Document:

Exhibit 10.1

 

 

Deferred Compensation Plan

 

Amended and Restated 
 Effective April 4, 2013

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 1
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
Selection, Enrollment, Eligibility
    	
8
    
	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Selection   by Committee
    	
8
    
	
 
    	
2.2
    	
Enrollment   Requirements
    	
8
    
	
 
    	
2.3
    	
Eligibility;   Commencement of Participation
    	
8
    
	
 
    	
2.4
    	
Termination   of Participation and/or Deferrals
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
Deferral Commitments/Company Contribution/Crediting/Taxes
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Minimum   Deferrals
    	
9
    
	
 
    	
3.2
    	
Maximum   Deferral
    	
9
    
	
 
    	
3.3
    	
Election   to Defer; Effect of Election Form
    	
9
    
	
 
    	
3.4
    	
Withholding   of Annual Deferral Amounts
    	
10
    
	
 
    	
3.5
    	
Annual   Company Contribution Amount
    	
10
    
	
 
    	
3.6
    	
Rollover   Amount
    	
10
    
	
 
    	
3.7
    	
Investment   of Trust Assets
    	
11
    
	
 
    	
3.8
    	
Vesting
    	
11
    
	
 
    	
3.9
    	
Crediting/Debiting   of Account Balances
    	
12
    
	
 
    	
3.10
    	
FICA   and Other Taxes
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
Unforeseeable Emergencies
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.1
    	
Scheduled   Distributions
    	
14
    
	
 
    	
4.2
    	
Other   Benefits Take Precedence Over Scheduled Distributions
    	
15
    
	
 
    	
4.3
    	
Suspensions   for Unforeseeable Emergencies
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
Retirement Benefit
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.1
    	
Retirement   Benefit
    	
15
    
	
 
    	
5.2
    	
Payment   of Retirement Benefit
    	
15
    
	
 
    	
5.3
    	
Death   Prior to Completion of Retirement Benefit
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
Pre-Retirement Survivor Benefit
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.1
    	
Pre-Retirement   Survivor Benefit
    	
16
    
	
 
    	
6.2
    	
Payment   of Pre-Retirement Survivor Benefit
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
Termination Benefit
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
7.1
    	
Termination   Benefit
    	
17
    
	
 
    	
7.2
    	
Payment   of Termination Benefit
    	
17
    
					

 

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ARTICLE 8
    	
Disability Waiver and Benefit
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
Disability   Waiver
    	
17
    
	
 
    	
8.2
    	
Disability;   Continued Eligibility
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
Change In Control Benefit
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.1
    	
Change   In Control Benefit
    	
18
    
	
 
    	
9.2
    	
Payment   of Change In Control Benefit
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 10 
    	
Beneficiary Designation
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.1
    	
Beneficiary
    	
18
    
	
 
    	
10.2
    	
Beneficiary   Designation; Change
    	
19
    
	
 
    	
10.3
    	
Acknowledgment
    	
19
    
	
 
    	
10.4
    	
No   Beneficiary Designation
    	
19
    
	
 
    	
10.5
    	
Doubt   as to Beneficiary
    	
19
    
	
 
    	
10.6
    	
Discharge   of Obligations
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 11 
    	
Leave of Absence
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
11.1
    	
Paid   Leave of Absence
    	
19
    
	
 
    	
11.2
    	
Unpaid   Leave of Absence
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 12 
    	
Termination, Amendment or Modification
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
12.1
    	
Termination
    	
20
    
	
 
    	
12.2
    	
Amendment
    	
21
    
	
 
    	
12.3
    	
Plan   Agreement
    	
21
    
	
 
    	
12.4
    	
Effect   of Payment
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 13 
    	
Administration
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
13.1
    	
Committee   Duties
    	
21
    
	
 
    	
13.2
    	
Administration   Upon Change In Control
    	
21
    
	
 
    	
13.3
    	
Agents
    	
22
    
	
 
    	
13.4
    	
Binding   Effect of Decisions
    	
22
    
	
 
    	
13.5
    	
Indemnity   of Committee
    	
22
    
	
 
    	
13.6
    	
Employer   Information
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 14 
    	
Other Benefits and Agreements
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
14.1
    	
Coordination   with Other Benefits
    	
23
    

 

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ARTICLE 15 
    	
Claims Procedures
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
15.1
    	
Presentation   of Claim
    	
23
    
	
 
    	
15.2
    	
Notification   of Decision
    	
23
    
	
 
    	
15.3
    	
Review   of a Denied Claim
    	
24
    
	
 
    	
15.4
    	
Decision   on Review
    	
24
    
	
 
    	
15.5
    	
Legal   Action
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 16 
    	
Trust
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
16.1
    	
Establishment   of the Trust
    	
25
    
	
 
    	
16.2
    	
Interrelationship   of the Plan and the Trust
    	
25
    
	
 
    	
16.3
    	
Distributions   From the Trust
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 17 
    	
Miscellaneous
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
17.1
    	
Status   of Plan
    	
25
    
	
 
    	
17.2
    	
Unsecured   General Creditor
    	
26
    
	
 
    	
17.3
    	
Employer’s   Liability
    	
26
    
	
 
    	
17.4
    	
Nonassignability
    	
26
    
	
 
    	
17.5
    	
Not   a Contract of Employment
    	
26
    
	
 
    	
17.6
    	
Furnishing   Information
    	
26
    
	
 
    	
17.7
    	
Terms
    	
26
    
	
 
    	
17.8
    	
Captions
    	
27
    
	
 
    	
17.9
    	
Governing   Law
    	
27
    
	
 
    	
17.10
    	
Notice
    	
27
    
	
 
    	
17.11
    	
Successors
    	
27
    
	
 
    	
17.12
    	
Spouse’s   Interest
    	
27
    
	
 
    	
17.13
    	
Validity
    	
27
    
	
 
    	
17.14
    	
Incompetent
    	
28
    
	
 
    	
17.15
    	
Distribution   in the Event of Taxation
    	
28
    
	
 
    	
17.16
    	
Insurance
    	
29
    
	
 
    	
17.17
    	
Legal   Fees To Enforce Rights After Change in Control
    	
29
    
	
 
    	
17.18
    	
Domestic   Relations Orders
    	
29
    
	
 
    	
17.19
    	
Section 409A   of the Code
    	
29
    

 

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PENN NATIONAL GAMING, INC. 
 Deferred Compensation Plan 
 Amended and Restated 
 Effective April 4, 2013

 

Purpose

 

The purpose of this Plan is to provide specified deferred compensation benefits to a select group of management and highly compensated Employees who contribute materially to the continued growth, development and future business success of Penn National Gaming, Inc., a Pennsylvania corporation, and its subsidiaries and affiliates, if any, that participate in this Plan. This Plan is unfunded for tax purposes and for purposes of Title I of ERISA.

 

ARTICLE 1
 Definitions

 

For purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms have the following indicated meanings:

 

1.1          “Account” means the account established for each Participant in the Plan.

 

1.2                               “Account Balance” means, with respect to a Participant, a credit on the records of the Employer equal to the sum of (a) the Deferral Account balance, (b) the Company Contribution Account balance and (c) the Rollover Account balance. The Account Balance will be a bookkeeping entry only and will be used solely to measure and determine the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan.

 

1.3                               “Annual Bonus” means any compensation, in addition to Base Annual Salary, relating to services performed during any calendar year, whether or not paid in that calendar year or included on the Federal Income Tax Form W-2 for that calendar year, payable to a Participant as an Employee under any Employer’s annual bonus and cash incentive plans, excluding Stock options, restricted Stock or any other Stock awards.

 

1.4                               “Annual Company Contribution Amount” means, for any one Plan Year, the amount determined in accordance with Section 3.5.

 

1.5                               “Annual Deferral Amount” means that portion of a Participant’s Base Annual Salary and Annual Bonus that a Participant elects to defer, and is deferred, in accordance with Article

 

 

3, for any one Plan Year. In the event of a Participant’s Retirement, Disability (if deferrals cease in accordance with Section 8.1), death, or a Separation from Service before the end of a Plan Year, that year’s Annual Deferral Amount will be the actual amount withheld prior to that event.

 

1.6                               “Annual Installment Method” means annual installment payments over the number of years selected by the Participant in accordance with this Plan. The Account Balance of the Participant will be calculated as of the close of business on or around the Participant’s Benefit Distribution Date. The annual installment will be calculated by multiplying this balance by a fraction, the numerator of which is one, and the denominator of which is the remaining number of annual payments due the Participant. By way of example, if the Participant elects a 10-year Annual Installment Method, the first payment will be 1/10 of the Account Balance, calculated as described in this definition. The following year, the payment will be 1/9 of the Account Balance, calculated as described in this definition. Each annual installment shall be calculated and paid on or around the anniversary of the Participant’s Benefit Distribution Date.

 

1.7                               “Base Annual Salary” means the annual cash compensation relating to services performed during any calendar year, whether or not paid in that calendar year or included on the Federal Income Tax Form W-2 for that calendar year, excluding bonuses, commissions, overtime, fringe benefits, Stock options or other Stock awards, relocation expenses, incentive payments, non-monetary awards, directors fees and other fees, automobile and other allowances paid to a Participant for employment services rendered (whether or not such allowances are included in the Employee’s gross income). Base Annual Salary will be calculated before reduction for compensation voluntarily deferred or contributed by the Participant pursuant to any qualified or non-qualified plans of any Employer and will be calculated to include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 402(e)(3), 402(h) and 132(f)(4), pursuant to plans established by any Employer; provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been payable in cash to the Employee.

 

1.8                               “Beneficiary” means, with respect to a Participant, one or more persons, trusts, estates or other entities, designated in accordance with Article 10, that are entitled to receive benefits under this Plan upon the Participant’s death.

 

1.9                               “Beneficiary Designation Form” means the form established from time to time by the Committee that a Participant completes, signs, and returns to the Committee to designate one or more Beneficiaries.

 

1.10                        “Benefit Distribution Date” means the date upon which all or an objectively determinable portion of a Participant’s vested benefits will become eligible for distribution. Except as otherwise provided in the Plan, a Participant’s Benefit Distribution Date shall be

 

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determined based on the earliest to occur of an event or scheduled date set forth in Articles 4 through 9, as applicable.

 

1.11                        “Board” means the board of directors of the Company.

 

1.12                        “Change in Control” means any of the following events:

 

(a)                                 The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, the “Act”) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Act) of fifty percent (50%) or more of either (1) the then outstanding shares of the Company (the “Outstanding Company Shares”) or (2) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this Subsection (a), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company; (B) any acquisition by the Company; (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or (D) any acquisition pursuant to a transaction which complies with clauses (1), (2) and (3) of Subsection (c) below; or

 

(b)                                 Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company; or

 

(c)                                  Consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another entity (each, a “Corporate Transaction”), in each case, unless, following such Corporate Transaction, (1) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Shares and Outstanding Company Voting Securities immediately prior to such Corporate Transaction beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then outstanding shares and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation or other entity resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction of the Outstanding Company Shares and Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any employee benefit plan or related trust of the Company or such corporation resulting from such Corporate Transaction) beneficially owns, directly

 

3

 

or indirectly, twenty percent (20%) or more of, respectively, the then outstanding shares of the corporation resulting from such Corporate Transaction or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership of the Company existed prior to the Corporate Transaction and (3) at least a majority of the members of the board of directors of the corporation (or other governing board of a non-corporate entity) resulting from such Corporate Transaction were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Corporate Transaction; or

 

(d)                                 Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds (2/3) of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.

 

Each of the foregoing events shall only be deemed to be a Change in Control for purposes of Article 9 of the Plan to the extent such event qualifies as a “change in control event” for purposes of Section 409A of the Code and the regulations issued thereunder.

 

1.13                        “Claimant” has the meaning set forth in Section 15.1.

 

1.14                        “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

1.15                        “Committee” means the committee described in Article 13.

 

1.16                        “Company” means Penn National Gaming, Inc., a Pennsylvania corporation, and any successor to all or substantially all of the Company’s assets or business.

 

1.17                        “Company Contribution Account” means (a) the sum of the Participant’s Annual Company Contribution Amounts, plus (b) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant’s Company Contribution Account, less (c) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant’s Company Contribution Account.

 

4

 

1.18                        “Compensation” means all cash remuneration paid to the Employee by the Company which is required to be reported as compensation on the Employee’s Form W-2 and shall also include compensation which is not currently includible in gross income by reason of the application of Code Sections 125, 402(e)(3), 132(f)(4) and 402(h)(1)(B); provided, however, that Compensation shall not include any income recognized as a result of an Employee exercising a nonqualified Stock option.

 

1.19                        “Deduction Limitation” means the following described limitation on a benefit that may otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise provided herein, this limitation will be applied to all distributions that are “subject to the Deduction Limitation” under this Plan. If an Employer determines in good faith prior to a Change in Control that there is a reasonable likelihood that any compensation paid to a Participant for a taxable year of the Employer would not be deductible by the Employer solely by reason of the limitation under Code Section 162(m), then to the extent deemed necessary by the Employer to ensure that the entire amount of any distribution to the Participant pursuant to this Plan prior to the Change in Control is deductible, to the extent permitted by Treas. Reg. § 1.409A-2(b)(7)(i), the Employer may defer all or any portion of a distribution under this Plan. Any amounts deferred pursuant to this limitation will continue to be credited/debited with additional amounts in accordance with Section 3.9 even if the amount is being paid out in installments. The amounts so deferred and amounts credited thereon shall be distributed to the Participant or his or her Beneficiary (in the event of the Participant’s death) at the earliest possible date, as determined by the Employer in good faith, on which the deductibility of compensation paid or payable to the Participant for the taxable year of the Employer during which the distribution is made will not be limited by Section 162(m), or if earlier, the effective date of a Change in Control. Notwithstanding anything to the contrary in this Plan, the Deduction Limitation will not apply to any distributions made after a Change in Control.

 

1.20                        “Deferral Account” means (a) the sum of all of a Participant’s Annual Deferral Amounts, plus (b) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant’s Deferral Account, less (c) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to his or her Deferral Account.

 

1.21                        “Disability” means that a Participant is either (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident or health plan covering employees of the Company. A Participant shall be deemed to have a Disability if determined to be disabled in accordance with the terms of the applicable long-term disability insurance

 

5

 

program maintained by the Participant’s Employer, provided that the definition of “disability” applied under such long-term disability insurance program complies with the requirements of this Section. Determinations relating to the existence of a Disability shall be made by the Committee, in its sole discretion.

 

1.22                        “Disability Benefit” means the benefit described in Article 8.

 

1.23                        “Effective Date” means April 4, 2013. The Plan was originally effective as of January 1, 2005.

 

1.24                        “Election Form” means the form established from time to time by the Committee that a Participant completes, signs, and returns to the Committee to make an election under the Plan.

 

1.25                        “Employee” means a person who is an employee of any Employer.

 

1.26                        “Employer(s)” means the Company and any of its subsidiaries or affiliates (now in existence or subsequently formed or acquired) that have been selected by the Board to participate in the Plan and that have adopted the Plan as a participating Employer. A list of the Employers is set forth in Appendix A hereto.

 

1.27                        “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

1.28                        “Measurement Fund” means those certain mutual funds selected by the Committee for the purpose of determining the value of a Participant’s Account Balance.

 

1.29                        “Participant” means any Employee (a) who is selected to participate in the Plan, (b) who elects to participate in the Plan; (c) who signs a Plan Agreement, an Election Form, and a Beneficiary Designation Form; (d) whose signed Plan Agreement, Election Form and Beneficiary Designation Form are accepted by the Committee; (e) who commences participation in the Plan; and (f) whose Plan Agreement has not terminated.

 

1.30                        “Plan” means the Penn National Gaming, Inc. Deferred Compensation Plan, as evidenced by this instrument and by each Plan Agreement, as they may be amended from time to time.

 

1.31                        “Plan Agreement” means a written agreement, as amended from time to time, that is entered into by and between an Employer and a Participant. Each Plan Agreement executed by a Participant and the Participant’s Employer will provide for the entire benefit to which the Participant is entitled under the Plan. If there is more than one Plan Agreement, the Plan Agreement bearing the latest date of acceptance by the Employer will supersede all previous Plan Agreements in their entirety and will govern the Participant’s entitlement to benefits under the Plan. The terms of any Plan Agreement may be different for any

 

6

 

Participant, and any Plan Agreement may provide additional benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan; provided, however, that any such additional benefits or benefit limitations must be agreed to by both the Employer and the Participant.

 

1.32                        “Plan Year” means, except as provided in Section 1.46, the calendar year.

 

1.33                        “Pre-Retirement Survivor Benefit” means the benefit set described in Article 6.

 

1.34                        “Retirement,” “Retire(s)” or “Retired” means, with respect to an Employee, termination of employment from all Employers for any reason other than a leave of absence, death, or Disability on or after the attainment of age sixty-five (65).

 

1.35                        “Retirement Benefit” means the benefit in Article 5.

 

1.36                        “Rollover Account” means (a) the sum of a Participant’s Rollover Amount, plus (b) amounts credited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant’s Rollover Account, less (c) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate to the Participant’s Rollover Account.

 

1.37                        “Rollover Amount” means the amount described in Section 3.6.

 

1.38                        “Separation from Service” means a termination of services provided by a Participant to his Employer, whether voluntary or involuntary, other than by reason of Retirement, death or Disability, as determined by the Committee in accordance with the Treas. Reg. § 1.409A-1(h).

 

1.39                        “Specified Employee” means any Participant who has determined to be a “key employee” (as defined under Code Section 416(i) without regard to paragraph (5) thereof) for the applicable period, as determined annually by the Committee in accordance with Treas. Reg. §1.409A-1(i). As of the Effective Date and until such time as the Committee determines to utilize another methodology, a Specified Employee must be classified by the Company as a member of one of the following categories of Employees: (i) a Level One Employee, (ii) a Level Two Employee or (iii) a General Manager of a wholly owned subsidiary of the Company.

 

1.40                        “Stock” means Company common stock or any other equity securities of the Company designated by the Committee.

 

1.41                        “Termination Benefit” means the benefit described in Article 7.

 

1.42                        “Trust” means one or more trusts established pursuant to the Trust Agreement.

 

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1.43                        “Trust Agreement” means the Trust Agreement between the Trustee and the Company, as amended from time to time.

 

1.44                        “Trustee” means the trustee of the Trust and any successor trustee.

 

1.45                        “Unforeseeable Emergency” means a severe financial hardship of the Participant resulting from (a) an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary or the Participant’s dependent (as defined in Code Section 152 without regard to paragraphs (b)(1), (b)(2) and (d)(1)(B) thereof), (b) the loss of a Participant’s property due to casualty, or (c) such other similar extraordinary and unforeseeable circumstances arising as a result of the events beyond the control of the Participant, all is determined by the Committee, in its sole discretion, based on the relevant facts and circumstances.

 

1.46                        “Year of Service” means a Year of Service as determined pursuant to the terms of the Penn National Gaming, Inc. 401(k) Plan; provided, however, that the term “Plan Year” as utilized therein shall mean the 12-month period commencing on November 1 and ending on October 31.

 

ARTICLE 2
  Selection, Enrollment, Eligibility

 

2.1                               Selection by Committee. Participation in the Plan will be limited to a select group of management and highly compensated Employees of the Employers, as determined by the Committee, in its sole discretion.

 

2.2                               Enrollment Requirements. As a condition of participation, each selected Employee will complete, execute, and return to the Committee a Plan Agreement, an Election Form and a Beneficiary Designation Form by the deadline(s) established by the Committee in accordance with the applicable provisions of the Plan. In addition, the Committee will establish from time to time such other enrollment requirements as it determines, in its sole discretion, are necessary.

 

2.3                               Eligibility; Commencement of Participation. Provided that an Employee selected to participate in the Plan has met all enrollment requirements set forth in this Plan and required by the Committee, including returning all required documents to the Committee within the specified time period, that Employee will commence participation in the Plan on the first day of the month following the month in which the Employee completes all enrollment requirements. If an Employee fails to meet all such requirements within the period required, in accordance with Section 2.2, that Employee will not be eligible to participate in the Plan until the first day of the Plan Year following the delivery to and acceptance by the Committee of the required documents.

 

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2.4                               Termination of Participation and/or Deferrals. If the Committee determines in good faith that a Participant no longer qualifies as a member of a select group of management or highly compensated employees, as membership in that group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee will have the right, in its sole discretion, to (a) terminate any deferral election the Participant has made for the remainder of the Plan Year in which the Participant’s membership status changes and (b) prevent the Participant from making future deferral elections.

 

ARTICLE 3
  Deferral Commitments/Company Contribution/Crediting/Taxes

 

3.1                               Minimum Deferrals.

 

(a)                                 Base Annual Salary and Annual Bonus. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, a percentage of Base Annual Salary and/or Annual Bonus; provided, however, that a Participant must elect to defer a sum of Base Annual Salary and/or Annual Bonus of at least $3,000.

