CONFIDENTIAL LICENSE AGREEMENT FOR GAME BOY ADVANCE

"[*]” denotes confidential information omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment under Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

Exhibit 10.1

CONFIDENTIAL LICENSE AGREEMENT
FOR GAME BOY ADVANCE
(Western Hemisphere)

     THIS LICENSE AGREEMENT (“Agreement”) is entered into between NINTENDO OF AMERICA INC. (“NOA”), at 4820 150th Avenue N.E., Redmond, WA 98052 Attn: General Counsel (Fax: 425-882-3585) and Midway Home Entertainment, Inc., (“LICENSEE”) at 800 North Main Street, Corsicana, TX 75151 Attn: Donna Green (Fax: (903) 872-8000). NOA and LICENSEE agree as follows:

1.       RECITALS

          1.1      NOA markets and sells advanced design, high-quality video game systems, including the GAME BOY ^® ADVANCE system.

          1.2      LICENSEE desires a license to use highly proprietary programming specifications, development tools, trademarks and other valuable intellectual property rights of NOA and its parent company, Nintendo Co., Ltd. (collectively “Nintendo”), to develop, have manufactured, advertise, market and sell video game software for play on the GAME BOY ADVANCE system.

          1.3      NOA is willing to grant a license to LICENSEE on the terms and conditions set forth in this Agreement.

2.       DEFINITIONS

          2.1      “Artwork” means the design specifications for the Game Cartridge label and Printed Materials in the format specified by NOA in the Guidelines.

          2.2      “Development Tools” means the development kits, programming tools, emulators, and other materials that may be used in the development of Games under this Agreement.

          2.3      “Effective Date” means the last date on which all parties shall have signed this Agreement.

          2.4      “Finished Product(s)” means the fully assembled and shrink-wrapped Licensed Products, each including a Game Cartridge, Game Cartridge label and Printed Materials.

          2.5      “Game Cartridges(s)” means custom cartridges specifically manufactured under the terms of this Agreement for play on the GAME BOY ADVANCE system, incorporating semiconductor components in which a Game has been stored.

          2.6      “Game(s)” means interactive video game programs (including source and object/binary code) developed for play on the GAME BOY ADVANCE system.

          2.7      “Guidelines” means the current version or any future revision of the “Game Boy Packaging Guidelines”, “Nintendo Trademark Guidelines”, “Game Boy Advance Development Manual” and related guidelines.

          2.8      “Independent Contractor” means any individual or entity that is not an employee of LICENSEE, including any independent programmer, consultant, contractor, board member or advisor.

          2.9      “Intellectual Property Rights” means individually, collectively or in any combination, Proprietary Rights owned, licensed or otherwise held by Nintendo that are associated with the development, manufacturing, advertising, marketing or sale of the Licensed Products, including, without limitation, (a) registered and unregistered trademarks and trademark applications used in connection with video games for play on the GAME BOY ADVANCE system including “Nintendo ^® ”, “GAME BOY ^® ADVANCE,” “AGB and the “Official Nintendo Seal of Quality ^® ”, (b) select trade dress associated with the

GAME BOY ADVANCE system and licensed video games for play thereon, (c) Proprietary Rights in the Security Technology incorporated into the Game Cartridges, (d) rights in the Development Tools for use in developing the Games, (e) patents or design registrations associated with the Game Cartridges, (f) copyrights in the Guidelines, and (g) other Proprietary Rights of Nintendo in Confidential Information.

          2.10      “Licensed Products” means (a) Finished Products, or (b) Stripped Products when fully assembled and shrink-wrapped with the Printed Materials.

          2.11      “Marketing Materials” means marketing, advertising or promotional materials developed by or for LICENSEE (or subject to LICENSEE’S approval) to promote the sale of the Licensed Products, including, but not limited to, television, radio and on-line advertising, point-of-sale materials (e.g. posters, counter-cards), package advertising and print media or materials.

          2.12      “NDA” means the non-disclosure agreement providing for the protection of Confidential Information related to the GAME BOY ADVANCE system previously entered into between NOA and LICENSEE.

