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Exhibit 10.30  

  
 

    EXECUTIVE EMPLOYMENT AGREEMENT    
  

    AGREEMENT made as of the 8th day of May, 2000, by and between MIDWAY
GAMES INC., a Delaware corporation (the "Corporation"), and DEBORAH K. FULTON ("Executive"). 

 
 

W I T N E S S E T H:    
  

    WHEREAS, the Corporation desires to employ Executive and Executive is willing to undertake such employment on
the terms and subject to the conditions hereinafter set forth. 

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

    1.  Employment; Duties. The Corporation hereby employs Executive to perform such duties on behalf of the Corporation and
its affiliates as the President or the Board of Directors of the Corporation may from time to time determine relating to the legal function of the Corporation and other matters appropriate for a
senior executive of the Corporation. 

    2.  Acceptance and Loyalty. Executive hereby accepts such employment and agrees that throughout the period of her
employment hereunder, she will devote her full time, attention, knowledge and skills, faithfully, diligently and to the best of her ability, in furtherance of the business of the Corporation and will
perform the duties assigned to her pursuant to Section 1 hereof. Executive shall perform all duties and responsibilities in a professional manner consistent with the skill, competence and
efficiency expected of an executive employee performing the duties assigned to Executive and subject to the direction and control of the President and the Board of Directors of the Corporation.
Executive will do such traveling as may be reasonably required of her in the performance of her obligations hereunder. Executive shall at all times be subject to, observe and carry out such rules,
regulations, policies, directions and restrictions as the Corporation shall from time to time establish. During her employment hereunder, Executive shall not, without the written approval of the
President or the Board of Directors of the Corporation first had and obtained in each instance, directly or indirectly, accept employment or compensation from or perform services of any nature for,
any business enterprise other than the Corporation or any of its subsidiaries or affiliates. During Executive's employment hereunder, Executive
shall not be entitled to additional compensation for serving in any office, including as a director, of the Corporation or any of its subsidiaries or affiliates to which she may be elected. 

    3.  Term. The term of Executive's employment hereunder shall commence on the date hereof and terminate on May 7,
2002 (the "Original Term"); provided, however, that the term of Executive's employment shall be deemed automatically extended from time to time such that the term of such employment shall at no time
be less than two years (the "Extended Term"); and provided further, that Executive's services hereunder may be terminated (i) by either party effective upon expiration of the Original Term or
the Extended Term upon written notice from the terminating party to the other party dated and received at least two years prior to the respective termination date or (ii) by the Corporation
effective upon 30 days' prior written notice if such termination is for "cause" as defined in subsection 8.3 of this Agreement. The Original Term and the Extended Term are hereafter
collectively referred to as the "Term" and each year of the Term is hereafter referred to as an "Employment Year." 

    4.  Compensation and Benefits. 

    4.1 The
Corporation shall pay to Executive as compensation for her services and agreements hereunder a base salary at the rate of $180,000 per annum, or such greater
amount as the Board of Directors of the Corporation shall from time to time determine. Base salary shall be payable in equal installments in accordance with the Corporation's normal payroll policy,
subject to payroll taxes and withholding requirements. 

 

    4.2 The Corporation shall grant to Executive, pursuant to approval by the Corporation's Stock Option Committee, options to purchase 30,000 (thirty thousand) shares of
common stock of the Corporation which may be exercised pursuant to the Corporation's stock option plan. The exercise price of such options shall be the closing price of the Corporation's stock on the
date such grant is approved by the Corporation's Stock Option Committee. 

    4.3 Executive
shall be entitled to participate, to the extent she is eligible under the terms and conditions thereof, in any bonus, pension, retirement, disability,
hospitalization, insurance, medical service, or other employee benefit plan which is generally available to executive employees of the Corporation and which may be in effect from time to time during
the period of her employment hereunder, including the Exec-U-Care insurance program. The Corporation shall be under no obligation to institute or continue the existence of any
such employee benefit plan. In addition, the Corporation shall provide Executive with Four Hundred Thousand Dollars ($400,000) in additional life insurance coverage, payable to such beneficiary as
Executive shall designate from time to time, in such form and manner as the Corporation and Executive shall determine as appropriate in order to minimize the income tax consequences of such coverage
to Executive. If such insurance is not available at an annual premium of
$3,000 or less, then the Corporation shall provide such lesser amount of insurance as is available at an annual premium of $3,000. 

    5.  Business Expenses. The Corporation shall reimburse Executive for all authorized expenses reasonably incurred by her
in accordance with the Corporation's "Travel and Entertainment Policy and Procedure," and any amendments thereof that the Corporation may adopt during the Term hereof. 

    6.  Vacation. Executive shall be entitled to four weeks paid vacation during each Employment Year. Any such vacations
are to be taken at times mutually agreeable to Executive and the President of the Corporation. Vacation time shall not be accumulated from year to year, unless Executive is requested by the President
of the Corporation to forego a vacation during any Employment Year. 

