Document:

Bylaws of the Registrant, as amended

 Exhibit 4.2 
  
 BY LAWS 
  
 OF 
  
 HUNGARIAN TELEPHONE AND CABLE CORP. 
  
 (as
amended as of May 22, 2003) 
  
 ARTICLE 1

  
 OFFICES 
  
 SECTION 1. REGISTERED OFFICE. The registered office shall be established and
maintained at the office of XL Corporate Services, Inc., 15 East North Street, in the City of Dover, in the County of Kent, and in the State of Delaware 19901, and said corporation shall be the registered agent of this corporation in charge thereof.

  
 SECTION 2. OTHER OFFICES. The corporation may have other
offices, either within or without the State of Delaware, at such place or places as the Board of Directors may from time to time appoint or the business of the corporation may require. 
  
 ARTICLE II 
  
 SHAREHOLDERS 
  

	1.	Place of Meetings 

  
 Meetings of shareholders shall be held at the principal place of the Corporation, or at such other places within or without the State of New York as the
Board shall authorize. 
  

	2.	Annual Meetings 

  
 The annual meeting of the shareholders of the Corporation shall be held at 2:00 p.m. on the last Tuesday of the fifth month in each year after the close
of the fiscal year of the Corporation, if such date is not a legal holiday and if a legal holiday, then on the next business day following at the same hour, at which time the shareholders shall elect a Board of Directors, and transact such other
business as may properly come before the meeting. 
  

	3.	Special Meetings 

  
 Special meetings of the shareholders may be called at any time by the Board or by the President, and shall be called by the President or the Secretary at
the Written request of the holders of ten percent (10%) of the outstanding shares entitled to vote there at, or as otherwise required by law. 

	4.	Notice of Meetings 

  
 Written notice of each meeting of shareholders, whether annual or special, stating the time when and place where it is to be held, shall be served not
less than ten nor more than fifty days before the meeting, upon each shareholder of record entitled to vote at such meeting, and to any other shareholder to whom the giving of notice may be required by law. Notice of a special meeting shall also
state the purpose or purposes for which the meeting is called, and shall indicate that it is being issued by the person calling the meeting. If, at any meeting action is proposed to be taken that would, if taken, entitle shareholders to receive
payment for their shares, the notice of such meeting shall include a statement of the purpose and to that effect. If mailed, such notice shall be directed to each such shareholder at his address, as it appears on the records of the shareholders of
the Corporation, unless he shall have previously filed with the Secretary of the Corporation a written request that notices intended for him be mailed to some other address, in which event, it shall be mailed to the address designated in such
request. 
  

	5.	Waiver 

  
 Notice of any meeting need not be given to any shareholder who submits a signed waiver of notice either before or after a meeting. The attendance of any
shareholder at a meeting, in person or by proxy, shall constitute a waiver of notice by such shareholder. 
  

	6.	Fixing Record Date 

  
 For the purpose of determining the shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or to express
consent to or dissent from any proposal without a meeting, or for the purpose of determining shareholders entitled to receive payment of any dividend or the allotment of any rights, or for the purpose of any other action, the Board shall fix, in
advance, a date as the record date for any such determination of shareholders. Such date shall not be more than fifty nor less than ten days before the date of such meeting, nor more than fifty days prior to any other action. If no record date is
fixed it shall be determined in accordance with the provisions of law. 
  

	7.	Quorum 

  
 (a) Except as otherwise provided by the Certificate of Incorporation, at all meetings of the shareholders of the Corporation, the presence at the
commencement of such meetings, in person or by proxy, of shareholders holding a majority of the total number of shares of the Corporation then issued and outstanding on the records of the Corporation and entitled to vote, shall be necessary and
sufficient to constitute a quorum for the transaction of any business. If a specified item of business is required to be voted on by a class or classes, the holder of a majority of the shares of such class or classes shall constitute a quorum for
the transaction of such specified item of business. The withdrawal of any shareholder after the commencement of a meeting shall have no effect on the existence of a quorum, after a quorum has been established at such meeting. 
  

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 (b) Despite the absence of a quorum at any annual or special meeting of shareholders, the shareholders,
by a majority of the votes cast by the holders of shares entitled to vote thereon, may adjourn the meeting. 
  

	8.	Voting 

  
 (a) Except as otherwise provided by statute or by the Certificate of Incorporation, 
  
 (1) directors shall be elected by a plurality of the votes cast; 
  
 (2) all other corporate action to be taken by vote of the
shareholders, shall be authorized by a majority of votes cast; 
  
 at a meeting of
shareholders by the holders of shares entitled to vote thereon. 
  
 (b) Except as otherwise provided by statute or by the Certificate of Incorporation, at each meeting of shareholders, each holder of record of shares of the Corporation entitled to vote, shall be entitled to one vote for each share of stock
registered in his name on the books of the Corporation. 
  
 (c)
Each shareholder entitled to vote or to express consent or dissent without a meeting, may do so by proxy; provided, however, that the instrument authorizing such proxy to act shall have been executed in writing by the shareholder himself, or by his
attorney-in-fact duly authorized in writing. No proxy shall be valid after the expiration of eleven months from the date of its execution, unless the proxy shall specify the length of time it is to continue in force. The proxy shall be delivered to
the Secretary at the meeting and shall be filed with the records of the Corporation. Every proxy shall be revocable at the pleasure of the shareholder executing it, except as otherwise provided by law. 
  
 (d) Any action that may be taken by vote may be taken without a meeting on
written consent. Such action shall constitute action by such shareholders with the same force and effect as if the same had been approved at a duly called meeting of shareholders and evidence of such approval signed by all of the shareholders shall
be inserted in the Minute Book of the Corporation. 
  
