Document:

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.

 

 

(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]

 

 

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.)

 

 

	
   

  	
  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.)

 

 

	
   

  	
  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.)

 

 

	
   

  	
  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.)

 

 

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.)Exhibit 10.29

 

Non-Employee Director Compensation Policy

 

Penn National Gaming, Inc. (the “Company”)
pays director’s fees to each director who is not an employee of the
Company.  Each outside director receives
an annual fee of $18,000, which is paid in twelve equal monthly installments
throughout the year, plus $1,500 for each Board meeting attended in person and
reimbursement for out-of-pocket expenses in connection with their attendance at
such meetings.  Each member of the Audit
Committee receives $1,000 for each audit committee meeting in which they
participate.  In addition, in each of
2003, 2004 and 2005, each non-employee director received a grant of options to
purchase 60,000 shares (adjusted for the 2-for-1 split of the Company’s common
stock effected on March 7, 2005) of Common Stock of the Company.  The exercise price of the options granted to
non-employee directors was equal to the fair market value of the Company’s
Common Stock on the date of the grant.

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