Document:

EX-10.4

 

EXHIBIT 10.4

EXECUTION COPY

TERMINATION AND TRANSFER OF ASSETS AGREEMENT

     This termination agreement (the “Agreement”) between Infogrames Entertainment SA, with an
address of 1 Place Verrazzano, 69252 Lyon Cedex 09, France, acting on behalf of itself and its
affiliates (other than Atari, Inc.) (“IESA”), Atari Interactive, Inc., a wholly owned subsidiary of
IESA (“Atari Interactive”) and Atari, Inc., with an address of 417 Fifth Avenue, New York, NY 10016
(“Atari” and, collectively with IESA and Atari Interactive, the “Parties”) is entered into as of
December 4, 2007 and effective as of December 1, 2007 (the “Effective Date”).

WITNESSETH:

     WHEREAS, IESA and Atari are parties to that certain Production Services Agreement, dated as of
March 31, 2006 (the “PSA”);

     WHEREAS, the Parties have determined that it is to their mutual benefit to terminate the PSA
and effectively to transfer a significant part of the Atari Production Department team personnel
and related assets  to IESA;

     WHEREAS, the Parties wish to provide for certain transitional matters in connection with such
termination, all in accordance with the terms and conditions of this Agreement;

     NOW THEREFORE, in consideration of the mutual covenants and agreements herein, the Parties
hereby agree as follows:

	 	1.	Certain Definitions.

	 	a.	 	“Other Inter-Company Agreements” shall have the meaning
provided in Section 8 of this Agreement.
	 
	 	b.	 	“Potential Transition Personnel” means certain Atari employees,
as identified in Exhibit A, that currently perform Production Services
and/or related functions pursuant to the PSA and shall receive offers of
employment from Atari Interactive in accordance with Section 5 of this
Agreement.
	 
	 	c.	 	“Production Services” means the “PRODUCTION SERVICES”, as
defined in the PSA, with the exception of Quality Assurance services which will
be subject to a new agreement.
	 
	 	d.	 	“PSA” shall have the meaning provided in the recitals to this
Agreement.
	 
	 	e.	 	“Purchased Equipment” means all or substantially all of the
computer, telecommunications, and other office equipment currently being used
by the Transition Personnel to perform the Production Services, as enumerated
in Exhibit B-1 and B-2 attached hereto (and subject to any limitations
on transfer).
	 
	 	f.	 	“Services Agreement” shall have the meaning provided in Section
3 of this

 

 

	 	 	 	Agreement.
	 
	 	g.	 	“Transition Personnel” shall mean the Potential Transition
Personnel that accept Atari Interactive employment offers, in accordance with
Section 5 of this Agreement.

	 	2.	 	Consideration. (a) In consideration of the transfer of the portion of
the Purchased Equipment set forth on Exhibit B-1 (fixed assets), IESA shall pay to
Atari the agreed upon current net book value thereof set forth on Exhibit B-1 in the
aggregate amount of $10,806.25 in accordance with the terms of paragraph 9 hereof.
	 
	 	 	 	(b)  In consideration of the transfer of the portion of the Purchased Equipment set
forth on Exhibit B-2 (development assets), IESA shall pay to Atari the mutually
agreeable replacement cost thereof set forth on Exhibit B-2. in the aggregate amount of
$49,969.70 in accordance with the terms of paragraph 9 hereof.
	 
	 	3.	 	Termination. Notwithstanding anything in the PSA to the contrary
(including but not limited to Section 2.01(a) of the PSA) and except as set forth
below, the PSA is, and all of its provisions hereby are terminated, as of the Effective
Date. Notwithstanding anything in the PSA to the contrary, IESA will pay any
outstanding amounts due prior to the Effective Date in connection with any Production
Services, including but not limited to any costs, expenses, and other compensation
provided in Section 1.02 of the PSA. For the avoidance of doubt, in addition to the
payment obligations of IESA, the rights and obligations contained in Sections 2.02,
2.03, 2.04, 2.05 and 2.08 of the PSA shall survive termination thereof.
	 
	 	4.	 	Confidentiality. Atari shall promptly return to IESA any confidential
and/or proprietary information of IESA disclosed to Atari solely pursuant to the PSA
and remaining in Atari’s possession, including, without limitation, any and all
interactive software game related object code, source code, milestone submissions,
audio-visual assets, demos, proposals, and related product documentation and
information (collectively, the “IESA Proprietary Materials”). Notwithstanding the
foregoing, Transition Personnel shall be entitled to retain any IESA Proprietary
Materials in their custody or control as of the Effective Date.
	 
