On January 13, 2014, Autobytel inc. entered into a second amendment to loan agreement with Union bank, N.A., amending the company's existing loan agreement with union bank initially entered into on February 26, 2013, and amended on September 10, 2013. The credit facility amendment provides for a new $9.0 million term loan; and amendments to the company's existing $8.0 million working capital revolving line of credit. The term loan is amortized over a period of four years, with fixed quarterly principal payments of $562,500.

Borrowings under the term loan or under the revolving loan will bear interest at either, the bank's reference rate minus 0.50% or the London interbank offering rate plus 2.50%, at the option of the company. Interest under both the term loan and the revolving loan adjust; at the end of each LIBOR rate period selected by the company, if the LIBOR rate is selected; or with changes in union bank's reference rate, if the reference rate is selected. The company also pays a commitment fee of 0.10% per year on the unused portion of the revolving loan payable quarterly in arrears.

Borrowings under the term loan and the revolving loan are secured by a first priority security interest on all of the company's personal property and proceeds thereof. The term loan matures December 31, 2017, and the maturity date of the revolving loan was extended from February 28, 2015 to march 31, 2017. Borrowings under the revolving loan may be used as a source to finance capital expenditures, acquisitions and stock buybacks and for other general corporate purposes.

The company drew down the entire $9.0 million of the term loan, together with $1.0 million under the revolving loan, in financing this acquisition. As of January 13, 2014, there was $5,250,000 in borrowings outstanding under the revolving loan after giving effect to the foregoing $1.0 million draw down.