On January 23, 2018, Xperi Corporation entered into Amendment No. 1 to Credit Agreement among the company, the subsidiaries of the company party thereto, Royal Bank of Canada as Administrative Agent and the lenders party thereto, pursuant to which the Credit Agreement, dated as of December 1, 2016, among the company, the lenders from time to time party thereto and the Administrative Agent was amended and in connection with the Amendment, made a voluntary prepayment of term loans outstanding under the Credit Agreement in an aggregate principal amount of $100,000,000 with cash on hand. The Amendment provides for, among other things, a replacement of outstanding initial term loans with new tranche term B-1 loans in a principal amount of $494,000,000, a reduction of the interest rate margin applicable to such loans to (x) in the case of Eurodollar loans, 2.50% per annum and (y) in the case of base rate loans, 1.50% per annum, a prepayment premium of 1.00% in connection with any repricing transaction with respect to the Refinanced Term B Loans within six months of the closing date of the Amendment, and certain amendments to provide the company with additional flexibility under the covenant governing restricted payments.