Document:

Exhibit 10.12(a)

 

COMMENCEMENT AGREEMENT

 

THIS COMMENCEMENT AGREEMENT
(the “Agreement”) made this day 21st of May 2002, between Penn National Gamming, Inc.,
hereinafter, called “Tenant”, having its principal place of business at 825
Berkshire Boulevard, Suite 200, Wyomissing, PA 19610 and Wyomissing Professional Center, II, LIMITED
PARTNERSHIP hereinafter called “Landlord”, having its principal
place of business at 825 Berkshire Blvd, Suite 203 Wyomissing,
Pennsylvania 19610.

 

WITNESETH:

 

The Tenant and the Landlord have executed a
Lease Agreement, which includes Exhibits “A”, “B”, “C”, and “F”, relating to
the Leased Premises located at 855 Berkshire Boulevard, Suite 100,
Wyomissing, Pennsylvania 19610.

 

NOW,
THEREFORE, INTENDING TO BE LEGALLY BOUND HEREBY and
in consideration of the mutual covenants set forth herein, the Landlord, and
Tenant agree as follows:

 

1.                                       Incorporation. 
The recitals set forth above are incorporated herein by reference.

 

2.                                       Amendment. 
This Agreement is an amendment to and shall be deemed an integral part
of the Lease except to the extent to which the provisions of this Agreement
modify the provisions of the Lease. The provisions of the Lease shall remain in
full force and effect.

 

3.                                       Defined Terms. All capitalized terms used in
this Agreement without definition which are defined in the Lease shall have the
meanings set forth in the Lease.

 

4.             Commencement Date. 
Commencement date for Tenant’s space shall be May 21, 2002.

 

5.             Term of Lease. Term of Lease is ten (10) years and eleven (11) days,
starting May 21, 2002 and ending May 31, 2012.

 

6.             Binding effect. This Amendment shall be binding upon, and shall inure to
the benefit of, Landlord and Tenant, and their respective successors and
assigns.

 

IN WITNESS WHEREOF, and intending to be
legally bound hereby, Landlord and Tenant have caused this Commencement
Agreement to be duly executed this 23rd day of May 2002.

 

 

THIS AGREEMENT MUST BE EXECUTED FOR TENANT,
IF A CORPORATION, BY THE PRESIDENT OR VICE PRESIDENT AND ATTESTED BY THE SECRETARY
OR ASSISTANT SECRETARY, UNLESS THE BY-LAWS OR A RESOLUTION OF THE BOARD OF
DIRECTORS SHALL OTHERWISE PROVIDE, IN WHICH EVENT A CERTIFIED COPY OF THE
BY-LAWS OR RESOLUTION, AS THE CASE MAY BE, MUST BE FURNISHED TO LANDLORD.

 

 

	
   

  	
  LANDLORD: 

  
	
   

  	
   

  
	
   

  	
  WYOMISSING
  PROFESSIONAL CENTER II,

  LIMITED PARTNERSHIP, by its General

  Partner, The Wyomissing Professional Center II

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen J. Najarian 

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 
  Stephen J. Najarian 

  
	
   

  	
   

  	
   

  	
  Title: 
  President 

  
	
   

  	
   

  
	
   

  	
  Date:  May 24, 2002

  
	
   

  	
   

  	
   

  
					

 

	
  ATTEST:

  	
   

  	
  TENANT:

  

 

	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Susan M. Montgomery

  	
   

  	
   

  	
  By:

  	
  /s/ Robert S. Ippolito

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: 
  Office Manager/Asst to Chairman

  	
   

  	
  Title: Vice President/Secretary/Treasurer

  
	
   

  	
   

  	
   

  
	
  Date: 
  May 23, 2002

  	
   

  	
  Date: May 23, 2002

  
							

 

2Exhibit 10.12(b)

 

FIRST LEASE AMENDMENT

 

THIS LEASE
AMENDMENT (the “Amendment”) made this 4th day of
December, 2002, between Penn National Gaming,
hereinafter, called “Tenant”, having its principal place of business
at 825 Berkshire Boulevard, Suite 200, Wyomissing, Pennsylvania 19610 and Wyomissing Professional Center II, Limited Partnership
hereinafter called “Landlord”, having its principal place of
business at 825 Berkshire Boulevard., Suite 203, Wyomissing, Pennsylvania
19610.

 

WITNESSETH:

 

The Tenant and the Landlord have executed a
Lease Agreement dated January 25, 2002 which includes Exhibits “A”, “B”, “C”,
“E” and “F”, relating to the Leased Premises located at 855 Berkshire Blvd., Suite 200,
Wyomissing, Pennsylvania 19610.

 

NOW, THEREFORE, INTENDING TO BE LEGALLY BOUND
HEREBY and in consideration of the mutual
covenants set forth herein, the Landlord, and Tenant agree as follows:

 

1.                                      Incorporation.  The recitals set forth above are incorporated herein by
reference.

 

2.                                      Amendment.  This Amendment is an amendment to and shall be deemed an
integral part of the Lease except to the extent to which the provisions of this
Amendment modify the provisions of the Lease. 
The provisions of the Lease shall remain in full force and effect.

 

3.                                      Defined Terms.  All capitalized terms used in this Amendment without
definition which are defined in the Lease shall have the meanings set forth in
the Lease.

 

4.                                      Leased Premises.  The floor area of the leased premises is increased by 5,521
rentable square feet from 4,388 square feet of rentable floor area to 9,909
square feet of rentable floor area.  All
Lease calculations, pro rations and charges based on rentable square feet shall
be changed accordingly.

 

5.                                      Fixed Annual Minimum Rent:  As per attached Attachment Al-1.

 

6.                                      Effective Date.  The effective date for Tenant’s increased space and rental
payments shall be March 1, 2003 or ten (10) days from the completion
of the construction to be performed by Landlord’s contractor as per Attachment
Al -2 attached hereto, whichever is sooner.

