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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): December 3, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>Youbet.com, Inc.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>0-26015</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>95-4627253</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>5901 De Soto Avenue<BR>Woodland Hills, California <BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>91367</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(818) 668-2100</B>


<TABLE border="0" width="30%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="100%">&nbsp;</TD>
</TR>
<TR>
    <TD nowrap style="border-bottom: 1px solid #000000"><B>&nbsp;</B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">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:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">On December&nbsp;3, 2008, we and two of our subsidiaries, United Tote Company and Youbet Services
Corporation, entered into a loan and security agreement with National City Bank. The loan and
security agreement, National City Bank provides for a $10.0&nbsp;million term loan, and a $5.0&nbsp;million
revolving line of credit and letter of credit facility. In no event, however, may the aggregate
principal amount borrowed by us under the loan and security agreement exceed a borrowing base
determined by the amount of our available cash plus a percentage, differing in each case, of the
value of certain of our eligible accounts, inventory and equipment, subject to additional reserves
established by National City Bank at its discretion. In connection with closing the loan and
security agreement, we paid National City Bank a fee of $225,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Any indebtedness under the term loan and the revolving credit facility bears interest at a variable
rate equal to either, at our discretion, prime plus 200 to 250 basis points or LIBOR plus 325 to
375 basis points. The applicable basis point margin is determined by our leverage ratio as at the
most recently delivered calculation thereof pursuant to provisions of the loan and security
agreement. Any interest accruing on the basis of the prime rate is due and payable on the first
business day of each month. Any interest accruing on the basis of LIBOR is due and payable on the
date upon which such LIBOR loan ends as determined by us. LIBOR loans may have a one-, two- or
three-month term.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">On December&nbsp;3, 2008, we borrowed the full $10.0&nbsp;million under the term loan. We used $4.6&nbsp;million
to repay principal and interest repay in full amounts owed to Wells Fargo Foothill, Inc., as well
as fees and expenses associated therewith, and the remaining proceeds will be used for general
corporate purposes. We have not borrowed any amounts under the revolving and letter of credit
facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The outstanding principal amount under the term loan is due and payable on the last day of each
quarter beginning on December&nbsp;31, 2008 in installments of $1.25&nbsp;million. The term loan and the
revolving credit facility each mature on November&nbsp;30, 2010. The loan and security agreement
provides for mandatory prepayment in the event of certain asset sales and recovery events;
provided, that, so long as an event of default has not occurred, a mandatory prepayment of the net
proceeds is not required, subject to certain thresholds or amounts as more fully described in the
loan and security agreement. Our indebtedness under the loan and security agreement is guaranteed
by UT Gaming, Inc., the direct parent of United Tote Company, and secured by substantially all of
our assets, including our intellectual property, and UT Gaming&#146;s equity in United Tote Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">We are subject to customary covenants under the loan and security agreement, including restrictions
on our ability to incur indebtedness, make investments, pay dividends or engage in mergers and
acquisitions. The loan and security agreement also contains certain financial covenants, including
(i)&nbsp;a requirement to maintain a specified debt service coverage ratio, (ii)&nbsp;a requirement to
maintain a leverage ratio not to exceed 2:1, (iii)&nbsp;a requirement to maintain a certain specified
adjusted EBITDA and (iv)&nbsp;limitations on capital expenditures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The foregoing description of the loan and security agreement and the term loan, the revolving
credit facility and the letter of credit facility set forth therein is only a summary and is
qualified in its entirety by the full text of the loan and security agreement, the term note, the
revolving note, the guaranty, the stock pledge agreement and the intellectual property security
agreement, copies of which are attached hereto as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6
and which are incorporated herein by reference. A copy of our press release issued December&nbsp;4,
2008, announcing the loan and security agreement, is attached hereto as Exhibit&nbsp;99.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.02. Termination of a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">On December&nbsp;3, 2008, we used the proceeds from term loan under the loan and security agreement to
repay in full the amounts outstanding under that certain credit agreement dated as of July&nbsp;27,
2006, as amended to date, by and among us and United Tote Company, as borrowers, and Wells Fargo
Foothill, Inc., as lender. Upon the repayment of this credit agreement, the credit agreement was
terminated along with all related guarantees, liens and security interests.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;2.03. Creation of a Direct Financial Obligation.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The information regarding our entry into the loan and security agreement and our borrowings under