 

(b)                                 If an election is made for less than stated minimum amounts, or if no election is made, the amount deferred will be zero.

 

(c)                                  Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the minimum deferral shall be an amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is 12.

 

3.2                               Maximum Deferral. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount up to 90% of his Base Annual Salary and/or Annual Bonus. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the maximum Annual Deferral Amount will be limited to the amount of Compensation not yet earned by the Participant as of the date the Participant submits a Plan Agreement and Election Form to the Committee for acceptance.

 

3.3          Election to Defer; Effect of Election Form.

 

(a)                                 First Plan Year. In connection with a Participant’s commencement of participation in the Plan, the Participant will make an irrevocable deferral election for the Plan Year in which the Participant commences participation in the Plan, along with such other elections as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form must be completed and signed by the Participant, timely delivered to the Committee (in accordance with Section 2.2

 

9

 

above, but in no event later than the December 31st preceding the Plan Year in which such compensation shall be earned), and accepted by the Committee.

 

(b)                                 Subsequent Plan Years. For each succeeding Plan Year, a Participant may make an irrevocable deferral election for that Plan Year, and such other elections as the Committee deems necessary or desirable under the Plan, by timely delivering to the Committee, in accordance with its rules and procedures, before the end of the Plan Year preceding the Plan Year for which the election is made and in which such compensation shall be earned, a new Election Form. If the Participant does not timely deliver an Election Form for a Plan Year, the Participant’s Annual Deferral Amount will be zero for that Plan Year.

 

(c)                                  New Participants. An eligible Employee who first becomes eligible to participate in the Plan on or after the beginning of a Plan Year may be permitted to make an election to defer a portion of his Base Annual Salary and/or Annual Bonus attributable to his services to be performed after such election, provided that the Participant submits an Election Form to the Committee on or before the deadline established by the Committee, which in no event shall be later than 30 days after the Participant first becomes eligible to participate in the Plan.

 

3.4                               Withholding of Annual Deferral Amounts. For each Plan Year, the Base Annual Salary portion of the Annual Deferral Amount will be withheld from each regularly scheduled Base Annual Salary payroll in equal amounts, as adjusted from time to time for increases and decreases in Base Annual Salary. The Annual Bonus portion of the Annual Deferral Amount will be withheld at the time the Annual Bonus is or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself.

 

3.5                               Annual Company Contribution Amount. The Company shall credit to the Account of each Participant an amount equal to 50% of the Participant’s Annual Deferral Amounts up to a maximum credit of 5%. For each Plan Year, the Company, in its sole discretion, may, but is not required to, credit any amount it desires to any Participant’s Company Contribution Account under this Plan. The amount so credited to a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant for a Plan Year may be zero, even though one or more other Participants receive an Annual Company Contribution Amount for that Plan Year. All discretionary contributions to a Participant’s Company Contribution Account shall be subject to the approval of the Board.

 

3.6                               Rollover Amount. Upon the effective date of his participation in the Plan, a Participant may elect to have his account balance or accrued benefit in any other nonqualified deferred compensation or nonqualified retirement plan maintained by an Employer transferred to this Plan and credited to his Account hereunder.

 

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3.7                               Investment of Trust Assets. The Trustee of the Trust will be authorized, upon written instructions received from the Committee or an investment manager appointed by the Committee, to invest and reinvest the assets of the Trust in accordance with the Trust Agreement, including the disposition of Stock and reinvestment of the proceeds in one or more investment vehicles designated by the Committee.

 

3.8                               Vesting.

 

(a)                                 A Participant will be 100% vested at all times in his or her Deferral Account.

 

(b)                                 Except as otherwise provided herein, a Participant will become vested in his or her Company Contribution Account in accordance with the following schedule:

 

	
Years of Service on Date of
   Termination of Employment
    	
 
    	
Vested Percentage of Company
   Contribution Account
    	
 
    
	
Less than 1 year
    	
 
    	
0
    	
%
    
	
1 year
    	
 
    	
20
    	
%
    
	
2 years
    	
 
    	
40
    	
%
    
	
3 years
    	
 
    	
60
    	
%
    
	
4 years
    	
 
    	
80
    	
%
    
	
5 years or more
    	
 
    	
100
    	
%
    

 

(c)                                  Notwithstanding anything to the contrary contained in this Section 3.8, in the event of a Participant’s death or Retirement, or in the event of a Change in Control, a Participant’s Company Contribution Account will immediately become 100% vested (if it is not already 100% vested in accordance with the above vesting schedule).

 

(d)                                 Notwithstanding subsection (c), the vesting schedule for a Participant’s Company Contribution Account will not be accelerated to the extent that the Committee determines that acceleration would cause the deduction limitations of Code Section 280G to become effective. In the event that all of a Participant’s Company Contribution Account is not vested pursuant to such a determination, the Participant may request independent verification of the Committee’s calculations with respect to the application of Code Section 280G. In that case, the Committee must provide to the Participant within 30 business days of receipt such a request an opinion from a nationally recognized accounting firm selected by the Participant (the “Accounting Firm”). The opinion will state the Accounting Firm’s opinion that any limitation in the vested percentage under this Plan is necessary to avoid the limits of Code Section 280G and contain supporting calculations. The Company will pay the cost of obtaining the opinion. If the vesting schedule for a Participant’s Company Contribution Account is not accelerated due to the application of this

 

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Section 3.8(d) and the Participant’s employment with the Employer is involuntarily terminated subsequent to the Change in Control that would have resulted in the acceleration of the vesting schedule but for the application of this Section 3.8(d), the Participant’s Company Contribution Account will immediately become 100% vested (if it is not already 100% vested in accordance with the vesting schedule set forth in Section 3.8(b)).

 

(e)                                  Notwithstanding anything to the contrary herein, no Participant will be eligible to receive benefits under the Plan that are credited to his or her Company Contribution Account if he or she violates the terms and conditions of any agreement or Company policy relating to matters of confidentiality or trade secrets of the Company, competition with the Company, solicitation of employees or customers of the Company, or engages in embezzlement, theft, fraud or any felony or any other act that is materially injurious to the Company. The determination as to whether a Participant has engaged in any such impermissible activity shall be made by the Committee, in its sole discretion.

 

(f)                                   In the event that any portion of a Participant’s Account is forfeited by reason of it not being fully vested or as a result of a divestiture pursuant to Section 3.8(e), any such forfeiture shall remain the property of the Company. The Committee may, however, in its sole discretion, elect to allocate all or a portion of any such forfeiture to the Accounts of any other Participants in the Plan in such manner and at such time as the Committee may determine.

 

(g)                                  In the event of a Participant’s Disability or involuntary termination of employment (except as is described in Section 3.8(d)), the Committee may, in its sole discretion, accelerate the vesting schedule for a Participant’s Company Contribution Account.

 

3.9                               Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, in its sole discretion, amounts shall be credited or debited to a Participant’s Account in accordance with the following rules:

 

(a)                                 Election of Measurement Funds. A Participant, in connection with his or her initial deferral election under Section 3.3(a) above, will elect, on the Election Form, the Measurement Fund to be used to determine the additional amounts to be credited to his or her Account for the first day in which the Participant commences participation in the Plan, and continuing thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the next sentence. Commencing with the first business day that follows the Participant’s commencement of participation in the Plan and continuing thereafter for each subsequent day in which the Participant participates in the Plan, the Participant may (but is not required to) elect, by submitting an Election Form to the Committee that

 

12

 

is accepted by the Committee, to add or delete one or more Measurement Fund(s) to be used to determine the additional amounts to be credited to his or her Account or to change the portion of his or her Account allocated to each previously or newly elected Measurement Fund. If an election is made in accordance with the previous sentence, it will apply to the next business day and continue thereafter for each subsequent day in which the Participant participates in the Plan, unless changed in accordance with the previous sentence.

 

(b)                                 Proportionate Allocation. In making any election described in Section 3.8 (a) above, the Participant must specify on the Election Form, in increments of one percentage point (1%), the percentage of his or her Account to be allocated to a Measurement Fund (as if the Participant was making an investment in that Measurement Fund with that portion of his or her Account).

 

(c)                                  Crediting or Debiting Method. The performance of each elected Measurement Fund (either positive or negative) will be determined by the Committee, in its sole discretion, based on the performance of the Measurement Funds themselves. A Participant’s Account will be credited or debited on a daily basis based on the performance of each Measurement Fund selected by the Participant, as determined by the Committee, in its sole discretion, as though (1) a Participant’s Account were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to that day, at the closing price on that date; (2) the portion of the Annual Deferral Amount that was actually deferred during any business day were invested in the Measurement Fund(s) selected by the Participant, in the percentages applicable to that day, no later than the close of business on the first business day after the day on which the amounts are actually deferred from the Participant’s Base Annual Salary through reductions in his or her payroll, at the closing price on that date; and (3) any distribution made to a Participant that decreases the Participant’s Account ceased being invested in the Measurement Fund(s), in the percentages applicable to the day, no earlier than one business day prior to the distribution, at the closing price on that date. The Participant’s Rollover Amount will be credited to his or her Account for purposes of this Section 3.9 (c) as of the close of business on the Effective Date or, if later, the first day of the Participant’s participation in the Plan. The Participant’s Annual Company Contribution Amount will be credited to his or her Company Contribution Account for purposes of this Section 3.9 (c) as of the close of business on the date selected by the Committee, in its sole discretion.

 

(d)                                 No Actual Investment. Notwithstanding any other provision of this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only, and a Participant’s election of any Measurement Fund, the allocation to his or her Account Balance to any Measurement Fund, the calculation of additional amounts, and the crediting or debiting of those amounts to a Participant’s Account will not be considered or construed in any manner as an

 

13

 

actual investment of his or her Account Balance in any Measurement Fund. In the event that the Company or the Trustee, in its own discretion, decides to invest funds in any or all of the Measurement Funds, no Participant will have any rights in or to the investments themselves. Without limiting the foregoing, a Participant’s Account Balance will at all times be a bookkeeping entry only and will not represent any investment made on his or her behalf by the Company or the Trust; the Participant will at all times remain an unsecured creditor of the Company.

 

3.10                        FICA and Other Taxes.

 

(a)                                 Annual Deferral Amounts. For each Plan Year in which an Annual Deferral Amount is being withheld from a Participant, the Participant’s Employer(s) will withhold from that portion of the Participant’s Base Annual Salary and Annual Bonus that is not being deferred, in a manner determined by the Employers, the Participant’s share of FICA and other employment taxes on the Annual Deferral Amount. If necessary, the Committee may reduce the Annual Deferral Amount in order to comply with this Section 3.10(a).

 

(b)                                 Company Contribution Account. When a Participant becomes vested in a portion of his or her Company Contribution Account, the Participant’s Employer will withhold from the Participant’s Base Annual Salary and/or Annual Bonus that is not deferred, in a manner determined by the Employer, the Participant’s share of FICA and other employment taxes. If necessary, the Committee may reduce the vested portion of the Participant’s Company Contribution Account to comply with this Section 3.10(b).

 

(c)                                  Distributions. The Participant’s Employer, or the Trustee of the Trust, will withhold from any payments made to a Participant under this Plan all federal, state, and local income, employment, and other taxes required to be withheld by the Employer or the Trustee, in connection with those payments, in amounts and in a manner to be determined in the sole discretion of the Employer and the Trustee.

 

ARTICLE 4
  Scheduled Distributions; Unforeseeable Emergencies

 

4.1                               Scheduled Distributions. In connection with each election to defer an Annual Deferral Amount, a Participant may elect to receive a scheduled distribution from the Plan with respect to the Annual Deferral Amount. Subject to the Deduction Limitation, the distribution will be a lump sum payment in an amount that is equal to the Annual Deferral Amount plus amounts credited or debited in the manner provided in Section 3.9 above on that amount, determined at the time that the distribution becomes payable (rather than the date of a Separation from Service). The Benefit Distribution Date for the amount subject to a scheduled distribution election shall be the within 30 days after the last day of any Plan

 

14

 

Year designated by the Participant, which may be no sooner than three Plan Years after the end of the Plan Year to which the Participant’s deferral election relates, unless otherwise provided on an Election Form approved by the Committee. Subject to the Deduction Limitation and the other terms and conditions of this Plan, each scheduled distribution elected will be paid out during a thirty (30)-day period commencing immediately after the last day of any Plan Year designated by the Participant.

 

4.2                               Other Benefits Take Precedence Over Scheduled Distributions. If an event occurs that triggers a benefit under Article 5, 6, 7, 8 or 9, any Annual Deferral Amount, plus amounts credited or debited on them, that is subject to a scheduled distribution election under Section 4.1 will not be paid in accordance with Section 4.1 but will be paid in accordance with the other applicable Article.

 

4.3                               Suspensions for Unforeseeable Emergencies. If a Participant (or, after a Participant’s death, his or her Beneficiary) experiences an Unforeseeable Emergency, the Participant (or Beneficiary) may petition the Committee to (a) suspend any deferrals required to be made by a Participant and/or (b) receive a partial or full payout from the Plan. The payout will not exceed the lesser of the Participant’s vested Account Balance, calculated as if the Participant were receiving a Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Emergency, plus amounts necessary to pay Federal, State, or local income taxes or penalties reasonable anticipated as a result of the distribution. A Participant shall not be eligible to receive a payout from the Plan to the extent that the Unforeseeable Emergency is or may be relieved (a) through reimbursement or compensation by insurance or otherwise, (b) by liquidation of the Participant’s assets, to the extent that the liquidation of such assets would not itself cause a severe financial hardship or (c) by cessation of deferrals under the Plan. If, subject to the sole discretion of the Committee, the petition for a suspension and/or payout is approved, suspension will take effect upon the date of approval, and any payout will be made within 30 days of the date of approval. The payment of any amount under this Section 4.3 will not be subject to the Deduction Limitation.

 

ARTICLE 5
 Retirement Benefit

 

5.1                               Retirement Benefit. Subject to the Deduction Limitation, a Participant who Retires will receive, as a Retirement Benefit, his or her Account Balance.

 

5.2                               Payment of Retirement Benefit.

 

(a)                                 A Participant, in connection with his or her commencement of participation in the Plan, will elect on an Election Form to receive the Retirement Benefit in a lump sum or pursuant to an Annual Installment Method of 5 or 10 years. On the Election Form, the Participant may also elect to defer commencement of the Retirement

 

15

 

Benefit to a later date, not later than five (5) years after the date on which the Participant retires. If a Participant does not make any election with respect to the payment of the Retirement Benefit, then that benefit will be payable in a lump sum. Unless the Participant has effectively elected a deferred payment commencement date, a lump sum payment will be made, or installment payments will commence, on the later of (i) the first day after the end of the six (6)-month period immediately following the date on which the Participant Retires if the Participant is a Specified Employee or (ii) within thirty (30) days after the last day of the Plan Year in which the Participant Retires. Any payment made will be subject to the Deduction Limitation.

 

(b)                                 A Participant may change the form of payment for the Retirement Benefit by submitting an Election Form to the Committee in accordance with the following criteria:

 

(i)            the election shall not take effect until at least 12 months after the date on which the election is made;

 

(ii)           the new Benefit Distribution Date for the Participant’s Retirement Benefit shall be at least five (5) years after the Benefit Distribution Date that would have otherwise been applicable to such benefits; and

 

(iii)          the election must be made at least 12 months prior to the Benefit Distribution Date that would have otherwise been applicable to the Participant’s Retirement Benefit.

 

5.3                               Death Prior to Completion of Retirement Benefit. If a Participant dies after Retirement but before the Retirement Benefit is paid in full, the Participant’s unpaid Retirement Benefit payments will continue and will be paid to the Participant’s Beneficiary over the remaining number of years and in the same amounts as that benefit would have been paid to the Participant had the Participant survived. Despite the foregoing, if the Participant’s Account Balance at the time of his or her death is less than the dollar limitation set forth in Code Section 402(g)(1)(B) then in effect, the Committee may determine, in its sole discretion, to distribute the benefit in the form of a lump sum. The lump sum payment will be made within 30 days after the last day of the Plan Year in which the Committee is provided with proof, satisfactory to the Committee, of the Participant’s death.

 

ARTICLE 6
  Pre-Retirement Survivor Benefit

 

6.1                               Pre-Retirement Survivor Benefit. Subject to the Deduction Limitation, the Participant’s Beneficiary will receive a Pre-Retirement Survivor Benefit equal to the Participant’s

 

16

 

Account Balance if the Participant dies before he or she Retires, experiences a Separation from Service, or suffers a Disability.

 

6.2                               Payment of Pre-Retirement Survivor Benefit. A Participant, in connection with his or her commencement of participation in the Plan, will elect on an Election Form whether his or her Beneficiary will receive the Pre-Retirement Survivor Benefit in a lump sum or pursuant to an Annual Installment Method of 5 or 10 years. If a Participant does not make any election with respect to the payment of the Pre-Retirement Survivor Benefit, then the benefit will be paid in a lump sum. Despite the foregoing, if the Participant’s Account Balance at the time of his or her death is less than the dollar limitation set forth in Code Section 402(g)(1)(B) then in effect, payment of the Pre-Retirement Survivor Benefit will be made in a lump sum payment. The lump sum payment will be made within 30 days after the last day of the Plan Year in which the Committee is provided with proof, satisfactory to the Committee, of the Participant’s death. Any payment made will be subject to the Deduction Limitation.

 

ARTICLE 7
  Termination Benefit

 

7.1                               Termination Benefit. Except as provided in Section 3.8(e) and subject to the Deduction Limitation, the Participant will receive a Termination Benefit, which will be equal to the Participant’s vested Account Balance, if a Participant experiences a Separation from Service prior to his or her Retirement, death, or Disability.

 

7.2                               Payment of Termination Benefit. The Termination Benefit shall be paid in a lump sum. The lump sum payment shall be made on the later of (i) the first day after the end of the six (6)-month period immediately following the date on which the Participant experiences the Separation from Service if the Participant is a Specified Employee or (ii) within sixty (60) days after the last day of the Plan Year in which the Participant experiences the Separation from Service. Any payment made shall be subject to the Deduction Limitation.

 

ARTICLE 8
  Disability Waiver and Benefit

 

8.1                               Disability Waiver.

 

(a)                                 Waiver of Deferral. A Participant who is determined by the Committee to be suffering from a Disability may be excused from fulfilling that portion of the Annual Deferral Amount commitment that would otherwise have been withheld from a Participant’s Base Annual Salary and/or Annual Bonus for the Plan Year during which the Participant first suffers a Disability. During the period of Disability, the Participant will not be allowed to make any additional deferral elections (unless otherwise determined by the Committee, in its sole discretion) but

 

17

 

will continue to be considered a Participant for all other purposes of this Plan, including, but not limited to, the vesting provisions set forth in Section 3.8.

 

(b)                                 Return to Work. If a Participant returns to employment with an Employer after a Disability ceases, the Participant may elect to defer an Annual Deferral Amount for the Plan Year following his or her return to employment or service and for every Plan Year thereafter while a Participant in the Plan, provided that the deferral elections are otherwise allowed under the Plan and an Election Form is delivered to and accepted by the Committee for each such election in accordance with Section 3.3 above.

 

8.2                               Disability; Continued Eligibility. For benefit purposes under this Plan, a Participant suffering a Disability will continue to be considered to be employed and will be eligible for the benefits provided for in Articles 4, 5, 6, 7 or 9, in accordance with the provisions of those Articles. If the Participant’s employment with the Employer is actually terminated, the Participant will be deemed to have Retired as of the date the Participant’s termination of employment. In that case, the Participant will receive a Retirement Benefit in accordance with Article 5; provided, however, that if the Participant is not otherwise 100% vested in his Company Contribution Account on such date, the extent to which the vesting of his Company Contribution Account will be accelerated (if any) shall be determined by the Committee, in its sole discretion. Any payment made shall be subject to the Deduction Limitation.

 

ARTICLE 9
  Change In Control Benefit

 

9.1                               Change In Control Benefit. In the event of a Change in Control, a Participant will receive his or her Account Balance (the “Change In Control Benefit”).

 

9.2                               Payment of Change In Control Benefit. The Change In Control Benefit, if any, shall be calculated as of the close of business on or around a Participant’s Benefit Distribution Date, as determined by the Committee, and paid to the Participant within sixty (60) days after the date of the Change in Control.

 

ARTICLE 10
  Beneficiary Designation

 

10.1                        Beneficiary. Each Participant will have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the Plan upon the Participant’s death. The Beneficiary designated under this Plan may be the same as or different from the beneficiary designation under any other plan of an Employer in which the Participant participates.

 

18

 

10.2                        Beneficiary Designation; Change. A Participant will designate his or her Beneficiary by completing and signing the Beneficiary Designation Form and returning it to the Committee or its designated agent. A Participant will have the right to change a Beneficiary by completing, signing, and otherwise complying with the terms of the Beneficiary Designation Form and the Committee’s rules and procedures, as in effect from time to time. Upon the Committee’s acceptance of a new Beneficiary Designation Form, all Beneficiary designations previously filed will be canceled. The Committee will be entitled to rely on the last Beneficiary Designation Form filed by the Participant and accepted by the Committee prior to his or her death.

