Table Of Content

| v PENN NATIONAL GAMING, INC. EMPLOYEE GUIDANCE MANUAL [,Oowns* Penn National Gaming, Inc Employee Guidance Manual Our Corporate Mission "To eslablish PNG as a profitable and respectod leader inthe racing and gaming business, 2s a valued partner in our communities and as a role model for ethical business standards in our industry." Penn National Gaming, Inc Employee Guidance Manual Table of Contents Policy INTRODUCTION CEO's Welcome Messege Organization Description Introductory Statement Employee Acknowledgement Form EMPLOYMENT 400 Guest Relations 101. Nature of Employment 102 Employee Relations 103 Equal Employment Opportunity 104 Code of Business Conduct 405. Personal Relationships in the Workplace 407 immigration Law Compliance 4114 Disability Accommodation 118. Job Posting 117 Miscallaneous EMPLOYMENT STATUS & RECORDS 201 Empoyment Categories 202 Access to Personnel Files, 203. Emproyrrent Background Checks 204 Personnel Data Changes 205 Introductory Period 208 Employment Appications 208 Performance Evaluation EMPLOYEE BENEFIT PROGRAMS 301 Employee Benefits 303 Vacation 305 Holidays 306 Workers’ Compensation Insurance 307 Sick Leave Benefts ‘309. Bereavement Leave 311. Jury Duty 313 Bonofis Continuation (COBRA) 316 Health Insurance S17 Life Insurance 318 Short-Term Disabilty 319 Long-Term Disabilty 320 40'I{k) Savings Plan. 321 Perfect Attendance Recognition 1228 Flexible Spending Accounts (FSA's) ‘TIMEKEEPING/PAYROLL, 401 Timekeeping 403 Paydays Effective Dat 11/1999 sniri999 41171900 11111998 snnio99 sit009 snine9e ani998 1N11998 sun/1908 ‘initg98 anise 4nnisa8 41999 saniig99 1mn11998 ‘nrs999 sinit908 sninie99 singe wvine9e suirie99 suiyig99 1iN/1908 11/1008 19/1998 1/1998 11/1998 41171099 4111909 41171998 srini909 avirt998 sr2004 ‘72006 sy1r2008 +m/2004 472004 73/2008 ire004 ‘ysro004 ‘sra004 v2004 iv2004 wi2004 11472004 sire004 sira004 ‘1/2004 sn/2004 snr2004 4nr2003 4172004 sisre004 svire008 11/2006 snr2004 sunr2004 suvre004 srtr2002 M2004 sriracos sisrecoa svirecos snraco4 snroco4 snracos -nra008 ‘unro008 +7204 Penn National Gaming, Policy ‘TIMEKEEPING/PAYROLL 405. Employment Termination 4409 Administrative Pay Corrections 410 Pay Deductions and Setotis WORK CONDITIONS & HOURS 501 Safety 802 Work Schedules ‘503. Use of Coll Phones ‘504. Use of Phone and Mal Systems 505 Smoking Tobacco Usage 507 Overtime 508 Use of Equipment and Vehicles 510 Emergency Closings 316 Computer and E-mail Usage 517 Intemet Usage 5518 Workplace Monitoring 522 Workplace Violence Prevention LEAVES OF ABSENCE 602 Family Leave 603 Personal Leave 605 Mitary Leave Effective Date: sr1s999 111090 yir1998 snni99@ sis/i990 11/2003 vniigae 11/1908 sunnig99 ‘unrt900 aninisee Sait 41971998 sniri999 sin11999 sinite99 sunite08 11171999 EMPLOYEE CONDUCT & DISCIPLINARY ACTION 791. Employos Conduct and Work Rules 702. Drug and Alcohol Use 793. Sexual and Other Uniavful Harassment 704 Attendance and Punctuality ‘708 Personal Appearance 706 Retum of Property 78 Resignation 710 Secunty inspections 712 Solictation 714 Drug Testing 716 Discipine Policy 718 Problem Resolution 720. Casual Days MISCELLANEOUS 1200 Life-Threatening lnessos in the Workplace EXHIBITS: 1 Job Advertisement 2 SelfNomination for Advertised Vacancy siniee9 siirte99 wviriees suiriees su1rt908 su171998 sinrt900 11171999 ane98 aii1998 s11/1900 41/1900 aii909 11/1908 1111999 11171999 Revision Date: ‘ysr2004 s1y2004 12008 ‘19/2008 11/2004 7/2008 71/2008 s7r2008 772004 ‘ys72004 sysra004 ‘rsr2004 ‘nro004 42004 11172004 snv2004 sn72004 sysr2004 sunr2004 sunv2004 snyz004 ‘i204 41/2003 4/204 syirg008 syirz008 sir2008 sunr2004 ‘unr2004 ‘sinra004 +ir2004 n/2004 Penn National Gaming, Inc Employee Guidance Manual CEO's Welcome Message Welcome new employee! (On behalf of all PNG employees | welcome yeu to our Company and wish you every success here. | believe that each employee contributes directly to PNGs growth and success, and I hope you wil take pride in being a member of our eam. Our abjectve is to provide & work environment ‘hat is conducive to both personal and professional growth for all PNG employees. This manual was developed to outne the policies, programs and benefits available to eligible ‘employees, and to acquaint you with PNG's expectations of you as an employee. You should {amifarize yourself withthe content of your manual as son as possible, for twill answer many ‘questions about employment with PNG. | sincerely hope that your experience at PNG will ke challenging, enjoyatle and rewarding ‘Again, welcome! Peter M. Carino Chairman/CEO Penn National Gaming, Inc Employee Guidance Manual Organization Description fective Date: 1/1/1900, Revision Date 1/1/2008 The Company Penn National Gaming, ine. ("PNG") is a diversified gaming and par-mutuel company. We own, operate and manage gaming and racing properties. Our employment has grown