On May 14, 2021 Duluth Holdings Inc. entered into a new Credit Agreement among the Company, the Lenders party thereto Bank of America, N.A., as Administrative Agent Swingline Lender and L/C Issuer, BofA Securities Inc., as a Joint Lead Arranger and Sole Bookrunner, and Keybanc Capital Markets Inc., as a Joint Lead Arranger. The Credit Agreement provides for borrowings of up to $150 million in aggregate principal amount that are available under a revolving senior credit facility with a $5 million sublimit for the issuance of standby letters of credit, as well as a $10 million sublimit for swing line loans. At the Company’s option, the interest rate applicable to the Revolver will be a floating rate equal to: (i) the Bloomberg Short-Term Bank Yield Index rate plus the applicable rate of 1.25% to 2.00% determined based on the Company’s rent adjusted leverage ratio, or (ii) the base rate plus the applicable rate of 0.25% to 1.00% based on the Company’s rent adjusted leverage ratio. The proceeds of the Revolver will be used to refinance existing indebtedness, finance working capital and capital expenditures, and for other general corporate purposes. The Company is also permitted to voluntarily prepay the Credit Agreement in whole or in part at any time, where borrowings bearing interest based on the base rate may be prepaid at any time without penalty and borrowings bearing interest based on BSBY may be prepaid, subject to payment of usual and customary breakage and redeployment costs. The Revolver will mature on May 14, 2026. The Credit Agreement also contains an accordion feature under which the Company may request incremental loans in aggregate amount of up to $50 million after the Closing Date and prior to the Maturity Date and with the consent of the Agent, and after meeting certain conditions. The extension of incremental loans is subject to the Lenders’ discretion and may either be one or more tranches of term A loans or increases in the aggregate revolving loan commitments. The Credit Agreement contains customary events of default and financial, affirmative and negative covenants, including but not limited to quarterly financial covenants commencing the fiscal quarter ending May 2, 2021, relating to the Company’s rent adjusted leverage ratio and fixed charge coverage ratio.