Document:

Exhibit 10.33

 

PENN
NATIONAL GAMING, INC.

 

NON-QUALIFIED STOCK OPTION CERTIFICATE

 

This certifies that an option to purchase
shares of Common Stock of Penn National Gaming, Inc. has been granted
pursuant to the Penn National Gaming, Inc. 2008 Long Term Incentive
Compensation Plan, as follows:

 

	
  Name and
  Address of Optionee:

  	
   

  
	
   

  	
   

  
	
  Date of
  Grant:

  	
              
      , 20  

  
	
   

  	
   

  
	
  Type of
  Option:

  	
  Non-Qualified
  Stock Option

  
	
   

  	
   

  
	
  Number of
  shares subject to Option:

  	
   

  
	
   

  	
   

  
	
  Option
  Price:

  	
  $

  
	
   

  	
   

  
	
  Vesting
  Date(s):

  	
              
  shares on
                      ,
  20   

              
  shares on
                      ,
  20   

              
  shares on
                      ,
  20   

              
  shares on
                      ,
  20  

  
	
   

  	
   

  
	
  Expiration
  Date:

  	
              
      , 20  

  

 

The option is subject to all the terms and
conditions of the Penn National Gaming, Inc. 2008 Long Term Incentive
Compensation Plan, a copy of which is available upon request.

 

 

	
  Date:

  	
   

  	
   

  	
  PENN NATIONAL GAMING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Robert S. Ippolito

  
	
   

  	
  Title:

  	
  Vice President, Secretary and Treasurer

  

 

 

PENN NATIONAL
GAMING, INC.

STOCK OPTION
TERMS

 

All Stock Options are subject to the
provisions of the 2008 Long Term Incentive Compensation Plan (the “Plan”) and
any rules and regulations established by the Compensation Committee of the
Board of Directors of Penn National Gaming, Inc. (“PNG”).  A copy of the Plan is available upon
request.  Words used herein with initial
capitalized letters are defined in the attached Non-Qualified Stock Option
Certificate or the Plan.

 

The terms provided
here are applicable to the Stock Option specified in the attached
certificate.  Different terms may apply
to any prior or future stock option grants.

 

I.                                         OPTION PERIOD

 

You may exercise your Stock Options during
the Option Period, which begins on the Vesting Dates and ends on the Expiration
Date.  The Stock Options vest in 25%
installments on each Vesting Date.  The
Vesting Dates are the first, second, third and fourth anniversaries of the Date
of Grant.  Thus, you may exercise up to
25% of your Stock Options on the first Vesting Date, up to another 25% of your
Stock Options on the second Vesting Date, and so on.  The Expiration Date is seven (7) years
from the Date of Grant.  However, the
Option Period may end sooner if your employment is terminated under certain
circumstances.

 

II.                                     TERMINATION OF EMPLOYMENT

 

If you cease to be an Employee or Director of
the Company and all Subsidiaries, as the case may be, for any reason (other
than as specified in clauses (i), (ii) or (iii) below), then your
Stock Options that are exercisable as of the termination or cessation date
shall be cancelled and forfeited at the end of the 120th day after such date and
all Stock Options that are not exercisable as of the termination or cessation
date shall be forfeited and cancelled as of such date; except that, in cases of
where such termination of employment or cessation of service is a result of (i) death
or Disability, in which case the Stock Options that are not then exercisable
shall thereupon become exercisable and all Stock Options shall remain
exercisable for the balance of their respective terms, (ii) resignation
(other than for Retirement), in which case the Stock Options that are
exercisable as of such termination or cessation date shall be cancelled and
forfeited at the end of the 30th day after such date, and (iii) termination
for Cause by the Company, a Subsidiary, or the Board, in which case all of the
Stock Options, whether or not then exercisable, shall be cancelled and
forfeited as of such termination date.

 

III.                                 TRANSFERABILITY

 

In general, Stock Options may be exercised
during your lifetime only by you and may not be assigned or otherwise
transferred to anyone else; provided, however, that Options are transferable to
family members, subject to certain restrictions and with certain tax
implications.  Options are transferable
upon your death by will or the laws of distribution and descent.

 

IV.                                PAYMENT

 

When you exercise your Stock Options, you may pay the Option Price in
cash, by check, with previously issued shares of PNG Common Stock (under
certain circumstances), in accordance with a “cashless exercise program” or
with a combination of the foregoing.

 

 

Penn National
Gaming, Inc.

Understanding How Non-Qualified Stock Options Work

 

Congratulations on receiving a Penn National
Gaming, Inc. (“PNG”) Non-Qualified Stock Option.  These Stock Options are designed so that you
may share in the Company’s success.

 

How Do Stock Options Work?