    7.  Key-Man Life Insurance. The Corporation may purchase and maintain life insurance covering the life of
Executive ("Key-man Insurance") in an amount determined by the Corporation. The Corporation shall be the sole owner and beneficiary of the Key-man Insurance and may apply to
the payment of premiums thereunder any dividends declared and paid thereon. Executive shall submit herself to such physical examinations as the President of the Corporation may deem necessary or
desirable in connection with the purchase and maintenance of the Key-man Insurance. 

    8.  Non-Competition and Non-Raiding. In consideration of the Corporation's entering into this
Agreement: 

    8.1 Executive
agrees that during the Term hereof and for a period of one year after termination for "cause" or after Executive terminates her employment without the
written consent of the Corporation, she will not, directly or indirectly, without the prior written consent of the Corporation, own, manage, operate, join, control, participate in, perform any
services for, invest in, or otherwise be connected with, in any manner, whether as an officer, director, employee, consultant, partner, investor or otherwise, any business entity which is engaged in
the design, importation, manufacture and/or sale of coin-operated video games, home video games or any business entity which is engaged in any other business in which the Corporation or
any affiliate of the Corporation is engaged. Nothing herein contained shall be deemed to prohibit Executive from investing her funds in securities of a company if the securities of such company are
listed for trading on a national stock exchange or traded in the over-the-counter market and Executive's holdings therein represent less than five percent of the total number
of shares or principal amount of other securities of such company outstanding. 

    8.2 Executive
agrees that during the Term hereof and for a period of one year thereafter, she will not, directly or indirectly, without the prior written consent of the
Corporation, induce or 

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influence, or seek to induce or influence, any person who is engaged by the Corporation or any affiliate of the Corporation as an employee, agent, independent contractor or otherwise, to terminate her
employment or engagement, nor shall Executive directly or indirectly, through any other person, firm or corporation, employ or engage, or solicit for employment or engagement, or advise or recommend
to any other person or entity that such person or entity employ or engage or solicit for employment or engagement, any person or entity employed or engaged by the Corporation or any affiliate of the
Corporation. 

    8.3 For
purposes of this Agreement, "cause" means (i) conviction (pursuant to a final or non-appealable judgment) of a felony or any other crime
involving fraud, larceny or dishonesty; (ii) failure and refusal to follow a reasonable direction of the Chief Executive Officer, the President or the Board of Directors of the Corporation
after notice in writing of such failure or refusal and a cure period of ten days thereafter; or (iii) commission of any dishonest, willful or grossly negligent act which has or is reasonably
likely to have a material adverse effect on the Corporation or its customer or trade relationships. 

    8.4 In
the event that Executive is terminated for reasons other than "cause," then, for such period (not to exceed one year after termination) as the Corporation either
continues to pay the Executive's base salary to her or has made a lump-sum payment to Executive pursuant to Section 12 hereof, Executive agrees that she will not, directly or
indirectly, without the prior written consent of the Corporation, take any of the actions prohibited under subsection 8.1 of this Agreement. 

    8.5 Executive
acknowledges that the provisions of this Paragraph 8 are reasonable and necessary for the protection of the Corporation. In the event that any
provision of this Paragraph 8, including any sentence, clause or part hereof, shall be deemed contrary to law or invalid or unenforceable in any respect by a court of competent jurisdiction,
the remaining provisions shall not be affected, but shall, subject to the discretion of such court, remain in full force and effect and any invalid and unenforceable provisions shall be deemed,
without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable. 

    9.  Confidentiality Agreement. 

    9.1 As
used herein, the term "Confidential Information" shall mean any and all information of the Corporation and of its affiliates (for purposes of this paragraph, the
Corporation's affiliates shall be deemed included within the meaning of "Corporation"), including, but not limited to, all data, compilations, programs, devices, strategies, or methods concerning or
related to (i) the Corporation's finances, financial condition, results of operations, employee relations, amounts of compensation paid to officers and employees and any other data or
information relating to the internal affairs of the Corporation and its operations; (ii) the terms and conditions (including prices) of sales and offers of sales of the Corporation's products
and services; (iii) the terms, conditions and current status of the Corporation's agreements and relationship with any customer or supplier; (iv) the customer and supplier lists and the
identities and business preferences of the Corporation's actual and prospective customers and suppliers or any employee or agent thereof with whom the Corporation communicates; (v) the trade
secrets, manufacturing and operating techniques, price data, costs, methods, systems, plans, procedures, formulas, processes, hardware, software, machines, inventions, designs, drawings, artwork,
blueprints, specifications, tools, skills, ideas, and strategic plans possessed, developed, accumulated or acquired by the Corporation; (vi) any communications between the Corporation, its
officers, directors, stockholders, or employees, and any attorney retained by the Corporation for any purpose, or any person retained or employed by such attorney for the purpose of assisting such
attorney in his or her representation of the Corporation; (vii) any other information and knowledge with respect to all 

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products developed or in any stage of development by the Corporation; (viii) the abilities and specialized training or experience of others who as employees or consultants of the Corporation
during the Term hereof have engaged in the design or development of any such products; and (ix) any other matter or thing, whether or not recorded on any medium, (a) by which the
Corporation derives actual or potential economic value from such matter or thing being not generally known to other persons or entities who might obtain economic value from its disclosure or use, or
(b) which gives the Corporation an opportunity to obtain an advantage over its competitors who do not know or use the same. 

