Document:

EX-10.2

 Exhibit 10.2 

Discretionary Option Grant Program 

CorVel Corporation 

Stock Option Agreement 

A.    The Board has adopted the Plan for the purpose of retaining the services of selected Employees, non-employee members of the Board (or the board of directors of any Parent or Subsidiary) and consultants and advisors who provide services to the Company (or any Parent or Subsidiary). 

B.    Optionee is to render valuable services to the Company (or a Parent or Subsidiary), and this Agreement is executed
pursuant to, and is intended to carry out the purposes of, the Plan in connection with the Company’s grant of an option to Optionee. 

C.    All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 

Now, therefore, it is hereby agreed as follows: 

1.    Grant of Option. Subject to and upon the terms and conditions set forth in this Agreement, Optionee is
hereby granted, as of the Grant Date, an option to purchase the Option Shares. The Option Shares shall be purchasable from time to time during the option term at the Exercise Price. 

2.    Option Term. This option shall expire at the close of business on the Expiration Date, unless sooner
terminated in accordance with this Agreement. 
 3.    Limited Transferability. 

(a)    During Optionee’s lifetime, this option shall be exercisable only by Optionee and shall not be assignable or
transferable other than by will, by the laws of descent and distribution following the Optionee’s death, or to any “Family Member” (as such term is defined in the General Instructions to Form
S-8 (or any successor to such Instructions or such Form) under the Securities Act), provided that Optionee may not receive any consideration for such transfer, the Family Member may not make any subsequent
transfers other than by will or by the laws of descent and distribution and the Company receives written notice of such transfer. This assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the option
pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for this option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Company may
deem appropriate. 
 (b)    Should Optionee die while holding this option, then this option shall be transferred in
accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation, automatically be
transferred to such 

 
beneficiary or beneficiaries upon Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of
this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 

4.    Exercisability. This option shall become exercisable in one or more installments as specified in the
Grant Notice. As the option becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the Expiration Date or sooner termination of the option term.

 5.    Effect of Cessation of Service. 

(a)    Should Optionee cease to be a Service Provider for any reason (other than death, Permanent Disability or
Misconduct) while this option is outstanding, then this option shall remain exercisable until the earlier of (i) the expiration of the three month period commencing with the date of such cessation of Service Provider status or
(ii) the Expiration Date. 
 (b)    Should Optionee cease to be a Service Provider by reason of Permanent
Disability or death while this option is outstanding, then the option shall remain exercisable until the earlier of (i) the expiration of the twelve month period commencing with the date of such cessation of Service Provider status or
(ii) the Expiration Date. 
 (c)    Should Optionee cease to be a Service Provider due to termination for
Misconduct, then this option shall terminate immediately. 
 (d)    During the limited period of post-service
exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares for which the option is exercisable at the time Optionee ceased to be a Service Provider. This option shall, immediately when Optionee ceases
to be a Service Provider for any reason, terminate with respect to any Option Shares for which this option is not otherwise at that time exercisable. Upon the expiration of the limited post-service exercise period or (if earlier) upon the Expiration
Date, this option shall terminate entirely. 
 6.    Effect of Corporate Transaction. 

(a)    This option, to the extent outstanding at the time of a Corporate Transaction but not otherwise fully exercisable,
shall automatically accelerate so that this option shall, immediately prior to the effective date of such Corporate Transaction, become exercisable for all of the Option Shares at the time subject to this option. However, this option shall
not become exercisable on such an accelerated basis, if and to the extent: (i) this option is, in connection with the Corporate Transaction, to be assumed by the successor corporation (or parent thereof) or to be replaced with a
comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof) or (ii) this option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing at
the time of the Corporate Transaction on any Option Shares for which this option is not otherwise at that time exercisable (the excess of the Fair Market Value of those Option Shares over the aggregate Exercise Price payable for such shares) and
provides for subsequent payout in accordance with the same exercise schedule for those Option Shares set forth in the Grant Notice. 

  
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 (b)    Upon the consummation of the Corporate Transaction, this option
shall terminate, except to the extent assumed by the successor corporation (or parent thereof) in connection with the Corporate Transaction. 

(c)    If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately
adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have been issuable to Optionee as a result of the consummation of such Corporate Transaction had the option been exercised immediately
prior to such Corporate Transaction, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. 

