On December 30, 2022, Telos Corporation entered into a Credit Agreement, by and among the Company, as borrower, Xacta Corporation, ubIQuity.com, inc., Teloworks Inc., and Telos Identity Management Solutions, LLC, as guarantors (collectively, the Guarantors"), the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the Agent"). The Credit Agreement provides for a $30,000,000 senior secured revolving loan facility with a maturity date of December 30, 2025, with the option of issuing letters of credit thereunder and with an uncommitted expansion feature of up to $30,000,000 of additional revolver capacity (the Loan"). The Loan is subject to acceleration in the event of customary events of default.

The Company has not drawn any amounts under the Loan. The Company held $125,332,000 of cash and cash equivalents as of September 30, 2022. Borrowings under the Credit Agreement will accrue interest, at the Company's option, at one of three variable rates, plus a specified margin.

The Company can elect to borrow at (i) the Alternative Base Rate, plus 0.9%; (ii) Adjusted Daily Simple SOFR, plus 1.9%; and (iii) Adjusted Term SOFR, plus 1.9%, as such capitalized terms are defined and calculated in the Credit Agreement. The Company may elect interest periods of one, three and six months for borrowings at Adjusted Term SOFR. The Company may elect to convert borrowings from one type of borrowing to another type per the terms of the Credit Agreement.

After the occurrence and during the continuance of any event of default, the interest rate may increase by an additional 2.0%. The Company is obligated to pay accrued interest (i) with respect to amounts accruing interest based on the Alternative Base Rate, each calendar quarter and on the maturity date, (ii) with respect to amounts accruing interest based on Adjusted Daily Simple SOFR, on each one month anniversary of the borrowing and on the maturity date, and (iii) with respect to amounts accruing interest based on Adjusted Term SOFR, at the end of the period specified per the Credit Agreement and on the maturity date. Upon five, three, or one days' prior notice, as applicable, the Company may prepay any portion or the entire amount of the Loan.

The Company is also paying costs and customary fees, including a closing fee, commitment fees and letter of credit participation fee, if any, payable to the Agent and Lenders, as applicable, in connection with the Loan.