 ARTICLE III 
  
 BOARD OF
DIRECTORS 
  

	1.	Number 

  
 The Board of Directors shall by resolution fix the number of directors of the Corporation from time to time which number shall be not less than three (3)
nor more than nine (9). 
  

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	2.	Election 

  
 Except as may otherwise be provided herein or in the Certificate of Incorporation, the members of the Board need not be shareholders and shall be elected
by a majority of the votes cast at a meeting of shareholders, by the holders of shares entitled to vote in the election. 
  

	3.	Term of Office 

  
 Each director shall hold office until the annual meeting of the shareholders next succeeding his election, and until his successor is elected and
qualified, or until his prior death, resignation or removal. 
  

	4.	Duties and Powers 

  
 The Board shall be responsible for the control and management of the affairs, property and interests of the Corporation, except those powers expressly
conferred upon or reserved to the shareholders. 
  

	5.	Annual 

  
 Regular annual meetings of the Board shall be held immediately following the annual meeting of shareholders. 
  

	6.	Regular Meetings and Notice 

  
 The Board may provide by resolution for the holding of regular meetings of the Board of Directors, and may fix the time and place thereof. 
  
 Notice of regular meetings shall not be required to be given and if given,
need not specify the purpose of the meeting; provided, however, that in the case that the Board shall fix or change the time or place of any regular meeting, notice of such action be given to each director who shall not have been present at the
meeting at which such action was taken within the time limited, and in the manner set forth at Section 7 of this Article III, unless such notice shall be waived. 
  

	7.	Special Meetings and Notices 

  
 (a) Special meetings of the Board shall be held whenever called by the President or by one of the directors, at such time and place as may be specified in
the respective notices or waivers of notice thereof. 
  
 (b)
Notice of special meetings shall be mailed directly to each director, addressed to him for such purpose or at his usual place of business, at least two (2) business days before the day on which the meeting is to be held, or delivered to him
personally or given to him orally, not later than the business day before the day on which the meeting is to be held. 
  

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 (c) Notice of a special meeting shall not be required to be given to any director who shall attend such
meeting, or who submits a signed waiver of notice. 
  

	8.	Chairman 

  
 At all meetings of the Board, the Chairman, if present, shall preside. If there is no Chairman, or he shall be absent, then the President shall preside.
In his absence, the Chairman shall be chosen by the Directors present. 
  

	9.	Quorum and Adjournment 

  
 (a) At all meetings of the Board, the presence of a majority of the entire Board shall be necessary to constitute a quorum for the transaction of
business, except as otherwise provided by law, by the Certificate of Incorporation or by these By-Laws. Participation of any one or more members of the Board by means of a conference telephone or similar communications equipment, allowing all
persons participating in the meeting to hear each other at the same time, shall constitute presence in person at such meeting. 
  
 (b) A majority of the directors present at any regular meeting or special meeting, although less than a quorum, may adjourn the same from time to time,
without notice, until a quorum shall be present. 
  

	10.	Manner of Acting 

  
 (a) At all meetings of the Board, each director present shall have one vote. 
  
 (b) Except as otherwise provided by law, by the Certificate of Incorporation, or by these By-Laws, the action of the
directors present at any meeting at which a quorum is present shall be the act of the Board. Any action authorized, in writing, by all of the directors entitled to vote thereon and filed with minutes of the Corporation shall be the act of the Board
with the same force and effect as if the same had been passed by unanimous vote at a duly called meeting of the Board. 
  

	11.	Vacancies 

  
 Any vacancy in the Board of Directors resulting from an increase in the number of directors, or the death, resignation, disqualification, removal or
inability to act of any director, shall be filled for the unexpired portion of the term by a majority of the remaining directors, though less than a quorum, at any regular meeting or special meeting of the Board called for the purpose. 

 

	12.	Resignation 

  
 Any director may resign at any time by giving written notice to the Board, the President or the Secretary of the Corporation. Unless otherwise specified
in such written notice, such resignation shall take effect upon the receipt thereof by the Board or such officer, and the acceptance of such resignation shall not be necessary to make it effective. 
  

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	13.	Removal 

  
 Any director may be removed, with or without cause, at any time by the shareholders, at a special meeting of the shareholders called for that purpose and
may be removed for cause by action of the Board. 
  

	14.	Compensation 

  
 The directors shall be eligible to participate in the 1992 Incentive Stock Plan, as amended, and any other compensation plan that may be adopted by the
Company from time to time. In addition, the directors, by a resolution of the Board, may receive a fixed sum and expenses for attendance at each regular or special meeting of the Board. Nothing herein contained shall be construed to preclude any
director from serving the Corporation in any other capacity and receiving compensation therefor. 
  

	15.	Contracts 

  
 (a) No contract or other transaction between this Corporation and any other business shall be affected or invalidated nor shall any director be liable in
any way by reason of the fact that a director of this Corporation is interested in, or is a director, officer, or is financially interested in such other business, provided such fact is disclosed to the Board. 
  
 (b) Any director may be a party to or may be interested in any contract or
transaction of this Corporation individually and no director shall be liable in any way by reason of such interest, provided that the fact of such participation or interest be disclosed to the Board and provided that the Board shall authorize or
ratify such contract or transaction by the vote (not counting the vote of any such director) of a majority of a quorum, notwithstanding the presence of any such director at the meeting at which such action is taken. Such director may be counted in
determining the presence of a quorum at such meeting. This Section shall not be construed to invalidate or in any way affect any contract or other transaction which would otherwise be valid under the law applicable thereto. 
  

