Document:

Letter Agreement between the Registrant and Richard Rimer - Exhibit 10.54

                                                      
4 W. Rockland Road, 1st Floor, Montchanin, Delaware 19710
Phone:  (302) 656-170       Fax:  (302) 656-1703

VIA ELECTRONIC MAIL

December 12, 2011

Mr. Richard Rimer
Index Ventures 
2, rue de Jargonnant 
1207 Geneva, Switzerland

Dear Richard:

As we have discussed, Acorn Energy, Inc. (“Acorn”) and its affiliates have entered an exciting period of growth, and we are seeking your assistance to provide leadership as Vice Chairman of the Board of Directors in a consulting role.  This letter agreement constitutes the agreement of Acorn and you (the “Consultant”) to provide the Services described below to Acorn on the following terms:

		
	Consulting Services
	Consultant will provide as an independent contractor executive, business and other services as may be assigned to Consultant by Acorn's CEO (collectively, the “Services”).  The Services will be in addition to your duties as a Director of the Corporation.  

		
	Nature of Services
	Consultant will perform consulting services for Acorn solely as an independent contractor, and Consultant will provide his own computer, cell phone and other equipment and supplies he will need to provide the Services.  Due to the specialized nature of the Services Consultant will need regular access to the relevant Acorn personnel, so Consultant agrees to perform the Services on site at Acorn's and its affiliates' facilities when needed.  

		
	Term
	Six months from January 1, 2012 terminating on June 30, 2012 (the “Term”).  Either Consultant or Acorn may terminate this letter agreement at any time.  

		
	Fees
	In consideration of Consultant's performance of the Services, Acorn will pay Consultant fees of an aggregate of $125,000 payable in accordance with Acorn's normal and customary payroll practices.  In the event Consultant needs time away during the Term, Consultant's fees will be prorated based upon the time away.  

		
	Expenses
	Consultant shall be entitled to reimbursement of reasonable travel and entertainment expenses provided Consultant obtains prior approval from the CEO for all such expenses.  Consultant shall also be entitled to reimbursement of telecommunication, telefax, courier delivery and other expenses relating to 

performance of the Services.  Consultant agrees to comply with Acorn's customary policies for reimbursement of expenses.

		
	Confidentiality
	Consultant will retain in confidence and not disclose any of Acorn's confidential or non-public information to any third party without Acorn's prior written consent.

		
	Availability
	During the Term, due to the nature of the Services Consultant will be available to and will commit to providing his full time and attention to the performance of the Services, and Consultant agrees that he will not seek engagements which will interfere with his ability to perform the Services. 

Independent
		
	Contractor
	a.    In all matters relating to this letter agreement, Consultant shall be acting as an independent contractor.  Consultant will not be an employee of Acorn under the meaning or application of any federal or state unemployment or insurance laws or worker's compensation laws, or otherwise.

b.    Consultant shall supervise the performance of the Services and shall have control of the manner and means by which such Services are performed, subject to compliance with this letter agreement.  Consultant shall assume all liabilities or obligations imposed by any one or more of such laws with respect to the performance of the Services under this letter agreement.

c.    Consultant shall pay and be responsible for all applicable obligations, and file all reports, relating to the fees paid to Consultant including, but not limited to, Social Security, income tax, unemployment compensation, workers' compensation, and all other applicable taxes and other matters.  Consultant shall cover or insure himself in compliance with applicable laws with respect to workers' compensation and employer's liability insurance.

d.    It is understood that any fees or other amounts paid by Acorn to Consultant hereunder shall not be considered salary for retirement, pension or other purposes, and, as an independent contractor, shall not be entitled to any of the other fringe or supplemental benefits of Acorn nor will Acorn withhold any Social Security (FICA) or similar contributions from Consultant's fees, and Acorn shall have no liability whatsoever to Consultant on account of this letter agreement except payment of the amounts provided for herein for compensation for Services actually performed.

e.    Consultant shall be responsible for the payment of all payroll or income taxes or contributions relating to the Services performed hereunder, shall be liable for any failure to do so and hereby indemnifies and agrees to hold Acorn harmless from and against any loss, cost or expenses incurred by Acorn due to Consultant's failure to withhold any such taxes or to make such contributions in respect of any fee Acorn pays to Consultant.

f.    Consultant will not at any time hold himself out as an agent or affiliate of Acorn or create any obligation, express or implied, on behalf of Acorn for any purpose, including without limitation, reporting to any governmental 

authority, and shall have no authority to bind Acorn to any obligation.

		
	Employment
	At the end of the Term, Acorn will evaluate whether to extend to Consultant an offer of employment as Vice Chairman of the Board of Directors.

