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                                                                    Exhibit 10.7

_________ __, 2005

Morgan Joseph & Co. Inc.
600 Fifth Avenue, 19th Floor
New York, New York 10020

            Re: Stone Arcade Acquisition Corporation

Gentlemen:

        This letter will confirm the agreement of the undersigned to purchase
warrants ("Warrants") of Stone Arcade Acquisition Corporation ("Company")
included in the units ("Units") being sold in the Company's initial public
offering ("IPO") upon the terms and conditions set forth herein. Each Unit is
comprised of one share of Common Stock and two Warrants. The shares of Common
Stock and Warrants will not be separately tradeable until 90 days after the
effective date of the Company's IPO unless Morgan Joseph & Co. Inc. ("Morgan
Joseph") informs the Company of its decision to allow earlier separate trading.

        Each of the undersigned agrees that this letter agreement constitutes an
irrevocable obligation by the undersigned to purchase through Morgan Joseph for
the undersigned's account, within the forty-trading day period commencing on the
date separate trading of the Warrants commences ("Separation Date"), as many
Warrants as are available for purchase at market prices not to exceed $.70 per
Warrant, subject to a maximum Warrant purchase obligation equal to the number of
Warrants set forth opposite their respective names below ("Maximum Warrant
Purchase"). Morgan Joseph agrees to fill such order in such amounts and at such
times as instructed by the undersigned, acting through a representative of the
undersigned (the "Representative"), during the forty trading-day period
commencing on the Separation Date. Morgan Joseph further agrees that it will not
charge the undersigned any fees and/or commissions with respect to such purchase
obligation.

        The Representative may notify Morgan Joseph that all or part of the
Maximum Warrant Purchase will be made by one or more affiliates of the
undersigned (or another person or entity introduced to Morgan Joseph by the
undersigned (a "Designee")) who (or which) has an account at Morgan Joseph and,
in such event, Morgan Joseph will make such purchase on behalf of said affiliate
or Designee; provided, however, that the undersigned hereby agree to make
payment of the purchase price of such purchase and to fulfill their Maximum
Warrant Purchase in the event and to the extent that their affiliate or Designee
fails to make such payment or purchase.

        Each of the undersigned agrees that neither he nor any affiliate or
Designee of his shall sell or transfer the Warrants until after the consummation
of a merger, capital stock exchange, asset acquisition or other similar business
combination with an operating business and acknowledges that, at the option of
Morgan Joseph, the certificates for such Warrants shall contain a legend
indicating such restriction on transferability. Each of the undersigned further
agrees to execute an agreement in form and substance reasonably satisfactory to
Morgan Joseph appointing the Representative and granting the Representative the
authority to act on behalf of the undersigned in connection with this agreement

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                    Very truly yours,                 Maximum Warrant Purchase

                    ------------------------
                    Roger W. Stone                           1,100,000

                    ------------------------
                    Matthew Kaplan                           1,100,000

                    ------------------------
                    John M. Chapman                            600,000

                    ------------------------
                    Jonathan R. Furer                          600,000

                    ------------------------
                    Muhit U. Rahman                            600,000
                                                             =========
                                                             4,000,000

                                       2exv10w6

 

			
	
	 	Exhibit 10.6

     2005 Leadership Incentive Plan

Eligibility

Eligible participants include Corporate and Region Executives and others in Leadership roles of
Covansys and must be approved by the Compensation Committee of the Board of Directors.

Participants generally become eligible to participate in the Plan on the date they become actively
employed. Participants become ineligible for participation as of the date of a change into an
ineligible position.

Overview of Plan

The Plan is an annual plan that is effective from January 1, 2005 through December 31, 2005.

Pool Concept

A pool of incentive dollars has been established for the payment of the 2005 Leadership
Incentive Plan. If the company as a whole meets its’ financial gross profit objectives, this pool
will be fully funded for payment of incentives under the Plan. However, if the company falls short
of its goals, the pool of available incentive dollars will be funded at a lower level. If the
company falls below the established threshold for Gross Profit, the Plan will not be funded. There
may, however, be some discretionary funding allocated to the Plan to reward superior individual
performance. If discretionary dollars are used exclusively for incentive payments, any incentive
amount paid shall be at the sole discretion of the Compensation Committee.

Performance Factors

Corporate Gross Profit performance as a percentage of the Company’s operating plan will
establish the overall dollar amount of incentives available. This pool of incentive dollars will
then be distributed to participants in the plan based on their attainment of their individual goals
and objectives.

