On October 20, 2023, Ooma, Inc. entered into a credit agreement (the Credit Agreement) with Citizens Bank, N.A., as Administrative Agent (the Agent), lender, sole lead arranger and sole book runner. The Credit Agreement provides for an initial $30 million revolving credit facility (the Revolving Facility), which includes a sub-facility for letters of credit. The limit for the letter for credit sub-facility is equal to the lesser of (a) $10 million and (b) the aggregate amount of revolving commitments.

To secure its obligations with respect to letters of credit, the Company may be required to provide collateral in the form of cash to the letter of credit issuer. The Company has initially borrowed $18,075,000 million under the Revolving Facility to partially fund the purchase price under the Merger Agreement and to pay fees and expenses in connection with its entry into the Revolving Facility. Borrowings under the Revolving Facility may consist of ABR Loans and SOFR Loans.

ABR Loans under the Credit Agreement will bear interest at a rate equal to the ?Alternate Base Rate? (as defined in the Credit Agreement), plus the Applicable Margin. The Alternate Base Rate for any date is the highest of (i) the Agent?s prime rate on such date, (ii) the federal funds effective rate on such date plus 0.50% per annum, and (iii) the Term SOFR in effect on such date for a one-month Interest Period (which shall not be less than 0.00%) plus 1% per annum.

SOFR Loans will bear interest at a rate equal to ?Term SOFR? (as defined in the Credit Agreement), which shall not be less than 0.00%, plus the Applicable Margin (as defined in the Credit Agreement). Upon the occurrence of an event of default, the interest rate on loans may be increased by 5.00%.

With respect to any letter of credit borrowing or any interest, fee or other amount payable under the loan documents which shall not have been paid when due, the default rate equals the sum of (i) the Alternate Base Rate plus (ii) the Applicable Margin applicable to ABR revolving borrowings, plus (iii) 5.00% per annum. The commitments under Revolving Facility will terminate on October 19, 2026, unless terminated earlier, either at the request of the Company or, if an event of default occurs, at the request of the Required Lenders. Any incremental term loan will mature on the maturity date of such term loan, as set forth in the applicable incremental assumption agreement.