<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
MAI SYSTEMS CORPORATION
-----------------------
(Name of Issuer)
COMMON STOCK
------------
(Title of Class of Securities)
552620 20 5
-----------
(CUSIP Number)
GARY J. COHEN, ESQ.
SIDLEY & AUSTIN
555 WEST FIFTH STREET
LOS ANGELES, CALIFORNIA 90013-1010
(213) 896-6013
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
APRIL 19, 1996
--------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [X]. (A
fee is not required only if the reporting person; (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom
copies are to be sent.
(Continued on following pages)
(Page 1 of 34 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 2 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
CPI SECURITIES L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 74,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 74,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [_]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 3 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
CANPARTNERS INCORPORATED
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 493,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 493,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 4 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
VALUE REALIZATION FUND, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 204,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 204,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 5 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
VALUE REALIZATION FUND (CAYMAN), LTD., L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CAYMAN ISLANDS
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 150,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 150,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 6 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
GRS Partners II
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 65,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 65,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 7 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Mitchell R. Julis
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF;PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 513,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 513,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 8 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Joshua S. Friedman
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF;PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 513,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 513,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 9 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
R. Christian B. Evensen
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF;PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 503,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 503,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 10 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
K. Robert Turner
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 2,500
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,500
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 11 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
PATRICK DOOLEY
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 3,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 3,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 12 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Scott Imbach
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 3,500
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 3,500
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 13 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Monica Young
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 14 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
Douglas Claman
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
1,000
REPORTING
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 15 OF 34 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
MICHAEL MCCARTHY
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF
- ------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2ad) OR 2(e) [ ]
- ------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 1,000
SHARES -----------------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY
-----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,000
PERSON -----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
WITH
- ------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
555,000
- ------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES* [ ]
- ------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
8.2
- ------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
<PAGE>
ITEM 1. SECURITY AND ISSUER
This Schedule relates to the Common Stock, par value $.01 per share
(the "Common Stock"), of MAI Systems Corporation, a Delaware corporation
("MAI"), which has its principal executive offices at 9600 Jeronimo Road,
Irvine, California, (714) 580-0700.
ITEM 2. IDENTITY AND BACKGROUND
(a) This Schedule is being filed by the following persons:
(I) CPI Securities L.P., a California limited partnership
("CPI"), the general partner of which is Canpartners
Incorporated ("Canpartners");
(ii) Canpartners, a California corporation, the capital stock of
which is owned one-third each by Mitchell R. Julis, R.
Christian B. Evensen and Joshua S. Friedman;
(iii) Value Realization Fund, L.P., a Delaware limited
partnership ("VRF"), the general partner of which is
Canpartners Investments III, L.P., a California limited
partnership, the general partner of which is Canyon Capital
Management, L.P., a California limited partnership ("CCM"),
the general partner of which is Canpartners;
(iv) Value Realization Fund (Cayman), Ltd., a Cayman Islands
corporation ("VRFC");
(v) GRS Partners II, an Illinois general partnership ("GRS"),
the general partners of which are SDI Securities 2, Inc., a
Nevada corporation ("SDI"), and Investment 2 L.L.C., an
Illinois limited liability company ("I2LLC");
(vi) Messrs. Julis, Evensen and Friedman; and
(vii) K. Robert Turner, Patrick Dooley, Scott Imbach, Monica
Young, Douglas Claman and Michael McCarthy, each as
individuals.
Each of the persons listed in (i) to (vii) above is hereinafter
referred to individually as a "Reporting Person" and collectively as the
"Reporting Persons." The Reporting Persons collectively may be deemed to
be a group beneficially owning, in the aggregate, 555,000 shares of Common
Stock (the "Shares") or approximately 8.2% of the outstanding shares of
Common Stock within the meaning of Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended (the "Act").
The filing of this Schedule shall not be construed as an
admission that any Reporting Person is, for purposes of Section 13(d) or
13(g) of the Act, the beneficial owner of any securities covered by this
Schedule except for the securities stated herein to be beneficially owned
by such Reporting Person.
(b),(c) Canpartners, through its subsidiaries and affiliates,
including CPI and VRF, is primarily involved in trading securities for its
own account and the account of others and in investment advisory and
investment banking services. Mr. Evensen, a director and President of
Canpartners, holds 26.33% of the limited partnership interests in CPI and
holds various positions or limited partnership interests in affiliates of
Canpartners. Mr. Friedman, a director and Vice President and Secretary of
Canpartners, holds 26.33% of the limited partnership interests in CPI and
holds various positions or limited partnership interests in affiliates of
Canpartners. Mr. Julis, a director and Vice President and Treasurer of
Canpartners, holds 26.33% of the limited partnership interests in CPI and
holds various positions or limited partnership interests in affiliates of
Canpartners. Mr. Turner is a shareholder of Canpartners Realty
Corporation, a California corporation, and other affiliates of Canpartners.