(d)    This Agreement shall not in any way affect the right of the Company to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 

7.    Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any
stock split, reverse stock split, stock dividend, recapitalization, combination of shares, exchange of shares, reorganization, merger, consolidation, split-up, spin-off,
or other change affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (a) the total number and/or class of securities subject to this option and
(b) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 

8.    Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to
the Option Shares until such person shall have exercised the option in accordance with the provisions of Paragraph 9, paid the Exercise Price and become a holder of record of the purchased shares. 

9.    Manner of Exercising Option. 

(a)    In order to exercise this option with respect to all or any part of the Option Shares for which this option is at
the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 

(i)    Execute and deliver to the Company (A) a Notice of Exercise, in substantially the form
attached hereto as Exhibit A, that specifies the number of Option Shares for which the option is being exercised and (B) any additional documents which the Committee may, in its discretion, deem advisable. 

  
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 (ii)    Pay the aggregate Exercise Price for the
purchased shares in one or more of the following forms: 
 (A)    cash or check payable to the
Company’s order; 
 (B)    shares of Common Stock held by Optionee (including the cancellation of
shares of Common Stock subject to this option); 
 (C)    through a special sale and remittance
procedure pursuant to which Optionee is to provide irrevocable written instructions (1) to a Company-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on
the settlement date, an amount sufficient to cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Company by reason of such
purchase and (2) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale transaction; 

(D)    by the Company delivering to Optionee a number of shares of Common Stock having an aggregate Fair
Market Value (determined as of the Exercise Date) equal to the excess, if positive, of the Fair Market Value of the shares of Common Stock underlying the option being exercised on the Exercise Date, over the aggregate Exercise Price of the option
for such shares of Common Stock; or 
 (E)    payment in the form of a promissory note which the
Committee, in its discretion, may approve at the time of exercise in accordance with Paragraph 10. 

(iii)    Furnish to the Company appropriate documentation that the person or persons exercising the option
(if other than Optionee) have the right to exercise this option. 
 (iv)    Make appropriate
arrangements with the Company (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state and local income and employment tax withholding requirements applicable to the option exercise. 

(b)    If payment of the exercise price is made by means of the surrender of shares of Common Stock which are subject to
certain restrictions, the number of shares of Common Stock issued upon the exercise of the option equal to the number of shares of restricted stock surrendered shall be subject to the same restrictions as the restricted stock that was surrendered.

  
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 (c)    Except to the extent the sale and remittance procedure specified
in Paragraph 9(a)(ii)(C) is utilized in connection with the option exercise, payment of the option price for the purchased shares must accompany the Notice of Exercise. 

(d)    Assuming Optionee does not sell the purchased shares of Common Stock on the Exercise Date, as soon as practical
after the Exercise Date, the Company shall either (i) issue to or on behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto, or
(ii) instruct the Company’s transfer agent to make a book-entry reflecting the purchase on its stockholder ledger. 

(e)    In no event may this option be exercised for any fractional shares. 

10.    Financing. The Committee may, in its absolute discretion and without any obligation to do so,
(a) authorize the extension of a full-recourse interest-bearing loan to such Optionee from the Company, (b) permit Optionee to pay the option price for the purchased Common Stock in installments over a period of years or
(c) authorizing a guarantee by the Company of a third-party loan to Optionee. The terms of any loan, installment method of payment or guarantee (including the interest rate and terms of repayment) shall be established by the Committee in its
sole discretion, after taking into account the tax and accounting consequences. The maximum credit available to Optionee shall not exceed the sum of (i) the aggregate option price of the purchased shares (less the par value) plus (ii) any
Federal and state income and employment tax liability incurred by Optionee in connection with the exercise of the option. 

11.    Tax Withholding. The Committee may, in its discretion and upon such terms and conditions as it may
deem appropriate (including the applicable safe-harbor provisions of Securities and Exchange Commission Rule 16b-3 or any successor rule or regulation) provide Optionee (if Optionee is an Employee) with the
election to surrender previously acquired shares of Common Stock or have shares withheld in satisfaction of the tax withholding obligations. To the extent necessary to avoid adverse accounting treatment, the number of shares that may be withheld for
this purpose shall not exceed the minimum number needed to satisfy the applicable income and employment tax withholding rules. If Common Stock is used to satisfy the Company’s tax withholding obligations, the shares of Common Stock shall have
been held by Optionee for the requisite period necessary to avoid a charge to the Company’s reported earnings and shall be valued at their Fair Market Value when the tax withholding is required to be made. 

  
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 12.    Compliance with Laws and Regulations. 

