On August 7, 2020 Pioneer Energy Services Corp. entered into the First Amendment to Credit Agreement (the “Amendment”) amending its senior secured asset-based revolving credit agreement dated as of May 29, 2020 (the “ABL Credit Agreement” and, as amended by the Amendment, the “Amended ABL Credit Agreement”) with the Company and the subsidiaries of the Company party thereto as borrowers (collectively, the “Borrowers”), the financial institutions party thereto as lenders, and PNC Bank, National Association as administrative agent. The maturity date of the Amended ABL Credit Agreement remains the earliest of (i) 90 days prior to the maturity of the Senior Secured Notes (as defined in the Amended ABL Credit Agreement), (ii) 90 days prior to the maturity of the Convertible Notes (as defined in the Amended ABL Credit Agreement) and (iii) May 29, 2025. However, the applicable margins to be used to calculate the premium to be charged by lenders over the “Base Rate” (as defined in the ABL Credit Agreement), or over LIBOR, were changed to 2.75% and 3.75% respectively. The Amendment reduced the Commitment (as defined in the Amended ABL Credit Agreement) from $75,000,000 to $40,000,000. The Amendment added a new financial covenant pursuant to which the Borrowers are required to maintain Excess Availability (as defined in the Amended ABL Credit Agreement) (plus Qualified Cash (as defined in the Amended ABL Credit Agreement) in an amount not to exceed $2,000,000) in an aggregate amount not less than $4,000,000. The Amendment also amended the financial covenant relating to the Fixed Charge Coverage Ratio (as defined in the ABL Credit Agreement) so as to (i) exclude from the calculation of the Fixed Charge Coverage Ratio any financial results occurring before July 1, 2020, (ii) trigger the Fixed Charge Coverage Ratio testing requirement whenever Excess Availability (plus Qualified Cash, if any, in an amount not to exceed $3,000,000), was less than or equal to 15% of the Maximum Revolver Amount (as defined in the Amended ABL Credit Agreement), and (iii) reset the level at which a Fixed Charge Coverage Ratio is no longer required to be tested. The guaranty and security agreement securing the obligations of the Borrowers under the Amended ABL Credit Agreement was amended to make conforming changes in connection with the Amendment. The Amendment also reduced maximum amount of Swing Line Loans (as defined in the Amended ABL Credit Agreement) to $4,000,000 in aggregate. On the First Amendment Effective Date, immediately after giving effect to the Amendment, there were no outstanding principal amounts for Loans under (and as defined in) the Amended ABL Credit Agreement and the aggregate amount of outstanding letters of credit under the Amended ABL Credit Agreement was approximately $8.8 million.