Document:

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                                                                     EXHIBIT 4.3

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                           UP SHARES STOCK OPTION PLAN

                                       of

                            UNION PACIFIC CORPORATION

                         Effective as of April 30, 1998

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                           UP SHARES STOCK OPTION PLAN
                          OF UNION PACIFIC CORPORATION

1.       PURPOSE

         The purpose of the UP Shares Stock Option Plan of Union Pacific
Corporation is to promote and closely align the interests of employees of the
Company and its Participating Subsidiaries with the Company's shareholders by
providing stock-based compensation. The Plan is intended to strengthen the
Company's ability to reward performance which enhances long-term shareholder
value and to increase employee stock ownership through performance-based
compensation.

2.       DEFINITIONS

         The following terms shall have the following meanings:

         "Act" means the Securities Exchange Act of 1934, as amended.

         "Active Service" means performing service or being eligible to perform
service.

         "Administrator" means the Committee and any executive officer of the
Company when acting pursuant to authority delegated by the Committee pursuant to
Section 3.

         "Beneficiary" means any person or persons designated in writing by an
Optionee to the Committee on a form prescribed by it for that purpose, which
designation shall be revocable at any time by the Optionee prior to his or her
death, provided that, in the absence of such a designation or the failure of the
person or persons so designated to survive the Optionee, "Beneficiary" shall
mean such Optionee's estate; and further provided that no designation of
Beneficiary shall be effective unless it is received by the Company before the
Optionee's death.

         "Board" means the Board of Directors of the Company.

         "Committee" means the Committee designated by the Board to administer
this Plan pursuant to Section 3.

         "Common Stock" means the Common Stock, par value $2.50 per share, of
the Company.

         "Company" means Union Pacific Corporation, a Utah corporation, or any
successor corporation.

         "Eligible Employee" has the meaning set forth in Section 5.

         "Option" means each stock option granted under this Plan, all of which
shall be non-qualified.

         "Optionee" means any Eligible Employee of the Company or a
Participating Subsidiary (including directors who are also such employees) who
is granted an option under this Plan.

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         "Participating Subsidiary" means each Subsidiary of the Company other
than (A) Overnite Transportation Company, a Virginia corporation, and its
subsidiaries, and (B) Skyway Freight Systems, Inc., a California corporation,
and its subsidiaries.

         "Performance Criteria" means for the period from May 1, 1998 to April
30, 1999, reportable injuries and lost work days per 200,000 man-hours improve
an average of 20% or more over the period from May 1, 1997 to April 30, 1998 and
the average Service Delivery Index as calculated by UPRR is 66 or more.

         "Plan" means this UP Shares Stock Option Plan of Union Pacific
Corporation, as amended from time to time.

         "Stock Administrator" means the Company's third party stock
administrator or any other person designated by the Committee to assist in the
administration of the Plan.

         "Subsidiary" means any corporation of which the Company or UPRR, as the
case may be, owns directly or indirectly at least a majority of the outstanding
shares of voting stock.

         "UPRR" means Union Pacific Railroad Company, a Delaware corporation.

         "Vesting Date" means, unless the Committee shall determine otherwise,
May 1, 2001, provided that if the Performance Criteria have been met on April
30, 1999, the Vesting Date shall be May 1, 1999.

3.       ADMINISTRATION

         (a) Composition of Committee. This Plan shall be administered by the
Committee which shall comprise not less than three members of the Board, none of
whom shall be employees of the Company or any Participating Subsidiary. The
Committee shall have full authority to construe and interpret this Plan, to
determine employees eligible under this Plan, to determine the date the Options
shall vest, to establish performance criteria in connection with the vesting of
Options, to establish, amend and rescind rules and regulations relating to this
Plan, to administer this Plan, and to take all such steps and make all such
determinations in connection with this Plan and Options granted thereunder as it
may deem necessary or advisable. Each Option shall, if required by the
Committee, be evidenced by an agreement to be executed by the Company and the
Optionee, respectively, and contain provisions not inconsistent with this Plan.
All determinations of the Committee shall be by a majority of its members and
shall be evidenced by resolution, written consent or other appropriate action,
and the Committee's determinations shall be final. Each member of the Committee,
while serving as such, shall be considered to be acting in his or her capacity
as a director of the Company. The Committee may delegate any or all of its
authority under this Plan to the Senior Vice President - Human Resources or
other executive officer of the Company.

