##### 



Exhibit 10.1
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
 by and among
 MIDWAY HOME ENTERTAINMENT INC.,
and
MIDWAY AMUSEMENT GAMES, LLC
 as Borrowers,
 and
 MIDWAY GAMES INC.,
MIDWAY GAMES WEST INC.,
MIDWAY INTERACTIVE INC.,
MIDWAY SALES COMPANY, LLC,
MIDWAY HOME STUDIOS INC.
SURREAL SOFTWARE INC.,
MIDWAY STUDIOS  AUSTIN INC.,
and
MIDWAY STUDIOS  LOS ANGELES INC.,
 as U.S. Credit Parties,
 THE LENDERS THAT ARE SIGNATORIES HERETO
 as the Lenders,
 and
 WELLS FARGO FOOTHILL, INC.
 as the Arranger and Administrative Agent, and UK Security Trustee
 Dated as of June 29, 2007




---



##### 



TABLE OF CONTENTS
 1.
    
    DEFINITIONS AND CONSTRUCTION
    
    
    21.1.
    
    Definitions
    
    
    21.2.
    
    Accounting Terms
    
    
    311.3.
    
    Code
    
    
    311.4.
    
    Construction
    
    
    311.5.
    
    Schedules and Exhibits
    
    
    322.
    
    LOAN AND TERMS OF PAYMENT
    
    
    322.1.
    
    Revolver Advances
    
    
    322.2.
    
    Term Loan
    
    
    332.3.
    
    Borrowing Procedures and Settlements
    
    
    332.4.
    
    Payments
    
    
    402.5.
    
    Overadvances; Mandatory Prepayment
    
    
    432.6.
    
    Interest Rates and Letter of Credit Fee:  Rates, Payments, and Calculations
    
    
    442.7.
    
    Cash Management
    
    
    462.8.
    
    Crediting Payments; Float Charge
    
    
    472.9.
    
    Designated Account
    
    
    472.10.
    
    Maintenance of Loan Account; Statements of Obligations
    
    
    482.11.
    
    Fees
    
    
    482.12.
    
    Letters of Credit
    
    
    492.13.
    
    LIBOR Option
    
    
    522.14.
    
    Capital Requirements
    
    
    552.15.
    
    Joint and Several Liability of Borrowers
    
    
    552.16.
    
    Request for Increase of Maximum Revolver Amount
    
    
    582.17.
    
    Effect of Amendment and Restatement
    
    
    593.
    
    CONDITIONS; TERM OF AGREEMENT
    
    
    593.1.
    
    Conditions Precedent to the Extension of Credit on the Closing Date
    
    
    593.2.
    
    Conditions Subsequent to the Initial Extension of Credit
    
    
    613.3.
    
    Conditions Precedent to all Extensions of Credit
    
    
    613.4.
    
    Term
    
    
    623.5.
    
    Effect of Termination
    
    
    623.6.
    
    Early Termination by Borrowers
    
    
    624.
    
    CREATION OF SECURITY INTEREST
    
    
    634.1.
    
    Grant of Security Interest.
    
    
    634.2.
    
    Negotiable Collateral.
    
    
    634.3.
    
    Collection of Accounts, General Intangibles, and Negotiable Collateral.
    
    
    644.4.
    
    Filing of Financing Statements; Commercial Tort Claims; Delivery of Additional Documentation Required.
    
    
    64-i-




---



##### 



4.5.
    
    Power of Attorney
    
    
    654.6.
    
    Right to Inspect
    
    
    654.7.
    
    Control Agreements
    
    
    665.
    
    REPRESENTATIONS AND WARRANTIES
    
    
    665.1.
    
    No Encumbrances
    
    
    665.2.
    
    Eligible Accounts
    
    
    665.3.
    
    Intentionally Omitted
    
    
    675.4.
    
    Equipment
    
    
    675.5.
    
    Location of Inventory and Equipment
    
    
    675.6.
    
    Inventory Records
    
    
    675.7.
    
    State of Incorporation; Location of Chief Executive Office; FEIN; Organizational ID Number; Commercial Tort Claims
    
    
    675.8.
    
    Due Organization and Qualification; Subsidiaries
    
    
    675.9.
    
    Due Authorization; No Conflict
    
    
    685.10.
    
    Litigation
    
    
    695.11.
    
    No Material Adverse Change
    
    
    695.12.
    
    Fraudulent Transfer
    
    
    695.13.
    
    Employee Benefits
    
    
    695.14.
    
    Environmental Condition
    
    
    705.15.
    
    Brokerage Fees
    
    
    705.16.
    
    Intellectual Property
    
    
    705.17.
    
    Leases
    
    
    705.18.
    
    DDAs
    
    
    705.19.
    
    Complete Disclosure
    
    
    715.20.
    
    Indebtedness
    
    
    716.
    
    AFFIRMATIVE COVENANTS
    
    
    716.1.
    
    Accounting System
    
    
    716.2.
    
    Collateral Reporting
    
    
    716.3.
    
    Financial Statements, Reports, Certificates
    
    
    736.4.
    