from about 1,800 in 1988 to neerly 15,000 today. We presently operate in seven states and in Canada. ‘Qur properties: Charles Town Races & Slots, Charles Town, WV - a complete entertainment complex that offers both coin-n, coin-out and video slots, ive and simulcast horse racing, live entertainment ‘and a variety of dining options, A 1,500 space parking garage was recently opened. in ‘addition, construction of nearly 100,000 squere feet of new gaming, restaurant, entertainment ‘and back-of-house facies has opened. A total of 3,500 slot machines are currently in ‘operation and additional expansion plans are in the works. Casino Magie Bay St. Louis, MS - added to the PNG famly in August 2000, this 600+ acre facility inctudee a large casino (with slots and table games), a hotel, an RV park, a marina and ‘an Arnold Palmer designed championship golf course. high-end 300-rcom hotel ower adjacent to the casino opened in May 2002. Boomtown Biloxi Casino, MS - acquired by PNG along with the Bay St. Louis property in ‘Asgust 2000, this free-sianding casino is located on the "back bay” in Blox, Mississippi. It features a Westarn theme and is known for “the best buffet on the Mississippi Gut Coast.” Casino Rouge, Baton Rouge, LA -joined PNG in April of 2001 as part of @ merger with CRC Holdings, nc. This riverboat enjoys a major market share in Baton Rouge and features many amenities, including the "Capitol Bistro,” a new fine dining restaurant. ‘Bullwhackers Casino, Black Hawk, CO - added to tho PNG family in Apri 2002, Bullwhackers is actually three separate lively and excling properties located in Black Hawk, CO, an old mining town in the Rockies which is now one of Cclorado's three gaming zones. Hollywood Casinos - in March of 2003, we acquired Hollywood Casinos, Inc., of Dallas, TX. “The three properties owned by Hollywocd include Hollywood - Aurora (IL), Holywood = ‘Shreveport (LA), and Hollywood - Tunica (MS). In addition to gaming, the Shreveport and ‘Tunica properties have very attractive high-end hotels. This acquisition added 4,500 employees to the PNG famly. Casino Rama, Ontario, Canadsa- in the Casino Rouge merger with CRC, PNG acquired a ‘contract to manage Casino Rama, a large casino/hotel complex north of Toronto, Canads. ‘Organizational Description Penn National Gaming, Inc Employee Guidance Manual enn National Race Course, Grantville, PA one of two theroughbred racstracks in PA ff Track Wagering facilites in + Chambersburg + Reading + Lancaster + Williamsport + dehnstown + York Pocono Downs, Wilkes-Barre, PA - one of two harness racetracks in PA ff Track Wagering facies in © Allentown + Ete + Carbondale + Hazleton + East Stroudsburg Freehold Raceway, Freehold, NJ~PNG's joint-venture operation, Freehold Raceway was tsstablshed in 1853 and features live Standardbred harness races for trotters and pacers ten ‘months of the year from August through May. The racetrack is also open seven days a week {and seven nights for yeer round thoroughbred and hamees racing simUlcasts from tracks throughout North America, Business Strategy Itis our desire and intention to be a leading operator in both the gaming and pari-mutuel racing businesses in the United States. Toward that end, we are broadening our gaming base with slot machines, table games, hotels and related entertainment venues, (OUR TRADITION OF LIVE RACING We continue to enjoy a proud heritage in the circes of thoroughbred and hamess racing. Live horse racing is offered at three of our facies: thoroughbred racing at Penn National Race ‘Course and Charles Town Races, and harness racing at Pocono Dovms. Offering live racing at these venues has enhanced our industry position in terms of part mutuel wagering and export simuicasting. ‘Addltionally, Penn National Race Course annually hosts three major $50,000-added stakes races: the Pennsylvania Governors Cup, Jenny Wade Handicap, and Blue Mountain Juveniles Stakes. These prestigious races shine the spotight ofthe racing community on PNRC - attracting nationally renowned horees and jockeys. Charles Town Races also hosts the West Virginia Breeders Ciassic in the fall of every year. ‘our oTws ‘At our 11 OTWs throughout Pennsylvania, racefans may place wagers on thoroughbred and hhamess races simulcast from our racetracks and from other tracks around the country. Our ‘OTWs play an integral role in our future by increasing the geographic areas we are able to target. ‘Organizational Description Penn National Gaming, Inc Employee Guidance Manual EXPANDING SIMULCASTING OPERATIONS \We transmit simulcasts trom our tracks to other wagering locations year-round and we receive simulcasts of races from other locations year-round. By importing a full card of races from approximetely 75 racetracks, we are able to offer a ful slate of events for wagering fo each patron at a PNG facilily. In exporting our