Document:

EX-10.1

Exhibit
10.1

AGREEMENT

     AGREEMENT
(this “Agreement”) dated as of August 19, 2009  by and among the signatories hereto.

     WHEREAS, the parties hereto are Midway Games Inc. (“MGI”), its wholly owned subsidiary Midway
Home Entertainment Inc., a Delaware corporation (“MHE”), and the following wholly owned
subsidiaries of MHE: Midway Games Limited, an English limited liability private company,
registered with company number 03801663 (“MGL”); Midway Games SAS, a French société par actions
simplifiée, registered with company no. 484 780 333 R.C.S. Paris (“MGS”); and Midway Games GmbH, a
limited liability company registered with the commercial registry of the Local Court (Amtsgericht)
of Munich under reg. no. 155321 (“MGG”); and

     WHEREAS, MGL is the sole stockholder of Midway Studios-Newcastle Limited (“Newcastle”); and

     WHEREAS, on February 12, 2009 (“Petition Date”), MGI and MGI’s U.S. subsidiaries
(collectively, the “Debtors”) concurrently commenced chapter 11 cases as debtors-in-possession
under Title 11 of the United States Code, 11 U.S.C. §101 et seq. (the “Bankruptcy Code”), by filing
their voluntary petitions for relief under chapter 11 of the Bankruptcy Code, before the United
States Bankruptcy Court for the District of Delaware (“Bankruptcy Court”) and thereafter, the
Bankruptcy Court entered its order that such cases be administered jointly in the presently pending
chapter 11 case no. 10565-KG (“Bankruptcy Case”); and

     WHEREAS, MHE is about to sell (a) all of the capital stock of both MGL and MGS to Spiess Media
Holding UG (haftungsbeschränkt / limited liability) and (b) all of the capital stock of MGG to F+F
Publishing GmbH (“F+F”) pursuant to an agreement with F+F (“the F+F Agreement”), but prior to such
sales, the parties hereto wish to resolve some of the intercompany accounts between and among them
as of the closing date of such sales (such sales are intended to close on the same date and the
closing and such date are referred to as the “Closing” and the “Closing Date”, respectively) on the
terms set forth in this Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, intending to be legally bound, the parties hereto agree as follows:

     1. Definitions. When used in this Agreement, the following terms shall have the
meanings assigned to them in this Section 1:

     “MGG/MHE Balance” means the current intercompany balance from MGG to MHE.

     “MGG/MGL Initial Balance” means the current intercompany balance from MGG to
MGL prior to the assignment and payment referenced in Section 2(b) below.

 

 

     “MGG/MGL Residual Balance” means the intercompany balance from MGG to MGL after
the assignment and payment referenced in Section 2(b) below.

     “MGI Loan” means the secured loan obligation (including principal and interest)
currently owed by MGI to MGG, pursuant to (i) the Credit Facility Agreement between MGG and
MGI dated August 29, 2008, and (ii) the Limited Liability Company Collateral Assignment and
Subordination Agreement between MGI, MGG and National Amusements Inc. of August 29, 2008.

     “MGL/MHE Initial Balance” means the current intercompany balance from MGL to
MHE prior to (i) the assignments referenced in Sections 2(c)(i) and 2(d) below and (ii) the
diminution referenced in Section 3(b) below.

     “MGL/MHE Residual Balance” means the intercompany balance from MGL to MHE after
(i) the assignments referenced in Sections 2(c)(i) and 2(d) below and (ii) the diminution
referenced in Section 3(b) below.

     “MGS/MHE Balance” means the current intercompany balance from MGS to MHE.

     2. Assignments. The parties hereto hereby agree to the following assignments and
transfers, all to occur simultaneously but deemed to occur in the following order:

     (a) MGS/MHE Balance: MHE hereby assigns all of its right, title and interest
in and to the MGS/MHE Balance to MGL, and MGL hereby accepts the same, in consideration of
the payment by MGL to MHE of €1.

     (b) MGG/MGL Initial Balance: In partial settlement and satisfaction of the
MGG/MGL Initial Balance:

     (i) MGG hereby assigns all of its right, title and interest in and to the MGI
Loan to MGL, and MGL hereby accepts and assumes the MGI Loan and MGG’s rights and
obligations thereunder; and

     (ii) MGG is concurrently herewith paying to MGL Five Hundred Sixty-One Thousand
Dollars ($561,000).