    Intentionally Omitted
    
    
    766.5.
    
    Returns
    
    
    766.6.
    
    Maintenance of Properties
    
    
    776.7.
    
    Taxes
    
    
    776.8.
    
    Insurance
    
    
    776.9.
    
    Location of Inventory and Equipment
    
    
    786.10.
    
    Compliance with Laws
    
    
    786.11.
    
    Leases
    
    
    786.12.
    
    Existence
    
    
    786.13.
    
    Environmental
    
    
    796.14.
    
    Disclosure Updates
    
    
    796.15.
    
    Formation of Subsidiaries
    
    
    796.16.
    
    [Intentionally Omitted]
    
    
    806.17.
    
    Registration of Intellectual Property
    
    
    80-ii-




---



##### 



6.18.
    
    Mortal Kombat Intellectual Property
    
    
    806.19.
    
    Canadian Operations
    
    
    807.
    
    NEGATIVE COVENANTS
    
    
    807.1.
    
    Indebtedness
    
    
    817.2.
    
    Liens
    
    
    827.3.
    
    Restrictions on Fundamental Changes
    
    
    827.4.
    
    Disposal of Assets
    
    
    827.5.
    
    Change Name
    
    
    827.6.
    
    Nature of Business
    
    
    827.7.
    
    Prepayments and Amendments
    
    
    837.8.
    
    Change of Control
    
    
    837.9.
    
    Consignments
    
    
    837.10.
    
    Distributions
    
    
    837.11.
    
    Accounting Methods
    
    
    837.12.
    
    Investments
    
    
    847.13.
    
    Transactions with Affiliates
    
    
    847.14.
    
    Suspension
    
    
    847.15.
    
    Compensation
    
    
    847.16.
    
    Use of Proceeds
    
    
    857.17.
    
    Inventory and Equipment with Bailees
    
    
    857.18.
    
    Financial Covenants
    
    
    857.19.
    
    Subsidiaries
    
    
    857.20.
    
    Copyrights
    
    
    857.21.
    
    Excluded Inventory
    
    
    858.
    
    EVENTS OF DEFAULT
    
    
    869.
    
    THE LENDER GROUPS RIGHTS AND REMEDIES
    
    
    889.1.
    
    Rights and Remedies
    
    
    889.2.
    
    Remedies Cumulative
    
    
    9010.
    
    TAXES AND EXPENSES
    
    
    9011.
    
    WAIVERS; INDEMNIFICATION
    
    
    9111.1.
    
    Demand; Protest; etc
    
    
    9111.2.
    
    The Lender Groups Liability for Grantor Collateral
    
    
    9111.3.
    
    Indemnification
    
    
    9112.
    
    NOTICES
    
    
    9213.
    
    CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER
    
    
    9314.
    
    ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS
    
    
    9414.1.
    
    Assignments and Participations
    
    
    9414.2.
    
    Successors
    
    
    97-iii-




---



##### 



15.
    
    AMENDMENTS; WAIVERS
    
    
    9715.1.
    
    Amendments and Waivers
    
    
    9715.2.
    
    Replacement of Holdout Lender
    
    
    9815.3.
    
    No Waivers; Cumulative Remedies
    
    
    9916.
    
    AGENT; THE LENDER GROUP
    
    
    9916.1.
    
    Appointment and Authorization of Agent
    
    
    9916.2.
    
    Delegation of Duties
    
    
    10016.3.
    
    Liability of Agent
    
    
    10016.4.
    
    Reliance by Agent
    
    
    10016.5.
    
    Notice of Default or Event of Default
    
    
    10116.6.
    
    Credit Decision
    
    
    10116.7.
    
    Costs and Expenses; Indemnification
    
    
    10216.8.
    
    Agent in Individual Capacity
    
    
    10316.9.
    
    Successor Agent
    
    
    10316.10.
    
    Lender in Individual Capacity
    
    
    10316.11.
    
    Withholding Taxes
    
    
    10416.12.
    
    Collateral Matters
    
    
    10616.13.
    
    Restrictions on Actions by Lenders; Sharing of Payments
    
    
    10716.14.
    
    Agency for Perfection
    
    
    10716.15.
    
    Payments by Agent to the Lenders
    
    
    10716.16.
    
    Concerning the Collateral and Related Loan Documents
    
    
    10816.17.
    
    Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
    
    
    10816.18.
    
    Several Obligations; No Liability
    
    
    10916.19.
    
    Legal Representation of Agent
    
    
    10916.20.
    
    Agent as UK Security Trustee
    
    
    10917.
    
    GENERAL PROVISIONS.
    
    
    11017.1.
    
    Effectiveness.
    
    
    11017.2.
    
    Section Headings.
    
    
    11017.3.
    
    Interpretation.
    
    
    11117.4.
    
    Severability of Provisions
    
    
    11117.5.
    
    Amendments in Writing
    
    
    11117.6.
    
    Counterparts; Telefacsimile Execution
    
    
    11117.7.
    
    Revival and Reinstatement of Obligations
    
    
    11117.8.
    