 

10.3                        Acknowledgment. No designation or change in designation of a Beneficiary will be effective until received and acknowledged in writing by the Committee or its designated agent.

 

10.4                        No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 10.1, 10.2 and 10.3 above, or if all designated Beneficiaries predecease the Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s surviving spouse will be deemed to be his or her designated Beneficiary. If the Participant has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary will be payable to the executor or personal representative of the Participant’s estate.

 

10.5                        Doubt as to Beneficiary. If the Committee has any doubt as to the proper Beneficiary to receive payments pursuant to this Plan, the Committee will have the right, exercisable in its sole discretion, to cause the Participant’s Employer to withhold the payments until this matter is resolved to the Committee’s satisfaction.

 

10.6                        Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary will fully and completely discharge all Employers and the Committee from all further obligations under this Plan with respect to the Participant and his or her Beneficiary, and that Participant’s Plan Agreement will terminate upon such full payment of benefits.

 

ARTICLE 11
  Leave of Absence

 

11.1                        Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer for any reason to take a paid leave of absence from the employment of the Employer, the Participant will continue to be considered employed by the Employer and the Annual Deferral Amount will continue to be withheld during the paid leave of absence in accordance with Section 3.3.

 

11.2                        Unpaid Leave of Absence. If a Participant is authorized by the Participant’s Employer for any reason to take an unpaid leave of absence from the employment of the Employer, the

 

19

 

Participant will continue to be considered employed by the Employer, and the Participant will be excused from making deferrals until the earlier of the date the leave of absence expires or the date the Participant returns to a paid employment status. Upon that expiration or return, deferrals will resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the deferral election, if any, made for that Plan Year. If no election was made for that Plan Year, no deferral will be withheld.

 

ARTICLE 12
  Termination, Amendment or Modification

 

12.1                        Termination. Although each Employer anticipates that it will continue to participate in the Plan for an indefinite period of time, there is no guarantee that the Company will continue the Plan, or that any Employer will continue to participate in the Plan, or that the Company will not terminate the Plan at any time in the future. Accordingly, each Employer reserves the right to discontinue its participation in the Plan at any time, and the Company reserves the right to terminate the Plan at any time by action of Board. A participating Employer may terminate its participation in the Plan at any time with respect to any or all of its participating Employees by action of its board of directors. Upon the termination of the Plan with respect to any Employer, the Plan Agreements of the affected Participants who are employed by that Employer will terminate, and their Account Balances, determined as if they had experienced a Separation from Service on the date of Plan termination, will be paid to the Participants in a lump sum. The termination of the Plan will not adversely affect any Participant or Beneficiary who has become entitled to the payment of any benefits under the Plan as of the date of termination. Any distributions pursuant to this Section 12.1, will be subject to the following conditions:

 

(a)                                 the termination of Plan does not occur proximate to a downturn in the financial health of the Company;

 

(b)                                 the Company terminates and liquidates all agreements, methods, programs and other arrangements sponsored by the Company that would be aggregated with any terminated and liquidated agreements, methods, programs and other arrangements under Treas. Reg. § 1.409A-1(c) if the same Participant had deferrals of compensation under all such agreements, methods, programs and other arrangements that are terminated and liquidated;

 

(c)                                  no payments from the Plan are made within 12 months of the date the Company takes all necessary action to irrevocably terminate and liquidate the Plan other than payments that would be payable under the terms of the Plan if action to terminate and liquidate the Plan had not occurred;

 

(d)                                 all payments under the Plan are made within 24 months of the date the Company takes all necessary action to irrevocably terminate and liquidate the Plan; and

 

20

 

(e)                                  the Company does not adopt a new Plan that would be aggregated with any terminated Plan under Treas. Reg. § 1.409A-1(c) any time within three years following the date that the Company takes all necessary action to irrevocably terminate and liquidate the Plan.

 

12.2                        Amendment. The Company may, at any time, amend or modify the Plan in whole or in part by the action of its Board; provided, however, that: (a) no amendment or modification will be effective to decrease or restrict the value of a Participant’s Account Balance in existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Separation from Service as of the effective date of the amendment or modification or, if the amendment or modification occurs after the date upon which the Participant was eligible to Retire, the Participant had Retired as of the effective date of the amendment or modification, and (b) no amendment or modification of this Section 12.2 or Section 13.2 of the Plan will be effective. The amendment or modification of the Plan will not affect any Participant or Beneficiary who has become entitled to the payment of benefits under the Plan as of the date of the amendment or modification; provided, however, that, in the event of a Change in Control, the Employer will accelerate installment payments by paying the Account Balance in a lump sum pursuant to Section 9.2.

 

12.3                        Plan Agreement. Despite the provisions of Sections 12.1 and 12.2 above, if a Participant’s Plan Agreement contains benefits or limitations that are not in this Plan document, the Employer may only amend or terminate those provisions with the consent of the Participant.

 

12.4                        Effect of Payment. The full payment of the applicable benefit under Articles 4, 5, 6, 7, 8 or 9 of the Plan will completely discharge all obligations to a Participant and his or her designated Beneficiaries under this Plan, and the Participant’s Plan Agreement will terminate.

 

ARTICLE 13
 Administration

 

13.1                        Committee Duties. Except as otherwise provided in this Article 13, this Plan will be administered by the Committee. The Committee will have the discretion and authority to (a) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Plan and (b) decide or resolve any and all questions, including interpretations of this Plan that arise in connection with the Plan. When making a determination or calculation, the Committee will be entitled to rely on information furnished by a Participant or an Employer.

 

13.2                        Administration Upon Change In Control. For purposes of this Plan, the Committee will be the “Administrator” at all times prior to the occurrence of a Change in Control. Upon

 

21

 

and after the occurrence of a Change in Control, the “Administrator” will be an independent third party selected by the Trustee and approved by the individual who, immediately prior to that event, was the Company’s Chief Executive Officer or, if not so identified, the Company’s highest ranking officer (the “Ex-CEO”). The Administrator will have the discretionary power to determine all questions arising in connection with the administration of the Plan and the interpretation of the Plan and Trust including, but not limited to, benefit entitlement determinations; provided, however, that upon and after the occurrence of a Change in Control, the Administrator will have no power to direct the investment of Plan or Trust assets or select any investment manager or custodial firm for the Plan or Trust. Upon and after the occurrence of a Change in Control, the Company must: (a) pay all reasonable administrative expenses and fees of the Administrator; (b) indemnify the Administrator against any costs, expenses and liabilities including, without limitation, attorney’s fees and expenses arising in connection with the performance of the Administrator under this Plan, except with respect to matters resulting from the negligence or willful misconduct of the Administrator or its employees or agents; and (c) supply full and timely information to the Administrator on all matters relating to the Plan, the Trust, the Participants, and their Beneficiaries, the Account Balances of the Participants, the date and circumstances of the Retirement, Disability, death, or Separation from Service of the Participants, and such other pertinent information as the Administrator may reasonably require. Upon and after a Change in Control, the Administrator may be terminated (and a replacement appointed) by the Trustee only with the approval of the Ex-CEO. Upon and after a Change in Control, the Administrator may not be terminated by the Company.

 

 

13.3                        Agents. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to any Employer.

 

13.4                        Binding Effect of Decisions. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation, and application of the Plan and the rules and regulations promulgated under the Plan will be final and conclusive and binding upon all persons having any interest in the Plan.

 

13.5                        Indemnity of Committee. All Employers will indemnify and hold harmless the members of the Committee, any Employee to whom the duties of the Committee may be delegated, and the Administrator, against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee, any of its members, any such Employee, or the Administrator.

 

13.6                        Employer Information. To enable the Committee and the Administrator to perform their functions, the Company and each Employer will supply full and timely information to the Committee or Administrator, as the case may be, on all matters relating to the

 

22

 

compensation of its Participants, the date and circumstances of the Retirement, Disability, death, or circumstances of the Retirement, Disability, death, or Separation from Service of its Participants, and such other pertinent information as the Committee or Administrator may reasonably require.

 

ARTICLE 14
  Other Benefits and Agreements

 

14.1                        Coordination with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in addition to any other benefits available to that Participant or Beneficiary under any other plan or program for employees of the Participant’s Employer. The Plan will supplement and will not supersede, modify or amend any other such plan or program except as may otherwise be expressly provided.

 

ARTICLE 15
  Claims Procedures

 

15.1                        Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver to the Committee a written claim for a determination with respect to the amounts distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within 180 days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

 

15.2                        Notification of Decision. The Committee shall consider a Claimant’s claim within a reasonable time, but no later than ninety (90) days after receiving the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial ninety (90)-day period. In no event shall such extension exceed a period of ninety (90) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render the benefit determination. The Committee shall notify the Claimant in writing:

 

(a)                                 that the Claimant’s requested determination has been made, and that the claim has been allowed in full; or

 

(b)                                 that the Committee has reached a conclusion contrary, in whole or in part, to the Claimant’s requested determination, and such notice must set forth in a manner calculated to be understood by the Claimant:

 

23

 

(1)                                 the specific reason(s) for the denial of the claim, or any part of it;

 

(2)                                 specific reference(s) to pertinent provisions of the Plan upon which such denial was based;

 

(3)                                 a description of any additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary;

 

(4)                                 an explanation of the claim review procedure set forth in Section 15.3 below; and

 

(5)                                 a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

 

15.3                        Review of a Denied Claim. On or before sixty (60) days after receiving a notice from the Committee that a claim has been denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file with the Committee a written request for a review of the denial of the claim. The Claimant (or the Claimant’s duly authorized representative):

 

(a)                                 may, upon request and free of charge, have reasonable access to, and copies of, all documents, records and other information relevant to the claim for benefits;

 

(b)                                 may submit written comments or other documents; and/or

 

(c)                                  may request a hearing, which the Committee, in its sole discretion, may grant.

 

15.4                        Decision on Review. The Committee shall render its decision on review promptly, and no later than sixty (60) days after the Committee receives the Claimant’s written request for a review of the denial of the claim. If the Committee determines that special circumstances require an extension of time for processing the claim, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial sixty (60)-day period. In no event shall such extension exceed a period of sixty (60) days from the end of the initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render the benefit determination. In rendering its decision, the Committee shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The decision must be written in a manner calculated to be understood by the Claimant, and it must contain:

 

(a)                                 specific reasons for the decision;

 

24

 

(b)                                 specific reference(s) to the pertinent Plan provisions upon which the decision was based;

 

(c)                                  a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; and

 

(d)                                 a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a).

 

15.5                        Legal Action. A Claimant’s compliance with the foregoing provisions of this Article 15 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claim for benefits under this Plan.

 

ARTICLE 16
  Trust

 

16.1                        Establishment of the Trust. The Company may choose to establish a Trust, and, if the Trust is established, each Employer will, at least annually, transfer to the Trust such assets as the Employer determines, in its sole discretion, are necessary or desirable to provide, on a present value basis, for its respective future liabilities created with respect to the Annual Deferral Amounts, Annual Company Contribution Amounts, and Rollover Amounts for the Employer’s Employees who are Participants.

 

16.2                        Interrelationship of the Plan and the Trust. The provisions of the Plan and the Plan Agreement will govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust will govern the rights of the Employers, Participants, and the creditors of the Employers to the assets transferred to the Trust. Each Employer will at all times remain liable to carry out its obligations under the Plan.

 

16.3                        Distributions From the Trust. Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust, and any such distribution will reduce the Employer’s obligations under this Plan.

 

ARTICLE 17
 Miscellaneous

 

17.1                        Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section 401(a) and that “is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employee” within the meaning of ERISA Sections 201(2), 301(a)(3)

 

25

 

and 401(a)(1). The Plan will be administered and interpreted to the extent possible in a manner consistent with that intent.

 

17.2                        Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors, and assigns will have no legal or equitable rights, interests, or claims in any property or assets of an Employer. For purposes of the payment of benefits under this Plan, any and all of an Employer’s assets will be, and remain, the general, unpledged, and unrestricted assets of the Employer. An Employer’s obligation under the Plan will be merely that of an unfunded and unsecured promise to pay money in the future.

 

17.3                        Employer’s Liability. An Employer’s liability for the payment of benefits will be defined only by the Plan and the Plan Agreement, as entered into between the Employer and a Participant. An Employer will have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement.

 

17.4                        Nonassignability. Neither a Participant nor any other person will have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage, or otherwise encumber, transfer, hypothecate, alienate, or convey in advance of actual receipt, the amounts, if any, payable under the Plan, or any part of those amounts, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable will, prior to actual payment, be subject to seizure, attachment, garnishment, or sequestration for the payment of any debts, judgments, alimony, or separate maintenance owed by a Participant or any other person; be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency; or be transferable to a spouse as a result of a property settlement or otherwise.

 

17.5                        Not a Contract of Employment. The terms and conditions of this Plan will not be deemed to constitute a contract of employment between any Employer and the Participant. Such employment is hereby acknowledged to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless expressly provided otherwise in a written employment agreement. Nothing in this Plan will be deemed to give a Participant the right to be retained in the service of any Employer as an Employee or to interfere with the right of any Employer to discipline or discharge the Participant at any time.

 

17.6                        Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Committee by furnishing any and all information requested by the Committee and take such other actions as may be requested in order to facilitate the administration of the Plan and the payments of benefits under the Plan, including but not limited to taking such physical examinations as the Committee may deem necessary.

 

17.7                        Terms. Whenever any words are used in the Plan in the masculine, they will be construed as though they were in the feminine in all cases where they would so apply; and whenever

 

26

 

any words are used in the Plan in the singular or in the plural, they will be construed as though they were used in the plural or the singular, as the case may be, in all cases where they would so apply.

 

17.8                        Captions. The captions of the articles, sections, and paragraphs of this Plan are for convenience only and will not control or affect the meaning or construction of any of its provisions.

 

17.9                        Governing Law. Subject to ERISA, the provisions of this Plan will be construed and interpreted according to the internal laws of the Commonwealth of Pennsylvania without regard to its conflicts of laws principles.

 

17.10                 Notice. Any notice or filing required or permitted to be given to the Committee under this Plan will be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to the address below:

 

	
 
    	
Gail   L. Gonzales
    	
 
    
	
 
    	
Corporate   Director, Human Resources
    	
 
    
	
 
    	
Penn   National Gaming, Inc.
    	
 
    
	
 
    	
825   Berkshire Boulevard
    	
 
    
	
 
    	
Wyomissing,   PA 19610
    	
 
    

 

The notice will be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.

 

Any notice or filing required or permitted to be given to a Participant under this Plan will be sufficient if in writing and hand-delivered, or sent by mail, to the Participant’s last known address.

 

17.11                 Successors. The provisions of this Plan will bind and inure to the benefit of the Participant’s Employer and its successors and assigns and the Participant and the Participant’s designated Beneficiaries.

 

17.12                 Spouse’s Interest. Any interest in the Plan benefits of a Participant’s spouse who has predeceased the Participant will automatically pass to the Participant and will not be transferable by the spouse in any manner, including, but not limited to, the spouse’s will, nor will the interest pass under the laws of intestate succession.

 

17.13                 Validity. In case any provision of this Plan is declared illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, but the Plan will be construed and enforced as if the illegal or invalid provision had never been inserted in the Plan.

 

27

 

17.14                 Incompetent. If the Committee determines, in its sole discretion, that a benefit under this Plan is to be paid to a minor, a person declared incompetent, or a person incapable of handling the disposition of that person’s property, the Committee may direct payment of that benefit to the guardian, legal representative, or person having the care and custody of the minor, incompetent, or incapable person. The Committee may require proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit will be a payment for the account of the Participant or the Participant’s Beneficiary, as the case may be, and will be a complete discharge of any liability under the Plan for that payment amount.

 

17.15                 Distribution in the Event of Taxation.

 

(a)                                 In General. If, for any reason, all or any portion of a Participant’s benefits under this Plan becomes taxable to the Participant prior to receipt, a Participant may petition the Committee before a Change in Control, or the Trustee of the Trust after a Change in Control, for a distribution of that portion of his or her benefit that has become taxable. Upon the grant of such a petition, which grant will not be unreasonably withheld (and, after a Change in Control, will be granted), a Participant’s Employer will distribute to the Participant immediately available funds in an amount equal to the tax attributable to his or her benefit (which amount will not exceed a Participant’s unpaid Account Balance under the Plan). Additionally, the Committee may cause distribution to be made hereunder to pay the income tax at the source and wages imposed under Code Section 3401 where the corresponding withholding provisions of applicable state, local or foreign tax laws as a result of the payment of the preceding amount. If the petition is granted, the tax liability distribution will be made within 90 days of the date when the Participant’s petition is granted. Such a distribution will affect and reduce the benefits to be paid under this Plan. Distributions hereunder may be made for the following reasons:

 

(i)                                     payment of employment taxes; and

 

(ii)                                  payment of state, local or foreign taxes; and

 

(iii)          payment of income inclusion under Code Section 409A (with respect to which the entire amount required to be included into income as a result of such failure may be distributed).

 

(b)                                 Trust. If the Trust terminates in accordance with its terms and benefits are distributed from the Trust to a Participant in accordance with those terms, the Participant’s benefits under this Plan will be reduced to the extent of those distributions.

 

28

 

17.16                 Insurance. The Employers, on their own behalf or on behalf of the Trustee and, in their sole discretion, may apply for and procure insurance on the life of a Participant, in such amounts and in such forms as the Employers may choose. The Employers or the Trustee, as the case may be, will be the sole owner and beneficiary of any such insurance. The Participant will not have any interest whatsoever in any such policy or policies, and at the request of the Employers will submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to which the Employers have applied for insurance.

 

17.17                 Legal Fees To Enforce Rights After Change in Control. The Company and each Employer is aware that upon the occurrence of a Change in Control, the Board or the board of directors of a Participant’s Employer (which might then be composed of new members) or a shareholder of the Company or the Participant’s Employer, or of any successor corporation might then cause or attempt to cause the Company, the Participant’s Employer, or the successor to refuse to comply with its obligations under the Plan and might cause or attempt to cause the Company or the Participant’s Employer to institute, or may institute, litigation seeking to deny Participants the benefits intended under the Plan. In these circumstances, the purpose of the Plan could be frustrated. Accordingly, if, following a Change in Control, it should appear to any Participant that the Company, the Participant’s Employer, or any successor corporation has failed to comply with any of its obligations under the Plan or any agreement thereunder or, if the Company, an Employer, or any other person takes any action to declare the Plan void or unenforceable or institutes any litigation or other legal action designed to deny, diminish, or to recover from any Participant the benefits intended to be provided, then the Company and the Participant’s Employer irrevocably authorize the Participant to retain counsel of his or her choice at the expense of the Company and the Participant’s Employer (who will be jointly and severally liable) to represent the Participant in connection with the initiation or defense of any litigation or other legal action, whether by or against the Company, the Participant’s Employer, or any director, officer, shareholder or other person affiliated with the Company, the Participant’s Employer, or any successor to either of them in any jurisdiction.

 

17.18                 Domestic Relations Orders. If necessary to comply with a domestic relations order, as defined in Code Section 414(p)(1)(B), pursuant to which a court has determined that a spouse or former spouse of a Participant has an interest in the Participant’s benefits under the Plan, the Committee shall have the right to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to such spouse or former spouse.

 

17.19                 Section 409A of the Code. The terms of the Plan and its operation are intended to comply with Section 409A of the Code. The Plan shall be administered, interpreted and construed in a manner consistent with Section 409A of the Code. Notwithstanding anything in the Plan to the contrary, distributions under the Plan may only be made upon an event and in a manner consistent with Section 409A of the Code. Should any provision of the Plan, or

 

29

 

any other agreement or arrangement contemplated by the Plan or used in conjunction with the Plan be found not to comply with, or otherwise be exempt from, the provisions of Section 409A of the Code, such requirements shall be modified and given effect (retroactively if necessary), in the sole discretion of the Committee, in such manner as the Committee determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Section 409A of the Code. If such modification is not possible, any such provision that is not in compliance with Section 409A of the Code shall be deemed ineffective if its application would result in a violation of the requirements set forth in

 

IN WITNESS WHEREOF, the Company has executed this Plan document on this 5th day of April, 2013, to be effective as of April 4, 2013.

 

	
ATTEST:
    	
PENN   NATIONAL GAMING, INC.
    
	
 
    	
 
    
	
By:
    	
/s/   Jordan B. Savitch
    	
 
    	
By:
    	
 /s/ Robert S. Ippolito
    
	
 
    	
 
    
	
 
    	
Title:
    	
Vice   President, Secretary and Treasurer
    
					

 

30

 

APPENDIX A

 

	
DBA
    	
Legal Entity Name
    
	
 
    	
 
    
	
Argosy Casino Alton
    	
Alton Gaming Company
    
	
Argosy Casino Riverside
    	
The Missouri Gaming   Company Iowa Gaming Company
    
	
Argosy Casino Sioux   City
    	
Penn Bullwhackers, Inc.
    