          2.13      “Notice” means any notice permitted or required under this Agreement. All notices shall be sufficiently given when (a) personally served or delivered, or (b) transmitted by facsimile, with an original sent concurrently by first class U.S. mail, or (c) deposited, postage prepaid, with a guaranteed air courier service, in each case addressed as stated herein, or addressed to such other person or address either party may designate in a Notice. All Notices to LICENSEE shall include a copy to: Vice President and General Counsel, Midway Games Inc., 3401 North California Avenue, Chicago, Illinois 60618, Facsimile (773) 961-2299. Notice shall be deemed effective upon the earlier of actual receipt or two (2) business days after transmittal.

          2.14      “Price Schedule” means the current version or any future revision of NOA’s schedule of purchase prices and minimum order quantities for the Licensed Products.

          2.15      “Printed Materials” means the box, user instruction booklet, poster, warranty card and LICENSEE inserts incorporating the Artwork, together with a precautions booklet as specified by NOA.

          2.16      “Proprietary Rights” means any rights or applications for rights owned, licensed or otherwise held in patents, trademarks, service marks, copyrights, mask works, trade secrets, trade dress, moral rights and publicity rights, together with all inventions, discoveries, ideas, technology, know-how, data, information, processes, formulas, drawings and designs, licenses, computer programs, software source code and object code, and all amendments, modifications, and improvements thereto for which such patent, trademark, service mark, copyright, mask work, trade secrets, trade dress, moral rights or publicity rights may exist or may be sought and obtained in the future.

          2.17      “Reverse Engineer(ing)” means, without limitation, (a) the x-ray, electronic scanning or physical or chemical stripping of semiconductor components, (b) the disassembly, decompilation, decryption or simulation of object code or executable code, or (c) any other technique designed to extract source code or facilitate the duplication of a program or product.

          2.18      “Security Technology” means, without limitation, any security signature, bios, data scrambling, password, hardware security apparatus, watermark, hologram, copyright management information system or any feature which facilitates or limits compatibility with other hardware or software outside of the Territory or on a different video game system.

          2.19      “Stripped Product(s)” means the Game Cartridges with Game Cartridge labels affixed.

          2.20      “Term” means three (3) years from the Effective Date.

          2.21      “Territory” means all countries within the Western Hemisphere and their respective territories and possessions.

3.       GRANT OF LICENSE: LICENSEE RESTRICTIONS

          3.1       Limited License Grant . For the Term and for the Territory, NOA grants to LICENSEE a nonexclusive, nontransferable, limited license to use the Intellectual Property Rights to develop Games for manufacture, advertising, marketing and sale as Licensed Products, subject to the terms and conditions of this Agreement. Except as permitted under a separate written authorization from Nintendo, LICENSEE shall not use the Intellectual Property Rights for any other purpose.

          3.2       LICENSEE Acknowledgement . LICENSEE acknowledges (a) the value of the Intellectual Property Rights, (b) the right, title, and interest of Nintendo in and to the Intellectual Property Rights, and (c) the right, title and interest of Nintendo in and to the Proprietary Rights associated with all aspects of the GAME BOY ADVANCE system. LICENSEE recognizes that the Games, Game Cartridges and Licensed Products will embody valuable rights of Nintendo and Nintendo’s licensors. LICENSEE represents and warrants that it will not undertake any act or thing which in any way impairs or is intended to impair any part of the right, title, interest or goodwill of Nintendo in the Intellectual Property Rights. LICENSEE’S use of the Intellectual Property Rights shall not create any right, title or interest of LICENSEE therein.

          3.3       LICENSEE Restrictions and Prohibitions . LICENSEE represents and warrants that it will not at any time, directly or indirectly, do or cause to be done any of the following:

                    (a)      grant access to, distribute, transmit or broadcast a Game by electronic means or by any other means known or hereafter devised, including, without limitation, by wireless, cable, fiber optic, telephone lines, microwave, radiowave, computer or other device network; provided, however, that limited transmissions may be made for the sole purpose of facilitating development under the terms of this Agreement, but no right of retransmission shall attach to any such authorized transmission and, reasonable security measures, customary within the high technology industry, shall be. utilized to reduce the risk of unauthorized interception or retransmission of any such authorized transmission,

                    (b)      authorize or permit any online activities involving a Game, including, without limitation, multiplayer, peer-to-peer or online play,

                    (c)      modify, install or operate a Game on any server or computing device for the purpose of or resulting in the rental, lease, loan or other grant of remote access to the Game,

