Assured Guaranty Ltd.

 

	
  Salary

  	
   

  
	
  $

  	
  350,000

  	
   

  
			

 

 

In addition to salary, the named executive
officers will be eligible to be considered to receive cash bonuses for 2008
performance.  In 2008, the named
executive officers will receive  perquisites and other annual compensation
including, employer contributions to retirement plans,  tax preparation services, financial planning
services, club fees, business related spousal travel, and executive health
benefits.  In 2008, Mr. Frederico
and Mr. Michener will receive Bermuda housing allowances, Bermuda housing
tax gross-ups, FICA reimbursement , Bermuda car allowances and Bermuda family
travel.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]