Document:

Exhibit 10.16  

              April
10, 2004 

Ms.
Amanda Bokman 

Dear
Amanda: 

        Pursuant
to our discussions regarding your employment with J. Crew Group, Inc. (the "Parent") and its operating subsidiaries (collectively
with the Parent, the "Company"), we thought it would be useful to lay out the terms and conditions of our agreement in this letter agreement
("Agreement") for all parties to sign. 

1.    Employment.  

        (a)    The Company hereby agrees to employ you during the "Employment
Period" (as defined below) as Executive Vice President and Chief Financial Officer, and you hereby agree to serve the Company in such capacity. You shall report to the Chief
Executive Officer of the Company. 

        (b)    During the Employment Period, you shall devote your full business time and energy, attention, skills and ability to the
performance of your duties and responsibilities hereunder and shall faithfully and diligently endeavor to promote the business and best interests of the Company. Accordingly, you may not, directly or
indirectly, without the prior written consent of the Company, operate, participate in the management, operations or control of, or act as an employee, officer, consultant, agent or representative of,
any type of business or service (other than as an employee of the Company), provided that it shall not be a violation of the foregoing for you to (i) act or serve as a director, trustee or committee
member of any civic or charitable organization, and (ii) manage your personal, financial and legal affairs, so long as such activities (described in clauses (i) or (ii)) do not interfere with the
performance of your duties and responsibilities to the Company as provided hereunder. 

2.    Employment Period.  

        (a)    Unless terminated sooner as provided in the next succeeding sentence of this Section 2(a), the
"Employment Period" shall begin on a date to be mutually determined (the "Commencement Date") and shall
terminate on the day preceding the fourth anniversary of the Commencement Date; provided that the Employment Period shall be extended automatically for successive one-year periods beginning on the
fourth anniversary of the Commencement Date unless notice of an election not to extend the Employment Period is served by either party on the other party at least 30 days prior to the date this
Agreement would otherwise expire absent an extension. Notwithstanding the foregoing, the Employment Period shall terminate upon the earliest to occur of (i) your death or Disability (as defined
below), (ii) voluntary termination of employment by you without Good Reason (as defined below) on at least two months prior notice, (iii) voluntary termination of employment by you for Good Reason in
accordance with the procedure outlined in Section 2(d) below, (iv) termination of employment by the Company without Cause (as defined below) or (v) termination of employment by the Company for Cause.
The date the Employment Period terminates as provided above shall be referred to hereafter as the "Termination Date". 

        (b)    Upon termination of the Employment Period for any reason, you shall be entitled to any earned but unpaid Base Salary (as
defined below) as of the Termination Date. If the Company terminates the Employment Period without Cause or you terminate the Employment Period for Good Reason or the Company terminates this Agreement
prior to the commencement of the Employment Period other than under circumstances that would constitute "Cause" (as defined below), you will be entitled to the following severance benefits (the
"Severance Benefits"): (i) continuation of your Base Salary as in effect immediately prior to such termination (your "Ending
Base Salary", and such continuation of your Ending Base Salary being referred to herein as the "Continuation Severance Payment")
and medical benefits, which may be provided by the Company reimbursing payment of COBRA premiums ("Continuation Medical Benefit") for a period of twelve
(12) months (the "Severance Period") after the Termination Date; (ii) the unpaid Annual Bonus, if any, earned in accordance with Section 3(b) herein,
for the fiscal year ending prior to the Termination Date; and 

 

