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EXHIBIT 10.25
August 31, 1998
One (1) Page Telefax to:
Xx. Xxxxxx Xxxxxx, Chairman & CEO
Xx. Xxxxxxx Xxxx, President & COO
Multimedia Games, Inc.
0000 Xxxxx Xxxxx Xxxx., Xxxxx 000
Xxxxxx, XX 00000
Dear Xxxxxx and Xxxxxxx:
In accordance with our conversation today, this will confirm our mutual
agreement:
1. MGAM will pay $1,000/month rent from January 1998 through
December 1999;
2. My consulting contract remains unchanged;
3. MGAM will grant me an additional 7,500 consulting options at
$3.81 with vesting anniversaries based on a 1/8/98 grant date;
4. MGAM will pay me a $57,500 bonus in September of which I will
apply $52,500 to liquidate my $52,500 note for stock purchased
on 10/17/97 and I will secure the remaining liability of
$100,195 with a "negative pledge" on my ranch; and
5. An additional bonus of $3,000 will be paid before Thanksgiving
1998, which will be applied to interest.
My promissory note to Multimedia Games, Inc. (the "Company") for stock
purchased October 17, 1997 in the amount of $52,500 will be liquidated by
applying $52,500 of a $57,500 bonus to be paid on September 15, 1998. My new
promissory note to the Company in the amount of $100,195 for stock purchased
January 23, 1998 in the amount of $3,880 and on April 15, 1998 in the amount of
$96,315 shall be secured by a negative pledge on my Kansas ranch. The "negative
pledge" is intended to assure the Company that the unencumbered equity in the
ranch (which is assumed to have a fair market value of $400,000 and is currently
encumbered by approximately $60,000 in mortgages) will at all times be at least
$100,195.
If the foregoing accurately sets forth our mutual understanding, please
so indicate by signing a copy of this letter in the place provided below.
Sincerely,
Xxxxx Xxxxxxxxxx
Agreed and Accepted this
31st day of August, 1998
By:
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Xxxxxx Xxxxxx, Chairman & CEO