         (b) Determinations of the Committee. All decisions, determinations and
interpretations by the Committee regarding this Plan shall be final and binding
on all Optionees. The Committee shall

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consider such factors as it deems relevant to making such decisions,
determinations and interpretations including, without limitation, the
recommendations or advice of any director, officer or employee of the Company
and such attorneys, consultants and accountants as it may select.

4.       SHARES SUBJECT TO THIS PLAN

         Subject to the provisions of Section 9 hereof, the maximum number and
kind of shares as to which Options may be granted under this Plan are 12 million
shares of Common Stock. Shares of Common Stock subject to Options under the Plan
may be either authorized but unissued shares or shares previously issued and
reacquired by the Company.

5.       ELIGIBILITY

         Eligibility to receive a grant of an Option under this Plan is limited
to non-agreement employees of the Company or a Participating Subsidiary and
agreement employees of UPRR or a Subsidiary of UPRR who meet the following
criteria (each and "Eligible Employee"):

         (a) Non-Agreement Employees. Non-agreement employees must have been
employed by the Company or a Participating Subsidiary on or before April 30,
1998, must not have been terminated from their employment with the Company or a
Participating Subsidiary at any time prior to the Vesting Date and must be
employed with the Company or a Subsidiary on the Vesting Date.

         (b) Agreement Employees. Agreement employees must have been in Active
Service with UPRR or a Subsidiary of UPRR on April 30, 1998 and must also be in
Active Service with UPRR or a Subsidiary of UPRR on the Vesting Date.

6.       GRANT OF OPTIONS

         Each Optionee is granted an Option on April 30, 1998 to purchase 200
shares of Common Stock.

7.       TERMS AND CONDITIONS OF THE OPTIONS

         All Options under this Plan shall be non-qualified options and shall be
granted subject to the following terms and conditions:

         (a) Date of Grant. The date of grant shall be April 30, 1998.

         (b) Option Price. The option price per share with respect to the Option
shall be $55.00.

         (c) Vesting. All Options shall vest and be exercisable on the Vesting
Date. If, however, on the Vesting Date, an Eligible Employee is on long-term
disability, furlough or other similar leave (as determined by the Committee),
their Option shall vest upon the date of their return to Active Service.

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         (d) Duration of Options. Subject to Section 7(i), Options shall be
exercisable commencing on the Vesting Date and continuing to and including April
30, 2008.

         (e) Exercise of Option. Except as provided in Section 7(i), the shares
of Common Stock covered by an Option may not be purchased prior to the Vesting
Date, but thereafter may be purchased during the balance of the option exercise
period by notice to the Stock Administrator. All 200 shares of Common Stock
available under the Option must be purchased at the same time.

         (f) Payment. Shares of Common Stock purchased under the Option shall,
at the time of purchase, be paid for in full in cash. To the extent permitted by
the Committee, the option price may be paid by authorizing the Stock
Administrator to withhold shares of Common Stock otherwise issuable on exercise
of the Option. Such shares withheld to pay the option price shall be valued at
fair market value on the date the Option is exercised in accordance with the
procedures to be established by the Committee. An Optionee shall have none of
the rights of a shareholder until the shares of Common Stock are issued to him
or her.

         (g) Purchase for Investment. The Committee shall have the right to
require that each Optionee or other person who shall exercise an Option under
the Plan represent and agree that any shares of Common Stock purchased pursuant
to such Option will be purchased for investment and not with a view to the
distribution or resale thereof or that such shares will not be sold except in
accordance with such restrictions or limitations as may be set forth by the
Committee.

         (h) Non-Transferability of Options. During an Optionee's lifetime, the
Option may be exercised only by the Optionee. Options shall not be transferable,
except for the exercise by the Optionee's Beneficiary upon the death of the
Optionee.

         (i) Termination of Employment. Upon the termination of an Optionee's
employment with the Company or a Subsidiary prior to the Vesting Date, the
Option shall immediately be forfeited. Upon the termination of an Optionee's
employment with the Company or a Subsidiary on or after the Vesting Date, the
Option shall be exercisable for a period of one (1) year after the date of such
termination. Notwithstanding the foregoing, in no event, shall any Option be
exercisable subsequent to April 30, 2008. Termination includes, without
limitation, death, retirement, resignation, long-term disability or any other
termination whatsoever.