(iii)
a lump sum amount equal to the product of (x) the Annual Bonus, if any, that you would have earned in the fiscal year which includes the Termination Date had your employment not been terminated
and (y) a fraction, the numerator of which is the number of days in the fiscal year that includes the Termination Date through the Termination Date and the denominator of which is 365, payable when
bonuses are generally paid to employees of the Company ("Pro-Rata Bonus"), provided that if the Commencement Date is on or before May 10, 2004 and the
Termination Date occurs during fiscal year 2004, the Pro-Rata Bonus shall not be less than the FY "04 Guaranteed Bonus that you would be entitled to under Section 3(b) herein; provided that the
Severance Benefits are subject to and conditioned upon your execution of a valid general release and waiver in a form reasonably satisfactory to the Company waiving all claims that you may have
against the Company, its successors, assigns, affiliates, employees, officers and directors and your compliance with the provisions set forth in paragraph 4 hereof. Notwithstanding anything herein to
the contrary, your right to receive the Continuation Severance Payment during the Severance Period shall terminate effective immediately upon the date that you become employed by a new employer or
otherwise begin providing services for an entity as a consultant or otherwise ("New Employment"); provided that if the cash compensation you receive
pursuant to such New Employment, including without limitation guaranteed bonus payments relating to the Severance Period whether or not paid during the Severance Period ("New
Compensation"), is less than your Ending Base Salary, the Company will continue to pay you an incremental amount during the remaining Severance Period such that the New
Compensation payments you receive together with such incremental amount will equal your Ending Base Salary on an annualized basis and your right to receive the Continuation Medical Benefit shall cease
immediately upon your being eligible for coverage under another group health plan. Notwithstanding the foregoing, you will not be obligated to seek New Employment. You shall immediately notify the
Company upon obtaining New Employment and provide all information regarding medical benefits coverage reasonably requested by the Company. The Company shall have no additional obligations under this
Agreement, including under any severance or termination pay plan, and your rights under any benefit plan of the Company to vested benefits or welfare benefits will be determined pursuant to the terms
of the applicable plan. 

        (c)    For purposes of this Agreement, the term "Cause" shall mean (i) the
indictment for a felony, (ii) willful misconduct or gross negligence in connection with the performance of your duties as an employee of the Company, (iii) a material breach of this Agreement,
including without limitation, your failure to perform your duties and responsibilities hereunder in any material respect, (iv) a fraudulent act or omission by you adverse to the reputation of the
Company or any affiliate, (v) the disclosure by you of any Confidential Information (as defined below) to persons not authorized to know same, (vi) a violation of or failure to comply with any Company
policy other than any violation or failure that is both minor and unintentional, and (vii) a violation of or failure to comply with any provision of the Company's Code of Ethics and Business
Practices, or any legal or regulatory obligations or requirements, including, without limitation, failure to provide any certifications as may be required by law. If subsequent to the termination of
your employment, it is discovered that your employment could have been terminated for Cause, your employment shall, at the election of the Company, in its sole discretion, be deemed to have been
terminated for Cause in which event the Company shall be entitled to immediately cease providing any Severance Benefits to you or on your behalf and recover any payments previously made to you or on
your behalf in the form of Severance Benefits and any release and waiver that you may have executed shall be of void and of no force and effect. In addition, for purposes of this Agreement, the term
"Disability" shall mean your incapacity due to physical or mental illness or injury, which results in your being unable to perform your duties hereunder
for a period of ninety (90) consecutive working days, and within thirty (30) days after the Company notifies you that your employment is being terminated for Disability, you shall not have returned to
the performance of your duties on a full-time basis. 

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        (d)    For purposes of this Agreement, the term "Good Reason" shall mean (i) any
action by the Company that results in a material and continuing diminution in your duties or responsibilities or (ii) a relocation of your principal place of employment to more than thirty-five (35)
miles from the Company's principal executive offices in New York, NY, in each case, without your written consent. Termination of your employment for "Good Reason" shall not be effective until you
deliver to the Board of Directors of Parent ("Board") a written notice specifically identifying the conduct of the Company which you believe constitutes
"Good Reason" in accordance with this Section 2(d) and you provide the Board at least thirty (30) days to remedy such conduct. 

3.    Compensation and Benefits.  

        (a)    Base Salary.    During the Employment Period, your annual
base
salary shall be $400,000 ("Base Salary") and shall be paid pursuant to regular Company payroll practices for the senior executives of the Company. 