    9.2 Executive
acknowledges and agrees that the Corporation is engaged in highly competitive businesses and has expended, or will expend, significant sums of money and
has invested, or will invest, a substantial amount of time to develop and maintain the secrecy of the Confidential Information. The Corporation has thus obtained, or will obtain, a valuable economic
asset which has enabled, or will enable, it to develop an extensive reputation and to establish long-term business relationships with its suppliers and customers. If such Confidential
Information were disclosed to another person or entity or used for the benefit of anyone other than the Corporation, the Corporation would suffer irreparable harm, loss and damage. Accordingly,
Executive acknowledges and agrees that, unless the Confidential Information becomes publicly known through legitimate origins not involving an act or omission by Executive: 

     (i) the
Confidential Information is, and at all times hereafter shall remain, the sole property of the Corporation; 

    (ii) Executive
shall use her best efforts and the utmost diligence to guard and protect the Confidential Information from disclosure to any competitor, customer or
supplier of the Corporation or any other person, firm, corporation or other entity; 

    (iii) unless
the Corporation gives Executive prior express written permission, during her employment and thereafter, Executive shall not use for her own benefit, or
divulge to any competitor or customer or any other person, firm, corporation, or other entity, any of the Confidential Information which Executive may obtain, learn about, develop or be entrusted with
as a result of Executive's employment by the Corporation; and 

    (iv) except
in the ordinary course of the Corporation's business, Executive shall not seek or accept any Confidential Information from any former, present or future
employee of the Corporation. 

    9.3 Executive
also acknowledges and agrees that all documentary and tangible Confidential Information including, without limitation, such Confidential Information as
Executive has committed to memory, is supplied or made available by the Corporation to the Executive solely to assist her in performing her services under this Agreement. Executive further agrees that
after her employment with the Corporation is terminated for any reason: 

     (i) Executive
shall not remove from the property of the Corporation and shall immediately return to the Corporation, all documentary or tangible Confidential
Information in her possession, custody, or control and not make or keep any copies, notes, abstracts, summaries, tapes or other record of any type of Confidential Information; and 

    (ii) Executive
shall immediately return to the Corporation any and all other property of the Corporation in her possession, custody or control, including, without
limitation, any and all keys, security cards, passes, credit cards and marketing literature. 

    10. Invention Disclosure. Any invention, improvement, design, development or discovery conceived, developed, created or
made by Executive alone or with others, during the period of her employment hereunder and applicable to the business of the Corporation or its affiliates, whether or 

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not patentable or registrable, shall become the sole and exclusive property of the Corporation. Executive hereby assigns to the Corporation, all of her rights to any "intellectual material" created or
developed by her during the course of her employment. As used herein, "intellectual material" shall include, but shall not be limited to, ideas, titles, themes, production ideas, methods of
presentation, artistic renderings, sketches, plots, music, lyrics, dialogue, phrases, slogans, catch words, characters, names and similar literary, dramatic and musical material, trade names,
trademarks and service marks and all copyrightable expressions in audio visual works, computer software, electronic circuitry and all mask works for integrated circuits. Executive shall disclose the
intellectual material promptly and completely to the Corporation and shall, during the period of her employment hereunder and at any time and from time to time hereafter (a) execute all
documents requested by the Corporation for vesting in the Corporation or any of its affiliates the entire right, title and interest in and to the same, (b) execute all documents requested by
the Corporation for filing and prosecuting such applications for patents, trademarks and/or copyrights as the Corporation, in its sole discretion, may desire to prosecute, and (c) give the
Corporation all assistance it reasonably requires, including the giving of testimony in any suit, action or proceeding, in order to obtain, maintain and protect the Corporation's right therein and
thereto. If any such assistance is required following the termination of this Agreement, the Corporation shall reimburse Executive for her time and the reasonable expenses incurred by her in rendering
such assistance. Anything contained in this paragraph to the contrary
notwithstanding, this paragraph does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the Corporation or its affiliates was used and which was
developed entirely on the Executive's own time, unless (d) the invention relates: (i) to the business of the Corporation or its affiliates, or (ii) to the Corporation's or any of
its affiliates' actual or demonstrably anticipated research or development, or (e) the invention results from any work performed by the Executive for the Corporation or its affiliates. 