	16.	Committees 

  
 The Board, by resolution adopted by a majority of the entire Board, may, from time to time, designate from among its members an executive committee and
such other committees and alternate members thereof as they may deem desirable, each consisting of three or more members, with such powers and authority (to the extent permitted by law) as may be provided in such resolution. Each such committee
shall remain in existence at the pleasure of the Board. Participation of any one or more members of a committee by means of a conference telephone or similar means of communication equipment allowing all persons participating in the meeting to hear
each other at the same time, shall constitute a director’s presence in person at any such meeting. Any action authorized in writing by all of the members of a committee and filed with the minutes of the committee shall be the act of the
committee with the same force and effect as if the same had been passed by unanimous vote at a duly called meeting of the committee. 
  

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 ARTICLE IV 
  
 OFFICES 
  

	1.	Number and Qualifications 

  
 The officers of the corporation consist of a President, one or more Vice Presidents, a Secretary, a Treasurer, and such other officers, including a
Chairman of the Board, as the Board of Directors, may from time to time, deem advisable. Any officer other than the Chairman of the Board may be, but is not required to be, a director of the Corporation. Any two or more offices may be held by the
same person, except the offices of President and Secretary. 
  

	2.	Election 

  
 The Officers of the Corporation shall be elected by the Board at the regular annual meeting of the Board following the annual meeting of shareholders.

  

	3.	Term of Office 

  
 Each officer shall hold office until the annual meeting of the Board next succeeding his election, and until his successor shall have been elected and
qualified, or until his death, resignation or removal. 
  

	4.	Resignation 

  
 Any officer may resign at any time by giving written notice thereof to the Board, the President or the Secretary of the Corporation. Such resignation
shall take effect upon receipt thereof by the Board or by such officer, unless otherwise specified in such written notice. The acceptance of such resignation shall not be necessary to make it effective. 
  

	5.	Removal 

  
 Any officer, whether elected or appointed by the Board, may be removed by the Board, either with or without cause, and a successor elected by the Board at
any time. 
  

	6.	Vacancies 

  
 A vacancy in any office by reason of death, resignation, inability to act, disqualification, or any other cause, may at any time be filled for the
unexpired portion of the term by the Board. 
  

	7.	Duties 

  
 Unless otherwise specified by the Board, Officers of the Corporation shall each have such powers and duties as generally pertain to their respective
offices, such powers and duties as may be set forth in these By-Laws, and such powers and duties as may be specifically provided for by the Board. The President shall be the chief executive officer of the Corporation. 
  

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	8.	Sureties & Bonds 

  
 At the request of the Board, any Officer, employee or agent of the Corporation shall execute for the Corporation, a bond in sum, and with such surety as
the Board may direct, conditioned upon the faithful performance of his duties to the Corporation, including, responsibility for negligence and for the accounting for all property, funds or securities of the Corporation which may come into his hands.

  

	9.	Shares of Other Corporations 

  
 Whenever the Corporation is the holder of shares of any other Corporation, any right or power of the Corporation as such shareholder shall be exercised on
behalf of the Corporation in such manner as the Board may authorize. 
  
 ARTICLE V 
  
 SHARES OF STOCK

  

	1.	Certificates 

  
 (a) The certificates representing shares in the Corporation shall be in such form as shall be approved by the Board and shall be numbered and registered
in the order issued. They shall bear the holder’s name and the number of shares, and shall be signed by (i) the Chairman of the Board or the President or a Vice President, and (ii) the Secretary or Treasurer, or any Assistant Secretary or
Assistant Treasurer, and shall bear the corporate seal. 
  
 (b)
Certificate representing shares shall not be issued until they are fully paid for. 
  
 (c) The Board may authorize the issuance of certificates for fractions of a share which shall entitle the holder to exercise voting rights, receive dividends and participate in liquidating distributions, in proportion
to the fractional holdings. 
  

	2.	Lost or Destroyed Certificates 

  
 Upon notification by the holder of any certificate representing shares of the Corporation of the loss or destruction of one or more certificates
representing the same, the Corporation may issue new certificates in place of any certificates previously issued by it, and alleged to have been lost or destroyed. Upon production of evidence of loss or destruction, in such form as the Board in its
sole discretion may require, the Board may require the owner of the lost or destroyed certificates to provide the Corporation with a bond in which sum as the Board may direct, and with such surety as may be satisfactory to the Board, to indemnify
the Corporation against any claims, loss, liability or damage it may suffer on account of the issuance of the new certificate. A new certificate may be issued without requiring any such evidence or bond when, in judgment of the Board, it is proper
to do so. 
  

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	3.	Transfer of Shares 

  
 (a) Transfers of shares of the Corporation may be made on the share records of the Corporation solely by the holder of such records, in person or by a
duly authorized attorney, upon surrender for cancellation of the certificates representing such shares, with an assignment or power of transfer endorsed thereon or delivered therewith, duly executed and with such proof of the authenticity of the
signature, and the authority to transfer and the payment of transfer taxes as the Corporation or its agents may require. 
  
 (b) The Corporation shall be entitled to treat the holder of record of any shares as the absolute owner thereof for all purposes and shall not be bound to
recognize any legal equitable or other claim to, or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise expressly provided by law. 
  

