Document:

exv10w89

 

Exhibit 10.89

WAIVER, CONSENT AND FIFTEENTH AMENDMENT TO

LOAN AND SECURITY AGREEMENT

          THIS WAIVER, CONSENT AND FIFTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”)
is entered into as of October 17, 2005, by and among Lenders, WELLS FARGO FOOTHILL,
INC., a California corporation, as the arranger and administrative agent for the Lenders
(“Agent”) and MIDWAY HOME ENTERTAINMENT INC., a Delaware corporation (“Midway”),
MIDWAY AMUSEMENT GAMES, LLC, a Delaware limited liability company (“MAG”; Midway and MAG are
referred to hereinafter each individually as a “Borrower”, and individually and
collectively, jointly and severally, as the “Borrowers”), MIDWAY GAMES INC., a Delaware
corporation (“Parent”), MIDWAY GAMES WEST INC., a California corporation (“MGW”),
MIDWAY INTERACTIVE INC., a Delaware corporation (“MI”), MIDWAY SALES COMPANY, LLC, a
Delaware limited liability company (“MSC”), MIDWAY HOME STUDIOS INC., a Delaware
corporation (“MHS”), SURREAL SOFTWARE INC., a Washington corporation (“Surreal”),
MIDWAY STUDIOS – AUSTIN INC., a Texas corporation (“MSA”), MIDWAY STUDIOS – LOS ANGELES INC., a
California corporation (“MSLA”; Parent, MGW, MI, MSC, MHS, Surreal, MSA and MSLA, are referred to
hereinafter each individually as a “U.S. Credit Party” and individually and collectively,
jointly and severally, as the “U.S. Credit Parties”).

          WHEREAS, Borrowers, U.S. Credit Parties, Agent, and Lenders are parties to that certain Loan
and Security Agreement dated as of March 3, 2004 (as amended, modified or supplemented from time to
time, the “Loan Agreement”);

          WHEREAS, Borrowers have advised Agent and Lenders that the names of certain Australian
Subsidiaries have been changed which actions are a default under Section 7.5 of the Loan Agreement
(the “Name Change Defaults”) and Borrowers and U.S. Credit Parties have requested that
Agent and Lenders waive the Name Change Defaults and consent to such name changes;

          WHEREAS, Borrowers have advised Agent and Lenders that Parent desires to cause the name of
Pitbull to be changed to Midway Studios – Newcastle Limited (the “Pitbull Name Change”) and
Borrowers and U.S. Credit Parties desire for Agent and Required Lenders to consent to the Pitbull
Name Change as set forth herein; and

          WHEREAS, Borrowers, U.S. Credit Parties, Agent and Lenders have agreed to amend the Loan
Agreement in certain respects, subject to the terms and conditions contained herein.

          NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the
parties hereto agree as follows:

          1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein
shall have the meanings ascribed to such terms in the Loan Agreement.

 

 

          2. Waiver and Consent. Subject to the satisfaction of the conditions set forth in
Section 6 below, Agent and Required Lenders hereby waive the Name Change Defaults and consent to
the change of name of certain of the Australian Subsidiaries as reflected in Section 4(a) of this
Amendment. This is a limited waiver and consent and shall not be deemed to constitute a waiver of,
or consent to, any other future breach of the Loan Agreement (as amended by this Amendment).

          3. Consent. Subject to the satisfaction of the conditions set forth in Section 6
below, Agent and Required Lenders hereby consent to the Pitbull Name Change. This is a limited
consent and shall not be deemed to constitute a waiver of, or consent to, any other future breach
of the Loan Agreement (as amended by this Amendment).

          4. Amendment to Loan Agreement. Subject to the satisfaction of the conditions set
forth in Section 6 hereof, the Loan Agreement is amended as follows:

          (a) The definition of “Australia Subsidiaries” in Section 1.1 of the Loan Agreement is hereby
amended and restated as follows:

“Australia Subsidiaries” means Midway Studios — Australia Pty Ltd. (ACN 066
907 266), Midway Games — Australia Pty Ltd. (ACN 100 780 989), Midway Studios
Development — Australia Pty Ltd. (ACN 101 413 745), Ratbag Productions Pty Ltd. (ACN
096 392 362) and Ratbag Studios Pty Ltd. (ACN 106 892 906).

          (b) The definition of “Pitbull” in Section 1.1 of the Loan Agreement is hereby amended and
restated as follows:

“Pitbull” means Midway Studios — Newcastle Limited, an English limited
liability private company, registered with company number 3292274.

          (c) Section 7.9 of the Loan Agreement is hereby amended and restated as follows:

     7.9 Consignments

Consign any of their Inventory or sell any of their Inventory on bill and hold, sale
or return, sale on approval, or other conditional terms of sale; provided that
Midway and UK Company may consign Inventory for sale in France with their
distributor Nobilis S.A. with a value (based upon the cost of such Inventory to
Midway or UK Company) not to exceed $1,000,000 at any time.