8.       REGULATORY APPROVALS AND LISTING

         The Company shall not be required to issue to an Optionee any
certificate for any shares of Common Stock upon exercise of an Option prior to
(i) the obtaining of any approval from any governmental agency which the
Company, in its sole discretion, shall determine to be necessary or advisable,
(ii) the admission of such shares to listing on any stock exchange on which the
Common Stock may then be listed, and (iii) the completion of any registration or
other qualification of such shares under any state or federal law or rulings or
regulations of any governmental body which the Company, in its sole discretion,
shall determine to be necessary or advisable. The Company shall have the ability
to suspend exercise of Options as to any or all Optionees whenever any required
registration statement (or prospectus

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under such registration statement) is not effective or does not contain all
required information necessary to make the information contained therein not
misleading.

9.       ADJUSTMENT IN EVENT OF CHANGES IN CAPITALIZATION

         In the event of a recapitalization, stock split, stock dividend,
combination or exchange of shares, merger, consolidation, rights offering,
separation, spin-off, reorganization or liquidation, or any other change in the
corporate structure or shares of the Company, the Committee may make such
equitable adjustments as it may deem appropriate in the number and kind of
shares authorized by this Plan, in the option price of outstanding Options and
in the number and kind of shares subject to outstanding Options.

10.      TAXES

         (a) Withholding Requirements. The Committee may make such provisions or
impose such conditions as it may deem appropriate for the withholding or payment
by an Optionee of any taxes that the Committee determines are required in
connection with any Option granted under this Plan, and an Optionee's rights in
any Option are subject to satisfaction of such conditions.

         (b) Payment of Withholding Taxes. Notwithstanding the terms of Section
10(a), the Committee may provide that all or any portion of the taxes required
to be withheld or, if permitted by the Committee, desired to be paid by the
Optionee, in connection with the exercise of any Option shall be paid or, at the
election of the Optionee, may be paid by withholding shares of Common Stock
otherwise issuable or subject to such Option having a fair market value equal to
the amount required or elected to be withheld or paid. Any such election is
subject to such conditions or procedures as may be established by the Committee
and may be subject to approval by the Committee.

11.      TERM OF THIS PLAN

         No Options shall be granted pursuant to this Plan after April 30, 1998,
but grants of Options theretofore granted may extend beyond that date and the
terms and conditions of this Plan shall continue to apply thereto.

12.      TERMINATION OR AMENDMENT OF THIS PLAN

         The Committee may from time to time alter or amend this Plan or any
part thereof, provided that no alteration or amendment with respect to any
Options may be made which would materially impair the rights of an Optionee
without the consent of such Optionee, except that such consent shall not be
necessary with respect to any alteration or amendment deemed necessary to ensure
that the Company may obtain any approval referred to in Section 8 or to ensure
that the grant of Options, the exercise of Options or any other provision of
this Plan complies with Section 16(b) of the Act.

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13.      SECTION 16(b) REQUIREMENTS

         In order to comply with Section 16(b) of the Act, the Committee may
permit Section 16(b) reporting officers of the Company or a Participating
Subsidiary to exercise Options granted under this Plan by a stock-for-stock or
attestation method of exercise.

14.      GENERAL PROVISIONS

         (a) Employment at Will. Neither this Plan nor the grant of any Option
nor any action by the Company, any Subsidiary or the Committee shall be held or
construed to confer upon any Optionee any right to be continued in the employ of
the Company or a Subsidiary. The Company and each Subsidiary expressly reserve
the right to discharge, without liability but subject to his or her rights under
this Plan, any Optionee whenever in the sole discretion of the Company or a
Subsidiary, as the case may be, its interest may so require.

         (b) Governing Law. This Plan and any agreements or other documents
hereunder shall be interpreted and construed in accordance with the laws of the
State of Utah and applicable federal law. The Committee may provide that any
dispute as to any Option shall be presented and determined in such forum as the
Committee may specify, including through binding arbitration. Any reference in
this Plan or other document evidencing any Option to a provision of law or to a
rule or regulation shall be deemed to include any successor law, rule or
regulation of similar effect or applicability.

15.      LIABILITY OF COMPANY

         The Company and any Subsidiary which is in existence or hereafter comes
into existence shall not be liable to an Optionee or other persons as to: (a)
the non-issuance or sale of shares of Common Stock as to which the Company has
been unable to obtain from any regulatory body having jurisdiction the authority
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any shares of Common Stock hereunder; and (b) any tax consequence expected,
but not realized, by any Optionee or other person due to the receipt, exercise
or settlement of any Option granted hereunder.