Messrs. Dooley, Imbach, Claman and McCarthy and Ms. Young are all employees
of Canpartners or its affiliates in various capacities in the investment
advisor and investment banking industries. The business address of each of
these Reporting Persons is 9665 Wilshire Boulevard, Suite 200, Beverly
Hills, California 90212.
Page 16 of 34 Pages
<PAGE>
VRFC and GRS are each managed accounts of CCM, a registered
investment advisor. The Managing Directors of VRFC are R. Christian B.
Evensen, Peter A. De Ruijter and Roger Hanson. The business address of
VRFC and Messrs. De Ruijter and Hanson is c/o MeesPierson (Cayman) Limited,
P.O. Box 2003, British American Center, Phase 3, Dr. Roy's Drive, Grand
Cayman, B.W.I. The business address of Mr. Evensen is as set forth above.
The general partners of GRS are SDI and I2LLC. The officers and directors
of SDI and the members of I2LLC are set forth on Exhibit A attached hereto.
GRS is administered by Grosvenor Capital Management, L.P., which has power
of attorney to sign on behalf of GRS pursuant to the Joint Venture
Agreement entered into by the general partners. A copy of the Joint
Venture Agreement is attached hereto as Exhibit B, as amended by the
Assignment, Assumption and Amendment Agreement for GRS Partners II, a copy
of which is attached hereto as Exhibit C. The business address of GRS is
c/o Grosvenor Capital Management, L.P., 333 West Wacker Drive, Suite 1600,
Chicago, Illinois 60606.
(d),(e) None of the Reporting Persons during the last five years (1)
has been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors) or (2) was a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result
of such proceeding was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities
subject to, Federal or State securities laws or finding any violation with
respect to such laws.
(f) Each Reporting Person who is a natural person is a citizen of the
United States.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The shares of Common Stock were purchase at a price of $5.75 per
share. The aggregate purchase price for the Common Stock for each
Reporting Person is set forth below:
<TABLE>
<CAPTION>
NUMBER AGGREGATE
OF SHARES PURCHASE
REPORTING PERSON ACQUIRED PRICE
<S> <C> <C>
CPI Securities L.P...................... 74,000 $ 425,500
Value Realization Fund, L.P............. 204,000 1,173,000
Value Realization Fund (Cayman), Ltd.... 150,000 862,500
GRS Partners II......................... 65,000 373,750
Mitchell R. Julis....................... 20,000 115,000
Joshua S. Friedman...................... 20,000 115,000
R. Christian B. Evensen................. 10,000 57,500
K. Robert Turner........................ 2,500 14,375
Patrick Dooley.......................... 3,000 17,250
Scott Imbach............................ 3,500 20,125
Monica Young............................ 1,000 5,750
Douglas Claman.......................... 1,000 5,750
Michael McCarthy........................ 1,000 5,750
</TABLE>
Each of the entities used its own working capital funds to
purchase their shares of Common Stock. Each of the individuals used their
own personal funds to purchase their shares of Common Stock.
ITEM 4. PURPOSE OF TRANSACTION
All of the shares of Common Stock were purchased for investment
purposes only. The Reporting Persons have no plans or proposals with
respect to any of the matters set forth in paragraphs (a) through (j) of
Item 4 of Schedule 13D.
Page 17 of 34 Pages
<PAGE>
ITEM 5. INTEREST IN SECURITIES OF ISSUER
(a) As of the date hereof, each of the Reporting Persons, acting as a
group within the meaning of Section 13(d)(3) of the Act, was the beneficial
owner of an aggregate of 555,000 shares of Common Stock of MAI, which
constituted approximately 8.2% of the 6,728,401 shares of Common Stock
outstanding as of March 22, 1996 (as reported in MAI's Annual Report on
Form 10-K for the year ended December 31, 1995).
(b) With respect to the 74,000 shares of Common Stock acquired by CPI,
CPI exercises both voting and dispositive power and since CPI is controlled
by Canpartners, Canpartners exercises both voting and dispositive power
with respect to such shares. With respect to the 204,000 shares of Common
Stock acquired by VRF, VRF exercises both voting and dispositive power and
since VRF is ultimately controlled by Canpartners, Canpartners exercises
both voting and dispositive power with respect to such shares. With
respect to the 150,000 shares of Common Stock acquired by VRFC, VRFC
exercises both voting and dispositive power and since the account of VRFC
is managed by CCM which is ultimately controlled by Canpartners,
Canpartners exercises both voting and dispositive power with respect to
such shares. With respect to the 65,000 shares of Common Stock acquired by
GRS, GRS exercises both voting and dispositive power and since the account
of GRS is managed by CCM which is ultimately controlled by Canpartners,
Canpartners exercises both voting and dispositive power with respect to
such shares. Canpartners is, in turn, controlled by Messrs. Evensen,
Friedman and Julis and each of these Reporting Persons therefore exercises
both voting and dispositive power with respect to the shares of Common
Stock acquired by CPI, VRF, VRFC and GRS. Each of the Reporting Persons
who is an individual exercises both voting and dispositive power over the
shares of Common Stock acquired by them. Except as set forth in this Item
5(b), none of the Reporting Persons has voting or dispositive power over
another Reporting Person's shares of Common Stock.