	 	5.	 	Personnel Matters.

	 	a.	 	Potential Transition Personnel. Atari Interactive
shall, on or about the Effective Date, make offers of employment to the
Potential Transition Personnel. In such offers, Atari Interactive shall use
commercially reasonable efforts to replicate, in all material respects,
reasonably comparable employment terms of the Potential Transition Personnel
(e.g. including but not limited to salaries, titles, job responsibilities,
benefits, vacation days).
	 
	 	b.	 	Transition of Personnel. The Parties shall cooperate
in good faith and shall use commercially reasonable efforts to facilitate the
transition of the Transition Personnel, including but not limited to: (i)
communicating the

 

 

	 	 	 	logistics of such transition to the affected personnel, (ii) coordinating the
logistics of offer letters to Potential Transition Personnel and resignations
from Atari by Transition Personnel and (iii) adopting reasonably appropriate
resolutions to any contractual or other legal consequences triggered by the
transition process. Upon completion of the transition, the Transition Personnel
are released by Atari from any non-compete, non-solicitation, confidentiality
solely to the extent that such restrictions will restrict the ability of such
personnel to be employed by Atari Interactive as described herein. In the event
that any Potential Transition Personnel either (x) ceases to be an employee of
Atari prior to the Effective Date for whatever reason or (y) declines to accept
Atari Interactive’s offer of employment, such individual shall not be considered
to be Transition Personnel. Any liability for severance, employee benefits (see
Section 8 below), visa fees, etc., if any, related to Transition Personnel, as
Atari Interactive employees only, shall become the sole responsibility and
liability of Atari Interactive following the Effective Date. Except as set
forth below, Atari shall remain responsible for all such costs, if any, related
to Transition Personnel for the period prior to the Effective Date and for
Potential Transition Personnel who do not become Transition Personnel. Atari
Interactive and IESA shall be responsible for the payment of 50% of the accrued
vacation amount payable to the Transition Personnel with respect to vacation
accrued during their employment with Atari. Such payment shall be made by Atari
Interactive to Atari on the Effective Date or as part of the next regularly
scheduled Atari payroll disbursement, whichever occurs later. To the extent
legally permissible and materially feasible, for the purposes of participation
in employee plans, benefits, etc. the tenure of each Transition Personnel shall
be deemed to have commenced on the first day of such respective Transition
Personnel’s employment with Atari.
	 
	 	c.	 	Waiver; Indemnity. IESA shall not be responsible for any costs,
expenses, obligations, or other liability associated with any Atari personnel
having rendered any Production Services at any time during the term of the PSA
prior to the Effective Date, except for the fees, costs and expenses payable by
IESA pursuant to the terms of the PSA.  IESA will only be responsible for any
costs, expenses, obligations or other liability associated with the Transition
Personnel — as Atari Interactive employees — after the Effective Date. Except
as set forth in the last sentence of Section 3 and except for the fees, costs
and expenses payable to Atari by IESA pursuant to the terms of the PSA, Atari
hereby releases, holds harmless, and, agrees to indemnify IESA for such costs,
expenses, obligations and other liability associated with any Potential
Transition Personnel with respect to the period prior to the Effective
Date. Except as set forth in the last sentence of Section 3, IESA hereby
releases, holds harmless and agrees to indemnify Atari with respect to any and
all liabilities, claims or obligations arising under or relating to the PSA or
the performance of any services thereunder.

 

 

	 	6.	 	Office Space. Atari shall, as from the Effective Date, allocate to
IESA the office space currently being used by the Transition Personnel (or
substantially equivalent space) at Atari’s 417 Fifth Avenue, New York, NY location, for
so long as and to the extent that such space is not needed by Atari, in its reasonable
determination and upon at least 6 months notice, for use by such Transition Personnel
(but only for so long as Atari continues to lease space at the applicable location(s)
for its own personnel or possesses rights to sublet). The terms of such allocation
shall be negotiated by the Parties in good faith promptly before the execution of this
Agreement and in connection with the execution of the contemplated new services
agreements between the Parties.
	 