		
	Renewal
	At the end of the Term, Acorn at its discretion will determine whether to renew this consulting letter agreement.

Sincerely,

John A. Moore
President & CEO

Accepted and agreed:  December _____, 2011

_______________________________
RICHARD RIMERAmendment of Consulting Agreement between Registrant and George Morgenstern - Exhibit 10.55

    

March 15, 2011

Mr. George Morgenstern
5 Shalvah Place
Monsey, New York 10952

Re:    Amendment of Consulting Agreement

Dear George:

This letter will serve to confirm that at the meeting of the Board of Directors of Acorn Energy, Inc. (the “Corporation”) on March 7, 2011 the Board authorized that your Consulting Agreement with the Corporation dated as of March 9, 2006 and as previously amended to provide for payment of a nonaccountable expense allowance (the “Agreement”) be, and hereby is, amended to provide for an extension of the term of the Agreement until March 31, 2012 and to provide that such expense allowance will be paid $18,750 by the Corporation and $37,500 by DSIT Solutions, Ltd. (“DSIT”) for an aggregate of $56,250 per annum.  In addition, the provision in the Agreement regarding a possible bonus is deleted in its entirety.  By its execution of this amendment below DSIT agrees to its obligation to pay $37,500 of such expense allowance, and acknowledges that such payment will inure to its benefit.

Very truly yours,

By:                      
John A. Moore
President and CEO

AGREED AND ACKNOWLEDGED:

DSIT SOLUTIONS, LTD.

By:                      
Benny Sela
CEO

ACCEPTED AND AGREED:

                    
GEORGE MORGENSTERN

4 W. Rockland Road, P.O. Box 9, Montchanin, DE 19710   www.acornenergy.com  Tel: (302) 656-1707   Fax: (302) 656-1703exhibit10_1.htm

 

 

Exhibit 10.1

 

                                                                     

 

FIRST MODIFICATION AGREEMENT

 

This FIRST MODIFICATION AGREEMENT (the “Agreement”) is made effective as of March 13, 2012, by and among FRANKLIN COVEY CO., a Utah corporation (“Borrower”), whose address is 2200 West Parkway Blvd., Salt Lake City, Utah 84119, each undersigned Guarantor, and JPMORGAN CHASE BANK, N.A., a national banking association (“Lender”), whose address is 201 South Main Street, Suite 300, Salt Lake City, Utah 84111.

 

RECITALS:

 

A. Lender has previously extended to Borrower (i) a revolving line of credit loan (the “Revolving Loan”) in the maximum principal amount of TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) and (ii) a term loan (the “Term Loan” and, together with the Revolving Loan, individually and collectively, as the context requires, the “Loan”) in the original principal amount of FIVE MILLION AND NO/100 DOLLARS ($5,000,000.00), each pursuant to an Amended and Restated Credit Agreement dated as of March 14, 2011 between Borrower and Lender (as amended and modified from time to time, the “Credit Agreement”).  The Revolving Loan is evidenced by an Amended and Restated Secured Promissory Note (Revolving Loan) dated March 14, 2011 (as amended and modified from time to time, the “Revolving Loan Note”), executed by Borrower in favor of Lender  and the Term Loan is evidenced by a Secured Promissory Note (Term Loan) dated March 14, 2011 (as amended and modified from time to time, the “Term Loan Note” and, together with the Revolving Loan Note, individually and collectively, as the context requires, the “Note”), executed by Borrower in favor of Lender.  Capitalized terms used herein without definition shall have the meanings given to such terms in the Credit Agreement.

 

B. Repayment of the Loan is guaranteed pursuant to the terms of an Amended and Restated Repayment Guaranty dated as of March 14, 2011 (as amended and modified from time to time, the “Guaranty”), executed by FRANKLIN DEVELOPMENT CORPORATION, a Utah corporation, FRANKLIN COVEY TRAVEL, INC., a Utah corporation, and FRANKLIN COVEY CLIENT SALES, INC., a Utah corporation (individually and collectively, as the context requires, and jointly and severally, “Guarantor”), in favor of Lender.

 

C. The Loan is secured by, among other things, the Security Documents identified in the Credit Agreement.

 

D. The Credit Agreement, Note, Guaranty, Security Documents and all other agreements, documents, and instruments governing, evidencing, securing, guaranteeing or otherwise relating to the Loan, as modified from time to time, including, without limitation, in this Agreement, are sometimes referred to individually and collectively as the “Loan Documents.”

 

E. Subject to the terms and conditions contained herein, Borrower and Lender now desire to modify the Loan Documents to: (i) extend the maturity date of the Revolving Loan from March 14, 2012 to March 31, 2013; and (ii) make such other modifications as are set forth herein.

