Document:

accelera8kx103_4302012.htm

EXHIBIT 10.3

 

 

Accelera Innovations, Inc

20511 Abbey Dr

Frankfort, IL 60423

April 25, 2012

Cindy Boerum

20161 Manning Tr.

Scandia, MN 55073

Dear Cindy:

On behalf of Accelera Innovations, Inc (Accelera) (the “Company”), I am pleased to extend this offer of employment to you for the position of Chief Strategic Officer (CSO) reporting to  John F. Wallin, President and CEO.

 

We are excited about the prospect of your joining the team to help lead our business to new levels of success.  We believe this offer is a strong one and fully recognizes the magnitude of your potential contributions to our organization as we grow the business.

We are pleased to offer you a starting annual base salary of $150,000 (less all applicable withholding and tax deductions), which shall be paid bi-weekly in accordance with the Company’s customary payroll practices.  You will be eligible to participate in our annual review process.

	
1.  

	
Duties and Responsibilities – As the CSO, you will report to the CEO.  Your responsibilities shall include but not be limited to the Sales, Strategy, National Account Development and growth of the company.  This offer is for a full-time position.  The position will require you to travel to other locations as necessary to fulfill your responsibilities.

	
2.  

	
Salary – As agreed, you will begin receiving your paid salary at the time Accelera Innovations, Inc. receives its initial financing of Two Million dollars ($2,000,000). The Board of Directors will implement a bonus structure based on goals, objectives and performance, furthermore, will take into consideration the contribution you have made prior to the financing. 

 

 

Confidential and Proprietary

  

  

  

	
3.  

	
Equity Compensation  – The senior management of the Company will recommend that the Board of Directors grant you One Million, (1,000,000), shares of the Company’s Common Stock under the terms of the Company’s 2011 Stock Option Plan at the exercise price of .0001 per share.  Two Hundred Thousand (200,000) shares shall be vested upon the date of commencement of employment and the ownership in the remaining shares shall vest over the course of the following Forty-Eight (48) months earned monthly, after the commencement of employment so long as you remain an employee of the Company.  Additional stock may be granted in the future at the discretion of the Board of Directors. Accelera is in no way guaranteeing the performance of its stock.  The value of the stock is driven by the performance of the company and how it is perceived in the marketplace.

 

Notwithstanding the foregoing, in the event of a closing of a Change of Control (as defined below) transaction, your option shall immediately vest and become fully exercisable.

 

“Change of Control” shall mean (a) a sale or disposition of all or substantially all of the assets of the Company; (b) any consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization in which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, own less than 50% of the Company’s voting power immediately after such consolidation, merger, or reorganization; or (c) any transaction or series of related transactions in which in excess of 50% of the Company’s voting power is transferred; provided that the foregoing shall not include (i) any consolidation with a wholly owned subsidiary of the Company; (ii) any consolidation or merger effected exclusively to change the domicile of the Company or (iii) any transaction or series of transactions principally for bona fide financing purposes in which cash is received by the Company or indebtedness of the Company is cancelled or converted or a combination thereof.

Please note that at present the Company’s shares are not listed on any stock exchange, publicly traded or qualified for sale to the public.  Any issuance, offer or sale of the Company’s shares (including shares issuable upon exercise of your option) will be subject to compliance with state and federal securities law and the terms of any underwriting, offering or listing agreements.

	
4.  

	
Benefits and Vacation – You will be eligible to receive benefits and vacation time based on the CSO Benefits and Vacation package that the company is in the process of developing.  Benefits being developed will take into account medical and dental insurance needs.  The Benefits and Vacation package is currently being developed by the Board of Directors.  Once finalized, the Benefits and Vacation package will be presented and immediately implemented.

	
5.  

	
Incentive and Bonuses  – You will be eligible to receive additional incentives and bonuses based on the Company’s CSO Incentive Bonus package. The Incentives and Bonus package is currently being developed by the Board of Directors.  Once finalized, the package will be presented and will be implemented retroactive to your start date.