        (b)    Annual Bonus.    In addition to the Base Salary, in each fiscal year during the
Employment Period, you will have the opportunity to earn an annual bonus ("Annual Bonus") at the following percentages of your Base Salary if both the
Company achieves certain performance objectives (which will be determined by the Company for each such fiscal year in accordance with the Company's bonus plan) and you achieve your performance goals
established by the Company after consultation with you: target bonus of 50% up to a maximum bonus of 100% of Base Salary. Notwithstanding the foregoing, if the Commencement Date is on or before May
10, 2004, your Annual Bonus for the fiscal year beginning February 1, 2004 will be at least $150,000 (the "FY '04 Guaranteed Bonus") regardless of
whether the performance objectives for such fiscal year are achieved. Any Annual Bonus payable above the FY '04 Guaranteed Bonus, if applicable, will be pro-rated based on the Commencement Date.
Except as specifically provided in Section 2(b) hereof, any Annual Bonus will be paid only if you are actively employed with the Company and not in breach of this Agreement on the date of actual
payment. If the Commencement Date is after May 10, 2004, you will not be eligible for the FY "04 Guaranteed Bonus and any Annual Bonus payable to you for the fiscal year beginning February 1, 2004
will be prorated based on the Commencement Date. 

        (c)    Initial Stock Options.    As soon as reasonably practicable after the Commencement Date
and subject to the approval of the Board or a Committee thereof, the Company will cause Parent to grant you a non-qualified stock option (the "Initial Option Grant
I") to purchase 35,000 shares of common stock of Parent (the "Common Stock") at an exercise price equal to $6.82 per share.
Twenty-five (25%) percent of the shares underlying the Initial Option Grant I shall vest and become exercisable each year on the anniversary of the grant date beginning with the first anniversary
thereof, provided that you continue to be actively employed by the Company on such anniversary. 

        (d)    Premium Stock Options.    As soon as reasonably practicable after the Commencement Date
and subject to the approval of the Board or a Committee thereof, the Company will cause Parent to grant you (i) a non-qualified stock option to purchase 10,000 shares of Common Stock at an exercise
price equal to $15.00 per share and (ii) a non-qualified stock option to purchase 10,000 shares of Common Stock at an exercise price equal to $25.00 per share (collectively, the
"Premium Options Grant I"). Twenty-five (25%) percent of the shares underlying the Premium Options Grant shall vest and become exercisable each year on
the anniversary of the grant date beginning on the second anniversary thereof, provided that you continue to be actively employed by the Company on such anniversary. 

        (e)    Additional Stock Options.    Provided that you are still actively employed by the
Company in April 2005 and that you have met or exceeded performance expectations and subject to the approval of the Board or a Committee thereof, the Company intends for you to receive in April 2005:
(i) a non-qualified option to purchase 5,000 shares of Common Stock, at a minimum, at an exercise price equal to $6.82 per share (the "Initial Option Grant
II"), (ii) a non-qualified option to purchase 5,000 shares of Common Stock, at a minimum, at an exercise price equal to $15.00 per share and 

3

 

(iii)
a non-qualified option to purchase 5,000 shares of Common Stock, at a minimum, at an exercise price equal to $25.00 per share (the options referred to in (ii) and (iii) being collectively
referred to herein as the "Premium Options Grant II"). Twenty-five (25%) percent of the shares underlying the Initial Option Grant II shall vest and
become exercisable each year on the anniversary of the grant date beginning with the first anniversary thereof, provided that you continue to be actively employed by the Company on such anniversary.
Twenty-five (25%) percent of the shares underlying the Premium Options Grant II shall vest and become exercisable each year on the anniversary of the grant date beginning on the second anniversary
thereof, provided that you continue to be actively employed by the Company on such anniversary. 

        (f)    Restricted Stock.    As soon as reasonably practicable after the Commencement Date and
subject to the approval of the Board or a Committee thereof, the Company will also cause Parent to grant you 25,000 restricted shares of Common Stock (the "Restricted Stock
Grant"). Twenty-five (25%) percent of the shares underlying the Restricted Stock Grant shall vest on each anniversary of the grant date beginning on the second anniversary
thereof, provided that you continue to be actively employed by the Company on such anniversary. 