	
Bullwhackers Casino
    	
PHK Staffing, LLC
    
	
Hollywood Casino at   Kansas Speedway
    	
Louisiana Casino   Cruises, Inc.
    
	
Hollywood Casino Baton   Rouge
    	
Central Ohio Gaming   Ventures, LLC
    
	
Hollywood Casino   Columbus
    	
St Louis Gaming   Ventures, LLC
    
	
Hollywood Casino St.   Louis
    	
Toledo Gaming   Ventures, Inc.
    
	
Hollywood Casino Toledo
    	
Hollywood Casino   Tunica, Inc.
    
	
Hollywood Casino Tunica
    	
Bangor Historic   Track, Inc.
    
	
Hollywood Slots at   Bangor
    	
Raceway Park, Inc.
    
	
Raceway Park
    	
Beulah Park Gaming   Ventures, Inc.
    
	
Beulah Park
    	
Boomtown Casino Biloxi
    
	
Boomtown Casino Biloxi
    	
PNGI CharlesTown   Gaming, LLC
    
	
Hollywood Casino at   Charles Town
    	
Mountainview   T.R.A., Inc.
    
	
Hollywood Casino at   PNRC
    	
Hollywood Casino Aurora
    
	
Hollywood Casino Aurora
    	
Hollywood Casino Bay   St. Louis
    
	
Hollywood Casino Bay   St. Louis
    	
Empress Casino Joliet   Corporation
    
	
Hollywood Casino Joliet
    	
Indiana Gaming Company,   L.P.
    
	
Hollywood Casino   Lawrenceburg
    	
Penn Cecil Maryland   Inc.
    
	
Hollywood Casino   Perryville
    	
Penn National   Gaming, Inc.
    
	
Penn National Gaming, Inc.
    	
Prince Georges Racing   Ventures LLC
    
	
Rosecroft Raceway
    	
Sanford Orlando Kennel   Club
    
	
Sanford Orlando Kennel   Club
    	
Zia Park, LLC
    
	
Zia Park
    	
LV Gaming   Ventures, Inc.
    
	
The M Resort
    	
 
    

 

31

 

FIRST AMENDMENT

TO THE

PENN NATIONAL GAMING, INC.

DEFERRED COMPENSATION PLAN

 

WHEREAS, Penn National Gaming, Inc. (the “Company”) maintains the Penn National Gaming, Inc. Deferred Compensation Plan (the “Plan”); and

 

WHEREAS, Section 12.2 of the Plan provides that the Company may amend the Plan at any time by action of the Board; and

 

WHEREAS, the Company wishes to amend the Plan to address the eligibility of certain employees to participate in the Plan.

 

NOW, THEREFORE, the Plan is hereby amended effective November 1, 2013 as follows:

 

1.                                      Section 2.1 is amended by adding the following to the end thereof:

 

“Any Employee who becomes an Employee during the 24-month period commencing on November 1, 2013 and who had been a participant in the Gaming and Leisure Properties, Inc. Deferred Compensation Plan shall be eligible to participate in the Plan as soon as practicable following the date he becomes an Employee.”

 

2.                                In all other respects, the Plan shall remain as previously written.

 

IN WITNESS WHEREOF, this First Amendment has been adopted this 6th day of January, 2014.

 

	
ATTEST:
    	
PENN   NATIONAL GAMING, I NC.
    
	
 
    	
 
    
	
/s/   Tammy Albrecht
    	
 
    	
By:
    	
/s/   Robert S. Ippolito
    
				

 

 

SECOND AMENDMENT TO THE

PENN NATIONAL GAMING, INC.

DEFERRED COMPENSATION PLAN

 

WHEREAS, Penn National Gaming, Inc. (the “Company”) maintains the Penn National Gaming, Inc. Deferred Compensation Plan (the “Plan”); and

 

WHEREAS, Section 12.2 of the Plan provides that the Company may amend the Plan at any time by action of the Board; and

 

WHEREAS, the Company wishes to amend the Plan to revise the provisions governing retirement distributions.

 

NOW, THEREFORE, the Plan is hereby amended, effective October 1, 2015, as follows:

 

1.                                      Section 1.34 is amended by adding the following to the end thereof:

 

“Effective January 1, 2017, with respect to amounts credited to a Participant’s Account relating to periods of service with an Employer beginning on or after January 1, 2017, ‘Retirement,’ ‘Retire(s)’ or ‘Retired’ means, with respect to an Employee, termination of employment from all Employers for any reason other than a leave of absence, death, or Disability (i) on or after the attainment of age 55 with at least ten (10) Years of Service or (ii) on or after the attainment of age 65. For purposes of this Plan, any ‘termination of employment’ shall be construed in accordance with the requirements for a ‘separation from service’ under Treas. Reg. §1.409A-1(h).”

 

2.                                      Section 1.46 is amended by adding the following to the end thereof:

 

“In addition, for purposes of determining whether a Participant has been credited with at least ten (10) Years of Service for purposes of determining his eligibility for a Retirement distribution, if a Participant incurs a Separation from Service with an Employer and is subsequently reemployed more than thirty (30) days after the effective date of such Separation from Service, all Years of Service credited prior to such Separation from Service shall be disregarded.”

 

3.                                      Section 3.5 is amended by adding the following to the end thereof:

 

“Effective October 1, 2015, all discretionary contributions to a Participant’s Company Contribution Account shall be subject to the approval of the Chief Executive Officer of the Company (the “CEO”) or the executive officer of the Company designated by the CEO. A discretionary contribution to a Participant may not be in excess of Twenty Thousand and no/100 Dollars ($20,000.00) in a Plan Year and the total discretionary contributions to Participants in a Plan Year may not exceed One Hundred Thousand and no/100 Dollars ($100,000.00). In addition, in no event may a discretionary contribution be allocated to the Company Contribution Account of any Participant who is a named executive officer of the Company.”

 

4.                                      Section 5.2(a) is amended by adding the following after the first sentence therein:

 

 

“Effective January 1, 2017, with respect to amounts credited to a Participant’s Account relating to periods of service with an Employer beginning on or after January 1, 2017, a Participant will elect on an Election Form to receive the Retirement Benefit in a lump sum or pursuant to an Annual installment Method of five (5) or ten (10) years with respect to amounts credited to his Account for each calendar year period for which he is making a deferral election pursuant to Section 3.3.”

 

5.                                      A new Section 7.3 is added to read, it its entirety, as follows:

 

“7.3 Termination Benefit Election. With respect to amounts credited to a Participant’s Account relating to periods of service with an Employer prior to January 1, 2017, a Participant may change the form or timing of the payment of his Termination Benefit from a lump sum distribution to (i) an annual installment method of five (5) or ten (10) years or (ii) a lump sum that is payable at least five (5) years after his Separation from Service with the Employer. The change may be made by submitting an Election Form to the Committee in accordance with the following criteria:

 

(i)                                     The election shall not take effect until at least twelve (12) months after date on which the election is made;

 

(ii)                                  The new Benefit Distribution Date for the Participant’s

 

Termination Benefit shall be at least five (5) years after the Benefit Distribution Date that would have been otherwise applicable to such benefits;

 

(iii)                               The election must be made at least twelve (12) months prior to the Benefit Distribution Date that would have otherwise been applicable to the Participant’s Termination Benefit; and

 

(iv)                              The Participant must have attained age fifty-five (55) with at least ten (10) Years of Service as of the date of his Separation from Service giving rise to the Participant’s Termination Benefit.

 

This election opportunity will first be made available to a Participant following the Participant’s attainment of age fifty-three (53) with at least eight (8) Years of Service.”

 

6.                                      Section 17.10 is amended by replacing “Gail L. Gonzales, Corporate Director, Human Resources” with “Corporate Director of Benefits.”

 

7.                                      In all other respects, the Plan shall remain as previously written.

 

IN WITNESS WHEREOF, this Second Amendment has been adopted this 28th day of December 2015.

 

	
ATTEST:
    	
PENN   NATIONAL GAMING, I NC.
    
	
 
    	
 
    
	
/s/   Lori Heyer
    	
 
    	
By:
    	
/s/   Saul V. Reibstein
    
				

 

2

 

THIRD AMENDMENT TO THE

PENN NATIONAL GAMING, INC.

DEFERRED COMPENSATION PLAN

 

WHEREAS, Penn National Gaming, Inc. (the “Company”) maintains the Penn National Gaming, Inc. Deferred Compensation Plan (the “Plan”); and

 

WHEREAS, Section 12.2 of the Plan provides that the Company may amend the Plan at any time by action of the Board; and

 

WHEREAS, the Company wishes to amend the Plan to clarify the annual deferral provision; and

 

WHEREAS, the Board approved these amendments at its meeting on December 2, 2016. NOW, THEREFORE, the Plan is hereby amended, effective January 1, 2017, as follows:

 

1.                                      Section 3.1 is amended to read, in its entirety, as follows:

 

“3.1 Annual Deferrals. For each Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, a percentage of Base Annual Salary and/or Annual Bonus. If no election is made, the amount deferred will be deemed to be zero.”

 

2.                                      Section 12.2 is amended by adding the following to the end thereof

 

“Effective January 1, 2017, the Plan may be amended by action of the Compensation Committee of the Board (the “Compensation Committee”) with respect to significant Plan design changes and/or any changes having a significant economic impact on the Company or on senior executives of the Company. The Compensation Committee shall notify the Board of any actions taken with respect to the Plan. All other administrative and/or mandatory legal amendments may be adopted by action of the CEO. The CEO shall notify the Compensation Committee of any action taken with respect to the Plan.”

 

3.                                      In all other respects, the Plan shall remain as previously written.

 

IN WITNESS WHEREOF, this Third Amendment has been adopted this 9th day of June, 2017.

 

	
ATTEST:
    	
PENN   NATIONAL GAMING, INC.
    
	
 
    	
 
    
	
/s/   Rebecca A. Fink
    	
 
    	
By:
    	
/s/   Carl Sottosanti
    
	
 
    	
Executive   Vice President and General
    
	
 
    	
Counsel
    
				

 

 

FOURTH AMENDMENT TO THE

PENN NATIONAL GAMING, INC.

DEFERRED COMPENSATION PLAN

 

WHEREAS, Penn National Gaming, Inc. (the “Company”) maintains the Penn National Gaming, Inc. Deferred Compensation Plan (the “Plan”); and

 

WHEREAS, Section 12.2 of the Plan provides that the CEO may adopt administrative amendments to the Plan; and

 

WHEREAS, the Company wishes to amend the Plan to clarify the annual company contribution provision.

 

NOW, THEREFORE, the Plan is hereby amended, effective as of January 1, 2017, as follows:

 

1.                                      The first sentence of Section 3.5 is amended to read, in its entirety, as follows:

 

“The Company shall credit to the Account of each Participant an amount equal to the sum of (i) 50% of the Participant’s Annual Deferral Amount attributable to Base Annual Salary (but only with respect to a maximum deferral of 10%) and (ii) 50% of the Participant’s Annual Deferral Amount attributable to Annual Bonus (but only with respect to a maximum deferral of 10%).”

 

2.                                      In all other respects, the Plan shall remain as previously written.

 

IN WITNESS WHEREOF, this Fourth Amendment has been adopted this 30th day of October, 2017.

 

	
ATTEST:
    	
TIMOTHY   J. WILMOTT,
    
	
 
    	
CHIEF   EXECUTIVE OFFICER
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Carl Sottosanti
    	
 
    	
/s/   Timothy J. WilmottExhibit 10.23

 

COMMERCIAL LEASE AGREEMENT

 

THIS LEASE AGREEMENT (the “Lease”) made the 31st day of March, 1995, by and between WYOMISSING PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited partnership (the “Landlord”), having an address of 825 Berkshire Boulevard, Suite 203, Wyomissing, Pennsylvania 19610 and PENN NATIONAL GAMING, INC. (the “Tenant”), having an address of 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610.

 

IN CONSIDERATION of the mutual promises contained herein, and intending to be legally bound hereby, Landlord and Tenant agree as follows:

 

1.                  PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord 2,120 square feet  of rentable floor area, substantially as shown on the floor plan attached hereto as Exhibit “A” and made a part hereof (the “Premises”). The Premises are on the second floor of the building having an address of 825 Berkshire Boulevard, Wyomissing, Pennsylvania (the “Building”), located on a parcel of land containing approximately 11 acres (the “Land”). In connection with its use of the Premises, Tenant shall have the right to use for its employees twelve undesignated parking spaces in the parking area adjacent to the Building and such other undesignated parking spaces as may be reasonably required for the conduct of its business.

 

2.                  TERM.

 

(a)                 The term of the Lease shall be five (5) years, commencing on April 1, 1995.

 

(b)                 If Tenant, without the consent of Landlord, remains in possession of the Premises beyond the expiration of this Lease or any extension or renewal hereof, such holding over shall be deemed a tenancy at sufferance at one and one-half (1-1/2) times the rent as was in effect at the time such holding over commenced.

 

3.                  RENT.

 

(a)                 During the first year of the term of this Lease, Tenant shall pay Landlord annual minimum rent in the amount of Twenty Three Thousand Three Hundred Twenty Dollars ($23,320), payable in twelve (12) equal monthly installments of One Thousand Nine Hundred Forty Three Dollars and Thirty Three Cents ($1,943.33). Such annual minimum rent is calculated on the basis of $11.00 per square foot of the rentable floor area of the Premises.

 

 

(b)                 During the second lease year and each lease year thereafter during the term of this Lease, the annual minimum rent shall be increased by three percent (3%) over the prior year’s annual minimum rent.

 

(c)                  All rent shall be payable in advance, without demand, on the first day of each calendar month during the term of this Lease, except that the first full monthly installment shall be paid upon the signing of this Lease. The first and last monthly payments shall be prorated on a per diem basis for any period less than a full calendar month.

 

(d)                 All rent shall be payable without any deduction, offset or counterclaim. All rent due hereunder shall be payable in immediately available funds at Landlord’s address set forth in the introductory paragraph of this Lease or at such other place as may be designated by Landlord.

 

(e)                  Tenant shall pay a late charge at the rate of five percent (5%) on each dollar of rent, or any other sum collectible as rent under this Lease, which is not paid within fifteen (15) days after the same is due.

 

4.                  TENANT’S SHARE OF EXPENSES.

 

(a)       In addition to the payment of annual minimum rent as provided herein, Tenant shall pay as additional rent hereunder its proportionate share (as defined in subparagraph 4(c)) of all Expenses as herein defined. Expenses shall include all real estate taxes assessed against the Building, janitorial services (if any) provided to Tenant, insurance premiums (other than Tenant’s liability insurance) on the Building, water and sewer costs of the Building as metered, trash removal costs pertaining to the Building, repair and maintenance of HVAC equipment relating to Premises, grass cutting and landscape bed maintenance of the area delineated on plan as Exhibit “A”, snow removal and parking lot repair, maintenance, repaving, cleaning and striping of the same defined area on Exhibit “A”, parking lot electric as determined by the “house meter” on the Building, and all other costs and Expenses incurred by Landlord in operating and maintaining the Building. Expenses shall also include expenses imposed or assessed against the Building and its owner(s) by The Owner’s Association of Wyomissing Professional Center, West Campus, Inc. consisting of costs of maintaining and repairing the main roadway through the Land. The Expenses shall be pre-paid on a monthly basis during each calendar year of the term of this Lease as provided herein. Attached hereto as Exhibit “B” and made a part hereof is the current budget estimate and operating expense description for the operation of the Building and the Land. All items on the budget shall be included as Expenses, but other Expenses may be incurred from time to time.

 

(b)       For purposes hereof, “Expenses” shall not include:

 

(i)     Costs for which Landlord is reimbursed or indemnified (either by an insurer, condemnor, tenant, warrantor or otherwise) or, in the event Landlord fails to properly insure the Building, then Expenses shall not include expenses for which Landlord would have been reimbursed if 

 

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Landlord had adequately insured the Building.

 

(ii)                 Expenses incurred in leasing or procuring tenants (including lease commissions, advertising expenses, management and leasing offices, lease negotiation and review, expenses of renovating space for tenants, and legal expenses incurred in enforcing the terms of any tenant leases).

 

(iii)              Interest or amortization payments on any mortgages.

 

(iv)             Costs representing an amount paid to an affiliate of Landlord which is in excess of the amount which would have been paid in the absence of such relationship.

 

(v)                Costs specially billed to and paid by specific tenants, including without limitation, expenses for work performed for other tenants in the Building and expenses to be billed to other tenants for excess utility use or other services that are beyond normal office use. There shall be no duplication of costs or reimbursement.

 

(vi)             Depreciation and costs incurred by Landlord for alterations that are considered capital improvements and replacements under generally accepted accounting principles consistently applied except that the annual amortization of these costs shall be included in the following two instances:

 

(A)    The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any improvement made by Landlord and required by any changes in applicable laws, rules, or regulations of any governmental authority enacted after the Building was fully assessed as a completed and occupied unit and the Lease was signed.

 

(B)    The annual amortization over its useful life (not to be less than ten (10) years) with a reasonable salvage value on a straight line basis of the cost of any equipment or capital improvements made by Landlord after the Building was fully assessed as a completed and occupied unit and the Lease was signed, as a labor-saving measure or to accomplish other savings in operating, repairing, managing, or maintaining of the Building or Land, but only to the extent of the savings realized.

 

(vii)          Salaries other than salary for a building manager.

 

(viii)       Landlord’s personal property and Landlord’s own occupancy costs, if any, in the Building. 

 

(c)        The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 2,120 square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), unless a direct billing relating to a cost of operating the Premises not the entire Building occurs, such as

 

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with janitorial or HVAC repair and maintenance, where Tenant would have responsibility for the entire amount.

 

(d)       During the first lease year of the term of this Lease, the Premises Expenses shall be an amount not greater than $3.25 per square foot of rentable floor area of the Premises, which shall equal Six Thousand Eight Hundred Ninety Dollars ($6,890) annually, and Five Hundred Seventy Four Dollars and Sixteen Cents ($574.16) monthly. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c).

 

(e)        Tenant shall pay Landlord monthly, in advance, on the first day of each calendar month during the term of this Lease, and pro rata for the fraction of any month, the sum estimated by Landlord to be one-twelfth (1/12th) of Tenant’s share of all Premises Expenses. If at any time and from time to time it is determined by Landlord that Tenant’s estimated payments will be insufficient to pay Tenant’s share of such Premises Expenses, the Landlord shall have the right to adjust the amount of Tenant’s estimated payments upon thirty (30) days prior written notice, and Tenant agrees to thereafter pay the adjusted estimated payment on a monthly basis.

 

(f)         Within ninety (90) days after the end of each calendar year, Landlord shall deliver to Tenant (i) a written itemization of Expenses for the prior Lease year and (ii) an estimate of the then current Lease year’s Expenses and Tenant’s share of the Premises Expenses. An adjustment shall be made between the aggregate total of Tenant’s share of estimated Premises Expenses actually paid by Tenant during the prior Lease year, and Tenant’s share of Premises Expenses actually incurred during the prior Lease year, so that Landlord shall reimburse Tenant for any excess paid by Tenant, and Tenant shall pay any deficiency to Landlord within ten (10) days of demand. If Tenant disagrees with the accuracy of the Expenses as set forth in Landlord’s itemization statement, Tenant shall give written notice to Landlord to that effect, but shall nevertheless make payment in accordance with the terms of this Paragraph.

 

(g)        Landlord shall permit Tenant to inspect its records with respect to the Expenses at a mutually convenient time and place. Any information obtained by Tenant pursuant to the provisions of this Paragraph shall be treated as confidential, except in any litigation between the parties.

 

(h)       If due to a change in the laws presently governing taxation, any franchise tax or tax on income, profit, rentals or occupancies from or of the Premises shall be levied or imposed against the Landlord in lieu of any tax or assessment that would otherwise constitute a real estate tax, such franchise, income, profit tax or tax on rentals shall be deemed to be a real estate tax and included as part of the Expenses.

 

5.                  USE.   The Premises shall be used only for the purpose of operating a general business office. Tenant will not use, and will not permit the use of, the Premises for any purpose which is unlawful or in violation of any statute, ordinance, rule, regulation or restriction governing the use of the Premises.

 

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employees and visitors to park their cars only in those portions of the parking area as may be designated for that purpose by Landlord, and not use or permit the use of any more designated parking spaces in the parking area than are permitted in Paragraph 1 herein.

 

(h)            Promptly upon request of Landlord’s Lender, deliver to Landlord’s lender copies of Tenant’s annual financial statements for the past two (2) years.

