Summary of IDT CORP - Yahoo! Finance

Entry into a Material Definitive Agreement, Financial Statements and Exhibits

Item 1.01 Entry Into a Material Definitive Agreement

On June 30, 2009, IDT Energy, Inc. ("IDT Energy"), a subsidiary of IDT Corporation (the "Registrant"), entered into a Preferred Supplier Agreement (the "Agreement") with BP Energy Company and BP Corporation North America Inc. (collectively "BP"), as of June 29, 2009, pursuant to which BP will be IDT Energy's preferred provider of electricity and natural gas in New York state. The Agreement allows for purchases of electricity and natural gas for customers in areas where the utilities have purchase of receivable (POR) programs. IDT Energy will pay BP for the electricity and natural gas purchased at BP's cost plus a premium in accordance with the agreement. IDT Energy's obligations will be secured by its receivables from its customers and, under certain circumstances, the posting of letters of credit In addition to other advantages of the arrangement, IDT Energy will benefit from the removal of the requirement to post security with other suppliers. The term of the Agreement is two years, with an automatic renewal for an additional year unless either party objects. IDT Energy's ability to purchase electricity and natural gas under the Agreement is subject to satisfaction of certain conditions, including the opening of certain collateral accounts, the posting of a $1.25 million letter of credit by IDT Energy, and notifications to applicable utilities and the maintenance of certain covenants.

A copy of the press release issued by the Registrant concerning the foregoing is furnished herewith as Exhibit 99.1.

This report on Form 8-K, contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements are expressed differently. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this Current Report on Form 8-K, whether as a result of new information, future events or otherwise.