ACCLAIM ENTERTAINMENT INC
PROMIS NOTE EXECUTED BY JAMES R. SCOROPOSKI 7/2/01
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<DESCRIPTION>PROMIS NOTE EXECUTED BY JAMES R. SCOROPOSKI 7/2/01
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 <DIV STYLE="text-indent:4%" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Exhibit 10.31 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>U.S. $1,797,450 </B></FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>Glen Cove, New York </B></FONT></DIV> <DIV ALIGN="right"><FONT FACE="Times New Roman"
SIZE="2" COLOR="#000000"><B>July 2, 2001 </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>PROMISSORY NOTE </B></FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV>
<DIV STYLE="margin-left:8%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>WHEREAS</B>, Acclaim Entertainment, Inc. (the &#147;Payee&#148;) issued a warrant numbered W-2, dated January 25, 1991, to purchase 750,000 shares
of common stock of the Payee at an exercise price of $2.4166 per share (as adjusted on a post-stock split basis) (the &#147;Warrant&#148;) to James R. Scoroposki (the &#147;Payor&#148;); </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
STYLE="margin-left:8%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>WHEREAS</B>, the Payor exercised the Warrant to purchase 750,000 shares of common stock, par value $.02 per share, of the Payee (the &#147;Warrant
Shares&#148;); </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:8%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>WHEREAS</B>, the Payor paid the Payee $15,000 representing the amount equal to
(x) the par value of the Payee&#146;s common stock, times (y) the number of Warrant Shares; and </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="margin-left:8%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2"
COLOR="#000000"><B>WHEREAS</B>, the balance of the payment for the Warrant Shares may be paid by Payor by delivery of this note to the Payee. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000"><B>FOR VALUE RECEIVED</B>, the Payor hereby unconditionally promises to pay to the order of the Payee, the principal amount of ONE MILLION SEVEN HUNDRED NINETY SEVEN THOUSAND FOUR HUNDRED AND FIFTY
DOLLARS ($1,797,450) together with accrued and unpaid interest thereon. The Payor further agrees to pay interest on such principal amount at the rate Payee is charged from time to time by GMAC Commercial Credit LLC (the &#147;Bank Rate&#148;). All
amounts payable hereunder shall be payable to Payee in United States dollars at such bank account as shall be designated by the Payee in immediately available funds or as otherwise specified to Payor in writing. Payment on this note shall be applied
first to any expenses of collection, then to accrued interest, and thereafter to the outstanding principal balance hereof. The principal amount and accrued interest are due and payable on the earlier of (i) the first anniversary hereof and (ii) to
the extent of the proceeds of any &#147;Warrant Share Sale&#148; (as defined below), the third business day following the date upon which Payor sells any or all of the Warrant Shares (a &#147;Warrant Share Sale&#148;). </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Payor may at any time and from time to time prepay the principal amount, in whole or in part, without premium or penalty. </FONT></DIV>
<DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">The following events shall each be an &#147;Event of Default&#148; under this note: </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">(a) bankruptcy or insolvency of Payor; and </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">(b) Payor&#146;s failure to pay any of the principal amount due under this note on the date the same becomes due and payable, or any accrued interest or other amounts due under this note after the same
becomes due and payable. </FONT></DIV>

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 <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Upon the occurrence of an Event of Default, the unpaid principal amount, all
unpaid accrued interest thereon and all other amounts owing hereunder may, at the option of Payee, become immediately due and payable to Payee; provided, however, that upon the occurrence of an Event of Default described in (a) above, all
indebtedness of Payor to Payee shall become immediately due and payable without any action of Payee. Effective upon an Event of Default that is not cured, the interest rate on this note shall increase by the lesser of the Bank Rate plus 2% or the
maximum penalty as shall be permitted by applicable law. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">This note is made with full recourse to the Payor
including without limitation with full recourse to all assets of the Payor and pursuant to and upon all warranties, representations, covenants and agreements on the part of the Payor as contained herein. </FONT></DIV> <DIV><FONT
SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">Payor waives presentment and written demand for payment, notice of dishonor, protest and notice of protest of this
note&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, and shall pay all costs of collection when incurred, including, without limitation, reasonable attorneys&#146; fees, costs and other expenses. Payor waives his rights to a
jury trial in connection with any claims arising under this note to the fullest extent permitted by law. The right to plead any and all statutes of limitations as a defense to any demands hereunder is hereby waived to the fullest extent permitted by
law. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">If there has been an Event of Default by Payor hereunder, Payee shall be entitled to receive and Payor
agrees to pay all costs of enforcement and collection incurred by Payee, including, without limitation, reasonable attorneys&#146; fees relating thereto. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2" COLOR="#000000">The provisions of this note shall inure to the benefit of and be binding on any successor to Payor and shall extend to any holder hereof. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
STYLE="text-indent:8%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">This note may not be changed, modified or terminated orally. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV STYLE="text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2" COLOR="#000000">THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW. </FONT></DIV> <DIV><FONT SIZE="1">&nbsp;</FONT></DIV> <DIV
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<TD VALIGN="top" WIDTH="3%"> <DIV STYLE="margin-left:2%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">By:</FONT></DIV> </TD>
<TD VALIGN="bottom" WIDTH="3%"><FONT FACE="Times New Roman" SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center" WIDTH="43%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="2" COLOR="#000000">/s/ J<SMALL>AMES</SMALL> R. S<SMALL>COROPOSKI</SMALL></FONT></DIV> <HR SIZE="1" NOSHADE COLOR="#000000" ALIGN="left"></TD> </TR>
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<TD VALIGN="bottom" ALIGN="center" WIDTH="43%"> <DIV ALIGN="center"><FONT FACE="Times New Roman" SIZE="1" COLOR="#000000"><B>James R. Scoroposki</B></FONT></DIV> </TD> </TR>
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