	 	7.	 	Equipment. Effective on the Effective Date, Atari shall transfer,
convey, assign and deliver to IESA, and IESA shall purchase, accept and receive all of
Atari’s right, title and interest, free and clear of encumbrances, in and to the
Purchased Equipment, subject to any restriction on transfer and receipt of required
consents. IT IS UNDERSTOOD AND AGREED THAT ALL PURCHASED EQUIPMENT IS BEING SOLD TO
IESA ON AN AS IS, WHERE IS BASIS, WITHOUT ANY REPRESENTATION OR WARRANTY OF ANY KIND
AND ALL SUCH WARRANTIES, EXPRESS OR IMPLIED, ARE HEREBY SPECIFICALLY DISCLAIMED
	 
	 	8.	 	Benefits Programs. Effective on the Effective Date, Atari will make
available to Atari Interactive, for the benefit of the Transition Personnel, Atari’s
medical, insurance and 401k programs (the “Benefit Programs”). Atari will make the
Benefits Programs available to and will administer such benefits on behalf of Atari
Interactive for this purpose. If Atari is unable to administer such benefits on behalf
of Atari Interactive, Atari shall provide written notice to Atari Interactive as soon
as reasonably practicable after Atari affirmatively knows that it will be unable to
administer or provide such benefits, provided that, such written notice shall never be
less than the notice that Atari receives by virtue of the contracts concluded between
itself and the relevant third parties. If Atari Interactive no longer wishes Atari to
administer such benefits program, Atari Interactive shall provide 30 days written
notice to Atari.  The Parties shall coordinate an appropriate cut off and transfer
date, upon which Atari Interactive shall be responsible for providing the Transition
Personnel with comparable benefits as provided in the Benefits Programs.  Atari
Interactive agrees to reimburse Atari for any costs, expenses or fees that Atari may
incur as a result of making such Benefits Programs available to Atari Interactive for
the Transition Personnel. 
	 
	 	 	 	Atari Interactive and IESA hereby release, hold harmless and shall indemnify Atari for
such costs, expenses, obligations and other liabilities asserted by the Transition
Employees with regard to the Benefits Programs after the Effective Date.
	 
	 	9.	 	Right to Offset Payments. The Parties acknowledge that they (or their
affiliates) currently provide various rights and services to one another pursuant to a
Services Agreement, dated March 31, 2006, a Management Services Agreement, dated March

 

 

	 	 	 	31, 2006, and Distribution Agreements, dated as of December 16, 1999, October 2, 2000
and August 22, 2005, respectively (each as amended and supplemented to date and
collectively, the “Other Inter-Company Agreements”). The Parties expressly agree that
each Party shall have the right throughout the term of this Agreement to offset such
payments as are owed under this Agreement against payments due under any of the Other
Inter-Company Agreements.
	 
	 	10.	 	Charge-Back/Usage for/of Certain Transition Personnel. For the period
from the Effective Date until January 31, 2008, Atari Interactive shall permit Robert
Stevenson and David Geudelekian to provide oversight and supervisory business
development and production services to Atari, as applicable. In consideration of such
services, Atari shall pay Atari Interactive a fee equal to (i) 25% of the costs
associated with Robert Stevenson, plus 6%, and (ii) 50% of the costs associated with
David Geudelekian, plus 6%. Further, Atari Interactive shall permit Samuel Gatte to
provide oversight and supervisory quality assurance services to Atari at no additional
cost.
	 
	 	11.	 	Further Assurances. Following the Effective Date, the parties shall
execute, acknowledge and deliver such other instruments or documents as may be
reasonably necessary or appropriate to carry out the transactions contemplated by this
Agreement. Specifically, at any time, from time to time following the Effective Date,
at the request of IESA and without further consideration, Atari shall execute and
deliver such instruments of sale, transfer, conveyance and assignment to evidence
IESA’s rights to, and title in, the Purchased Equipment (to the extent transferable and
assignable) and/or the IESA Proprietary Materials. Atari will comply at IESA’s expense
with IESA’s reasonable requests to assist IESA in its efforts to effect transfer of the
Purchased Equipment and to transition the Transition Personnel.
	 
	 	12.	 	Binding Nature of Terms. Each of the terms of this Agreement is
binding upon the Parties, and their respective successors, transferees, and assigns.
If any provision of this Agreement is declared null and void or unenforceable by any
court or tribunal having jurisdiction, then such provision shall be considered separate
and apart from the remainder of this Agreement which shall remain in full force and
effect, but such provision shall be modified (as nearly as possible to reflect its
original intent) to eliminate such aspects of the provision that made it null, void or
unenforceable and such modified provision shall then be deemed an original part of this
Agreement.
	 
	 	13.	 	Authorization of Signatories. The persons signing this Agreement
represent and warrant that they are duly authorized to execute this Agreement on behalf
of each of the Parties, and to bind said entities to the terms, conditions, provisions,
duties and obligations set forth in this Agreement.
	 