	4.	Record Date 

  
 In lieu of closing the share records of the Corporation, the Board may fix, in advance, a date not less than ten days and not more than fifty days, as the
record date for the determination of shareholders entitled to receive notice of, and to vote at, any meeting of shareholders entitled to receive payment of any dividends, or allotment of any rights, or for the purpose of any other action. If no
record date is fixed, the record date for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders shall be at the close of business of the day immediately preceding the day on which notice is given, or, if no
notice is given, the day on which the meeting is held; the record date for determining shareholders for any other purpose shall be at the close of business on the day on which the resolution of the directors relating thereto is adopted. When a
determination of shareholders of record entitled to notice of or to vote at any meeting of shareholders has been made as provided for herein, such determination shall apply to any adjournment thereof, unless the directors fix a new record date for
the adjourned meeting. 
  
 ARTICLE VI 
  
 DIVIDENDS 
  
 Subject to this Certificate of Incorporation, and to applicable law,
dividends may be declared and paid out of any funds available therefore, as often, in such amount, and at such time or times as the Board may determine. Before payment of any dividend, there may be set aside out of the net profits of the Corporation
available for dividends, such sum or sums as the Board, from time to time, in its sole discretion, or for repairing or maintaining any property of the Corporation, or for such other purpose as the Board shall think conducive to the interests of the
Corporation, and the Board may modify or abolish any such reserve. 
  

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 ARTICLE VII 
  
 FISCAL YEAR 
  
 The fiscal year of the Corporation shall be fixed by the Board from time to time, subject to applicable law. 
  
 ARTICLE VIII 
  
 CORPORATE SEAL 
  
 The corporate seal, if any, shall be in such form as shall be approved from
time to time by the Board. 
  
 ARTICLE IX 

 
 AMENDMENTS 
  

	1.	By Shareholders 

  
 All By-Laws of the Corporation shall be subject to revision, amendment or repeal, and new By-Laws may be adopted from time to time, by a majority vote of
the shareholders who are at such time entitled to vote in the election of directors. 
  

	2.	By Directors 

  
 The Board shall have power to make, adopt, alter, amend and repeal, from time to time, By-Laws of the Corporation, provided, however, that the
shareholders entitled to vote with respect thereto as provided for by Section 1 of this Article IX may alter amend or repeal the By-Laws as made by the Board. The Board shall have no power to change the quorum for meetings with respect to the
removal of directors or the filling of vacancies in the Board resulting from the removal of one or more directors by the shareholders. If any By-Law regulating an impending election of directors is adopted, amended or repealed by the Board, there
shall be set forth in this notice of the next annual meeting of shareholders for the election of directors, the By-Law so adopted, amended or repealed, together with a concise statement of the change made. 
  
 ARTICLE X 
  
 INDEMNIFICATION 
  

	1.	Right to Indemnification of Directors and Officers 

  
 The Corporation shall indemnify and hold harmless, to the fullest extent permitted by applicable law as it presently exists or may hereafter be amended,
any person (a “Covered Person”) who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “proceeding”), by
reason of the fact that such person, or a person for whom such person is the legal representative, is or was a director or officer of the Corporation or, while a director or 
  

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 officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee or agent
of another corporation or of a partnership, joint venture, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including attorneys’ fees)
reasonably incurred by such Covered Person in such proceeding. Notwithstanding the preceding sentence, except as otherwise provided in Section 3 of Article X, the Corporation shall be required to indemnify a Covered Person in connection with a
proceeding (or part thereof) commenced by such Covered Person only if the commencement of such proceeding (or part thereof) by the Covered Person was authorized in advance by the Board of Directors. 
  

	2.	Prepayment of Expenses of Directors and Officers 

  
 The Corporation shall pay the expenses (including attorneys’ fees) incurred by a Covered Person in defending any proceeding in advance of its final
disposition, provided, however, that, to the extent required by law, such payment of expenses in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by the Covered Person to repay all amounts advanced
if it should be ultimately determined that the Covered Person is not entitled to be indemnified under this Article X or otherwise. 
  

	3.	Claims by Directors and Officers 

  
 If a claim for indemnification or advancement of expenses under this Article X is not paid in full within thirty days after a written claim therefor by
the Covered Person has been received by the Corporation, the Covered Person may file suit to recover the unpaid amount of such claim and, if successful in whole or in part, shall be entitled to be paid the expense of prosecuting such claim. In any
such action the Corporation shall have the burden of proving that the Covered Person is not entitled to the requested indemnification or advancement of expenses under applicable law. 
  

	4.	Advancement of Expenses of Employees and Agents 

  
 The Corporation may pay the expenses (including attorney’s fees) incurred by an employee or agent in defending any proceeding in advance of its final
disposition on such terms and conditions as may be determined by the Board of Directors. 
  

	5.	Non-Exclusivity of Rights 

  
 The rights conferred on any person by this Article X shall not be exclusive of any other rights which such person may have or hereafter acquire under any
statute, provision of the certificate of incorporation, these by-laws, agreement, vote of stockholders or disinterested directors or otherwise. 
  

	6.	Other Indemnification 

  
 The Corporation’s obligation, if any, to indemnify any person who was or is serving at its request as a director, officer or employee of another
corporation, partnership, joint venture, trust, organization or other enterprise shall be reduced by any amount such person may 
  

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 collect as indemnification from such other corporation, partnership, joint venture, trust, organization or other
enterprise. 
  

	7.	Insurance 

  
 The Board of Directors may, to the full extent permitted by applicable law as it presently exists, or may hereafter be amended from time to time,
authorize an appropriate officer or officers to purchase and maintain at the Corporation’s expense insurance: (a) to indemnify the Corporation for any obligation which it incurs as a result of the indemnification of directors, officers and
employees under the provisions of this Article X; and (b) to indemnify or insure directors, officers and employees against liability in instances in which they may not otherwise be indemnified by the Corporation under the provisions of this Article
X. 
  

