Document:

Form of Stock Option Agreement under the Non-Employee Director Stock Option Plan

 EXHIBIT 10.7 
 CEC ENTERTAINMENT, INC. 
 FORM OF NON-EMPLOYEE DIRECTORS STOCK OPTION AGREEMENT 
 [This is a Transferable Agreement/This is a Non-Transferable Agreement] 
 THIS NON-EMPLOYEE DIRECTORS STOCK OPTION CONTRACT (“the Contract”) is made and entered into on
                        , 20         (the “Granting Date”), by
and between CEC ENTERTAINMENT, INC., a Kansas corporation (the “Company”), and                          (the
“Optionee”). 
 WITNESSETH: 
 WHEREAS, the Shareholders of the Company (the “Shareholders”) have adopted the CEC Entertainment, Inc. Non-Employee Directors Stock Option Plan (the “Plan”), pursuant to which the President and Chief Financial Officer of
the Company (the “Committee”) may grant, from time to time, on or prior to the termination date specified in the Plan, options to purchase shares of the Common Stock of the Company to individuals who are non-employee directors of the
Company or of any of its Affiliates (as that term is defined in the Plan), in such amounts and under such form of agreement as shall be determined by the Committee; and WHEREAS, pursuant to the Plan, the Committee has determined that the Optionee
shall be granted an option to purchase shares of the Common Stock of the Company on the terms and conditions herein set forth; 
 NOW,
THEREFORE, in consideration of the mutual promises and covenants herein contained and other good and valuable consideration, the parties hereto do hereby agree as follows: 
 1. Incorporation of the Plan. A copy of the Plan is attached hereto and incorporated herein by reference, and all of the terms, conditions and
provisions contained therein shall be deemed to be terms, conditions and provisions of this Contract. All terms used herein which are defined in the Plan shall have the meanings given them in the Plan. The terms and conditions of the Plan will
prevail in the event of any inconsistency between the terms and conditions of this Contract and the Plan. 
 2. Grant of Option.
Pursuant to the authorization of the Committee, and subject to the terms, conditions and provisions contained in the Plan and this Contract, the Company hereby grants to the Optionee, an option (the “Option”) to purchase from the Company
all or any part of an aggregate of              shares of Common Stock of the Company, at the purchase price of
$             per share. The date first written above shall be deemed to be the Granting Date of the Option. 
 3. Period of Exercise. The Option granted hereunder shall be exercisable from time to time by the Optionee subject to the following restrictions:

 (a) Vesting and Expiration Dates. Optionee may exercise up to an aggregate of fifty percent (50%) of the
option after January     , 20    , and an aggregate of one hundred percent (100%) of the option after January     , 20    . The Option
shall expire at 12:00 midnight on January     , 20    . 
  