 

8.                  NEGATIVE COVENANTS OF TENANT. Tenant covenants and agrees that it will do none of the following without the prior written consent of Landlord, such consent not to be unreasonably withheld or delayed:

 

(a)            Place or allow to be placed any sign, projection or device upon the Premises or on the inside or outside of the Building, which is visible from the exterior of the Premises;

 

(b)            Make any alterations, improvements or additions to the Premises without consent of Landlord.  All alterations, improvements, additions or fixtures, whether installed before or after the execution of this Lease, shall remain upon the Premises at the expiration or sooner termination of this Lease and become the property of Landlord, Landlord should have the right to cause Tenant to remove improvements beyond fit-up at termination of Lease, unless Landlord, at the time of its approval of same, shall have given written notice to Tenant to remove the same, in which event Tenant shall remove such alterations, improvements and additions or fixtures, and restore the Premises to the same good order and condition in which they were upon initial occupancy, reasonable wear and tear and damage by casualty excepted; and

 

(c)             Do or suffer to be cone any act objectionable to any insurance company whereby the insurance or any other insurance now in force or hereafter placed on the Premises or the Building shall become void or suspended, or whereby the same shall be rated as a more hazardous risk than at the date of signing of this Lease. In case of a breach of this covenant (in addition to all other remedies herein given to Landlord) Tenant agrees to pay Landlord as additional rent any and all increases of premiums on insurance reasonably carried by Landlord on the Premises or the Building caused in any way by the use or occupancy of the Premises by the Tenant.

 

9.                  LANDLORD’S RIGHT TO ENTER. Tenant shall permit, after written notice except in cases of emergency, Landlord, Landlord’s agents, servants, employees, and prospective buyers or any other persons authorized by Landlord, to inspect the Premises at any reasonable time, and to enter the Premises for the Purposes of cleaning and, if Landlord shall so elect, for making reasonable alterations, improvements or repairs to the Building, for any reasonable purpose in connection with the operation and maintenance of the Building, and, during the last six (6) months of the term of this Lease, for the purpose of exhibiting the same for sale or lease.

 

10.           RELEASE OF LANDLORD. Tenant shall be responsible for and hereby relieves Landlord from any and all liability by reason of any injury, loss, damage, to any person or property in the Premises, whether the same be due to fire, breakage, leakage, water flow, gas, use, misuse, or defects therein, or condition anywhere

 

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in the Premises, failure of water supply or light or power or electricity, wind, lightning, storm, or any other cause whatsoever, whether the loss, injury or damage be to the person or property of Tenant or any other persons, unless such loss, injury or damage is caused by the negligence or willful misconduct of Landlord, its agents or employees.

 

11.         ASSIGNMENT AND SUBLETTING. Except as otherwise provided in the immediately following sentence, Tenant shall not assign, mortgage or pledge this Lease, or sublet the Premises or any part thereof, or permit any other person or occupy the Premises or any part thereof, without the prior written consent of Landlord, such consent not to be unreasonably withheld or delayed. Such prior consent shall not be required of Tenant makes an assignment or sublease to a subsidiary or affiliate or other corporation or partnership which is controlled by Tenant or Tenant’s principals, provided that prior to taking possession of any part of the Premises, such assignee or sublessee shall sign an assumption agreement in form satisfactory to Landlord, whereby such assignee or sublessee agrees to be bound by the terms and conditions of this Lease. Any such assignment or subletting, even with the consent of Landlord, shall not release Tenant from liability for payment of rent or any other charges hereunder or from any of the other obligations under this Lease, and any additional consideration resulting from an assignment or subletting requiring Landlord’s prior consent in excess of the rent specified herein shall be additional rent hereunder due and payable to Landlord. The acceptance of rent from any other obligations under this Lease, and any additional consideration resulting from an assignment or subletting requiring Landlord prior consent in excess of the rent specified herein shall be additional rent hereunder due and payable to Landlord. The acceptance of rent from any other person shall not be deemed to be a waiver of any of the provisions of this Lease or to be a consent to an assignment or subletting. Upon any assignment of this Lease or subletting of the Premises, a change in any respect of the use of the Premises from the use actually employed by the original Tenant shall require the prior written consent of Landlord.

 

12.         ENVIRONMENTAL COMPLIANCE. Tenant shall not cause or permit any hazardous substance, material or waste (as defined in any applicable environmental law, rule or regulation) to be brought upon or used in or about the Premises. Tenant shall cause the Premises to be used in compliance with all applicable environmental laws, rules and regulations. Any failure of Tenant to comply with the covenants contained in this paragraph shall be covered by the indemnification provisions of Paragraph 14 herein and shall be subject to all other rights and remedies available to Landlord.

 

13.         INDEMNIFICATION.

 

(a)   Tenant agrees to indemnify Landlord against loss and save Landlord harmless from and against (a) any breach or default in the performance of any covenant or agreement to be performed by Tenant under the terms of this Lease, (b) any and all claims arising from anything done in or about The Premises during the term of this Lease by Tenant or any or its agents, contractors, servants, employees, invitees or license,(c) any act or negligence

 

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of Tenant or any of its agents, contractors, servants, employees, invitees or licensees, including any accident, injury or damage whatsoever caused to any person, in or about the Premises. and (d) all costs, reasonable counsel fees, expenses and liabilities incurred in connection with any such claim for which indemnification has been provided under this paragraph. In case any action or proceeding shall be brought against Landlord by reason of any such claim, Tenant, upon notice from Landlord, shall provide Landlord with counsel to defend such action or proceeding. Tenant shall, within ten (10) days following notice to it of any claim of a third party relating to tenant’s use or occupancy of the Premises or to the performance or non-performance by tenant of its obligations under this Lease, give written notice to the Landlord of such claim. The provisions of this paragraph shall survive the expiration or termination of this lease.

 

(b)   Landlord agrees to indemnify Tenant against loss and save Tenant harmless from and against (i) any breach or default in the performance of any covenant or agreement to be performed by Landlord under the terms of this Lease, (ii) any claims arising from anything done on or about the Land (other than the Premises) during the term of this Lease by Landlord or any of its agents, contractors, servants, employees, invitees or licensees, (iii) any act or negligence of Landlord or any of its agents, contractors, servants, employees, invitees or licensees, including any accident, injury or damage whatsoever caused to any person in or about the Land (other than the Premises), and (iv) all costs, reasonable counsel fees, expenses and liabilities incurred in connection with any such claim for which indemnification has been provided under this paragraph. In case any action or proceeding shall be brought against Tenant by reason of any such claim, Landlord, upon notice from Tenant, shall provide Tenant with counsel to defend such action or proceeding. Landlord shall, within ten (10) days following notice to it of any claim of a third party relating to the Land (other than the Premises) or the performance or non-performance by Landlord of its obligations under this Lease, give written notice to Tenant of such claim. The provisions of this paragraph shall survive the expiration or termination of this Lease.

 

14.          LIABILITY INSURANCE.

 

(a)      Tenant, at its own cost and expense, shall obtain during the term of this Lease, and any renewals or extensions thereof, comprehensive public liability insurance in companies acceptable to Landlord, naming Landlord and Tenant as the insureds, in an amount not less than One Million Dollars ($1,000,000.00), and providing for at least thirty (30) days’ prior written notice to Landlord of cancellation, nonrenewal, or modification.

 

(b)      Prior to its occupancy of the Premises, Tenant shall deliver to Landlord a certificate evidencing such insurance policy. At least thirty (30) days before the expirations of such policy and any renewal policies, Tenant shall deliver to Landlord certificates evidencing such renewal policies.

 

15.          FIRE OR OTHER CASUALTY.

 

(a)   If during the term of this Lease or any renewal or extension thereof, the Premises or the building is substantially destroyed or is so damaged by fire or other casualty (whether or

 

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not the Premises are damaged) that the same cannot be repaired or restored within one hundred twenty (120) regular working days from the date of the happening of such damage, or if such damage or casualty is not included in the risks covered by Landlord’s fire insurance with the usual extended coverage, then this Lease shall absolutely cease and terminate and the rent shall abate for the balance of the term. In such case, Tenant shall pay the rent apportioned to the date of damage and Landlord may enter upon and repossess the Premises without further notice.

 

(b)   If the damage caused as above renders twenty-five (25%) or more of the Premises unfit for occupancy, but such damage can be repaired or restored within one hundred twenty (120) regular working days and said damage and the cost of repairs and restoration are fully covered by the Landlord’s insurance, Landlord may exercise either of the following options:

 

(i)         Landlord shall have the option to restore the Premises in which event the rent shall be apportioned during the time Landlord is in possession, taking into account the proportion of the Premises rendered untenantable and the duration of Landlord’s possession.

 

(ii)           Landlord shall have the option to terminate this Lease by giving written notice of such termination to Tenant within thirty (30) days after said partial destruction; and upon the giving of such notice, the Lease shall expire by lapse of time after thirty (30) days and the Tenant shall vacate the Premises.

 

(c)   If the damage caused as above renders less than twenty-five percent (25%) of the Premises unfit for occupancy, Landlord shall repair whatever portion of the Premises that may have been damaged by fire or other casualty insured as aforesaid, and the rent shall be apportioned as set forth in subparagraph (b) (i) above.

 

(d)   In the event Landlord elects to restore the Premises as set forth in this paragraph 15, and fails to complete such restoration within one hundred and twenty (120) days from the date of the happening of such damage, Tenant shall have the right, upon thirty (30) days prior notice to Landlord, to terminate this Lease. Should Landlord complete said restoration prior to said termination date, termination shall be null and void.

 

16.         WAIVER OF SUBROGATION. Landlord and Tenant shall each endeavor to procure an appropriate clause in, or endorsement on, any fire and extended coverage insurance covering the Premises and buildings and personal property, fixtures, and equipment located thereon or therein, pursuant to which the insurance companies waive subrogation or consent to a waiver of right of recovery. Each party hereto hereby agrees that it will no make any claim against or seek to recover from the other for any loss or damage to its property or the property of others resulting from fire or other hazards covered by such fire and extended coverage insurance except as expressly provided in this Lease; provided, however, that the release, discharge, exoneration, and covenant not to sue herein contained shall be limited by the terms and provisions of the waiver of subrogation clauses and/or endorsements consenting to a waiver of right of recovery and shall be coextensive therewith.

 

17.         NO IMPLIED EVICTION. Notwithstanding any inference to the contrary herein contained, it is understood that, the exercise by

 

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Landlord of any of its rights hereunder shall never be deemed an eviction (constructive or otherwise) of Tenant, of a disturbance of its use of the Premises, and shall in no event render Landlord liable to tenant or any other person, so long as such exercise of rights is in accordance with the foregoing terms and conditions.

 

18.         CONDEMNATION. If the whole of the Premises shall be acquired or condemned by eminent domain, then the term of this Lease shall cease and terminate sixty (60) days prior to the date on which possession of the Premises is required to be surrendered to the condemning authority. All rent shall be paid up to the date of termination. A partial condemnation shall not be cause for termination of this Lease, but rent shall be abated to an equitable amount. Tenant hereby expressly waives any right or claim to any part of an condemnation award or damages and hereby assigns to Landlord any such right or claim to which Tenant might become entitled.

 

19.         LANDLORD’S RIGHT TO PAY TENANT EXPENSES. If Tenant shall ar any time fail to pay any utility or other charges or to take our, pay for, maintain or deliver any of the insurance policies provided for herein, or shall fail to make any other payment or perform any under this Lease, then without waiving, or releasing Tenant from, any obligations of Tenant contained in this Lease, Landlord may, upon ten (10) days prior written notice to Tenant (except in the event of an emergency) but shall not be obligated to pay any such charge, effect any such insurance coverage and pay premiums manner and to such extent as shall be necessary. In exercising any such rights, Landlord may pay necessary and incidental costs and expenses, employ counsel and incur and pay reasonable attorney’s fee. All sums so paid by Landlord and all necessary and incidental costs and expenses in connection with the performance of any such act by Landlord, together with interest thereon at the rate of nine percent (9%) per annum from the date of the making of such expenditure by Landlord, shall be deemed additional rent hereunder and, except as otherwise expressly provided in this Lease, shall be payable to Landlord after five (5) days’ written notice thereof. Tenant covenants to pay any such sum or sums with interest as aforesaid and Landlord shall have (in addition to any other right or remedy of the Landlord) the same rights and remedies in the event of nonpayment thereof by Tenant as in the case if default by Tenant in the payment of rent.

 

20.         EVENTS OF DEFAULT. The occurrence of each of the following events shall be an “Event of Default” hereunder:

 

(a)      Tenant does not pay in full when due any installment of rent, additional rent, or any other charges, expenses or costs herein agreed to be paid by Tenant for a period of five (5) days after receipt of notice that same has not been paid when due; provided that in the event Tenant shall have received three (3) such written notices within any period of twelve (12) consecutive months, then during the remainder of the twelve (12) consecutive month period after Tenant shall have received its first written notice from Landlord, Tenant shall thereafter be in default hereunder whenever Tenant shall fail to pay any sum owing under this Lease when due, without the necessity of sending any written notice on nonpayment;

 

(b)      Tenant violates or fails to perform or comply with any other term, covenant, condition, or agreement herein contained

 

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and fails to cure such default within thirty (30) days of receipt of notice thereof from Landlord, provided, however, if such default cannot be cured with reasonable diligence within such thirty (30) day period, the time for cure of same shall be deemed extended for such additional time as is reasonably necessary to cure same with due diligence.

 

(c)      Tenant vacates the Premises;

 

(d)      Tenant shall file a voluntary petition in bankruptcy or shall be adjudicated a bankrupt or insolvent or shall file any petition or answer seeking any reorganization, arrangement, recapitalization, readjustment, liquidation or dissolution or similar relief under any present or future bankruptcy laws of the United States or any other country or political subdivision thereof, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver, or liquidator of all or any substantial part of Tenant’s properties, or shall make an assignment for the benefit of creditors, or shall admit in writing Tenant’s inability to pay Tenant’s debts generally as they become due; or

 

(e)      If an involuntary petition in bankruptcy shall be filed against Tenant seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future bankruptcy laws of the United States or any other state or political subdivision thereof, and if within ninety (90) days after the commencement of any such proceeding against Tenant, such proceedings shall not have been dismissed, or if, within ninety (90) days after the appointment, without the consent or acquiescence of Tenant, or any trustee, receiver or liquidator of the Tenant or of all or any substantial part of Tenant’s property, such appointment shall not have been vacated or stayed on appeal or otherwise, or if, within sixty (60) days after the expiration of any such stay, such appointment shall not have been vacated.

 

21.         LANDLORD’S REMEDIES.

 

(a)      Upon the occurrence of any Event of Default, Landlord may, at its option, terminate this Lease, whereupon the estate hereby vested in Tenant shall cease and any and all other right, title and interest of Tenant hereunder shall likewise cease without notice or lapse of time, as fully and with like effect as if the entire term of this Lease had elapsed, but Tenant shall continue to be liable to Landlord as hereinafter provided.

 

(b)      Upon the occurrence of any Event of Default, or at any time thereafter, Landlord, in addition to and without prejudice to any other rights and remedies Landlord shall have at law or in equity, shall have the right to re-enter the Premises, and recover possession thereof and dispossess any or all occupants of the Premises in the manner prescribed by the statute relating to summary proceedings, or similar statutes, but Tenant in such case shall remain liable to Landlord as hereinafter provided.

 

(c)      In case of any Event of Default, re-entry, expiration and/or dispossession by summary proceedings, whether or not this Lease shall have been terminated as aforesaid:

 

(i)         All delinquent rent and additional rent shall become payable thereupon and be paid up to the time of such re-entry, expiration and/or dispossession;

 

(ii)           Landlord shall have the right, but not the obligation, to relet the Premises or any part or parts thereof for the account of Tenant, either in the name of Landlord or otherwise,

 

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for a term or terms which may, at Landlord’s option, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease and to grant reasonable concessions for rent, costs, brokerage fees and attorneys’ fees;

 

(iii)                     Tenant shall reimburse Landlord for any expenses that Landlord may incur in connection with recovering possession of the Premises and any reletting thereof, such as court costs, attorneys’ fees, brokerage fees, and the costs of advertising and the costs of any alteration, repairs, replacements and/or decorations in or to the Premises as Landlord, in Landlord’s sole judgment, considers advisable and necessary for the purpose of such reletting of the Premises; and the making of such alterations, repairs, replacements and/or decorations shall not operate or be construed to release Tenant from liability hereunder as aforesaid; and

 

(iv)                    Tenant or the legal representatives of Tenant, at Landlord’s options, shall pay Landlord, either (1) in monthly installments, the difference between the rent and the additional rent reserved hereunder and the rent, if any, received by Landlord pursuant to any reletting, or (2) liquidated damages and not a penalty in an amount equal to the rent which should have become due during the remainder of the term of this Lease and an estimate of the additional rent which would have become due during the remainder of the term of this Lease (calculated by using the additional rent paid by Tenant for the immediately preceding Lease year), reduced to present value at the rate of nine (9%) percent per annum.

 

(d)                            If Tenant defaults (after the expiration of applicable notice and/or cure periods) on any payment of additional rent required to be make by it under this Lease, or fails (after the expiration of applicable notice and/or cure periods) to furnish evidence of such payments at the times in this Lease required, Landlord may make such payment for Tenant without notice. If Tenant defaults (after the expiration of applicable notice and/or cure periods) in the performance or observance of any non-monetary term, covenant or condition to be performed or observed by it under this Lease, Landlord may take action to rectify such non-monetary default on Tenant’s behalf. Landlord may rectify such default (after the expiration of applicable notice and/or cure periods) on Tenant’s behalf immediately and without such notice of immediate action is reasonably believed to be required in order to avoid injury or damage to other persons or property (including Landlord’s property). Landlord may enter the Premises to rectify such defaults. All money advanced and expenses incurred by Landlord in rectifying any defaults (after the expiration of applicable notice and/or cure periods) (including Landlord’s attorneys’ fees) together with interest thereon at 9% per annum from the date advanced until the date paid by Tenant, shall be repaid by Tenant to Landlord on demand.

 

(e)                             In the event Tenant commits a default, or suffers a default to exist, Tenant shall reimburse Landlord for Landlord’s reasonable attorneys’ fees incurred by Landlord in the enforcement of this Lease, within fifteen (15) days after written demand.

 

(f)                              Landlord shall use commercially reasonable efforts to mitigate its damages.

 

22.                               RIGHT OF ASSIGNEE OF LANDLORD. The right to enforce all of the provisions of this Lease may be exercised by any assignee of the Landlord’s right, title and interest in this Lease in its, his,

 

11

 

her or their own name, and Tenant hereby expressly waives the requirements of any and all laws regulating the manner and/or form in which such assignments shall be executed and witnessed.

 

23.                               REMEDIES CUMULATIVE. All remedies given to Landlord herein and all rights and remedies given to Landlord by law and equity shall be cumulative and concurrent. No termination of this Lease, or taking or recovering of possession of the Premises, or entry of any judgment either for possession or for any money claimed to be due Landlord, shall deprive Landlord of any other action against Tenant for possession, or for any money due Landlord hereunder, or for damages hereunder. The exercise of or failure to exercise any remedy shall not bar or delay the exercise of any other remedy.

 

24.                               TENANT’S WAIVERS.

 

(a)                            If proceedings shall be commenced by Landlord to recover possession of the Premises, either at the end of the term hereof or by reason of an Event of Default or otherwise, Tenant expressly waives all rights to notice in excess of five days required by any Act of Assembly, including the Act of April 6, 1951, P.L. 69, Art. V, Sec. 501 and agrees that in either or any such case five (5) days’ notice shall be sufficient. Without limitation of or by the foregoing, Tenant hereby waives any and all demands, notices of intention, and notice of action or proceedings which may be required by law to be given or taken prior to any entry or re-entry by summary proceedings, ejectment or otherwise, by Landlord, except as hereinbefore expressly provided with respect to five (5) days’ notice.

 

(b)                            Any notice to quit required by law previous to proceedings to recover possession of the Premises or any notice of demand for rent on the day when such is due and the benefit of all laws granting stay of execution, appeal, inquisition and exemption are hereby waived by Tenant; provided, however, that nothing in this paragraph shall be construed as a waiver of any notice specifically mentioned or required by any other part of this Lease.

 

(c)                             In the event of a termination of this Lease prior to the date of expiration herein originally fixed, Tenant hereby waives all right to recover or regain possession of the Premises, to save forfeiture by payment of rent due or by other performance of the conditions, terms or provisions hereof, and, without limitation of or by the foregoing, Tenant waives all right to reinstate or redeem this Lease notwithstanding any provisions of any statute, law or decision now or hereafter in force or effect and Tenant waives all right to any second or further trial in summary proceedings, ejectment or in any other action provided by any statute or decision now or hereafter in force or effect.

 

25.                               ATTORNMENT. In the event of the sale or assignment of Landlord’s interest in the Building or in the event of exercise of the power of sale under any mortgage made by Landlord covering the Building, Tenant shall attorn to the purchaser and recognize such purchaser as Landlord under this Lease.

