UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report:
(Date of earliest event reported)
March 3, 2006
----------------------------
CEC ENTERTAINMENT, INC.
(Exact name of registrant as specified in charter)
Kansas 0-15782 48-0905805
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation or organization) Identification No.)
4441 West Airport Freeway
Irving, Texas 75062
(Address of principal executive offices
and zip code)
(972) 258-8507
(Registrant's telephone
number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425).
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12).
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)).
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)).
Item 1.01: Entry into a Material Definitive Agreement
On February 27, 2006, the Compensation Committee of the Board of Directors of
CEC Entertainment, Inc. (the "Company") amended the Company's Incentive Bonus
Plan (the "Bonus Plan"), in which all Company employees other than certain field
operations personnel are eligible to participate.
The amendment to the Bonus Plan includes the addition of a tenure-based element
applicable to those employees involved in store operations at the General
Manager and District Technician level and all other eligible Company employees
who are employed below a Manager position level. To be entitled to receive a
tenure-based bonus, eligible employees must be employed a certain minimum number
of years by the Company, ranging from three to five years. After satisfying the
minimum years of service requirement, tenure is thereafter rewarded at 5 year
intervals up to a maximum of 20 years. The dollar amount of annual tenure-based
bonuses range from a minimum of $750 up to a maximum of $3,000.
The amendment to the Bonus Plan also includes a change in one of the criteria
used to determine the performance-based element of the Bonus Plan, which is
still applicable to eligible employees of the Company in any position ranging
from Manager level up to the Chief Executive Officer. Currently, the performance
criteria is based upon comparable store sales and net income results for the
applicable fiscal year of the Bonus Plan. The amendment to the Bonus Plan
changes the net income component to an earnings per share component. Other terms
of the Bonus Plan remain the same. The amendments to the Bonus Plan will be
submitted to the Company's stockholders for approval.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CEC ENTERTAINMENT, INC.
Date: March 3, 2006 By: /s/ Christopher D. Morris
-------------------------------------------------
Christopher D. Morris
Executive Vice President, Chief Financial Officer