that agreement are set forth in the discussion under Item&nbsp;1.01 above and incorporated in this Item
by reference.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not applicable.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibits:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Loan and Security Agreement, dated as of December&nbsp;3, 2008, by and among
Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as borrowers, and
National City Bank, as lender.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Term Note A, dated as of December&nbsp;3, 2008, made by Youbet.com, Inc., United Tote
Company and Youbet Services Corporation in favor of National City Bank.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Revolving Note, dated as of December&nbsp;3, 2008, made by Youbet.com, Inc., United
Tote Company and Youbet Services Corporation in favor of National City Bank.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Guaranty, dated as of December&nbsp;3, 2008, made by UT Gaming, Inc. in favor of
National City Bank.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">10.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Stock Pledge Agreement, dated as of December&nbsp;3, 2008, between UT Gaming, Inc. and
National City Bank.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">10.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Intellectual Property Security Agreement, dated as of December&nbsp;3, 2008, by and
among Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as
borrowers, and National City Bank, as secured party.</TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="5%" nowrap align="left">99.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Press release dated as of December&nbsp;4, 2008.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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 thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>YOUBET.COM, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated: December 9, 2008&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ James A. Burk
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">James A. Burk&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan and Security Agreement, dated as of December&nbsp;3, 2008, by and among
Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as borrowers, and
National City Bank, as lender.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Term Note A, dated as of December&nbsp;3, 2008, made by Youbet.com, Inc., United Tote
Company and Youbet Services Corporation in favor of National City Bank.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Revolving Note, dated as of December&nbsp;3, 2008, made by Youbet.com, Inc., United
Tote Company and Youbet Services Corporation in favor of National City Bank.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Guaranty, dated as of December&nbsp;3, 2008, made by UT Gaming, Inc. in favor of
National City Bank.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Stock Pledge Agreement, dated as of December&nbsp;3, 2008, between UT Gaming, Inc. and
National City Bank.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intellectual Property Security Agreement, dated as of December&nbsp;3, 2008, by and
among Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as
borrowers, and National City Bank, as secured party.</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated as of December&nbsp;4, 2008.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
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</HTML>
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Filed by Bowne Pure Compliance
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): December 3, 2008
Youbet.com, Inc.
(Exact name of registrant as specified in its charter)
Delaware
0-26015
95-4627253
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
5901 De Soto Avenue
Woodland Hills, California
91367
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(818) 668-2100
(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:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
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 3, 2008, we and two of our subsidiaries, United Tote Company and Youbet Services
Corporation, entered into a loan and security agreement with National City Bank. The loan and
security agreement, National City Bank provides for a $10.0 million term loan, and a $5.0 million
revolving line of credit and letter of credit facility. In no event, however, may the aggregate
principal amount borrowed by us under the loan and security agreement exceed a borrowing base
determined by the amount of our available cash plus a percentage, differing in each case, of the
value of certain of our eligible accounts, inventory and equipment, subject to additional reserves
established by National City Bank at its discretion. In connection with closing the loan and
security agreement, we paid National City Bank a fee of $225,000.
Any indebtedness under the term loan and the revolving credit facility bears interest at a variable
rate equal to either, at our discretion, prime plus 200 to 250 basis points or LIBOR plus 325 to
375 basis points. The applicable basis point margin is determined by our leverage ratio as at the
most recently delivered calculation thereof pursuant to provisions of the loan and security
agreement. Any interest accruing on the basis of the prime rate is due and payable on the first
business day of each month. Any interest accruing on the basis of LIBOR is due and payable on the
date upon which such LIBOR loan ends as determined by us. LIBOR loans may have a one-, two- or
three-month term.
On December 3, 2008, we borrowed the full $10.0 million under the term loan. We used $4.6 million
to repay principal and interest repay in full amounts owed to Wells Fargo Foothill, Inc., as well
as fees and expenses associated therewith, and the remaining proceeds will be used for general
corporate purposes. We have not borrowed any amounts under the revolving and letter of credit
facility.
