<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        C:\Documents and Settings\tjohnson\My Documents\LOC 8K\form8k-loc101204.eep -->
     <!-- Control Number: 03                                                               -->
     <!-- Rev Number:                                                                      -->
     <!-- Client Name:                                                                     -->
     <!-- Project Name:   8K-LOC                                                           -->
     <!-- Firm Name:      Cotelligent                                                      -->
     <TITLE>Form 8K-LINE OF CREDIT</TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<A NAME=A001></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>UNITED STATES<BR>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B> </FONT> </P>

<HR WIDTH="25%" SIZE="3">
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<A NAME=A004></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>FORM 8-K</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<A NAME=A005></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="3"><B>CURRENT REPORT<BR>Pursuant to Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B> </FONT> </P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date of report (Date of earliest event reported): October 8, 2004 </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<A NAME=A008></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cotelligent, Inc. </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=center WIDTH=100% SIZE=1 NOSHADE>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<A NAME=A009></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact Name of
Registrant as Specified in its Charter) </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Delaware</FONT></TD>
     <TD WIDTH=17% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0-27412</FONT></TD>
     <TD WIDTH=42% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>94-3173918</FONT></TD></TR>
</TABLE>
<HR WIDTH="100%" SIZE="2">
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(State or other jurisdiction of</FONT></TD>
     <TD WIDTH=17% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Commission</FONT></TD>
     <TD WIDTH=42% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(I.R.S. Employer Identification No.)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>incorporation</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>File Number)</FONT></TD></TR>




</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR>655 Montgomery Street, Suite 1000</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>San Francisco, California</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>94111</FONT></TD></TR>
</TABLE>
<HR WIDTH="100%" SIZE="2">
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of Principal Executive Offices)</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Zip Code)</FONT></TD></TR>
</TABLE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Registrant's telephone number, including area code: 415.477.9900 </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Project" -->
<HR SIZE="1" ALIGN="CENTER">
<A NAME=A010></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Former Name or Former Address, if Changed Since Last Report) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 (<I>see </I>General
Instruction A.2. below): </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT FACE="WingDings" SIZE="2">&#111; </FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT FACE="WingDings" SIZE="2">&#111; </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2">Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT FACE="WingDings" SIZE="2">&#111; </FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT FACE="WingDings" SIZE="2">&#111; </FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) </FONT> </P>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 7; page: 7" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>






<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item&nbsp;&nbsp;&nbsp;1.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Entry into a Material Definitive Agreement.</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
disclosure set forth under Item 2.03 of this Current Report on Form 8-K is incorporated by
reference herein. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item&nbsp;&nbsp;&nbsp; 2.03.&nbsp;&nbsp;&nbsp;&nbsp; <U>Creation of a Direct Financial Obligation or an Obligation under an Off-Balance
Sheet Arrangement of a Registrant.</U> </FONT>
</P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 8, 2004, Cotelligent Inc. (&#147;Cotelligent&#148; or &#147;the Company&#148;)
entered into a Contract of Sale Security Agreement, (as amended, the
&#147;Agreement&#148;) with CAPCO Financial Company, a division of Greater Bay Bank N.A.
(the &#147;Lender&#148;), which established a line of credit for the Company. Under the
Agreement, the Company has agreed to sell to the Lender all of its accounts receivable
existing as of the date of the Agreement or thereafter created during the term of the
Agreement at a discount below face value. The Lender has reserved the sum of $1,000,000
for the purchase of the Company&#146;s accounts receivable and these funds are available
daily at the Company&#146;s option, subject to the restriction that the maximum amount
available to the Company may not exceed 70% of the accounts receivable that meet the
Lender&#146;s eligibility requirements. Funds advanced by the Lender to the Company under
the Agreement are subject to a daily fee equal to the Lender&#146;s prime rate plus 4%.
The Company has granted the Lender a first priority security interest in all accounts,
contract rights, chattel paper, documents, instruments and related general intangibles now
owned or hereafter acquired and the proceeds thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Agreement has an initial term of 12 calendar months. The Agreement includes customary
covenants regarding events of default. Upon an event of default, the Lender may, among
other things, declare any amounts outstanding under the Agreement immediately due and
payable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing description of the Agreement is qualified in its entirety by reference to the
Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein
by reference. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Item 9.01</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Exhibits</U> </FONT></TD>
     <TD WIDTH="80%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR><BR></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(c)&nbsp;&nbsp;&nbsp; <U>Exhibits.</U> </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;<BR><BR></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibit No.</U> </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Description</U><BR><BR> </FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Contract of Sale Security Agreement, dated as of<BR>
October 8, 2004, between Cotelligent, Inc. and its<BR>
subsidiaries, and CAPCO Financial Company,<BR>
a division of Greater Bay Bank N.A., as amended.</FONT></TD></TR>
</TABLE>





