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EXHIBIT 10.1
November 5, 1999
Xx. Xxxx X. Xxxxxxxx
000 X. Xxxxxxxx Xxxx
Xxxx Xxxxxxx, XX 00000
Dear Xx. Xxxxxxxx:
Reference is made to your Employment Agreement with Midway Games Inc.
dated July 1, 1996, as amended March 15, 1998, (the "Midway Employment
Agreement").
This letter reflects our agreement that the Midway Employment Agreement
will be deemed amended, effective immediately as follows:
1. The date "June 30, 2001" appearing in paragraph 2 of the Midway
Employment Agreement is changed to "October 30, 2004".
2. Your base salary referred to in paragraph 3(a) of the Midway
Employment Agreement is $600,000 per annum.
3. Paragraphs 6(a) and 6(b) of the Midway Employment Agreement are
amended in their entireties to read as follows:
"(a) In the event Xxxxxxxx shall die during the term of this
Agreement but prior to his "Retirement Date" (as hereinafter
defined), Midway shall, in addition to the benefits which may
become payable pursuant to subparagraph 3(c), pay death
benefits as hereinafter provided to such person or persons as
Xxxxxxxx shall, at his option, from time to time designate by
written instrument delivered to Midway, each subsequent
designation to be deemed to revoke all prior designations, or
if no such designation is made to his estate, for a period of
ten (10) years, in equal monthly payments commencing the
first day of the month following death. Such annual death
benefits shall be equal to one-half (1/2) of the aggregate of
(a) the annual base salary payable to Xxxxxxxx as of the date
of death and (b) the average annual bonus payable to Xxxxxxxx
during the three full fiscal years of his employment prior to
the date of death, but in no event shall the annual death
benefit be less than Three Hundred Thousand Dollars
($300,000) per annum or greater than the amount of the annual
base salary payable to Xxxxxxxx as of the date of death."
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"(b) The Retirement Date shall mean the later to occur of (i)
the date on which Xxxxxxxx shall become forty-five (45) years
old or (ii) the date of the termination of Xxxxxxxx'x
employment by Midway. Midway will pay to Xxxxxxxx on the
first day of the first month following his Retirement Date,
and on the first day of each month thereafter for a period of
ten (10) years in equal monthly payments, an annual
retirement income benefit equal to one-half (1/2) of the
aggregate of (a) the annual base salary payable to Xxxxxxxx
as of the date of termination of his employment by Midway and
(b) the average annual bonus payable to Xxxxxxxx during the
three full fiscal years of his employment prior to the date
of termination of his employment by Midway, but in no event
shall the annual retirement income benefit be less than Three
Hundred Thousand Dollars ($300,000) per annum or greater than
the amount of the annual base salary payable to Xxxxxxxx as
of the date of termination of his employment by Midway. In
the event that Xxxxxxxx shall die after his Retirement Date
but before the retirement benefits provided for herein shall
be fully paid, the balance thereof shall thereafter be paid
in monthly installments to his estate."
In all other respects, the Midway Employment Agreement is hereby
confirmed and is in full force and 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
