Document:

Exhibit 10.1

                                 DESCRIPTION OF
          EGAMES, INC. FISCAL 2001 EMPLOYEE INCENTIVE COMPENSATION PLAN

         On July 26,  2000,  the  Board  of  Directors  of  eGames,  Inc.  ("the
Company")   approved  the  adoption  of  a   company-wide   Employee   Incentive
Compensation Plan (the "Plan").  The amount of incentive  compensation that each
Company employee is eligible to earn under the Plan is contingent on the Company
achieving  certain  net income  objectives.  Under the Plan,  each  employee  is
eligible to earn a specified percentage of the employee's total annual salary in
incentive compensation.  These percentages range from 10% of the annual salaries
for  administrative  employees  to 50% of the  annual  salaries  for  the  Chief
Executive Officer and Executive Vice President.

         No bonuses will be earned until the Company has earned net income of at
least  $750,000  (the  "Minimum  Threshold")  during the 2001 fiscal year.  Upon
reaching  the  Minimum  Threshold,  plus the amount  required to pay the bonuses
earned if the Minimum  Threshold were achieved,  then 50% of the potential bonus
to which each employee was eligible would be earned. If net income of $1,500,000
(the 100%  Threshold")  is earned  during the 2001 fiscal year,  plus the amount
required to pay the bonuses earned when that net income level had been achieved,
then 100% of the potential  bonus to which each  employee was eligible  would be
earned.

         If the  Company  earns net  income  during  the 2001  fiscal  year that
exceeds  the  Minimum  Threshold,  plus the amount  required  to pay the bonuses
earned,  then each  employee  would earn a bonus equal to the  percentage of the
potential  bonus to which they were eligible equal to the percentage of earnings
as measured  against the 100%  Threshold.  For  example,  if an employee  earned
$50,000  per year and was  eligible  to earn a bonus  equal to 10% of his or her
salary if the 100% Threshold were met, then that employee would be paid a $5,000
bonus if the 100% Threshold were met.

         On the date of adoption of the Plan,  based on the number of  employees
of the Company and their  respective bonus  percentages,  the Company would have
been required to achieve pre-bonus  earnings of approximately  $1,100,000 during
the 2001  fiscal  year in order to earn the  minimum  bonus  (50%).  There is no
maximum incentive compensation level. If the Company exceeds the 100% Threshold,
then additional incentive compensation will be earned on a linear basis.

     Any  bonuses  earned  under  this  Plan  will  be  paid  subsequent  to the
completion of the 2001 fiscal year's financial statement audit.San Mateo, CA
                                                                   July 14, 2000
                                                                   $175,000

                             SECURED PROMISSORY NOTE

For  value  received,  the  undersigned,  Hypermedia  Communications,   Inc.,  a
California  corporation  ("Borrower") promises to pay MK GVD Fund ("Lender") the
principal sum of one hundred  seventy-five  thousand  dollars  ($175,000),  with
interest  from the date hereof at a rate of ten percent  (10%) per annum,  which
amount shall be secured by all of the assets of Borrower.  Said principal  shall
be due and  payable on demand by Lender,  which  demand may be made at any time,
but in no event shall the principal be paid later than one hundred  eighty (180)
days after the date of this Note.  This Note may be prepaid at any time  without
penalty.

In the event of liquidation,  merger, sale, or winding up of the company, Lender
shall be entitled to receive,  prior and in  preference  to any other holders of
debt or equity securities,  (except as provided in item 1. below), the principal
value of this Note plus accrued interest.

The  following is a statement of the rights of the Borrower of this Note and the
conditions to which this Note is subject,  to which the Borrower and Lender,  by
the acceptance of this Note agree:

         1.  Security  Interest  - Borrower  hereby  grants to Lender a security
interest  in all assets of  Borrower  to secure  repayment  of the  indebtedness
represented  by this Note.  Borrower  hereby  represents and agrees that it will
take all actions  contemplated above including the execution of a UCC1 financing
statement,  which for the purposes of such  execution,  Borrower hereby appoints
Lender as its attorney-in-fact to execute such UCC1 financing statement.

         2. Attorneys' Fees - If any action or proceeding  shall be commenced to
enforce  this Note or any right  arising  in  connection  with  this  Note,  the
prevailing  party in such action or proceeding shall be entitled to recover from
the other party the reasonable  attorneys' fees, costs, and expenses incurred by
such  prevailing   party  in  connection  with  such  action  or  proceeding  or
negotiation to avoid such action or proceeding.  In the event that any provision
of this Note should be deemed unlawful or unenforceable, such provision shall be
struck and the remainder  hereof shall be enforced to the fullest  extent of the
law.

         3.  Governing  Law - This Note is  issued  in and shall be  interpreted
under the laws of the State of California.

Issued this 14 day of July, 2000.

