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Quotes & Info
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| WYY > SEC Filings for WYY > Form 8-K on 28-Dec-2012 | All Recent SEC Filings |
28-Dec-2012
Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligat
The information set forth under Item 2.03, "Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant," is incorporated herein by reference.
On December 21, 2012, WidePoint Corporation and its subsidiaries (the "Company") entered into a First Modification to Debt Agreement (the "Modification") and a First Allonge to Promissory Note (Commercial - Revolving Draw) (the "Allonge," and, together with the Modification, the "Agreements") with Cardinal Bank. The Agreements set forth the agreement of the parties to amend the Commercial Loan Agreement with Cardinal Bank (and promissory note accompanying such agreement), which Commercial Loan Agreement provides for a $8,000,000 revolving credit facility from Cardinal Bank to the Company.
The Agreements (i) extend the repayment date of the revolving credit facility from June 30, 2013 to June 30, 2014; (ii) modify a covenant in the Commercial Loan Agreement by providing that the Company shall maintain a target net worth of $4 million as of December 31, 2012 and a target net worth of $4.5 million as of December 31, 2013 (representing a reduction from the prior-existing $5.5 million target); and (iii) eliminate the Funded Debt to EBITDA covenant.
The description of the Agreements set forth above is qualified by reference to the Modification filed herewith as Exhibit 10.1 and Allonge filed herewith as Exhibit 10.2, which Exhibits are incorporated herein by reference.
(d) Exhibits
10.1 First Modification to Debt Agreement between WidePoint Corporation
and its subsidiaries and Cardinal Bank.
10.2 First Allonge to Promissory Note (Commercial - Revolving Draw)
between WidePoint Corporation and its subsidiaries and Cardinal
Bank.
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