 

7.                                      Term of Lease.  The Term of Lease is unchanged ending May 31, 2012.

 

8.                                      Binding effect.  This Amendment shall be binding upon, and shall inure to the
benefit of, Landlord and Tenant, and their respective successors and assigns.

 

 

IN WITNESS WHEREOF, and intending to be
legally bound hereby, Landlord and Tenant have caused this Amendment of Lease
Terms to be duly executed this 4th day
of December, 2002.

 

THIS LEASE AMENDMENT MUST BE EXECUTED FOR
TENANT, IF A CORPORATION, BY THE PRESIDENT OR VICE PRESIDENT AND ATTESTED BY
THE SECRETARY OR ASSISTANT SECRETARY, UNLESS THE BY-LAWS OR A RESOLUTION OF THE
BOARD OF DIRECTORS SHALL OTHERWISE PROVIDE, IN WHICH EVENT A CERTIFIED COPY OF
THE BY-LAWS OR RESOLUTION, AS THE CASE MAY BE, MUST BE FURNISHED TO
LANDLORD.

 

	
   

  	
  LANDLORD:

  	
   

  
	
   

  	
   

  
	
   

  	
  WYOMISSING PROFESSIONAL CENTER II,

  LIMITED PARTNERSHIP, by its General

  Partner, Wyomissing Professional Center II, Inc. 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen
  J. Najarian 

  	
   

  
	
   

  	
   

  	
      Stephen
  J. Najarian, President 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:  December 4, 2002 

  
	
   

  	
   

  
	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PENN NATIONAL GAMING, INC., a

  
	
  ATTEST:

  	
   

  	
  Pennsylvania
  corporation

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Susan
  M. Montgomery

  	
   

  	
   

  	
  By:

  	
  /s/ Robert
  S. Ippolito

  	
   

  
	
  Name:  Susan M. Montgomery

  	
   

  	
  Name:  Robert S. Ippolito

  
	
  Title:  Assistant to Chairman

  	
   

  	
  Title:  Vice President/Secretary/Treasurer

  
	
  Date:  December 4, 2002

  	
   

  	
  Date:  December 4, 2002

  
									

 

 

ATTACHMENT A1-1

 

FIXED ANNUAL MINIMUM RENT

 

	
  Rentable SF:

  	
   

  	
  9,909

  	
   

  
	
  Starting Rate PRSF:

  	
   

  	
  $

  	
  13.00

  	
   

  
	
  Annual Escalation:

  	
   

  	
  2.0

  	
  %

  
					

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Annual Rent

  	
   

  
	
  Lease Year/

  	
   

  	
  Rentable

  	
   

  	
  Minimum Rent per

  	
   

  	
   

  	
   

  	
  (the “Annual

  	
   

  
	
  Period

  	
   

  	
  Sq.Ft .

  	
   

  	
  Rentable Sq. Ft.

  	
   

  	
  Monthly Rent

  	
   

  	
  Minimum Rent”)

  	
   

  
	
  3/1/03-5/31/03

  	
   

  	
  9,909

  	
   

  	
  $

  	
  13.00

  	
   

  	
  $

  	
  10,734.75

  	
   

  	
  $

  	
  32,204.25

  	
   

  
	
  Lse Yr 2

  	
   

  	
  9,909

  	
   

  	
  $

  	
  13.26

  	
   

  	
  $

  	
  10,949.45

  	
   

  	
  $

  	
  131,393.34

  	
   

  
	
  Lse Yr 3

  	
   

  	
  9,909

  	
   

  	
  $

  	
  13.53

  	
   

  	
  $

  	
  11,168.43

  	
   

  	
  $

  	
  134,021.21

  	
   

  
	
  Lse Yr 4

  	
   

  	
  9,909

  	
   

  	
  $

  	
  13.80

  	
   

  	
  $

  	
  11,391.80

  	
   

  	
  $

  	
  136,701.63

  	
   

  
	
  Lse Yr 5

  	
   

  	
  9,909

  	
   

  	
  $

  	
  14.07

  	
   

  	
  $

  	
  11,619.64

  	
   

  	
  $

  	
  139,435.66

  	
   

  
	
  Lse Yr 6

  	
   

  	
  9,909

  	
   

  	
  $

  	
  14.35

  	
   

  	
  $

  	
  11,852.03

  	
   

  	
  $

  	
  142,224.38

  	
   

  
	
  Lse Yr 7

  	
   

  	
  9,909

  	
   

  	
  $

  	
  14.64

  	
   

  	
  $

  	
  12,089.07

  	
   

  	
  $

  	
  145,068.86

  	
   

  
	
  Lse Yr 8

  	
   

  	
  9,909

  	
   

  	
  $

  	
  14.93

  	
   

  	
  $

  	
  12,330.85

  	
   

  	
  $

  	
  147,970.24

  	
   

  
	
  Lse Yr 9

  	
   

  	
  9,909

  	
   

  	
  $

  	
  15.23

  	
   

  	
  $

  	
  12,577.47

  	
   

  	
  $

  	
  150,929.65

  	
   

  
	
  Lse Yr 10

  	
   

  	
  9,909

  	
   

  	
  $

  	
  15.54

  	
   

  	
  $

  	
  12,829.02

  	
   

  	
  $

  	
  153,948.24

  	
   

  

 

Notes:

1)                                      The first amount shown in the Annual Rent
column for the period 3/1/03 to 5/31/03 is for that three (3) month period
only, the remaining amounts shown in that column are for the 12 month Lease
Year periods indicated.

2)                                      Monthly Rent shall be pro rated for a partial
month occupancy.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]