    Confidentiality
    
    
    11217.9.
    
    Integration
    
    
    11217.10.
    
    Midway as Agent for Borrowers
    
    
    11317.11.
    
    USA PATRIOT Act
    
    
    113-iv-




---



##### 



EXHIBITS AND SCHEDULES
 Exhibit A-1
    
    Form of Assignment and AcceptanceExhibit C-1
    
    Form of Compliance CertificateExhibit L-1
    
    Form of LIBOR NoticeSchedule A-1
    
    Agents AccountsSchedule C-1
    
    CommitmentsSchedule D-1
    
    Designated AccountsSchedule I-1
    
    Investment AccountSchedule P-1
    
    Permitted LiensSchedule R-1
    
    Real Property CollateralSchedule 2.7(a)
    
    Cash Management BanksSchedule 5.4
    
    List of VehiclesSchedule 5.5
    
    Locations of Inventory and EquipmentSchedule 5.7(a)
    
    States of OrganizationSchedule 5.7(b)
    
    Chief Executive OfficeSchedule 5.7(c)
    
    FEINSSchedule 5.7(d)
    
    Commercial Tort ClaimsSchedule 5.8(b)
    
    Capitalization of CompaniesSchedule 5.8(c)
    
    Capitalization of Parents SubsidiariesSchedule 5.8(d)
    
    Subscriptions, Options, Warrants or CallsSchedule 5.10
    
    LitigationSchedule 5.14
    
    Environmental MattersSchedule 5.16
    
    Intellectual PropertySchedule 5.18
    
    Deposit Accounts and Securities AccountsSchedule 5.20
    
    Permitted IndebtednessSchedule 7.13
    
    Transactions with Affiliates




---



##### 



AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
 THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT Agreement Lender Lenders WELLS FARGO FOOTHILL, INC. Agent MIDWAY HOME ENTERTAINMENT INC. Midway MIDWAY
AMUSEMENT GAMES, LLC Borrower Borrowers MIDWAY GAMES INC. Parent MIDWAY GAMES WEST INC. MGW MIDWAY
INTERACTIVE INC. MI MIDWAY SALES COMPANY, LLC MSC MIDWAY HOME STUDIOS INC MHS SURREAL SOFTWARE INC Surreal MIDWAY
STUDIOS  AUSTIN INC MIDWAY STUDIOS  LOS ANGELES INC U.S. Credit Party U.S. Credit Parties
 RECITALS:
 Original Lenders Original Loan Agreement Original Term Loan Original Revolving Loans
   -1-




---



##### 



1. DEFINITIONS AND CONSTRUCTION.
 1.1. Definitions.
  Account
 Account Debtor
 ACH Transactions
 Additional Documents Section 4.4(c)
 Administrative Borrower Section 17.10
 Advances Section 2.1(a)
 Affiliate provided however Section 7.13
 -2-




---



##### 



Agent
 Agent Advances Section 2.3(e)(i)
 Agent-Related Persons
 Agents Account Schedule
A-1
 Agents Liens
 Agreement
 Applicable Collection Rule Period
 Applicable Margin
 Base Rate Loans
    
    1.50%LIBOR Rate Loans
    
    2.75%
 Applicable Prepayment Premium times times
 Assignee Section 14.1(a)
 Assignment and Acceptance Exhibit A-1
 Australia Companies
 Australia Operating Company
 Australia Holding Company
 -3-




---



##### 



Australia Subsidiary
 Australian Insolvency Laws
 Authorized Person
 Availability
 Bank Product
 Bank Product Agreements
 Bank Product Obligations
 Bank Product Provider
 Bank Product Reserve
 Bankruptcy Code
 -4-




---



##### 



Base LIBOR Rate
 Base Rate
 Base Rate Loan
 Base Rate Margin
 Benefit Plan Section 3(35) Section 3(5)
 Board of Directors
 Books
 Borrower Borrowers
 Borrowing
 -5-




---



##### 



Borrowing Base
 the lesser of
 less
 minus
 Section 2.1(b)
 Business Day
 Canadian Company
 Canadian Guaranty Section 6.19
 Canadian Security Agreement Section 6.19
 Capital Expenditures
 Capital Lease
 -6-




---



##### 



Capitalized Lease Obligation
 Cash Equivalents
 Cash Management Account Section 2.7(a)
 Cash Management Agreements
 Cash Management Bank Section 2.7(a)
 Change of Control Sections 13(d) and 14(d)
 Closing Date Section 2.2 Section 3.1
 Closing Date Business Plan
 -7-




---



##### 



Code
 Collateral
 Collateral Access Agreement
 Collections all
 Commercial Tort Claim Assignments Section
4.4(b)
 Commitment Schedule C-1 Section
14.1
 Company
 Compliance Certificate Exhibit
C-1
 Continuing Director
 Control Agreement
 -8-




---



##### 



Copyright Mortgage
 Daily Balance
 Default
 Defaulting Lender
 Defaulting Lender Rate
 Deposit Account
 Designated Account Schedule D-1
 Designated Account Bank Schedule D-1
 Development Kits
 Dilution
 Dilution Reserve
 -9-