    11. Remedies. Executive acknowledges and agrees that the business of the Corporation is highly competitive and that
violation of any of the covenants provided for in Paragraphs 8, 9 and 10 of this Agreement would cause immediate, immeasurable and irreparable harm, loss and damage to the Corporation not adequately
compensable by a monetary award. Accordingly, Executive agrees, without limiting any of the other remedies available to the Corporation, that any violation of said covenants, or any one of them, may
be enjoined or restrained by any court of competent jurisdiction, and that any temporary restraining order or emergency, preliminary or final injunctions may be issued by any court of competent
jurisdiction, without notice and without bond. In the event any proceedings are commenced by the Corporation against Executive for any actual or threatened violation of any of said covenants and if
the Corporation prevails in such litigation, then, Executive shall be liable to the Corporation for, and shall pay to the Corporation, all costs and expenses of any kind, including reasonable
attorneys' fees, which the Corporation may incur in connection with such proceedings. 

    12. Change of Control. 

    12.1 If
at any time during the term of this Agreement, individuals who presently constitute the Board of Directors of the Corporation, or who have been recommended for
election to the Board by two-thirds of the Board consisting of individuals who are either presently on the Board or such recommended successors cease for any reason to constitute at least
a majority of such Board (such event being hereafter referred to as a "Change of Control") and Executive gives written notice to the Corporation within 60 days after such Change of Control of
her election to terminate her employment hereunder, the Corporation shall pay to Executive within 15 days after Executive's delivery of such notice, as severance pay and liquidated damages, in
lieu of any other rights or remedies which might otherwise be available to her under this Agreement, and without mitigation of any kind or amount, whether or not Executive shall seek or accept other
employment, a lump sum payment equal in amount two times the annual base salary payable to Executive pursuant to subsection 4.1 of this Agreement. In addition, all unexpired options to purchase
securities of the 

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Corporation granted to Executive before the Change of Control shall, if unvested, vest fully on the date of the Change of Control, notwithstanding any vesting provisions of such options. The payments
provided for in this Section 12 shall be paid in full, without discount to present value. 

    12.2 If
it shall be determined that any amount payable under Section 12.1 by the Corporation to or for the benefit of Executive (a "Base Payment") would be
subject to the excise tax (the "Excise Tax")
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"), then Executive shall be entitled to receive an additional payment (the "Gross-Up Payment") in
an amount such that the net amount retained by Executive, after the calculation and deduction of any Excise Tax on the Base Payment shall be equal to the Base Payment, less any federal, state and
local income taxes. The Gross-Up Payment shall be reduced by income or Excise Tax withholding payments made by the Corporation to any federal, state, or local taxing authority with respect
to the Gross-Up Payment that was not deducted from compensation payable to the Executive. All determinations required to be made under this Section 12.2, including whether and when
a Gross-Up Payment is required, the amount of such Gross-Up Payment, and the assumptions to be utilized in arriving at such determination, except as specified above, shall be
made by the Corporation's auditors (the "Accounting Firm"), which shall provide detailed supporting calculations both to the Corporation and Executive within fifteen business days after the receipt of
notice from Executive that there should be a Gross-Up Payment. The determination of tax liability made by the Accounting Firm shall be subject to review by Executive's tax advisor, and, if
Executive's tax advisor does not agree with the determination reached by the Accounting Firm, then the Accounting Firm and Executive's tax advisor shall jointly designate a nationally recognized
public accounting firm, which shall make the determination. All fees and expenses of the accountants retained by the Corporation or jointly designated and retained shall be borne by the Corporation.
Any determination by a jointly designated public accounting firm shall be binding upon the Corporation and Executive. 

    13. Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to Executive's
employment with the Company and no amendment or modification hereof shall be valid or binding unless made in writing and signed by the party against whom enforcement thereof is sought. 

    14. Notices. Any notice required, permitted or desired to be given pursuant to any of the provisions of this Agreement
shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by telephone facsimile or sent by certified mail, return receipt requested, or sent by
responsible overnight delivery service, postage and fees prepaid, to the parties hereto at their respective addresses set forth below. Either of the parties hereto may at any time and from time to
time change the address to which notice shall be sent hereunder by notice to the other party given under this Section 14. The date of the giving of any notice sent by mail shall be three
business days following the date of the posting of the mail, if delivered in person, the date delivered in person, if sent by overnight delivery service, the next business day following delivery to an
overnight delivery service or if sent by telephone facsimile, the date sent by telephone facsimile. 

If
to the Corporation: 

3401
North California Avenue

Chicago, IL 60618

Facsimile: 312-961-1099

Attn: Mr. Neil D. Nicastro, President 

If
to Executive: 

13
Spring Lane

Barrington Hills, IL 60010 

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    15. No Assignment. Neither this Agreement nor the right to receive any payments hereunder may be assigned by Executive.
This Agreement shall be binding upon Executive, her heirs, executors and administrators and upon the Corporation, its successors and assigns. 