 

26.                               SUBORDINATION. At the option of Landlord or Landlord’s lender, or both of them, this Lease and the Tenant’s interest hereunder shall be subject and subordinate at all times to any mortgage or mortgages, deed or deeds of trust, or such other security instrument or instruments, including all renewals,

 

12

 

extensions, consolidations, assignments and refinances of the same, as well as all advances made upon the security thereof, which now or hereafter become liens upon the Landlord’s fee and/or leasehold interest in the Premises, and/or any and all of the buildings now or hereafter erected or to be erected and/or any and all of the Land, provided, however, that in such case, the holder of such other security, the trustee of such deed of trust or holder of such other security instrument shall agree that this Lease shall not be divested or in any way affected by foreclosure or other default proceedings under said mortgage, deed or trust, or other instrument or other obligations secured thereby, so long as no Event of Default occurs by Tenant under the terms of this Lease; and agrees that this Lease shall remain in full force and effect notwithstanding any such default proceedings.

 

27.                          EXECUTION OF DOCUMENTS. The above subordination shall be self-executing, but Tenant agrees within twenty (20) days after demand to execute such other reasonable document or documents as may be required by mortgagee, trustee under any deed of trust, or holder of a similar security interest, or any party to the types of documents enumerated herein for the purpose of subordinating this Lease in accordance with the forgoing. Additionally, Landlord agrees to execute a Landlord waiver, for furnishings and equipment only, in favor of any Lender of the Tenant or Owner of furnishings and equipment.

 

28.                          ESTOPPEL AGREEMENTS. Tenant shall execute an estoppel agreement in favor of any mortgagee or purchaser of Landlord’s interest herein, within ten (10) business days after requested to do so by Landlord or any such mortgagee or purchaser. Such estoppel agreement shall be in the form reasonably requested by Landlord or such mortgagee or purchaser.

 

29.                          NOTICES. All notices required to be given by either party to the other shall be in writing. All such notices shall be deemed to have been given upon delivery in person, or two (2) business days after depositing in the United States mail, by certified mail, return receipt requested, postage prepaid, or by delivery by telefax, facsimile or telegraph, or by Federal Express or other nationally recognized overnight delivery service, addressed to Landlord at 825 Berkshire Boulevard, Suite 203, Wyomissing, Pennsylvania 19610 and addressed to Tenant at the Premises or to such other address which either party may hereafter designate in writing by notice given in a like manner.

 

30.                          BINDING EFFECT. All rights and liabilities herein given to, or imposed upon the respective parties hereto, shall extend to and bind the several and respective heirs, executors, administrators, successors and permitted assigns of said parties.

 

31.                          SURVIVAL OF VALID TERMS. If any provision of the Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

32.                          ENTIRE AGREEMENT. This Lease and any exhibit, rider or addendum that may be attached hereto set forth all the promises, agreements, conditions and understandings, between Landlord and

 

13

 

Tenant relative to the Premises, and there are no promises, agreements, conditions or understandings either oral or written between them other than are herein set forth. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Lease shall be binding upon Landlord or Tenant unless reduced to writing and signed by them.

 

33.                          PROHIBITION AGAINST RECORDING. This Lease shall not be recorded and any attempted recording of this Lease shall constitute an Event of Default hereunder.

 

34.                          INTERPRETATION. As used in this Lease and when required by context, each number (singular or plural) shall include all numbers, and each gender shall include all genders. Time is and shall be of essence of each term and provision of this Lease. The term “person” as used herein means person, firm, association or corporation, as the case may be. If Tenant is more than one person, all agreements, conditions, obligations, covenants, warrants of attorney, waivers and releases made by Tenant shall be joint and several, and shall bind and affect all persons who are defined as “Tenant” herein.

 

35.                          LIABILITY OF LANDLORD. The term “Landlord” as used herein means the fee owner of the Premises from time to time. In the event of the voluntary or involuntary transfer of such ownership to a successor-in-interest of the Landlord, the Landlord shall be automatically discharged and relieved of and from all liability and obligations hereunder which shall thereafter accrue, and Tenant shall look solely to such successor-in-interest for the performance and obligations of the Landlord hereunder which shall thereafter accrue. The liability of Landlord and its successors-in-interest under or with respect to this Lease shall be strictly limited to and enforceable solely out of its or their interest in the Premises and shall not be enforceable out of any other assets.

 

36.                          CAPTIONS AND HEADINGS. The captions and headings of the paragraphs contained herein are for convenience of reference only and in no way defining, limit, describe, modify or amplify the interpretation, construction or meaning of any provisions of or the scope or intent of this Lease nor in any way affect this Lease. All Exhibits are an integral part of this Lease and are attached hereto.

 

37.                          QUIET ENJOYMENT. Upon Tenant’s compliance with the provisions of this Lease, including the payment of all rent and additional rent hereunder, Tenant shall peaceably hold and enjoy the Premises during the term hereof without hinderance or interruption by Landlord or any person claiming under Landlord.

 

38.                          DISCLAIMER. The obligations under this Lease are the obligations of the Lessee personally and not that of any company with which Lessee may be affiliated. Lessor agrees that this Agreement is solely between itself and the Lessee personally and Lessor hereby waives any claims, rights of action, or liabilities whatsoever against any companies with which Lessee may be affiliated which may arise out of this Lease.

 

39.                          TERMINATION BY LANDLORD. Landlord shall have an option to terminate this Lease at any time upon exercise by Marathon Business

 

14

 

Systems of its option to expand into Premises. Landlord shall require Peter Carlino Company to vacate its offices in part or whole prior to exercising this option with Tenant.

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound to the terms of this Lease, have caused this Lease to be executed the day and year first above written.

 

	
 
    	
 
    	
WYOMISSING   PROFESSIONAL CENTER, III, LIMITED PARTNERSHIP, a Pennsylvania limited   partnership, by its General Partner:  
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WYOMISSING   PROFESSIONAL CENTER, III, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/ Stephen J. Najarian
    
	
 
    	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attest:
    	
 
    
	
 
    	
 
    	
 
    	
(Asst.) Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
“Landlord”
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PENN   NATIONAL GAMING, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/ Robert S. Ippolito
    
	
 
    	
 
    	
 
    	
(Vice) President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attest:
    	
Robert S. Ippolito
    
	
 
    	
 
    	
 
    	
Secretary (or Asst. Secretary)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
“Tenant”
    

 

1

 

Exhibit “A”

 

 

 

EXHIBIT “B”

 

OPERATING EXPENSE BUDGET

 

	
CATEGORY
    	
 
    	
P.S.F.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Real estate taxes
    	
 
    	
$
    	
1.30
    	
 
    
	
Janitorial
    	
 
    	
.75
    	
 
    
	
Insurance
    	
 
    	
.18
    	
 
    
	
Sewer & water
    	
 
    	
.09
    	
 
    
	
Trash removal
    	
 
    	
.10
    	
 
    
	
HVAC & building repair &   maintenance
    	
 
    	
.08
    	
 
    
	
Management
    	
 
    	
.30
    	
 
    
	
Lawn & bed maintenance
    	
 
    	
.22
    	
 
    
	
Snow removal
    	
 
    	
.10
    	
 
    
	
Parking electric
    	
 
    	
.13
    	
 
    
	
TOTAL:
    	
 
    	
$
    	
3.25
    	
 
    

 

 

PETER CARLINO COMPANY & RELATED DEVELOPMENT COMPANIES

 

CASH SOURCES & USES                          DATE:           04-Apr-95

 

I. OFFICE CAMPUSES/ COMMERCIAL

 

A. WYOMISSING PROF. CENTER

 

A3. WYO. PROF. CENTER III, LP 
 825 BERKSHIRE BLVD.

 

SOURCES:

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1994
    	
 
    	
1994
    	
 
    	
1995
    	
 
    	
1995
    	
 
    
	
TENANTS
    	
 
    	
USABLE
    	
 
    	
RENTABLE
    	
 
    	
 
    	
 
    	
LEASE RATE
    	
 
    	
LEASE REVENUE
    	
 
    	
LEASE RATE
    	
 
    	
LEASE REVENUE
    	
 
    
	
SMITH BARNEY
    	
 
    	
7,456
    	
 
    	
8,772
    	
 
    	
 
    	
 
    	
$
    	
18.50
    	
 
    	
$
    	
162,282
    	
 
    	
$
    	
18.50
    	
 
    	
$
    	
162,282
    	
 
    
	
FIRST VALLEY   BANK
    	
 
    	
1,400
    	
 
    	
1,610
    	
 
    	
 
    	
 
    	
$
    	
13.00
    	
 
    	
$
    	
20,930
    	
 
    	
$
    	
14.00
    	
 
    	
$
    	
22,540
    	
 
    
	
MARATHON BUSINES
    	
 
    	
3,130
    	
 
    	
3,683
    	
 
    	
 
    	
 
    	
$
    	
12.75
    	
 
    	
$
    	
46,958
    	
 
    	
$
    	
14.15
    	
 
    	
$
    	
52,114
    	
 
    
	
ALLSTATE INS.
    	
 
    	
600
    	
 
    	
700
    	
 
    	
 
    	
 
    	
$
    	
12.86
    	
 
    	
$
    	
9,002
    	
 
    	
$
    	
13.11
    	
 5/15
    	
$
    	
9,111
    	
 
    
	
FOX THEATRES
    	
 
    	
1,780
    	
 
    	
2,095
    	
 
    	
 
    	
 
    	
$
    	
17.57
    	
 
    	
$
    	
36,809
    	
 
    	
$
    	
17.57
    	
 
    	
$
    	
36,809
    	
 
    
	
OCCUPIED
    	
 
    	
14,366
    	
 
    	
16,860
    	
 
    	
80
    	
%
    	
$
    	
14.94 
    	
AVG
    	
$
    	
275,981
    	
 
    	
$
    	
15.47 
    	
AVG
    	
$
    	
282,857
    	
 
    
	
VACANCY ADJ.
    	
 
    	
0
    	
 
    	
0
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
(6,782
    	
)
    	
 
    	
 
    	
$
    	
0
    	
 
    
	
TOTAL BLDG.
    	
 
    	
17,970
    	
 
    	
21,100
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
269,199
    	
 
    	
 
    	
 
    	
$
    	
282,857
    	
 
    

 

 

PETER CARLINO COMPANY & RELATED DEVELOPMENT COMPANIES

 

CASH SOURCES & USES                           DATE:          04-Apr-95

 

I. OFFICE CAMPUSES/ COMMERCIAL

 

A. WYOMISSING PROF. CENTER

 

A3. WYO. PROF. CENTER III, LP 
 825 BERKSHIRE BLVD.

 

SOURCES:

 

	
TENANTS
    	
 
    	
USABLE
    	
 
    	
RENTABLE
    	
 
    	
 
    	
 
    	
1994
   LEASE RATE
    	
 
    	
1994
   LEASE REVENUE
    	
 
    	
1995
   LEASE RATE
    	
 
    	
1995
   LEASE REVENUE
    	
 
    
	
SMITH BARNEY
    	
 
    	
7,456
    	
 
    	
8,772
    	
 
    	
 
    	
 
    	
$
    	
18.50
    	
 
    	
$
    	
162,282
    	
 
    	
$
    	
18.50
    	
 
    	
$
    	
162,282
    	
 
    
	
FIRST VALLEY   BANK
    	
 
    	
1,400
    	
 
    	
1,610
    	
 
    	
 
    	
 
    	
$
    	
13.00
    	
 
    	
$
    	
20,930
    	
 
    	
$
    	
14.00
    	
 
    	
$
    	
22,540
    	
 
    
	
MARATHON BUSINES
    	
 
    	
3,130
    	
 
    	
3,683
    	
 
    	
 
    	
 
    	
$
    	
12.75
    	
 
    	
$
    	
46,958
    	
 
    	
$
    	
14.15
    	
 
    	
$
    	
52,114
    	
 
    
	
ALLSTATE INS.
    	
 
    	
600
    	
 
    	
700
    	
 
    	
 
    	
 
    	
$
    	
12.86
    	
 
    	
$
    	
9,002
    	
 
    	
$
    	
13.11 5/15
    	
 
    	
$
    	
9,111
    	
 
    
	
FOX THEATRES
    	
 
    	
1,780
    	
 
    	
2,095
    	
 
    	
 
    	
 
    	
$
    	
17.57
    	
 
    	
$
    	
36,809
    	
 
    	
$
    	
17.57
    	
 
    	
$
    	
36,809
    	
 
    
	
OCCUPIED
    	
 
    	
14,366
    	
 
    	
16,860
    	
 
    	
80
    	
%
    	
$
    	
14.94 
    	
AVG
    	
$
    	
275,981
    	
 
    	
$
    	
15.47 
    	
AVG
    	
$
    	
282,857
    	
 
    
	
VACANCY ADJ.
    	
 
    	
0
    	
 
    	
0
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
(6,782
    	
)
    	
 
    	
 
    	
$
    	
0
    	
 
    
	
TOTAL BLDG.
    	
 
    	
17,970
    	
 
    	
21,100
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
269,199
    	
 
    	
 
    	
 
    	
$
    	
282,857
    	
 
    

 

 

FIRST AMENDMENT TO COMMERCIAL LEASE AGREEMENT

 

THIS FIRST AMENDMENT TO COMMERCIAL LEASE AGREEMENT (the “First Amendment”), made the 15th day of April, 1997, by and between WYOMISSING PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited partnership (the “Landlord”), having an address at 825 Berkshire Boulevard, Suite 203, Wyomissing, PA 19610, and PENN NATIONAL GAMING, INC. (the “Tenant”), having an address at 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610.

 

BACKGROUND

 

On or about April 1, 1995, Tenant and Wyomissing Professional Center III, Limited Partnership (“Landlord”) entered into a Lease Agreement (the “Lease”) pertaining to 2,120 square feet of rentable area in the building constructed at 825 Berkshire Boulevard, Wyomissing, Pennsylvania. This Amendment will adjust area of the Premises.

 

NOW, THEREFORE, in consideration of the foregoing Background, and each party intending to be legally bound hereby, Landlord and Tenant covenant and agree as follows:

 

AGREEMENT

 

1.                                      Paragraph 1 of the Lease is amended to read as follows:

 

1.  PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord 2,644 square feet of rentable floor area (the “Premises”) in the building identified as in Exhibit “A” of this First Amendment and made a part hereof. The Premises are on the second floor of a building having an address of 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610 (the “Building”), located on a parcel of land containing approximately 11 acres (the “Land”). In connection with its use of the Premises, Tenant shall have the right to use for its employees twelve undesignated and two designated parking spaces in the parking area adjacent to the Building and such other undesignated parking spaces as may be reasonably required for the conduct of its business.

 

All other references to the area of the Premises in the Lease are hereby amended to mean the square footage figures as stated hereinabove.

 

1

 

3.                                 Effective October 1, 1996, Paragraph 3(a) of the Lease shall be amended to read as follows:

 

(b)  During the remainder of the second year of the term of this Lease, Tenant shall pay Landlord annual minimum rent in the amount of Twenty Nine Thousand Nine Hundred Fifty Six Dollars and Fifty Two Cents ($29,956.52), payable in twelve (12) equal monthly installments of Two Thousand Four Hundred Ninety Six Dollars and Thirty Seven Cents ($2,496.37). Such annual minimum rent is calculated on the basis of $11.33 per square foot of the rentable floor area of the Premises. Each lease year thereafter during the term of this Lease, the annual minimum rent shall be increased by three percent (3%) over the prior year’s annual minimum rent

 

4.                                 Effective October 1, 1996, Paragraph 4(c) of the Lease shall be amended to read as follows:

 

The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 2,644 square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), except that Tenant specific Expenses, including janitorial services, shall be allocated directly to each tenant in the building.

 

5.                                 Effective October 1, 1996, Paragraph 4(d) of the Lease shall be amended to read as follows:

 

Tenant agrees to pay Landlord as additional rent hereunder all Premises Expenses incurred during the term of this Lease. Tenant shall pay $3.25 per square foot of rentable floor area for Premises Expenses. This amount shall equal Eight Thousand Five Hundred Ninety Three Dollars ($8,593.00) each year payable in twelve (12) equal monthly installments of Seven Hundred Sixteen Dollars and Eight Cents ($716.08) each. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c).

 

6.                                 The Tenant shall pay to Landlord, as billed, an amount of Twenty Five Thousand Four Hundred Sixty Seven Dollars and Fifty One Cents ($25,467.51) based on the attached costs for additional interior improvements.

 

2

 

7.                                 Except as hereby amended, the Lease is hereby ratified and confirmed.

 

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

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this First Amendment to be duly executed by their authorized officers the day and year first above written.

 

	
 
    	
WYOMISSING   PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited   partnership by its General Partner:
    
	
 
    
	
 
    	
WYOMISSING   PROFESSIONAL CENTER III, INC.
    
	
 
    
	
 
    	
By:
    	
/s/ Stephen J. Najarian
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    
	
 
    	
Attest:
    	
Stephen J. Najarian
    
	
 
    	
 
    	
Asst. Secretary
    
	
 
    	
 
    	
“Landlord”
    
	
 
    	
 
    	
 
    
	
 
    	
PENN   NATIONAL GAMING, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William J. Bork
    
	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Attest:
    	
/s/ Robert S. Ippolito
    
	
 
    	
 
    	
Secretary
    
	
 
    	
 
    	
“Tenant”
    

 

 

PNG, INC

Expansion Costs

 

	
JOB NAME
    	
 
    	
PENN NATIONAL FIT UP
    	
14167
    
	
 
    	
 
    	
 
    	
 
    
	
JOB DESCRIPTION
    	
 
    	
FOX SPACE
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
DATE
    	
2/12/97
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
JOB NUMBER
    	
95
    	
SQ FT
    	
 
    

 

	
DESCRIPTION
    	
 
    	
CATEGORY 
    	
 
    	
COMMENTS
    	
 
    	
SUBCONTRACTOR
    	
 
    	
TOTAL COST
    	
 
    
	
TAKE   OUT WALLS
    	
 
    	
1140
    	
 
    	
 
    	
 
    	
 
    	
 
    	
850.00
    	
 
    
	
FINISH   CLEANING
    	
 
    	
1146
    	
 
    	
 
    	
 
    	
 
    	
 
    	
250.00
    	
 
    
	
INT   PARTITIONS
    	
 
    	
7010
    	
 
    	
MOVE DOOR & PARTITIONS BACK AT LOBBY
    	
 
    	
 
    	
 
    	
825.00
    	
 
    
	
WINDOWS &   GLASS
    	
 
    	
8010
    	
 
    	
2 - GLASS DOORS AT ENTRANCE
    	
 
    	
 
    	
 
    	
2,844.50
    	
 
    
	
DOORS
    	
 
    	
8020
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2,239.78
    	
 
    
	
DRYWALL
    	
 
    	
9010
    	
 
    	
 
    	
 
    	
 
    	
 
    	
4,281.00
    	
 
    
	
PAINTING
    	
 
    	
9020
    	
 
    	
 
    	
 
    	
 
    	
 
    	
3,140.00
    	
 
    
	
WALLPAPER
    	
 
    	
9020A
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,000.00
    	
 
    
	
SPEC - FIRE EXT
    	
 
    	
10060
    	
 
    	
 
    	
 
    	
 
    	
 
    	
60.00
    	
 
    
	
CARPETING
    	
 
    	
12012
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,450.00
    	
 
    
	
PLUMBING
    	
 
    	
15025
    	
 
    	
 
    	
 
    	
 
    	
 
    	
977.00
    	
 
    
	
HVAC
    	
 
    	
15050
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2,450.00
    	
 
    
	
SPRINKLER
    	
 
    	
15060
    	
 
    	
 
    	
 
    	
 
    	
 
    	
475.00
    	
 
    
	
ELECTRICAL
    	
 
    	
16025
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2,310.00
    	
 
    
	
CONST   ADMINISTRATION
    	
 
    	
17000
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2,315.23
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TOTAL   PROJECT COST
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
25,467.51
    	
 
    

 

 

 

SECOND AMENDMENT TO COMMERCIAL LEASE AGREEMENT

 

THIS SECOND AMENDMENT TO COMMERCIAL LEASE AGREEMENT (the “SECOND AMENDMENT”), made the 30 day of October, 1997, by and between WYOMISSING PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited partnership (the “Landlord”), having an address at 825 Berkshire Boulevard, Suite 203, Wyomissing, PA 19610, and PENN NATIONAL GAMING, INC. (the “Tenant”), having an address at 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610.

 

BACKGROUND

 

On or about April 1, 1995, Tenant and Wyomissing Professional Center III, Limited Partnership (“Landlord”) entered into a Lease Agreement (the “Lease”) pertaining to 2,120 square feet of rentable area in the building constructed at 825 Berkshire Boulevard, Wyomissing, Pennsylvania. On or about April 15, 1997 Tenant and Landlord entered into a First Amendment which increased the rentable square feet to 2,644. This Second Amendment shall increase the rentable and usable square footage.

 

NOW, THEREFORE, in consideration of the foregoing Background, and each party intending to be legally bound hereby, Landlord and Tenant covenant and agree as follows:

 

AGREEMENT

 

1.                                      Paragraph 1 of the Lease is amended to read as follows:

 

1.  PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord 6,183 square feet of rentable floor area (the “Premises”) in the building identified as in Exhibit “A” of this Second Amendment and made a part hereof. The Premises are on the second floor of a building having an address of 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610 (the “Building”), located on a parcel of land containing approximately 11 acres (the “Land”). In connection with its use of the Premises, Tenant shall have the right to use for its employees twenty five (25) undesignated and two designated parking spaces in the parking area adjacent to the Building and such other undesignated parking spaces as may be reasonably required for the conduct of its business.