 

 

Confidential and Proprietary

  

2

  

Employee Confidential Information, Non-Circumvention and Non-Solicitation –

To enable the Company to safeguard its proprietary and confidential information, it is a condition of employment that you agree to sign the Company’s standard “Employee Confidentiality, Non-Circumvention and Non-Solicitation” form.  A copy of this agreement is enclosed for your review.  We understand that you are likely to have signed similar agreements with prior employers, and wish to impress upon you that the Company does not want to receive the confidential or proprietary information of others, and will support you in respecting your lawful obligations to prior employers.

	
6.  

	
At -Will Employment – Should you decide to accept our offer, you will be an “at-will” employee of the Company as outlined in the Illinois regulations.  This means that either you or the Company may terminate the employment relationship with or without cause at any time.  Participation in any stock option, benefit, compensation or incentive program does not change the nature of the employment relationship, which remains “at-will.”

	
7.  

	
Authorization to Work – Federal government regulations require that all prospective employees present documentation verifying their identity and demonstrating that they are authorized to work in the United States.  If you have any questions about this requirement, which applies to U.S. citizens and non U.S. citizens alike, please contact our Human Resources Department.

	
8.  

	
Complete Offer and Agreement  – This letter contains our complete understanding and agreement regarding the terms of your employment by the Company.  All of these terms are based on the financing of the company.  This means that if you choose to start employment prior to Accelera receiving its financing, you understand that you are accepting all terms agreed upon on an accrual basis retroactive to your start date.   If for any reason the Company financing is not obtained as expected, both parties may have the option to terminate this contract with thirty (30) days notice.  Accelera will honor all salary obligations, stock earned, and any approved business expenses incurred during the time of employment.  There are no other, different or prior agreements or understandings on this or related subjects.  Changes to the terms of your employment, other than as stated above regarding Company financing, can be made only in writing signed by you and an authorized executive of the Company, although it is understood that the Company may, from time to time, in its sole discretion, adjust the salaries, incentive compensation and benefits paid to you and its other employees, as well as job titles, locations, duties, responsibilities, assignments and reporting relationships.

	
9.  

	
Acceptance of Offer – We hope that you will accept this offer promptly and begin full-time employment at Accelera. by the end of the business day on Friday April 27, 2012.  If our offer is acceptable to you, please sign the enclosed copy of this letter in the space indicated and fax it to me at your earliest convenience at 866-994-6966.Please respond to this offer by end of business day Thursday April 26, 2012.  Upon verbal acceptance, please sign this offer letter and the included forms and fax it to us at 866-994-6966.

 

Confidential and Proprietary

  

3

  

This employment offer is contingent upon the following:

	
·  

	
Your submission of a complete and signed application.

	
·  

	
Your submission of satisfactory proof of identity and legal authorization to work in the United States within three (3) business days of your start date (if you fail to submit this proof, federal law prohibits us from allowing you to work for the Company. A copy of your Drivers License, State ID or Passport and a copy of Social Security Card is required for completion of Form I-9).

	
·  

	
The receipt of this signed offer letter.

	
·  

	
Your execution of a Confidentiality, Non-Circumvention and Non-Solicitation on your first day of employment, a copy of which is attached.  Please review the agreement prior to accepting your offer from Company.

We are looking forward to your coming on board and having a long and fulfilling career with Accelera Innovations, Inc. You will be a member of a select team of professionals contributing to the continued growth of the Company.  If you have any questions, please contact me at 563-449-6049.

 

	  	
Sincerely,

	  	  
	
 

	
 /s/John F. Wallin

	  	
 John F. Wallin

	  	
Accelera Innovations, Inc.

Upon acceptance, please sign and fax to 866-994-6966

I accept the offer of employment by Accelera Innovations, Inc. on the terms described in this letter.

