Document:

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                                                                    Exhibit 10.7

                                               As of November 3, 1999

STARBASE CORPORATION
4 Hutton Drive, Suite 800
Santa Ana, CA 92707

             Re: Lock-Up Agreement

Gentlemen:

         As an additional inducement to StarBase Corporation (the "Company") to
execute the Agreement and Plan of Merger of even date herewith (the "Merger
Agreement") with ObjectShare, Inc. and its wholly-owned subsidiary, pursuant to
which the undersigned would receive shares of common stock, par value $.001 per
share, of the Company and options to purchase additional shares of the Company's
common stock (collectively, the "Securities"), the undersigned hereby agrees
that, for a period of 180 days after the Effective Date (as such term is defined
in the Merger Agreement), the undersigned shall not (i) offer, sell, contract to
sell, pledge or otherwise dispose of, directly or indirectly, any shares of
Securities or securities convertible into or exchangeable or exercisable for any
shares of Securities, or publicly disclose the intention to make any such offer,
sale, pledge or disposal or (ii) enter into any swap or other agreement that
transfers, in whole or in part, any of the economic consequences of ownership of
such shares of Securities, whether any transaction described in clause (i) or
(ii) above is to be settled by delivery of shares of Securities or such other
securities, in cash or otherwise, in each case without the prior written consent
of the Company.

         In furtherance of the foregoing, the Company and its transfer agent and
registrar are hereby authorized to decline to make any transfer of shares of
Securities or of such other securities if such transfer would constitute a
violation or breach of this Agreement.

         This Agreement shall be binding on the undersigned and the respective
successors, heirs, personal representatives and assigns of the undersigned. This
Agreement shall lapse and become null and void if the Effective Date shall not
have occurred on or before [April 17, 2000 or such later date as may be agreed
upon in writing by the parties to the Merger Agreement under Section 6.1(g) of
the Merger Agreement.]

                                          Very truly yours,

                                          ----------------------------------
                                          James H. Smith<PAGE>

                                                                    EXHIBIT 10.1

                         AMENDMENT NO. TWO TO THE LOAN
                            AND SECURITY AGREEMENT
                           IMAGE ENTERTAINMENT, INC.

          THIS AMENDMENT NO. TWO TO LOAN AND SECURITY AGREEMENT (this
"Amendment") is entered into as of the 8/th/ day of February, 2000, by and
between IMAGE ENTERTAINMENT, INC., a California corporation ("Borrower"), whose
chief executive office is located at 9333 Oso Avenue, Chatsworth, California
91311 and FOOTHILL CAPITAL CORPORATION, a California corporation ("Foothill"),
with a place of business located at 11111 Santa Monica Boulevard, Suite 1500,
Los Angeles, California 90025-3333, in light of the following facts:

                                     FACTS

          FACT ONE:  Foothill and Borrower have previously entered into that
          --------
certain Loan and Security Agreement, dated December 28, 1998 (as amended and
supplemented, the "Agreement").

          FACT TWO:  Foothill and Borrower desire to amend the Agreement as
          --------
provided herein. Terms defined in the Agreement which are used herein shall have
the same meanings as set forth in the Agreement, unless otherwise specified.

          NOW, THEREFORE, Foothill and Borrower hereby modify and amend the
Agreement as follows:

          1.    Effective as of December 1, 1999, Section 7.9 of the Agreement
is hereby amended in its entirety to read as follows:

                "7.9 Capital Expenditures. Make any capital
                     --------------------
                expenditure, or any commitment therefor, (a) with
                respect to individual transactions: (i) in excess of
                Eight Hundred Thousand Dollars ($800,000) for any
                individual transaction made or committed during
                Borrower's fiscal year ended March 31, 2000 and each
                subsequent fiscal year thereafter; or (b) with respect
                to aggregate capital expenditures made or committed
                for in any fiscal year, in an aggregate amount in
                excess of (i) Two Million Five Hundred Thousand
                Dollars ($2,500,000) for each subsequent fiscal year
                thereafter; provided, however, that if the amount
                            --------  -------
                available under this covenant is not expended in any
                particular year, one hundred percent (100%) thereof
                shall be available to be expended in the following
                fiscal year, but only in such subsequent fiscal year,
                with the amount so carried over being deemed to have
                been expended last in such subsequent year."

          2.   Foothill shall charge Borrower's loan account a fee in the amount
of $2,000. Said fee shall be fully-earned, non-refundable, and due and payable
on the date Borrower's loan account is charged.

          3.   In the event of a conflict between the terms and provisions of
this Amendment and the terms and provisions of the Agreement, the terms and
provisions of this Amendment shall govern. In all other respects, the Agreement,
as supplemented, amended and modified, shall remain in full force and effect.