---



##### 



Disbursement Letter
 Dollars $
 EBITDA
 Eligible Accounts provided however
    -10-




---



##### 



provided however
 -11-




---



##### 



Eligible Transferee
 -12-




---



##### 



Environmental Actions
 Environmental Law et seq. et seq.; et seq. et seq. et seq. et seq. et seq. et seq.
 Environmental Liabilities and Costs
 Environmental Lien
 Equipment
 -13-




---



##### 



ERISA
 ERISA Affiliate Section 414(b) Section 414(c) Section 302 Section
412 Section 414(m) Section 302 Section 412 Section 414(o)
 Event of Default Section 8
 Excess Availability minus
 Excess Cash Flow minus
 Exchange Act
 Excluded Inventory
 Existing Lender
 Fee Letter
 -14-




---



##### 



FEIN
 Foreign Companies
 French Company société par actions simplifiée
 French Insolvency Laws
 Funding Date
 Funding Losses Section 2.13(b)(ii)
 GAAP
 General Intangibles
 German Company Amtsgericht
 German Insolvency Laws Insolvenzordnung
 Governing Documents
 Governmental Authority
 Grantor
 -15-




---



##### 



Grantor Collateral
            Guaranty
 Hazardous Materials
 -16-




---



##### 



Hedge Agreement
 Holdout Lender Section 15.2(a)
 Inactive Company .
 Increase Notice Section 2.16
 Indebtedness
 Indemnified Liabilities Section 11.3
 Indemnified Person Section 11.3
 Insolvency Proceeding
 Intercompany Subordination Agreement
 Interest Period provided however
 -17-




---



##### 



Inventory
 Investment bona fide
 Investment Account Schedule I-1
 Investment Property
 IRC
 Issuing Lender Section
2.12
 Japan Company
 Japan Insolvency Laws
 -18-




---



##### 



Junior Notes
 L/C Section 2.12(a)
 L/C Disbursement
 L/C Undertaking Section 2.12(a)
 Lender Lenders Section 14.1
 Lender Group
 Lender Group Expenses
 -19-




---



##### 



Lender-Related Person
 Letter of Credit
 Letter of Credit Usage
 LIBOR Deadline Section 2.13(b)(i)
 LIBOR Notice Exhibit L-1.
 LIBOR Rate dividing by minus
 LIBOR Rate Loan
 LIBOR Rate Margin
 Lien
 -20-




---



##### 



Liquidity
 Loan Account Section 2.10
 Loan Documents
 Material Adverse Change
 Material Videogame Section 8.9
 Maturity Date Section 3.4
 Maximum Revolver Amount plus minus
 Modified Excess Availability
 Mortal Kombat Franchise
 -21-




---



##### 



Mortgages
 Negotiable Collateral
 Obligations
 Officers Certificate
 Original Advances
 Original Loan Agreement
 Original Term Loan
 Originating Lender Section 14.1(e)
 Outstanding Original Advances Balance Section
2.1(a)
 -22-




---



##### 



Outstanding Original Term Loan Balance Section
2.2
 Overadvance Section 2.5
 Paid in Full
 Parent
 Participant Section 14.1(e)
 Patent Mortgage
 PATRIOT Act Section 7.11
 Permitted Acquisition Target Section 7.18
 -23-




---



##### 



Permitted Discretion
 Permitted Dispositions
 Permitted Holders
 Permitted Investments
 -24-




---



##### 



Permitted Liens Schedule P-1
 Permitted Protest
 -25-




---



##### 



Permitted Purchase Money Indebtedness
 Person
 Pitbull
 Platform License
 PPSA
 Projections
 Pro Rata Share
  -26-




---



##### 



Section 16.7 provided however
 Purchase Money Indebtedness
 Qualified Cash
 -27-




---



##### 



Real Property
 Real Property Collateral Schedule R-1
 Record
 Redemption Date
 Remedial Action
 Replacement Lender Section 15.2(a)
 Report Section 16.17
 Requested Revolver Increase Section 2.16
 Required Availability plus
 Required Lenders 2 3
 Reserve Percentage
 Revolver Commitment Schedule C-1 Section 14.1
 -28-




---



##### 



Revolver Usage plus
 Risk Participation Liability
 Sale Leaseback Transaction
 SEC
 Securities Account
 Settlement Section 2.3(f)(i)
 Settlement Date Section 2.3(f)(i)
 Solvent
 Stock
 Stock Pledge Agreement
 Subsidiary
 -29-




---



##### 



Swing Lender Section 2.3(d)
 Swing Loan Section 2.3(d)(i)
 Taxes Section 16.11
 Term Loan Section 2.2
 Term Loan Amount
 Term Loan Commitment Schedule C-1 Section 14.1
 Total Commitment Schedule C-1 Section 14.1
 Trademark Security Agreement
 TTM EBITDA
 UK Company
 UK Insolvency Laws
 UK Stock Pledge Agreement
 -30-




