Document:

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                                                                    EXHIBIT 10.6

                             COAST BUSINESS CREDIT,
                      a Division of Southern Pacific Bank
                      12121 Wilshire Boulevard, Suite 1400
                         Los Angeles, California 90025

                                  Dated as of
                                October 1, 1999

MAI SYSTEMS CORPORATION
9601 Jeronimo Road
Irvine, California 92618
Attn: W. Brian Kretzmer, CEO and CFO

HOTEL INFORMATION SYSTEMS, INC.
9601 Jeronimo Road
Irvine, California 92618
Attn: W. Brian Kretzmer, CEO and CFO

          Re: Events of Default and Limited Forbearance

Dear Mr. Kretzmer

     Reference is hereby made to that certain Loan and Security Agreement, dated
as of April 23, 1998, by and between MAI Systems Corporation, a Delaware
corporation, and Hotel Information Systems, Inc., a Delaware corporation
(jointly and severally the "Borrowers") and Coast Business Credit ("Coast"),
(the "Agreement"). Initially capitalized terms used in this letter agreement
which are not otherwise defined shall have the meanings assigned to such terms
in the Agreement.

     This letter is to acknowledge that Events of Default have occurred under
the Section 8.1 of the Schedule to the Agreement due to Borrowers failure to:
(i) achieve the minimum monthly profit required for the months of July through
October, 1999; (ii) achieve the minimum quarterly profit required for the
quarter ended September 30, 1999; (iii) maintain the Debt Service Coverage
ratio required for the quarter ended September 30, 1999; (iv) maintain the
minimum Consolidated Net Worth required at September 30, 1999 and October 31,
1999; and (v) pay all sales taxes as they become due.

     Coast is willing to forbear from exercising its rights and remedies based
upon the occurrence of the foregoing Events of Default from the date hereof
through and including December 15, 1999, provided that; (a) the Obligations bear
interest at the rate applicable upon the occurrence of an Event of Default
pursuant to Section 10.2 of the Agreement and 3.1 of the Schedule to the
Agreement; (b) commencing October 8, 1999, Borrowers make weekly payments with
respect to the Bridge Loan such that it amortizes at the rate of $25,000 per
week; and (c) Borrowers pay to Coast a monthly fee equal to $10,000 on October
1, 1999, and on November 1, 1999, and continuing thereafter on the first of each
month that any portion of the Bridge Loan remains unpaid.
<PAGE>   2
Mr. Brian Kretzmer
October 1, 1999
Page 2

     As stated above, as a result of the forgoing Events of Default and pursuant
to Section 10.2 of the Agreement and Section 3.1 of the Schedule to the
Agreement, the interest rate payable by Borrowers under Section 3.1 of the
Agreement has been increased and the Obligations now bear interest at the
default rate which is equal to the Interest Rate stated in the Agreement plus
3.0% per annum, calculated on the basis of a 360-day year for the actual number
of days elapsed (the "Default Rate"). This Default Rate will remain in effect
until all Events of Defaults have been cured.

     In addition, Coast agrees that notwithstanding any provisions of the
Agreement to the contrary, MAI Systems Corporation may grant a junior lien in
favor of the holders of MAI's existing subordinated debt, as contemplated by
and subject to the execution of that certain Acknowledgement and Consent to be
executed by Coast and such subordinated debt holders.

     This letter agreement is limited precisely as written and shall not be
deemed to (a) be a waiver or modification of any other term or condition of the
Agreement or any other loan document, (b) prejudice any right or remedy which
Coast may now have or may have in the future under or in connection with the
Agreement or any loan document, or (c) extend the forbearance described above
beyond December 15, 1999. In the event that any of the foregoing Events of
Default have not been cured on or before such date, Coast reserves the right to
enforce any and all rights and remedies it may have under the Agreement based
upon such Events of Default. Furthermore, Coast reserves the right to establish
at any time any reserve which Coast deems necessary in its sole discretion.

     Please acknowledge your receipt of this letter agreement and acceptance of
the foregoing terms and conditions by signing and dating the enclosed
counterpart of this letter agreement where indicated below and returning same
to the undersigned immediately.

                                   COAST BUSINESS CREDIT,
                                   a Division of Southern Pacific Bank

                                   By:  /s/ [Signature Illegible]
                                      ---------------------------

                                   Title:  Vice President
                                         ------------------------
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Mr. Brian Kretzmer
October 1, 1999
Page 3

Acknowledged and Agreed to as of
October 1, 1999

MAI SYSTEMS CORPORATION,
a Delaware corporation

By:   /s/ WILLIAM BRIAN KRETZMER
      --------------------------
Name:     WILLIAM BRIAN KRETZMER
      --------------------------
Title:    CEO/CFO
      --------------------------

HOTEL INFORMATION SYSTEMS, INC.,
a Delaware corporation

By:   /s/ WILLIAM BRIAN KRETZMER
      --------------------------
Name:     WILLIAM BRIAN KRETZMER
      --------------------------
Title:    CEO/CFO
      --------------------------<PAGE>   1
                                                                    EXHIBIT 10.7

            Amendment No. 5 to Letter Agreement Dated August 15, 1994

This Amendment No. 5 ("Amendment No. 5") 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"), is made as
of the 31st day of August, 1999 by and between Orchard Capital Corporation, a
California corporation, 10960 Wilshire Blvd., Suite 500, Los Angeles, California
90024 ("Consultant") and MAI Systems Corporation, a Delaware corporation, 9600
Jeronimo Road, Irvine, California 92718 ("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, Richard S. Ressler, 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.       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, 2000.

2.)      Fixed Compensation. During the period of extension, i.e. from September
         1, 1999 up through and including August 31, 2000, 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 and 4.

In witness whereof, the parties have executed this Amendment No. 5 as of August
31, 1999.

 Orchard Capital Corporation                  MAI Systems Corporation

 By:  /s/ Richard S. Ressler                  By: /s/ William Brian Kretzmer
    --------------------------------             -------------------------------
          Richard S. Ressler                         W. Brian Kretzmer
          President                                  Chief Executive Officer

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