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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001144204-06-041686.txt : 20061011
<SEC-HEADER>0001144204-06-041686.hdr.sgml : 20061011
<ACCEPTANCE-DATETIME>20061011094104
ACCESSION NUMBER:		0001144204-06-041686
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061003
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20061011
DATE AS OF CHANGE:		20061011

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ACORN FACTOR, INC.
		CENTRAL INDEX KEY:			0000880984
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				222786081
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19771
		FILM NUMBER:		061139235

	BUSINESS ADDRESS:	
		STREET 1:		200 RTE 17
		CITY:			MAHWAH
		STATE:			NJ
		ZIP:			07430
		BUSINESS PHONE:		2015292026

	MAIL ADDRESS:	
		STREET 1:		200 ROUTE 17
		CITY:			MAHWAH
		STATE:			NJ
		ZIP:			07430

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DATA SYSTEMS & SOFTWARE INC
		DATE OF NAME CHANGE:	19931019

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DEFENSE SOFTWARE & SYSTEMS INC
		DATE OF NAME CHANGE:	19930328
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      the
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</font>Written
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</font>Soliciting
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</font>Pre-commencement
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</font>Pre-commencement
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      October 3, 2006, the Board approved compensation to the Chief Executive Officer
      of the Registrant of $275,000 per year, plus customary benefits. The Board
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Board
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
      the Board adopted a policy of granting (i) 7,500 shares, at an exercise price
      equal to the then fair market value, which options will vest one year after
      the
      date of grant, and be exercisable for six years, to all incumbent directors
      following the date of the annual meeting and (ii) 25,000 shares, at an exercise
      price equal to the then fair market value, which options shall vest one third
      per year, the first third to vest one year following the date of grant, and
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      Board
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      cash retainer, payable quarterly in advance, as well as meeting fees of $500
      for
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      for its directors, the Board also made the following option grants:</font></div>
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                for the purchase of 25,000 shares of the Registrant&#8217;s Common Stock, par
                value $.01 per share, to each of its newly elected Board members,
                Messrs.
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                per
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                on
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                value $.01 per share, to each of the non-employee incumbent directors,
                Messrs. Morgenstern and Zentman. The options have an exercise price
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ACORN
                FACTOR, INC.</font></div>
            </td>
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          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              Sheldon Krause</font></td>
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              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name:
              Sheldon Krause</font></td>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:
              Secretary and General Counsel</font></font></td>
          </tr>

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