Summary of MAD CATZ INTERACTIVE INC

Item 1.01 Entry into a Material Definitive Agreement

On September 30, 2008, the Board of Directors of Mad Catz Interactive, Inc. (the "Company") approved an increase of the current annual retainer fee paid to non-employee directors of the Company from $35,000 to $50,000, effective September 30, 2008. The other components of the compensation program for non-employee directors of the Company remain the same.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On September 30, 2008, the independent members of the Company's Board of Directors approved the cost of living salary increases set forth below for the Company's executive officers effective as of the beginning of the Company's 2009 fiscal year in accordance with the Company's previously reported executive compensation program.

                                                                          FY 2008               $                FY 2009
Name                                     Title                          Base Salary          Increase          Base Salary
Darren Richardson      President and Chief Executive Officer of        $   387,375          $ 11,621          $   398,996
                       the Company

Stewart Halpern        Chief Financial Officer of the Company          $   251,856          $  7,556          $   259,412

Whitney Peterson       Vice President - Corporate Development          $   251,856          $  7,556          $   259,412
                       and General Counsel of Mad Catz, Inc.

Kitty Lo               General Manager - Asian Operations of Mad       $   193,573          $  1,452          $   195,025
                       Catz, Inc.

Brian Andersen         General Manager - European Operations of        $   198,000          $  1,485          $   199,485
                       Mad Catz, Inc.

On September 30, 2008, the independent members of the Company's Board of Directors also approved an executive bonus plan for the Company's fiscal year 2009. Bonuses awarded under the executive bonus plan will be based primarily upon the Company's earnings per share in fiscal year 2009, in addition to other performance objectives approved by the independent members of the Company's Board of Directors.

                                                                                 Target Award as
Name                                          Title                                % of Salary            Target Award
Darren Richardson      President and Chief Executive Officer of the                        60 %          $    239,398
                       Company

Stewart Halpern        Chief Financial Officer of the Company                              50 %          $    129,706

Whitney Peterson       Vice President - Corporate Development and General                  50 %          $    129,706
                       Counsel of Mad Catz, Inc.

Kitty Lo               General Manager - Asian Operations of Mad Catz,                     50 %          $     97,513
                       Inc.

Brian Andersen         General Manager - European Operations of Mad Catz,                  50 %          $     99,743
                       Inc.

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