The outstanding principal amount under the term loan is due and payable on the last day of each
quarter beginning on December 31, 2008 in installments of $1.25 million. The term loan and the
revolving credit facility each mature on November 30, 2010. The loan and security agreement
provides for mandatory prepayment in the event of certain asset sales and recovery events;
provided, that, so long as an event of default has not occurred, a mandatory prepayment of the net
proceeds is not required, subject to certain thresholds or amounts as more fully described in the
loan and security agreement. Our indebtedness under the loan and security agreement is guaranteed
by UT Gaming, Inc., the direct parent of United Tote Company, and secured by substantially all of
our assets, including our intellectual property, and UT Gaming's equity in United Tote Company.
We are subject to customary covenants under the loan and security agreement, including restrictions
on our ability to incur indebtedness, make investments, pay dividends or engage in mergers and
acquisitions. The loan and security agreement also contains certain financial covenants, including
(i) a requirement to maintain a specified debt service coverage ratio, (ii) a requirement to
maintain a leverage ratio not to exceed 2:1, (iii) a requirement to maintain a certain specified
adjusted EBITDA and (iv) limitations on capital expenditures.
The foregoing description of the loan and security agreement and the term loan, the revolving
credit facility and the letter of credit facility set forth therein is only a summary and is
qualified in its entirety by the full text of the loan and security agreement, the term note, the
revolving note, the guaranty, the stock pledge agreement and the intellectual property security
agreement, copies of which are attached hereto as Exhibits 10.1, 10.2, 10.3, 10.4, 10.5 and 10.6
and which are incorporated herein by reference. A copy of our press release issued December 4,
2008, announcing the loan and security agreement, is attached hereto as Exhibit 99.1.
Item 1.02. Termination of a Material Definitive Agreement.
On December 3, 2008, we used the proceeds from term loan under the loan and security agreement to
repay in full the amounts outstanding under that certain credit agreement dated as of July 27,
2006, as amended to date, by and among us and United Tote Company, as borrowers, and Wells Fargo
Foothill, Inc., as lender. Upon the repayment of this credit agreement, the credit agreement was
terminated along with all related guarantees, liens and security interests.
Item 2.03. Creation of a Direct Financial Obligation.
The information regarding our entry into the loan and security agreement and our borrowings under
that agreement are set forth in the discussion under Item 1.01 above and incorporated in this Item
by reference.
Item 9.01. Financial Statements and Exhibits.
(a)
Not applicable.
(b)
Not applicable.
(c)
Not applicable.
(d)
Exhibits:
10.1
Loan and Security Agreement, dated as of December 3, 2008, by and among
Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as borrowers, and
National City Bank, as lender.
10.2
Term Note A, dated as of December 3, 2008, made by Youbet.com, Inc., United Tote
Company and Youbet Services Corporation in favor of National City Bank.
10.3
Revolving Note, dated as of December 3, 2008, made by Youbet.com, Inc., United
Tote Company and Youbet Services Corporation in favor of National City Bank.
10.4
Guaranty, dated as of December 3, 2008, made by UT Gaming, Inc. in favor of
National City Bank.
10.5
Stock Pledge Agreement, dated as of December 3, 2008, between UT Gaming, Inc. and
National City Bank.
10.6
Intellectual Property Security Agreement, dated as of December 3, 2008, by and
among Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as
borrowers, and National City Bank, as secured party.
99.1
Press release dated as of December 4, 2008.
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 thereunto duly authorized.
YOUBET.COM, INC.
Dated: December 9, 2008
By:
/s/ James A. Burk
James A. Burk
Chief Financial Officer
EXHIBIT INDEX
Exhibit
No.
Description
10.1
Loan and Security Agreement, dated as of December 3, 2008, by and among
Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as borrowers, and
National City Bank, as lender.
10.2
Term Note A, dated as of December 3, 2008, made by Youbet.com, Inc., United Tote
Company and Youbet Services Corporation in favor of National City Bank.
10.3
Revolving Note, dated as of December 3, 2008, made by Youbet.com, Inc., United
Tote Company and Youbet Services Corporation in favor of National City Bank.
10.4
Guaranty, dated as of December 3, 2008, made by UT Gaming, Inc. in favor of
National City Bank.
10.5
Stock Pledge Agreement, dated as of December 3, 2008, between UT Gaming, Inc. and
National City Bank.
10.6
Intellectual Property Security Agreement, dated as of December 3, 2008, by and
among Youbet.com, Inc., United Tote Company and Youbet Services Corporation, as
borrowers, and National City Bank, as secured party.
99.1
Press release dated as of December 4, 2008.