Attached files
UNITED STATES
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
December 13, 2010
Date of Report (Date of earliest event reported)
GLOBAL ENTERTAINMENT CORPORATION
(Exact name of registrant as specified in its charter)
Nevada 000-50643 86-0933274
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
1600 N. Desert Drive, Suite 301, Tempe, AZ 85281
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (480) 994-0772
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:
[ ] Written communications pursuant to Rule 425 under Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] 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 December 13, 2010, Global Entertainment Corporation ("Global") entered into a
line of credit and security agreement (the "Agreement") with Boston Pizza
Restaurants (USA), Inc. ("Boston's"). Under the Agreement Global may borrow up
to $2,000,000, subject to certain limitations on the amount and frequency of
borrowings. Borrowings can occur no more than once per month and must occur on
or prior to April 30, 2011, and all outstanding amounts must be repaid in full
by June 30, 2011. Global has the right under the Agreement to two successive six
month extensions, provided that Global pays an extension fee of $20,000 for each
such extension. Interest on the outstanding principal balances is computed daily
at the rate of 12.75%. The Agreement is secured by all of the accounts
receivable of Global and its subsidiaries and by a pledge of all of Global's
interest in the wholly-owned subsidiaries Global Entertainment Ticketing, a
Nevada corporation and Western Professional Hockey League, Inc., a Texas
corporation. The Agreement contains customary events of default, including
failure to make payments when due or the dissolution, insolvency and bankruptcy
of Global.
James Treliving and George Melville, the beneficial owners of 100% of Boston's,
are directors of Global. In connection with the agreement, Mr. Treliving and/or
Mr. Melville, on a combined basis, will be granted options under Global's 2007
Long-Term Incentive Plan for the purchase of 50,000 shares of Global common
stock, at a strike price of $0.20 per share. The options will vest June 30,
2011, and expire June 30, 2021.
The foregoing description of the Agreement does not purport to be complete and
is qualified in its entirety by reference to the Agreement, which is attached as
Exhibit 10.1 hereto and is incorporated herein by reference.
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
The information provided in Item 1.01 of this current report on Form 8-K is
hereby incorporated into this Item 2.03 by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
Exhibit Description
------- -----------
10.1 Line of Credit and Security Agreement.
2
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.
GLOBAL ENTERTAINMENT CORPORATION
Date: December 17, 2010 By: /s/ Charles B. Mathews
-------------------------------------------
Name: Charles B. Mathews
Title: Vice President, Chief Financial Officer