    16. No Waiver. No course of dealing nor any delay on the part of the Corporation in exercising any rights hereunder
shall operate as a waiver of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other breach or default. 

    17. Governing Law. This Agreement shall be governed, interpreted and construed in accordance with the substantive laws
of the State of Illinois applicable to agreements entered into and to be performed entirely therein. 

    18. Severability. If any clause, paragraph, section or part of this Agreement shall be held or declared to be void,
invalid or illegal, for any reason, by any arbitrator or court of competent jurisdiction, such provision shall be ineffective but shall not in any way invalidate or affect any other clause, paragraph,
section or part of this Agreement. The parties intend that all clauses, paragraphs, sections or parts of this Agreement shall be enforceable to the fullest extent permitted by law. 

    19. Affiliate. As used in this Agreement, "affiliate" means any person or entity controlled by or under common control
with the Corporation. 

    20. Counterparts. This Agreement may be executed in one or more counterparts, each of which counterparts, when taken
together, shall constitute but one and the same agreement. 

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year first above written. 

	 	 	MIDWAY GAMES INC.
	

 	
 	

By:	
 	

/s/ NEIL D. NICASTRO   
 Neil D. Nicastro, President
	

 	
 	

By:	
 	

/s/ DEBORAH K. FULTON   
 Deborah K. Fulton

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EXECUTIVE EMPLOYMENT AGREEMENT

W I T N E S S E T HPrepared by MERRILL CORPORATION

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Exhibit 10.32    
  

 
 

THIRD AMENDMENT DATED AS OF AUGUST 15, 2001 TO CREDIT
  AGREEMENT DATED AS OF SEPTEMBER 20, 2000    
  

    This Third Amendment dated as of August 15, 2001 to Credit Agreement dated as of September 20, 2000 (this
"Amendment") is made by and among MIDWAY GAMES INC., a Delaware corporation (the "Company"), the
financial institutions parties hereto (the "Banks"), and BANK OF AMERICA, N.A., as letter of credit issuing bank and as agent for the Banks (in
its capacity as agent, together with any successors and assigns, the "Agent"). Terms used but not defined herein have the meanings specified in the
Credit Agreement referenced below. 

W I T N E S S E T H: 

    WHEREAS,
the Company, the Banks, the Issuing Bank and the Agent are parties to that certain Credit Agreement dated as of September 20, 2000 (as amended or modified and in
effect on the date hereof, the "Credit Agreement"); 

    WHEREAS,
the Company has requested that the Banks, the Issuing Bank and the Agent agree to amend or modify the Credit Agreement as set forth herein; and 

    WHEREAS,
the Agent, the Banks and the Issuing Bank are willing to amend and modify the Credit Agreement, subject to the terms and conditions contained herein. 

    NOW,
THEREFORE, in consideration of the premises, the mutual covenants herein contained and other good and valuable consideration (the receipt, adequacy and sufficiency of which are
hereby acknowledged), the parties hereto, intending legally to be bound, hereby agree as follows: 

 
 

SECTION 1
  AMENDMENTS TO THE CREDIT AGREEMENT    
  

    The Credit Agreement is hereby amended as follows: 

    (a) Section 1.1
of the Credit Agreement is amended so that definition of "Applicable Margin" reads in its
entirety as follows: 

"Applicable Margin," as to any LIBO Rate Loan, means "3.00% per annum" and, as to Base Rate Loan, means "0.25% per annum." 

    (b) Section 1.1
of the Credit Agreement is amended so that the definition of "Consolidated Net Worth" reads in its entirety as follows: 

"Consolidated Net Worth" means as of any date of determination, shareholders' equity for the Company and its Subsidiaries as of that date on a
consolidated basis determined in accordance with GAAP; provided, however, such shareholders' equity shall be deemed to include all redeemable preferred stock of the Company and its Subsidiaries. 

    (c) Section 1.1
of the Credit Agreement is further amended so that definition of "Revolving Termination Date"
reads in its entirety as follows: 

"Revolving Termination Date" means the earlier to occur of: (a) March 31, 2003 and (b) the date on which the Total Commitment
terminates in accordance with the provisions of this Agreement. 

    (d) Section 1.1
of the Credit Agreement is further amended so that definition of "L/C Commitment" reads in its
entirety as follows: 

"L/C Commitment" means the commitment of the Issuing Bank to Issue, and the commitment of the Banks severally to participate in, Letters of Credit
(including the Existing Bank of 

 

America Letters of Credit) from time to time Issued or outstanding under Article III, in an aggregate amount not to exceed the following amounts during the following periods: 

	PERIOD
	 	AMOUNT

	Prior to March 30, 2001	 	$	40,000,000
	March 31, 2001 through August 15, 2001	 	$	3,500,000
	August 15, 2001 and thereafter	 	$	15,000,000

as
the same shall be reduced as a result of a reduction in the L/C Commitment pursuant to Section 2.5; it being understood that the L/C Commitment is a part of the Total Commitment, rather than
a separate, independent commitment. 