	 	14.	 	Notices. All notices, requests, demands, claims and other
communications hereunder shall be as provided in Section 2.09 of the PSA, which is
hereby incorporated herein by reference, with notice to Atari Interactive being sent to
the same address as is set forth for Atari.

 

 

	 	15.	 	Execution in Counterparts and Facsimiles. This Agreement (and all
exhibits, appendices and amendments) may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed to be an original and all
of which taken together shall constitute one and the same instrument, respectively.
Executed copies of the signature pages of this Agreement sent by facsimile or
transmitted electronically in either Tagged Image Format Files (“TIFF”) or Portable
Document Format (“PDF”) shall be treated as originals, fully binding and with full
legal force and effect, and the parties waive any rights they may have to object to
such treatment. Any party delivering an executed counterpart of this Agreement by
facsimile, TIFF or PDF also may deliver a manually executed counterpart of this
Agreement, but the failure to deliver a manually executed counterpart shall not affect
the validity, enforceability, and binding effect of this Agreement.
	 
	 	16.	 	General. This Agreement constitutes the entire agreement of the
Parties relating to the PSA and the termination thereof, and supersedes any and all
prior and contemporaneous oral and/or written agreements concerning the subject matter
hereof. This Agreement can only be modified by a writing signed by both Parties. This
Agreement, once signed by an authorized representative of each of IESA and Atari, shall
constitute a valid and binding agreement, as of the date first set forth above,
enforceable in accordance with its terms and governed under the law of the State of New
York without regard to its principals of conflict of laws. The Parties submit to the
exclusive jurisdiction of the state and federal courts located within New York, New
York for any dispute arising from or in connection with this Agreement.
	 
	 	17.	 	Intended Parties in Interest. This Agreement shall be binding upon and inure
solely to the benefit of Atari, Atari Interactive and IESA, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other person any
rights, benefits or remedies of any nature whatsoever under or by reason of this
Agreement. Without limiting the generality of the foregoing, no employee of Atari
shall acquire any rights directly as a result of this Agreement and this Agreement is
not intended to, and shall not, alter the employment relationship with any employee or
constitute an employment agreement, or any amendment to any employment agreement with
any employee.

[Signature Page Follows]

 

 

     IN WITNESS WHEREOF, the Parties to this Agreement have caused it to be duly executed by their
respective authorized representatives on the day and year first above written.

	 	 	 	 	 	 	 	 	 
	INFOGRAMES ENTERTAINMENT SA 	 	 	 	ATARI, INC.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Patrick Leleu
	 	 	 	By:
	 	/s/ Curtis G. Solsvig
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	Patrick Leleu
	 	 	 	Name:
	 	Curtis Solsvig
	Title:

	 	Chairman and CEO
	 	 	 	Title:
	 	Chief Restructuring Officer
	 
	 	 	 	 	 	 	 	 
	ATARI INTERACTIVE, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Hastefort
 

	 	 	 	 	 	 
	Name:

	 	Hastefort	 	 	 	 	 	 
	Title:

	 	CEOEX-10.5

 

EXHIBIT 10.5

Execution Version 

INTERCOMPANY SERVICES AGREEMENTS

Effective Date: December ___, 2007

The Parties:

     Infogrames Entertainment SA, a French company having its principal place of business at 1
Place Verrazzano 69252 Lyon Cedex 09, France (“Infogrames”), Atari Interactive, Inc.
(“Interactive”) and Humongous, Inc., each a Delaware corporation, having its principal
place of business at 417 Fifth Avenue, New York 10016, United States of America (collectively, the
“Infogrames Affiliates”)

               and

     Atari, Inc., a Delaware corporation, having its principal place of business at 417 Fifth
Avenue, New York 10016, United States of America (“Atari” and collectively with the
Infogrames Affiliates, the “Parties”).

     WHEREAS, this Intercompany Services Agreement (this “Intercompany Services Agreement”)
sets forth the principal terms and conditions agreed to by the Parties under which, among other
things, Infogrames and Atari shall terminate the Current Services Agreements (as defined below) and
in replacement thereof Atari shall provide intercompany services to Infogrames and the other
Infogrames Affiliates for an initial period commencing as of the date hereof (the “Effective
Date”) and ending June 30, 2008, subject to renewal as set forth hereafter.

