On January 5, 2017, OrthoPediatrics Corp. entered into a Fourth Amended and Restated Loan and Security Agreement among Squadron Capital LLC, a Delaware limited liability company, the company, and the other Borrowers, dated as of December 31, 2017, together with a Second Amended and Restated Term Note A and a Revolving Note of even date therewith. Under the terms of the Agreement and the Notes, the Lender has provided to Borrowers a term loan in the principal amount of $20.0 million and a revolving loan in an aggregate principal amount that will not exceed $15.0 million. Interest on the term loan and the revolving loan will accrue at the lesser of three month LIBOR plus 8.61% or 10.0% and will be payable monthly by the Borrowers. Payments of principal and all accrued but unpaid interest will be due and payable upon the earlier of January 31, 2023, or the occurrence of any transaction or series of transactions pursuant to which any person or entity in the aggregate acquire(s) capital stock of the Company possessing the voting power to elect a majority of the company's Board of Directors (whether by merger, consolidation, reorganization, combination, sale or transfer of the company's capital stock), or all or substantially all of the company's assets determined on a consolidated basis. The Lender's loans under the Agreement and the Notes are secured by a security interest in the company's and other Borrower's assets. The Agreement and the Notes provide for customary events of default. If an event of default is not cured within the time periods specified (if any), the Lender has the right to accelerate the company's payment of principal and interest in addition to other rights and remedies. The Agreement and the Notes, among other things, amend and restate the Third Amended and Restated Loan and Security Agreement among the Lender and Borrowers, dated April 26, 2017, the Amended and Restated Term Note A, dated April 26, 2017 and the Term Note B, dated as of April 26, 2017, by (a) consolidating the prior term note amounts into a $20.0 million term note and reestablishing a $15.0 million revolving loan, (b) changing the interest rate on the term note and the revolving loan to the Applicable Rate (compared to the previous rate of 10.0% for the term note and 11.0% for the revolving credit facility), and (c) extending the loan period through January 31, 2023, except as accelerated pursuant to the Agreement (compared to the previous maturity of May 31, 2019 or 2020 depending on revenue). The Lender holds greater than 5% of the common stock of the company and has designated four (4) directors to the company's Board of Directors pursuant to the Stockholders' Agreement, dated October 16, 2017, between the Lender and the company.