---



##### 



UK Security Trustee
 Underlying Issuer
 Underlying Letter of Credit
 United States
 U.S. Credit Party Guaranty
 Voidable Transfer Section 17.7
 Wells Fargo
  1.2. Accounting Terms.
  1.3. Code.
  1.4. Construction.
  -31-




---



##### 



1.5. Schedules and Exhibits.
  2. LOAN AND TERMS OF PAYMENT.
 2.1. Revolver Advances.
 Outstanding Original Advances Balance Advances the lesser of less less
 Section 2.1
 -32-




---



##### 



Schedule
P-1 ad valorem
  Section 2.1
 2.2. Term Loan.
 Outstanding
Original Term Loan Balance Term Loan
 2.3. Borrowing Procedures and Settlements.
 (a) Procedure for Borrowing
 -33-




---



##### 



provided however
 (b) Agents Election Section 2.3(a) Section
2.3(c) Section 2.3(d) provided however Section 2.3(d) Section 2.3(c)
 (c) Making of Loans
 Section
2.3(c) Section 2.3(b) Section 2.3(a) provided however Section 2.3(i) Section 3
  -34-




---



##### 



-35-




---



##### 



provided however
 (d) Making of Swing Loans
 Section 2.3(d) Section 2.3(b) Section 2.3(d) Swing Loan Swing Loans Section 2.3(i) Section 3 Section 3
 -36-




---



##### 



(e) Agent Advances
 Section 3 Section 10 Section
2.3(e) Agent Advances
  (f) Settlement
 Settlement Settlement Date Section 2.3(c)(iii)
 -37-




---



##### 



-38-




---



##### 



(g) Notation
 (h) Lenders Failure to Perform
 (i) Optional Overadvances Section 2.3(i) Section 2.6(c)
  -39-




---



##### 



Section 2.3(f) Section 2.3(i)
 2.4. Payments.
 (a) Payments by Borrowers
   -40-




---



##### 



(b) Apportionment and Application
 Section 2.2 Section
2.8 Section 2.8
 first
 second
 third
 fourth
 fifth
 sixth
 seventh
 eighth
 -41-




---



##### 



ninth
 tenth
 eleventh
 twelfth
 thirteenth
 fourteenth
 fifteenth
 Section 2.3(f)
 Section 2.4(b)
 -42-




---



##### 



Section 2.4 Section 2.4
 2.5. Overadvances; Mandatory Prepayment.
 Section 2.1 Section
2.12 Section
2.1 Section 2.12 Overadvance Section 2.4(b)
  Section 6.3
 -43-




---



##### 



Section 6.3 Section 6.3 first second Section 2.4(b)(i) Section 2.5(c)
 2.6. Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations.
 (a) Interest Rates
  (b) Letter of Credit Fee Section 2.12(e)
 (c) Default Rate
  -44-




---



##### 



(d) Payment Section 2.12(a) Section
2.13(a) Section 2.12(e) Section 2.11
 (e) Computation
 (f) Intent to Limit Charges to Maximum Lawful Rate provided however ipso facto,
 (g) Interest under Original Loan Agreement
 -45-




---



##### 



2.7. Cash Management.
 Schedule 2.7(a) Cash Management Bank
  Schedule 2.7(a) provided however
  -46-




---



##### 



2.8. Crediting Payments; Float Charge.
 Section 2.6 Section 2.8
 2.9. Designated Account.
 Section 2.6(d)
 -47-




---



##### 



2.10. Maintenance of Loan Account; Statements of Obligations.
 Loan
Account Section 2.8
 2.11. Fees.
  (a) Unused Line Fee
 (b) Fee Letter Fees
 (c) Audit, Appraisal, and Valuation Charges
 -48-




---



##### 



(d) Fees, Charges and Expenses under Original Loan Agreement
 2.12. Letters of Credit.
 L/C L/C Undertaking
 less
  less
  -49-




---



##### 



Section 2.6 Section 2.12(c)
 Section
2.12(a) Section 2.12(b) Section 3
 -50-




---



##### 



provided however provided however
    -51-




---



##### 



(g) Letters of Credit Outstanding under Original Loan Agreement
 2.13. LIBOR Option.
 (a) Interest and Interest Payment Dates LIBOR Option
 -52-




---



##### 



(b) LIBOR Election
 LIBOR Deadline
 Funding Losses minus Section 2.13
  -53-




---



##### 



(c) Prepayments provided however Section 2.4(b)
 (d) Special Provisions Applicable to LIBOR Rate
   -54-




---



##### 



(e) No Requirement of Matched Funding
 2.14. Capital Requirements.
  2.15. Joint and Several Liability of Borrowers.
  Section 2.15
 -55-




---



##### 



Section 2.15
 Section 2.15 Section 2.15 Section 2.15 Section 2.15
 -56-




---



##### 



Section 2.15 Section 2.15 Section 2.15
   -57-




---



##### 



Section 2.4(b)
  2.16. Request for Increase of Maximum Revolver Amount.
 Increase
Notice Requested Revolver Increase
 -58-