(a)    The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to
compliance by the Company and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange (or the Nasdaq Stock Market, if applicable) on which the Common Stock may be listed for trading
at the time of such exercise and issuance. 
 (b)    The inability of the Company to obtain approval from any
regulatory body having authority deemed by the Company to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Company of any liability with respect to the
non-issuance or sale of the Common Stock as to which such approval shall not have been obtained. The Company, however, shall use reasonable efforts to obtain all such approvals. 

13.    Successors and Assigns. Except to the extent otherwise provided in this Agreement, the provisions of
this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of
this option designated by Optionee. 
 14.    Notices. Any notice required to be given or delivered to the
Company under the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address
indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or three days after deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

15.    Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the terms of the Plan. In the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall
prevail. All decisions of the Committee with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 

16.    Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by
the laws of the State of Delaware without resort to its conflict-of-laws rules. 

17.    No Employment/Service Contract. Nothing in this Agreement or in the Plan shall confer upon Optionee
any right to continue to be a Service Provider of the Company (or any Parent or Subsidiary) for any period of specific duration or otherwise interfere with or restrict in any way the rights of the Company (or such Parent or Subsidiary) or Optionee,
which rights are hereby expressly reserved by each, to terminate Optionee’s Service Provider status at any time and for any reason whatsoever, with or without cause. 

  
 6 

 EXHIBIT A 

NOTICE OF EXERCISE OF STOCK OPTION 

I hereby notify CorVel Corporation (the “Company”) that I,
                                , elect to purchase
                     shares of Common Stock of the Corporation (the “Purchased Shares”) at an option price of
$             per share (the “Option Price”) pursuant to the option (the “Option”) granted to me on
                    . 
 My option was
granted as a non-qualified stock option. I will need to report taxable income at the time I exercise this Option and pay the corresponding withholding tax (the “Withholding Tax”) to the Corporation.
The Withholding Tax is computed on the difference between the Option Price and the Fair Market Value of the stock on the date I exercise the Option. 

Concurrently with the delivery of the Exercise Notice to the Chief Financial Officer of the Corporation, I shall hereby pay to the Corporation
the Option Price and Withholding Tax for the Purchased Shares in accordance with the provisions of my agreement with the Corporation evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a
condition for exercise. 
  

					
		 		 	
			
	   
	 		 	   

	Date	 		 	Optionee’s Signature
			
	If applicable, print name in exact manner it is to appear on the stock certificate:	 		 	   

			
	Optionee’s Mailing Address:	 		 	   

		 		 	 
			
	Address to which certificate is to be sent, if different from address above:	 		 	   

		 		 	 
			
	Brokerage Account Information	 		 	   

	(Broker Name, Contact Info., Account #)	 		 	 
		 		 	 

  
 A-1 

 APPENDIX 

The following definitions shall be in effect under this Agreement: 

A.    Agreement shall mean this Stock Option Agreement. 

B.    Board shall mean the Board of Directors of the Company. 

C.    Common Stock shall mean shares of the Company’s common stock, $0.0001 par value. 

D.    Code shall mean the Internal Revenue Code of 1986, as amended. 

E.    Committee shall mean a committee designated by the Board to administer the Plan, which initially shall
be the compensation committee of the Board. The Committee shall be comprised of at least two directors but not less than such number of directors as shall be required to permit awards granted under the Plan to qualify under Rule 16b-3 under the Securities Act and Section 162(m) of the Code, and each member of the Committee shall be a “Non-Employee Director ” within the meaning
of Rule 16b-3 under the Securities Act and an “Outside Director” within the meaning of Section 162(m) of the Code. 

F.    Company shall mean CorVel Corporation, a Delaware corporation, or any corporate successor which shall
assume the Plan. 
 G.    Corporate Transaction shall mean any of the following transactions for which the
approval of the Company’s stockholders is obtained: 
 (i) a merger or acquisition in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to change the state of the Company’s incorporation, 

(ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company to any entity other than
a parent or subsidiary of the Company, or 
 (iii) any reverse merger in which the Company is the surviving entity but in
which fifty percent (50%) or more of the Company’s outstanding voting stock is transferred to holders different from those who held such fifty percent (50%) or greater interest immediately prior to such merger. 

H.    Employee shall mean an individual for whom the Company or one or more of its Parent or Subsidiaries
reports his or her earnings on a Form W-2. 
 I.    Exercise
Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9. 