(c) Item 3 above sets forth by Reporting Person the amount of shares
acquired and the aggregate purchase price of such shares. All of the
transactions reflected in Item 3 above were effectuated on April 19, 1996.
Except for the acquisition of shares reflected in Item 3 above, none of the
Reporting Persons have effected any transaction in the Common Stock in the
past 60 days.
(d) No persons other than the Messrs. Evensen, Friedman and Julis,
with respect to the shares held by CPI, VRF, VRFC, GRS and those shares
held by them individually, or the other Reporting Persons, each with
respect to the shares of Common Stock acquired by them, have the right to
receive or power to direct the receipt of dividends from, or the proceeds
from the sale of, the shares of Common Stock.
(e) N/A
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO THE SECURITIES OF THE ISSUER
Except with respect to the Joint Filing Agreement among the Reporting
Persons, a copy of which is being filed herewith as Exhibit D, there are no
contracts, arrangements, understandings or relationships among the
Reporting Persons of any other persons with respect to the securities of
the Issuer. CCM is the general partner of the general partner of VRF, and
the investment advisor of GRS and VRFC, and as such has an interest in the
profits of these entities.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A: Executive Officers, Directors and Members
Exhibit B: Joint Venture Agreement of GRS Partners II
Exhibit C: Assignment, Assumption and Amendment Agreement for GRS
Partners II
Exhibit D: Joint Filing Agreement among the Reporting Persons dated
the date hereof.
Page 18 of 34 Pages
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: April 26, 1996
CPI SECURITIES L.P.
By: Canpartners Incorporated, its General
Partner
By:
_______________________________________
R. Christian B. Evensen, President
CANPARTNERS INCORPORATED
By:
________________________________________
R. Christian B. Evensen, President
VALUE REALIZATION FUND, L.P.
By: Canpartners Investments III, L.P., its
General Partner
By: Canyon Capital Management, L.P., its
General Partner
By: Canpartners Incorporated, its
General Partner
By:
____________________________
R. Christian B. Evensen,
President
VALUE REALIZATION FUND (CAYMAN), LTD.
By:
_________________________________________
GRS PARTNERS II
By: Grosvenor Capital Management L.P., its
Administrator
By: Grosvenor Capital Management, Inc.,
its General Partner
By:
______________________________
Paul Meister, Vice President
____________________________________________
MITCHELL R. JULIS
___________________________________________
JOSHUA S. FRIEDMAN
___________________________________________
R. CHRISTIAN B. EVENSEN
Page 19 of 34 Pages
<PAGE>
___________________________________________
K. ROBERT TURNER
___________________________________________
PATRICK DOOLEY
___________________________________________
SCOTT IMBACH
___________________________________________
MONICA YOUNG
___________________________________________
DOUGLAS CLAMAN
___________________________________________
MICHAEL MCCARTHY
Page 20 of 34 Pages
<PAGE>
EXHIBIT A
EXECUTIVE OFFICERS, DIRECTORS AND MEMBERS
SDI SECURITIES 2, INC., a Nevada corporation
232 Court Street
Reno, Nevada 89501
Mark S. Hoplamazian, President and Director
Harold S. Handelsman, Vice President and Treasurer
200 West Madison Street
Chicago, Illinois 60606
Paul A. Bible, Vice President, Secretary and Director
232 Court Street
Reno, Nevada 89501
INVESTMENT 2, L.L.C., an Illinois limited liability company
333 West Wacker Drive, Suite 1600
Chicago, Illinois 60606
Members (each of the members has the same business address as
Investment 2, L.L.C.):
GROSVENOR MULTI-STRATEGY FUND, L.P., an Illinois limited
partnership, the general partner of which is Grosvenor Capital
Management, L.P., an Illinois limited partnership, the general
partner of which is Grosvenor Capital Management, L.P., an
Illinois corporation ("GCM"). The executive officers and
directors of GCM are:
Richard Elden, President and Director
Michael J. Sacks, Vice President, Secretary and Director
Stephen J. Malkin, Director
RANGER DIVERSIFIED INVESTMENT FUND, L.P., a Delaware limited
partnership, the general partner of which is Ranger Capital
Management, L.P., a Delaware limited partnership, the general
partner of which is Ranger Capital Corporation, a Delaware "S"
corporation, whose sole officer and director is Stephen J.
Malkin.
WAVELAND PARTNERS, L.P., an Illinois limited partnership, the
general partner of which is Waveland Capital Management, L.P., an
Illinois limited partnership, the general partner of which is
Clincher Capital Corporation, an Illinois corporation ("CCC").
