On December 28, 2023, VSE Corporation (the Company) and a majority of its wholly owned subsidiaries, as borrowers, entered into that certain Sixth Amendment (the ?Amendment?) to the Fourth Amended and Restated Business Loan and Security Agreement, dated as of January 5, 2018 (as amended, restated or otherwise modified to date, the ?Credit Agreement?) with Citizens Bank, N.A. and certain other banks and financial institutions from time to time party thereto (the ?Lenders?) as lenders, and Citizens Bank, N.A., as administrative agent (as successor by merger to Citizens Bank of Pennsylvania) (in such capacity, the ?Administrative Agent?). The Amendment is intended to enhance the Company?s financial flexibility and enable continued investment in organic growth initiatives and strategic investments within its Aviation segment. In particular, the Amendment provides for the following: (i) an increase in the aggregate principal amount of the term loan (?Term loan?) from $177.5 million to $300.0 million and an extension of the maturity date of the Company?s Term Loan by one year to October 7, 2026; (ii) a modification to the amortization payments on the Term Loan from $5.0 million quarterly to $7.5 million quarterly, commencing with the first quarterly amortization payment due on April 1, 2024; and (iii) an extension of the maturity date of the Company?s revolving credit facility (the ?Revolving Facility?) by one year to October 7, 2026.

As a result of the Amendment, the capacity under the Revolving Facility will remain unchanged and the Company will have increased availability under the Revolving Facility by approximately $122 million. From time to time, certain of the parties under the Credit Agreement and/or their affiliates provide financial services to the Company.