Glossary of Terms

ACTV - "Average Combined Transaction Volume".

Ad - An Ad is synonymous with a Listing. A Listing is any item advertised on the website.

Additional Contact - Individuals on the Member account that are authorized to make purchases and view account information.

Association Fees - Association Fees are fixed fees, payable by members in cash and in ITEX dollars each four-week accounting Cycle. The standard structure is $20 cash + $10 ITEX dollars per cycle. This fee is modified to $30 ITEX for media-accounts approved to pay all their fees with ITEX dollars rather than cash. Many customer benefits are supported by this fee including up to 5 (five) free checkbooks every year per member, the 24/7/365 Transaction Authorization phone lines and the Co-op Program among many others.

Autopay - The Autopay Program is the payment by Members of Transaction and Association Fees automatically by credit card, debit card, or electronic funds transfer (EFT). The first run for credit and debit cards is the Friday after Cycle Close; the first run for EFT payments is the second Friday after Cycle Close. Being on "Autopay" is required to be a Preferred Member and qualify for 6% transaction fees, Co-op funding, credit lines and other benefits of ITEX membership.

Bartering - Bartering is a medium in which goods or services are directly exchanged for other goods and/or services without a common unit of exchange (without the use of money). It can be bilateral or multilateral, and usually exists parallel to monetary systems. - Source: Wikipedia

Broker or Brokers - refers to our Franchisees, and ITEX Licensed Brokers who provides support services to an ITEX member. We refer to all Brokers collectively as our "Broker Network."

Cash Blend or Cash/Trade Blend - A part-cash/part-trade transaction. If the trade portion is under $5,000 cash it is a violation of the ITEX Trade Rules.

Cash Conversion - Converting ITEX dollars to cash currency (prohibited in the ITEX trading rules).

Clear Title - Warranty on all listings that the selling Member owns and has item available to sell without any lien or restriction.

Co-op Program - The Co-op Program provides up to $10,000 per year per member in reimbursements for approved advertisements they buy with ITEX dollars. ITEX pays back the member 50% of all approved ads within the limits of the Program. It is available to all Preferred Members only. It is not available to Media Fee Status accounts. To participate, the member must use the ITEX Co-op Logo in their advertisement and follow all the rules and regulations of the program as defined and updated from time to time by ITEX Corporation. The program is "at will" by ITEX Corporation and can be modified, suspended or terminated at any time.

Corporate - The general term that refers to the main office in Bellevue, WA that manages the ITEX Marketplace and is responsible for overseeing all aspects involving brokers. The customer service department is located at the headquarters as are the senior executives, finance and administrative divisions.

Corporate Trade - Larger companies, primarily manufacturers, who trade excess inventory in large lots to other companies through brokers at wholesale or book value, rather than severely discounting or donating it. See definition of Retail Trade.

Credit Line - Each Preferred Member of ITEX (paying Standard Association fees of $20 Cash and $10 ITEX each billing cycle) is eligible for an ITEX dollar Credit Line. When an account is opened, it may be assigned a Credit Line by their Broker from $0 to $2,500. If the member desires a Credit Line greater than $2500, with their broker's consent, they must submit a credit application to ITEX Corporation. We will assess their history and credit score and will either (1) grant the increase, (2) decline the increase or (3) suggest a lower amount. If your account has a negative ITEX dollar balance at the end of any billing cycle, credit line interest of 1.5% per Billing Cycle will be charged in ITEX dollars.

CTV - Combined Transaction Volume. This equals the total of all sales + purchase transactional volume generated by 'fee paying' members.

Cycle - Cycle means a four-week accounting period for which members are charged Association Fees and after which fees for transactions are charged to members. Members are billed at the end of each four-week accounting cycle. Currently, each Cycle begins on a Friday and ends at midnight the fourth Thursday following.

Cycle Close - The final day of the ITEX standard four-week accounting (Billing cycle) cycle. Cycle closes every fourth Thursday throughout the year and there are 13 cycles per year.

Direct Trading - A "direct trade" is a transaction whereby two members directly exchange their products or services for the purpose of avoiding Fees due to ITEX. This is usually done in order to avoid paying fees to ITEX and the Broker. This is a direct violation of the Marketplace Rules and may lead to penalty fees or to the termination of both members involved in the direct trade.

Draft Passing - Writing or accepting trade checks or trade dollars from a party other than the party you are directly doing business with to avoid paying fees to the exchange. If an ITEX member accepts an ITEX check for a sale and then uses it to buy something from another member without depositing it they have "Draft Passed". Just like the Direct Trading, this is done to avoid paying fees to ITEX. This is a violation of the ITEX Marketplace Rules and may lead to penalty fees or to the termination of the member.

Due Bill - A promise, in writing, to deliver goods or services in a specific amount in the future in return for trade dollar payment today.

Flagged Listing - A listing that a member can flag ("mark") for easy retrieval in the future.

Franchisee - Owner of a licensed ITEX office and who is responsible for its operation. This includes administration, operations, customer acquisition, and trade directing.

IBA - ITEX Broker's Association - The body comprised of ILB's (ITEX Licensed Brokers) and IFB's (ITEX Franchised Brokers) that speaks through elected representatives to Corporate on behalf of the Broker population. The IBA is one of communications only and has no power of negotiation.