The executive officers and directors of CCC are:
Stephen J. Malkin, Chairman of the Board of Directors
Michael J. Sacks, Chief Executive Officer and Director
David S. Richter, President, Secretary, Treasurer and
Director
Page 21 of 34 Pages
<PAGE>
GRS PARTNERS II
JOINT VENTURE AGREEMENT ("Agreement") dated as of December 17,
1993, by and among GROSVENOR MULTI-STRATEGY FUND, L.P. ("Grosvenor"),
RANGER DIVERSIFIED INVESTMENT FUND, L.P. ("Ranger") and SDI SECURITIES 2,
INC. ("SDI") (individually a "Partner" and together the "Partners").
GENERAL
-------
1. Name. The name of the joint venture shall be GRS Partners
----
II (the "Joint Venture").
2. Principal Place of Business. The principal place of
---------------------------
business of the Joint Venture shall be at 333 West Wacker Drive, Suite
1600, Chicago, Illinois 60606.
3. Objective. The objective of the Joint Venture is to
---------
identify and invest capital with investment managers ("Managers"); provided
that the Joint Venture shall at no time have an investment with more than
one Manager.
4. Authority of Joint Venture. The Joint Venture is empowered
--------------------------
and authorized to do any and all acts and things necessary, appropriate,
proper, advisable, incidental to or convenient for the furtherance and
accomplishment of its purposes and for the protection and benefit of the
Joint Venture.
5. Authority of Partners. Nothing herein contained shall be
---------------------
construed to require any person to inquire as to the authority of any
Partner or Grosvenor Capital Management, L.P. (the "Administrator") to act
on behalf of the Joint Venture within the scope of this Agreement.
6. Interest in Other Transactions. Nothing in this Agreement
------------------------------
shall prohibit any Partner from buying or selling securities, commodity
interests or currency interests for its own account, including securities,
commodity interests or currency interests which are the same as or
different from those held by a Manager, and neither the Joint Venture nor
any other Partner shall have any interest therein or in the profits
therefrom; provided that no Partner as principal shall buy or sell
securities, commodity interests or currency interests from or to the Joint
Venture (it being understood that contributing capital or withdrawing
capital in kind shall not be prohibited).
7. Personal Property. Each Partner's interest in the Joint
-----------------
Venture shall be personal property for all purposes. All property owned by
the Joint Venture shall be deemed owned by the Joint Venture as an entity,
and no Partner shall have any ownership of such property.
INVESTMENTS AND WITHDRAWALS
---------------------------
8. Investments. Subject to Section 3 hereof, the Joint
-----------
Venture shall invest capital in managed accounts with such Managers as
agreed unanimously from time to time by the Partners. The agreement of the
Partners shall be evidenced by a certificate in the form of Exhibit A
hereto, or such other form adopted by the Partners. Once a Manager is
agreed upon, any Partner may upon ten days written notice to the other
Partners contribute capital to the Joint Venture for investment with such
Manager in an amount determined by such Partner, subject to capacity and
liquidity constraints imposed by such Manager.
9. Withdrawals. Any Partner may withdraw capital unilaterally
-----------
from the Joint Venture at any time upon written notice to the other
Partners, subject to the liquidity constraints imposed by the current
Manager. Such notice must be given at least ten days prior to the last
available withdrawal notice date for the current Manager. The Joint
Venture shall also withdraw all capital from the current Manager in order
to effect the termination of the Joint Venture. Withdrawals shall be made
in cash or, at the option of the Partner(s) making the withdrawal, in
securities or other positions held in the managed account with the current
Manager, subject to the Manager's advisory agreement, any restrictions on
the transferability of securities and applicable law (such securities or
other positions being valued by the Administrator in accordance with such
advisory agreement).
Page 22 of 34 Pages
<PAGE>
10. Distributions. The Joint Venture shall not make any
-------------
distributions to the Partners except as unanimously agreed by the Partners.
However, each Partner may withdraw capital in accordance with Section 9.
11. Administrator. Each Partner hereby appoints Grosvenor
-------------
Capital Management, L.P. as its true and lawful attorney-in-fact and the
Joint Venture's Administrator to take all action (including negotiation of
fees and wiring of funds) and complete, execute and deliver all
documentation (including advisory and brokerage agreements) necessary or
desirable to effect investments and withdrawals and to carry out the
purposes of the Joint Venture. The Administrator may be removed or
replaced by a majority vote of all Partners (with each Partner having one
vote).
12. Borrowings Prohibited. The Joint Venture may not incur any
---------------------
indebtedness for money borrowed or guaranty, endorse or become contingently
liable upon the obligation of any other person (it being understood that
this provision shall not prohibit a Manager from trading securities on
margin or otherwise using leverage in accordance with its trading
strategy).
FINANCIAL MATTERS
-----------------
13. Allocations of Income and Loss. Each Partner shall have a
------------------------------
capital account, the initial balance of which shall consist of such
Partner's initial contribution to the Joint Venture. Income and loss shall
be credited or charged as of the end of each calendar year (as well as at
the end of such intervening accounting periods as the Administrator shall
determine) to the capital account of each Partner in the ratio that the
balance of each account bears to the balance of all such accounts.
