On January 15, 2016, Intrepid Potash, Inc. entered into the following amendments: Amendment No. 3 to Credit Agreement with each of the lenders named therein and U.S. Bank National Association, as administrative agent. The credit facility amendment amends the credit agreement, dated as of August 3, 2011, and amended as of August 5, 2013, and August 28, 2015, by and among Intrepid, each of the lenders named therein, and U.S. Bank.

First Amendment to Note Purchase Agreement with each of the purchasers named therein. The NPA Amendment amends the Note Purchase Agreement, dated August 28, 2012, by and among Intrepid and each of the purchasers named therein. The Amendments modify the financial covenants under the Credit Facility and NPA as follows: Covenant requirements for maximum leverage ratio (calculated as the ratio of funded indebtedness to adjusted EBITDA for the prior four fiscal quarters) remain at 3.5 times; however, funded indebtedness is now calculated as total funded indebtedness minus cash and cash equivalent investments on hand up to a maximum of $75 million; Covenant requirements for minimum fixed charge coverage ratio (calculated as the ratio of adjusted EBITDA for the prior four fiscal quarters, minus maintenance capital expenditures and cash paid for income taxes, to interest expense plus scheduled principal amortization of long-term funded indebtedness) remain at 1.3 times; however, annual maintenance capital expenditures is now set at $20 million instead of the previous $40 million.

In addition, the NPA Amendment provides that the interest rate for the notes issued pursuant to the NPA will be increased by 0.25% during any time that the leverage ratio exceeds 2.25 to 1.00. The credit facility, as amended, continues to have a maturity date of August 28, 2020, and loan commitments by the lenders of $250 million, consisting of a revolving credit facility, a swing line sub-facility of up to $25 million, and a letter of credit sub-facility of up to $25 million. The company does not currently have any borrowings under the credit facility.

The NPA, as amended, continues to have $150 million aggregate principal amount of unsecured senior notes outstanding under it, consisting of the following series: $60 million of 3.23% Senior Notes, Series A, due April 16, 2020; $45 million of 4.13% Senior Notes, Series B, due April 14, 2023; $45 million of 4.28% Senior Notes, Series C, due April 16, 2025. The amendment to the senior notes also provides that the interest rate on each series will increase by 0.25% in any quarter in which the leverage ratio exceeds 2.25.