          5. Ratification. This Amendment, subject to satisfaction of the conditions provided
below, shall constitute an amendment to the Loan Agreement and all of the Loan Documents as
appropriate to express the agreements contained herein. In all other respects, the Loan Agreement
and the Loan Documents shall remain unchanged and in full force and effect in accordance with their
original terms.

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          6. Conditions to Effectiveness. This Amendment shall become effective as of the date
hereof and upon the satisfaction of the following conditions precedent:

          (a) Each party hereto shall have executed and delivered this Amendment to Agent;

          (b) Companies shall have delivered to Agent such documents, agreements and instruments as may
be requested or required by Agent in connection with this Amendment, each in form and content
acceptable to Agent;

          (c) Except for such Defaults as may be waived by this Amendment, no Default or Event of
Default shall have occurred and be continuing on the date hereof or as of the date of the
effectiveness of this Amendment; and

          (d) All proceedings taken in connection with the transactions contemplated by this Amendment
and all documents, instruments and other legal matters incident thereto shall be satisfactory to
Agent and its legal counsel.

          7. Miscellaneous.

          (a) Warranties and Absence of Defaults. In order to induce Agent to enter into this
Amendment, each Company hereby warrants to Agent, as of the date hereof, that, except for such
Defaults as may be waived by this Amendment, the representations and warranties of Companies
contained in the Loan Agreement are true and correct as of the date hereof as if made on the date
hereof (other than those which, by their terms, specifically are made as of certain dates prior to
the date hereof).

          (b) Expenses. Companies, jointly and severally, agree to pay on demand all costs and
expenses of Agent (including the reasonable fees and expenses of outside counsel for Agent) in
connection with the preparation, negotiation, execution, delivery and administration of this
Amendment and all other instruments or documents provided for herein or delivered or to be
delivered hereunder or in connection herewith. All obligations provided herein shall survive any
termination of this Amendment and the Loan Agreement as amended hereby.

          (c) Governing Law. This Amendment shall be a contract made under and governed by the
internal laws of the State of Illinois.

          (d) Counterparts. This Amendment may be executed in any number of counterparts, and
by the parties hereto on the same or separate counterparts, and each such counterpart, when
executed and delivered, shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Amendment.

          8. Release.

          (a) In consideration of the agreements of Agent and Lenders contained herein and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each
Company, on behalf of itself and its successors, assigns, and

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other legal representatives, hereby absolutely, unconditionally and irrevocably releases,
remises and forever discharges Agent and Lenders, and their successors and assigns, and their
present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors,
officers, attorneys, employees, agents and other representatives (Agent, each Lender and all such
other Persons being hereinafter referred to collectively as the “Releasees” and individually as a
“Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts,
controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any
and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities
whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or
unknown, suspected or unsuspected, both at law and in equity, which such Company or any of its
successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim
to have against the Releasees or any of them for, upon, or by reason of any circumstance, action,
cause or thing whatsoever which arises at any time on or prior to the day and date of this
Amendment, including, without limitation, for or on account of, or in relation to, or in any way in
connection with any of the Loan Agreement, or any of the other Loan Documents or transactions
thereunder or related thereto.

          (b) Each Company understands, acknowledges and agrees that the release set forth above may be
pleaded as a full and complete defense and may be used as a basis for an injunction against any
action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the
provisions of such release.

          (c) Each Company agrees that no fact, event, circumstance, evidence or transaction which could
now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute
and unconditional nature of the release set forth above.

-4-

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	MIDWAY HOME ENTERTAINMENT INC.,  
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY AMUSEMENT GAMES, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	MIDWAY GAMES INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY GAMES WEST INC.,
	 	 	a California corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY INTERACTIVE INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY SALES COMPANY, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	MIDWAY HOME STUDIOS INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	SURREAL SOFTWARE INC.,
	 	 	a Washington corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY STUDIOS — AUSTIN INC.,
	 	 	a Texas corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY STUDIOS — LOS ANGELES INC.,
	 	 	a California corporation
	 
	 	 	 	 	 	 
	 

	 	Each By
	 	Thomas E. Powell	 	 
	 

	 	 	 	 	 	 
	 	 	Title 	EVP-Finance, CFO & Treasurer
	 

	 	 	 	 	 

Signature page to Waiver, Consent and Fifteenth Amendment to Loan and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, INC.,  
	 	 	a California corporation, as Agent, as UK Security Trustee and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By
	 	John Leonard	 	 
	 

	 	 	 	 	 	 
	 	 	Title Vice President
	 

	 	 	 	 	 	 

Signature page to Waiver, Consent and Fifteenth Amendment to Loan and Security Agreementexv10w90