16.      EFFECTIVE DATE

         This Plan shall be effective as of April 30, 1998.

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                                  EXHIBIT 10(a)

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                            2001 EMPLOYMENT AGREEMENT

This 2001 Employment Agreement (the "Agreement") is executed as of the 13th day
of November, 2000, by and between RICHARD M. FRANK ("Employee") and CEC
ENTERTAINMENT, INC.., a Kansas corporation ("Company").

                                    RECITALS:

         WHEREAS, the Employee and the Company have heretofore entered into an
agreement whereby Employee is employed by the Company as Chief Executive Officer
pursuant to certain terms and conditions; and

         WHEREAS, the Board of Directors of the Company (the "Board of
Directors") has offered Employee continued employment in consideration for the
compensation and the other benefits hereinafter set forth, and Employee is
willing to continue in the employ of the Company on these terms;

         NOW, THEREFORE, in consideration of the mutual promises hereinafter
contained and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, it is agreed:

         1. Current Employment Agreement. The Company and Employee heretofore
entered into an employment agreement dated March 3, 1997 (the "Current
Employment Agreement"). The term of the Current Employment Agreement expires on
the last day of the fiscal year of the Company ending on or about December 31,
2000. Company and Employee hereby agree and affirm that the Current Employment
Agreement is and shall be in full force and effect through the last day of the
fiscal year of the Company ending on or about December 31, 2000.

         2. Term. Following the expiration of the Current Employment Agreement,
the Company employs Employee and Employee accepts employment from the Company
upon the terms and conditions specified in this Agreement. Subject to the
provisions regarding termination set forth in Sections 15 and 16 hereof, the
term of this Agreement shall begin as of January 1, 2001 (the "Effective Date")
and shall terminate on the last day of the fiscal year of the Company ending on
or about December 31, 2005 (the "Term").

         3. Basic Salary. For services rendered by Employee under this
Agreement, the Company shall pay Employee the "Basic Salary," provided for in
this Section 3, as follows:

            (1)   During the Term of Employee's employment under this Agreement,
                  the Employee shall receive as minimum Basic Salary the amount
                  of One Million Dollars ($1,000,000.00) per year. The Basic
                  Salary may be increased in such amounts and on such dates as
                  the Compensation Committee of the Board of Directors may
                  determine from time to time.

            (2)   The Basic Salary provided for in this Section 3 shall be in
                  addition to any other compensation and/or benefits provided to
                  Employee (i) pursuant to this Agreement or (ii) otherwise at
                  the discretion of the Board of Directors, including, but not
                  limited to, the annual bonus opportunity available to home
                  office employees and officers of the Company at a level
                  commensurate with his position as Chief Executive Officer.

         4. Stock Options. Employee has received from the Company on March 7,
2000 options (the "Stock Options") to purchase two hundred fifty thousand
(250,000) shares of the Company's Common Stock, par value $ .10 per share
(Common Stock) pursuant to the Company's 1997 Non-Statutory Stock Option Plan.
Of the Stock Options granted as described in this Section 4, twenty percent
(20%) shall vest on March 7, 2001, forty percent (40%) shall vest on March 7,
2002, sixty percent (60%) shall vest on March 7, 2003,eighty percent (80%) shall
vest on March 7, 2004 and one hundred percent (100%) shall vest on March 7,
2005.

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         5. Severance Pay. If the Company terminates the employment of Employee
at any time (other than pursuant to Section 16 hereof), or if a "Change of
Control" occurs with respect to the Company and Employee voluntarily terminates
his employment with the Company within one year after such a Change of Control,
the Company shall be required to pay Employee severance pay in the amount of
Three Million Dollars ($3,000,000.00). Such severance pay shall be payable to
Employee by the Company in cash on or before the tenth (10th) day after
theTermination Date, as defined in Section 15.