     (c) MGI Loan:

     (i) In partial settlement and satisfaction of the MGL/MHE Initial Balance, MGL
hereby assigns to MHE, and MHE hereby accepts and assumes, the MGI Loan.

     (ii) MHE hereby assigns to MGI, and MGI hereby accepts and assumes, the MGI
Loan in consideration of the payment by MGI to MHE of $1.

2

 

     (d) MGG/MGL Residual Balance: In partial settlement and satisfaction of the
MGL/MHE Initial Balance, MGL hereby assigns to MHE all of its right title and interest in
and to the MGG/MGL Residual Balance, and MHE hereby accepts the same.

     (e) MGL/MHE Residual Balance: Concurrently herewith, the MGL/MHE Residual
Balance is being settled and compromised in full by the payment by MGL to MHE of One Million
Seven Hundred Thousand Dollars ($1,700,000).

     3. Ancillary Agreements.

     (a) F+F Agreement. Pursuant to the F+F Agreement: (i) MHE will assign all of
its right, title and interest in and to the MGG/MGL Residual Balance to F+F in consideration
of the payment by F+F of €1 to MHE; (ii) MHE will assign all of its right, title and
interest in and to the MGG/MHE Balance to F+F in consideration of the payment by F+F of
€1 to MHE; and (iii) MGI will deliver to F+F a termination of the Abstract
Acknowledgement of Debt (Parallel Debt) among MGG, National Amusements Inc. and MGI and
certain of its subsidiaries dated August 8, 2008.

     (b) Product Development Arrangement. MHE represents that it terminated the
product development arrangement between itself and Newcastle on April 30, 2009, all
commissioned work having been completed. MGL acknowledges, on behalf of itself and its
subsidiary Newcastle, such termination, it being understood that MGL was in fact fulfilling
MHE’s payment obligations under such arrangement since at least January 1, 2008. MHE and
MGL (on behalf of itself and Newcastle) acknowledge that concurrently herewith they are
making adjustments to their books reflecting these facts, resulting in the elimination of
the intercompany balance from MHE to Newcastle, the elimination of the intercompany balance
from Newcastle to MGL, the diminution of the MGL/MHE Initial Balance (prior to settlement
and satisfaction of the MGL/MHE Residual Balance as set forth in Section 2(e) above), and
the creation of an intercompany balance from MGL to Newcastle of approximately Two Hundred
Thousand Dollars ($200,000).

     (c) Sales and Distribution Agreement. MGL and MGG hereby terminate the Sales
and Distribution Agreement between them dated March 1, 2005, as amended.

     4. Effect of Assignments. The parties hereby acknowledge and agree that the foregoing
transactions and adjustments to be effective immediately prior to the Closing result in the
elimination of all intercompany balances and obligations between any of MGL, Newcastle, MGS and MGG
on the one hand and MGI and MHE on the other hand, and between MGL and MGG. This Agreement is not
intended to eliminate intercompany balances between MGL and Newcastle; between MGL and MGS; and
between MGI and MHE. Each of the parties hereby explicitly approves each of the transactions set
forth in this Agreement. Concurrently herewith MGL is delivering to the parties hereto a written
acknowledgement from Newcastle that there are no remaining intercompany balances and obligations
between Newcastle on the one hand and MHE and MGI on the other hand. Attached hereto as
Exhibit A is a step plan, using the approximate amount of the intercompany balances as of
May 31, 2009 to illustrate how the intercompany balances will be eliminated in accordance with this
Agreement.

3

 

     5. Effective Date and Conditions. All of the transactions contemplated by this
Agreement shall be deemed effective as of the Closing Date immediately prior to the Closing
(“Effective Date”); provided, however, that none of the transactions contemplated
by this Agreement shall be effective unless and until (a) both of the sales referenced in the
fourth recital of this Agreement occur and close on the same day, (b) the written acknowledgement
from Newcastle referred to in Section 4 above is delivered to the parties hereto, and (c) the
payment referred to in Section 2(e) is actually made. The parties hereto shall make appropriate
notations in its respective books and records evidencing the transactions effected hereby. For
these purposes, the parties hereto shall cooperate to determine without undue delay after the
Effective Date the correct intercompany balances on the Effective Date.