 

Exhibit 10.90

CONSENT AND SIXTEENTH AMENDMENT TO

LOAN AND SECURITY AGREEMENT

          THIS CONSENT AND SIXTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into as of November 3, 2005, by and among Lenders, WELLS FARGO FOOTHILL, INC., a California
corporation, as the arranger and administrative agent for the Lenders (“Agent”) and MIDWAY
HOME ENTERTAINMENT INC., a Delaware corporation (“Midway”), MIDWAY AMUSEMENT GAMES, LLC, a
Delaware limited liability company (“MAG”; Midway and MAG are referred to hereinafter each
individually as a “Borrower”, and individually and collectively, jointly and severally, as
the “Borrowers”), MIDWAY GAMES INC., a Delaware corporation (“Parent”), MIDWAY
GAMES WEST INC., a California corporation (“MGW”), MIDWAY INTERACTIVE INC., a Delaware
corporation (“MI”), MIDWAY SALES COMPANY, LLC, a Delaware limited liability company
(“MSC”), MIDWAY HOME STUDIOS INC., a Delaware corporation (“MHS”), SURREAL SOFTWARE
INC., a Washington corporation (“Surreal”), MIDWAY STUDIOS – AUSTIN INC., a Texas
corporation (“MSA”), MIDWAY STUDIOS – LOS ANGELES INC., a California corporation (“MSLA”; Parent,
MGW, MI, MSC, MHS, Surreal, MSA and MSLA, are referred to hereinafter each individually as a
“U.S. Credit Party” and individually and collectively, jointly and severally, as the
“U.S. Credit Parties”).

          WHEREAS, Borrowers, U.S. Credit Parties, Agent, and Lenders are parties to that certain Loan
and Security Agreement dated as of March 3, 2004 (as amended, modified or supplemented from time to
time, the “Loan Agreement”);

          WHEREAS, Borrowers have advised Agent and Lenders that Parent desires to form and capitalize a
new subsidiary (the “French Company”) under French law (the “French Company
Formation”). Borrowers and U.S. Credit Parties desire for Agent and Required Lenders to
consent to the French Company Formation as set forth herein; and

          WHEREAS, Borrowers, U.S. Credit Parties, Agent and Lenders have agreed to amend the Loan
Agreement in certain respects, subject to the terms and conditions contained herein.

          NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the
parties hereto agree as follows:

          1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein
shall have the meanings ascribed to such terms in the Loan Agreement.

          2. Consent. Subject to the satisfaction of the conditions set forth in Section 5
below, Agent and Required Lenders hereby consent to the French Company Formation; provided that the
net amount of Investments in French Company shall not at any time exceed the applicable amounts set
forth in the definition of Permitted Investment in Section 1.1 of the Loan Agreement (as amended by
this Amendment).

 

 

          3. Amendment to Loan Agreement. Subject to the satisfaction of the conditions set
forth in Section 5 hereof, the Loan Agreement is amended as follows:

          (a) The definition of “Bankruptcy Code” in Section 1.1 of the Loan Agreement is hereby amended
and restated as follows:

     “Bankruptcy Code” means title 11 of the United States Code, as
applicable, and as in effect from time to time, and, in respect of UK Company and
Pitbull, UK Insolvency Laws, in respect of German Company, German Insolvency Laws,
in respect of Japan Company, Japan Insolvency Laws, in respect of Australia
Companies, Australian Insolvency Laws and in respect of French Company, French
Insolvency Laws.

          (b) The definition of “Foreign Company” in Section 1.1 of the Loan Agreement is hereby amended
and restated as follows:

     “Foreign Companies” means collectively, the Australia Companies, UK
Company, German Company, Japan Company, Pitbull and French Company.

          (c) The definition of “Permitted Investment” in Section 1.1 of the Loan Agreement is hereby
amended by deleting the word “and” at the end of clause (l), amending clause (m) thereof so that it
is now a reference to clause (n) thereof and adding a new clause (m) to read as follows:

(m) Investments in French Company so long as the net amount of such Investments made
does not exceed (i) an amount equal to $1,000,000 plus the ordinary course expenses
of French Company at any time prior to December 31, 2005 and (ii) an amount equal to
the ordinary course expenses of French Company at any time on or after December 31,
2005 and

          (d) The following definitions are added to Section 1.1 of the Loan Agreement, each in their
appropriate alphabetical order:

     “French Company” means Midway Games SAS, a French société par actions
simplifiée, registered with company number 484 780 333 R.C.S. Paris.

     “French Insolvency Laws” means the bankruptcy and insolvency laws as
now and hereafter applying in France.