            For purposes of this Section 5, a "Change of Control" shall be
deemed to have occurred with respect to the Company if: (a) any person or group
of persons acting in concert, in which person or group of persons the Employee
is not an investor, partner, officer, director or member, shall acquire,
directly or indirectly, the power to vote, or direct the voting of, more than
thirty-three percent (33%) of the then outstanding voting securities of the
Company; or (b) during any consecutive eighteen (18) month period a majority of
the Company's Board of Directors is elected or appointed and consists of persons
who are not directors of the Company as of the Effective Date, and whose
election or appointment as directors of the Company was actively opposed by
Employee, as evidenced by Employee's vote (in his capacity or capacities, if
any, as a director and/or stockholder of the Company) against their election of
appointment and by written notice of his opposition to their election or
appointment given by Employee to the current directors of the Company not more
than five (5) business days following their respective election or appointment;
provided, however, that in no event shall a change in composition of the
Company's Board of Directors pursuant to an election of Board of Directors
members pursuant to Section 4.6 of the Company's Articles of Incorporation, as
amended through the date of this Agreement, constitute or result in a "Change of
Control" for purposes of this Section 5.

         6. Additional Payments.

         (a) In the event that any payment or benefit (within the meaning of
         Section 280G of the Internal Revenue Code of 1986, as amended (the
         "Code")), to the Employee or for his benefit paid or payable or
         distributed or distributable (at any time or from time to time)
         pursuant to the terms of this Agreement or otherwise in connection
         with, or arising out of, his employment with the Company or a change in
         ownership or effective control of the Company or of a substantial
         portion of its assets (a "Payment" or "Payments"), would be subject to
         the excise tax imposed by Section 4999 of the Code or any interest or
         penalties are incurred by the Employee with respect to such excise tax
         (such excise tax, together with any such interest and penalties, being
         hereinafter collectively referred to as the "Excise Tax"), then the
         Employee will be entitled to receive an additional payment or payments,
         as the case may be (referred to individually or collectively as a
         "Gross-Up Payment") in an amount such that after payment by the
         Employee of all taxes (including any interest or penalties imposed with
         respect to such taxes and the Excise Tax, other than interest and
         penalties imposed by reason of the Employee's failure to file timely a
         tax return or pay taxes shown due on his return), including any Excise
         Tax imposed upon the Gross-Up Payment, the Employee retains an amount
         of the Gross-Up Payment equal to the Excise Tax imposed upon the
         Payments.

         (b) An initial determination as to whether a Gross-Up Payment is
         required pursuant to this Agreement and the amount of such Gross-Up
         Payment shall be made at the Company's expense by an accounting firm
         selected by the Company and reasonably acceptable to the Employee which
         is designated as one of the largest national accounting firms in the
         United States (the "Accounting Firm"). The Accounting Firm shall
         provide its determination (the "Determination"), together with detailed
         supporting calculations and documentation to the Company and the
         Employee within ten (10) days of the Termination Date, as defined in
         Section 15, or such other time as requested by the Company or by the
         Employee (provided the Employee reasonably believes that any of the
         Payments may be subject to the Excise Tax) and if the Accounting Firm
         determines that no Excise Tax is payable by the Employee with respect
         to a Payment or Payments, it shall furnish the Employee with an opinion
         reasonably acceptable to the Employee that he has substantial authority
         not to report any Excise Tax on his federal tax return with respect to
         any such Payment or Payments. Within ten (10) days of the delivery of

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         the Determination to the Employee, the Employee shall have the right to
         dispute the Determination. The Gross-Up Payment, if any, as determined
         pursuant to this Section 6(b) shall be paid by the Company to the
         Employee within five (5) days of the receipt of the Determination. The
         existence of the dispute shall not in any way affect the Employee's
         right to receive the Gross-Up Payment in accordance with the
         Determination. Upon the final resolution of a dispute, the Company
         shall promptly pay to the Employee any additional amount required by
         such resolution. If there is no dispute, the Determination shall be
         binding, final and conclusive upon the Company and the Employee.

         (c) The Employee shall notify the Company in writing of any claim by
         the Internal Revenue Service that, if successful, would require the
         payment by the Company of the Gross-Up Payment. Such notification shall
         be given as soon as practicable but no later than ten (10) business
         days after the Employee knows of such claim and shall apprise the
         Company of the nature of such claim and the date on which such claim is
         requested to be paid. The Employee shall not pay such claim prior to
         the expiration of the thirty (30) day period following the date on
         which he gives such notice to the Company (or such shorter period
         ending on the date that any payment of taxes with respect to such claim
         is due). If the Company notifies the Employee in writing prior to the
         expiration of such period that it desires to contest such claim, the
         Employee shall:

                  (i) give the Company any information reasonably requested by
                  the Company relating to such claim,

                  (ii) take such action in connection with contesting such claim
                  as the Company shall reasonably request in writing from time
                  to time, including, without limitation, accepting legal
                  representation with respect to such claim by an attorney
                  reasonably selected by the Company.