<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 8; page: 8" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<A NAME=A012></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Signature</U> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </FONT></P>



<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
    <TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">COTELLIGENT, INC.<BR><BR></FONT></TD></TR>
</TABLE>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">

<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By: </FONT> </TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;<U>/s/ Curtis J. Parker</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;Curtis J. Parker<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President, Chief Financial
Officer, Treasurer &amp; Secretary </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<A NAME=A013></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: October 14, 2004 </FONT></P>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 9; page: 9" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>




<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<A NAME=A014></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>EXHIBIT INDEX</U> </FONT> </P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Exhibit No.</U> </FONT></TH>
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>Description</U> </FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.1</FONT></TD>
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Contract of Sale Security Agreement, dated as of<BR>
October 8, 2004, between Cotelligent, Inc. and its<BR>
subsidiaries, and CAPCO Financial Company, a<BR>
division of Greater Bay Bank N.A., as amended.</FONT></TD></TR>
</TABLE>





</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "form_8k-loc.htm", "secsgml_size_bytes": 14009}]
{"company-data": {"conformed-name": "COTELLIGENT INC", "cik": "0001004963", "assigned-sic": "7373", "irs-number": "943173918", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27412", "film-number": "041079042"}, "business-address": {"street1": "100 THEORY SUITE 200", "city": "IRVINE", "state": "CA", "zip": "92336", "phone": "949-823-1600"}, "mail-address": {"street1": "100 THEORY SUITE 200", "city": "IRVINE", "state": "CA", "zip": "92336"}, "former-company": {"former-conformed-name": "COTELLIGENT GROUP INC", "date-changed": "19951214"}}
Form 8K-LINE OF CREDIT
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): October 8, 2004
Cotelligent, Inc.
(Exact Name of
Registrant as Specified in its Charter)
Delaware
0-27412
94-3173918
(State or other jurisdiction of
(Commission
(I.R.S. Employer Identification No.)
incorporation
File Number)
655 Montgomery Street, Suite 1000
San Francisco, California
94111
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code: 415.477.9900
(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):
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.
The
disclosure set forth under Item 2.03 of this Current Report on Form 8-K is incorporated by
reference herein.
Item    2.03.
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance
Sheet Arrangement of a Registrant.
On
October 8, 2004, Cotelligent Inc. ("Cotelligent" or "the Company")
entered into a Contract of Sale Security Agreement, (as amended, the
"Agreement") with CAPCO Financial Company, a division of Greater Bay Bank N.A.
(the "Lender"), which established a line of credit for the Company. Under the
Agreement, the Company has agreed to sell to the Lender all of its accounts receivable
existing as of the date of the Agreement or thereafter created during the term of the
Agreement at a discount below face value. The Lender has reserved the sum of $1,000,000
for the purchase of the Company's accounts receivable and these funds are available
daily at the Company's option, subject to the restriction that the maximum amount
available to the Company may not exceed 70% of the accounts receivable that meet the
Lender's eligibility requirements. Funds advanced by the Lender to the Company under
the Agreement are subject to a daily fee equal to the Lender's prime rate plus 4%.
The Company has granted the Lender a first priority security interest in all accounts,
contract rights, chattel paper, documents, instruments and related general intangibles now
owned or hereafter acquired and the proceeds thereof.
The
Agreement has an initial term of 12 calendar months. The Agreement includes customary
covenants regarding events of default. Upon an event of default, the Lender may, among
other things, declare any amounts outstanding under the Agreement immediately due and
payable.
The
foregoing description of the Agreement is qualified in its entirety by reference to the
Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated herein
by reference.
Item 9.01
Exhibits
(c)
Exhibits.
Exhibit No.
Description
10.1
Contract of Sale Security Agreement, dated as of
October 8, 2004, between Cotelligent, Inc. and its
subsidiaries, and CAPCO Financial Company,
a division of Greater Bay Bank N.A., as amended.
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.
COTELLIGENT, INC.
By:
/s/ Curtis J. Parker
Curtis J. Parker
Executive Vice President, Chief Financial
Officer, Treasurer & Secretary
Dated: October 14, 2004
EXHIBIT INDEX
Exhibit No.
Description
10.1
Contract of Sale Security Agreement, dated as of
October 8, 2004, between Cotelligent, Inc. and its
subsidiaries, and CAPCO Financial Company, a
division of Greater Bay Bank N.A., as amended.