---



##### 



2.17. Effect of Amendment and Restatement.
  3. CONDITIONS; TERM OF AGREEMENT.
 3.1. Conditions Precedent to the Extension of Credit on the Closing Date.
 Section 2.2
            -59-




---



##### 



Section 6.8
     -60-




---



##### 



3.2. Conditions Subsequent to the Initial Extension of Credit.
    3.3. Conditions Precedent to all Extensions of Credit.
    -61-




---



##### 



3.4. Term.
 Maturity Date
 3.5. Effect of Termination.
  3.6. Early Termination by Borrowers.
  -62-




---



##### 



4. CREATION OF SECURITY INTEREST.
 4.1. Grant of Security Interest.
  4.2. Negotiable Collateral.
  -63-




---



##### 



4.3. Collection of Accounts, General Intangibles, and Negotiable Collateral.
  4.4. Filing of Financing Statements; Commercial Tort Claims; Delivery of Additional
Documentation Required.
  Commercial Tort Claim Assignment
 Additional
Documents
 -64-




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##### 



4.5. Power of Attorney.
 Section 4.4 Section 4.4
 4.6. Right to Inspect.
  -65-




---



##### 



4.7. Control Agreements.
 provided however Sections 9-104, 9-105 9-106, and 9-107
 5. REPRESENTATIONS AND WARRANTIES.
  5.1. No Encumbrances.
  5.2. Eligible Accounts.
  -66-




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##### 



5.3. Intentionally Omitted.
 5.4. Equipment.
 Schedule 5.4
 5.5. Location of Inventory and Equipment.
 Schedule 5.5 Schedule 5.5 Section 6.9
 5.6. Inventory Records.
  5.7. State of Incorporation; Location of Chief Executive Office; FEIN;
Organizational ID Number; Commercial Tort Claims.
 Schedule 5.7(a)
 Schedule 5.7(b) Section 6.9
 Schedule 5.7(c)
 Schedule 5.7(d)
 5.8. Due Organization and Qualification; Subsidiaries.
  Schedule 5.8(b) Schedule 5.8(b)
 -67-




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##### 



Schedule 5.8(b)
 Schedule 5.8(c)
 Schedule 5.8(d)
 5.9. Due Authorization; No Conflict.
    -68-




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##### 



5.10. Litigation.
 Schedule 5.10
 5.11. No Material Adverse Change.
  5.12. Fraudulent Transfer.
   5.13. Employee Benefits.
  -69-




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##### 



5.14. Environmental Condition.
 Schedule 5.14
 5.15. Brokerage Fees.
  5.16. Intellectual Property.
 Schedule 5.16 Schedule
5.16 Schedule 5.16
 5.17. Leases.
  5.18. DDAs.
 Schedule 5.18
 -70-




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##### 



5.19. Complete Disclosure.
  5.20. Indebtedness.
 Schedule 5.20
 6. AFFIRMATIVE COVENANTS.
  6.1. Accounting System.
  6.2. Collateral Reporting.
  -71-




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##### 



th
 (a)
    
    a sales journal, collection journal, and credit register
since the last such schedule and a calculation of the
Borrowing Base as of such date to be calculated by WFF
utilizing WFFs electronic reporting system with results
forwarded to Administrative Borrower upon completion,(b)
    
    notice of all claims, offsets, or disputes asserted by
Account Debtors with respect to Midways Accounts,(c)
    
    a detailed report regarding Companies cash and Cash
Equivalents including an indication of which amounts
constitute Qualified Cash,(d)
    
    sell through reports for the week most recently ended,
and(e)
    
    flash sales reports for the week most recently ended.
   - 72 -




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th
 (f)
    
    a detailed calculation of the Borrowing Base (including
detail regarding those Accounts of Midway that are not
Eligible Accounts) to be calculated by WFF utilizing WFFs
electronic reporting system with results forwarded to
Administrative Borrower upon completion,(g)
    
    a detailed aging, by total, provided in an electronic
format, of the Accounts of Midway, together with a
reconciliation to the detailed calculation of the Borrowing
Base previously provided to Agent,(h)
    
    a detailed listing, by vendor, provided in an electronic
format, of Companies accounts payable and any consolidated
book overdraft,(i)
    
    certificate of Midway of all amounts due and owing under
the Platform Licenses (together with , at the request of
Agent, proof of such payment),(j)
    
    a calculation of Dilution or data sufficient (in Agents
discretion) for Agent to calculate Dilution for the month most
recently ended to be calculated by WFF utilizing WFFs
electronic reporting system with results forwarded to
Administrative Borrower upon completion,(k)
    
    a milestone report for each videogame title, and(l)
    
    a report of the average value of Excluded Inventory of
Companies (as calculated for the most recent 6 month period)
and the average value of Inventory of Companies (as calculated
for the most recently ended 6 month period).
     
 (n)
    
    a detailed list of each Companys customers, and(o)
    
    a report regarding each Companys accrued, but unpaid, ad
valoremtaxes.
     