                  (iii) cooperate with the Company in good faith in order to
                  effectively contest such claim, and

                  (iv) permit the Company to participate in any proceedings
                  relating to such claim, provided, however, that the Company
                  shall bear and pay directly all costs and expenses (including
                  additional interest and penalties) incurred in connection with
                  such contest and shall indemnify and hold the Employee
                  harmless, on an after-tax basis, for any Excise Tax or income
                  tax, including interest and penalties with respect thereto,
                  imposed as a result of such representation and payment of
                  costs and expenses. Without limitation of the foregoing
                  provisions of this Section 6(c), the Company shall control all
                  proceeding taken in connection with such contest and, at its
                  sole option, may pursue or forego any and all administrative
                  appeals, proceedings, hearings and conferences with the taxing
                  authority in respect of such claim and may, at its sole
                  option, either direct the Employee to pay the tax claimed and
                  sue for a refund, or contest the claim in any permissible
                  manner, and the Employee agrees to prosecute such contest to a
                  determination before any administrative tribunal, in a court
                  of initial jurisdiction and in one or more appellate courts,
                  as the Company shall determine; provided, however, that if the
                  Company directs the Employee to pay such claim and sue for a
                  refund, the Company shall advance the amount of such payment
                  to the Employee, on an interest-free basis and shall indemnify
                  and hold the Employee harmless, on an after-tax basis, from
                  any Excise Tax or income tax, including interest or penalties
                  with respect thereto, imposed with respect to such advance or
                  with respect to any imputed income with respect to such
                  advance; and further provided that any extension of the
                  statute of limitations relating to payment of taxes for the
                  taxable year of the Employee with respect to which such
                  contested amount is claimed to be due is limited solely to
                  such contested amount. Furthermore, the Company's control of
                  the contest shall be limited to issues with respect to which a
                  Gross-Up Payment would be payable hereunder and the Employee
                  shall be entitled to settle or contest, as the case may be,
                  any other issue raised by the Internal Revenue Service or any
                  other taxing authority.

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         (d) If, after the receipt by the Employee of an amount advanced by the
         Company pursuant to Section 6(c), the Employee becomes entitled to
         receive any refund with respect to such claim, the Employee shall
         (subject to the Company's complying with the requirements of Section
         6(c)) promptly pay to the Company the amount of such refund (together
         with any interest paid or credited thereon after taxes applicable
         thereto). If, after the receipt by the Employee of an amount advanced
         by the Company pursuant to Section 6(c), a determination is made that
         the Employee shall not be entitled to any refund with respect to such
         claim and the Company does not notify the Employee in writing of its
         intent to contest such denial of refund prior to the expiration of
         thirty (30) days after such determination, then such advance shall be
         forgiven and shall not be required to be repaid and the amount of such
         advance shall offset, to the extent thereof, the amount of Gross-Up
         Payment required to be paid.

         7. Expenses. Subject to the rules and procedures the Company may
specify from time to time, the Company shall reimburse Employee for all
reasonable expenses incurred by Employee on behalf of the Company.

         8. Automobile. Employer shall pay to Employee the sum of One Thousand
Three Hundred Dollars ($1,300.00) per month (subject to adjustment from time to
time in direct proportion to generally applicable adjustment by the Company to
its automobile allowances) to reimburse Employee for the use of Employee's
automobile in the performance of his duties under this Agreement, and the
Company shall further pay directly or by reimbursement to Employee (as the
Company and Employee may from time to time agree) the premiums upon a policy of
collision and liability insurance covering such automobile. All other costs and
expenses incurred in the operation and maintenance of Employee's automobile,
including but not limited to the cost of all fuel, oil, maintenance and repairs,
shall be paid solely by Employee.

         9. Duties of Employee. In accepting continued employment by the
Company, Employee agrees to undertake and assume the responsibility, subject to
the general direction and control of the Board of Directors, of performing for
and on behalf of the Company the duties of Chairman of the Board of Directors
and Chief Executive Officer of the company, including formulation of the
policies and administration of the Company's affairs, and such other duties as
are normally associated with and inherent in such capacity. Employee shall have
authority to hire the staff necessary to accomplish the Company's goals. In
addition, if requested, Employee shall serve as an officer and/or director of
any affiliates of the Company without additional compensation.