	8.	Amendment or Repeal 

  
 Any repeal or modification of the foregoing provisions of this Article X shall not adversely affect any right or protection hereunder of any person in
respect of any act or omission occurring prior to the time of such repeal or modification. The rights provided hereunder shall inure to the benefit of any Covered Person and such person’s heirs, executors and administrators. 
  

 -12-Waiver and Amendment Agreement btwn. the Registrant and GMAC Commercial Finance

 Exhibit 10.48 
  
 WAIVER AND AMENDMENT AGREEMENT 
  
 THIS WAIVER AND AMENDMENT AGREEMENT (this “Waiver and Amendment”) is entered into this 4th day of May, 2004 by and among ACCLAIM ENTERTAINMENT, INC. (“AEI”), ACCLAIM DISTRIBUTION INC. (“ADI”), LJN
TOYS, LTD. (“LJN”), ACCLAIM ENTERTAINMENT CANADA, LTD. (“Canada”) and ARENA ENTERTAINMENT INC. (“Arena”; together with AEI, ADI, LJN and Canada, individually, a “Borrower” and collectively, the
“Borrowers”), OYSTER BAY WAREHOUSE CORP. (“Warehouse”), ACCLAIM CORPORATE CENTER 1, INC. (“Corporate”), IGUANA ENTERTAINMENT, INC. (“Iguana”), ACCLAIM ENTERTAINMENT, LTD. (“Acclaim Limited”), ACCLAIM
JAPAN, LTD. (“Acclaim Japan”), ACCLAIM ENTERTAINMENT, G.m.b.H. (“Acclaim Germany”), ACCLAIM ENTERTAINMENT, S.A. (“Acclaim France”) and ANNODEUS INC. (“Annodeus”; and together with Warehouse, Corporate, Iguana,
Acclaim Limited, Acclaim Japan, Acclaim Germany, and Acclaim France, each individually, a “Corporate Guarantor” and collectively, the “Corporate Guarantors”), and GMAC COMMERCIAL FINANCE LLC, as successor by merger to GMAC
COMMERCIAL CREDIT LLC, formerly known as BNY Factoring LLC, and successor by merger to BNY Financial Corporation (“Lender”). 
  
  
 BACKGROUND 
  
 Reference is made to the Revolving Credit and Security Agreement, dated as of
January 1, 1993, by and among Borrowers and Lender, as amended and restated on February 28, 1995 (as so amended and as the same may now exist or may hereafter be amended, restated, renewed, replaced, extended, substituted, supplemented or otherwise
modified, the “Credit Agreement”); the Restated and Amended Factoring Agreement bearing the effective date as of February 1, 1995 (the “AEI Factoring Agreement”) by and between AEI and Lender; the Restated and Amended Factoring
Agreement bearing the effective date as of January 1, 1995 (the “ADI Factoring Agreement”) by and between ADI and Lender; the Restated and Amended Factoring Agreement bearing the effective date of January 1, 1995 (the “LJN Factoring
Agreement”) by and between LJN and Lender; the Restated and Amended Factoring Agreement bearing the effective date of January 1, 1995 (the “Canada Factoring Agreement”) by and between Canada and Lender; and the Restated and Amended
Factoring Agreement bearing the effective date as of January 1, 1995 by and between Arena and Lender (the “Arena Factoring Agreement”; and together with the AEI Factoring Agreement, the ADI Factoring Agreement, the LJN Factoring Agreement
and the Canada Factoring Agreement, as the same may now exist or may hereafter be amended, restated, renewed, replaced, extended, substituted, supplemented or otherwise modified, collectively, the “Factoring Agreements”); and to all of the
notes, instruments, guarantees, agreements and other documents executed and/or delivered in connection with the Credit Agreement and the Factoring Agreements (all of the foregoing, as the same now exist, or may hereafter be amended, restated,
renewed, extended, supplemented, substituted, replaced or otherwise modified, collectively, the “Other Documents”; and together with the Credit Agreement and the Factoring Agreements, collectively, the “Loan Documents”).

  

 Borrowers have advised Lender that (i) Tangible Net Worth was less than the minimum Tangible Net Worth
permitted for the quarter ended March 31, 2004 under Section 6.4 (Tangible Net Worth) of the Credit Agreement; (ii) Working Capital was less than the minimum Working Capital permitted for the quarter ended March 31, 2004 under Section 6.5 (Working
Capital) of the Credit Agreement; (iii) Ratio of Total Indebtedness to Tangible Net Worth was greater than the maximum Ratio of Total Indebtedness to Tangible Net Worth permitted for the quarter ended March 31, 2004 under Section 6.7 (Ratio of Total
Indebtedness to Tangible Net Worth) of the Credit Agreement; (iv) Fixed Charge Ratio was less than the minimum Fixed Charge Ratio permitted for the quarter ended March 31, 2004 under Section 6.8 (Fixed Charge Ratio) of the Credit Agreement; (v)
Fixed Charge Ratio for the trailing twelve months was less than the minimum Fixed Charge Ratio for the trailing twelve months permitted for the quarter ended March 31, 2004 under Section 6.8 (Fixed Charge Ratio trailing twelve months) of the Credit
Agreement; and (vi) Net Income was less than the minimum permitted for the quarter ended March 31, 2004 under Section 6.9 (Maximum Losses) of the Credit Agreement. As a result of such noncompliance, Events of Default have occurred and are continuing
under subsection (c) of Article IX (Events of Default) of the Credit Agreement (collectively, the “Existing Defaults”). As a result of the occurrence and continuance of the Existing Defaults, Lender may exercise its rights and remedies
under the Loan Documents and applicable law. 
  