          IN WITNESS WHEREOF, Borrower and Foothill have executed this Amendment
as of the day and year first written above.

FOOTHILL CAPITAL CORPORATION                   IMAGE ENTERTAINMENT, INC.

By: /s/ SHERI FENEBOCK                         By: /s/ JEFF M. FRAMER
    ----------------------------------             -------------------------
Print Name: Sheri Fenenbock                    Print Name: Jeff M. Framer
          ----------------------------                     -----------------
Its: Vice President                            Its: Chief Financial Officer
     ---------------------------------              ------------------------<PAGE>

                                                                    Exhibit 10.1

                              AMENDED AND RESTATED
                       RICKERSHAUSER SEPARATION AGREEMENT

     This Amended and Restated Separation Agreement (this "Separation
                                                           ----------
Agreement") is made this 4th day of February, 2000, by and between PS Group,
---------
Inc., a Delaware corporation (the "Company"), and Charles E. Rickershauser, Jr.
                                  -------
("Employee"), and is effective as of the 18th day of December 1999, with
  --------
reference to the following facts:

     A. Employee has served as Chairman of the Board of the Company since 1991
and as Chief Executive Officer of the Company since October 1994. Employee has
also served as Chairman of the Board and Chief Executive Officer of the
Company's parent corporation, PS Group Holdings, Inc., a Delaware corporation
("Holdings"), since 1996;
  --------

     B. On December 18, 1999, Holdings entered into an Agreement and Plan of
Merger (the "Merger Agreement") with Heritage Air Holdings Statutory Trust, a
             ----------------
Connecticut statutory trust ("Parent"), and PSG Acquisition, Inc., a Delaware
                              ------
corporation ("Merger Sub"), providing for the merger of Merger Sub with and into
              ----------
Holdings (the "Merger"), as a result of which the stockholders of Holdings will
               ------
receive $12 per share for each of their shares and Holdings will become a
wholly-owned subsidiary of Parent;

     C. Employee's employment with the Company and each of its affiliates, and
all of his directorships and offices with the Company and each of its
affiliates, will terminate at the effective time of the Merger (the "Effective
                                                                     ---------
Time");
----

     D. The Board of Directors of Holdings (with the Executive having recused
himself) has determined that Employee's services to Holdings and its
subsidiaries merit a payment to Employee of a bonus, to be paid in accordance
with the following provisions, if the Merger occurs, and the Board of Directors
of the Company (with the Executive having recused himself) has approved this
Separation Agreement; and

     E. Concurrently with the execution of the Merger Agreement, the Company and
Employee entered into a Separation Agreement dated December 18, 1999 (the
"Original Agreement") which they now wish to amend and restate in its entirety.
 ------------------

     NOW THEREFORE, the Company and Employee hereby agree as follows:
<PAGE>

1.   Termination of Employment and Benefits
     --------------------------------------

     (a) At the Effective Time, the employment of Employee by the Company and
each of its affiliates, and all of Employee's directorships and offices with the
Company and each of its affiliates, shall automatically cease.

     (b) At the Effective Time, Employee shall cease to be entitled to any
future compensation or employment benefits from the Company or any of its
affiliates and to any benefits under the general severance policy of Holdings
and its subsidiaries set forth in the resolution of the Board of Directors of
Holdings as adopted on May 30, 1997 (the "Severance Policy"); provided, however,
                                          ----------------
that: (i) the foregoing shall not affect Employee's entitlement to benefits to
which he has theretofore become entitled prior to the Effective Time, whether or
not paid or received; and (ii) the foregoing shall have no effect on the
provisions of the Restated Executive Retirement Agreement dated December 18,
1999 between Employee and the Company (the "Retirement Agreement").
                                            --------------------

2.   Bonus Payments.
     --------------

     (a) In recognition of Employee's valuable contribution to the Company,
Holdings and their affiliates, and in light of the provisions of Section 1 of
this Separation Agreement, the Company shall pay Employee the following bonus
payments (each, a "Bonus Payment") if the Merger occurs:
                   -------------

          (i) On the last day of each calendar month beginning with the month
following the month in which the Effective Time occurs and ending on (and
including) June 30, 2001, the Company shall pay Employee the sum of $11,900; and

          (ii) On June 30, 2001 the Company shall pay Employee an amount (in
addition to the final monthly payment referred to in (i) above) equal to (x)
$400,000 minus (y) the sum of the payments made under (i) above.

     (b) Interest shall accrue from the Effective Time on each Bonus Payment
until the date such Bonus Payment is paid to Employee. Such interest shall
accrue at the short-term 120% AFR (applicable Federal rate) in effect at the
Effective Time, compounded semi-annually, and shall be paid with the applicable
Bonus Payment.