         10. Exclusive Service. Employee shall devote substantially his full
time and attention to rendering services to the Company and in furtherance of
the Company's best interests, provided that Employee may make and manage his
personal passive investments. During the Term of this Agreement, other than as
an officer and/or director of an affiliate of the Company, Employee shall not be
employed by any other person or engage in any other business or occupation;
provided that Employee may engage in the business of making and managing his
personal passive investments.

         11. Health and Disability Insurance. The Company shall provide Employee
and his family with health, medical, hospitalization and dental insurance
coverage and/or cost reimbursement benefits which provide for 100% of such costs
and expenses to be paid on behalf of and/or reimbursed to Employee and his
family, whether through existing insurance and/or reimbursement plans covering
the Company's employees or through special plans relating specifically to
Employee, or a combination thereof. For purposes of this Section 11, the
Employee's family shall include his spouse and children. The Company shall also
provide disability insurance coverage to Employee under any Company plan(s) for
such coverage as in effect from time to time for that category or class of the
Company's employees which includes the Company's senior executive officers,
provided that if necessary to provide Employee with monthly disability income
benefits of at least fifty percent (50%) of Employee's Basic Salary in the event
of Employee's permanent disability, the Company shall adopt a special plan
relating specifically to Employee which results in Employee having coverage
providing total disability income benefits of at least 50% of Employee's Basic
Salary.

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<PAGE>   6

         12. Continuation of Health Benefit Coverage. Upon the termination of
Employee's employment for any reason, including a termination due to the
expiration of the Term of this Agreement or any renewal thereof; the Company
shall provide Employee and his family the health, medical, hospitalization and
dental insurance coverage and/or cost reimbursement benefits set forth in
Section 11 hereof, for a period not to exceed the earlier of (i) five (5) years
or (ii) the date on which Employee and his family become covered under a policy
or plan paid for by a new employer of Employee providing substantially similar
coverage and benefits. In the event Employee's employment terminates and this
Section 12 becomes effective, and thereafter Employee dies while the benefits
provided herein are still in effect, such benefits shall continue for Employee's
family until five (5) years have passed following his termination of employment.
The benefits set forth under this Section 12 shall be provided in addition to
any other payments, benefits or compensation, if any, to which Employee, his
estate of his designated beneficiary is entitled due to his termination of
employment as set forth in this Agreement.

         13. Life Insurance. The Company shall maintain and pay the premiums on
one or more life insurance policies on Employee's life, which may include
insurance on Employee's life under any group term life insurance plan maintained
from time to time by the Company for its employees. The aggregate face amount(s)
of such policy or policies shall be at least Five Hundred Thousand Dollars
($500,000.00).

         Any policy of insurance or certificate of insurance under a group term
policy maintained by the Company under this Section 13 shall be owned by the
Company, and the Employee (or his assignee) shall have the sole right to
designate the beneficiary or beneficiaries of the proceeds payable thereunder
upon the death of the Employee.

         14. Vacation and Days Off. Employee may take reasonable vacations and
days off agreeable to the Company and Employee; provided, however, that Employee
shall be entitled to at least five (5) weeks of paid vacation per year, which
Employee may use at any time during each year, and to the extent not used,
during a subsequent year.

         15. Termination After Notice. Either Employee or the Company may
terminate the employment of Employee at any time during the Term of this
Agreement or any renewal thereof upon at least ninety (90) days' prior written
notice. In the event of such termination, the Company shall pay to Employee the
severance pay provided for under Section 5 hereof, if applicable, together with
all other compensation that would otherwise have been payable to Employee, as
provided in Section 17 hereof, and for the purposes of said Section 17, the
"Termination Date" shall be the effective date of termination set forth in the
ninety (90) days prior written notice referred to in the preceding sentence.

         16. Termination Upon Death or Disability.

         (a) Upon the termination of Employee's employment due to the death of
         Employee, the Company shall pay to the estate of Employee certain
         compensation that would otherwise have been payable to Employee, as
         provided in Section 17 hereof, and for the purposes of said section,
         the "Termination Date" shall be the date of Employee's death. If events
         had occurred prior to Employee's death entitling him to payments under
         Section 17 but the payments had not yet been made, such payments shall
         be made to his estate. If Employee dies during the Term of this
         Agreement and all of the Stock Options listed in Section 4, as well as
         any other stock options issued to Employee by the Company that are not
         listed in Section 4 (such other stock options being defined as "Stock
         Options" for purposes of this Section 16(a)), are not vested at the
         time of his death, then all such Stock Options that have been
         outstanding for at least one year shall become immediately vested at
         Employee's death and shall be exercisable only by the representative of
         his estate pursuant to the terms of his respective Stock Option
         agreements or certificates.

