UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant |X|
Filed by a Party other than the Registrant |_|
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
|X| Definitive Additional Materials
|_| Soliciting Material Pursuant to ss.240.14a-12
ITEX CORPORATION
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(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:
----------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
----------------------------------------------------------------------
(3) Filing Party:
----------------------------------------------------------------------
(4) Date Filed:
----------------------------------------------------------------------
ITEX CORPORATION
Director Compensation Analysis
April 1, 2001 - January 31, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Director CASH COMPENSATION STOCK COMPENSATION
Annual Committee Consulting Total Stock Options****
From April 1 '01 TO July 31, '01 Retainer* Fees Fees** Cash Comp***
---------------------------------------------------------------------------
Partial Fiscal Year 2001
Elder 6,500 3,500 -- 10,000 -- 50,000
Dethman 6,500 3,500 10,000 -- 50,000
Bronston 6,500 1,500 8,000 -- 50,000
Harris 6,500 1,500 8,000 -- 50,000
Abraham 6,500 6,500 -- 50,000
- ----------------------------------------------------------------------------------------------------------------------------------
SubTotal 32,500 10,000 -- 42,500 -- 250,000
August 1, '01 to July 31, '02
Fiscal Year 2002
Elder 10,000 24,250 22,000 56,250 265,000 15,000
Dethman 10,000 21,250 31,250 115,000 15,000
Bronston 10,000 5,250 15,250 90,000 15,000
Harris 10,000 4,500 14,500 115,000 15,000
Abraham 10,000 10,000 115,000 15,000
- ----------------------------------------------------------------------------------------------------------------------------------
SubTotal 50,000 55,250 22,000 127,250 700,000 75,000
August 1, 02 to January 31, 03
Partial Fiscal Year 2003
Elder 10,001 8,500 2,000 20,501
Dethman 10,001 8,000 18,001
Bronston 10,001 1,500 11,501
Harris --
Abraham 10,001 10,001
- ----------------------------------------------------------------------------------------------------------------------------------
SubTotal 40,004 18,000 2,000 60,004 -- --
GRAND TOTAL
From April 1, 2001 to January, 2003
Elder 26,501 36,250 24,000 86,751 265,000 65,000
Dethman 26,501 32,750 -- 59,251 115,000 65,000
Bronston 26,501 8,250 -- 34,751 90,000 65,000
Harris 16,500 6,000 -- 22,500 115,000 65,000
Abraham 26,501 -- -- 26,501 115,000 65,000
- ----------------------------------------------------------------------------------------------------------------------------------
GRAND TOTAL 122,504 83,250 24,000 229,754 700,000 325,000
- -----------------------------------------------------------------------------------------------
Director TRADE DOLARS TAX GROSS UP
Monthly Consulting STOCK/TRADE $'s
From April 1 '01 TO July 31, '01 Retainer Fees*****
-----------------------------------------
Partial Fiscal Year 2001
Elder 4,000 --
Dethman --
Bronston 4,000 --
Harris 4,000 --
Abraham 4,000 -- --
- -----------------------------------------------------------------------------------------------
SubTotal 16,000 -- --
August 1, '01 to July 31, '02
Fiscal Year 2002
Elder 12,000 14,310
Dethman 2,544
Bronston 12,000 10,450
Harris 12,000 7,950
Abraham 12,000 60,000 7,950
- -----------------------------------------------------------------------------------------------
SubTotal 48,000 60,000 43,204
August 1, 02 to January 31, 03
Partial Fiscal Year 2003
Elder 6,000 3,180
Dethman --
Bronston 6,000 3,180
Harris --
Abraham 6,000 -- 3,180
- -----------------------------------------------------------------------------------------------
SubTotal 18,000 -- 9,540
GRAND TOTAL
From April 1, 2001 to January, 2003
Elder 22,000 -- 17,490
Dethman 2,544
Bronston 22,000 13,630
Harris 16,000 -- 7,950
Abraham 22,000 60,000 11,130
- -----------------------------------------------------------------------------------------------
GRAND TOTAL 82,000 60,000 52,744
FOOTNOTES
* Until the recent change in Director Compensation policies, Directors were
entitled to an annual retainer of $20,000 per year, plus $750 per
committee meeting, $1,000 per meeting for committee chairs. Committee fees
do not apply to the Executive Committee. For FY 2002 and 2003, the then
Directors elected to take half the retainer in cash, the remainder in
stock, valued at then market rates, to conserve cash.
** Mr. Elder was paid consulting fees to cover various corporate
responsibilities as non-Executive Chairman of the Board at the rate of
$2,000 per month. These consulting fees were terminated effective
September 1, 2002.
*** Includes annual grant of 5,000 shares, which was terminated effective
1/1/03. Also includes one half of annual retainer paid in stock, in lieu
of cash. Also includes with respect to Mr. Elder committee fees,
particularly with respect to the Special Committee, paid in stock at then
market values in lieu of cash.
**** Directors received a one-time grant of 50,000 options upon election to the
Board in April 2001. Until the recent change in Director compensation
policies, Directors were also entitled to an annual grant of 15,000
options. The annual grants have been discontinued.
***** Represents fees for consulting services rendered prior to becoming a
Director.