     NOW THEREFORE, in consideration of the conditions and mutual covenants set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by the Parties, Atari and the Infogrames Affiliates (as applicable) agree as follows:

	1.	 	Termination and Replacement of Current Intercompany Services Agreements: This
Intercompany Services Agreement hereby supersedes, replaces and terminates (a) the Management
and Services Agreement dated as of March 31, 2006, between Infogrames and Atari (and any
amendments and addenda thereto, the “Management Services Agreement”) and (b) the
Services Agreement dated March 31, 2006 between Infogrames and Atari (and any amendments and
addenda thereto, the “Services Agreement” and together with the Management Services
Agreement, the “Current Services Agreements”). As of the Effective Date, the Current
Services Agreements shall be of no further force or effect, except for those provisions which
shall survive by the express terms of Section 2.03 of each of the respective Current Services
Agreements and in accordance with the terms thereof.
	 
	 	 	From time to time, upon the mutual consent of Infogrames and Atari and on a case by case
basis, Infogrames and Atari, may enter short term arrangements pursuant to which Infogrames
will provide special projects and services to Atari (e.g., strategic assistance, funding
research), subject to mutually agreeable terms and conditions.
	 
	2.	 	Reconciliation of Amounts Due. Within forty-five (45) days of the Effective Date,
all outstanding amounts due in connection with the Current Services Agreements, including
without

 

 

	 	 	limitation all costs, expenses, and other compensation provided therein shall be reconciled
with the net amount payable to Infogrames or Atari, as applicable.
	 
	3.	 	Initial Term and Renewal:
	 
	 	 	The initial term of this Intercompany Services Agreement shall commence on the Effective
Date and continue through June 30, 2008 (the “Initial Term”). The Parties may renew
this Intercompany Services Agreement for additional periods of three months (the
“Renewal Periods” and if any, together with the Initial Term, the “Term”).
	 
	 	 	The parties shall in good faith confer no later than 15 days before the expiration of the
Initial Term and/or the Renewed Periods to determine whether to continue to renew this
Intercompany Services Agreement.
	 
	4.	 	Provision of Services. During the Term, Atari shall provide to the Infogrames
Affiliates those services described in Schedule 1 subject to the terms and conditions set
forth herein (the “Services”) and at the respective costs set forth on Exhibits A2,
B1, and C2.

All employees and representatives of Atari or its subsidiaries providing the Services hereunder to
the Infogrames Affiliates during the Term (collectively, the “Services Employees”) shall be deemed
for all purposed (including compensation and employee benefits) to be employees or representatives
solely of Atari, and not to be employees, representatives, or independent contractors of the
Infogrames Affiliates.

For the avoidance of doubt, any other services previously provided by Atari to the Infogrames
Affiliates under the Services Agreement and not expressly set forth on Schedule 1 are hereby
terminated (e.g., PR and Corporate Communications services).

	5.	 	Further Assurances. During the Term, Atari shall use its commercially reasonable
efforts to assist and facilitate the Infogrames Affiliates in their efforts to establish the
systems and work force necessary for them to provide the Services for themselves (the
“Assistance Project”). Atari shall provide to Infogrames reasonable access (subject to
applicable confidentiality restrictions) to those records, files, materials, and resources
dedicated and/or necessary to the provision of the Services and/or currently used primarily
therewith, as soon as possible following the Effective Date.
	 
	 	 	Atari shall be entitled to bill the Infogrames Affiliates and the Infogrames Affiliates
shall pay for time expended in connection with the Assistance Project based upon a scope and
timing allocation mutually agreed upon by the parties hereto. If in connection with such
efforts, Atari provides to the Infogrames Affiliates any proprietary or sensitive
information, the Infogrames Affiliates agree to keep all such information confidential.
	 
	6.	 	Work Force. On and after the Effective Date, Atari shall use reasonable efforts to
continue to employ each person listed on Exhibit A1 (the “Service Employees”) until
the expiration of the Term, provided however, that Atari shall be permitted to terminate any
Service Employee for cause (as determined in its sole discretion).
	 
	 	 	Atari shall not be required to maintain the employment (or hire replacement personnel) for
Service Employees that have been terminated or have voluntarily resigned from Atari. Atari
shall be required to find alternative solutions (in consultation with Infogrames), if
necessary, in order to

2

 

	 	 	maintain provision of the Services provided by any Services Employee that resigns or is
terminated for cause within a 15 business day period.
	 
	 	 	The portion of the working time and annual charge of/for the Service Employees which shall
be allocated and billed to Infogrames or Interactive, as applicable, is set forth on Exhibit
A1.
	 
