Kewaunee Scientific Corporation entered into a Credit and Security Agreement with Mid Cap Funding IV Trust, as agent, and the lenders from time to time party thereto. The Credit Agreement provides for a secured revolving line of credit initially of up to $15.0 million. Availability under the Revolving Credit Facility is subject to a borrowing base calculated in accordance with the terms of the Credit Agreement and on the basis of eligible accounts and inventory and certain other reserves and adjustments.

Subject to the terms of the Credit Agreement, from time to time the Company may request that the maximum borrowing availability under the Revolving Credit Facility be increased in minimum amounts of $100,000, up to an overall borrowing availability limit of $30.0 million. The Agent and the Lenders must consent to any such increase in their sole discretion. The Revolving Credit Facility matures on December 19, 2025.

Except as set forth in the Credit Agreement, borrowings under the Revolving Credit Facility bear interest at a rate equal to Term SOFR (as defined in the Credit Agreement) plus 4.10%. The Company is required to make monthly interest payments on the Revolving Credit Facility, with the entire principal payment due at maturity. Pursuant to the Credit Agreement, the Company granted to the Agent, for itself and the Lenders, a first priority security interest in all existing and future acquired assets owned by the Company.

The Credit Agreement contains certain customary covenants that, subject to certain exceptions, limit the Company's ability to, among other things, (i) create, incur, assume or permit to exist any additional indebtedness or additional liens; (ii) enter into any amendment or other modification of certain agreements; (iii) consolidate or merge with or into another company or dispose of assets; (iv) pay cash dividends or repurchase shares of the Company's capital stock; (v) make certain investments; and (vi) enter into transactions with the Company's affiliates. The Credit Agreement also contains customary indemnification obligations and customary events of default, including, among other things, (i) non-payment, (ii) breach of representations or warranties, (iii) non-performance of covenants and obligations, (iv) default on other indebtedness, (v) certain judgments, (vi) bankruptcy and insolvency, (vii) impairment of security, (viii) termination of a pension plan, (ix) occurrence of certain regulatory events, and (x) occurrence of a material adverse effect. If the Credit Agreement is terminated prior to the maturity date, the Company must pay a prepayment fee equal to 3.0% of the terminated commitment amount for the first year following the closing date of the Credit Agreement, 2.0% of the terminated commitment amount for the second year following the closing date of the Credit Agreement and 1.0% of the terminated commitment amount for the third year following the closing date and thereafter.

The customary fees on the Revolving Credit Facility include an unused line fee based on the average unused portion of the Revolving Credit Facility, payable monthly in arrears.