8-K 1 form8k.txt FORM 8K (HEIL PROMISSORY NOTE) 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 October 26, 2005 -------------------------------------------------------------------------------- Date of Report (Date of earliest event reported) NESTOR, INC. -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-12965 13-3163744 -------------------------- -------------------------------------- (Commission file number) (IRS employer identification number) 42 ORIENTAL STREET; THIRD FLOOR PROVIDENCE, RHODE ISLAND 02908 -------------------------------------------------------------------------------- (Address of principal executive offices) (401) 274-5658 -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable -------------------------------------------------------------------------------- (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): [ ] 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)) ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT. SECURED PROMISSORY NOTE On October 26, 2005 we gave a secured promissory note to Edward F. Heil in the principal amount of $1,250,000.00 with a maturity date of October 25, 2006. The note bears interest at the rate of one percent (1.00%) per month until the Note is paid in full. The due date of the principal and all accrued interest can be accelerated if we default on the note. The note can be prepaid in full or in part on the last calendar day of any month during the term. The note is secured by ten mobile speed enforcement vans including all associated speed detection systems and all rights to operate said systems. If Mr. Heil forecloses on the vans, we will provide citation processing services for Mr. Heil with respect to violation data generated by the vans at commercially reasonable prices and Mr. Heil will have all rights and licenses necessary to so operate the vans for their intended uses. If we are unable to provide Mr. Heil with citation processing services, then Mr. Heil may obtain such services from any person or entity, including our competitors, and Mr. Heil will have all rights and licenses necessary to so operate the vans for their intended uses. In connection with the loan that the secured promissory note evidences, we paid an origination fee of $25,000, and we agreed to pay Mr. Heil's legal fees, related to the loan. ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT. On October 26, 2005, we borrowed $1,250,000 from Mr. Heil pursuant to a secured promissory note. The information set forth in ITEM 1.01. - ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT - SECURED PROMISSORY NOTE is incorporated herein in its entirety. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits See Exhibit Index attached to this Current Report on Form 8-K 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. NESTOR, INC. (Registrant) By: /s/ Harold A. Joannidi -------------------------------------- Harold A. Joannidi Treasurer and Chief Financial Officer Dated: October 31, 2005 EXHIBIT INDEX ------------- Exhibit Number Description -------------- ----------- 10.1 Secured Promissory Note by Nestor, Inc. to Edward F. Heil dated October 26, 2005