 (p)
    
    copies of invoices in connection with Midways Accounts,
credit memos, remittance advices, deposit slips, shipping and
delivery documents in connection with Midways Accounts and,
for Inventory and Equipment acquired by Companies, purchase
orders and invoices, and(q)
    
    such other reports as to the Collateral or the financial
condition of Companies, as Agent may request.
    6.3. Financial Statements, Reports, Certificates.
  - 73 -




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##### 



Section
7.18 Section 7.18
    - 74 -




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##### 



Section 7.18
      Section 6.3(c)
     - 75 -




---



##### 



6.4. Intentionally Omitted.
 6.5. Returns.
  - 76 -




---



##### 



6.6. Maintenance of Properties.
  6.7. Taxes.
  6.8. Insurance.
   - 77 -




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##### 



Section 6.8
 6.9. Location of Inventory and Equipment.
 Schedule 5.5 Schedule 5.5 Schedule 5.7(b) provided however Schedule 5.5 Schedule
5.7
 6.10. Compliance with Laws.
  6.11. Leases.
  6.12. Existence.
  - 78 -




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##### 



6.13. Environmental.
  6.14. Disclosure Updates.
  6.15. Formation of Subsidiaries.
 Schedules 5.8(b) (c)
 - 79 -




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##### 



Section 6.15 Section 6.15
 6.16. Intentionally Omitted
 6.17. Registration of Intellectual Property.
  6.18. Mortal Kombat Intellectual Property.
 Schedule 5.16
 6.19. Canadian Operations
 Section
6.19
 7. NEGATIVE COVENANTS.
  - 80 -




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##### 



7.1. Indebtedness.
   Schedule 5.20
  Section 7.1
      - 81 -




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##### 



7.2. Liens.
 Section 7.1(d)
 7.3. Restrictions on Fundamental Changes.
     7.4. Disposal of Assets.
  7.5. Change Name.
 provided however
 7.6. Nature of Business.
  - 82 -




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##### 



7.7. Prepayments and Amendments.
 Section 7.1(d)
  Section 7.1(b) (c)
 7.8. Change of Control.
  7.9. Consignments.
  7.10. Distributions.
  7.11. Accounting Methods.
  - 83 -




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##### 



7.12. Investments.
 provided however
 7.13. Transactions with Affiliates.
 Schedule 7.13 Section 6.19
 7.14. Suspension.
  7.15. Compensation.
  - 84 -




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##### 



7.16. Use of Proceeds.
  7.17. Inventory and Equipment with Bailees.
 Schedule 5.5
 7.18. Financial Covenants.
   7.19. Subsidiaries.
  7.20. Copyrights.
  7.21. Excluded Inventory
  - 85 -




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##### 



8. EVENTS OF DEFAULT.
 Event of Default
 8.1
 8.2
 Sections 2.7 3.2 4.2 4.4 4.6 6.8 6.12 6.15 6.17 6.18 6.19 7.1 7.21
 Sections 4.5 6.2 6.3 6.5 6.6 6.7 6.9 6.10 6.11 6.14
 Section 8 Section 8
 provided that
 8.3
 8.4
 8.5
 - 86 -




---



##### 



8.6
 8.7
 8.8
 8.9
 8.10
 8.11
 8.12
 - 87 -




---



##### 



8.13
 8.14
 8.15
 9. THE LENDER GROUPS RIGHTS AND REMEDIES.
 9.1. Rights and Remedies.
       - 88 -




---



##### 



- 89 -




---



##### 



Section 12
   provided however Section 8.4 Section 8.5
 9.2. Remedies Cumulative.
  10. TAXES AND EXPENSES.
  - 90 -




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##### 



Section 6.8 Section 6.8
 11. WAIVERS; INDEMNIFICATION.
 11.1. Demand; Protest; etc.
  11.2. The Lender Groups Liability for Grantor Collateral.
 Section 9-603 Section 9-602
 11.3. Indemnification.
 Indemnified Person
 - 91 -




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##### 



Indemnified Liabilities Section 11.3
 12. NOTICES.
  If to Borrower:
    
    MIDWAY HOME ENTERTAINMENT INC.c/o Midway Games Inc.2704 West Roscoe StreetChicago, Illinois 60618Attn: Chief Financial Officer and General CounselFax No. 773-961-2299with copies to:
    
    BLANK ROME LLPThe Chrysler Building405 Lexington AvenueNew York, New York 10174Attn: Pamela E. Flaherty, Esq.Fax No. 917-332-3733
 - 92 -




---



##### 



If to Agent or UK
    
    WELLS FARGO FOOTHILL, INC.Security Trustee:
    
    2450 Colorado AvenueSuite 3000 WestSanta Monica, California 90404Attn: Technology Finance ManagerFax No. 310-453-7443WELLS FARGO FOOTHILL, INC.One Boston Place, 18th FloorBoston, Massachusetts 02108Attn: Technology Finance ManagerFax No. 617-523-1697with copies to:
    
    GOLDBERG, KOHN, BELL, BLACK,ROSENBLOOM & MORITZ, LTD.55 East Monroe Street, Suite 3300Chicago, Illinois 60603Attn: Gary Zussman, Esq.Fax No. 312-332-2196
 Section 12 Sections 6.2 and 6.3(a) through (e)
 13. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.
 (a) THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO
THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION,
INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND
THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO
SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS.
 - 93 -




