EIGHTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
Exhibit 10.2
EIGHTEENTH AMENDMENT TO
LOAN AND SECURITY AGREEMENT
LOAN AND SECURITY AGREEMENT
THIS EIGHTEENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as
of October 10, 2006, 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”) (“MSD”;
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”); 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. Amendment to Loan Agreement. Subject to the satisfaction of the conditions set
forth in Section 4 hereof, the Loan Agreement is amended by amending and restating Schedules 5.8(b)
and 5.8(c) to the Loan Agreement in its entirety as set forth on Exhibit A hereto.
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.
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 as corrected by Exhibit A 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.
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
-2-
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, Chief Financial Officer and Treasurer | ||||||
Signature page to Eighteenth Amendment to Loan and Security Agreement
| XXXXX FARGO FOOTHILL, INC., | ||||||
| a California corporation, as Agent, as UK Security Trustee and as a Lender | ||||||
| By | /s/ Xxxxx Xxxxxxxxx | |||||
| Title Vice President | ||||||
Signature page to Eighteenth Amendment to Loan and Security Agreement