 

A stock option is the right, subject to
certain conditions, to purchase shares of PNG Common Stock at a fixed
price.  The per share price at which
Shares of Common Stock may be purchased when the Stock Option is exercised is
referred to as the Option Price.  The
Option Price is fixed on the Date of Grant and does not change for the life of
the Stock Option.  However, the market
price of PNG stock changes and will ultimately determine the gain, if any, from
your Stock Option.  If the value of PNG
stock increases, you will be able to buy PNG stock below the market price at
the time of exercise.  For example, if
you have been granted Stock Options to purchase 100 shares, at an Option Price
of $25 and the price of PNG stock has grown to $40 on the date you choose to
exercise, you would be able to purchase shares that are worth $4,000 for only
$2,500, a pre-tax gain of $15 per share. 
You will be subject to Federal income tax with respect to the Stock
Option when you exercise your Stock Option. 
THE TAX RULES APPLICABLE TO
NON-QUALIFIED STOCK OPTIONS ARE COMPLEX. 
YOU SHOULD CONSULT WITH YOUR FINANCIAL ADVISOR FOR MORE INFORMATION.

 

Stock Option Basics

 

The Option Price is set at the closing sales
price of a share of Common Stock of PNG stock on the immediately preceding
business day of the date the Stock Option is awarded.

 

The vesting period is the waiting period from the
Date of Grant
to the Vesting Date during
which you cannot exercise your Stock Option.

 

The Option Period is the time from the Vesting Date until
the Expiration Date,
during which you can exercise your Stock Options, which means you can purchase
shares of PNG stock at the Option Price.

 

Your Stock Option can no longer be exercised
after the Expiration Date, which is seven (7) years after the Date of
Grant.  The Stock Option will expire
sooner if you leave PNG under certain circumstances.  For example, if you were granted a Stock
Option to purchase 100 shares of PNG Common Stock, and you remain employed by
PNG for ten years, the Stock Option is exercisable as follows:

 

	
  Number of Shares

  	
   

  	
  Vesting
  Period

  	
   

  	
  Option
  Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of
  Grant - 

  First Anniversary 

  of Date of Grant

  	
   

  	
  First
  Anniversary of Date of Grant - 

  Seventh Anniversary of Date of Grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of
  Grant - 

  Second Anniversary 

  of Date of Grant

  	
   

  	
  Second
  Anniversary of Date of Grant - 

  Seventh Anniversary of Date of Grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of
  Grant - 

  Third Anniversary 

  of Date of Grant

  	
   

  	
  Third
  Anniversary of Date of Grant - 

  Seventh Anniversary of Date of Grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of
  Grant - 

  Fourth Anniversary 

  of Date of Grant

  	
   

  	
  Fourth
  Anniversary of Date of Grant - 

  Seventh Anniversary of Date of GrantExhibit 10.34

 

PENN NATIONAL
GAMING, INC.

 

NOTICE OF GRANT OF RESTRICTED STOCK

 

This is to notify you that an award of
restricted shares of Common Stock of Penn National Gaming, Inc. (the “Company”)
has been granted pursuant to the Penn National Gaming, Inc. 2008 Long Term
Incentive Compensation Plan, as follows:

 

	
  Name and
  Address 

  	
                                                             

  
	
  of Grantee:

  	
                                                             

  
	
   

  	
                                                             

  
	
   

  	
   

  
	
  Date of
  Grant:

  	
                      ,
  20    

  
	
   

  	
   

  
	
  Type of
  Grant:

  	
  Restricted
  Stock Award

  
	
   

  	
   

  
	
  Number of
  shares:

  	
                        

  
	
   

  	
   

  
	
  Fair market
  value per share:

  	
  $                          (as of the close of business on                           )

  
	
   

  	
   

  
	
  Total fair
  market value of award:

  	
  $                          (as of the close of business on                           )

  
	
   

  	
   

  
	
  Vesting
  Date(s)/Lapse of Restrictions:

  	
                
  shares on                       
  [1st anniversary of Date of Grant]

                
  shares on                       
  [2nd anniversary of Date of Grant]

                
  shares on                       
  [3rd anniversary of Date of Grant]

                
  shares on                       
  [4th anniversary of Date of Grant]

   

  OR

   

                
  shares on                       
  [4th anniversary of Date of Grant]

                
  shares on                       
  [5th anniversary of Date of Grant]

  

 

The grant is subject to all the terms and
conditions of the Penn National Gaming, Inc. 2008 Long Term Incentive
Compensation Plan, a copy of which is available upon request.

 

	
   

  	
   

  	
  GRANTEE

  
	
   

  	
   

  	
   

  
	
  Date:  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PENN NATIONAL GAMING, INC.

  
	
   

  	
   

  	
   

  
	
  Date: 
  

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:

  	
  Vice President, Secretary and

  
	
   

  	
   

  	
   

  	
  Treasurer

  

 

 

PENN NATIONAL
GAMING, INC.