  
 A-2 

 J.    Exercise Price shall mean the exercise price per
Option Share as specified in the Grant Notice. 
 K.    Expiration Date shall mean the date on which the
option expires as specified in the Grant Notice. 
 L.    Fair Market Value per share of Common Stock on
any relevant date shall be determined in accordance with the following provisions: 
 (i) If the Common Stock is at the time
listed on the Nasdaq National Market or the Nasdaq Capital Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities
Dealers on the Nasdaq National Market or the Nasdaq Capital Market and published in The Wall Street Journal. 
 (ii)
If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Committee to be the primary
market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. 

(iii) If the Common Stock is not listed on the Nasdaq National Market, Nasdaq Capital Market or a national securities
exchange, the Fair Market Value shall be the average of the closing bid and ask prices of the Common Stock on that day as reported by the Nasdaq bulletin board or any comparable system on that day. 

(iv) If the Common Stock is not traded included in the Nasdaq bulletin board or any comparable system, the Fair Market Value
shall be the average of the closing bid and ask prices on that day as furnished by any member of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 

(v) If the date in question is not a trading day, then the Fair Market Value shall be determined based on prices for the
trading day prior to the date in question. 
 M.    Grant Date shall mean the date of grant of the option
as specified in the Grant Notice. 
 N.    Grant Notice shall mean the Notice of Grant of Stock Option
accompanying this Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 

O.    Misconduct shall mean any of the following: 

(i) Optionee’s intentional misconduct or continuing gross neglect of duties which materially and adversely affects the
business and operations of the Company or any Parent or Subsidiary employing Optionee; 

  
 A-3 

 (ii) Optionee’s unauthorized use or disclosure of (or attempt to use or
disclose) confidential information or trade secrets of the Company or any Parent or Subsidiary; or 
 (iii) Optionee’s
commission of an act involving embezzlement, theft, fraud, falsification of records, destruction of property or commission of a crime or other offense involving money or other property of the Company or any Parent or Subsidiary employing Optionee.

 The reasons for termination of Optionee as a Service Provider set forth in this subparagraph are not intended to be an exclusive list of
all acts or omissions which the Company (or any Parent or Subsidiary) may deem to constitute misconduct or other grounds for terminating Optionee (or any other individual). 

P.    Non-Statutory Option shall mean an option not intended to
satisfy the requirements of Code Section 422. 
 Q.    Notice of Exercise shall mean the notice of
exercise in the form attached hereto as Exhibit A. 
 R.    Option Shares shall mean the number of shares
of Common Stock subject to the option as specified in the Grant Notice. 
 S.    Optionee shall mean the
person to whom the option is granted as specified in the Grant Notice. 
 T.    Parent shall mean any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company, provided each such corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

U.    Permanent Disability shall have the meaning assigned to “permanent and total disability” as
set forth in Code Section 22(e)(3). 
 V.    Plan shall mean the CorVel Corporation Restated Omnibus
Incentive Plan (Formerly The Restated 1988 Executive Stock Option Plan). 
 W.    Securities Act shall
mean the Securities Act of 1933, as amended. 
 X.    Service Provider shall mean an individual who
renders service on a periodic basis to the Company, its Parent and/or any of its Subsidiaries as an Employee, a non-Employee member of the board of directors or a consultant or independent advisor. 

Y.    Stock Exchange shall mean the American Stock Exchange or the New York Stock Exchange, or any other
national stock exchange. 

  
 A-4 

 Z.    Subsidiary shall mean any corporation (other than
the Company) in an unbroken chain of corporations beginning with the Company, provided such corporation (other than the last corporation in the unbroken chain) owns, at the time of determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain. For purposes of all Non-Statutory Option grants under the Plan and all Corporate Transaction provisions of
the Plan, the term “Subsidiary” shall also include any partnership, joint venture or other business entity of which the Company owns, directly or indirectly through another entity, more than a fifty percent (50%) interest in voting power,
capital or profits. 