     (c) All Bonus Payments and interest thereon shall be subject to any
deductions or withholdings required by law.

     (d) In the event of Employee's death prior to the payment of any Bonus
Payment, all subsequent Bonus Payments shall be paid, on their respective due
dates (together with interest as specified in Section 2(b)), to Employee's
executor or

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<PAGE>

administrator or to such other person as Employee has theretofore specified in a
signed document delivered to the Company.

     (e) Notwithstanding anything to the contrary in Sections 2(a), (b) and (d),
the Company's obligation to make any Bonus Payment (or interest thereon) shall
be conditioned on:

          (i) Employee having executed, on or after the date on which the
Effective Time occurs, and not having thereafter revoked within the revocation
period specified therein, a Release substantially in the form of Exhibit 1 to
this Separation Agreement; and

          (ii) Employee having complied with his confidentiality obligations
under Section 3 of this Agreement.

     (f) Anything in this Separation Agreement to the contrary notwithstanding,
if any amounts to be paid to Employee (or to his executor, administrator or
other payee specified by him) under this Separation Agreement, or any other
plan, agreement or program of the Company or any of its affiliates, would result
in a "parachute payment" (as defined in Section 280G(b)(2) of the Internal
Revenue Code of 1986, as amended (the "Code"), then the aggregate of such ----
"parachute payments" shall be reduced so that the aggregate of the amounts paid
to Employee which would otherwise constitute "parachute payments" will equal
three times Employee's "base amount" (as defined in Section 280G(b)(3) of the
Code) less $1.00. Any determination to be made under the preceding sentence
shall be made by an independent accounting firm with a nationally recognized tax
practice that has not performed services for the Company or any of its
affiliates, which firm shall be selected by the Company and be reasonably
acceptable to Employee, it being agreed that such accounting firm may not be the
Company's or Holdings' independent auditors. The Company agrees to pay the
accounting firm's fees and expenses with respect to any such determination.
Nothing herein shall limit the parties' respective rights in the event that an
applicable government taxing authority or court takes a position which is
inconsistent with any such determination.

     (g) Employee acknowledges that he has no unused vacation due to him under
the Company's existing vacation policy as applied to him and he will not be
entitled to any accrued vacation when his employment by the Company terminates
at the Effective Time.

3.   Confidentiality
     ---------------

     Employee agrees that he will not use for his own benefit or disclose to any
third party, either during his employment or thereafter, any confidential
information or data concerning the business or activities of the Company, Parent
or any of their respective subsidiaries or affiliates acquired at any time while
employed or rendering services to the

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<PAGE>

Company or any of its subsidiaries or affiliates, or any of their respective
predecessors or successors. Employee's obligations under this covenant and any
liability for failure to satisfy these obligations shall survive any termination
of this Separation Agreement.

4.   Termination
     -----------

     This Separation Agreement shall terminate, and be null and void, in the
event that; prior to the Effective Time:

     (a) The Merger Agreement is terminated pursuant to its terms; or

     (b) Employee's services as an employee of the Company cease for any reason
other than Employee's death or disability.

5.   Entire Agreement
     ----------------

     This Agreement constitutes the entire agreement between the parties
concerning the subject matter hereof, and supercedes, as of the Effective Time,
all other written, oral or implied agreements between the parties including,
without limitation, the Original Agreement and the Severance Policy; provided,
                                                                     --------
however, that this Agreement shall have no effect with respect to (i) the
-------
Retirement Agreement or (ii) the Amended and Restated Split-Dollar Life
Insurance Agreement dated as of January 1, 1999 between the Company and Janet
Rickershauser. This Agreement may be modified or amended only by a writing
signed by both parties.

         IN WITNESS  WHEREOF,  the parties hereto have executed this  Separation
Agreement as of the day and year first written above.

                                          PS GROUP, INC.

                                          By:    /s/ L. A. Guske
                                                ---------------
                                                Lawrence A. Guske
                                                Vice President-Finance

                                                EMPLOYEE

                                           /s/ Charles E. Rickershauser, Jr.
                                          ---------------------------------
                                          Charles E. Rickershauser, Jr

                                       4
<PAGE>

                                                                       Exhibit 1

                             Release From All Claims

                             _________________, 2000

[Name]
[Title]
PS Group, Inc.
[Address]

Dear ______________:

         In consideration of the payment to me (or to my executor, administrator
or other payee designated by me in writing, in the event of my death), on their
respective due dates, of each Bonus Payment, I hereby release and discharge the
Company Parties (as defined below) from any and all claims, actions, causes of
action, suits, costs, controversies, judgements, decrees, verdicts, damages,
liabilities, attorneys' fees, covenants, contracts, and agreements
(collectively, "Claims") that I may have, or in the future may possess, with
                ------
respect to the Company Parties, including, but not limited to, any Claims
relating to my employment with the Company Parties or the termination thereof,
any Claims arising under Title VII of the Civil Rights Act of 1964, the
Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the
Civil Rights Act of 1866, the Civil Rights Act of 1991, the Employee Retirement
Income Security Act of 1974, the Family Medical Leave Act of 1993, each of these
as amended, or any other federal or state or local law, whether such Claim
arises under statute, common law or in equity, and whether or not I or any of
the Company Parties is presently aware of the existence of such Claim, but
excluding the following Claims (the "Excluded Claims"): (i) Claims under the
                                     ----------------
Amended and Restated Separation Agreement dated February __, 2000 between the
Company and me; (ii) Claims under the Retirement Agreement; and (iii) Claims for
indemnification in respect of my services as a director and/or officer and/or
employee of any of the Company Parties in accordance with Sections 5.06(a) and
(b) of the Merger Agreement and related claims under the directors' and
officers' liability insurance policy obtained in accordance with Section 5.06(c)
of the Merger Agreement. I also hereby forever release, discharge and waive any
right I may have to recover in any proceeding brought by any federal, state or
local agency against any of the Company Parties to enforce any such laws, but
excluding Excluded Claims. I agree that the Bonus Payments shall be in full
satisfaction of any and all Claims for payment or other benefits
<PAGE>

of any kind that I may have against the Company Parties except for any other
Excluded Claims.

     For purposes of this letter, the "Company Parties" means the Company,
                                       ---------------
Parent and any and all of their respective predecessor or successor companies,
shareholders, subsidiaries and affiliates wherever located and each of their
present, former and future directors, officers, employees, agents, attorneys,
heirs and assigns. Capitalized terms that are used but not defined herein have
the meanings assigned to them in the Separation Agreement.

     In addition to the foregoing, in consideration of the payment, on their
respective due dates, of each Bonus Payment I hereby release and discharge the
Company Parties from any and all Claims that I may have as of the date I sign
this letter arising under the Federal Age Discrimination in Employment Act of
1967, as amended, and the applicable rules and regulations promulgated
thereunder (the "ADEA"). By signing this letter, I hereby acknowledge and
                 ----
confirm the following: (i) I was advised by the Company to consult with an
attorney of my choice prior to signing this letter and to have such attorney
explain to me the terms of this letter, including, without limitation, the terms
relating to my release of claims arising under the ADEA; (ii) I was given a
period of not fewer than 21 days to consider the terms of this letter and to
consult with an attorney of my choosing with respect thereto; and (iii) I am
providing the release and discharge set forth in this paragraph only in exchange
for consideration in addition to anything of value to which I am already
entitled.

     To ensure that the foregoing release is fully enforceable in accordance
with its terms, I agree to waive any and all rights of Section 1542 of the
California Civil Code (to the extent applicable) as it exists from time to time
or a successor provision thereto, which provides:

          A general release does not extend to claims which the creditor does
     not know or suspect to exist in his favor at the time of executing the
     release, which if known by him must have materially affected his settlement
     with the debtor.

     In addition, to ensure that the foregoing release is fully enforceable in
accordance with its terms, subject to the payment, or their respective due
dates, of each Bonus Payment I agree to waive any protection that may exist
under any comparable or similar statute and under any principle of common law of
the United States or any and all States with respect to all Claims (other than
Excluded Claims).

         THIS MEANS THAT (EXCEPT AS EXPRESSLY  PROVIDED  HEREIN) BY SIGNING THIS
LETTER,  I WILL HAVE  WAIVED ANY RIGHT I MAY HAVE HAD TO BRING A LAWSUIT OR MAKE
ANY CLAIM  AGAINST THE COMPANY

                                       2
<PAGE>

PARTIES BASED ON ANY ACTS OR OMISSIONS OF THE COMPANY PARTIES UP TO THE DATE OF
THE SIGNING OF THIS LETTER.

     In addition I have been advised of my right to revoke this letter during
the seven-day period after signing, provided such revocation is in writing,
signed by me and delivered to the Company. I understand that in the event of any
such revocation, all obligations of the Company with respect to the Bonus
Payments will terminate and be of no further effect as of the date of such
revocation.

                                    _______________________________________
                                    Charles E. Rickershauser, Jr.

ACKNOWLEDGED:

PS GROUP, INC.

By: _____________________________________
    Name:   Lawrence A. Guske
    Title:  Vice President

    Date:   February 4, 2000

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