        (g)    Terms of Options and Restricted Stock.    The Initial Option Grant I, the Initial
Option Grant II, the Premium Options Grant I and the Premium Options Grant II (collectively herein referred to as the "Options") and the Restricted
Stock Grant shall be subject to and governed by the terms and conditions of the Company's 2003 Equity Incentive Plan (the "Equity Plan", a copy of which
has been provided to you) and shall be evidenced by a separate stock option grant agreement or restricted stock grant agreement, as the case may be. All Options that have not become exercisable on or
before the Termination Date shall immediately terminate on the Termination Date. The Options which have become exercisable on or before the Termination Date shall expire on the earlier of (i) the
commencement of business on the date your employment is terminated for Cause; (ii) 90 days after the
date your employment is terminated for any reason other than Cause, retirement, death or Disability; (iii) one year after the date your employment is terminated by reason of death, retirement or
Disability; or (iv) the 10th anniversary of the grant date for such Option(s). 

        (h)    Employee Benefits.    During the Employment Period, you will be entitled to participate
in the Company's benefit package made generally available to senior executives of the Company. Currently, the Company's benefit package includes paid time off days, holidays, life
insurance, medical and dental insurance, a matching 401(k) tax deferred savings plan, tuition reimbursement, a health flexible spending account, and the
employee discount. The Company reserves the right to change these benefits at any time in its sole discretion, but notwithstanding any such change you
shall be entitled to not less than 25 paid time off days consisting of vacation, illness and personal days per year (prorated for partial years). 

        (i)    Business Expenses.    The Company shall promptly reimburse you for all reasonable
business expenses incurred by you in connection with the performance of the services for the Company upon the presentation of statements of such expenses in accordance with the Company's policies and
procedures now in force or as such policies and procedures may be modified with respect to all senior executive officers of the Company. 

4.    Additional Agreements; Confidentiality.  

        (a)    As additional consideration for the Company entering into this Agreement, you agree that for a
period of twelve months following the Termination Date, you shall not, directly or indirectly, (i) engage (either as owner, investor, partner, employer, employee, consultant or director) in or
otherwise perform services for any Competitive Business (as defined below) which operates within a 100 mile radius of the location of any store of the Company or its affiliates or in the same area as
the Company directs its mail order operations or any other area in which the Company or any of its subsidiaries conducts business or in which the Company or any of its subsidiaries' 

4

 

customers
are located as of the Termination Date, provided that the foregoing restriction shall not prohibit you from owning a passive investment of not more than 5% of the total outstanding
securities of any publicly-traded company, and (ii) solicit or cause another to solicit any customers or suppliers of the Company or any of its subsidiaries to terminate or otherwise adversely modify
their relationship with the Company or any such subsidiary. The term "Competitive Business" means any business in competition with the retail, mail
order and internet apparel and accessories business and any other material business the Company or its affiliates is engaged in on the Termination Date, but this provision shall not prohibit your
employment or other association with any entity where the Competitive Business conducted by such entity is not a material part of such entity and you do not perform services in respect of the part of
such entity that is a Competitive Business other than as Chief Financial Officer or other senior financial or accounting officer of the entire enterprise. 

        (b)    During the Employment Period and for a period of two years following the Termination Date, you shall not, directly or
indirectly, solicit, hire, or seek to influence the employment decisions of, any employee of the Company or any of its subsidiaries on behalf of any person or entity other than the Company. 

        (c)    You agree that during the Employment Period and thereafter you will hold in strict confidence any proprietary or
Confidential Information related to the Company or its affiliates. For purposes of this Agreement, the term "Confidential Information" shall mean all
information of the Company and its affiliates in whatever form which is not generally known to the public, including without limitation, customer lists, trade practices, marketing techniques, fit
specifications, design, pricing structures and practices, research, trade secrets, processes, systems, programs, methods, software, merchandising, distribution, planning, inventory and financial
control, store design and staffing. Upon termination of your employment, you shall not take, without the prior written consent of the Company, any drawing, specification or other document or computer
record (in whatever form) of the Company or its affiliates embodying any Confidential Information and will return any such information (in whatever form) then in your possession. 