 

Signature: /s/Cynthia Boerum                                                                                

 

Date: April 26, 2012                                                                                

 

My start date will be: April 27, 2012

	
cc:  Board of Directors

	
       Human Resources

 

 

Confidential and Proprietary

4Exhibit 10.1

EXECUTION VERSION

               
Amendment NO. 1, dated as of April 25, 2012 (this “Amendment”), to the Credit Agreement, dated as of March 6, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among CCO HOLDINGS, LLC (the “Borrower”), the lenders parties thereto (the “Lenders”), WELLS FARGO BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), and the other parties thereto.
The Borrower has requested an amendment to the Credit Agreement pursuant to which certain provisions of the Credit Agreement will be amended as set forth herein.
By their execution hereof, each of the undersigned Lenders consent to the changes in this Amendment.
Accordingly, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Lenders party hereto hereby agree as follows:
ARTICLE ONE
DEFINED TERMS
Capitalized terms used but not otherwise defined herein (including the preliminary statements hereto) have the meanings assigned to them in the Credit Agreement.  The provisions of Section 1.2 of the Credit Agreement are hereby incorporated by reference herein, mutatis mutandis.
ARTICLE TWO

AMENDMENTS

Effective as of the Amendment No. 1 Effectiveness Date (as defined below), the Credit Agreement is hereby amended as follows:
(a)Section 1.1 of the Credit Agreement is hereby amended by:

(i)replacing the definition of “Change of Control” in its entirety with the following:

“Change of Control” means the occurrence of any of the following:
(1)    the sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Borrower and its Subsidiaries, taken as a whole, or of a Parent and its Subsidiaries, taken as a whole, to any “person” (as such term is used in Section 13(d)(3) of the Exchange Act) other than a Parent, the Borrower or a Restricted Subsidiary;
(2)    the adoption of a plan relating to the liquidation or dissolution of the Borrower or a Parent (except the liquidation of any Parent into any other Parent);
(3)    the consummation of any transaction, including any merger or consolidation, the result of which is that any “person” (as defined above) other than a Parent becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Borrower or a Parent, 

measured by voting power rather than the number of shares; or
(4)    after the Amendment No. 1 Effectiveness Date, the first day on which a majority of the members of the Board of Directors of CCI are not Continuing Directors.
(ii)replacing the definition of “Investment Grade Rating” in its entirety with the following:

“Investment Grade Rating” means a rating equal to or higher than (x) in the case of Moody's, Baa3 (or the equivalent), (y) in the case of S&P, BBB- (or the equivalent) and (z) in the case of any other Rating Agency, the equivalent rating by such Rating Agency to the ratings described in clause (x) and (y).
(iii)adding the following definitions to such section in alphabetical order:

“Amendment No. 1” means Amendment No. 1 to this Agreement dated as of April 25, 2012.
“Amendment No. 1 Effectiveness Date” has the meaning assigned to such term in Amendment No. 1.
“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Ratings Event.
“Rating Agencies” means (i) each of Moody's and S&P; and (ii) if either of Moody's or S&P ceases to provide a rating or fails to make a rating of CCI publicly available for reasons outside of CCI's control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, as amended, selected by CCI (as certified by a resolution of CCI's Board of Directors) as a replacement agency for Moody's or S&P, or both, as the case may be, that is reasonably acceptable to the Administrative Agent.
“Ratings Decline Period” means the period that (i) begins on the earlier of (a) the date of the first public announcement of the occurrence of a transaction that, if consummated, would constitute a Change of Control and (b) the occurrence of such Change of Control and (ii) ends 90 days following consummation of such Change of Control; provided that such period shall be extended for so long as the rating of the Ratings Entity, as noted by the applicable Rating Agency, is under publicly announced consideration for downgrade by the applicable Rating Agency.
“Ratings Entity” means (i) for so long as CCI (or the other relevant entity to which the “corporate family rating” (or equivalent term) applicable to the Borrower has been assigned) directly or indirectly owns a majority of the common Equity Interests of the Borrower and has not publicly announced a specific transaction pursuant to which CCI (or such other entity specified above) would cease to own a majority of the common Equity Interests of the Borrower, CCI (or such other entity specified above) and (ii) at any time that clause (i) does not apply, any Person whose “corporate family rating” (or equivalent term) is (or following the consummation of a transaction described in clause (i), will be) determined based expressly in whole or part on the fact that the Borrower is part of such Person's “corporate family rating” (or equivalent term).
“Ratings Event” means any of the following:
(1)    (a) (i) in the event that the Ratings Entity is the same both before and after the commencement of the applicable Ratings Decline Period, a downgrade by one or more gradations 

