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| WGAT.OB > SEC Filings for WGAT.OB > Form 8-K on 24-Nov-2009 | All Recent SEC Filings |
24-Nov-2009
Entry into a Material Definitive Agreement, Creation of a Direct Fin
On November 18, 2009, Ojo Video Phones LLC ("Ojo Video"), a wholly owned subsidiary of WorldGate Communications, Inc., entered into a Master Manufacturing Agreement (the "Manufacturing Agreement") with Kenmec Mechanical Engineering Co., Ltd. ("Kenmec"), pursuant to which Kenmec will provide Ojo Video manufacturing services to produce a new line of digital video phones for the consumer market. WorldGate Communications, Inc. provided Kenmec with a guarantee of payment of Ojo Video's obligations under the Manufacturing Agreement. The Manufacturing Agreement has a term of 2 years, which shall be automatically extended for successive one year terms unless a party delivers written notice to the other party of its intention not to extend, not less than 120 days prior to the expiration of the then current term. Kenmec provided Ojo Video customary warranties regarding the products to be produced under the Manufacturing Agreement.
As more fully described in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on October 30, 2009, each of WorldGate Communications, Inc., WorldGate Service, Inc., WorldGate Finance, Inc., Ojo Service LLC and Ojo Video Phones LLC (collectively, the "WGAT Entities") entered into a Revolving Loan and Security Agreement (the "Revolving Loan") with WGI Investor LLC ("WGI") on October 28, 2009, pursuant to which WGI provided to the WGAT Entities, a line of credit in a principal amount of $3,000,000. On November 18, 2009, WorldGate Service, Inc. received $400,000 from WGI Investor, LLC pursuant to a notice of borrowing under the Revolving Loan.
On November 24, 2009, WorldGate Communications, Inc. issued a press release announcing the signing of the Manufacturing Agreement. The press release is furnished herewith as Exhibit 99.1.
(d) Exhibits.
99.1 Press Release, dated November 24, 2009.
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