 Borrowers have
requested that Lender provide certain Overformula Amounts to Borrowers to fund Borrowers’ operations. Borrowers have acknowledged that the credit facilities provided under the Loan Documents are discretionary and Lender has no obligation to
make any Advances, including any Overformula Amounts. Borrowers have advised Lender that shareholders who have in the past provided credit support to the Borrowers in the form of cash collateral deposits with Lender have refused to provide similar
credit support to Borrowers as of the date hereof. Lender has advised Borrowers that, in accordance with Lender’s discretionary rights under the Loan Documents, Lender will not provide all the Overformula Amounts requested by Borrowers.

  
 Borrowers have requested that Lender amend certain provisions
of the Loan Documents and waive the Existing Defaults. Borrowers have advised Lender that Borrowers are seeking to obtain alternate financing to satisfy and pay all of the Obligations to Lender in full. Borrowers have also requested that Lender make
certain limited Advances, including certain Overformula Amounts, for a limited period of time while Borrowers seek the alternate financing needed to pay and satisfy all of the Obligations to Lender in full. Subject to the terms and conditions set
forth herein, Lender has agreed to make such amendments, grant such waivers, and to make, in Lender’s sole and absolute discretion, limited Advances, including Overformula Amounts, for a limited period of time. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 
  
 1. Definitions. Capitalized terms used in this Waiver and Amendment and not otherwise defined herein shall have the meanings ascribed to them in
the Credit Agreement. 
  

 2 

 2. Amendments to the Credit Agreement. The Credit Agreement is hereby amended as follows:

  
 (a) Section 1.2 of the Credit Agreement is
hereby amended by adding the following defined term in its appropriate alphabetical order: 
  
 ““Waiver and Amendment” shall mean that certain Waiver and Amendment Agreement dated May 4, 2004 among Borrowers, Corporate Guarantors and Lender.” 
  
 (b) The definition of “Maximum Loan Amount”
as set forth in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
  
 ““Maximum Loan Amount” shall mean an amount equal to $22,000,000.” 
  
 (c) The definition of “Term” as set forth in
Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety as follows: 
  
 ““Term” shall mean January 1, 1993 through and including June 20, 2004 as the same may be extended, reduced or terminated in
accordance with the provisions of Section 12.1 hereof.” 
  
 (d) Effective as of the date hereof, the second (2nd) sentence of Section 2.1(a) of
the Credit Agreement is amended and restated in its entirety to read as follows: 
  
 “The “Formula Amount” shall mean the sum of the following amounts at any time and from time to time: 
  
 (1) up to sixty percent (60%) of Eligible Accounts, other
than Eligible Accounts arising from the sale of personal computer CD-ROM software; plus 
  
 (2) up to zero percent (0%) of Eligible Accounts arising from the sale of personal computer CD-ROM software; provided, however, that the
maximum amount of all outstanding Advances against such Eligible Accounts shall not exceed Five Million ($5,000,000) Dollars in the aggregate at any one time; plus 
  
 (3) up to fifty percent (50%) of the Value of the Eligible Inventory; provided, however, that the maximum
amount of all outstanding Advances against Eligible Inventory shall not exceed One Million Five Hundred Thousand ($1,500,000) Dollars in the aggregate at any one time; plus 
  
 (4) up to fifty percent (50%) of the first cost of goods to be imported under Letters of Credit which remain
outstanding; plus 
  

 3 

 (6) the Participant Availability; less 
  
 (7) in each case, such reserves, established by Lender, in
Lender’s sole discretion (“Reserves”).” 
  
 3.
Amendment to the Factoring Agreements. The Factoring Agreements are hereby amended as follows: 
  
 (a) Effective as of the date hereof, Paragraph 9(a) of each of the Factoring Agreements is hereby amended and restated in its entirety to
read as follows: 
  
 “(a) This agreement
shall remain in full force and effect until June 20, 2004. Should any Event of Default (under and as defined in the Credit Agreement) occur, or should any event of default hereunder occur, or should the Credit Agreement be terminated for any reason,
or should the Term (as defined in the Credit Agreement) expire, then in any of such events, we may terminate this agreement at any time and without notice, provided, however, that such termination shall be automatic upon the expiration of this
Agreement or the Credit Agreement.” 
  
 4. Waiver.

  
 (a) Borrowers acknowledge, confirm and agree
that the Existing Defaults have occurred and are continuing under the Loan Documents, and that, as a result of the occurrence of such Existing Defaults, Lender may exercise its rights and remedies under the Loan Documents and applicable law.

  
 (b) Borrower has requested that Lender waive
the Existing Defaults. Lender hereby agrees to waive the Existing Defaults as of the date of this Waiver and Amendment subject to the terms and conditions of this Waiver and Amendment; provided, however, that, Lender, hereby reserves all rights and
remedies granted to the Lender under the Credit Agreement and the other Loan Documents, applicable law or otherwise, and nothing contained herein shall be construed to limit, impair or otherwise affect the right of the Lender to declare a default or
an Event of Default with respect to any default or Event of Default in existence but not disclosed to Lender as of the date hereof or with respect to any future non-compliance with any other covenant, term or provision of this Waiver and Amendment,
the Credit Agreement or any other Loan Document now or hereafter executed and delivered in connection therewith. 
  
 (c) Within thirty (30) days of the date hereof, Borrowers shall provide Lender with a signed proposal letter from a financial institution
of national standing and reputation, providing for, among other things, (i) the refinancing of the Obligations to Lender under the Loan Documents in an amount not less than the Maximum Loan Amount, and (ii) a closing of the proposed refinancing and
payment in full of the aggregate amount of all Obligations outstanding to take place no later than June 20, 2004. The proposal letter shall be in form and substance satisfactory to Lender in all respects, in Lender’s sole and absolute
discretion. Borrowers’ failure to timely provide such proposal letter shall constitute an Event of Default hereunder and under the Loan Documents. 
  