    (e) Section 2.1
of the Credit Agreement is amended to read in its entirety as follows: 

    2.1. Amounts and Terms of Commitments. Each Bank severally agrees, on the terms and conditions set forth herein, to make
loans to the Company (each such loan, a "Revolving Loan") from time to time on any Business Day during the period from the Closing Date to the Revolving
Termination Date; provided, however, that, after giving effect to any Borrowing of Revolving Loans, the
Effective Amount of all Revolving Loans plus the Effective Amount of all L/C Obligations, shall not at any time exceed the following amounts during the following periods (any such amount with respect
to any such period, as the same may be reduced pursuant to Section 2.5 or 2.7 being herein called, the "Total Commitment"): 

	PERIOD
	 	AMOUNT

	Closing Date through December 30, 2000	 	$	55,000,000
	December 31, 2000 through March 30, 2001	 	$	40,000,000
	March 31, 2001 through June 30, 2002	 	$	15,000,000
	July 1, 2002 through January 31, 2003	 	$	40,000,000
	February 1, 2003 and thereafter	 	$	15,000,000

provided further, that the Effective Amount of the Revolving Loans of any Bank plus the participation of
such Bank in the Effective Amount of all L/C Obligations shall not at any time exceed such Bank's Pro Rata Share of the Total Commitment. Within the limits of each Bank's Commitment, and subject to
the other terms and conditions hereof, the Company may borrow under this Section 2.1, prepay under Section 2.6 and reborrow under this Section 2.1. 

    (f)  Section 2.9(a)
of the Credit Agreement is amended to read in its entirety as follows: 

    2.9  Interest. 

    (a) Each
Revolving Loan shall bear interest on the outstanding principal amount thereof from the applicable Borrowing Date at a rate per annum equal to the applicable
LIBO Rate or the Base Rate, as the case may be (and subject to the Company's right to convert to other Types of Loans under Section 2.4), plus
the Applicable Margin. 

    (g) Section 2.10
of the Credit Agreement is amended by replacing "0.25%" with "0.375%" in the first sentence thereof. 

    (h) Article II
is further amended by adding Section 2.15 thereto as follows: 

    2.15 Termination Fee. If, pursuant to Section 2.5, the Total Commitment is terminated prior to January 31,
2002 following the sale of all or substantially all of the Company's assets or the sale of all or substantially all of the Company's stock or a Change of Control, then, concurrently with such
termination, the Company shall pay to each Bank a termination fee equal to 0.25% of the such Bank's Commitment then in effect (such fees being in addition to all other amounts). 

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    (i)  Section 3.8(a)
of the Credit Agreement is amended to read in its entirety as follows: 

    3.8 Letter of Credit Fees. 

    (a) The
Company shall pay to the Agent for the ratable account of each of the Banks a letter of credit fee with respect to the Letters of Credit, such fee to be equal
to (i) in the case of each standby Letter of Credit, 1.75% per annum through August 15, 2001 and 3.00% per annum thereafter, in each instance on the average daily maximum amount
available to be drawn on such standby Letter of Credit, and (ii) in the case of each commercial or trade Letter of Credit, through August 15, 2001, such fees customarily charged by the
Issuing Bank in connection with the issuance, negotiation and payment of letters of credit and drafts drawn thereunder, and after August 15, 2001, 0.60% per annum on the average daily maximum
amount available to be drawn on such commercial or trade Letter of Credit. Such fees shall be computed on a quarterly basis in arrears on the last Business Day of each calendar quarter based upon
Letters of Credit outstanding for that quarter, as calculated by the Agent. Such letter of credit fees shall be due and payable quarterly in arrears on the last Business Day of each calendar quarter
during which Letters of Credit are outstanding, commencing on the first such quarterly date to occur after the Closing Date, through the Revolving Termination Date (or such later date upon which the
outstanding Letters of Credit shall expire), with the final payment to be made on the Revolving Termination Date (or such later expiration date). 