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 (b) Exercise During Lifetime of Optionee. Except as my otherwise be provided for
in the Plan and this Contract, the Option shall be exercisable during the lifetime of the Optionee only by him or her. 
 (c)
Exercise after Death of Optionee. If an Optionee dies while serving as a member of the Board of Directors of the Company, the Option shall be exercisable (whether or not exercisable on the date of the death of such Optionee) by the person or
persons entitled to do so under the Optionee’s will, or, if the Optionee shall fail to make testamentary disposition of said Option or shall die intestate, by the Optionee’s legal representative or representatives, at any time prior to the
Expiration Date of the Option or within the time period provided for in the Plan from the date of such death, whichever is the shorter period. If an Optionee dies during the time period described in subsection (d) below, the Option shall be
exercisable (but only to the extent exercisable on the date of death of such Optionee) by the person or persons described above at any time within the time period provided for in the Plan after the date of such death, but in no event after the
Expiration Date of the Option. 
 (d) Cessation of Employment. If the directorship of the Optionee is terminated for
any reason other than (i) death of the Optionee, or (ii) on account of any act of fraud or intentional misrepresentation or embezzlement, misappropriation or conversion of assets or opportunities of the Company or any Affiliate, an Option
(to the extent otherwise exercisable on the date of such termination) shall be exercisable by the Optionee at any time prior to the Expiration Date of the Option or within the time period provided for in the Plan, whichever is the shorter period.
The Option of the Optionee shall automatically terminate as of the date his or her directorship is terminated, if the directorship is terminated on account of any act of (a) fraud or intentional misrepresentation, or (b) embezzlement,
misappropriation or conversion of assets or opportunities of the Company or any Affiliate. 
 4. Manner of Exercise. The Option
granted hereunder shall be exercised by delivering to the Company from time to time within the time limits specified in Paragraph 3 hereof a notice specifying the number of shares the Optionee then desires to purchase (and with respect to which the
Optionee has acquired the right to purchase, as described in Paragraph 3(a) above), together with either: (i) cash or other instrument acceptable to the Company for an amount equal to the option price for such number of shares; or
(ii) with the prior consent of the Committee, and upon receipt of all regulatory approvals, certificate for Common Stock of the Company, valued at the Fair Market Value (determined as provided in the Plan) of such Common Stock on the date of
exercise of this option, as payment of all or any portion of the option price for such number of shares; and (iii) such other instruments or agreements duly signed by the Optionee as may be specified by the Company in order that the issuance of
such number of shares comply with applicable rules and regulations under the Securities Act of 1933, as amended (the “Act”), any appropriate state securities laws or any requirement of any national securities exchange or market system on
which such stock may be traded. As soon as practicable after any such exercise of the Option in whole or in part by the Optionee, the Company will deliver to the Optionee a certificate or electronic recording of any such shares acquired by Optionee
through the exercise of his or her Options. 
  

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 5. Withholding. To the extent required by law the Company shall withhold any taxes required to be
withheld under any applicable Federal, state or other law and transmit such withheld amounts to the appropriate taxing authority. The Company may condition the transfer of stock after the exercise of the Option upon the Optionee’s remittance to
the Company of the amount of employment taxes which are required to be withheld or, with the consent of the Committee, to satisfy such withholding obligation by means of Share Withholding, as such term is defined in the Plan. 
 6. Notices. All notices, surrenders and other communications required or allowed to be made or given in connection with the Option granted
hereunder shall be in writing, shall be effective when received, and shall be hand delivered or sent by registered or certified mail (i) if to the Company, to CEC Entertainment, Inc., 4441 West Airport Freeway, Irving, Texas 75062, or
(ii) if to the Optionee, to the Optionee at the address shown beneath his or her signature hereto, or to such other address as to which may have notified the Company pursuant to this section. 
 7. Binding Effect. This Contract shall bind, and except as specifically provided in the Plan and this Contract, shall inure to the benefit of, the
respective heirs and legal representatives of the parties hereto. 
 8. Governing Law. This Contract and the rights of all persons
claiming hereunder shall be construed and determined in accordance with the laws of the State of Texas. 
 9. Multiple Counterparts.
This Contract may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 IN WITNESS WHEREOF, the Company has caused this Contract to be executed by its officer hereunto duly authorized and the Optionee has hereunto set his or
her hand, effective as of the date and year first written above. 
  

					
		 	CEC ENTERTAINMENT, INC.
			
		 	By:	 	 
			
		 	Name:	 	 
			
		 	Title:	 	 

  

					
	ATTESTED TO:
	
	 
		
	 	 	, Secretary

  

					
		 	 
		 	Optionee Signature
			
		 	Printed Name:	 	 
			
		 	Location Number:	 	 

					
			
		 	Tax I.D. Number:	 	 

					
			
		 	Address:	 	 4441 West Airport Freeway
 Irving, Texas
75062

  

 Page 3 of 3Form of Restricted Stock Agreement under the 2004 Restricted Stock Plan

 EXHIBIT 10.9 
 FORM OF RESTRICTED STOCK AGREEMENT 
 CEC ENTERTAINMENT, INC. 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. 
  

