FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
Exhibit 10.2
FIRST AMENDMENT TO AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT
LOAN AND SECURITY AGREEMENT
THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into as of July 31, 2007, by and among Lenders, XXXXX 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
Amended and Restated Loan and Security Agreement dated as of June 29, 2007 (as amended, modified or
supplemented from time to time, the “Loan Agreement”); 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. Amendments to Loan Agreement. Subject to the satisfaction of the conditions set
forth in Section 4 hereof, the Loan Agreement is amended as set forth herein:
(a) The definition of “ Availability” of Section 1.1 to the Loan Agreement is hereby amended
and restated in its entirety as follows:
“Availability” means, as of any date of determination, the amount that Borrowers are
entitled to borrow as Advances hereunder (after giving effect to all then outstanding Advances,
contingent reimbursement obligations with respect to outstanding Letters of Credit, and all
sublimits and reserves then applicable hereunder).
(b) Section 7.18(a) of the Loan Agreement is hereby amended and restated in its entirety as
follows:
(a) Fail to maintain (i) at all times from the Closing Date through July 31, 2007,
Qualified Cash plus Excess Availability of at least $20,000,000, (ii) at all times
from August 1, 2007, through September 30, 2007, Qualified Cash plus Excess
Availability of at least $5,000,000, (iii) at all times from October 1, 2007 through
December 31, 2007, Liquidity of at least $10,000,000 and (iv) at all times
thereafter, Qualified Cash plus Excess Availability of at least $20,000,000.
3. 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 (as amended prior to the date hereof).
4. 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.
5. 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.
-2-
(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.
6. 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.
-3-
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 /s/ Xxxxxx X. Xxxxxx Title Executive Vice President — Finance, Treasurer and Chief Financial Officer |
Signature page to First Amendment to Amended and Restated Loan and Security Agreement
| XXXXX FARGO FOOTHILL, INC., a California corporation, as Agent, as UK Security Trustee and as a Lender By /s/ Xxxxxxx Xxxxx Title Vice President |
Signature page to First Amendment to Amended and Restated Loan and Security Agreement