(including gradations within ratings categories as well as between rating categories) or withdrawal of the “corporate family rating” (or equivalent term) of the Ratings Entity within the Ratings Decline Period by one or more Rating Agencies (unless the applicable Rating Agency shall have put forth a written statement to the effect that such downgrade is not attributable in whole or in part to the applicable Change of Control) or (ii) in the event that the Ratings Entity immediately after the commencement of the applicable Ratings Decline Period is a Person other than the Ratings Entity immediately prior to the commencement of such Ratings Decline Period, such Ratings Entity has a “corporate family rating” (or equivalent term) lower than the “corporate family rating” (or equivalent term) of the Ratings Entity immediately prior to the commencement of such Ratings Decline Period and (b) following any such downgrade, the Ratings Entity does not have a “corporate family rating” (or equivalent term) that is an Investment Grade Rating from either Rating Agency; or
(2)    the Ratings Entity does not have a “corporate family rating” (or equivalent term) of at least B1 from Moody's and at least B+ from S&P (or the equivalent ratings in the case of any other Rating Agency), in each case, with a stable or positive outlook, at the time of the applicable Change of Control or at any time thereafter until the termination of the applicable Ratings Decline Period; or
(3)    the Ratings Entity does not have a “corporate family rating” (or equivalent rating) from at least two Ratings Agencies at the time of the applicable Change of Control or at any time thereafter until the termination of the applicable Ratings Decline Period.
(b)Section 6.16 of the Credit Agreement is hereby amended by replacing all references to “Change of Control” therein with “Change of Control Triggering Event”.
ARTICLE THREE
REPRESENTATION AND WARRANTIES; NO DEFAULTS
The Borrower hereby represents and warrants to each other party hereto that:
(a)The Borrower has the power and authority, and the legal right, to make, deliver and perform this Amendment.  The Borrower has taken all necessary action to authorize the execution, delivery and performance of this Amendment.  This Amendment has been duly executed and delivered on behalf of the Borrower.  This Amendment constitutes a valid and legally binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

(b)The execution, delivery and performance of this Amendment will not violate any material Requirement of Law or any material Contractual Obligation of any Designated Holding Company, the Borrower or any of its Subsidiaries and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Pledge Agreement or permitted by Section 6.14).

(c)Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall be true and correct in all material respects on and as of such date as if made on and 

as of such date (except for any representation and warranty that is made as of a specified earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date).

(d)No Default or Event of Default has occurred and is continuing.

ARTICLE FOUR

CONDITIONS TO EFFECTIVENESS

This Amendment shall become effective on and as of the date (such date, the “Amendment No. 1 Effectiveness Date”) on which the Administrative Agent shall have received duly executed counterparts of this Amendment that, when taken together, bear the signatures of the Borrower and the Required Lenders.
ARTICLE FIVE

MISCELLANEOUS

(a)Effect of this Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute an amendment of or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of either such agreement or any other Loan Document.  Each and every term, condition, obligation, covenant and agreement contained in the Credit Agreement or any other Loan Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect.  Each Loan Party reaffirms its obligations under the Loan Documents to which it is party and the validity of the Liens granted by it pursuant to the Collateral Documents.  From and after the Amendment No. 1 Effectiveness Date, all references to the Credit Agreement in any Loan Document shall, unless expressly provided otherwise, refer to the Credit Agreement as amended by this Amendment.