	 	 	Unless otherwise agreed upon by the Parties, no Service Employees shall be solicited or
hired by any of the Infogrames Affiliates (or any other entity affiliated therewith, except
Atari) during the Term or for a period of one (1) year thereafter. On or before December
15, 2007, the Parties shall confer as to whether any Service Employees shall be offered
employment with any of the Infogrames Affiliates (subject to all applicable employee
rights). Atari shall, during the period starting from the Effective Date and ending on
December 15, 2007, identify those employees whom Atari is willing to permit being offered
employment by the Infogrames Affiliates. Atari shall furnish a written list identifying the
potential offerees of employment to Infogrames
	 
	7.	 	Billing and Payment for Services. Following the Effective Date, Atari shall on a
quarterly basis submit to Infogrames its billing invoice in US Dollars (the “Services
Invoice”) setting out itemized fees and costs in connection with the Services (which may
differ from the amounts set forth on the Exhibits hereto, which reflect current budgeted
amounts though the allocation percentage is fixed). In no case shall the billed amount exceed
the applicable budgeted amounts, except for the costs associated with IT and MIS Services
listed on Exhibit B1. Additional itemization and further explanation and substantiation of
charges shall be supplied to Infogrames upon its reasonably request. Payment by Infogrames in
respect of any such invoice shall be made within 30 days after the date upon which such
Services Invoice is sent to Infogrames.
	 
	 	 	The Parties acknowledge that they (or their affiliates) currently provide various rights and
services to one another pursuant but not limited to distribution agreements, production
services agreements, and quality assurance service agreements (collectively, the “Other
Intercompany Agreements”). The Parties expressly agree that each Party shall have the
right throughout the Term to offset such payments as are owed under this Intercompany
Services Agreement against payments due under any of the Other Intercompany Agreements.
	 
	8.	 	IT and MIS Services. Atari shall continue to provide to the Infogrames Affiliates
the IT and MIS services listed in Exhibit B1 during the Initial Term and any Renewal Period,
if any. Interactive shall bear the costs of the IT and MIS Services, as identified and set
forth in Exhibit B1, which costs are inclusive of all and any licenses and maintenance fees
paid by Atari for the systems and other tools provided by Atari to the Infogrames Affiliates
and are based on the allocations set forth on Exhibits B2 and B3. The Infogrames Affiliates
are authorized by Atari to seek to implement the Assistance Project and Atari will provide
reasonable and supervised access to its systems as are necessary for such implementation.
	 
	9.	 	Facilities Management Services. During the Term, Atari shall allocate to the
Infogrames Affiliates that portion of its office space located at 417 Fifth Avenue, New York
as is further described in Exhibit C1 (the “Office Space”).
	 
	 	 	Atari shall relocate its employees whose working areas are within the Office Space to areas
outside of the Office Space by January 31, 2008.
	 
	 	 	To the extent permitted by Atari’s lease for the premises located at 417 Fifth Avenue, New
York (the “Lease”) (subject to any required landlord approval), the parties shall in
good faith negotiate a sublease for the Office Space which shall extend for the duration of
the Lease.

3

 

	 	 	Either party shall give the other 60 days written notice of its intention to vacate the
premises governed by the Lease and terminate the allocation arrangement. Notwithstanding
the foregoing, the Infogrames Affiliates agree that they will not vacate the Office Space
and terminate the allocation arrangement prior to March 31, 2008. Each party shall be
responsible for its own costs incurred in connection with any such termination.
	 
	 	 	In payment for the Office Space, Infogrames shall bear the portion of the rent, including
utilities and other categories of costs listed in Exhibit C2 (i.e., maintenance, phone
services, electricity, water, heat, etc), which is based upon the ratio of the Office Space
to the overall space rented under the Lease terms and conditions.
	 
	10.	 	ESA Membership. The Infogrames Affiliates acknowledge that Atari has previously
provided to them a copy of the documentation evidencing the membership dues payable by Atari
with respect to its membership in and other fees payable to the Entertainment Software
Association and the Entertainment Software Review Board (collectively, the “ESA
Dues”), which inures to the mutual benefit of the Infogrames Affiliates.
	 
	 	 	Accordingly, during the Term, Infogrames shall bear a portion of the costs of the ESA Dues
representing 60% of the aggregate ESA Dues.
	 
	11.	 	Third Party Vendors. Within 30 days of the Effective Date, Atari shall provide the
Infogrames Affiliates with a list of the third party vendors that it utilizes in connection
with the provision of the Services.
	 
	12.	 	Expiration/Termination of this Intercompany Services Agreement or Specific Services.

(a) Either party may terminate this Intercompany Services Agreement for cause (i.e.,
material breach and failure to cure within thirty (30) days or bankruptcy/liquidation of the
other party).