 

All other references to the area of the Premises in the Lease are hereby amended to mean the square footage figures as stated hereinabove.

 

1

 

2.                                 Paragraph 2 of the Lease is amended to read as follows:

 

2.  TERM. (a) The term of the Lease shall be ten (10) years, commencing on April 1, 1995.

 

All other references to the term of the Lease are hereby amended.

 

3.                                 Effective October 1, 1997, Paragraph 3(a) of the Lease shall be amended to read as follows:

 

(b) During the remainder of the third year of the term of this Lease, Tenant shall pay Landlord equal monthly installments of Five Thousand Nine Hundred Twenty Five Dollars and Thirty Seven Cents ($5,925.37). Such rent is calculated on the basis of $11.50 per square foot of the rentable floor area of the Premises, which is calculated at 6,183 rentable square feet. Each lease year thereafter during the term of this Lease, the annual minimum rent shall be increased by three percent (3%) over the prior year’s annual minimum rent.

 

4.                                 Effective October 1, 1997, Paragraph 4(c) of the Lease shall be amended to read as follows:

 

The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 6,183 rentable square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), except that Tenant specific Expenses, including janitorial services, shall be allocated directly to each tenant in the building.

 

5.                                 Effective October 1, 1997, Paragraph 4(d) of the Lease shall be amended to read as follows:

 

Tenant agrees to pay Landlord as additional rent hereunder all Premises Expenses incurred during the term of this Lease. Tenant shall pay $4.00 per square foot of rentable floor area for Premises Expenses. This amount shall be paid in equal monthly installments of Two Thousand Sixty One Dollars ($2,061) each. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c).

 

6.                                 The Tenant shall pay to Landlord, as billed, an amount of Ninety Thousand Fifty Two Dollars and Thirty Cents ($90,052.30), based on the attached costs for additional interior improvements.

 

7.                                 Except as hereby amended, the Lease is hereby ratified and confirmed.

 

2

 

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

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this Second Amendment to be duly executed by their authorized officers the day and year first above written.

 

	
 
    	
WYOMISSING   PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited   partnership by its General Partner:
    
	
 
    	
 
    
	
 
    	
WYOMISSING   PROFESSIONAL CENTER III, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen J. Najarian
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
Attest:
    	
Stephen J. Najarian
    
	
 
    	
 
    	
Secretary
    
	
 
    	
 
    	
“Landlord”
    

 

 

	
 
    	
PENN   NATIONAL GAMING, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William J. Bork
    
	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Attest:
    	
Robert S. Ippolito
    
	
 
    	
 
    	
Secretary
    
	
 
    	
 
    	
“Tenant”
    

 

 

THIRD AMENDMENT TO COMMERCIAL LEASE AGREEMENT

 

THIS THIRD AMENDMENT TO COMMERCIAL LEASE AGREEMENT (the “THIRD AMENDMENT”), made the 23 day of April, 1998, by and between WYOMISSING PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited partnership (the “Landlord”), having an address at 825 Berkshire Boulevard, Suite 203, Wyomissing, PA 19610, and PENN NATIONAL GAMING, INC. (the “Tenant”), having an address at 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610.

 

BACKGROUND

 

On or about April 1, 1995, Tenant and Wyomissing Professional Center III, Limited Partnership (“Landlord”) entered into a Lease Agreement (the “Lease”) pertaining to 2,120 square feet of rentable area in the building constructed at 825 Berkshire Boulevard, Wyomissing, Pennsylvania. On or about April 15, 1997 Tenant and Landlord entered into a First Amendment which increased the rentable square feet to 2,644. On or about October 30, 1997 Tenant and Landlord entered into a Second Amendment which increased the rentable square feet to 6,183. This THIRD Amendment shall decrease the rentable square footage.

 

NOW, THEREFORE, in consideration of the foregoing Background, and each party intending to be legally bound hereby, Landlord and Tenant covenant and agree as follows:

 

AGREEMENT

 

1.                                      Paragraph 1 of the Lease is amended to read as follows:

 

1.  PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord 5,974 square feet of rentable floor area (the “Premises”) in the building identified as in Exhibit “A” of this THIRD Amendment and made a part hereof. The Premises are on the second floor of a building having an address of 825 Berkshire Boulevard, Wyomissing, Pennsylvania 19610 (the “Building”), located on a parcel of land containing approximately 11 acres (the “Land”). In connection with its use of the Premises, Tenant shall have the right to use for its employees twenty five (25) undesignated and two designated parking spaces in the parking area adjacent to the Building and such other undesignated parking spaces as may be reasonably required for the conduct of its business.

 

All other references to the area of the Premises in the Lease are hereby amended to mean the square footage figures as stated hereinabove.

 

 

2.                                      Effective February 1, 1998, Paragraph 3(a) of the Lease shall be amended to read as follows:

 

(b) During the remainder of the third year of the term of this Lease, Tenant shall pay Landlord equal monthly installments of Five Thousand Seven Hundred Twenty Five Dollars and Eight Cents ($5,725.08). Such rent is calculated on the basis of $11.50 per square foot of the rentable floor area of the Premises, which is calculated at 5,974 rentable square feet. Each lease year thereafter during the term of this Lease, the annual minimum rent shall be increased by three percent (3%) over the prior year’s annual minimum rent.

 

3.                                      Effective February 1, 1998, Paragraph 4(c) of the Lease shall be amended to read as follows:

 

The portion of Expenses which are applicable to the Premises (the “Premises Expenses”) shall be determined by multiplying the Expenses by a fraction, the numerator of which is the rentable floor area of the Premises (presently assumed to be 5,974 rentable square feet), and the denominator of which is the aggregate number of rentable floor area in the Building (presently assumed to be 21,100 square feet), except that Tenant specific Expenses, including janitorial services, shall be allocated directly to each tenant in the building.

 

4.                                      Effective February 1, 1998, Paragraph 4(d) of the Lease shall be amended to read as follows:

 

Tenant agrees to pay Landlord as additional rent hereunder all Premises Expenses incurred during the term of this Lease. Tenant shall pay $4.00 per square foot of rentable floor area for Premises Expenses. This amount shall be paid in equal monthly installments of One Thousand Nine Hundred Ninety One Dollars and Thirty Three Cents ($1,991.33) each. After the first year of the term of this Lease Tenant shall pay actual Premises Expenses as defined above in 4(a), 4(b) and 4(c).

 

5.                                      Except as hereby amended, the Lease is hereby ratified and confirmed.

 

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

 

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this THIRD Amendment to be duly executed by their authorized officers the day and year first above written.

 

	
 
    	
WYOMISSING   PROFESSIONAL CENTER III, LIMITED PARTNERSHIP, a Pennsylvania limited   partnership by its General Partner:
    
	
 
    	
 
    
	
 
    	
WYOMISSING PROFESSIONAL CENTER   III, INC.
    

 

	
 
    	
By:
    	
/s/ Stephen J. Najarian
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
Attest:
    	
 
    
	
 
    	
 
    	
Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Landlord”
    
	
 
    	
 
    
	
 
    	
PENN NATIONAL GAMING, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William J. Bork
    
	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
Attest:
    	
/s/ Robert S. Ippolito
    
	
 
    	
 
    	
Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Tenant”
    

 

 

LEASE AMENDMENT

 

THIS LEASE AMENDMENT (the “Amendment”) made this 16th day of November, 1999, between Penn National Gaming, hereinafter, called “Tenant”, having its principal place of business at 825 Berkshire Blvd., Suite 200 and Wyomissing Professional Center III, 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”, and “C”, relating to the Leased Premises located at 825 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. Leased premises is changed from 5,974 square feet rentable and 5,334 square feet of usable floor area to 6,674 square feet of rentable and 5,959 square feet of usable floor area.

 

5.              Fixed Annual Minimum Rent: As per attached Exhibit A.

 

6.              Effective Date. The effective date for Tenant’s increased space and rental payments shall be September 16, 1999.

 

7.              Term of Lease. Term of Lease is unchanged; ten (10) years starting April 1, 1995 and ending March 31, 2005.

 

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 16th day of November, 1999.

 

THIS LEASE 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 III, LIMITED PARTNERSHIP, by its General Partner, Wyomissing   Professional Center III, Inc.
    

 

	
 
    	
By:
    	
/s/   Stephen J. Najarian
    
	
 
    	
 
    	
Name:   Stephen J. Najarian
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    

 

 

	
TENANT:
    	
ATTEST:
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    

 

 

 

FIFTH LEASE AMENDMENT

 

THIS LEASE AMENDMENT (the “Amendment”) made this 21 day of August, 2000, between Penn National Gaming, hereinafter, called “Tenant”, having its principal place of business at 825 Berkshire Blvd., Suite 200 and Wyomissing Professional Center III 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”, and “C”, relating to the Leased Premises located at 825 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. Leased premises is changed from 6,674 square feet rentable and 5,959 square feet of usable floor area to 8,245 square feet of rentable and 7,362 square feet of usable floor area.

 

5.              Fixed Annual Minimum Rent: As per attached Exhibit A.

 

6.              Effective Date. The effective date for Tenant’s increased space and rental payments shall be June 15, 2000.

 

7.              Term of Lease. Term of Lease is unchanged; ten (10) years starting April 1, 1995 and ending March 31, 2005.

 

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 21 day of August, 2000.

 

THIS LEASE 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 III LIMITED PARTNERSHIP, by its General Partner, Wyomissing   Professional Center III Inc.
    

 

	
 
    	
By:
    	
/s/   Stephen J. Najarian
    
	
 
    	
 
    	
Name:   Stephen J. Najarian 
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
8/21/00
    

 

 

	
TENANT:
    	
ATTEST:
    
	
 
    	
 
    
	
By:
    	
/s/   Robert S. Ippolito
    	
 
    	
By:
    	
/s/   Susan M. Montgomery
    
	
Name:
    	
Robert   S. Ippolito
    	
 
    	
Name:
    	
Susan   M. Montgomery
    
	
Title:
    	
Sec/Treas
    	
 
    	
Title:
    	
Office   Manager
    
	
Date:
    	
8/21/00
    	
 
    	
Date:
    	
8-21-00
    

 

 

PENN NATIONAL GAMING 
 Exhibit A, Rent analysis

 

	
Period Effective Date
    	
 
    	
SF
    	
 
    	
Rate/SF
    	
 
    	
Mo. Rent
    	
 
    	
Annual Rent
    	
 
    	
Amt. Owed
   during period
    	
 
    
	
April 1, 1995
    	
 
    	
2,120
    	
 
    	
$
    	
11.00
    	
 
    	
$
    	
1,943.33
    	
 
    	
$
    	
23,320.00
    	
 
    	
$
    	
23,320.00
    	
 
    
	
April 1, 1996
    	
 
    	
2,120
    	
 
    	
$
    	
11.33
    	
 
    	
$
    	
2,001.63
    	
 
    	
$
    	
24,019.60
    	
 
    	
$
    	
12,042.70
    	
 
    
	
October 1, 1996
    	
 
    	
2,644
    	
 
    	
$
    	
11.33
    	
 
    	
$
    	
2,496.38
    	
 
    	
$
    	
29,956.52
    	
 
    	
$
    	
14,937.22
    	
 
    
	
April 1, 1997
    	
 
    	
2,644
    	
 
    	
$
    	
11.67
    	
 
    	
$
    	
2,571.27
    	
 
    	
$
    	
30,855.22
    	
 
    	
$
    	
15,469.88
    	
 
    
	
October 1, 1997
    	
 
    	
6,183
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
5,925.38
    	
 
    	
$
    	
71,104.50
    	
 
    	
$
    	
23,961.24
    	
 
    
	
February 1, 1998
    	
 
    	
5,974
    	
 
    	
$
    	
11.50
    	
 
    	
$
    	
5,725.08
    	
 
    	
$
    	
68,701.00
    	
 
    	
$
    	
11,105.09
    	
 
    
	
April 1, 1998
    	
 
    	
5,974
    	
 
    	
$
    	
11.85
    	
 
    	
$
    	
5,896.84
    	
 
    	
$
    	
70,762.03
    	
 
    	
$
    	
70,762.03
    	
 
    
	
April 1, 1999
    	
 
    	
5,974
    	
 
    	
$
    	
12.20
    	
 
    	
$
    	
6,073.74
    	
 
    	
$
    	
72,884.89
    	
 
    	
$
    	
33,547.02
    	
 
    
	
September 16, 1999
    	
 
    	
6,674
    	
 
    	
$
    	
12.20
    	
 
    	
$
    	
6,785.43
    	
 
    	
$
    	
81,425.14
    	
 
    	
$
    	
44,170.35
    	
 
    
	
April 1, 2000
    	
 
    	
6,674
    	
 
    	
$
    	
12.57
    	
 
    	
$
    	
6,988.99
    	
 
    	
$
    	
83,867.89
    	
 
    	
$
    	
17,233.13
    	
 
    
	
June 15, 2000
    	
 
    	
8,245
    	
 
    	
$
    	
12.57
    	
 
    	
$
    	
8,634.14
    	
 
    	
$
    	
103,609.64
    	
 
    	
$
    	
82,319.99
    	
 
    
	
April 1, 2001
    	
 
    	
8,245
    	
 
    	
$
    	
12.94
    	
 
    	
$
    	
8,893.16
    	
 
    	
$
    	
106,717.93
    	
 
    	
$
    	
106,717.93
    	
 
    
	
April 1, 2002
    	
 
    	
8,245
    	
 
    	
$
    	
13.33
    	
 
    	
$
    	
9,159.96
    	
 
    	
$
    	
109,919.47
    	
 
    	
$
    	
109,919.47
    	
 
    
	
April 1, 2003
    	
 
    	
8,245
    	
 
    	
$
    	
13.73
    	
 
    	
$
    	
9,434.75
    	
 
    	
$
    	
113,217.05
    	
 
    	
$
    	
113,217.05
    	
 
    
	
April 1, 2004
    	
 
    	
8,245
    	
 
    	
$
    	
14.14
    	
 
    	
$
    	
9,717.80
    	
 
    	
$
    	
116,613.57
    	
 
    	
$
    	
116,613.57
    	
 
    

 

ANNUAL AMOUNTS

 

	
Lease year 1,   4/95-3/96
    	
 
    	
$
    	
23,320.00
    	
 
    	
Calendar Yr 1995
    	
 
    	
$
    	
17,490.00
    	
 
    
	
Lease year 2,   4/96-3/97
    	
 
    	
$
    	
26,979.93
    	
 
    	
Calendar Yr 1996
    	
 
    	
$
    	
25,328.93
    	
 
    
	
Lease year 3,   4/97-3/98
    	
 
    	
$
    	
50,536.21
    	
 
    	
Calendar Yr 1997
    	
 
    	
$
    	
40,692.86
    	
 
    
	
Lease year 4,   4/98-3/99
    	
 
    	
$
    	
70,762.03
    	
 
    	
Calendar Yr 1998
    	
 
    	
$
    	
70,447.06
    	
 
    
	
Lease year 5,   4/99-3/00
    	
 
    	
$
    	
77,717.37
    	
 
    	
Calendar Yr 1999
    	
 
    	
$
    	
74,845.08
    	
 
    
	
Lease year 6,   4/00-3/01
    	
 
    	
$
    	
99,553.12
    	
 
    	
Calendar Yr 2000
    	
 
    	
$
    	
93,950.65
    	
 
    
	
Lease Year 7,   4/01-3/02
    	
 
    	
$
    	
106,717.93
    	
 
    	
Calendar Yr 2001
    	
 
    	
$
    	
105,940.86
    	
 
    
	
Lease Year 8,   4/02-3/03
    	
 
    	
$
    	
109,919.47
    	
 
    	
Calendar Yr 2002
    	
 
    	
$
    	
109,119.09
    	
 
    
	
Lease Year 9,   4/03-3/04
    	
 
    	
$
    	
113,217.05
    	
 
    	
Calendar Yr 2003
    	
 
    	
$
    	
112,392.66
    	
 
    
	
Lease Year 10,   4/04-3/05
    	
 
    	
$
    	
116,613.57
    	
 
    	
Calendar Yr 2004
    	
 
    	
$
    	
115,764.44
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Calendar Yr 2005
    	
 
    	
$
    	
29,153.39
    	
 
    

 

 

AMENDMENT AND RESTATED LEASE AGREEMENT

 

THIS LEASE AMENDMENT (the “Amendment”) made this 5th day of April, 2005, between Penn National Gaming, Inc., a Pennsylvania corporation, hereinafter called “Tenant”, having its principal place of business at 825 Berkshire Blvd., Suite 200 and Wyomissing Professional Center III, Limited Partnership, a Pennsylvania limited partnership, hereinafter called “Landlord”, having its principal place of business at 825 Berkshire Blvd. Suite 203 Wyomissing, Pennsylvania 19610.

 

WITNESSETH:

 

The Tenant and the Landlord have executed a Lease Agreement which includes Exhibits “A” and “B”, and Lease Amendments, relating to Leased Premises located at 825 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 amended Leased Premises shall be restated to be 10,145 square feet of rentable and 9,058 square feet of usable floor area.

 

5.              Fixed Annual Minimum Rent:  The Annual Minimum Rent for the Extension Period, as defined in Section 7 below, shall be as shown on attached Schedule “A6-1”.

 

6.              Effective Date.  The effective date for Tenant’s increased space and rental payments shall be April 1, 2005.

 

7.              Term of Lease.  The Lease shall be extended for an additional period of seven (7) years beginning on April 1, 2005 and ending on March 31, 2012 (the “Extension Period”).

 

8.              Construction of Improvements and Reimbursement of Costs Incurred.  Tenant shall contract with Landlord’s contractor for the construction of improvements to the Leased Premises. All such work shall be bid and performed by Landlord’s contractor on an open book basis and billed at the rate of the subcontractor’s or supplier’s cost plus a total of 15% for construction management fee, overhead, and builder’s profit

 

 

and be subject to the approval of a budget prior to the commencement of any work. In the first draw request submitted for the improvements, Tenant shall reimburse Landlord the amount of $123,563.69 for third-party architectural, engineering and related costs previously incurred in designing alternate space in a to-be-built adjacent attached building previously considered by Tenant.

 

9.              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 5th day of April, 2005.

 

THIS LEASE 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 III, Limited Partnership, a Pennsylvania limited partnership, by its   General Partner, Wyomissing Professional Center II, Inc.
    

 

	
 
    	
By:
    	
/s/   Stephen J. Najarian
    
	
 
    	
Stephen   J. Najarian, President
    

 

	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
Penn   National Gaming, Inc., a Pennsylvania corporation
    
	
WITNESS:
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Susan M. Montgomery
    	
 
    	
By:
    	
/s/   Robert S. Ippolito
    
	
Name:
    	
Susan   M. Montgomery
    	
 
    	
Name:
    	
Robert   S. Ippolito
    
	
 
    	
Title:
    	
VP/Sec/Treas
    

 

 

SCHEDULE “A6-1”

 

ANNUAL MINIMUM RENT — EXTENSION PERIOD

 

	
Square Feet (SF):
    	
 
    	
10,145
    	
 
    
	
Minimum Rent per   SF Yr 1:
    	
 
    	
$
    	
13.50
    	
 
    
	
Annual Escalation:
    	
 
    	
3.0
    	
%
    
					

 

	
Period
    	
 
    	
Lease
   Year
    	
 
    	
Rentable
   SF
    	
 
    	
Minimum
   Rent per SF
    	
 
    	
Monthly
   Min Rent
    	
 
    	
Annual Rent
   (the “Annual
   Minimum Rent”)
    	
 
    
	
4/1/05-3/31/06
    	
 
    	
11
    	
 
    	
10,145
    	
 
    	
$
    	
13.50
    	
 
    	
$
    	
11,413.13
    	
 
    	
$
    	
136,957.50
    	
 
    
	
4/1/06-3/31/07
    	
 
    	
12
    	
 
    	
10,145
    	
 
    	
$
    	
13.91
    	
 
    	
$
    	
11,755.52
    	
 
    	
$
    	
141,066.23
    	
 
    
	
4/1/07-3/31/08
    	
 
    	
13
    	
 
    	
10,145
    	
 
    	
$
    	
14.32
    	
 
    	
$
    	
12,108.18
    	
 
    	
$
    	
145,298.21
    	
 
    
	
4/1/08-3/31/09
    	
 
    	
14
    	
 
    	
10,145
    	
 
    	
$
    	
14.75
    	
 
    	
$
    	
12,471.43
    	
 
    	
$
    	
149,657.16
    	
 
    
	
4/1/09-3/31/10
    	
 
    	
15
    	
 
    	
10,145
    	
 
    	
$
    	
15.19
    	
 
    	
$
    	
12,845.57
    	
 
    	
$
    	
154,146.87
    	
 
    
	
4/1/10-3/31/11
    	
 
    	
16
    	
 
    	
10,145
    	
 
    	
$
    	
15.65
    	
 
    	
$
    	
13,230.94
    	
 
    	
$
    	
158,771.28
    	
 
    
	
4/1/11-3/31/12
    	
 
    	
17
    	
 
    	
10,145
    	
 
    	
$
    	
16.12
    	
 
    	
$
    	
13,627.87
    	
 
    	
$
    	
163,534.42
    	
 
    

 

 

PRIOR INCURRED COSTS

825/835 DESIGN OF ADJACENT/ATTACHED BUILDING

 

	
Date
    	
 
    	
Vendor
    	
 
    	
Inv No.
    	