			
	 Grantee:
	 	 
		
	 Address:
	 	 
		
	 Number of Awarded Shares:
	 	 
		
	 Grant Date:
	 	 

  
  

								
	 Vesting of Awarded Shares:
	  	Date	  	Aggregate Vested
Shares	  	Vested %	 
		  		  		  	25	%
		  		  		  	50	%
		  		  		  	75	%
		  		  		  	100	%

 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. 2004 Restricted Stock Plan, as amended from time to time in accordance with its terms (the “Plan”), 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. 
  

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 1. Effect of the Plan. The Awarded Shares granted to Grantee are 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 Grantee’s ownership of the Awarded Shares. 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. Grantee will not 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. 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, the 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”). 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. 
  

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 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 acceptance of the Award granted pursuant to this Agreement, irrevocably grants to the Company a power of attorney to transfer to the Company Unvested Awarded Shares that are forfeited and shall execute any documents requested by the Company in
connection with such forfeiture and transfer. The provisions of this Agreement regarding transfers of Unvested Awarded Shares that are forfeited shall be specifically performable by the Company in a court of equity or law. 
 (b) Notwithstanding anything to the contrary in this Agreement, the Unvested Awarded Shares shall become vested (i) on the death of Grantee while
Grantee is still an employee of the Company or a Subsidiary, (ii) in accordance with the provisions of Article 10 of the Plan relating to a Change in Control event, or (iii) or at the direction of the Committee in accordance with the
provisions of Sections 6.6 and 6.10 of the Plan. 
 5. Non-Transferability. Grantee may not sell, transfer, pledge, exchange,
hypothecate, or otherwise encumber or dispose of any of the Unvested Awarded Shares, or any right or interest therein, by operation of law or otherwise. Any transfer in violation of this Section 5 shall be void and of no force or effect, and
shall result in the immediate forfeiture of all Unvested Awarded Shares. The Company shall not be required (i) to transfer on its books any Unvested Awarded Shares that have been sold or otherwise transferred in violation of any of the
provisions of this Agreement or the Plan, or (ii) to treat as owner of such Unvested Awarded Shares, or accord the right to vote or pay or deliver dividends or other distributions to, any purchaser or other transferee to whom or to which such
Unvested Awarded Shares shall have been so transferred. 
 6. Dividend and Voting Rights. Subject to the restrictions contained in
this Agreement, Grantee shall have the rights of a stockholder with respect to the Awarded Shares, including the right to vote all such Awarded Shares, including Unvested Awarded Shares, and to receive all dividends, paid or delivered thereon, from
and after the date hereof. In the event of forfeiture of Unvested Awarded Shares, Grantee shall have no further rights with respect to such Unvested Awarded Shares. However, the forfeiture of the Unvested Awarded Shares pursuant to Section 4
hereof shall not create any obligation to repay cash dividends received as to such Unvested Awarded Shares, nor shall such forfeiture invalidate any votes given by Grantee with respect to such Unvested Awarded Shares prior to forfeiture. 

 

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 7. Capital Adjustments and Corporate Events. If, from time to time during the term of this
Agreement, there is any capital adjustment affecting the outstanding Common Stock as a class without the Company’s receipt of consideration, the Unvested Shares shall be adjusted in accordance with the provisions of the Plan. Any and all new,
substituted or additional securities to which Grantee may be entitled by reason of Grantee’s ownership of the Unvested Awarded Shares hereunder because of a capital adjustment shall be immediately subject to the forfeiture provisions of this
Agreement and included thereafter as “Unvested Awarded Shares” for purposes of this Agreement. 
 8. Tax Matters.

