Industrial Services of America, Inc. and certain of its wholly-owned subsidiaries entered into a Loan and Security Agreement with Bank of America, N.A. that provides for (i) a revolving line of credit in the aggregate principal amount of $10 million, which includes a $1.0 million letter of credit subline, and (ii) a term loan in the amount of $2.5 million. The interest rate on the Revolving Loan is equal to LIBOR plus 2.25% to 2.75%. The interest rate on the Term Loan is equal to LIBOR plus 2.75% to 3.25%. During a continuance of an Event of Default, the interest rate will increase by 2.0%. Proceeds from the BofA Loan Agreement will be used to satisfy the company’s existing credit facility with Midcap Business Credit, LLC. In addition, proceeds from the Revolving Loan may be used to pay fees and transaction expenses associated with the Loans, to pay the Borrowers’ obligations to BofA, and for other lawful corporate purposes of the Borrowers, including working capital. The Revolving Loan is due and payable in full on the Commitment Termination Date, and the Borrowers may prepay the Revolving Loan without premium or penalty. The Term Loan will be repaid by consecutive installments of $89,286 on the first day of each quarter, commencing on January 1, 2019. On the Commitment Termination Date, all principal, interest, and other amounts with respect to the Term Loan will be due and payable in full. The company agreed to pay BofA certain fees in connection with the BofA Loan Agreement, including, without limitation: (i) unused credit line fees, due on the first day of each month and on the Commitment Termination Date, (ii) letter of credit facility fees, payable in monthly arrears on the first day of each month, (iii) a closing fee in the amount of $50,000, due on the Closing Date, and (iv) an administrative fee of $10,000 on the Closing Date and on each anniversary date thereof. In addition, the Company agreed to pay all reasonable fees, costs, and expenses, incurred by BofA in the enforcement of the BofA Loan Agreement and related documents during the continuance of an Event of Default and all legal, accounting, appraisal, consulting, and other fees incurred by BofA in connection with the Loans. Borrowings under the BofA Loan Agreement are secured by all property of each Borrower. The company’s obligations are also secured by mortgages upon real estate owned by certain wholly-owned subsidiaries of the company. On the Closing Date, BofA advanced the Borrowers $4,108,924 under the Revolving Loan and $2.5 million under the Term Loan. The BofA Loan Agreement requires the Borrowers to comply with certain customary affirmative and negative covenants that, among other things, will restrict, subject to certain exceptions, the ability of the Borrowers to incur indebtedness, grant liens, make investments, engage in acquisitions, mergers or consolidations, and pay dividends and other restricted payments. The BofA Loan Agreement also requires that the Borrowers maintain a certain fixed charge coverage ratio, calculated as of the last day of each month for the trailing twelve month period then ended.