                                           Hypermedia Communications, Inc.

                                           By: __________________

                                           Title: ________________San Mateo, CA
                                                                   July 31, 2000
                                                                   $175,000

                             SECURED PROMISSORY NOTE

For  value  received,  the  undersigned,  Hypermedia  Communications,   Inc.,  a
California  corporation  ("Borrower") promises to pay MK GVD Fund ("Lender") the
principal sum of one hundred  seventy-five  thousand  dollars  ($175,000),  with
interest  from the date hereof at a rate of ten percent  (10%) per annum,  which
amount shall be secured by all of the assets of Borrower.  Said principal  shall
be due and  payable on demand by Lender,  which  demand may be made at any time,
but in no event shall the principal be paid later than one hundred  eighty (180)
days after the date of this Note.  This Note may be prepaid at any time  without
penalty.

In the event of liquidation,  merger, sale, or winding up of the company, Lender
shall be entitled to receive,  prior and in  preference  to any other holders of
debt or equity securities,  (except as provided in item 1. below), the principal
value of this Note plus accrued interest.

The  following is a statement of the rights of the Borrower of this Note and the
conditions to which this Note is subject,  to which the Borrower and Lender,  by
the acceptance of this Note agree:

         1.  Security  Interest  - Borrower  hereby  grants to Lender a security
interest  in all assets of  Borrower  to secure  repayment  of the  indebtedness
represented  by this Note.  Borrower  hereby  represents and agrees that it will
take all actions  contemplated above including the execution of a UCC1 financing
statement,  which for the purposes of such  execution,  Borrower hereby appoints
Lender as its attorney-in-fact to execute such UCC1 financing statement.

         2. Attorneys' Fees - If any action or proceeding  shall be commenced to
enforce  this Note or any right  arising  in  connection  with  this  Note,  the
prevailing  party in such action or proceeding shall be entitled to recover from
the other party the reasonable  attorneys' fees, costs, and expenses incurred by
such  prevailing   party  in  connection  with  such  action  or  proceeding  or
negotiation to avoid such action or proceeding.  In the event that any provision
of this Note should be deemed unlawful or unenforceable, such provision shall be
struck and the remainder  hereof shall be enforced to the fullest  extent of the
law.

         3.  Governing  Law - This Note is  issued  in and shall be  interpreted
under the laws of the State of California.

Issued this 31 day of July, 2000.

                                         Hypermedia Communications, Inc.

                                         By: __________________

                                         Title: ________________San Mateo, CA
                                                                  August 2, 2000
                                                                  $350,000

                             SECURED PROMISSORY NOTE

For  value  received,  the  undersigned,  Hypermedia  Communications,   Inc.,  a
California  corporation  ("Borrower") promises to pay MK GVD Fund ("Lender") the
principal sum of three hundred fifty thousand dollars ($350,000),  with interest
from the date  hereof at a rate of ten  percent  (10%) per annum,  which  amount
shall be secured by all of the assets of Borrower.  Said principal  shall be due
and payable on demand by Lender, which demand may be made at any time, but in no
event shall the principal be paid later than one hundred eighty (180) days after
the date of this Note. This Note may be prepaid at any time without penalty.

In the event of liquidation,  merger, sale, or winding up of the company, Lender
shall be entitled to receive,  prior and in  preference  to any other holders of
debt or equity securities,  (except as provided in item 1. below), the principal
value of this Note plus accrued interest.

The  following is a statement of the rights of the Borrower of this Note and the
conditions to which this Note is subject,  to which the Borrower and Lender,  by
the acceptance of this Note agree:

         1.  Security  Interest  - Borrower  hereby  grants to Lender a security
interest  in all assets of  Borrower  to secure  repayment  of the  indebtedness
represented  by this Note.  Borrower  hereby  represents and agrees that it will
take all actions  contemplated above including the execution of a UCC1 financing
statement,  which for the purposes of such  execution,  Borrower hereby appoints
Lender as its attorney-in-fact to execute such UCC1 financing statement.

         2. Attorneys' Fees - If any action or proceeding  shall be commenced to
enforce  this Note or any right  arising  in  connection  with  this  Note,  the
prevailing  party in such action or proceeding shall be entitled to recover from
the other party the reasonable  attorneys' fees, costs, and expenses incurred by
such  prevailing   party  in  connection  with  such  action  or  proceeding  or
negotiation to avoid such action or proceeding.  In the event that any provision
of this Note should be deemed unlawful or unenforceable, such provision shall be
struck and the remainder  hereof shall be enforced to the fullest  extent of the
law.

         3.  Governing  Law - This Note is  issued  in and shall be  interpreted
under the laws of the State of California.

Issued this 2 day of August, 2000.

                                              Hypermedia Communications, Inc.

                                              By: __________________

                                              Title: ________________

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