IBABD - "ITEX Broker Association Board of Directors" - The body of elected representatives of the IBA that works closely and regularly with ITEX Corporate. This includes two representatives for each of the 3 (three) regions plus a president who is voted in from the general body of the IBA membership.

ITEX Check - An ITEX Check functions like a bank check and is the primary instrument used to purchase products and services within the Marketplace using ITEX dollars.

ITEX Co-op Logo - ITEX Logo used in an advertisement to be eligible for ITEX dollar reimbursement pursuant to the Co-op Advertising program.

ITEX Dollars - ITEX dollars and ITEX Trade dollars mean the non-cash currency used to enable our members to buy and sell goods and services within the ITEX Marketplace. The ITEX Dollar is an accounting unit used by the ITEX Marketplace to record the value of transactions completed between members. See Marketplace Rules for more information.

ITEX Marketplace - The ITEX Marketplace is the total collection of member businesses throughout the United States, Canada and other countries that utilize the ITEX System to effect cashless business transactions.

Listing - A listing is a product or service that is or has been offered in the ITEX Marketplace.

Marketplace Rules - The Marketplace Rules express the terms and conditions that govern the Member's activity within the ITEX Marketplace. They are a part of the Membership Agreement that contains the whole of the contract that governs the relationship between ITEX and its Members.

Member(s) - Member(s) means one or more of the member businesses or individuals comprising the ITEX Marketplace.

Member Directory - A catalogue of ITEX Members; available to all Members and potential Members, throughout the United States and Canada.

Member Logo - Your company logo or image. The Member logo is displayed in the member directory.

Member Services - The department within ITEX that handles Broker and Member accounting issues involving anything related to actual accounting of trade transactions.

MSR - The MSR (Marketplace Support Representative) is the single point of contact at ITEX Corporation for Brokers and Trade Directors. Each Broker's office has an assigned MSR and all communications regarding member issues should be directed to the MSR assigned to your office.

On Hold - A Member who is not currently accepting ITEX trade dollars. Members can only go "On Hold" if the balance is over $25,000 in their ITEX account and has provided written notification to their ITEX Broker.

Posting - Inputting trade transactions into the TEAM system so the amount moves from the Buyer's account to the Seller's account.

Preferred Members - Preferred Members are those that meet the following 4 (four) criteria: 1) Autopay set up 2) 6%/6% cash transaction fees 3) $20 cash + 10 ITEX dollars Association Fees and 4) receive their cycle statement via Email. Preferred Members qualify for a number of specific benefits within the Marketplace, including use of the Co-op Program and Credit Lines.

Price Gouging - Inflating prices to customers who are paying with ITEX dollars (a violation of the Marketplace Rules).

Primary Contact (Signer) - The main contact of a member account. This person signed the member application and agreed to the User Agreement.

Referral Program - If a Member refers one (1) new member that becomes a Preferred Member, remains current with fees and maintains his or her membership status for three (3) cycles, the cash Association Fees ($10) will be waived for three (3) cycles.

Retail Trade - That which ITEX is engaged in; businesses of all types trading products and services as needed and on an ongoing basis through a retail trade exchange. See definition of Corporate Trade.

Scrip - ITEX certificates used by many ITEX Members who wish to take only limited amounts of ITEX trade dollars each cycle and also Members who sell in smaller amounts. Commonly used by restaurants, ice cream shops and dry cleaners. Scrip comes in sheets of $50 value (amounts of $5, $10, $15, and $20 on a page) or scrip cards of $20, $50, or $100 denominations. Saying or spelling it "Script" is incorrect.

Spend Down Account - An account that has been designated to be closed that still has a positive balance in trade dollars. Members who have spend down accounts have already paid the cash fees in advance to use those funds and they have 12 months from the time the account is closed to bring the balance to zero. A Spend Down Account that remains open after one year is charged $200 ITEX dollars for the privilege of allowing additional time to spend the balance in the account.

S.W.A.T. - Stands for "Sell What's Available Today." Usually consists of a list of "Haves" and "Wants" from the participating Trade Directors' Members. Provides all participating Trade Directors a chance to see what is available - RIGHT NOW - outside of their member base so they can always present a buying opportunity to any member during a personal contact.

System Guide - The blue and white booklet given to new members to help them get an understanding of how the ITEX system functions.

Trade Director - An employee of a Franchisee or Broker. Generally Trade Directors work with an assigned group of Members and are responsible for educating them in the use of their ITEX account. Proactively communicates with all members every four-week cycle to assist them in making sales and purchases using their ITEX dollars.

Trade Dollar - An accounting unit used to track the flow of goods and services through the ITEX system. ITEX trade dollars are not legal tender and cannot be converted to cash. It is a violation of the Marketplace Rules to offer to sell trade dollars.

Transaction - Products and/or services are bought and sold between members using ITEX dollars as the currency. The Seller receives ITEX dollars into their account from the Buyer's account, which can then be used to purchase products and/or services from other Members.

Transaction Fee - The fee charged on all buy and sell transactions. For regular Members this is 7.5%; for Preferred Members it is 6%. Also sometimes referred to as purchase or sales fees.

Want Ads - A member can list a 'Want Ad' on the site. Other members can then search for 'Want Ads' that match the products and/or services they have to offer.

W-9 Form - Form used to report the Member's tax ID information for the proper reporting of sales on Form 1099-B to the IRS.

1099-B Form - Form used to report annual sales information to the member for the proper reporting of sales to the IRS.