 

AGREEMENT:

 

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1. ACCURACY OF RECITALS.  Each of Borrower and each Guarantor acknowledges the accuracy of the Recitals which are incorporated herein by reference.

 

  

  

  

 

2. MODIFICATION OF LOAN DOCUMENTS.  The Loan Documents are modified and amended as of the date hereof as follows:

 

(a) Revolving Loan Maturity Date Extension.  The definition of “Revolving Loan Maturity Date” set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Revolving Loan Maturity Date” means March 31, 2013.

 

(b) Adjusted One Month LIBOR Rate.  The definition of “Adjusted One Month LIBOR Rate” set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Adjusted One Month LIBOR Rate” means, with respect to a CB Floating Rate Advance for any day, the sum of (i) 2.50% per annum plus (ii) the quotient of (a) the interest rate determined by Lender or its Affiliates by reference to the Page to be the rate at approximately 11:00 a.m. London time, on such date or, if such date is not a Business Day, on the immediately preceding Business Day for dollar deposits with a maturity equal to one (1) month, divided by (b) one minus the Reserve Requirement (expressed as a decimal) applicable to dollar deposits in the London interbank market with a maturity equal to one (1) month.

 

(c) Conforming Modifications.  Each of the Loan Documents is modified to be consistent herewith and to provide that it shall be a default or an event of default thereunder if any Loan Party shall fail to comply with any of the covenants of any Loan Party contained herein or if any representation or warranty by any Loan Party contained herein or in the documents delivered in connection herewith by any Loan Party is materially incomplete, incorrect, or misleading as of the date hereof.  In order to further effect certain of the foregoing modifications, Borrower and Guarantor agree to execute and deliver such other documents or instruments as Lender reasonably determines are necessary or desirable.

 

(d) References.  Each reference in the Loan Documents to any of the Loan Documents shall be a reference to such document as modified herein or as modified on or about the date hereof.

 

3. RATIFICATION OF LOAN DOCUMENTS AND COLLATERAL. The Loan Documents are ratified and affirmed by Borrower and shall remain in full force and effect as modified herein.  Any property or rights to or interests in property granted as security in the Loan Documents shall remain as security for the Loan and the obligations of Borrower in the Loan Documents.

 

4. FEES AND EXPENSES.

 

(a) Fees and Expenses.  In consideration of Lender’s agreement to amend the Loan Documents as set forth herein, and in addition to any other fees or amounts payable by Borrower hereunder, Borrower has agreed to pay to Lender (i) all legal fees and expenses incurred by Lender in connection herewith; and (ii) all other costs and expenses incurred by Lender in connection with executing this Agreement and otherwise modifying the Loan Documents.  Borrower acknowledges and agrees that such fees are fully earned and nonrefundable as of the date this Agreement is executed and delivered by the parties hereto.

 

(b) Method of Payment.  Such fees shall be paid by Borrower to Lender on the date hereof or at such later date as such fees, costs and expenses are incurred by Lender.  Borrower and

 

  

  

  

 

Lender agree and acknowledge that the foregoing shall not relieve Borrower of its obligation to make future monthly payments of interest and other amounts as required under the terms of the Loan.

 

5. BORROWER REPRESENTATIONS AND WARRANTIES.  Each of Borrower and Guarantor represents and warrants to Lender:  (a) No default or event of default under any of the Loan Documents as modified herein, nor any event, that, with the giving of notice or the passage of time or both, would be a default or an event of default under the Loan Documents as modified herein has occurred and is continuing; (b) There has been no material adverse change in the financial condition of Borrower or Guarantor or any other person whose financial statement has been delivered to Lender in connection with the Loan from the most recent financial statement received by Lender; (c) Each and all representations and warranties of Borrower and Guarantor in the Loan Documents are accurate on the date hereof; (d) Neither Borrower nor Guarantor has any claims, counterclaims, defenses, or set-offs with respect to the Loan or the Loan Documents as modified herein; (e) The Loan Documents as modified herein are the legal, valid, and binding obligation of Borrower and Guarantor, enforceable against Borrower and Guarantor in accordance with their terms; (f) Each of Borrower and each Guarantor is validly existing under the laws of the State of its formation or organization, has not changed its legal name as set forth above, and has the requisite power and authority to execute and deliver this Agreement and to perform the Loan Documents as modified herein; (g) The execution and delivery of this Agreement and the performance of the Loan Documents as modified herein have been duly authorized by all requisite action by or on behalf of Borrower and Guarantor; and (h) This Agreement has been duly executed and delivered on behalf of Borrower and Guarantor.

