On December 31, 2018, Axon Enterprise, Inc. entered into an amended and restated credit agreement with JPMorgan Chase Bank, N.A. The credit agreement increases the company's unsecured revolving line of credit from $10.0 million to $50.0 million, $10 million of which will be available for letters of credit. The credit agreement matures on December 31, 2021 and has an accordion feature which allows for an increase in the total line of credit up to $100 million, subject to certain conditions, including the availability of additional bank commitments. Advances under the line of credit bear interest at LIBOR plus 1.0 to 1.5% per year determined in accordance with a pricing grid based on the company's funded debt to earnings before interest, taxes, depreciation and amortization ratio, as defined in the Credit Agreement. The Credit Agreement contains affirmative and negative covenants that are customary for credit agreements of this nature. The negative covenants include, among other things, limitations on asset sales, mergers, indebtedness, liens, dividends, investments and transactions with affiliates. In addition, the Credit Agreement requires the Company to comply with a maximum Leverage Ratio of no greater than 2.50 to 1.00 based upon a trailing four fiscal quarter period.