8-K 1 k8sheerr.txt CURRENT REPORT REGARDING SHEERR CONSIGNMENT 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 Date of Report (Date of earliest event reported): July 27, 2010 DATARAM CORPORATION ___________________________________________________________________________ (Exact name of registrant as specified in charter) New Jersey 1-8266 22-18314-09 ___________________________________________________________________________ State or other jurisdiction (Commission (IRS Employer of incorporation File Number) Identification No.) Route 571, P. O. Box 7258, Princeton, NJ 08543-7528 ___________________________________________________________________________ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (609) 799-0071 ___________________________________________________________________________ (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: [ ] Written communications pursuant to Rule 425 under the 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)) Section 1 - Registrant's Business and Operations Item 1.01 Entry into a Material Definitive Agreement. On July 27, 2010, the Company entered into a Consignment Agreement (the "Agreement") with Sheerr Memory, Inc. ("SMI"). SMI is owned by David Sheerr, an executive officer (General Manager of the Micro Memory Business Unit) of the Company. Under the Agreement, the Company may direct SMI to purchase, from the Company or other suppliers approved by Dataram, inventory for consignment to the Company for use in its production of its products. A maximum of $3,000,000 in product is allowed to be consigned at any one time, with any amounts over $2,500,000 to be at the discretion of SMI. The Company must purchase any inventory held on consignment within ninety days of the initial procurement by SMI. The Company will pay SMI a monthly fee equal to 0.833% of the average daily balance of the purchase price paid by SMI for the consigned products held by the Company for each calendar month that the Agreement is in effect. The Agreement is for a term of 24 months unless terminated sooner for "cause" or otherwise, as specified in the Agreement. The Agreement requires that the Company repay to David Sheerr all principal and interest due under the Note and Security Agreement, dated as of February 24, 2010, between the Company and Mr. Sheerr within fifteen business days of the effective date of the Agreement. Section 9 - Financial Statements and Exhibits. Item 9.01. Exhibits. Exhibit 10 - Consignment Agreement, dated July 27, 2010, by and between Dataram Corporation and Sheerr Memory, Inc. SIGNATURE 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. DATARAM CORPORATION By: MARK MADDOCKS Date: July 28, 2010 /s/ Mark Maddocks ______________________________________ Mark Maddocks, Vice President-Finance and Chief Financial Officer