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EXHIBIT 10.18
MIDWAY GAMES INC.
0000 Xxxxx Xxxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
March 5, 1998
Xx. Xxxx X. Xxxxxxxx
000 Xxxxx Xxxxxxxx Xxxx
Xxxx Xxxxxx, Xxxxxxxx 00000
Dear Xx. Xxxxxxxx:
Reference is made to your Employment Agreement dated July 1, 1996 (the
"Midway Employment Agreement") between Midway Games Inc. ("Midway") and you.
Reference is also made to (i) a letter agreement between you and WMS Industries
Inc. ("WMS"), dated the date hereof, pursuant to which your employment by WMS
will be terminated effective on the distribution date for the spin-off of the
Midway shares owned by WMS (the "Effective Date") and (ii) a consulting
agreement between you and WMS dated the date hereof.
This letter will reflect our agreement that on the Effective Date, the
Midway Employment Agreement shall be deemed amended as follows:
1. The first sentence of subparagraph 3(b) of the Midway Employment
Agreement shall be amended in its entirety to read as follows:
"Commencing with the fiscal year of Midway beginning July 1,
1997 and each fiscal year thereafter during the term of this
Agreement, Xxxxxxxx shall be paid a bonus in the amount equal
to two percent (2%) of `pre-tax income'."
2. The first sentence of subparagraph 3(c) of the Midway Employment
Agreement shall be amended in its entirety to read as follows:
"In addition to other compensation hereunder, Xxxxxxxx shall
be entitled to participate in and receive the benefits of all
pension and retirement plans, bonus plans, health, life,
hospital, medical and dental insurance (including
reimbursement for all medical and dental expenses incurred by
him, his spouse and his children twenty-one (21) years of age
or younger, to the extent such expenses are not otherwise
reimbursed by insurance provided by Midway) and all other
employee benefits and perquisites generally made available to
employees of Midway."
3. The last sentence of subparagraph 3(c) of the Midway Employment
Agreement shall be amended to substitute "Two Million Dollars ($2,000,000)" for
"One Million Dollars ($1,000,000)."
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Xx. Xxxx X. Xxxxxxxx 2 March 5, 1998
4. Paragraph 5 of the Midway Employment Agreement shall be amended (i)
to add in subparagraph 5(a), after the word "WMS", the words "Industries Inc.
('WMS')"; (ii) to add a clause at the end of subparagraph 5(a)(i) as follows:
"or if such corporation is WMS"; and (iii) to amend subparagraph 5(b) in its
entirety to read as follows:
"Midway acknowledges that Xxxxxxxx currently serves as a
director of WMS and as a consultant to WMS pursuant to a
letter agreement dated March 5, 1998, and he will perform such
services as a director or pursuant to such agreement as he
shall consider appropriate. Any termination of this Agreement
by Midway by reason of Xxxxxxxx'x performance of any such
services shall be deemed a termination in violation of this
Agreement."
In all other respects, the Midway Employment Agreement is hereby
confirmed and is in full force and effect. If the Effective Date does not occur
by June 30, 1998, this letter agreement shall be of no force or effect.
Please indicate your agreement to the foregoing by signing this letter
in the place provided below.
Very truly yours,
MIDWAY GAMES INC.
By: /s/ Xxxxxx X. Xxxx, Xx.
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Xxxxxx X. Xxxx, Xx.
Executive Vice President - Finance
Accepted and Agreed to:
/s/ Xxxx X. Xxxxxxxx
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XXXX X. XXXXXXXX
