SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant []
Filed by a Party other than the Registrant [X]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[X] Soliciting Material Under Rule 14a-12
ITEX CORPORATION
(Name of Registrant as Specified In Its Charter)
LAKEMONT CAPITAL, LTD. on behalf of The Committee for the
Advancement of Stockholder Equity
(Name of Persons(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(I)(1)and
0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which
the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:_________________
(5) Total fee paid:__________________________________________________
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by
registration statement number, or the Form or Schedule and the date
of its filing.
(1) Amount Previously Paid:__________________________________________
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(3) Filing Party:____________________________________________________
(4) Date Filed:_____________________________________________________
FOR IMMEDIATE RELEASE CONTACT: Steven White
Tuesday, January 7, 2003 CASE "Committee for the Advancement of
Stockholder Equity"
(425) 747-6434
ITEX CORPORATION'S OUTSIDE BOARD'S COMPENSATION DISCLOSED
Seattle, Washington, January 7, 2003 -- The Committee for the Advancement
of Stockholder Equity ("CASE") announced today it has released a worksheet
detailing the compensation paid to the outside Directors of ITEX Corporation
(OTC Bulletin Board:ITEX.OB). The members of CASE plan to correct what they
believe to be unwarranted and excessive compensation paid to the outside
directors of ITEX.
CASE has examined the Board's compensation and believes the outside board
members are paying themselves substantial compensation at the expense of ITEX
and its stockholders. The April 2001 proxy statement used to elect these four
directors stated they would each receive $20,000 and 2,500 shares of stock, plus
additional fees for attending committee meetings. During the board's single
elected term, the compensation of Itex outside directors for all services
rendered from April 4, 2001 through January 28, 2003 (annual meeting date) is
estimated to be as follows:
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Director Compensation Shares Options
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Jeff Elder $ 131,342 270,000 55,000
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Jay Abraham $ 124,667 120,000 55,000
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John Dethman $ 84,392 180,000 55,000
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Bill Bronston $ 69,667 95,000 55,000
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Totals $ 410,068 665,000 220,000
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o Mr. Elder is a former officer of Foundation Health in Sacramento, CA
o Mr. Abraham is CEO of Abraham Consulting of Los Angeles, CA
o Mr. Dethman is COO of New Technologies, Inc of Portland, OR
o Dr. Bronston is CEO of Tower Youth in Sacramento, CA
The worksheet released today was previously sent to ITEX on four occasions,
with the request that ITEX review and correct CASE's assumptions. In a letter to
CASE, dated December 26, 2002, from Jeffrey Elder, Chairman of the Board of
Itex, CASE was informed that "Itex has no obligation to you to review or comment
on your work product, assumptions or estimates and you are not entitled to
assume the agreement of Itex or any of its officers or directors with any such
materials." CASE believes its compensation estimates are substantially accurate,
and to the extent feasible has received confirmation of their accuracy from
current and former directors.
CASE urges all ITEX stockholders to read the CASE proxy statement when it
is available because it will contain important information. Vote the BLUE card
to support CASE Nominees.
Information concerning the identity of the CASE nominees and participants
in this solicitation and their beneficial ownership of the stock of ITEX is
available in our definitive proxy statement filed with the Securities and
Exchange Commission on January 7, 2003. Stockholders and investors may obtain a
copy of the definitive proxy statement and other relevant documents for free on
the SEC's web site: http://www.sec.gov or by fax or email by contacting Steven
White at (425) 747-6434 or steven@morsebest.com.
ITEX Outside Board Compensation Fiscal 2002 & 22 months from April 4, 2001 thru Jan 28, 2003
Committee meetings disclosed for fiscal 2002 in subseqent filing on 121/6/02.
Estimates are based on same frequency for other 10 months
Elder & Dethman reimbursements for tax on stock issuance in 12/6/02 filing, Abraham est for flights from LA
10-k Note 15 is Elder for $22,000 & Abraham for $60,00; add'l compensation may have been paid in fiscal 2003.
Amount
of
cash/ Tax on X met Other
trade Trade
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Cash Other Travel/ Trade Compen- X met other Compen- 2002 Comm- Grand Shares Options Ttl
other sation sation Committee ittee Ttl shares
Name Paid Paid re- Paid based Committee est each compen- comp Compen- Issued Issued &
imburse @ 50% 2002 meeting sation sation options
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Jeff Audit 9 7 1,000 9,000 7,000
Elder
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Executive 7 - -
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Special 10 8 1,000 10,000 8,000
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Compensation 7 5 750 5,250 3,750
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Fiscal yr
02 10,000 22,000 6,675 12,000 6,000 24,250 80,925 265,000 40,000 305,000
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To issue
Jan/2003 5,000 15,000 20,000
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04/01 to
1/03
totals 26,667 22,000 6,675 22,000 11,000 24,250 18,750 131,342 325,000
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Bill
Bronston -
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Executive 7 - -
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Compensation 7 5 750 5,250 3,750
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Fiscal yr
02 12,500 1,000 12,000 6,000 5,250 36,750 90,000 40,000 130,000
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To issue
Jan/2003 5,000 15,000 20,000
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04/01 to
1/03
totals 26,667 - 1,000 22,000 11,000 5,250 3,750 69,667 150,000
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John Audit 9 7 750 6,750 5,250
Dethman
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Executive 7 - -
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Special 10 8 750 7,500 6,000
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Compensation 7 5 1,000 7,000 5,000 175,000 40,000 215,000
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Fiscal yr
02 10,000 2,225 12,000 6,000 21,250 51,475 5,000 15,000 20,000
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To issue
Jan/2003 - 235,000
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04/01 to
1/03
totals 26,667 - 2,225 12,000 6,000 21,250 16,250 84,392
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Jay Abraham -
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Executive 7 - -
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Fiscal yr
02 10,000 5,000 12,000 6,000 - 33,000 115,000 40,000 155,000
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To issue
Jan/2003 5,000 15,000 20,000
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04/01 to
1/03
totals 26,667 60,000 5,000 22,000 11,000 - 124,667 175,000
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Gerry
Harris -
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resigned Executive 7 - -
7/31/02
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Special 10 - 750 7,500 -
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Compensation 7 - 750 5,250 -
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Fiscal yr
02 10,000 1,000 12,000 6,000 12,750 41,750 115,000 - 115,000
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16 months
totals 16,667 22,000 11,000 12,750 - 62,417 115,000
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-
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Ttl re-
imbursements 15,900
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Ttl Outside Board
compensation 77,500 472,485 780,000 220,000 1,000,000
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