Individual goals and objectives such as Revenue and Gross Margin will be chosen as the performance
component(s) used to determine a participant’s actual incentive payout from the established pool.

Thresholds

Thresholds are set based on consideration of the difficulty of attaining the particular goal
and objective, last year’s results and expectations at an individual level. Threshold amounts must
be met before any payment occurs to the individual, regardless of overall company performance. No
payment will occur for performance below threshold amounts for any of the performance factors. The incentive payment will increase proportionately as
performance increases.

 

 

Individual Targets

Goals and objectives have been established for company and region performance. Actual
performance compared with the established goals and objectives are the basis for calculating the
incentive amounts. Overall Corporate results determine the pool available to pay participants.

Bonus Opportunity

The targeted total incentive opportunity (“TIO”) is based on market data for like type
positions and the availability of pool funds and is approved by the Compensation Committee. The
TIO is maintained within the Compensation Department at Corporate. Salary changes throughout the
year will not change the TIO.

Upside Potential

Results in excess of the annual targets provide a significant opportunity to earn additional
incentives beyond the target incentive based on the overachievement of the annual goals and
objectives by both the company and the individual. This payment is discretionary, based on the
availability of pool funds.

Payment Date

The incentive payment will be made as soon as practical after the end of 2005.

Termination

To be eligible to receive payment, each employee must be in good standing with the company,
have satisfactory performance and be employed on the day the checks are distributed. Employees
that voluntarily terminate from the company or are involuntarily terminated for cause are
ineligible for payments.

Employees that are involuntarily terminated for reasons other than cause may be eligible to receive
a pro-rated payment for the period worked, based on the company’s performance, and the individual’s
performance against their goals. If applicable, payments would be made at the time other payments
are made.

Leave of Absence / Disability

Employees on an approved leave of absence or disability when the incentives are paid are
eligible to receive a prorated payment for the period in which they worked, at the time of the
regular bonus payment. If applicable, the employee will be paid upon their return to work.

If the employee terminates and does not return to work they will not be eligible to receive any
additional payment, in accordance with our termination rules.

Transfers/Changes

Any changes in TIO, performance factors, goals or plan type require the approval of the
Compensation Committee.

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Windfalls and Catastrophic Losses

A windfall is a potential payment for results not driven by a participant (e.g., acquisitions,
market reconfigurations, changes in business or responsibilities, errors in the Plan). A
catastrophic loss is a situation where participant’s payments are reduced or eliminated due to
business situations that are unforeseeable and unpreventable by the participant (e.g. tornadoes,
floods, or other natural disasters, etc.). If any transaction is identified as a windfall or
catastrophic loss, the affected participant will be notified in writing if there is to be any
adjustment in the calculation or payment.

Plan Termination or Amendment

Covansys intends the Plan to remain in effect throughout 2005. However, Covansys reserves the
right, in its sole discretion, to terminate/change the Plan at any time. Covansys reserves the
right to interpret the plan as necessary. The plan is reviewed periodically and revisions, as
approved by the Compensation Committee, may occur in order to support current business plans.

Unauthorized Representations

No director, officer, employee or other person has the authority to enter into any agreement,
either written or oral, or to make any representation or warranty with any person or participant
concerning participation or a payment under the plan. Only the Covansys CEO will have such
authority, subject to approval by the Compensation Committee.

No Contract of Employment or Participation in the Plan

This incentive plan does not constitute a contract of employment and cannot be relied upon as
such. As always, employment with Covansys is and remains “at will”. No person will, because of
participation in an incentive plan, acquire any right to an accounting or to examine the financial
records or affairs of Covansys. In addition, receipt of this document does not guarantee
eligibility or participation in this plan.

Tax Related Liabilities

Participants are responsible for determining the tax consequences of payments under the plan
and arranging for appropriate withholding. Covansys will not be responsible for and will be held
harmless from liability for payments, interest, penalties, costs or expenses incurred as a result
of not arranging for sufficient withholding or deductions

DEFINITIONS

Revenue (REV) is defined as the aggregate total dollar value billed and revenue accrued to a
customer by Covansys in 2005 for Covansys services that are attributable directly to a participant.

Gross Margin/Profit (GM or GP) is defined as total revenue minus all direct and indirect costs of
revenue (including as applicable but not limited to labor, subcontractors, hardware/software,
“other” direct costs, related depreciation, offshore contractual services, travel and reimbursable
expenses).

Target Incentive Opportunity (TIO) is a percentage of a participant’s current base salary.
TIOs are based on the participant’s level, size of territory, experience, contribution,
performance, internal and external comparators.

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