 4 

 (d) The Borrowers have prepared and submitted to Lender a “Domestic Forecast”,
annexed hereto as Exhibit A, reflecting the Borrowers’ projected weekly cash flow for the first quarter of Borrowers’ 2005 fiscal year. Borrowers hereby acknowledge, confirm and agree that the Borrowers will, on the Monday of each week for
the immediately prior week, submit to Lender Borrowers’ actual cash flow results for such prior week in the same format as the “Domestic Forecast”. If, for any such week, the actual weekly cash flow results for the line items
identified as Ending Account Balance, GMAC Availability, Gross Total Collateral, Total Investment, Ending Balances—Net A/R Outstanding, Net Eligible A/R Outstanding, GMAC Drawdowns, Total Disbursements and Remaining Operating Cash, negatively
deviate from the projections for such week set forth on Exhibit A by more than ten percent (10%), then such deviation shall constitute an Event of Default under the Loan Documents. 
  
 (e) Borrowers shall provide access to the Glen Cove Property to appraisers retained by Lender and cooperate
with such appraisers in connection with the appraisal of the Glen Cove Property. All costs, fees and expenses incurred by Lender in connection with the appraisal shall be borne by Borrowers and charged to the Obligations by Lender. Borrowers’
failure to comply with this covenant shall constitute an Event of Default under the Loan Documents. 
  
 (f) Within five (5) days from the date hereof, Borrowers shall deliver to Lender an organizational chart identifying each of the
Borrowers, the Corporate Guarantors and their respective domestic and foreign affiliates and subsidiaries, in form and content satisfactory to Lender. Borrowers’ failure to comply with this covenant shall constitute an Event of Default under
the Loan Documents. 
  
 (g) Concurrently with the
execution of the Waiver and Amendment, Borrowers and Corporate Guarantors shall execute and deliver to Lender resolutions, in form and content satisfactory to Lender, authorizing such parties to enter into this Waiver and Amendment. 
  
 (h) Without limiting in any way Lender’s discretionary
rights under the Loan Documents, including Lender’s right to withhold or limit Advances, Lender may, in its sole and absolute discretion, make Overformula Amounts available to Borrowers up to $3,000,000 and Borrowers acknowledge, confirm and
agree that at no time shall the aggregate Overformula Amount outstanding exceed $3,000,000. If, for any reason whatsoever, the aggregate Overformula Amount exceeds $3,000,000 at any time, the same shall constitute an Event of Default under the Loan
Documents. 
  
 (i) Lender, Borrowers and
Corporate Guarantors acknowledge, confirm and agree that, notwithstanding anything to the contrary set forth in the Loan Documents, the Term shall not be extended or renewed beyond June 20, 2004. 
  
 (j) Borrowers shall pay a waiver fee of $50,000 (the
“Waiver Fee”) upon execution of this Agreement which Waiver Fee shall constitute an Obligation and Lender is hereby authorized to charge the Waiver Fee against the Obligations. The Waiver Fee shall be fully earned as of the date hereof and
shall not be subject to refund, rebate or proration for any reason whatsoever. 
  

 5 

 5. Borrowers’ Acknowledgement and Reaffirmation. 
  
 (a) Each of the Borrowers hereby acknowledges, confirms and
agrees that as of May 3, 2004, the Borrowers, jointly and severally, owe Lender Obligations in the aggregate principal amount of not less than $21,231,772.20, plus accrued and unpaid interest, and plus all costs, fees, commissions, expenses and
other sums and charges due and owing to the Lender under the Credit Agreement and the other Loan Documents, including, without limitation, all costs and expenses (including attorneys’ fees and expenses) incurred by the Lender (all of the
foregoing is collectively referred to as the “Existing Debt”). Each of the Borrowers hereby acknowledges, confirms and agrees that as of the date hereof, the Existing Debt is due and owing by the Borrowers jointly and severally to the
Lender without offset, defense or counterclaim of any kind, nature or description whatsoever. 
  
 (b) Borrowers hereby ratify and confirm the Credit Agreement, the Factoring Agreements and the Other Documents as being valid and binding
obligations of the Borrowers, enforceable against Borrowers in accordance with all of their respective terms as modified hereby. Borrowers hereby confirm that there are no defenses to the performance of any of their obligations under the Credit
Agreement, the Factoring Agreements or any Other Document. Borrowers hereby ratify and confirm Borrowers’ grant to Lender of the first priority perfected liens upon and security interests in their properties and assets heretofore mortgaged,
pledged, granted or assigned to Lender under the Credit Agreement, the Factoring Agreements and the Other Documents, and acknowledge and confirm that such first priority perfected liens and security interests secure and shall continue to secure the
Obligations of Borrowers to Lender, subject only to such prior security interests as are expressly permitted under the Loan Documents. 
  
 6. Guarantor’s Acknowledgement and Reaffirmation. By their execution of this Waiver and Amendment, Corporate Guarantors hereby ratify and
confirm each of the Other Documents to which each Corporate Guarantor is a party as being its valid and binding obligations, enforceable against such Corporate Guarantor in accordance with all of their respective terms as modified hereby. Each
Corporate Guarantor hereby confirms that there are no defenses to the performance of any of its obligations under any Other Document and expressly acknowledges to Lender that it has no currently existing defense, offset, or counterclaim with respect
to any of the Existing Debt. Each Corporate Guarantor hereby ratifies and confirms its grant to Lender of the first priority perfected liens upon and security interests in its properties and assets heretofore mortgaged, pledged, granted or assigned
to Lender under the Other Documents, and acknowledges and confirms that such first priority perfected liens and security interests secure and shall continue to secure the obligations of such Corporate Guarantor to Lender, subject only to such prior
security interests as are expressly permitted under the Other Documents. 
  