(b)Counterparts; Integration; Effectiveness.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this Amendment.

(c)Governing Law.  This Amendment and the rights and obligations of the parties under this Amendment shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

(d)Headings.  Article and Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

CCO HOLDINGS, LLC,
as Borrower

By:       /s/  Matt L. Derdeyn        
Name: Matt L. Derdeyn    
Title:   Senior Vice President - Finance and Planning     

Signature Page to Amendment No. 1 to Credit Agreement

LENDER SIGNATURE PAGE TO AMENDMENT 
NO. 1 TO CREDIT AGREEMENT OF 
CCO HOLDINGS, LLC

In lieu of signature pages, the following is a list of lenders that signed this amendment:  
Invesco Van Kampen Senior Loan Fund
Invesco Van Kampen Senior Income Trust
Wells Fargo Principal Lending LLC (formerly Foothill Group, Inc.)
ING Investors Trust - ING T. Rowe Price
John Hancock Variable Insurance Trust - New Income Trust
T. Rowe Price Floating Rate Fund, Inc.
Penn Series funds, Inc. - Flexibly Managed Fund
T. Rowe Price Capital Appreciation Fund
Fidelity Advisor Series I: Fidelity Advisor Floating Rate High Income Fund
Fidelity Summer Street Trust: Fidelity Series High Income Fund
TRS HY FNDS LLC
PIMCO Funds: PIMCO Senior Floating Rate Fund
PIMCO Cayman Bank Loan Fund
APIDOS CDO I
APIDOS CDO II
APIDOS CDO III
APIDOS CDO IV
APIDOS QUATTRO CDO
APIDOS CDO V
APIDOS CINCO CDO
ACA CLO 2005-1, LTD
ACA CLO 2006-1, LTD
ACA CLO 2006-2, LTD
ACA CLO 2007-1, LTD
SIERRA CLO II, LTD
SAN GABRIEL CLO I, LTD
APIDOS CLO VIII
U.A.I. (Luxenbourg) Investment S.a.r.l. 
Citibank, N.A.
AMMC CLO III LIMITED
Carlyle Arnage CLO, LTD
Carlyle Azure CLO, LTD
Carlyle Bristol CLO, LTD
Carlyle Daytona CLO, LTD
Carlyle Global Market Strategies CLO 2011-1, LTD
Carlyle High Yield Partners IX, LTD
Carlyle High Yield Partners VI, LTD
Carlyle High Yield Partners X, LTD
Carlyle High Yield Partners VII, LTD
Carlyle High Yield Partners VIII, LTD
Carlyle McLaren CLO, LTD
Carlyle Vantage CLO, LTD
Carlyle Veyron CLO, LTD

Signature Page to Amendment No. 1 to Credit Agreement

Genesis CLO 2007-2 LTD
Mountain Capital CLO IV, LTD
Octagon Investment Partners VIII, LTD
Stichting Depositary APG Fixed Income Credits Pool
Toronto Dominion (Texas) LLC
Trimaran CLO IV LTD
Trimaran CLO V LTD
Trimaran CLO VI LTD
Trimaran CLO VII LTD
Baker Street Funding CLO 2005-1 Ltd.
Baker Street CLO II Ltd.
Baptist Health South Florida, Inc.
Blue Cross of Idaho Health Service, Inc.
Mountain View Funding CLO 2006-I, Ltd.
Mountain View CLO II Ltd.
Mountain View CLO III Ltd.
Ridge Worth Funds - Seix Floating Rate High Income Fund
Rochdale Fixed Income Opportunities Portfolio
Golden Knight II CLO, Ltd.
Lord Abbett Investment Trust-Lord Abbett Floating Rate Fund
Bank of America, N.A.
Barclays Bank PLC

Signature Page to Amendment No. 1 to Credit Agreement

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