  
 A-5 

			
	 Notice of Grant of Stock Options
 and
Option Agreement
	  	 CorVel Corporation
 ID: 33-0282651

2010 Main Street Suite 600
 Irvine, California 92614

 You have been granted an option to acquire CorVel Corporation (the “Corporation”) common stock (the “Common
Stock”) as follows: 
  

					
	 Non-Qualified Stock Option Grant No.
	  	 	00	 
	 Date of Grant
	  			
	 Stock Option Plan
	  	 	1988	 
	 Option Price Per Share
	  	$	                 	 
	 Total Number of Shares Granted
	  			
	 Total Price of Shares Granted
	  	$	000000.00	 
	 Expiration Date
	  			

 Provided you continue to be a Service Provider (as defined in the Stock Option Agreement attached hereto as Exhibit A)
throughout the specified period, the Option will become exercisable with respect to (i) 25% of the Optioned Shares one year from the Grant Date, and (ii) the balance of the Optioned Shares in a series of equal monthly installments for each
complete month of service over the 3 year period thereafter. Optionee (and Optionee’s spouse) hereby agree(s) that the option is granted pursuant to and in accordance with the express terms and conditions of the Stock Option Agreement and
the Corporation’s Restated Omnibus Incentive Plan (formerly the 1988 Executive Stock Option Plan, which is described in the Plan Summary and Prospectus attached hereto as Exhibit B). 

 

					
	   
	 		 	   

	CorVel Corporation	 		 	Date
			
	   
	 		 	   

	Optionee	 		 	Date
			
	   
	 		 	   

	Spouse	 		 	Date
	  
	 		 	  

 APPENDIX A 

NOTICE OF EXERCISE OF STOCK OPTION 

I hereby notify CorVel Corporation (the “Company”) that I,
                                , elect to purchase
                    shares of Common Stock of the Corporation (the “Purchased Shares”) at an option price of
$             per share (the “Option Price”) pursuant to the option (the “Option”) granted to me on
                    . 
 My option was
granted as a non-qualified stock option. I will need to report taxable income at the time I exercise this Option and pay the corresponding withholding tax (the “Withholding Tax”) to the Corporation.
The Withholding Tax is computed on the difference between the Option Price and the Fair Market Value of the stock on the date I exercise the Option. 

Concurrently with the delivery of the Exercise Notice to the Chief Financial Officer of the Corporation, I shall hereby pay to the Corporation
the Option Price and Withholding Tax for the Purchased Shares in accordance with the provisions of my agreement with the Corporation evidencing the Option and shall deliver whatever additional documents may be required by such agreement as a
condition for exercise. 
  

					
		 		 	
			
	   
	 		 	   

	Date	 		 	Optionee’s Signature
			
	If applicable, print name in exact manner it is to appear on the stock certificate:	 		 	   

			
	Optionee’s Mailing Address:	 		 	   

		 		 	 
			
	Address to which certificate is to be sent, if different from address above:	 		 	   

		 		 	 
			
	Brokerage Account Information	 		 	   

	(Broker Name, Contact Info., Account #)Exhibit 10.2

 

PENN NATIONAL GAMING, INC.

 

NOTICE OF AWARD OF RESTRICTED STOCK

 

The purpose of this Notice is to inform you that an Award of Restricted Stock of Penn National Gaming, Inc. (the “Company”) has been made to you pursuant to the Penn National Gaming, Inc. 2018 Long Term Incentive Compensation Plan, as amended, as follows:

 

	
Name and Address
    	
 
    
	
of Grantee:
    	
 
    
	
 
    	
 
    
	
Date of Grant:
    	
 
    
	
 
    	
 
    
	
Type of Grant:
    	
Restricted Stock Award
    
	
 
    	
 
    
	
Number of shares:
    	
 
    
	
 
    	
 
    
	
Lapse of Forfeiture
   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             [1st anniversary of Date of Grant]
    
	
 
    	
           shares   on             [2nd anniversary of Date of Grant]
    
	
 
    	
           shares   on             [3rd anniversary of Date of Grant]
    
	
 
    	
 
    
	
 
    	
           OR
    
	
 
    	
 
    
	
 
    	
           shares   on             [4th anniversary of Date of Grant]
    
	
 
    	
           shares   on             [5th anniversary of Date of Grant]
    

 

 

The Award is subject to all the terms and conditions of the Penn National Gaming, Inc. 2018 Long Term Incentive Compensation Plan, as amended, which is available upon request, and the Award Agreement attached hereto.

 

	
 
    	
 
    	
 
    	
GRANTEE
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
PENN   NATIONAL GAMING, INC.
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    
	
 
    	
 
    	
 
    	
Title:
    

 

 

PENN NATIONAL GAMING, INC.

RESTRICTED STOCK AWARD AGREEMENT

 

All Restricted Stock is subject to the provisions of the 2018 Long Term Incentive Compensation Plan, as amended, (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 Award specified in the attached Notice.  Different terms may apply to any prior or future awards under the Plan.