          (e) Section 7.9 of the Loan Agreement is hereby amended and restated as follows:

     7.9 Consignments

Consign any of their Inventory or sell any of their Inventory on bill and hold, sale
or return, sale on approval, or other conditional terms of sale; provided that
Midway, UK Company and French Company may consign Inventory for

-2-

 

sale in France with their distributor Nobilis S.A. with a value (based upon the cost
of such Inventory to Midway, UK Company or French Company) not to exceed $1,000,000
at any time.

          4. Ratification. This Amendment, subject to satisfaction of the conditions provided
below, shall constitute an amendment to the Loan Agreement and all of the Loan Documents as
appropriate to express the agreements contained herein. In all other respects, the Loan Agreement
and the Loan Documents shall remain unchanged and in full force and effect in accordance with their
original terms.

          5. Conditions to Effectiveness. This Amendment shall become effective as of the date
hereof and upon the satisfaction of the following conditions precedent:

          (a) Each party hereto shall have executed and delivered this Amendment to Agent;

          (b) Companies shall have delivered to Agent such documents, agreements and instruments as may
be requested or required by Agent in connection with this Amendment, each in form and content
acceptable to Agent;

          (c) No Default or Event of Default shall have occurred and be continuing on the date hereof or
as of the date of the effectiveness of this Amendment; and

          (d) All proceedings taken in connection with the transactions contemplated by this Amendment
and all documents, instruments and other legal matters incident thereto shall be satisfactory to
Agent and its legal counsel.

          6. Miscellaneous.

          (a) Warranties and Absence of Defaults. In order to induce Agent to enter into this
Amendment, each Company hereby warrants to Agent, as of the date hereof, that the representations
and warranties of Companies contained in the Loan Agreement are true and correct as of the date
hereof as if made on the date hereof (other than those which, by their terms, specifically are made
as of certain dates prior to the date hereof).

          (b) Expenses. Companies, jointly and severally, agree to pay on demand all costs and
expenses of Agent (including the reasonable fees and expenses of outside counsel for Agent) in
connection with the preparation, negotiation, execution, delivery and administration of this
Amendment and all other instruments or documents provided for herein or delivered or to be
delivered hereunder or in connection herewith. All obligations provided herein shall survive any
termination of this Amendment and the Loan Agreement as amended hereby.

          (c) Governing Law. This Amendment shall be a contract made under and governed by the
internal laws of the State of Illinois.

          Counterparts. This Amendment may be executed in any number of counterparts, and by
the parties hereto on the same or separate counterparts, and each such counterpart, when

-3-

 

executed and delivered, shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same Amendment.

          7. Release.

          (a) In consideration of the agreements of Agent and Lenders contained herein and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each
Company, on behalf of itself and its successors, assigns, and other legal representatives, hereby
absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and
Lenders, and their successors and assigns, and their present and former shareholders, affiliates,
subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other
representatives (Agent, each Lender and all such other Persons being hereinafter referred to
collectively as the “Releasees” and individually as a “Releasee”), of and from all demands,
actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums
of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims,
defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and
collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both
at law and in equity, which such Company or any of its successors, assigns, or other legal
representatives may now or hereafter own, hold, have or claim to have against the Releasees or any
of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises
at any time on or prior to the day and date of this Amendment, including, without limitation, for
or on account of, or in relation to, or in any way in connection with any of the Loan Agreement, or
any of the other Loan Documents or transactions thereunder or related thereto.

          (b) Each Company understands, acknowledges and agrees that the release set forth above may be
pleaded as a full and complete defense and may be used as a basis for an injunction against any
action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the
provisions of such release.

          (c) Each Company agrees that no fact, event, circumstance, evidence or transaction which could
now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute
and unconditional nature of the release set forth above.

-4-

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	MIDWAY HOME ENTERTAINMENT INC.,  
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY AMUSEMENT GAMES, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	MIDWAY GAMES INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY GAMES WEST INC.,
	 	 	a California corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY INTERACTIVE INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY SALES COMPANY, LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	MIDWAY HOME STUDIOS INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	SURREAL SOFTWARE INC.,
	 	 	a Washington corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY STUDIOS — AUSTIN INC.,
	 	 	a Texas corporation
	 
	 	 	 	 	 	 
	 	 	MIDWAY STUDIOS — LOS ANGELES INC.,
	 	 	a California corporation
	 
	 	 	 	 	 	 
	 

	 	Each By
	 	Thomas E. Powell	 	 
	 

	 	 	 	 	 	 
	 	 	Title 	EVP-Finance, CFO & Treasurer
	 

	 	 	 	 	 

Signature page to Consent and Sixteenth Amendment to Loan and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, INC.,  
	 	 	a California corporation, as Agent, as UK Security Trustee and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By
	 	John Leonard	 	 
	 

	 	 	 	 	 	 
	 	 	Title	 	Vice President	 	 

Signature page to Consent and Sixteenth Amendment to Loan and Security Agreement

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