14. Capital Contributions. The Partners may contribute capital
---------------------
as specified in Section 8 hereof and shall also contribute capital to the
Joint Venture as they unanimously determine from time to time to be
necessary or desirable for its operation. Capital shall be contributed in
cash or, if agreed by all Partners, in the form of securities or other
positions held in an existing managed account with the proposed Manager
(which securities or other positions shall be valued by the Administrator
in accordance with the existing advisory agreement with the Manager).
15. No Salaries. No compensation or salaries shall be paid by
-----------
the Joint Venture to any person. The Joint Venture shall have no
employees.
16. Expenses. The Joint Venture shall pay its own transactional
--------
expenses, including but not limited to brokerage commissions, interest,
insurance and custody expense, and fees and expenses of Managers. The
Joint Venture shall also pay its own routine operating expenses, including
but not limited to legal, accounting, audit and tax preparation fees and
expenses, except that the Administrator shall pay any such routine
operating expenses in excess of $15,000 per year. Finally, the Joint
Venture shall pay any taxes, litigation or other extraordinary expenses.
The Joint Venture shall not bear any overhead expenses of any Partner.
TAX AND ACCOUNTING MATTERS
--------------------------
17. Partnership Taxation. The parties intend that the Joint
--------------------
Venture shall be treated as a "partnership" for federal, state and local
income and franchise tax purposes, and the parties agree to take all
action, including the amendment of this Agreement and the execution of
other documents as may be required, to qualify for and receive such tax
treatment.
18. Tax Matters Partner. Grosvenor is hereby designated as
-------------------
Tax Matters Partner of the Joint Venture.
19. Allocation of Profits and Losses for Tax Purposes. The net
-------------------------------------------------
profits and losses of the Joint Venture shall be allocated among the Partners
for tax purposes in the same manner as income and loss are allocated pursuant to
Section 13 hereof, so long as such allocations are consistent with the
requirements of the Internal Revenue Code of 1986.
Page 23 of 34 Pages
<PAGE>
20. Tax Elections, Etc. The Administrator shall determine and
-------------------
make all necessary tax elections on behalf of the Joint Venture.
21. Books. The Joint Venture shall maintain its books and
-----
records in accordance with generally accepted accounting principles, except
as otherwise unanimously agreed by the Partners. The Administrator shall be
responsible for maintaining such books and records at the office of the
Joint Venture in Chicago, Illinois.
22. Bank Accounts, Etc. The Administrator shall be
-------------------
responsible for maintaining all bank accounts of the Joint Venture. The
Joint Venture's accounts shall be maintained in the name of the Joint
Venture.
23. Audit. The financial statements of the Joint Venture
-----
shall be audited each year by independent certified public accountants
selected by the Administrator.
24. Fiscal Year. The fiscal year of the Joint Venture shall
-----------
be the calendar year.
REGULATORY MATTERS
------------------
25. Compliance with Laws. Each Partner agrees to comply with
--------------------
all applicable laws and regulations to the extent that not doing so might
have a material and adverse effect on the Joint Venture.
26. Regulatory Status. The Joint Venture will operate as a
-----------------
general partnership and will in no event issue any securities.
LIABILITY; INDEMNIFICATION
--------------------------
27. Standard of Liability. No Partner or the Administrator
---------------------
shall be liable to the Joint Venture or any other Partner for any acts or
omissions in connection with Joint Venture matters unless such acts or
omissions are attributable to fraud, gross negligence or willful
misconduct.
28. Right to Indemnification. Except as prohibited by law,
------------------------
each Partner and the Administrator shall be entitled to indemnification by
the Joint Venture against expenses and any liability paid or incurred by it
in connection with any claim, action, suit or proceeding in connection with
an action taken or omitted to be taken by it on behalf of or in connection
with the Joint Venture in the good faith belief that such action was in, or
not opposed to, the best interests of the Joint Venture, so long as such
action or omission is not in violation of the provisions hereof and does
not constitute fraud, gross negligence or willful misconduct; provided that
if the assets of the Joint Venture are insufficient to satisfy any such
indemnification obligation, each Partner shall be responsible for
satisfying only such percentage of the remaining indemnification obligation
equal to its percentage equity interest in the Joint Venture on the date
the indemnification obligation arose.
WITHDRAWAL AND TERMINATION
--------------------------
29. Withdrawal, Dissolution or Bankruptcy. Any Partner may
-------------------------------------
withdraw from the Joint Venture at any time upon written notice to the
other Partners, subject to the liquidity constraints imposed by the current
Manager. Such notice must be given at least ten days prior to the last
available withdrawal notice date for the current Manager. In addition, in
the event a majority of the Partners (with each Partner having one vote)
desire to change Managers and the remaining Partner(s) refuse to consent to
such change, such majority Partners may require the withdrawal of such
remaining Partner(s) upon at least thirty days' written notice to such
Partner(s) to such effect. Withdrawal, dissolution or bankruptcy of a
Partner shall terminate this Agreement and the Joint Venture shall be
dissolved unless there are at least two remaining Partners which elect to
continue the Joint Venture.