---



##### 



(b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL
COURTS LOCATED IN THE COUNTY OF COOK, STATE OF ILLINOIS, PROVIDED , HOWEVER , THAT
ANY SUIT SEEKING ENFORCEMENT AGAINST ANY GRANTOR COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
AGENTS OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE
SUCH GRANTOR COLLATERAL OR OTHER PROPERTY MAY BE FOUND. COMPANIES AND THE LENDER GROUP WAIVE, TO
THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS
BROUGHT IN ACCORDANCE WITH THIS SECTION 13(b) .
 COMPANIES AND THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE
TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS,
AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. COMPANIES AND THE LENDER GROUP REPRESENT THAT EACH
HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED
AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
 14. ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.
 14.1. Assignments and Participations.
 Assignee provided however
 - 94 -




---



##### 



Section 11.3 provided however Article 16 Section 17.8
  pro tanto
 - 95 -




---



##### 



Participant Originating Lender provided however
 Section 17.8
 - 96 -




---



##### 



14.2. Successors.
 provided however ab initio Section 14.1 Section 14.1
 15. AMENDMENTS; WAIVERS.
 15.1. Amendments and Waivers.
 provided however
     - 97 -




---



##### 



Section 16.12
    Section 2.1(b)
 Section 16
 provided further however
 15.2. Replacement of Holdout Lender.
  Section 14.1
 - 98 -




---



##### 



15.3. No Waivers; Cumulative Remedies.
  16. AGENT; THE LENDER GROUP.
 16.1. Appointment and Authorization of Agent.
 Section 16 Section 16 Section 16.11(d)
 - 99 -




---



##### 



16.2. Delegation of Duties.
  16.3. Liability of Agent.
  16.4. Reliance by Agent.
  - 100 -




---



##### 



16.5. Notice of Default or Event of Default.
 Section
16.4 Section 9 provided however
 16.6. Credit Decision.
  - 101 -




---



##### 



16.7. Costs and Expenses; Indemnification.
 provided however
 - 102 -




---



##### 



16.8. Agent in Individual Capacity.
  16.9. Successor Agent.
 Section 16
 16.10. Lender in Individual Capacity.
  - 103 -




---



##### 



16.11. Withholding Taxes.
 Sections 1441 or 1442
 Section 881(c)(3)(A) Section 871(h)(3)(B) Section 864(d)(4)
     - 104 -




---



##### 



Section 16.11(e)
 - 105 -




---



##### 



provided however Section 16.11
 16.12. Collateral Matters.
 Section 7.4 Section 16.12 provided however
  - 106 -




---



##### 



16.13. Restrictions on Actions by Lenders; Sharing of Payments.
  provided however
 16.14. Agency for Perfection.
  16.15. Payments by Agent to the Lenders.
  - 107 -




---



##### 



16.16. Concerning the Collateral and Related Loan Documents.
  16.17.
    
    Field Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other
Reports and Information.
  Report Reports
   Section 17.8
   - 108 -




---



##### 



16.18. Several Obligations; No Liability.
 Section 16.7
 16.19. Legal Representation of Agent.
  16.20. Agent as UK Security Trustee
  - 109 -




---



##### 



Section 16
    17. GENERAL PROVISIONS.
 17.1. Effectiveness.
  17.2. Section Headings.
  - 110 -




---



##### 



17.3. Interpretation.
  17.4. Severability of Provisions.
  17.5. Amendments in Writing.
 Section 15.1
 17.6. Counterparts; Telefacsimile Execution.
 mutatis mutandis
 17.7. Revival and Reinstatement of Obligations.
 Voidable Transfer
 - 111 -




---



##### 



17.8. Confidentiality.
 Section 17.8 Section 17.8 Section 1.6011-4(b)(3) Section 6011
 17.9. Integration.
  - 112 -




---



##### 



17.10. Midway as Agent for Borrowers.
 Administrative Borrower Section 17.9
 17.11. USA PATRIOT Act.
 PATRIOT Act
  - 113 -




---



##### 



IN WITNESS WHEREOF,
 MIDWAY HOME ENTERTAINMENT INC.
 MIDWAY AMUSEMENT GAMES, LLC
 MIDWAY GAMES INC.
 MIDWAY GAMES WEST INC.
 MIDWAY INTERACTIVE INC.
 MIDWAY SALES COMPANY, LLC
 MIDWAY HOME STUDIOS INC
 SURREAL SOFTWARE INC
 MIDWAY STUDIOS  AUSTIN INC.,
 MIDWAY STUDIOS  LOS ANGELES INC
 Each By
    
    /s/ Thomas E. PowellTitle
    
    Executive Vice President  Finance, Treasurer and Chief Financial Officer




---



##### 



WELLS FARGO FOOTHILL, INC.
 By
    
    /s/ Tiffany OrmonTitle
    
    Vice President