FORM OF RESTRICTED STOCK
AGREEMENT
CEC ENTERTAINMENT,
INC.
SECOND AMENDED AND RESTATED 2004
RESTRICTED STOCK PLAN
UNLESS
GRANTEE REFUSES TO ACCEPT THIS RESTRICTED STOCK AGREEMENT BY
RETURNING THE AGREEMENT TO THE COMPANY WITHIN FIVE (5) BUSINESS
DAYS OF RECEIPT OF THIS AGREEMENT, GRANTEE IS DEEMED TO HAVE
ACCEPTED THE AWARD OF RESTRICTED STOCK EVIDENCED BY THIS AGREEMENT
WITHOUT REQUIRING GRANTEE’S SIGNATURE, SUBJECT TO AND
OTHERWISE IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN
THIS AGREEMENT AND THE TERMS AND CONDITIONS SET FORTH IN THE
PLAN.
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Grantee:
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Address:
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Number of
Awarded Shares:
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Grant
Date:
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Vesting of
Awarded Shares:
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25%
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25%
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25%
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25%
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CEC Entertainment, Inc., a Kansas corporation
(the “ Company ”), hereby grants to the
individual whose name appears above (“ Grantee
”), pursuant to the provisions of the CEC Entertainment, Inc.
Second Amended and Restated 2004 Restricted Stock Plan, as amended
from time to time in accordance with its terms (the “
Plan ”), for good and valuable consideration, a
restricted stock award (the “ Award ”) of shares
(the “ Awarded Shares ”) of its common stock,
par value $.10 per share (the “ Common Stock ”),
effective as of the date of grant as set forth above (the “
Grant Date ”), upon and subject to the terms and
conditions set forth in this Restricted Stock Agreement (the
“ Agreement ”) and in the Plan, which is
incorporated herein by reference. Unless otherwise
defined in this Agreement, capitalized terms used in this Agreement
shall have the meanings assigned to them in the Plan.
1. Effect of the
Plan . Grantee acknowledges that the Plan and this
Agreement have been made available to Grantee, and represents that
he or she is familiar with the terms and provisions
thereof and hereof,
and hereby
accepts the Awarded Shares that were granted to Grantee, subject to
all of the provisions of the Plan and of this Agreement, together
with all rules and determinations from time to time issued by the
Committee pursuant to the Plan. The Company, by action
of the Committee or the Board, hereby reserves the right to alter,
amend, revise, suspend, or discontinue the Plan without the consent
of Grantee, so long as such alteration, amendment, revision,
suspension or discontinuance, unless otherwise required by law,
shall not adversely affect the rights and benefits available to
Grantee hereunder, and this Award shall be subject, without further
action by the Company or Grantee, to such alteration, amendment,
revision, suspension or discontinuance unless provided otherwise
therein.
2. Grant
. This Award shall evidence the grant of Awarded Shares
to Grantee. The Awarded Shares shall be subject to all
of the terms and conditions set forth in this Agreement and the
Plan, including the forfeiture conditions set forth in
Section 4 of this Agreement, the restrictions on transfer set
forth in Section 5 of this Agreement and the satisfaction of
the Required Withholding as set forth in Section 8(a) of this
Agreement. At the sole discretion of the Committee, the
Awarded Shares will be issued in either (i) uncertificated form,
with the Awarded Shares recorded in the name of Grantee in the
books and records of the Company or the Company’s transfer
agent with appropriate notation regarding the restrictions on
transfer imposed pursuant to this Agreement, and upon vesting and
the satisfaction of all conditions set forth in this Agreement, the
lapsing of transfer restrictions shall be reflected in the books
and records of the Company or the Company’s transfer agent,
as applicable, and upon request by Grantee, the Company shall cause
certificates representing the Awarded Shares to be issued to
Grantee, or (ii) certificated form pursuant to the terms
of Section 12.8 of the Plan. Grantee will in
no case receive a stock certificate representing the Awarded Shares
unless and until the Awarded Shares vest as provided in this
Agreement and all tax withholding obligations applicable to the
Vested Awarded Shares (as defined below) have been
satisfied. Any stock certificates evidencing the Awarded
Shares will be held in custody for Grantee by the Company until the
Awarded Shares have vested in accordance with Section 3 of
this Agreement. In accordance with the terms of Section
12.8 of the Plan, if Awarded Shares are issued in certificated
form, stock certificates for the Awarded Shares will be endorsed
with the legends contained in such Section. Upon vesting
of the Awarded Shares, the Company shall, unless otherwise paid by
Grantee as described in Section 8(a) of this Agreement,
withhold that number of Vested Awarded Shares necessary to satisfy
any applicable tax withholding obligation of Grantee in accordance
with the provisions of Section 8(a) of this Agreement, and
thereafter shall deliver to Grantee all remaining Vested Awarded
Shares.
3. Vesting
Schedule; Service Requirement . Except as provided
otherwise in Section 4 of this Agreement, the Awarded Shares
shall vest if the Grantee does not experience a Termination of
Service during the period commencing with the Grant Date and ending
with the applicable date that such portion of the Awarded Shares
vests (each, a “ Vesting Date ”). A
Termination of Service occurs when a Grantee ceases to serve as an
employee of the Company or a Subsidiary for any reason (other than
due to death), including, but not limited to, Grantee's voluntary
resignation or termination by the Company with or without
cause. Awarded Shares that have vested pursuant to this
Agreement are referred to herein as “ Vested Awarded
Shares ” and Awarded Shares that have not yet vested
pursuant to this Agreement are referred to herein as “
Unvested Awarded Shares .” Subject to the provisions
of Section
4 of this
Agreement, if the Grantee does not experience a Termination of
Service prior to an applicable Vesting Date, the Awarded Shares
will vest in accordance with the Vesting Dates set forth on the
first page of this Agreement under the heading “Vesting of
Awarded Shares.” If an installment of the vesting
would result in a fractional Vested Awarded Share, such installment
will be rounded to the next lower Awarded Share, as determined by
the Company, except the final installment, which will be for the
balance of the Awarded Shares. The treatment of any
fractional Vested Awarded Share remaining as of the date of the
final installment shall be determined in accordance with Section
12.10 of the Plan.
4. Conditions of
Forfeiture .
(a) Upon the effective
date of Grantee's Termination of Service (the “
Termination Date ”) before all of the Awarded Shares
become Vested Awarded Shares, all Unvested Awarded Shares as of the
Termination Date shall, without further action of any kind by the
Company or Grantee, be forfeited. Unvested Awarded
Shares that are forfeited shall be deemed to be immediately
transferred to the Company without any payment by the Company or
action by Grantee, and the Company shall have the full right to
cancel any evidence of Grantee's ownership of such forfeited
Unvested Awarded Shares and to take any other action necessary to
demonstrate that Grantee no longer owns such forfeited Unvested
Awarded Shares automatically upon such
forfeiture. Following such forfeiture, Grantee shall
have no further rights with respect to such forfeited Unvested
Awarded Shares. Grantee, by his accepta