     6. Miscellaneous.

     (a) The provisions of this Agreement are integrated and must be read as a whole and are
not severable and/or separately enforceable by any party hereto. If any provision, or part
thereof, of this Agreement is held to be invalid or unenforceable, the parties shall use
their best efforts to replace such provision by a provision that, to the extent permitted by
applicable law, achieves the purposes originally intended.

     (b) This Agreement constitutes the entire agreement and understanding between the
parties relating to the subject matter hereof and supersedes all other agreements and
representations, oral or written, between the parties.

     (c) This Agreement shall not be modified or amended except in writing signed by all
parties.

     (d) This Agreement will be governed by and construed under the laws of the State of
Delaware (without regard to its conflicts of laws rules).

     (e) This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the parties hereto.

     (f) This Agreement may be executed in counterparts or by facsimile, each of which shall
be an original, but all of which together shall constitute one.

[Signature Page Follows]

4

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth
above.

	 	 	 	 	 
	MIDWAY GAMES INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Matthew V. Booty	 	 
	 

	 	 	 	 
	 

	 	Name:  Matthew V. Booty

Title: President and CEO
	 	 
	 
	 	 	 	 
	MIDWAY HOME ENTERTAINMENT INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Matthew V. Booty	 	 
	 

	 	 	 	 
	 

	 	Name: Matthew V. Booty

Title: President and CEO
	 	 
	 
	 	 	 	 
	MIDWAY GAMES LIMITED	 	 
	 
	 	 	 	 
	By:
	 	/s/ Matthew V. Booty	 	 
	 

	 	 	 	 
	 

	 	Name:  Matthew V. Booty

Title: Director
	 	 
	 
	 	 	 	 
	MIDWAY GAMES GmbH	 	 
	 
	 	 	 	 
	By:
	 	/s/ Miguel Iribarren	 	 
	 

	 	 	 	 
	 

	 	Name: Miguel Iribarren

Title: Director
	 	 
	 
	 	 	 	 
	MIDWAY GAMES SAS	 	 
	 
	 	 	 	 
	By:
	 	/s/ Martin Spiess	 	 
	 

	 	 	 	 
	 

	 	Name: Martin Spiess

Title: President and Director General
	 	 

5

 

Current Intercompany Balances as of 6/30/09

 

 

2 (a)

(a) MGS/MHE Balance: MHE hereby assigns all of its right, title and interest in and to the MGS/MHE Balance to MGL, and
MGL hereby accepts the same, in
consideration of the payment by MGL to MHE of €1.

 

 

2(b)

(b) MGG/MGL Initial Balance: In partial settlement and satisfaction of the MGG/MGL Initial Balance:

(i) MGG hereby assigns all of its right, title and interest in and to the MGI Loan to MGL, and MGL hereby accepts and assumes the MGI Loan and MGG’s rights and
obligations thereunder; and

(ii) MGG is concurrently herewith paying to MGL Five Hundred Sixty?One Thousand Dollars ($Sixty 561,000).

 

 

2 (c) (i)

(c) MGI Loan:

(i) In partial settlement and satisfaction of the MGL/MHE Initial Balance, MGL hereby assigns to MHE, and MHE hereby accepts and assumes, the MGI Loan.

 

 

2 (c) (ii)

(c) MGI Loan:

(ii) MHE hereby assigns to MGI, and MGI hereby accepts and assumes, the MGI Loan in consideration of the payment by MGI to MHE of $1.

 

 

2 (d)

(d) MGG/MGL Residual Balance:

In partial settlement and satisfaction of the MGL/MHE Initial Balance, MGL hereby assigns to MHE all of its right title and interest in and to the
MGG/MGL Residual Balance, and MHE hereby accepts the same.

