Powerfleet Israel Ltd. and Pointer Telocation Ltd. entered into a third amendment to the Credit Agreement, dated as of August 19, 2019, by and among the Borrowers and Bank Hapoalim B.M. The Amendment provides for, among other things, a new revolving credit facility to Pointer in the aggregate principal amount of $10 million (the “New Revolver”). The New Revolver will be available for a period of one month, commencing on October 31, 2022, and will continue to be available for successive one-month periods until and including October 30, 2023, unless the Borrowers deliver a notice to Hapoalim of their request not to renew the New Revolver.   Borrowings under the New Revolver will initially bear interest at the Secured Overnight Financing Rate plus 2.59%.

Such interest is subject to monthly changes by Hapoalim, provided that Hapoalim gives Pointer 14 days' advance notice regarding such change prior to the end of the applicable calendar month.   The New Revolver will be secured by a first ranking fixed pledge and assignment by Pointer over its new bank account, which was opened in connection with the New Revolver, and all of the rights relating thereunder as well as a cross guarantee by Powerfleet Israel. No assets of the Company will serve as collateral under the New Revolver.

  Pointer is required to pay a credit allocation fee equal to 0.5% per annum on undrawn and uncancelled amounts of the New Revolver. The Borrowers have also paid certain customary upfront fees and other fees and expenses to Hapoalim in connection with the Amendment.   The proceeds of the New Revolver may be used by Pointer for general corporate purposes, including working capital.