(b) For all Services other than the IT and MIS Services and Facilities Management Services,
the Infogrames Affiliates may terminate any specific Service set forth on EXHIBIT A1
provided that it provides prompt notice to Atari that, within 15 days of the next Atari
payroll cycle (the “Notice Period”), it will no longer require the specific Service and upon
the expiration of the Notice Period Atari shall no longer provide such Service (except that
the Infogrames Affiliates shall remain responsible for all fees and costs incurred through
and including the Notice Period).

(c) For the IT and MIS Services, the Infogrames Affiliates may terminate any specific
Service set forth on EXHIBIT B1 (for clarity, “specific Service” refers to each sub-item
listed on Exhibit B1) provided that it provides prompt notice to Atari that, within 30 days
(the “IT/MIS Notice Period”), it will no longer require the IT and MIS Services and
upon the expiration of the IT/MIS Notice Period Atari shall no longer provide such IT and
MIS Services (except that the Infogrames Affiliates shall remain responsible for all fees
and costs incurred through and including the IT/MIS Notice Period).

(d) Termination of the facility management services identified in Section 9 hereof shall be
governed by the terms of Section 9.

(e) If the Infogrames Affiliates obtain independent membership in the Entertainment Software
Association and the Entertainment Software Review Board they shall be permitted to cease
paying their portion of the ESA Dues upon 30 days notice

4

 

	13.	 	Indemnification. Each of the IESA Affiliates hereby releases, indemnifies and agrees
to hold harmless Atari and its vendors and their affiliates, successors and assigns (and its
and their officers, directors, employees, sublicensees, customers and agents) from and against
any and all claims, losses, liabilities, damages, settlements, expenses and costs (including,
without limitation, attorneys’ fees and court costs) which arise out of provision of the
Services, other than such losses and/or damages which arise out of Atari’s or its vendor’s
gross negligence or willful misconduct, respectively. Provided, however, that nothing in this
paragraph shall require the Infogrames Affiliates to indemnify Atari with respect to any
employment claims or liabilities asserted by the Service Employees.
	 
	14.	 	Certain Agreements and Indemnities to Survive Termination of Agreement. The
Infogrames Affiliates payment obligations shall survive any termination of this Intercompany
Services Agreement and the Infogrames Affiliates indemnity obligation under Section 13 and the
Parties remedies obligation under Section 18 shall also survive. All other obligations
hereunder shall terminate as of the date of termination of this Intercompany Services
Agreement.
	 
	15.	 	Governing Law. This Intercompany Services Agreement will be governed by and
interpreted in accordance with the laws of the State of New York. The parties hereby agree
that any action arising out of this Intercompany Services Agreement will be brought solely
under the relevant courts located in New York, New York and irrevocably submit to the
exclusive jurisdiction of any such court and waive any objection that either party may now or
hereafter have to the venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agree not to plead or claim the
same.
	 
	16.	 	No Third Party Beneficiaries. No provision of this Agreement shall create any third
party beneficiary rights in any person or entity, including any employee or former employee
of the parties or any affiliate or associate thereof (including any beneficiary or dependent
thereof).
	 
	17.	 	Relationship of Parties. Nothing herein contained shall be deemed or construed by the
Infogrames Affiliates or Atari or for any other party as creating the relationship of
principal and agent or of partnership, joint employers or joint venture by the parties hereto.
	 
	18.	 	Remedies; Specific Performance. Without prejudice to any rights or remedies
otherwise available to any party hereto, the Infogrames Affiliates and Atari hereby
acknowledge that damages would be an inadequate remedy for any breach of the provisions of
this Agreement by any of the Infogrames Affiliates or Atari and agree that the obligations of
any of the Infogrames Affiliates or Atari, as the case may be, shall be specifically
enforceable.
	 
	19.	 	Long Form Agreement. At the written request of Infogrames, made on or before December 15,
2007, the parties shall enter into good faith negotiations and enter into a long form
intercompany services agreement on or before January 18, 2008 encompassing the terms set forth
in this Intercompany Services Agreement and such other business and legal terms and conditions
(including, without limitation, customary mutual representations, warranties, indemnities,
limitations of liability and confidentiality obligations.) upon which the parties hereto may
mutually agree (such long form distribution agreement being referred to herein as the “Long
Form Intercompany Services Agreement”). The parties expressly acknowledge and agree that if
the Long Form Intercompany Services Agreement is not executed by the parties, this
Intercompany Services Agreement shall remain in full force and effect.