        (d)    You also agree that breach of the provisions provided in this Paragraph 4 would cause the Company to suffer irreparable
harm for which money damages would not be an adequate remedy and therefore, if you breach any of the provisions in this Paragraph 4, the Company will be entitled to an injunction restraining you from
violating such provision without the posting of any bond. If the Company shall institute any action or proceeding to enforce the terms of any such provision, you hereby waive the claim or defense that
the Company has an adequate remedy at law and you agree not to assert in any such action or proceeding the claim or defense that the Company has an adequate remedy at law. The foregoing shall not
prejudice the Company's right to require you to account for and pay over to the Company, and you hereby agree to account for and pay over, the compensation, profits, monies, accruals and other
benefits derived or received by you as a result of any transaction constituting a breach of any of the provisions set forth in this Paragraph 4. 

5.    Representations.    The parties hereto hereby represent and warrant that they have the authority to enter into this Agreement
and perform their respective obligations hereunder. You hereby represent and warrant to the Company that (i) the execution and delivery of this Agreement and the performance of your duties hereunder
shall not constitute a breach of or otherwise violate any other agreements, arrangements or commitments with any other party to which you are a party or by which you are bound, and (ii) you will not
use or disclose any confidential and/or proprietary information or trade secrets obtained by you in connection with your former employments with respect to your duties and responsibilities hereunder. 

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6.    Miscellaneous.  

        (a)    Any notice or other communication required or permitted under this Agreement shall be effective
only if it is in writing and shall be deemed to be given when delivered personally or four days after it is mailed by registered or certified mail, postage prepaid, return receipt requested or one day
after it is sent by a reputable overnight courier service and, in each case, addressed as follows: 

If
to the Company: 

J.
Crew Group, Inc.

770 Broadway

Twelfth Floor

New York, NY 10003

Attention: General Counsel 

If
to you: 

To
the address on file with the Company 

or
to such other address as any party may designate by notice to the other. 

        (b)    This Agreement constitutes the entire agreement between you and the Company with respect to your employment by the
Company, and supersedes and is in full substitution for any and all prior understandings or agreements with respect to your employment. 

        (c)    This Agreement shall inure to the benefit of and be an obligation of the Company's assigns and successors; however you
may not assign any of your rights or duties hereunder to any other party. 

        (d)    No provision of this Agreement may be amended or waived, unless such amendment or waiver is specifically agreed to in
writing and signed by you and an officer of the Company duly authorized to execute such amendment. The failure by either you or the Company at any time to require the performance by the other of any
provision hereof shall in no way affect the full right to require such performance at any time thereafter, nor shall the waiver by you or the Company of a breach of any provision hereof be taken or
held to be a waiver of any succeeding breach of such provision or a waiver of the provision itself or a waiver of any other provision of this Agreement. 

        (e)    You and the Company acknowledge and agree that each of you has reviewed and negotiated the terms and provisions of this
Agreement and has had the opportunity to contribute to its revision. Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party shall not be employed
in the interpretation of this Agreement. Rather, the terms of this Agreement shall be construed fairly as to both parties and not in favor or against either party. 

        (f)    Any provision of this Agreement (or portion thereof) which is deemed invalid, illegal or unenforceable in any
jurisdiction shall, as to that jurisdiction and subject to this Paragraph, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining
provisions thereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed
invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render
the modified covenant valid, legal and enforceable. 

        (g)    The Company may withhold from any amounts payable to you hereunder all federal, state, city or other taxes that the
Company may reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood, that you shall be responsible for payment of all taxes in respect of the
payments and benefits provided herein). 

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        (h)    This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument. 

        (i)    The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or
affect the meaning of any provision hereof. 

        (j)    This Agreement and all amendments thereof shall, in all respects, be governed by and construed and enforced in accordance
with the internal laws (without regard to principles of conflicts of law) of the State of New York. Each party hereto hereby agrees to and accepts the exclusive jurisdiction of any court in New York
County or the U.S. District Court for the Southern District of New York in respect of any action or proceeding relating to the subject matter hereof, expressly waiving any defense relating to
jurisdiction or forum non conveniens, and consents to service of process by U.S. certified or registered mail in any action or proceeding with respect
to this Agreement. 

