|
Exhibit
10.40
AMENDMENT TO CEC
ENTERTAINMENT, INC.
DEVELOPMENT
AGREEMENT
FOR THE STATE OF NORTH
DAKOTA
The CEC Entertainment, Inc.
Development Agreement between
(“Developer” or “You”) and CEC
Entertainment, Inc. (“Franchisor”) dated
(the “Agreement”) shall be amended by the addition of
the following language, which shall be considered an integral part
of the Agreement (the “Amendment”):
NORTH DAKOTA LAW
MODIFICATIONS
1. The North Dakota
Securities Commissioner requires that certain provisions contained
in franchise documents be amended to be consistent with North
Dakota law, including the North Dakota Franchise Investment Law,
North Dakota Century Code Annotated Chapter 51-19, Sections
51-19-01 through 51-19-17 (1993). To the extent that the Agreement
contains provisions that are inconsistent with the following, such
provisions are hereby amended:
| |
a. |
If Developer is required in the Agreement to execute a release
of claims or to acknowledge facts that would negate or remove from
judicial review any statement, misrepresentation or action that
would violate the Law, or a rule or order under the Law, such
release shall exclude claims arising under the North Dakota
Franchise Investment Law, and such acknowledgments shall be void
with respect to claims under the Law. |
| |
b. |
Covenants not to compete during the term of and upon
termination or expiration of the Agreement are enforceable only
under certain conditions according to North Dakota Law. If the
Agreement contains a covenant not to compete that is inconsistent
with North Dakota Law, the covenant may be
unenforceable. |
| |
c. |
The Commissioner has held that requiring franchisees to consent
to the jurisdiction of courts outside of North Dakota is unfair,
unjust or inequitable within the intent of Section 51-19-09 of
the North Dakota Franchise Investment Law. |
| |
d. |
If the Agreement requires that a state’s law, other than
the State of North Dakota govern it, to the exten |
|