 

I.                                        PAYMENT FOR SHARES

 

There is no exercise price or other payment required from you in exchange for this Restricted Stock Award.

 

II.                                   FORFEITURE RESTRICTIONS/LAPSE OF RESTRICTIONS

 

This Restricted Stock Award is subject to forfeiture until lapse of such forfeiture restrictions as set forth below.  The lapse of such forfeiture restrictions means that the Common Stock subject to the Award shall, thereafter, be fully transferable by you, subject to compliance with Section VIII of this Award Agreement.  Until the lapse of such forfeiture restrictions you may not sell, transfer, pledge or otherwise dispose of the shares of Common Stock subject to this Restricted Stock Award.

 

The forfeiture restrictions on this Restricted Stock Award shall lapse in [25% installments on each of the first, second, third and fourth anniversaries of the Date of Grant] OR [33.33% installments on each of the first, second and third anniversaries of the Date of Grant] OR [50% installments on each of the fourth and fifth anniversaries of the Date of Grant].

 

In addition, the forfeiture restrictions on this Restricted Stock Award shall lapse in their entirety as of the occurrence of any of the following events:

 

A.                                    Your service as an Employee or Director of the Company, as applicable, terminates because of your death or Disability; or

 

B.                                    A Change of Control (as defined in the Plan) occurs.

 

There are no additional events or occurrences that shall lead to lapse of any forfeiture restrictions on this Award.

 

III.                              FORFEITURE

 

If your service as an Employee or Director of the Company, as applicable, terminates for any reason (except as otherwise provided for in the Plan or this Award Agreement), then all of the Restricted Stock that remains subject to forfeiture restrictions at such time shall be cancelled and

 

 

forfeited.  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 Award, your service as an Employee or Director, as applicable, 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 service in the applicable capacity.

 

V.                                    STOCK CERTIFICATES

 

The Restricted Stock, or any part thereof, may be represented by certificates or may be notated in the form of uncertificated shares.  The rights and obligations of the holder of shares represented by a certificate and the rights and obligations of the holder of uncertificated shares of the same class and series shall be identical.  During the Restricted Period the shares underlying this Restricted Stock Award will be held for you by the Company.  After the lapse of any applicable forfeiture restrictions, the shares of Common Stock will be released to you in the form of a stock certificate or uncertificated shares at your option.

 

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 the lapse of forfeiture restrictions.  Dividends with respect to your Restricted Stock will be paid on the same date or dates that dividends are payable on the Common Stock to Company shareholders generally.

 

VII.                          WITHHOLDING TAXES

 

No stock certificate or other evidence of shares of Common Stock will be released or issued to you unless you have made arrangements, acceptable to the Company, to pay any withholding taxes that may be due as a result of the lapse of the forfeiture restrictions.  In accordance with the Plan, you are authorized to make payment of any such withholding tax in cash, by payroll deduction, by authorizing the Company to withhold shares of Common Stock from this Award or by surrendering to the Company shares of Common Stock that you already own.  In the event you elect to authorize the Company to withhold shares of Common Stock from this Award, you can only authorize the retention of shares of Common Stock equal to the minimum tax withholding obligation.  The Fair Market Value of the shares of Common Stock retained by the Company or surrendered by you shall be determined in accordance with the Plan as of the date the tax obligation arises.

 

VIII.                     RESTRICTIONS ON RESALE

 

You may not to sell any shares of Common Stock free from the forfeiture restrictions of this Award at a time when applicable laws or Company policies would prohibit a sale.  This restriction will apply as long as you are an Employee or Director of the Company, as applicable.

 

 

IX.                              NO RIGHT TO CONTINUED SERVICE

 

This Restricted Stock Award 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 the Common Stock, the number of shares of Restricted Stock that remain subject to forfeiture will be adjusted accordingly.

 

XI.                              APPLICABLE LAW

 

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

 

XII.                         ENTIRE AGREEMENT/AMENDMENT

 

The text of the Plan is incorporated in this Award Agreement by reference.

 

This Award Agreement and the Plan constitute the entire understanding between you and the Company regarding this Award.  Any prior agreements, commitments or negotiations concerning this Award are superseded.  This Award Agreement may be amended in a way that is adverse to you or your beneficiaries only by another written agreement, signed by both parties, otherwise, the rights of the Board or Grantor as set forth in the Plan control as to any modification, alteration or amendment of this Award Agreement.

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