30. Effect of Withdrawal, Dissolution or Bankruptcy. If a
-----------------------------------------------
Partner withdraws or is required to withdraw or is dissolved or becomes
bankrupt and the remaining Partners elect to continue the Joint Venture,
the Joint Venture shall withdraw sufficient capital from the current
Manager to effect the withdrawal of such Partner as promptly as
practicable, subject to Section 33 hereof and the liquidity constraints
imposed by such Manager.
Page 24 of 34 Pages
<PAGE>
Withdrawals shall be made in cash, or, in accordance with the last sentence
of Section 9, in securities or other positions.
31. Termination. The Partners may terminate this Agreement
-----------
and dissolve the Joint Venture at any time by unanimous consent.
32. Accounting Upon Dissolution. The Administrator shall
---------------------------
wind up the affairs of the Joint Venture upon dissolution in accordance
with all applicable law. Upon dissolution, the Joint Venture's assets
shall be distributed in accordance with the Partner's respective capital
accounts.
33. Manager Slots. Upon a change in Managers, the
-------------
withdrawal of a Partner or termination of this Agreement, the right to
maintain a managed account with a Manager shall revert to the Partner that
provided the Manager.
MISCELLANEOUS
-------------
34. Nature of Partnership. The Joint Venture is a general
---------------------
partnership in which all Partners are active participants.
35. Meetings. Any Partner may call a meeting of the Partners
--------
at any time upon thirty days' written notice to the other Partners
specifying the date, time (during regular business hours), place (in
Chicago, Illinois) and purpose of the meeting (subject to rescheduling of
such meeting within the next thirty days if the representative(s) of any
Partner are unavailable on the proposed date). A meeting may be attended
by telephone or proxy. Notwithstanding the foregoing, any action required
or authorized under this Agreement may be taken in accordance with this
Agreement without a meeting.
36. Notices. All notices required or permitted to be given
-------
pursuant to this Agreement shall be given in writing, shall be transmitted
by personal delivery, by registered or certified mail, return receipt
requested, postage prepaid, or by facsimile or other electronic means and
shall be addressed as follows:
(i) if to Grosvenor, to:
Grosvenor Multi-Strategy Fund, L.P.
c/o Grosvenor Capital Management, L.P.
333 West Wacker Drive
Suite 1600
Chicago, Illinois 60606
Attention: Mr. Richard Elden
(ii) if to Ranger, to:
Ranger Diversified Investment Fund, L.P.
c/o Ranger Capital Management, L.P.
333 West Wacker Drive
Suite 1610
Chicago, Illinois 60606
Attention: Mr. Stephen J. Malkin
(iii) If to SDI, to:
SDI Securities 2, Inc.
232 Court Street
Reno, Nevada 89501
with a copy to:
Page 25 of 34 Pages
<PAGE>
SDI Securities 2, Inc.
200 West Madison Street
Suite 3800
Chicago, Illinois 60606
Attention: Harold Handelsman, Esq.
37. Waivers and Amendments. This Agreement may be amended,
----------------------
superseded, canceled, terminated, renewed or extended, and the terms hereof
may be waived, only by a written instrument signed by all parties or, in
the case of a waiver, by the party waiving compliance.
38. Binding Effect. This Agreement shall be binding upon
--------------
and inure to the benefit of the parties and their respective successors and
legal representatives.
39. No Assignment, Except to Affiliates. None of the parties
-----------------------------------
hereto may assign or transfer their interests herein; provided that any
party may assign its interest to any affiliate of such party without,
however, relieving such party of liability for the satisfactory discharge
of such party's obligations hereunder by such affiliate.
40. Survival. The indemnity provisions of this Agreement shall
--------
survive the termination of this Agreement for a period of three years
thereafter; the provisions of this Agreement which by their terms continue
in effect or become effective following the termination of this Agreement
shall survive as indicated therein; and all obligations to settle accounts
hereunder shall survive until such settlement is effected.
41. Further Assurances. The parties hereto shall execute,
------------------
deliver and acknowledge such documents and take such actions as may be
reasonably required to consummate the transactions contemplated hereby.
42. Headings. The headings in this Agreement are for
--------
reference only, and shall not affect the interpretation of this Agreement.
43. Entire Agreement. This Agreement is the entire agreement
----------------
among the parties hereto with respect to the subject matter hereof and
supersedes any prior agreement of the parties with respect thereto.
44. Counterparts. This Agreement may be executed by the
------------
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute one and the same instrument.