 

 

3 (b)

Effective prior to step 2e

3. Ancillary Agreements.

(b) Product Development Arrangement. MHE represents that it terminated the product development arrangement between itself and Newcastle on
April 30, 2009, all commissioned work having been completed. MGL acknowledges, on behalf of itself and its subsidiary Newcastle, such
termination, it being understood that MGL was in fact fulfilling MHE’s payment obligations under such arrangement since at least January 1,
2008. MHE and MGL (on behalf of itself and Newcastle) acknowledge that concurrently herewith they are making adjustments to their books
reflecting these facts, resulting in the elimination of the intercompany balance from MHE to Newcastle, the elimination of the intercompany
balance from Newcastle to MGL, the diminution of the MGL/MHE Initial Balance (prior to settlement and satisfaction of the MGL/MHE Residual
Balance as set forth in Section 2(e) above), and the creation of an intercompany balance from MGL to Newcastle of approximately Two Hundred
Thousand Dollars ($200,000).

 

 

2 (e)

(e) MGL/MHE Residual Balance: Concurrently herewith, the MGL/MHE Residual Balance is being settled and
compromised in full by the payment by MGL to MHE of One Million Seven Hundred Thousand Dollars ($1,700,000).

 

 

3(a)

3. Ancillary Agreements.

(a) F+F Agreement. Pursuant to the F+F Agreement: (i) MHE will assign all of its right, title and interest in and to the
MGG/MGL Residual Balance to F+F in consideration of the payment by F+F of €1 to MHE; (ii) MHE will assign all of its right,
title and interest in and to the MGG/MHE Balance to F+F in consideration of the payment by F+F of €1 to MHE; and (iii) MGI
will deliver to F+F a termination of the Abstract Acknowledgement of Debt (Parallel Debt) among MGG National Amusements
MGG, Inc. and MGI and certain of its subsidiaries dated August 8, 2008.

 

 

Final Balancesexv10w1

Exhibit 10.1

August 19, 2009

Jaime Cohen-Szulc

Dear Jaime:

I am delighted to confirm our offer of employment to join Levi Strauss & Co. (LS&Co.) as Senior
Vice President and Chief Marketing Officer — Levi’s® reporting to me. Your start date is
anticipated to be August 31, 2009. The details of our offer are as follows:

Work Location

	•	 	Your work location will be San Francisco, CA. However, as part of your induction period,
your work location will be Miami Beach, FL for the first three months of your employment.

Salary

	•	 	Your starting salary will be $11,057.70 per week (approximately $575,000 per year). The
position is assigned to the Executive Band in the company’s compensation program.

Annual Incentive Plan

	•	 	Your participation in the Annual Incentive Program (AIP) is 65% of your base salary, with a
2009 target value of $373,750. Your award opportunity under this plan is up to 200% of target
value as determined by your individual performance and the performance of the company. AIP
payouts are prorated based on date of hire. This payment will be made in the first quarter of
2010. A detailed explanation of the program is included with this letter.

Long Term Incentive — Stock Appreciation Rights

	•	 	You will participate in the Company’s Senior Executive Equity Incentive Plan. You will
receive Stock Appreciation Rights (SARs) totalling 43,000 units in February 2010 pending Board
of Directors approval of the strike price for your grant. This includes one-half of a
standard grant pro-rated for 2009, and one and one-half of a standard grant for 2010. Further
details regarding your grant will be provided along with your SARs Grant Notice in February
2010.

Signing Bonus

	•	 	You will receive a one-time signing bonus of $150,000 (gross), payable within 30 days of
your start date.

 

 

Cohen-Szulc — 2

	•	 	This signing bonus is offered in anticipation of the contributions you will make to our
business over time. In the event that you resign before completing one year (12-months) of
employment, or you are terminated for cause before one year (12-months) of employment, you
will be required to repay the prorated, remaining balance of your signing bonus. Any such
repayment may be deducted in whole or in part from any final payments due to you.
	 
	•	 	Enclosed you will find a Signing Bonus Acknowledgment and Payback Agreement. Please sign
and return the Payback Agreement.

Benefits

	•	 	Our offer also includes participation in our flexible benefits program. There are a number
of benefit options available to you in the areas of health care and life insurance, as well as
our long term savings programs which provide important tax advantages for your savings.
	 