    (j)  Section 7.1(b)
of the Credit Agreement is amended to read in its entirety as follows: 

    (b) as
soon as available, but not later than 30 days after the end of each calendar month (commencing with the calendar month ended July 31, 2001), a copy
of the unaudited consolidated and consolidating balance sheets of the Company and its Subsidiaries as of the end of such calendar month and the related consolidated statements of income for the period
commencing on the first day of the year and ending on the last day of such calendar month, and certified by a Responsible Officer as fairly presenting, in accordance with GAAP (subject to ordinary,
good faith year-end audit adjustments and the absence of complete footnotes), the financial position and the results of operations of the Company and the Subsidiaries; and 

    (k) Section 8.15
of the Credit Agreement is amended to read in its entirety as follows: 

    8.15 Clean-up/Clean Down Provisions. Notwithstanding any other provision contained in this Agreement to the
contrary, the Company agrees that from March 1 of each Fiscal Year during the term of this Agreement, commencing March 1, 2002, and for a period of ninety (90) consecutive days
thereafter the Effective Amount of all Revolving Loans shall be zero (0) and the Effective Amount of the outstanding Letters of Credit that are not Cash Collateralized shall be less than or
equal to (i) $10,000,000 for such periods prior to August 15, 2001 and (ii) $7,000,000 for such periods after August 15, 2001. The Company agrees to make any prepayment of
the Revolving Loans or the L/C Obligations which may be necessary to comply with the terms of this Section 8.15. 

    (l)  Section 9.1
of the Credit Agreement is amended to read in its entirety as follows: 

    9.1
Minimum Net Worth. The Company shall not permit at any time its Consolidated Net Worth to be less than the following amounts for
the following periods: 

	PERIOD
	 	AMOUNT

	Prior to March 31, 2001	 	$	130,000,000
	April 1, 2001 through August 15, 2001	 	$	90,000,000
	August 15, 2001 through December 30, 2002	 	$	100,000,000
	December 31, 2002 and thereafter	 	$	150,000,000

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    (m) Section 9.2
of the Credit Agreement is amended to read in its entirety as follows: 

    9.2 Minimum Liquidity. The Company shall not permit at all times its Liquidity to be less than (i) $5,000,000
through August 15, 2001, and (ii) $10,000,000 thereafter. For purposes hereof, "Liquidity" means the sum of (i) the aggregate
unused Commitments under this Agreement to the extent then available to the Company plus (ii) the aggregate of all nonrestricted and unencumbered
cash and cash equivalents of the Company and its Subsidiaries. 

    (n) Section 9.3
of the Credit Agreement is amended to read in its entirety as follows: 

    9.3
Quick Ratio. As of the end of any month during the following periods, the Company will not permit its Quick Ratio to be less than
the ratio applicable to such month as follows: 

	PERIOD
	 	RATIO

	Prior to October 31, 2000	 	1.50
	Month of November 2000	 	2.50
	December 1, 2000 through June 30, 2001	 	10.00
	July 1, 2001 through January 31, 2002	 	3.00
	February 1, 2002 through June 30, 2002	 	5.00
	July 1, 2002 through January 31, 2003	 	3.00
	February 1, 2003 and thereafter	 	5.00

For
purposes hereof, "Quick Ratio" means the ratio of (i) the aggregate accounts receivable of the Company and its Subsidiaries net of reserves
for doubtful accounts consistent with the historical levels and past practices, to (ii) the aggregate Effective Amount of Revolving Loans (and, prior to March 31, 2001, L/C Obligations)
under this Agreement. 

    (o) Schedule I
to the Credit Agreement is amended to read in its entirety as set forth in Schedule I attached hereto. The Commitment and the Pro Rata
Share of each Bank is as set forth on Schedule I attached hereto. To effect the change of the Pro Rata Share as set forth on Schedule I attached hereto, LaSalle Bank National Association
("LaSalle") hereby confirms that concurrently with the effectiveness of this Amendment, it shall be deemed to have purchased from Bank of America,
without recourse or warranty, an undivided interest and participation, to the extent of LaSalle's Pro Rata Share, in each Letter of Credit and the L/C Obligations with respect thereto. 

 
 

SECTION 3
  
    WARRANTIES    
  

    The Company warrants to the Agent and the Banks as of the date hereof that: 

    (a) After
giving effect to this Amendment, all representations and warranties contained in the Credit Agreement are true and correct in all material respects on and as
of the date hereof with the same effect as if made on the date hereof (except to the extent such representations and warranties expressly refer to an earlier date). 

    (b) After
giving effect to this Amendment, no Default or Event of Default has occurred and is continuing or will result from this Amendment. 

    (c) The
execution, delivery and performance by the Company of this Amendment and the New Notes (as defined below) have been duly authorized by all necessary corporate
and other action and do not and will not require any registration with, consent or approval of, notice to or action by, any Person (including any Governmental Authority) in order to be effective and
enforceable. 

4

 

    (d) The Credit Agreement as modified by this Amendment and the New Notes constitute the legal, valid and binding obligation of the Company, enforceable against it in
accordance with their terms as modified by the terms of this Amendment, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditor's rights generally or by equitable principles relating to enforceability. 