RESTRICTED
STOCK AWARD AGREEMENT

 

All Restricted Stock
is subject to the provisions of the 2008 Long Term Incentive Compensation Plan
(the “Plan”) and any rules and regulations established by the Compensation
Committee of the Board of Directors of Penn National Gaming, Inc.  A copy of the Plan is available upon
request.  Unless specifically defined
herein, words used herein with initial capitalized letters are defined in the
attached Notice or the Plan.

 

The terms provided
herein are applicable to the Restricted Stock specified in the attached
Notice.  Different terms may apply to any
prior or future awards under the Plan.

 

I.              PAYMENT FOR
SHARES

 

No payment is required for the Restricted
Stock you receive.

 

II.            VESTING/LAPSE
OF RESTRICTIONS

 

Vesting of Restricted Stock means that the
Restricted Stock may no longer be forfeited in the event you have a termination
of employment (see the discussion of Forfeiture below).  The lapse of restrictions means that the
stock is fully transferable by you.  Any
stock for which the lapse of restrictions has not occurred may not be sold,
transferred, pledged or otherwise disposed of by you.

 

The Restricted Stock vests and the
restrictions on transfer lapse in [25% installments on each of the first,
second, third and fourth anniversaries of the Date of Grant] OR[50%
installments on each of the fourth and fifth anniversaries of the Date of
Grant], if you continuously provide service as an Employee or Director, as the
case may be, through such date.  In
addition, the Restricted Stock vests and the restrictions on transfer lapse as
of the occurrence of any of the following events:

 

A.            Your service as an Employee or
Director of the Company, as the case may be, terminates because of death,
Disability or Retirement; or

 

B.            The Company is subject to a
Change of Control (as defined in the Plan).

 

No additional shares of Restricted Stock vest
after your service as an Employee or a Director of the Company, as the case may
be, has terminated for any other reason.

 

III.           FORFEITURE

 

If your service as an Employee or Director of the Company, as the case
may be, terminates for any reason (other than death, Disability, or Retirement),
then your shares of Restricted Stock will be forfeited to the extent that they
have not vested before the termination date and do not vest as a result of the
termination.  This means that the
Restricted Stock will immediately revert to the Company.  You will receive no payment for shares of
Restricted Stock that are forfeited.

 

 

IV.           LEAVES OF
ABSENCE

 

For purposes of this grant, your service does not terminate when you go
on a leave of absence recognized under the Plan.  Your service will terminate when the leave of
absence ends, however, unless you immediately return to active work.

 

V.            STOCK
CERTIFICATES

 

The certificate(s) representing your Restricted Stock award will
be held for you by the Company.  After
those shares have vested, a stock certificate for those shares will be released
to you.

 

VI.           VOTING AND
DIVIDEND RIGHTS

 

You may vote your Restricted Stock and you will receive any dividends
paid with respect to your Restricted Stock even before they vest.  Dividends with respect to your Restricted
Stock will be paid in a lump sum on the dates that dividends are payable on
Common Stock of the Company to Company shareholders generally.

 

VII.         WITHHOLDING
TAXES

 

No stock certificates will be released or issued to you unless you have
made acceptable arrangements to pay any withholding taxes that may be due as a
result of this grant or the vesting of the shares.  Those arrangements may include withholding
shares of Company Common Stock that otherwise would be released to you when
they vest.  These arrangements may also
include surrendering shares of Company Common Stock that you already own.  The fair market value of the shares you
surrender, determined as of the date when taxes otherwise would have been
withheld in cash, will be applied as a credit against the withholding taxes.

 

VIII.        RESTRICTIONS
ON RESALE

 

By signing this Agreement, you agree not to sell any shares at a time
when applicable laws or Company policies prohibit a sale.  This restriction will apply as long as you
are an Employee or Director of the Company, as the case may be.

 

IX.           NO RIGHT TO
CONTINUED SERVICE

 

A grant of Restricted Stock does not give you the right to continue in
service with the Company in any capacity. 
The Company reserves the right to terminate your services at any time,
with or without cause, subject to any employment agreement or other contract.

 

X.            ADJUSTMENTS

 

In the event of a stock split, a stock dividend or a similar change in
Company Common Stock, the number of Restricted Shares that remain subject to
forfeiture will be adjusted accordingly.

 

 

XI.           APPLICABLE
LAW

 

This Agreement will be interpreted and enforced under the laws of the Commonwealth
of Pennsylvania, without regard to its choice of law provisions.

 

XII.         THE PLAN AND
OTHER AGREEMENTS

 

The text of the Penn National Gaming, Inc. 2008 Long Term
Incentive Compensation Plan is incorporated in this Agreement by reference.

 

This Agreement and the Plan constitute the entire understanding between
you and the Company regarding this grant. 
Any prior agreements, commitments or negotiations concerning this grant
are superseded.  This Agreement may be
amended only by another written agreement, signed by both parties.

 

BY SIGNING THE ATTACHED NOTICE,

YOU AGREE TO ALL OF THE TERMS AND CONDITIONS

DESCRIBED ABOVE AND IN THE PLAN.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]