         (b) (i) During any period of disability, illness or incapacity during
         the Term of this Agreement, which renders Employee temporarily unable
         to perform the services required under this Agreement, Employee shall
         continue to receive the compensation payable under this Agreement.
         Employee's employment under this Agreement may be terminated as
         provided below upon Employee's permanent disability (as defined below).

                                       40

<PAGE>   7

         (ii) Employee shall be deemed to have suffered "permanent disability"
         if Employee is unable by reason of any medically determined physical or
         mental impairment to perform the duties required of him under this
         Agreement for a period of one hundred eighty (180) consecutive days in
         any twelve-month period. Periods of disability arising from unrelated
         causes shall not be combined. Upon a determination of permanent
         disability, the Board of Directors may terminate Employee's employment
         upon thirty (30) days' prior written notice. In the event of such
         termination, the Company shall pay to Employee certain compensation
         that would otherwise have been payable to Employee, as provided in
         Section 17, and for the purposes of said Section, the "Termination
         Date" shall be the effective date of termination following the
         Company's notice under the preceding sentence.

         17. Payments Due Upon Termination of Employee's Employment. In the
event of termination of Employee's employment under this Agreement pursuant to
Sections 15 or 16 hereof, the Company shall pay Employee or his estate, as the
case may be, the following payments or other items of compensation, for which
purpose the "Termination Date" shall be the Termination Date specified in
Sections 15 or 16 hereof, whichever is applicable:

                  (a) Basic Salary that would otherwise have been payable to
                  Employee under Section 3(a) hereof through the Termination
                  Date;

                  (b) all payments, if any, payable pursuant to Section 5
                  hereof.

         18. Waiver of Breach. The waiver by the Company of a breach of any of
the provisions of this Agreement by Employee shall not be construed as a waiver
of any subsequent breach of Employee.

         19. Binding Effect: Assignment. The rights and obligations of the
Company under this Agreement shall inure to the benefit of and shall be binding
upon the successors and assigns of the Company, whether by reason of merger,
consolidation, acquisition or other business combination, or otherwise. This
Agreement is a personal employment contract that may not be sold, assigned,
transferred or pledged as collateral by the Employee.

         20. Invalid Provisions. It is understood and agreed that in the event
any paragraph, provision or clause of this Agreement or any combination thereof
is found to be unenforceable at law, in equity, or under any presently existing
or hereafter enacted legislation, regulation or order of the United States, any
state of subdivision thereof or any municipality, those findings shall not in
any way affect the other paragraphs, provisions or clauses in this Agreement,
which shall continue in full force and effect.

         21. Performance. This Agreement shall be performed in Dallas County,
Texas.

         22. Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of Texas.

         23. Entire Agreement. This Agreement contains the entire agreement of
the parties and supersedes all prior agreements and understandings, oral or
written, with respect to the subject matter hereof, except to the extent that
provisions of the Current Employment Agreement are expressly stated herein to be
effective. This Agreement may be changed only by an agreement in writing signed
by the party against whom any waiver, change, amendment, modification or
discharge is sought.

         24. Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect the meaning or interpretation of
this Agreement.

                                       41

<PAGE>   8

         25. Notice. Any notice required or permitted to be given under this
Agreement to the Company shall be sufficient if in writing and if sent by
certified or registered mail, first class, return receipt requested, to the
registered office of the Company. Any notice required or permitted to be given
under this Agreement to Employee shall be sufficient if in writing and if sent
by certified or registered mail, first class, return receipt requested to
Employee at his last known address. Employee shall be solely responsible for
notifying the Company of his address on the date of this Agreement and all
subsequent changes of address.

         26. Gender. When the context in which words are used in this Agreement
indicate that such is the intent, words in the singular number shall include the
plural and vice versa and words in the masculine gender shall include the
feminine and neuter genders and vice versa.

         IN WITNESS WHEREOF, the parties have executed this Agreement, effective
as of the date and year first above written.

                                    COMPANY:

                                    CEC ENTERTAINMENT, INC.

                                    By:
                                       ----------------------------------------
                                           Michael H. Magusiak
                                           President

                                    EMPLOYEE:

                                    -------------------------------------------
                                    Richard M. Frank

                                       42

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