 (a) The Company’s obligation to deliver Awarded Shares to Grantee upon the vesting of such shares shall be subject to the satisfaction
of all applicable federal, state and local income and employment tax withholding requirements (the “Required Withholding”). If the Company has not received from Grantee payment for the full amount of the Required Withholding within
five (5) business days after the Company has notified the Grantee of the amount of such Required Withholding, the Company shall withhold from the Vested Awarded Shares that otherwise would have been delivered to Grantee a number of Vested
Awarded Shares of sufficient value necessary to satisfy Grantee’s Required Withholding, and deliver the remaining Vested Awarded Shares to Grantee. The amount of the Required Withholding and the number of Vested Awarded Shares to be withheld by
the Company, if applicable, to satisfy Grantee’s Required Withholding, as well as the amount reflected on tax reports filed by the Company, shall be based on the closing price on the New York Stock Exchange Consolidated Tape (or in the absence
of reported sales on such day, the most recent previous day for which sales were reported), for the Vested Awarded Shares on the applicable Vesting Date. The obligations of the Company under this Award will be conditioned on such satisfaction of the
Required Withholding. 
 (b) Grantee is urged to review with Grantee’s own tax advisors the federal, state, and local tax consequences
of this Award. Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. In accepting this Award, Grantee (and not the Company) shall be responsible for Grantee’s own tax
liability that may arise as a result of the Award. Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the fair market value of the Awarded Shares as of the Vesting Date. Grantee
may elect to be taxed at Grant Date rather than at the time the Awarded Shares vest by filing an election under Section 83(b) of the Code with the Internal Revenue Service and by providing a copy of the election to the Company. BY ACCEPTING
THIS AWARD AND THE TERMS AND CONDITIONS SET FORTH HEREIN, GRANTEE HAS BEEN INFORMED OF THE AVAILABILITY OF MAKING AN ELECTION IN ACCORDANCE WITH SECTION 83(b) OF THE CODE; THAT SUCH ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE (AND
A COPY OF THE ELECTION GIVEN TO THE COMPANY) WITHIN 30 DAYS OF THE GRANT OF AWARDED SHARES TO GRANTEE; AND THAT GRANTEE IS SOLELY RESPONSIBLE FOR MAKING SUCH ELECTION. 
 9. Entire Agreement; Governing Law. The Plan and this Agreement contain all of the terms and provisions regarding the subject matter hereof and supersede in their entirety all prior undertakings and agreements
of the Company and Grantee (collectively, the “Parties”) with respect to the subject matter hereof. If there is any inconsistency between the provisions of this Agreement and of the Plan, the provisions of the Plan shall govern.

  

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Nothing in the Plan and this Agreement (except as expressly provided therein or herein) is intended to confer any rights or remedies on any person other than
the Parties. The Plan and this Agreement are to be construed in accordance with and governed by the laws of the State of Kansas, without giving effect to any choice-of-law rule that would cause the application of the laws of any jurisdiction other
than the laws of the State of Kansas to apply to the rights and duties of the Parties. Should any provision of the Plan or this Agreement relating to the Shares be determined by a court of law to be illegal or unenforceable, such provision shall be
enforced to the fullest extent allowed by law, and the other provisions shall nevertheless remain effective and shall remain enforceable. 
 10. Amendment; Waiver. Subject to the terms and conditions of the Plan, this Agreement may be amended or modified by means of a written document or documents signed by the Company. If such amendment or modification shall adversely
affect any rights of the Grantee, such amendment or modification shall be signed by the Grantee, unless such amendment or modification is required by law. Any provision for the benefit of the Company contained in this Agreement may be waived, either
generally or in any particular instance, by the Board or by the Committee. A waiver on one occasion shall not be deemed to be a waiver of the same or any other breach on a future occasion. 
 11. Notice. Except for any notice provided pursuant to Section 8(a) of this Agreement, any notice or other communication required or
permitted hereunder shall be given in writing and shall be deemed given, effective, and received upon prepaid delivery in person or by courier or upon the earlier of delivery or the third business day after deposit in the United States mail if sent
by certified mail, with postage and fees prepaid, if the Company at its address as shown beneath its signature in this Agreement, and if to the Grantee at the address shown on the Company’s records, unless either party shall designate in
writing from time to time a different address, by notice to the other party in accordance with this Section 11. 
  

			
	CEC ENTERTAINMENT, INC.
		
	Name:	 	 
		
	Title:	 	 
		
	Address:	 	4441 West Airport Freeway
		 	Irving, Texas 75062
		 	

  

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