	•	 	You are eligible to participate in the executive perquisite programs associated with a
position at your level. The total benefit of these programs, including parking and the
perquisite cash allowance, is approximately $19,374. The value of the perquisite cash
allowance is $15,000 per year, paid out to you in two installments each year. The first
payment is in January and the second is in June.
	 
	•	 	We will make an exception and you will accrue four weeks of TOPP (Time Off with Pay
Program) during your first year of employment.

Relocation

You are eligible for Relocation Benefits Level A inclusive but not limited to the following (see
policy for complete listing of benefits):

	•	 	You are eligible for relocation benefits to facilitate the move to the San Francisco area.
You will receive detailed information from Veronica Harris, Relocation Manager, who will be
available to assist you with your relocation.
	 
	•	 	We will extend the eligibility timeframe to 12 months from your start date to allow for the
purchase of a new residence in the San Francisco area.
	 
	•	 	Per policy, you will be eligible for temporary living assistance. As an exception, we have
extended this to a maximum of 6 months. We will connect you with our local resources to
expedite this effort.
	 
	•	 	If you purchase a home, you will be eligible for a one-time COLA payment per policy of
$50,000 (gross) based on market differences. The payment would be made at the time of home
purchase in the San Francisco area.

 

 

Cohen-Szulc — 3

	•	 	If you purchase a home, you will also be eligible for a loan subsidy up to a maximum of
$30,000 to cover interest payments.
	 
	•	 	We will cover the expenses for up to 27 round trip airline tickets between Miami Beach and
San Francisco for you and/or your spouse/children to use while they are still residing in
Miami Beach. This benefit, however, will expire when your family moves to the SF Bay Area.
The costs should be expensed as incurred through the Company travel and expense management
practice. You may be responsible for any taxes on this benefit, as applicable.
	 
	•	 	We will provide you with three company-paid home leave trips (one trip per year for the
first three years of your employment) to Brazil for you and your spouse/children. After the
first 3 years, you will not be eligible for company paid home leave benefits. The costs for
airfare, hotel, and a rental car will be covered and should be expensed as incurred through
the Company travel and expense management practice. You may be responsible for any taxes on
this benefit, as applicable.

The above describes some of the terms of LS&Co.’s compensation and benefit programs, which may be
updated periodically. The official documents govern in all cases. Questions about your
compensation, benefits or other Human Resources related issues may be directed to Cathy Unruh, Sr.
Vice President, Human Resources, at (415) 501-6588.

Worldwide Code of Business Conduct

	•	 	You will be provided you with a copy of the Worldwide Code of Business Conduct (“WCOBC”).
The WCOBC sets out basic principles to guide all employees of the company with how LS&Co.
conducts business while at the same time provides helpful guideposts for behavior while on the
job. You will find enclosed with this letter a copy of the Statement of Commitment which each
employee is required to sign agreeing to abide by the principles set forth in the WCOBC.
Compliance with the WCOBC is a fundamental condition of employment. Please bring the form on
your first day. If you should have any questions, please let me know before your start date.

Other

	•	 	You will need to provide evidence that you are legally authorized to work in the United
States. Please refer to the attached sheet for the type of evidence required according to the
government’s I-9 regulations. Your employment is specifically conditioned upon your providing
this information within 72 hours of your start date.
	 
	•	 	LS&Co. expects your association with the company will be mutually beneficial. Nonetheless,
LS&Co. is an “at-will employer,” which means you or LS&Co. can terminate your employment at
LS&Co. at any time with or without cause, and with or without notice.

 

 

Cohen-Szulc — 4

Jaime, we are very excited about you joining the company. We are confident that you will make a
valuable contribution to LS&Co.’s business.

Sincerely,

	 	 	 	 	 
	/s/ John Anderson
 	 	 
	John Anderson 	 	 
	President and Chief Executive Officer 	 	 
	 

	CC:	 	Cathy Unruh, Sr. Vice President, Human Resources
	 
	Attachments:	 	I-9 Requirements

Signing Bonus Acknowledgment

Code of Conduct

Annual Incentive Plan

Relocation Summary

	 	 	 
	/s/ Jaime Cohen-Szulc

	 	August 20, 2009
	 	 	 
	Signed: Jaime Cohen-Szulc

	 	Date

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