        (k)    The Company will reimburse you for reasonable legal fees incurred in connection with the negotiation of this Agreement,
not to exceed $4,500. 

        If
the terms of this Agreement meet with your approval, please sign and return one copy to me. 

	 	Sincerely,
	

 	

_________________________________

Lynda Markoe

Vice President, Human Resources

	AGREED TO AND ACCEPTED:
	

_________________________________

Amanda Bokman
	

Date: _____________________, 2004

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Exhibit 4.3    
    

 
 

FORM OF RESTRICTED STOCK AGREEMENT    
    

        THIS RESTRICTED STOCK AGREEMENT (this "Agreement") is made and entered into as of the 5th day of
April, 2004 by and between Midway Games Inc., a Delaware corporation, having its principal executive offices at 2704 West Roscoe Street, Chicago, Illinois 60618 (the "Corporation") and  [name]
residing at [address] ("Employee"). 

 
 

W I T N E S S E T H:    
    

        WHEREAS, Employee, who has not previously been employed by the Corporation or its subsidiaries, is accepting an
offer of employment to serve the Corporation as an employee at the Corporation's wholly-owned subsidiary; and 

        WHEREAS, simultaneously herewith Employee and Surreal Software Inc. are entering into an Employment Agreement (the "Employment
Agreement") that, among other matters, requires the Corporation to award the restricted stock provided for in this Agreement. 

        NOW, THEREFORE, in consideration of the foregoing, and the mutual agreements herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, as a material inducement to Employee's entering into the Employment Agreement the Corporation is hereby granting to Employee shares of the
Corporation's common stock, $.01 par value ("Common Stock"), on the terms and conditions, and subject to the restrictions, herein set forth: 

        Section 1.
Definitions. 

        As
used in this Agreement, the following terms shall have the following meanings: 

        A.
"Date of Award" means April 5, 2004. 

        B.
"Period of Restriction" means, with respect to Restricted Shares, the period of time between the Date of Award and the date of vesting as set forth in Section 4 hereof. 

        C.
"Restricted Shares" means the number of shares of the Corporation's Common Stock being granted pursuant to Section 2 hereof, as well as any additional shares of Common Stock or
other securities that may be issued pursuant to Section 10 hereof. 

        Section 2.  Award. Effective as of the Date of Award, the Corporation awards to Employee an aggregate of  [shares] Restricted Shares subject to the terms of this Agreement, including, without limitation, the forfeiture provisions set
forth in Section 3 hereof and the limitations on transfer set forth in Section 5 hereof. 

        Section 3.
Forfeiture of Shares upon Termination of Employment during Period of Restriction. If the services of Employee to the
Corporation shall be terminated during the Period of Restriction for any reason other than a termination by the Corporation without cause (as such term is defined in the Employment Agreement) or other
than a termination by the Employee for good reason (as such term is defined in the Employment Agreement), Employee shall immediately forfeit to the Corporation all Restricted Shares that have not
previously vested as provided in Section 4 hereof, without any consideration paid to Employee, and, thereafter, Employee shall have no further rights with respect to such Restricted Shares. 

        Section 4.
Lapse of the Period of Restriction. The Period of Restriction shall lapse, and the forfeiture provisions of
Section 3 hereof shall no longer be applicable as to Restricted Shares held by or on behalf of Employee according to the following schedule, if Employee shall have been continuously employed by
the Corporation from the Date of Award through the date of such lapse: as to forty percent (40%) of the Restricted Shares, on or after the date which is eight months after the Date of Award; as to
twenty percent (20%) of the Restricted Shares, on or after the date which is fourteen months after the Date of Award; as to twenty percent (20%) of the Restricted Shares, on or after the 

 

date
which is twenty-six months after the Date of Award; as to the remaining twenty percent (20%) of the Restricted Shares, on or after the date which is thirty-five months
after the Date of Award. If any installment includes a fraction of a share, the Period of Restriction with respect to such fraction shall not then lapse, and the fraction shall be carried forward and
added to subsequent installments. If earlier, the Period of Restriction will lapse with respect to Restricted Shares then held by Employee upon the termination by the Corporation of Employee's
services to the Corporation without cause (as such term is defined in the Employment Agreement) or upon the termination by the Employee of his services to the Corporation for good reason (as such term
is defined in the Employment Agreement). 