 
 

SECTION 4
  
    CONDITIONS PRECEDENT TO EFFECTIVENESS    
  

    This Amendment shall become effective as of August 15, 2001 (the "Effective Date"),  provided, however,
that the effectiveness of this Amendment is subject to the receipt by the Agent of the following, each appropriately completed and
duly executed as required and otherwise in form and substance reasonably satisfactory to the Agent: 

    (a) counterparts
of this Amendment, executed by the Company and the Banks; 

    (b) an
opinion of Deborah K. Fulton, in her capacity as Vice President, Secretary and General Counsel of the Company and addressed to the Agent and the Banks, in form
and substance satisfactory to the Agent; 

    (c) evidence
of the payment of (i) upfront fee to be shared by each Bank in proportion of such Bank's Pro Rata Share of $50,000, and (ii) all legal fees
and expenses of the Agent and the Banks heretofore billed to the Company; 

    (d) a
certificate of the Secretary or Assistant Secretary of the Company certifying as to (A) resolutions of the board of directors or members, as the case may
be, of the Company authorizing the execution, delivery and performance of this Amendment, and (B) the name(s) of the officer(s) of the Company authorized to sign this Amendment and the
documents related hereto on behalf of the Company and each Guarantor; 

    (e) the
Notes in the form of Exhibit A-1, A-2 attached hereto (collectively, "New
Notes"). 

    (f)  such
other instruments, agreements and documents as the Agent may reasonably request, in each case duly executed as required and otherwise in form and substance
reasonably satisfactory to the Agent; 

    Forthwith
upon the effectiveness of this Amendment, the Company shall make a combination of borrowings and/or prepayments so that after giving there effect thereto, the proportion of
the aggregate outstanding principal amount of the Revolving Loans of each Bank to the aggregate outstanding principal amount of all Revolving Loans of all Banks shall be equal to such Bank's Pro Rata
Share. 

 
 

SECTION 5
  
    GENERAL    
  

    (a) As
hereby modified, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified, approved and confirmed in all
respects. 

    (b) The
Company acknowledges and agrees that the execution and delivery by the Agent and the Banks of this Amendment shall not be deemed to create a course of dealing
or otherwise obligate the Agent or the Banks to execute similar modifications under the same or similar circumstances in the future. 

    (c) Upon
execution and delivery of this Amendment, this Amendment shall be binding upon and shall inure to the benefit of the Company, the Agent and the Banks and their
respective successors and assigns. 

5

 

    (d) The Company agrees to pay all fees and out-of-pocket costs and expenses of the Agent (including reasonable attorneys' fees and expenses of
counsel to the Agent and the Banks) in connection with the preparation and execution of this Amendment. 

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

    Delivered
at Chicago, Illinois, as of the date and year first above written. 

[SIGNATURES ON THE FOLLOWING PAGE] 

6

 

    IN WITNESS WHEREOF, the parties hereto have caused the execution and delivery hereof by their respective representatives thereunto duly authorized as of this 15th day of August, 2001. 

	

 	

COMPANY
	

 	
MIDWAY GAMES INC.
	

 	

By:	
 	

/s/ HAROLD H. BACH, JR.   

	 	Name:	 	Harold H. Bach, Jr.
	 	Title:	 	Executive Vice President—Chief Financial Officer
	

 	

AGENT
	

 	
BANK OF AMERICA, N.A., as Agent
	

 	

By:	
 	

/s/ DAVID A. JOHANSON   

	 	Name:	 	David A. Johanson
	 	Title:	 	Vice President
	

 	

ISSUING BANK
	

 	
BANK OF AMERICA, N.A., as Issuing Bank
	

 	

By:	
 	

/s/ THOMAS A. SMITH   

	 	Name:	 	Thomas A. Smith
	 	Title:	 	Vice President
	

 	

BANKS
	

 	
BANK OF AMERICA, N.A., as a Bank
	

 	

By:	
 	

/s/ THOMAS A. SMITH   

	 	Name:	 	Thomas A. Smith
	 	Title:	 	Vice President
	

 	
LASALLE BANK NATIONAL

ASSOCIATION as a Bank
	

 	

By:	
 	

/s/ DAVID A. CHAIKA   

	 	Name:	 	David A. Chaika
	 	Title:	 	Assistant Vice President

7

 
 
 

List of Schedules and Exhibits    
  

	 
	 	 

	Schedule 1	 	Prorata Shares of Total Commitment
	

Exhibit A-1	
 	

Amended and Restated Promissory Note
	

Exhibit A-2	
 	

Amended and Restated Promissory Note

8

QuickLinks

Exhibit 10.32

THIRD AMENDMENT DATED AS OF AUGUST 15, 2001 TO CREDIT AGREEMENT DATED AS OF SEPTEMBER 20, 2000

SECTION 1 AMENDMENTS TO THE CREDIT AGREEMENT

SECTION 3 WARRANTIES

SECTION 4 CONDITIONS PRECEDENT TO EFFECTIVENESS

SECTION 5 GENERAL

List of Schedules and Exhibits

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