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EXHIBIT 10.7
Amendment No. 6 to Letter Agreement Dated August 15, 1994
This Amendment No. 6 ("Amendment No. 6") to the Letter Agreement dated August
15, 1994 (the "Letter Agreement") amended as of October 17, 1994 ("Amendment No.
1"), as of August 16, 1996 ("Amendment No. 2"), as of August 31, 1997
("Amendment No. 3"), and as of August 31, 1998 ("Amendment No. 4"), and as of
August 31, 1999 ("Amendment No. 5"), is made as of the 31st day of August, 2000
by and between Orchard Capital Corporation, a California corporation, ▇▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇., ▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ("Consultant") and MAI
Systems Corporation, a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ("MAI") with reference to the following facts:
A. On or about August 15, 1994, the parties entered into the Letter
Agreement pursuant to which Consultant was to provide the services of
its employee, ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, to MAI, on various terms and
conditions in exchange for certain consideration to be paid by MAI to
Consultant.
B. On or about October 17, 1994, pursuant to Amendment No. 1, certain terms
of the Agreement were amended.
C. On or about August 16, 1996, the term of the Agreement expired but the
Consultant continued to perform services for MAI and, pursuant to
Amendment No. 2, the parties extended the term of the consultancy up
through and including August 31, 1997 and amended certain terms of the
Agreement to be effective during the term extension.
D. On or about August 31, 1997, the term of the Agreement (as extended by
Amendment No. 2) expired but the Consultant continued to perform
services for MAI and, pursuant to Amendment No. 3, the parties extended
the term of the consultancy up through and including August 31, 1998 and
amended certain terms of the Agreement to be effective during the term
extension.
E. On or about August 31, 1998, the term of the Agreement (as extended by
Amendment No. 3) expired but the Consultant continued to perform
services for MAI and, pursuant to Amendment No. 4, the parties extended
the term of the consultancy up through and including August 31, 1999 and
amended certain terms of the Agreement to be effective during the term
extension.
F. On or about August 31, 1999, the term of the Agreement (as extended by
Amendment No. 4) expired but the Consultant continued to perform
services for MAI and, pursuant to Amendment No. 5, the parties extended
the term of the consultancy up through and including August 31, 2000 and
amended certain terms of the Agreement to be effective during the term
extension.
G. The extended term of the Agreement in Amendment No. 5 is scheduled to
expire and the parties seek to extend the term of the consultancy and to
amend certain terms of the Agreement to be effective during the term
extension.
Now, therefore, in consideration of the mutual benefits to be derived hereunder,
the parties agree as follows:
1) Extension of Term. The term of the consultancy shall be extended up
through and including August 31, 2001.
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2.) Fixed Compensation. During the period of extension, i.e. from September
1, 2000 up through and including August 31, 2001, Consultant shall be
compensated at the monthly rate of Twenty-four Thousand and no/100
Dollars ($24,000).
3.) Equity Compensation. MAI shall consider the appropriate equity
compensation for Consultant for services rendered during the term
extension. The parties acknowledge that equity compensation may take the
form of warrants to purchase shares of MAI's Common Stock, participation
in one of its stock option plans, or otherwise. Nothing herein shall be
construed to commit MAI to pay any equity compensation to Consultant for
services during the period of extension.
4.) Confirmation of Other Terms and Conditions. In all other respects the
parties reaffirm and acknowledge all of the terms and conditions set
forth in the Agreement and Amendment Nos. 1, 2, 3, 4 and 5.
In witness whereof, the parties have executed this Amendment No. 6 as of
August 31, 2000.
Orchard Capital Corporation MAI Systems Corporation
By: By:
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ W. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
President Chief Executive Officer
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