5

 

	20.	 	Notices. All notices, requests, demands, claims and other communications hereunder
shall be in writing. Any notice, request, demand, claim or other communication hereunder shall
be deemed duly given (a) if personally delivered, when so delivered, (b) if mailed, five
business days after having been sent by registered or certified mail, return receipt
requested, postage prepaid and addressed to the intended recipient as set forth below, (c) if
given by telex or telecopier, once such notice or other communication is transmitted to the
telex or telecopier number specified below and the appropriate answer back or telephonic
confirmation is received, provided that such notice or other communication is promptly
thereafter mailed in accordance with the provisions of clause (b) above or (d) if sent through
an overnight delivery service in circumstances to which such service guarantees next day
delivery, the day following being so sent:

if to any of the Infogrames Affiliates, to:

	 	 	 	 	 
	 	 	Infogrames Entertainment SA
	 	 	1 Place Verrazzano
	 	 	Lyon 69252 Lyon Cedex 09

France
	 
	 	 	 	 
	 

	 	Attention:
	 	Chief Operating Officer
	 

	 	Telephone:
	 	(+33) 437643764
	 

	 	Telecopy:
	 	(+33) 4 37 64 30 95
	 
	 	 	 	 
	 

	 	Attention:
	 	S.V.P Legal and Business Affairs
	 

	 	Telephone:
	 	(+33) 4 37 64 39 12
	 

	 	Telecopy:
	 	(+33) 437643095

if to Atari, to:

	 	 	 	 	 
	 	 	Atari, Inc.
	 	 	417 Fifth Avenue
	 	 	New York, New York 10016
	 
	 

	 	Attention:
	 	General Counsel
	 

	 	Telephone:
	 	(212) 726-6500
	 

	 	Telecopy:
	 	(212) 726-6590

	 	 	 	Any party hereto may give any notice, request, demand, claim or other communication
hereunder using any other means (including ordinary mail or electronic mail). Any party
hereto may change the address to which notices, requests, demands, claims and other
communications hereunder are to be delivered by giving the other parties notice in the
manner herein set forth.

	 	21.	 	Execution in Counterparts and Facsimiles. This Intercompany Services Agreement (and
all exhibits, appendices and amendments) may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument, respectively. Executed copies of
the signature pages of this Agreement sent by facsimile or transmitted electronically in
either Tagged Image Format Files (“TIFF”) or Portable Document Format (“PDF”)
shall be treated as originals, fully binding and with full legal force and effect, and the
parties waive any rights they may have to object to such treatment. Any party delivering an
executed counterpart of this Intercompany

6

 

	 	 	 	Services Agreement by facsimile, TIFF or PDF also may deliver a manually executed
counterpart of this Intercompany Services Agreement, but the failure to deliver a manually
executed counterpart shall not affect the validity, enforceability, and binding effect of
this Agreement.
	 
	 	22.	 	General. This Intercompany Services Agreement constitutes the entire agreement of
the Parties relating to the Services and the termination thereof, and supersedes any and all
prior and contemporaneous oral and/or written agreements concerning the subject matter hereof
and shall be binding upon all successors and assigns of the Parties. This Intercompany
Services Agreement can only be modified by a writing signed by Atari and Infogrames. This
Intercompany Services Agreement, once signed by an authorized representative of each of the
Parties, shall constitute a valid and binding agreement, as of the Effective Date.

[signature page follows]

7

 

          IN WITNESS WHEREOF, the duly authorized representatives of each of the Parties hereto have
executed this Intercompany Services Agreement as of the Effective Date.

	 	 	 	 	 	 	 	 	 	 	 
	Infogrames Entertainment SA	 	 	 	Atari, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Patrick Leleu
	 	 	 	By:
	 	/s/ Curtis G. Solsvig	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Signature)
	 	 	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Patrick Leleu
	 	 	 	Name:
	 	 Curtis Solsvig	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Print)
	 	 	 	 	 	(Print)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 Chairman and CEO
	 	 	 	Title:
	 	Chief Restructuring Officer	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Print)
	 	 	 	 	 	(Print)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Atari Interactive, Inc.	 	 	 	Humongous, Inc.	 	 
	 
	By:

	 	/s/ Hastefort
	 	 	 	By:
	 	/s/ Hastefort	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Signature)
	 	 	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Hastefort
	 	 	 	Name:
	 	 Hastefort	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Print)
	 	 	 	 	 	(Print)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 CEO
	 	 	 	Title:
	 	Chairman	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Print)
	 	 	 	 	 	(Print)	 	 

8

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