 
    	
Amount
    	
 
    
	
06/13/2003
    	
 
    	
Schlouch
    	
 
    	
22361
    	
 
    	
2,073.74
    	
 
    
	
06/06/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3051
    	
 
    	
1,903.00
    	
 
    
	
07/03/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3190
    	
 
    	
1,140.00
    	
 
    
	
07/08/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3235
    	
 
    	
1,330.00
    	
 
    
	
08/12/2003
    	
 
    	
Berks Cty. Clean Water
    	
 
    	
081203
    	
 
    	
250.00
    	
 
    
	
08/12/2003
    	
 
    	
Berks Cty. Conservation
    	
 
    	
081203
    	
 
    	
450.00
    	
 
    
	
08/12/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3297
    	
 
    	
19,156.00
    	
 
    
	
08/18/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3353
    	
 
    	
450.00
    	
 
    
	
09/04/2003
    	
 
    	
Schlouch
    	
 
    	
22471
    	
 
    	
3,390.55
    	
 
    
	
09/09/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3416
    	
 
    	
6,324.40
    	
 
    
	
09/09/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3420
    	
 
    	
495.00
    	
 
    
	
10/15/2003
    	
 
    	
Berks Cty. Conservancy
    	
 
    	
3920-101403
    	
 
    	
135.00
    	
 
    
	
10/20/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3521
    	
 
    	
2,955.00
    	
 
    
	
10/20/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3520
    	
 
    	
31.00
    	
 
    
	
10/23/2003
    	
 
    	
Stevens & Lee
    	
 
    	
02097-00123-001
    	
 
    	
186.00
    	
 
    
	
10/23/2003
    	
 
    	
Stevens & Lee
    	
 
    	
02097-00093-007
    	
 
    	
108.00
    	
 
    
	
11/24/2003
    	
 
    	
Stevens & Lee
    	
 
    	
02097-00123-002
    	
 
    	
604.36
    	
 
    
	
11/10/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3584
    	
 
    	
2,400.00
    	
 
    
	
11/10/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3581
    	
 
    	
1,125.00
    	
 
    
	
11/10/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3581-1
    	
 
    	
2,823.51
    	
 
    
	
12/22/2003
    	
 
    	
Schlouch
    	
 
    	
31626290001
    	
 
    	
624.00
    	
 
    
	
12/16/2003
    	
 
    	
Stevens & Lee
    	
 
    	
02097-00123-003
    	
 
    	
890.00
    	
 
    
	
11/24/2003
    	
 
    	
Schlouch
    	
 
    	
22626
    	
 
    	
3,879.31
    	
 
    
	
01/19/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3736
    	
 
    	
900.00
    	
 
    
	
12/24/2003
    	
 
    	
Architectual Concepts
    	
 
    	
3681
    	
 
    	
1,440.00
    	
 
    
	
12/31/2003
    	
 
    	
Stevens & Lee
    	
 
    	
02097-00123-004
    	
 
    	
95.50
    	
 
    
	
01/20/2004
    	
 
    	
Schlouch
    	
 
    	
22747
    	
 
    	
3,182.78
    	
 
    
	
02/04/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3810
    	
 
    	
810.00
    	
 
    
	
02/04/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3806
    	
 
    	
1,206.10
    	
 
    
	
03/09/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3912
    	
 
    	
733.01
    	
 
    
	
03/09/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3913
    	
 
    	
2,295.00
    	
 
    
	
03/09/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3917
    	
 
    	
735.00
    	
 
    
	
04/06/2004
    	
 
    	
Architectual Concepts
    	
 
    	
3996
    	
 
    	
810.00
    	
 
    
	
03/31/2004
    	
 
    	
Schlouch
    	
 
    	
22874
    	
 
    	
1,772.91
    	
 
    
	
06/11/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4188
    	
 
    	
22,425.00
    	
 
    
	
06/03/2004
    	
 
    	
Schlouch
    	
 
    	
22959
    	
 
    	
1,045.00
    	
 
    
	
07/20/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4222
    	
 
    	
5,980.00
    	
 
    
	
07/20/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4236
    	
 
    	
2,330.00
    	
 
    
	
07/22/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4226
    	
 
    	
895.00
    	
 
    
	
08/18/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4313
    	
 
    	
3,510.84
    	
 
    
	
08/18/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4314
    	
 
    	
2,080.00
    	
 
    
	
08/25/2004
    	
 
    	
Ira G Steffy
    	
 
    	
33841
    	
 
    	
5,850.00
    	
 
    
	
08/31/2004
    	
 
    	
Jaime Rahn
    	
 
    	
80604
    	
 
    	
70.13
    	
 
    
	
09/01/2004
    	
 
    	
Schlouch
    	
 
    	
23100
    	
 
    	
6,878.55
    	
 
    
	
10/08/2004
    	
 
    	
Dennis Scouler & Assoc.
    	
 
    	
100804
    	
 
    	
190.00
    	
 
    
	
09/30/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4358
    	
 
    	
4,110.00
    	
 
    
	
09/30/2004
    	
 
    	
Architectual Concepts
    	
 
    	
4372
    	
 
    	
1,495.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
123,563.69
    	
 
    
									

 

 

825 Berkshire Blvd. 
 Penn National Gaming

2005 CAM Monthly

 

	
Unit   200
    	
 
    	
 
    	
 
    
	
Effective   Rentable Square Footage
    	
 
    	
10,145
    	
 
    
	
Building   Square Footage
    	
 
    	
20,527
    	
 
    
	
Percentage   of Building Square Footage
    	
 
    	
49.42
    	
%
    
	
Effective   In - Suite Janitorial Square Footage
    	
 
    	
9,058
    	
 
    

 

	
 
    	
 
    	
Total Building
    	
 
    	
Costs
    	
 
    	
Tenant Share
    	
 
    	
Tenant Expenses
    	
 
    
	
Expense
    	
 
    	
Expenses
    	
 
    	
per SF
    	
 
    	
Of Expenses
    	
 
    	
Monthly
    	
 
    
	
Fixed   Expenses
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Insurance
    	
 
    	
$
    	
4,798.00
    	
 
    	
$
    	
0.23
    	
 
    	
$
    	
2,371.30
    	
 
    	
197.61
    	
 
    
	
Property Tax
    	
 
    	
41,396.00
    	
 
    	
2.02
    	
 
    	
20,459.03
    	
 
    	
1,704.92
    	
 
    
	
Mercantile Tax
    	
 
    	
550.00
    	
 
    	
0.03
    	
 
    	
271.82
    	
 
    	
22.65
    	
 
    
	
Subtotal   - Fixed Expenses
    	
 
    	
$
    	
46,744.00
    	
 
    	
$
    	
2.28
    	
 
    	
$
    	
23,102.15
    	
 
    	
$
    	
1,925.18
    	
 
    
	
Variable   Expenses

 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reimbursable   Property Mgmt Fees
    	
 
    	
$
    	
5,132.00
    	
 
    	
$
    	
0.25
    	
 
    	
$
    	
2,536.37
    	
 
    	
211.36
    	
 
    
	
Electric &   Gas
    	
 
    	
17,070.00
    	
 
    	
0.83
    	
 
    	
8,436.46
    	
 
    	
703.04
    	
 
    
	
Service Contract   - HVAC
    	
 
    	
3,900.00
    	
 
    	
0.19
    	
 
    	
1,927.49
    	
 
    	
160.62
    	
 
    
	
Additional   Service - HVAC
    	
 
    	
2,000.00
    	
 
    	
0.10
    	
 
    	
988.45
    	
 
    	
82.37
    	
 
    
	
Service Contract   - Elevator
    	
 
    	
3,216.00
    	
 
    	
0.16
    	
 
    	
1,589.43
    	
 
    	
132.45
    	
 
    
	
Service Contract   - Sprinklers
    	
 
    	
500.00
    	
 
    	
0.02
    	
 
    	
247.11
    	
 
    	
20.59
    	
 
    
	
Common Area -   Janitorial Service
    	
 
    	
2,376.00
    	
 
    	
0.12
    	
 
    	
1,174.28
    	
 
    	
97.86
    	
 
    
	
Common Area -   Janitorial Supplies
    	
 
    	
1,200.00
    	
 
    	
0.06
    	
 
    	
593.07
    	
 
    	
49.42
    	
 
    
	
Service Contract   - Lawncare & Landscaping
    	
 
    	
8,910.00
    	
 
    	
0.43
    	
 
    	
4,403.56
    	
 
    	
366.96
    	
 
    
	
Service Contract   - Interior Plant Maintenance
    	
 
    	
1,140.00
    	
 
    	
0.06
    	
 
    	
563.42
    	
 
    	
46.95
    	
 
    
	
Snow Removal
    	
 
    	
4,394.00
    	
 
    	
0.21
    	
 
    	
2,171.63
    	
 
    	
180.97
    	
 
    
	
Operating   Repairs & Maintenance
    	
 
    	
10,934.00
    	
 
    	
0.53
    	
 
    	
5,403.88
    	
 
    	
450.32
    	
 
    
	
Service Contract   - Pest Control
    	
 
    	
520.00
    	
 
    	
0.03
    	
 
    	
257.00
    	
 
    	
21.42
    	
 
    
	
Window Cleaning
    	
 
    	
1,920.00
    	
 
    	
0.09
    	
 
    	
948.92
    	
 
    	
79.08
    	
 
    
	
Association   Assessments
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    
	
Trash Removal
    	
 
    	
2,580.00
    	
 
    	
0.13
    	
 
    	
1,275.11
    	
 
    	
106.26
    	
 
    
	
Security Expense
    	
 
    	
1,075.00
    	
 
    	
0.05
    	
 
    	
531.29
    	
 
    	
44.27
    	
 
    
	
Service Contract   -Alarm
    	
 
    	
600.00
    	
 
    	
0.03
    	
 
    	
296.54
    	
 
    	
24.71
    	
 
    
	
Reimbursable   Signage
    	
 
    	
200.00
    	
 
    	
0.01
    	
 
    	
98.85
    	
 
    	
8.24
    	
 
    
	
Water & Sewer
    	
 
    	
1,500.00
    	
 
    	
0.07
    	
 
    	
741.34
    	
 
    	
61.78
    	
 
    
	
Subtotal - Variable Expenses
    	
 
    	
$
    	
69,167.00
    	
 
    	
$
    	
3.37
    	
 
    	
$
    	
34,184.21
    	
 
    	
$
    	
2,848.68
    	
 
    
	
Total   Reimbursable Operating Expenses
    	
 
    	
$
    	
115,911.00
    	
 
    	
$
    	
5.65
    	
 
    	
$
    	
57,286.36
    	
 
    	
$
    	
4,773.86
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
In Suite Janitorial   Service and Supplies
    	
 
    	
1.35
    	
 
    	
12,228.30
    	
 
    	
1,019.03
    	
 
    

 

 

AMENDMENT AND RESTATED LEASE AGREEMENT

 

THIS LEASE AMENDMENT (the “Amendment”) made this 20 day of November, 2007, between Penn National  Gaming, Inc., a Pennsylvania corporation, hereinafter called “Tenant”, having its principal place of business at 825 Berkshire Boulevard, Suite 200, Wyomissing, PA 19610 and Wyomissing Professional Center III, Limited Partnership, a Pennsylvania limited partnership, hereinafter called “Landlord”, having its principal place of business at 875 Berkshire Boulevard, Suite 102, Wyomissing, Pennsylvania 19610.

 

WITNESSETH:

 

The Tenant and the Landlord have executed a Lease Agreement dated March 31, 1995, which includes Exhibits “A” and “B”, and an Amendment and Restated Lease Agreement dated April 5, 2005 (collectively, the “Lease”), relating to Leased Premises located at 825 Berkshire Boulevard, 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. Beginning on the Effective Date as defined in Section 6. below, the Leased Premises shall be increased from 10,145 square feet of rentable and 9,058 square feet of usable floor area to 20,527 square feet of rentable and 18,328 square feet of usable floor area by the addition of 10,382 square feet of rentable and 9,270 square feet of usable floor area located on the first floor of the Building (the “First Floor Area”) as described on Exhibit “Al” attached hereto.

 

5.         Fixed Annual Minimum Rent: Beginning on the Effective Date as defined in Section 6. below, the Annual Minimum Rent for the Leased Premises, as defined in Section 4 above, shall be as shown on attached Schedule “A5-1”.

 

6.         Effective Date. The effective date for Tenant’s increased space and rental payments shall be May 1, 2007 (the “Effective Date”).

 

7.         Term of Lease. The Term of the Lease shall include the increased Leased Premises under the terms of the Amended and Restated Lease Agreement dated April 5, 2005 that provide for a lease term ended March 31, 2012.

 

1

 

8.         Construction of Improvements. Tenant shall contract with Landlord’s contractor for the demolition of existing improvements and construction of improvements to the First Floor Area per Tenant’s approved plans and specifications. All such work shall be bid and performed by Landlord’s contractor on an open book basis and billed at the rate of the subcontractor’s or supplier’s cost plus a total of 15% for construction management fee, overhead, and builder’s profit and be subject to the approval of a budget prior to the commencement of any work. The terms shall be included in an AIA101 construction agreement between the parties.

 

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

 

2

 

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 20th day of November  2007.

 

THIS LEASE 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 III, Limited Partnership, a Pennsylvania limited partnership, by its   General Partner, Wyomissing Professional Center III, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Peter W. Carlino
    
	
 
    	
 
    	
 
    	
Peter   W. Carlino, Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
TENANT:
    
	
 
    	
 
    	
Penn   National Gaming, Inc., a Pennsylvania corporation
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Susan M. Montgomery
    	
 
    	
By:
    	
/s/   Robert S. Ippolito
    
	
Name:
    	
Susan   M. Montgomery
    	
 
    	
Name:
    	
Robert   S. Ippolito
    
	
 
    	
 
    	
Title:
    	
VP/Sec/Treas
    
						

 

3

 

SCHEDULE “A5-1”

 

ANNUAL MINIMUM RENT

 

	
Rentable Square   Feet (RSF), 1st Floor
    	
 
    	
10,145
    	
 
    
	
Rentable Square   Feet (RSF), 2nd Floor
    	
 
    	
10,382
    	
 
    
	
Total Rentable   Square Feet (RSF)
    	
 
    	
20,527
    	
 
    
	
Minimum Rent per   RSF (at 5/01/07)
    	
 
    	
$
    	
14.32
    	
 
    
	
Annual   Escalation
    	
 
    	
3.0
    	
%
    
					

 

	
Period
    	
 
    	
Lease
   Year
    	
 
    	
RSF
    	
 
    	
Minimum Rent
   per RSF (b)
    	
 
    	
Monthly
   Min.Rent (a)
    	
 
    	
“Annual
   Minimum Rent”
    	
 
    
	
5/1/07 to   3/31/08
    	
 
    	
13
    	
 (a)
    	
20,527
    	
 
    	
$
    	
14.32
    	
 
    	
$
    	
24,495.55
    	
 
    	
$
    	
245,238.33
    	
 
    
	
4/1/08 to   3/31/09
    	
 
    	
14
    	
 
    	
20,527
    	
 
    	
$
    	
14.75
    	
 
    	
$
    	
25,230.42
    	
 
    	
$
    	
302,765.04
    	
 
    
	
4/1/09 to   3/31/10
    	
 
    	
15
    	
 
    	
20,527
    	
 
    	
$
    	
15.19
    	
 
    	
$
    	
25,987.33
    	
 
    	
$
    	
311,847.99
    	
 
    
	
4/1/10 to   3/31/11
    	
 
    	
16
    	
 
    	
20,527
    	
 
    	
$
    	
15.65
    	
 
    	
$
    	
26,766.95
    	
 
    	
$
    	
321,203.43
    	
 
    
	
4/1/11 to   3/31/12
    	
 
    	
17
    	
 
    	
20,527
    	
 
    	
$
    	
16.12
    	
 
    	
$
    	
27,569.96
    	
 
    	
$
    	
330,839.53
    	
 
    

 

(a)                   The Lease provides that no rent or operating expense reimbursement is due on the increased space of 10,382 square feet for the months of May and June 2007. The monthly minimum rent for May and June 2007, respectively, is $12,389.19.

(b)                   Shown at two decimal places. Actual rent calculated at extended decimal places

 

4

 

THIRD AMENDMENT AND RESTATED LEASE AGREEMENT

 

THIS LEASE AMENDMENT (the “Amendment”) made this 25th day of May, 2012, between Penn National Gaming, Inc., a Pennsylvania corporation, hereinafter called “Tenant”, having its principal place of business at 825 Berkshire Boulevard, Wyomissing, PA 19610 and Wyomissing Professional Center III, Limited Partnership (825), a Pennsylvania limited partnership, hereinafter called “Landlord”, having its principal place of business at 875 Berkshire Boulevard, Suite 102, Wyomissing, Pennsylvania 19610.

 

WITNESSETH:

 

The Tenant and the Landlord have executed a Lease Agreement (the original Lease) dated March 31, 1995, which includes Exhibits “A” and “B”, an Amendment and Restated Lease Agreement (the First Amendment) dated April 5, 2005, and an Amendment and Restated Lease Agreement (the Second Amendment) dated November 20, 2007 (collectively, the “Lease”), relating to Leased Premises located at 825 Berkshire Boulevard, 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.              Fixed Annual Minimum Rent. The Annual Minimum Rent for the Second Extension Period, as defined in Section 5. below, shall be as shown on the table below.

 

	
Space (RSF):
    	
 
    	
20,527
    
	
Minimum Rent/RSF:
    	
 
    	
$
    	
16.00
    
	
Annual Escalation:
    	
 
    	
2.5%
    

 

1

 

	
Second
   Extension
    	
 
    	
 
    	
 
    	
ANNUAL
   MINIMUM
   RENT
    	
 
    
	
Period
    	
 
    	
RSF
    	
 
    	
per
   RSF
    	
 
    	
Annual
    	
 
    	
Monthly
    	
 
    
	
6/1/12 - 5/31/13
    	
 
    	
20,527
    	
 
    	
$
    	
16.00
    	
 
    	
$
    	
328,432.00
    	
 
    	
$
    	
27,369.33
    	
 
    
	
6/1/13 - 5/31/14
    	
 
    	
20,527
    	
 
    	
$
    	
16.40
    	
 
    	
$
    	
336,642.80
    	
 
    	
$
    	
28,053.57
    	
 
    
	
6/1/14 - 5/31/15
    	
 
    	
20,527
    	
 
    	
$
    	
16.81
    	
 
    	
$
    	
345,058.87
    	
 
    	
$
    	
28,754.91
    	
 
    
	
6/1/15 - 5/31/16
    	
 
    	
20,527
    	
 
    	
$
    	
17.23
    	
 
    	
$
    	
353,680.21
    	
 
    	
$
    	
29,473.35
    	
 
    
	
6/1/16 - 5/31/17
    	
 
    	
20,527
    	
 
    	
$
    	
17.66
    	
 
    	
$
    	
362,506.82
    	
 
    	
$
    	
30,208.90
    	
 
    
	
6/1/17 - 5/31/18
    	
 
    	
20,527
    	
 
    	
$
    	
18.10
    	
 
    	
$
    	
371,538.70
    	
 
    	
$
    	
30,961.56
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6/1/18 - 5/31/19
    	
 
    	
20,527
    	
 
    	
$
    	
18.55
    	
 
    	
$
    	
380,775.85
    	
 
    	
$
    	
31,731.32
    	
 
    

 

5.         Term of Lease. The Term of the Lease shall be extended for an additional period of seven (7) years beginning on June 1, 2012 and ending on May 31, 2019 (the “Second Extension Period”).

 

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 Amendment of Lease Terms to be duly executed this 25th day of May, 2012.

 

THIS LEASE 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 III, Limited Partnership, a Pennsylvania limited   partnership, by its General Partner, Wyomissing Professional Center   III, Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Peter W. Carlino
    
	
 
    	
 
    	
Peter   W. Carlino, President
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
Penn   National Gaming, Inc., a Pennsylvania corporation
    
	
WITNESS:
    	
 
    
	
 
    	
 
    
	
By:   
    	
/s/   Susan M. Montgomery
    	
 
    	
By:
    	
/s/   Robert S. Ippolito
    
	
Name:   
    	
Susan   M. Montgomery
    	
 
    	
Name:   
    	
Robert   S. Ippolito
    
	
 
    	
Title:   
    	
VP/Sec/Treas
    
						

 

2

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