        Section 5.
Limitations on Transfer during Period of Restriction. Restricted Shares may not be sold, assigned, transferred,
exchanged, pledged, hypothecated, or otherwise encumbered during the Period of Restriction, and no such sale, assignment, transfer, exchange, pledge, hypothecation, or encumbrance, whether made or
created by voluntary act of Employee or of any agent of Employee or by operation of law, shall be recognized by, or be binding upon, or shall in any manner affect the rights of, the Corporation or any
agent or any custodian holding certificates for such Restricted Shares during the Period of Restriction. 

        Section 6.
Stockholder Rights during Period of Restriction. Unless and until the Restricted Shares are forfeited as set forth in
Section 3 hereof, Employee shall have all of the rights of a stockholder of the Corporation with respect to Restricted Shares, including the right to vote and to receive dividends on the
Restricted Shares, during the Period of Restriction. 

        Section 7.
Registration Rights. The Corporation shall promptly prepare and file a registration statement under the
Securities Act of 1933, as amended (the "Act") with respect to the resale of the Restricted Shares and shall cause such registration statement to become effective as promptly as practical and shall
cause such registration statement to remain in effect (together with a resale prospectus at all times meeting the requirements of the Act) until such registration statement is no longer required for
Employee to publicly offer and sell the Restricted Shares. 

        Section 8.  Restricted Shares as Investment. Employee agrees that all Restricted Shares awarded hereunder are being acquired in
good
faith for investment purposes only and not for sale or distribution, except pursuant to a registration statement or an applicable exemption from registration under the Act. The Corporation may place a
"stop transfer" order with respect to the Restricted Shares with its transfer agent unless the Restricted Shares are registered under the Act. 

        Section 9.
Legend. Each certificate evidencing the Restricted Shares shall bear a legend referring to this Agreement and to the
fact that such Restricted Shares are subject to the forfeiture provisions of Section 3 hereof during the Period of Restriction. The Corporation shall cause certificates without such legend to
be issued for any of the Restricted Shares as and when the Period of Restriction lapses. Each
certificate may also bear a restrictive legend, in the discretion of the Corporation, until registered. The form of such legends shall be as follows: 

        THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN A RESTRICTED STOCK AGREEMENT BETWEEN THE CORPORATION AND THE REGISTERED HOLDER, OR HIS OR HER
PREDECESSOR IN INTEREST. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE CORPORATION AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION BY THE HOLDER OF
RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE. 

        THE
SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND MAY NOT BE
SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION OR 

2

 

QUALIFICATION
THEREOF UNDER SUCH ACT AND SUCH APPLICABLE STATE OR OTHER JURISDICTION'S SECURITIES LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION
AND QUALIFICATION IS NOT REQUIRED. 

        Employee
agrees to deliver to the Corporation for cancellation, upon request of the Corporation, any certificate representing Restricted Shares that have been forfeited. 

        Section 10.
Adjustment in Certain Events. If there is any change in the Common Stock by reason of stock dividends,
split-ups, mergers, consolidations, reorganizations, combinations or exchanges of shares or the like, each Restricted Share under this Agreement shall be adjusted in the same manner as any
other share of the Common Stock and the provisions of this Agreement shall extend not only to the number of Restricted Shares awarded hereunder, but also to all additional shares of Common Stock or
other securities received by Employee pursuant to any such change with respect to the Restricted Shares granted hereunder, which additional shares of Common Stock or other securities shall be deemed
to be Restricted Shares for purposes of this Agreement. 