 

6. BORROWER AND GUARANTOR COVENANTS.  Each of Borrower and Guarantor covenants with Lender:

 

(a) Each of Borrower and Guarantor shall execute, deliver, and provide to Lender such additional agreements, documents, and instruments as reasonably required by Lender to effectuate the intent of this Agreement.

 

(b) Each of Borrower and Guarantor fully, finally, and forever releases and discharges Lender and its successors, assigns, directors, officers, employees, agents, and representatives from any and all actions, causes of action, claims, debts, demands, liabilities, obligations, and suits, of whatever kind or nature, in law or equity, that either Borrower or Guarantor has or in the future may have, whether known or unknown, (i) in respect of the Loan, the Loan Documents, or the actions or omissions of Lender in respect of the Loan or the Loan Documents and (ii) arising from events occurring prior to the date of this Agreement.

 

(c) Contemporaneously with the execution and delivery of this Agreement, Borrower has paid to Lender all of the internal and external costs and expenses incurred by Lender in connection with this Agreement (including, without limitation, inside and outside attorneys, appraisal, appraisal review, processing, title, filing, and recording costs, expenses, and fees).

 

(d) On or prior to the execution and delivery of this Agreement, each of Borrower and Guarantor shall have executed and delivered, or caused to be executed and delivered, to Lender, each in form and substance satisfactory to Lender, such other documents, instruments, resolutions, subordinations, and other agreements as Lender may require in its sole discretion.

 

7. EXECUTION AND DELIVERY OF AGREEMENT BY LENDER.  Lender shall not be bound by this Agreement until (a) Lender has executed and delivered this Agreement to Borrower and Guarantor, (b) each of Borrower and Guarantor has performed all of the obligations of Borrower and Guarantor under this Agreement to be performed contemporaneously with the execution and delivery of this Agreement, if any, (c) Borrower has paid all fees and costs required under Section 4 hereof, and (d) each Guarantor has executed and delivered to Lender a Consent and Agreement of Guarantor in form and content acceptable to Lender.

 

  

  

  

 

8. INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER.  The Loan Documents as modified herein contain the complete understanding and agreement of Borrower, Guarantor and Lender in respect of the Loan and supersede all prior representations, warranties, agreements, arrangements, understandings, and negotiations.  No provision of the Loan Documents as modified herein may be changed, discharged, supplemented, terminated, or waived except in a writing signed by the parties thereto.

 

9. BINDING EFFECT.  The Loan Documents, as modified herein, shall be binding upon and shall inure to the benefit of Borrower, Guarantor and Lender and their successors and assigns; provided, however, neither Borrower nor Guarantor may assign any of its rights or delegate any of its obligations under the Loan Documents and any purported assignment or delegation shall be void.

 

10. GOVERNING LAW. THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF UTAH WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES.  THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF SALT LAKE, STATE OF UTAH OR, AT THE SOLE OPTION OF LENDER, IN ANY OTHER COURT IN WHICH LENDER SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY.  EACH OF THE PARTIES WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

 

11. COUNTERPART EXECUTION.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document.  Signature pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document. Receipt by the Lender of an executed copy of this Agreement by facsimile or email shall constitute conclusive evidence of execution and delivery of this Agreement by the signatory thereto.

 

[Remainder of Page Intentionally Left Blank]

  

  

  

DATED as of the date first above stated.

 

	  	
FRANKLIN COVEY CO.

a Utah corporation

 

 

	
By:

	  /s/ Stephen D. Young
	  	
Name: Stephen D. Young

Title: Executive Vice President and Chief Financial Officer

 

 

“Borrower”

 

 

	
 

 

  

	
FRANKLIN DEVELOPMENT CORPORATION

a Utah corporation

 

 

	
By:

	  /s/ Stephen D. Young
	  	
Name: Stephen D. Young

Title: President

 

 

	  	
FRANKLIN COVEY TRAVEL, INC.

a Utah corporation

 

 

	
By:

	  /s/ Stephen D. Young
	  	
Name: Stephen D. Young

Title: President

 

 

	  	
FRANKLIN COVEY CLIENT SALES, INC.

a Utah corporation

 

 

	
By:

	  /s/ Stephen D. Young
	  	
Name: Stephen D. Young

Title: President

 

“Guarantor”

 

 

 

  

  

  

	  	
JPMORGAN CHASE BANK, N.A.

a national banking association

 

 

	
By:

	  /s/ Tony C. Nielsen
	  	
Name: Tony C. Nielsen

Title: Senior Vice President

 

 

“Lender”

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