45. Relationship to Other Agreement. The investment by SDI in
-------------------------------
the Joint Venture shall be considered part of the "Account," as such term
is defined in the Advisory and Consulting Agreement dated as of November
19, 1993 between SDI Inc. and Grosvenor Capital Management, L.P.
46. Governing Law and Forum. This Agreement shall be governed
-----------------------
by and construed in accordance with the laws of the State of Illinois. The
parties hereby waive any right that they may have with respect to the
partition of any Joint Venture property or asset. Any legal action, suit
or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby shall be instituted in a federal court of
the Northern District of Illinois and each party agrees not to assert, by
way of motion, as a defense or otherwise, in any such action, suit or
proceeding, any claim that it is not subject personally to the jurisdiction
of such court, that the action, suit or proceeding is brought in an
inconvenient forum, that the venue of the action, suit or proceeding is
improper or that this Agreement or the subject matter hereof may not be
enforced in or by such court. Each party further irrevocably submits to the
jurisdiction of such court in any such action, suit or proceeding. Any and
all service of process and any other notice in any such action, suit or
proceeding shall be effective against any party if given personally or by
registered or certified mail, return receipt requested, or by any other
means of mail that requires a signed receipt, postage prepaid, mailed to
such party as herein provided. Nothing herein contained shall be deemed to
affect the right of any party to serve process in any manner permitted by
law.
47. New Partners. New partners of the Joint Venture may be
------------
admitted only with the unanimous approval of the Partners.
Page 26 of 34 Pages
<PAGE>
* * * * *
IN WITNESS WHEREOF, this Agreement has been executed by the
parties hereto as of the day and year first above written.
RANGER DIVERSIFIED GROSVENOR MULTI-STRATEGY
INVESTMENT FUND, L.P. FUND, L.P.
By: Ranger Capital Management, L.P., By: Grosvenor Capital Management, L.P.,
General Partner General Partner
By: Ranger Capital Corporation, By: Grosvenor Capital Management, Inc.
General Partner General Partner
By: ___________________________________ By: ______________________________
Name: Stephen J. Malkin Name: Paul Meister
Title: President Title: Vice President
SDI SECURITIES 2, INC.
By: ______________________________
Name: Harold Handelsman
Title: Vice President
Page 27 of 34 Pages
<PAGE>
ACCEPTANCE OF APPOINTMENT
AS ADMINISTRATOR OF GRS PARTNERS II
The undersigned hereby accepts its appointment as Administrator of
GRS Partners II (the "Joint Venture") and agrees to use its best efforts to
carry out its responsibilities as such in the best interests of the Joint
Venture.
GROSVENOR CAPITAL MANAGEMENT, L.P.
By: Grosvenor Capital Management, Inc.,
General Partner
By: _______________________________
Name: Paul Meister
Title: Vice President
Dated as of December 17, 1993
Page 28 of 34 Pages
<PAGE>
EXHIBIT A
---------
MANAGER CERTIFICATE
The undersigned Partners of GRS Partners II hereby agree to open
an account with the Manager referenced below on the date set forth below
and hereby instruct Grosvenor Capital Management, L.P. to take such action
as it deems necessary or desirable in such regard.
Name of Effective Slot
Manager Date Provider
------- ------ --------
RANGER DIVERSIFIED GROSVENOR MULTI-STRATEGY
INVESTMENT FUND, L.P. FUND, L.P.
By: Ranger Capital Management, L.P., By: Grosvenor Capital Management,L.P.,
General Partner General Partner
By: Ranger Capital Corporation, By: Grosvenor Capital Management,Inc.,
General Partner General Partner
By: ______________________________ By: ______________________________
Name: Name:
Title: Title:
SDI SECURITIES 2, INC.
By: ______________________________
Name:
Title:
Page 29 of 34 Pages
<PAGE>
EXHIBIT C
ASSIGNMENT, ASSUMPTION AND AMENDMENT AGREEMENT
FOR GRS PARTNERS II
This Assignment, Assumption and Amendment Agreement (the
"Assignment Agreement") dated as of June 1, 1994 (the "Assignment Date") is
among Grosvenor Multi-Strategy Fund, L.P. ("Grosvenor"), Ranger Diversified
Investment Fund, L.P. ("Ranger"), SDI Securities 2, Inc. ("SDI") and
Investment 2 L.L.C. ("Assignee").
WHEREAS, Grosvenor, Ranger and SDI entered into a Joint Venture
Agreement dated as of December 17, 1993 (the "Agreement") with respect to
GRS Partners II (the "Joint Venture"); and
WHEREAS, each of Grosvenor and Ranger wishes to assign to
Assignee the Agreement and all of its rights and obligations under the
Agreement, and the other parties have agreed to and consent to each such
transfer.
NOW THEREFORE, for good and valuable consideration, receipt of
which is hereby acknowledged, the parties hereto agree as follows:
1. Each of Grosvenor and Ranger hereby transfers, assigns and
delegates to the Assignee the Agreement and all of its rights and
obligations under the Agreement, whether now existing or hereafter arising.
