SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): November 30, 2014
ITEX Corporation
(Exact Name of Registrant
as Specified in its Charter)
Nevada |
0-18275 |
93-0922994 |
(State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS employer identification number) |
3326 160th Avenue SE, Suite 100, Bellevue, WA |
|
98008 |
(Address of principal executive offices) |
|
(Zip code) |
Registrant’s telephone, including
area code (425) 463-4000 |
N/A |
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
| o | Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01 |
|
Entry into a Material Definitive Agreement |
On November 30, 2014, ITEX Corporation and
U.S. Bank entered into an Amendment to the Loan Agreement and Note (the “Amendment”), to extend the maturity date of
its revolving credit facility to November 30, 2015, with a maximum loan amount of $1.0 million. The line of credit facility was
originally established with U.S. Bank on December 2, 2004. There is no current outstanding balance on the line of credit. In connection
with the Amendment, ITEX paid a $1,500 loan fee.
The foregoing summary of the Amendment is
qualified in its entirety by the terms and provisions of the Amendment. A copy of the Amendment is filed as Exhibit 10.1 to this
report. The Revolving Credit Agreement was attached as Exhibit 10.1 to our current report on Form 8-K, filed November 12, 2009,
and is incorporated by reference. The Business Security Agreement granting a security interest in specified Collateral (defined
in the Security Agreement) to U.S. Bank to secure obligations under the Credit Agreement and Note was attached as Exhibit 10.2
to our current report on Form 8-K, filed July 6, 2005, and is incorporated by reference.
Item 2.03 |
|
Creation of a Direct Financial Obligation |
The information set forth above under Item
1.01 is incorporated into this Item 2.03 by reference.
Item 9.01 |
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Financial Statements and Exhibits |
(d) |
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Exhibits. |
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Exhibit Number |
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Description |
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10.1 |
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Amendment to Loan Agreement and Note |
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SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ITEX Corporation
(Registrant)
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Date: December 1, 2014
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By: |
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/s/ Steven White |
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Steven White
Chief Executive Officer |
AMENDMENT TO LOAN AGREEMENT AND NOTE
This
amendment (the "Amendment") is
made between the undersigned borrower (the "Borrower") and
U.S. Bank National Association (the "Bank") and
shall be effective as of the date set forth on the last page of the Amendment, except as otherwise provided below.
RECITALS
| A. | Borrower (or predecessor) and Bank (or
predecessor) executed a loan agreement originally dated or amended or restated as of November 4, 2009 (as further amended and/or
restated, the "Agreement"). In
accordance with the Agreement, Borrower (or predecessor) executed a note originally dated or amended or restated as of November
4, 2009 (as further amended and/or restated, the "Note"). The Agreement, the Note and all collateral and/or other documents,
which may or may not be identified in the Agreement, which supplement, secure or otherwise relate to the credit facility created
under the Agreement and evidenced by the Note are collectively referred to as the "Loan
Documents". The Loan Documents set forth the terms and
conditions upon which Borrower has obtained or may obtain a loan or loans from Bank in the original or amended or restated principal
amount of $1,000,000.00, as such amount may have been or may from time to time be increased or decreased according to the terms
of the Loan Documents. |
| B. | Borrower has requested that Bank permit certain modifications to the Agreement and Note as described
below. |
| C. | Bank has agreed to such modifications, but only upon the terms and conditions outlined in the Amendment. |
In consideration of the mutual covenants contained
herein, and for other good and valuable consideration, Borrower and Bank agree as follows:
ADDITIONS, DELETIONS OR CHANGES IN TERMS
The following provisions are
hereby added to the Agreement and Note or, if so indicated below, specified provisions of the Agreement and Note are modified,
in part, or deleted or performance thereof is waived to the extent provided below. If any provision or partial provision added
below already exists in the Agreement or Note, such provision is restated in its entirety. Capitalized terms used in the Amendment
not otherwise defined herein shall have the meanings ascribed to them in the Agreement.
Modification of
Maturity Date. Any references in the Agreement or Note to the
maturity date or date of final payment are hereby deleted and replaced with "November 30, 2015".
Default
Interest Rate. Notwithstanding any provision of the Note to
the contrary, upon any default or at any time during the continuation thereof (including failure to pay upon maturity), Bank may,
at its option and subject to applicable law, (a) increase the interest rate on the Note to a rate of 5% per annum plus the interest
rate otherwise payable under the Note and (b) until Bank elects to accelerate payment of the Note according to the default section,
increase the required periodic payments under the Note accordingly. Notwithstanding the foregoing and subject to applicable law,
upon the occurrence of a default by Borrower or any guarantor involving bankruptcy, insolvency, receivership proceedings or an
assignment for the benefit of creditors, the interest rate on the Note shall automatically increase to a rate of 5% per annum plus
the rate otherwise payable under the Note.
MISCELLANEOUS TERMS
Effectiveness
of Prior Documents. Except as specifically amended hereby,
the Agreement, the Note and the other Loan Documents shall remain in full force and effect in accordance with their respective
terms. All warranties and representations contained in the Agreement and the other Loan Documents are hereby reconfirmed as of
the date hereof. All collateral previously provided to secure the Agreement and/or Note continues as security, and all guaranties
guaranteeing obligations under the Loan Documents remain in full force and effect. This is an amendment, not a novation.
Preconditions to
Effectiveness. The Amendment shall only become effective upon
execution by Borrower and Bank, and approval by any other third party required by Bank.
No
Waiver of Defaults; Warranties. The Amendment shall not be
construed as or be deemed to be a waiver by Bank of existing defaults by Borrower, whether known or undiscovered. All agreements,
representations and warranties made herein shall survive the execution of the Amendment.
Counterparts.
The Amendment may be signed in any number of counterparts,
each of which shall be considered an original, but when taken together shall constitute one document.
Authorization.
Borrower represents and warrants that the execution, delivery and performance of the Amendment and the documents referenced herein
are within the authority of Borrower and have been duly authorized by all necessary action.
Copies; Electronic Records.
Borrower hereby acknowledges the receipt of a copy of the Amendment, the Agreement and Note and all other Loan Documents. Bank
may, on behalf of Borrower, create a microfilm or optical disk or other electronic image of the Amendment, and any or all of the
Loan Documents, including the Agreement and Note. Bank may store the electronic image of such Amendment and Loan Documents in its
electronic form and then destroy the paper original as part of Bank's normal business practices, with the electronic image deemed
to be an original. To the extent permitted by law, Borrower and Bank agree that Bank may convert the Note into a "transferable
record" or the equivalent thereof as defined in applicable law and that such transferable record shall be the authoritative
copy of the Note. Bank, on its own behalf, may control and transfer such authoritative copy as permitted by such law.
Attachments. All documents attached hereto, including
any appendices, schedules, riders, and exhibits to the Amendment, are hereby expressly incorporated herein by reference.
Dated as of November 30, 2014.
BORROWER:
Itex Corporation
a Nevada Corporation
By: /s/ Steven White
Name and Title Steven M. White, Chairman/ CEO
BANK:
Agreed to:
U.S. Bank National Association
By:/s/ Timothy J. Flynn
Name and Title Timothy J. Flynn, Vice President
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