EXHIBIT 10.16
September 17, 1998
Xx. Xxxxxx Xxxxxxxx
Actuate Japan Company, Ltd.
0-0-0 Xxxxxxxx Xxxxxx-xx
Xxxxx 000 Xxxxx
Dear Yoichi:
This letter will confirm our agreement with respect to the commitment of Actuate
Japan ("AJ") to repay certain monies owed to Actuate Software Corporation
("ASC"). Currently ASC holds a promissory note from AJ with a principal amount
of $164,934 plus accrued interest from December 27, 1997 (the "Promissory Note")
and as of June 30, 1998, AJ also owes ASC $127,630, consisting of earned
royalties for sales by AJ of ASC software and interest thereon ("Earned
Royalties"). Earned Royalties shall also include any royalties earned by ASC
during July and August of 1998. The interest rate is 10% per annum for all
accrued and future interest on the Promissory Note and 5% per annum for all
future interest on the Earned Royalties.
AJ agrees to repay the Promissory Note and the Earned Royalties including
interest thereon as follows:
Repayment of Promissory Note. AJ will pay to ASC a minimum of $4,500 per month
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beginning on November 1, 1998 and continue such payments on the first day of
each month thereafter until the Promissory Note and future interest thereon
has been repaid in full.
Repayment of Royalties. AJ will pay to ASC a minimum of $4, 500 per month
-----------------------
beginning on November 1, 1998 and continue such payments on the first day of
each month thereafter until the Earned Royalties and future interest thereon
have been repaid in full.
In addition, AJ agrees that in the event AJ's cash flow projections exceed the
plan previously provided to ASC, such excess cash flow will be immediately used
to pay down the amounts owed pursuant to the Promissory Note and Earned
Royalties. Furthermore, AJ agrees to pay all future royalties, beginning with
royalties earned by ASC in July 1998, to ASC within 60 days of delivering a
monthly royalty report to ASC.
Notwithstanding the repayment schedules set forth above, in the event a Japanese
Bankruptcy court orders AJ to enter into a settlement with Intranet, regarding
the repayment of monies owed by AJ to Intranet, ASC and AJ agree to enter into
good faith negotiations to amend the repayment schedules set forth in this
letter.
Yoichi, if you are in agreement with the terms set forth herein, please execute
this letter below and return a copy to me.
Sincerely, Agreed and Accepted,
Actuate Software Corporation Actuate Japan Company, Ltd.
/s/ Xxxxxxx Xxxxxxxxxx /s/ Xxxxxx Xxxxxxxx
Xxxxxxx Xxxxxxxxxx, President Xxxxxx Xxxxxxxx, President