The Assignee hereby accepts and assumes the Agreement and all of the rights
and obligations of Grosvenor and Ranger under the Agreement, whether now
existing or hereafter arising.
2. SDI and Ranger hereby consent to the transfer, assignment
and delegation by Grosvenor to the Assignee and SDI and Grosvenor hereby
consent to the transfer, assignment and delegation by Ranger to the
Assignee as set forth above. Grosvenor, Ranger and SDI hereby
unconditionally release each other from any obligations or liabilities
under the Agreement, except with respect to any antecedent breach or
liability of the other occurring prior to the Assignment Date. SDI hereby
agrees to admit the Assignee as a partner of the Joint Venture as of the
Assignment Date.
3. The third sentence of Section 29 of the Agreement and the
words "or is required to withdraw" in the first sentence of Section 30 of
the Agreement shall be deleted.
4. The Assignee shall be the Tax Matters Partner of this Joint
Venture.
5. Notices to the Assignee shall be sent to it care of Grosvenor
at the address set forth in the Agreement.
6. The Manager Certificate attached to the Agreement shall be
replaced by Exhibit A hereto.
7. This Assignment Agreement shall be governed by and construed
in accordance with the laws of the State of Illinois.
8. This Assignment Agreement may be executed in one or more
counterparts, each of which when so executed shall be deemed to be and
hereby is an original; such counterparts, together, shall constitute one
and the same agreement.
9. Except as otherwise modified herein, the Agreement remains in
full force and effect in accordance with its terms.
<PAGE>
Page 30 of 34 Pages
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this
Assignment Agreement to be executed and delivered by their respective
authorized persons as of the date first appearing above.
RANGER DIVERSIFIED GROSVENOR MULTI-STRATEGY
INVESTMENT FUND, L.P. FUND, L.P.
By: Ranger Capital Management, L.P., By: Grosvenor Capital Management, L.P.,
General Partner General Partner
By: Ranger Capital Corporation, By: Grosvenor Capital Management, Inc.,
General Partner General Partner
By: ______________________________ By: _________________________________
Name: Stephen J. Malkin Name: Paul Meister
Title: President Title: Vice President
SDI SECURITIES 2, INC. INVESTMENT 2 L.L.C.
By: ______________________________ By: Grosvenor Multi-Strategy Fund, L.P.
Name: Mark S. Hoplamazian
Title: Vice President By: Grosvenor Capital Management, L.P.
General Partner
By: Grosvenor Capital Management, Inc.
General Partner
By: _________________________________
Name: Paul Meister
Title: Vice President
Page 31 of 34 Pages
<PAGE>
EXHIBIT A
---------
MANAGER CERTIFICATE
The undersigned Partners of GRS Partners II hereby agree to open
an account with the Manager referenced below on the date set forth below
and hereby instruct Grosvenor Capital Management, L.P. to take such action
as it deems necessary or desirable in such regard.
Name of Effective Slot
Manager Date Provider
------- ---------- --------
SDI SECURITIES 2, INC. INVESTMENT 2, L.L.C.
By: ______________________________ By: ________________________________
Name: Name:
Title: Title:
Page 32 of 34 Pages
<PAGE>
EXHIBIT D
JOINT FILING AGREEMENT
(Pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934, as
amended)
Each of the undersigned hereby agrees to be included in the filing of
the Schedule 13D dated April 26, 1996 and any subsequent amendments hereto,
relating to the shares of Common Stock, par value $.01 per share, of MAI Systems
Corporation, a Delaware corporation, beneficially owned by each of the
undersigned.
April 26, 1996
CPI SECURITIES L.P.
By: Canpartners Incorporated, its General
Partner
By:
___________________________________
R. Christian B. Evensen, President
CANPARTNERS INCORPORATED
By:
________________________________________
R. Christian B. Evensen, President
VALUE REALIZATION FUND, L.P.
By: Canpartners Investments III, L.P., its
General Partner
By: Canyon Capital Management, L.P.,
its General Partner
By: Canpartners Incorporated,
its General Partner
By:
________________________
R. Christian B. Evensen,
President
VALUE REALIZATION FUND (CAYMAN), LTD.
By:
____________________________________________
GRS PARTNERS II
By: Grosvenor Capital Management L.P., its
Administrator
By: Grosvenor Capital Management, Inc.,
its General Partner
By:
_______________________________
Paul Meister, Vice President
___________________________________________
MITCHELL R. JULIS
___________________________________________
JOSHUA S. FRIEDMAN
___________________________________________
R. CHRISTIAN B. EVENSEN
Page 33 of 34 Pages
<PAGE>
___________________________________________
K. ROBERT TURNER
___________________________________________
PATRICK DOOLEY
___________________________________________
SCOTT IMBACH
___________________________________________
MONICA YOUNG
___________________________________________
DOUGLAS CLAMAN
___________________________________________
MICHAEL MCCARTHY
Page 34 of 34 Pages