                    (d)      emulate, interoperate, interface or link a Game for operation or use with any hardware or software platform, accessory, computer language, computer environment, chip instruction set, consumer electronics device or device other than the GAME BOY ADVANCE system or the Development Tools,

                    (e)      embed, incorporate, or store a Game in any media or format except the cartridge format utilized by the GAME BOY ADVANCE system, except as may be necessary as a part of the Game development process under this Agreement,

                    (f)      design, implement or undertake any process, procedure, program or act designed to circumvent the Security Technology,

                    (g)      utilize the Intellectual Property Rights to design or develop any interactive video game program, except as authorized under this Agreement,

                    (h)      manufacture or reproduce a Game developed under this Agreement, except through Nintendo, or

                    (i)      Reverse Engineer or assist in the Reverse Engineering of all or any part of the GAME BOY ADVANCE system, including the hardware or software (whether embedded or otherwise), or the Security Technology.

          3.4       Development Tools . Nintendo may lease, loan or sell Development Tools to LICENSEE to assist in the development of Games under this Agreement. Ownership and use of any Development Tools provided to LICENSEE by Nintendo shall be subject to the terms of this Agreement. LICENSEE acknowledges the exclusive interest of Nintendo in and to the Proprietary Rights associated with the Development Tools. LICENSEE’s use of the Development Tools shall not create any right, title or interest of LICENSEE therein. LICENSEE shall not, directly or indirectly, (a) use the Development Tools for any purpose except the design and development of Games under this Agreement. (b) reproduce or create derivatives of the Development Tools, except in association with the development of Games under this Agreement, (c) Reverse Engineer the Development Tools, or (d) sell, lease, assign, lend, license, encumber or otherwise transfer the Development Tools. Any tools developed or derived by LICENSEE as a result of a study of the performance, design or operation of the Development Tools shall be considered derivative works of the Intellectual Property Rights, but may be retained and utilized by LICENSEE in connection with this Agreement. In no event shall LICENSEE (i) seek, claim or file for any patent, copyright or other Proprietary Right with regard to any such derivative work, (ii) make available any such derivative work to any third party, or (iii) use any such derivative work except in connection with the design and development of Games under this Agreement.

4.       SUBMISSION OF GAME AND ARTWORK FOR APPROVAL

          4.1       Development and Sale of the Games . LICENSEE may develop Games and have manufactured, advertise, market and sell Licensed Products for play on the GAME BOY ADVANCE system only in accordance with this Agreement.

          4.2       Third Party Developers . LICENSEE shall not disclose the Confidential Information, the Guidelines or the Intellectual Property Rights to any Independent Contractor, nor permit any Independent Contractor to perform or assist in development work for a Game, unless and until such Independent Contractor has been approved by NOA and has executed a written confidentiality agreement with NOA relating to the GAME BOY ADVANCE system.

          4.3       Delivery of Completed Game . Upon completion of a Game, LICENSEE shall deliver a prototype of the Game to NOA in a format specified in the Guidelines, together with written user instructions, a complete description of any security holes, backdoors, time bombs, cheats, “easter eggs” or other hidden features or characters in the Game and a complete screen text script. NOA shall promptly evaluate the Game with regard to (a) its technical compatibility with and error-free operation on the GAME BOY ADVANCE system, and (b) its compliance with the game content guidelines of the Entertainment Software Ratings Board (“ESRB). LICENSEE shall provide NOA with a certificate of a rating for the Game from the ESRB other than “AO” or “ADULTS ONLY”.

          4.4       Approval of Completed Game . NOA shall, within a reasonable period of time after receipt, approve or disapprove each submitted Game. If a Game is disapproved, NOA shall specify in writing the reasons for such disapproval and state what corrections or improvements are necessary. After making the necessary corrections or improvements, LICENSEE shall submit a revised Game to NOA for approval. NOA shall not unreasonably withhold or delay its approval of any Game. The approval of a Game by NOA shall not relieve LICENSEE of its sole responsibility for the development, quality and operation of the Game or in any way create any warranty for a Game or a Licensed Product by NOA.

          4.5       Submission of Artwork . Upon submission of a completed Game to NOA, LICENSEE shall prepare and submit to NOA the Artwork for the proposed Licensed Product. Within [*           ] business days of receipt, NOA shall approve or disapprove the Artwork. If any Artwork is disapproved, NOA shall specify in writing the reasons for such disapproval and state what corrections or improvements are necessary. After making the necessary corrections or improvements, LICENSEE shall submit revised Artwork to NOA for approval, NOA shall not unreasonably withhold or delay its approval of any Artwork. The approval of the Artwork by NOA shall not relieve LICENSEE of its sole responsibility for the development and quality of the Artwork or in any way create any warranty for the Artwork or the Licensed product by NOA.