races to more than 100 locations across the country, Wwe are able to further market the quality of our races nationwide. In the time that has passed Since our acquisition of Charles Town Races, we have deen working dligently to develop and improve our ive racing program. Charlee Town was the frst track in West Virginia to export simulcast thoroughbred racing. ACCOUNT WAGERING SERVICES ‘Telephone: Our telephone account wagering services have been operating for almost 20 years. ‘Telebet™ and Dial-a-Bet™ account nolders can place pari-mutuel horse wagers by phone through the use of a debit account Intemet: eBet USA was launched officially In January of 2001. eBel USA allows account holders to place wagers via the internet, as well as see live video ofthe races. eBet USA can be found at waw.ebotusa.com. The Future We will continue to seek sensible growth opportunites in gaming and entertainment in an ‘ongoing effort to further develop our strengths and our position within the industry. Without {doubt our company hae entered the new milenrium with sold plans for a very bright future. (Organizational Description Penn National Gaming, Inc Employee Guidance Manual Introductory Statement foci Det: 1/1008 Revision Date: 1172008 “This manual is designed to acquaint the non-represented employees of Penn National Gaming, Inc, and its subsidiary companies with information about working conditions, employee benefit, and the policies affacting their employment. Whenever a reference is made to “Penn National Gaming, Inc.", or "PNG", it should be understood to apply equally to all ‘subsidiary companies as well, Whenever a reference is made to the “manual,” it should be understood to include this Penn National Gaming manual and the attached local ‘addendum. |As en employee, you should read, understand and comply with all provisions ofthis manual. tt escrines mary of your responsibilities as an employee and outines the programs ceve‘oped by PNG to benefit employees. /n the event that an employee has an employment contract with PNG and there isa discrepancy between the terras/conditins of the employment contract and this manuel, the terms/conditions of the contract shall prevail. Adviionally, should there be any discrepancy between this manual and any benefit plan, summary plan description (SFO), insurance contract, ete, the later documents shell prevai. In the event of any discrepancy between this manual and the local addendum, the terms of the local addendum shail prevail. No employee manual can anticipate every circumstance or question about a policy. As PNG continues to grow, and the need arises, PNG resorves the right to supplement or rescind any polices ot portion of the manual from tie to time, as itdeems appropriate, in its sole and ‘bsolutaciscration. The only exception fo any changes is our empioyment-at-will policy, which permite you or PNG te terminate our relationship for any reason at any time. Employees wil, of ‘course, be nolfied of such changes as they occur. Introductory Statement Penn National Gaming, Inc Employee Guidance Manual Employee Acknowledgement Form Effective Dat: 1/1/1900 Rovielon Dats: 1/1/2004 Inthe event that an employee has an employment contract ora labor agreement with PNG and there is a discrepancy between the termsicorditions of the employment contract or labor ‘agreement and this manual, the terms/candiions of the employment contractor labor ‘agreement shell provall “The employee manual deserbes important information about PNG and my property, and | Understand that | should consult the Human Resources Department regarding any questions not answered In the manual. This marual supercedes all previous company menuals, handbooks ‘and guides. Ihave entered into my employment relafonship with PNG voluntary and ‘acknowiscge that thera isn specified length of employment. Accordingly either PNG or | can ‘eminate the empioyment relationship at wil, with or without cause, at any time, $0 long as there is no violation of applicable federal or siate law. ‘Since the information, policies, and benefits described here are necessariy subject to change, | acknowledge that revisions tothe manusl may occur. All such changes will be communicated through official notices, and | understand that revised information may supersede, modify, or climinata existing policies, Only the chief operating officer of PNG has the ability io adopt any revisions tothe core policies in this marwal Furthermore, | acknowledge that this manual is nether a contract of employment nor a legal document. | acknowledge receipt ofthe manual and | understand that tis my responsibilty to read and comaly wit the policies contained inthis manual and any revisions made to it EMPLOYEE'S NAME (printed) EMPLOYEE'S SIGNATURE: DATE: PROPERTY: Please sign, date and return this form to Human Resources. Employee Acknowledgement Form