        Section 11.
Enforceability. Should a court of competent jurisdiction deem any of the provisions in this Agreement to be
unenforceable in any respect, it is the intention of the parties to this Agreement that this Agreement be enforced to the greatest extent deemed to be enforceable. 

        Section 12.
Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the
State of Illinois, without giving effect to any conflicts of law rule or principle that might require the application of the laws of another jurisdiction. 

        Section 13.
Withholding. The Corporation may withhold, and establish from time to time appropriate procedures to provide for
payment or withholding of, such income or other taxes as may be required by law to be paid or withheld in connection with the Restricted Shares. Employee shall comply with any procedures established
from time to time by the Corporation to ensure that the Corporation receives prompt notice of the occurrence of any event which may create, or affect the timing or amount of, any obligation to pay or
withhold any such taxes or which may make available to the Corporation any tax deduction resulting from the occurrence of such event. 

        Section 14.
Section 83(b) Tax Election. Employee understands that he may elect to be taxed at the time the Restricted Shares
are acquired rather than when such shares cease to be subject to forfeiture restrictions by filing an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code"),
with the Internal Revenue Service within thirty (30) days after the Date of Award. A form for making this election is attached as Exhibit 1 hereto. Employee understands that the failure
to make this filing within the thirty (30) day period will result in the recognition of ordinary income by Employee as the forfeiture restrictions on the Restricted Shares lapse measured by the
value of the Restricted Shares at that time. Employee agrees that he is relying on his own tax advisors and is not relying on the Corporation with respect to any election that he may make under
Section 83(b) of the Code. 

        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day first written above. 

	

 	
 	
MIDWAY GAMES INC.
	

 	
 	

By:	
 	

 Name:

Title:
	
AGREED AND ACCEPTED:	
 	

 	
 	

 
	By:

        
	 	 	 	 
	[name]	 	 	 	 

3

  

 
 

EXHIBIT 1    
    

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE  

        The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies
the following information in accordance with the regulations promulgated thereunder: 

	1.
	The
name, address and social security number of the undersigned: 

	

 	

Name:	

	

 

	

 	

Address:	
 	

	

 
	

 	

	

 

	 	Social Security No.	 	
	 

	2.
	Description
of property with respect to which the election is being made: 

                            shares of common stock, par value $.01 per share, of Midway
Games Inc., a Delaware corporation, (the "Company"). 

	3.
	The
date on which the property was transferred is                            , 20    .

	4.
	The
taxable year to which this election relates is calendar year 2004.

	5.
	Nature
of restrictions to which the property is subject: 

        The
shares of stock are subject to the provisions of a Restricted Stock Agreement between the undersigned and the Company. The shares of stock are subject to forfeiture under the terms
of the Agreement. 

	6.
	The
fair market value of the property at the time of transfer (determined without regard to any lapse restriction) was
$                        per share, for a total of
$                        .

	7.
	The
amount paid by taxpayer for the property was $                        .

	8.
	A
copy of this statement has been furnished to the Company. 

        Dated:                        ,
2004 

	

 	
 	

 Taxpayer's Signature
	

 	
 	

 Taxpayer's Printed Name

4

 
 
 

PROCEDURES FOR MAKING ELECTION
  UNDER INTERNAL REVENUE CODE SECTION 83(b)    
    

        The following procedures must be followed with respect to the attached form for making an election under Internal Revenue Code section 83(b) in order for
the election to be effective: 

        A.    You
must file one copy of the completed election form with the IRS Service Center where you file your federal income tax returns within 30 days after the Date of
Award of your Restricted Stock. 

        B.    At
the same time you file the election form with the IRS, you must also give a copy of the election form to the Secretary of the Company. 

        C.    You must file another copy of the election form with your federal income tax return (generally, Form 1040) for the taxable year in which
the stock is transferred to you.

5

QuickLinks

Exhibit 4.3

FORM OF RESTRICTED STOCK AGREEMENT

W I T N E S S E T H

EXHIBIT 1

PROCEDURES FOR MAKING ELECTION UNDER INTERNAL REVENUE CODE SECTION 83(b)

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