*Information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

          4.6       Artwork for Stripped Product . If LICENSEE submits an order for Stripped Product, all Artwork shall be submitted to NOA in advance of NOA’s acceptance of the order and no production of Printed Materials shall occur until such Artwork has been approved by NOA under Section 4.5 herein.

5 .       ORDER PROCESS, PURCHASE PRICE. PAYMENT AND DELIVERY

          5.1       Submission of Orders by LICENSEE . LICENSEE may at any time submit written purchase orders to NOA for any approved Licensed Product title. The purchase order shall specify whether it is for Finished Product or Stripped Product. The terms and conditions of this Agreement shall control over any contrary terms of such purchase order or any other written documents submitted by LICENSEE. All orders are subject to acceptance by NOA in Redmond, WA.

          5.2       Purchase Price and Minimum Order Quantities . The purchase price and minimum order quantities for the Licensed Products shall be set forth in NOA’s then current Price Schedule. The purchase price includes the cost of manufacturing together with a royalty for the use of the Intellectual Property Rights. No taxes, duties, import fees or other tariffs related to the development, manufacture, import, marketing or sale of the Licensed Products are included in the purchase price and all such taxes are the responsibility of LICENSEE (except for taxes imposed on NOA’s income). The Price Schedule is subject to change by NOA at any time without Notice.

          5.3       Payment. Upon placement of an order with NOA . LICENSEE shall pay the full purchase price to NOA either (a) by placement of an irrevocable letter of credit in favor of NOA and payable at sight, issued by a bank acceptable to NOA and confirmed, if requested by NOA, at Licensee’s expense, or (b) in cash, by wire transfer to NOA’s designated account. All associated banking charges shall be for Licensee’s account.

          5.4       Shipment and Delivery . The Licensed Products shall be delivered F.O.B. Japan or such other delivery point specified by NOA, with shipment at LICENSEE’S direction and expense. Orders may be delivered by NOA in partial shipments, each directed to not more than [*           ] destinations designated by LICENSEE within the Territory. Title to the Licensed Products shall vest in accordance with the terms of the applicable letter of credit or, in the absence thereof, at the point of delivery.

6.       MANUFACTURE OF THE LICENSED PRODUCT

          6.1       Manufacturing . Nintendo Co., Ltd. shall be the exclusive source for the manufacture of the Game Cartridges, with responsibility for all aspects of the manufacturing process, including the selection of the locations and specifications for any manufacturing facilities, determination of materials and processes, appointment of suppliers and subcontractors and management of all work-in-progress.

          6.2       Manufacture of the Licensed Products . Upon acceptance by NOA of a purchase order for an approved Licensed Product title and payment as provided for under Section 5.3 herein, NOA (through Nintendo Co., Ltd., and/or its subcontractors), will arrange for the manufacture of Finished Product or Stripped Product, as specified in LICENSEE’S purchase order.

          6.3       Security Features . The final release version of the Game, Game Cartridges and Printed Materials shall include such Security Technology as Nintendo, in its sole discretion, may deem necessary or appropriate.

          6.4       Production of Stripped Product Printed Materials . For Stripped Product, LICENSEE shall arrange and pay for the production of the Printed Materials using the Artwork. Upon receipt of an order of Stripped Product, LICENSEE shall assemble the Game Cartridges and Printed Materials into the Licensed Products. Licensed Products may be sold or otherwise distributed by LICENSEE only in fully assembled and shrink-wrapped condition.

          6.5       Prior Approval of Licensee’s Independent Contractor . Prior to the placement of a purchase order for Stripped Product, LICENSEE shall obtain NOA’s approval of any Independent

*Information has been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

Contractors selected to perform the production and assembly operations. LICENSEE shall provide NOA with the names, addresses and all business documentation reasonably requested by NOA for such Independent Contractors. NOA may, prior to approval and at reasonable intervals thereafter, (a) require submission of additional business or financial information regarding the Independent Contractors, (b) inspect the facilities of the Independent Contractors, and (c) be present to su