 6 

 7. Release. In consideration of the agreements made by Lender in this Waiver and Amendment and the
performance thereof and other good and valuable consideration, each of the Borrowers and Corporate Guarantors (collectively, the “Releasors”) forever releases and discharges Lender, its affiliates, members, officers, directors,
consultants, agents, attorneys, representatives and employees, and their respective successors and assigns (collectively, the “Released Parties”) from any and all actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, controversies, variances, trespasses, damages, judgments, extent, executions, claims and demands whatsoever, in law, admiralty or equity, without defense, offset or counterclaim, which any Releasor, directly or
indirectly, ever had or now or can, shall or may, have against any of the Released Parties for, upon, or by reason of any matter, cause or thing arising under or relating to the Credit Agreement, the Factoring Agreements or any Other Document and
the transactions contemplated therein. In addition to the foregoing, each Releasor agrees to forever refrain and forbear from commencing, assisting, instituting, prosecuting or encouraging others to institute or prosecute any litigation, action,
arbitration, administrative or other proceeding of any kind against any of the Released Parties directly or indirectly arising out of, resulting from or relating in any way to the subject matter of or the fact and course of conduct underlying the
releases granted herein. 
  
 8. Miscellaneous. 

 
 (a) This Waiver and Amendment shall be binding upon and
inure to the benefit of each of the parties hereto and their respective successors and assigns. 
  
 (b) This Waiver and Amendment may be executed in any number of counterparts, all of which counterparts when taken together shall
constitute one and the same agreement. 
  
 (c)
Borrowers absolutely and unconditionally agree to pay to Lender, on demand by Lender at any time and as often as the occasion therefor may require, (i) all fees and disbursements of any counsel to Lender in connection with the preparation,
negotiation, execution or delivery of this Waiver and Amendment and any other agreements, instruments, or documents prepared or delivered in connection with the transactions contemplated hereby, (ii) all fees and expenses which shall at any time be
incurred or sustained by Lender or any of its directors, officers, employees or agents as a consequence of or in any way in connection with the preparation, negotiation, execution or delivery of this Waiver and Amendment and any agreement prepared,
negotiated, executed or delivered in connection with the transactions contemplated hereunder or thereunder, and (iii) any other costs, fees and expenses incurred by Lender in connection with enforcing its rights hereunder or thereunder, including
without limitation, costs, fees and expenses incurred by Lender in connection with the appraisal of the Glen Cove Property. 
  
 (d) This Waiver and Amendment and the rights and obligations hereunder of each of the parties hereto shall be governed by and interpreted
and determined in accordance with the laws of the State of New York, without giving effect to conflicts of laws principles. 
  
 (e) Except as specifically set forth herein, no other changes or modifications to the Loan Documents are intended or implied and, in all
other respects, the Loan Documents shall continue to remain in full force and effect in accordance with their respective terms as of 
  

 7 

 the date hereof. Except as specifically set forth herein, nothing contained herein shall evidence a
waiver or amendment by the Lender of any other provision of the Loan Documents nor shall anything contained herein be construed as a consent by the Lender to any transaction other than those specifically consented to herein. 
  
 (f) TO THE EXTENT LEGALLY PERMISSIBLE, BORROWERS, CORPORATE
GUARANTORS AND LENDER WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY LITIGATION RELATING TO TRANSACTIONS UNDER THIS LETTER AGREEMENT AND THE LOAN DOCUMENTS, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. 
  
  

			
	 ACCLAIM ENTERTAINMENT, INC.

	 ACCLAIM DISTRIBUTION INC.

	 LJN TOYS, LTD.

	 ARENA ENTERTAINMENT INC.

	 ACCLAIM ENTERTAINMENT CANADA, LTD.

		
	 By:
	 	 /s/ Gerard F. Agoglia

	 	 	

	 Name:
	 	 /s/ Gerard F. Agoglia

	 	 	

	 Title:
	 	 Chief Financial Officer

	 	 	

	
	 GMAC COMMERCIAL FINANCE LLC

		
	 By:
	 	 /s/ Patrick Duffy

	 	 	

	 Name:
	 	 /s/ Patrick Duffy

	 	 	

	 Title:
	 	 Senior Vice President

	 	 	

  
 Consented and Agreed to:

  
 OYSTER BAY WAREHOUSE CORP. 
 ACCLAIM CORPORATE CENTER 1, INC. 
 IGUANA ENTERTAINMENT, INC.

 ACCLAIM ENTERTAINMENT, LTD. 
 ACCLAIM JAPAN, LTD.

 ACCLAIM ENTERTAINMENT, G.m.b.H. 
 ACCLAIM
ENTERTAINMENT, S.A. 
 ANNODEUS, INC. 
  
  

			
	 By:
	 	 /s/ Gerard F. Agoglia

	 	 	

	 Name:
	 	 /s/ Gerard F. Agoglia

	 	 	

	 Title:
	 	 Chief Financial Officer

	 	 	

  

 8 

 EXHIBIT A 
 TO 
 WAIVER AND AMENDMENT AGREEMENT 
  
 Form of “Domestic Forecast” 
  
 [SEE ATTACHED] 
  

 9

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