On December 31, 2013, RingCentral, Inc. refinanced certain of its outstanding debt, to lower the interest rate on such debt. In connection with this refinancing, on December 31, 2013, the company entered into a Second Amendment to Second Amended and Restated Loan and Security Agreement by and among the Company, RCLEC, Inc. and Silicon Valley Bank, as lender. The Second Amendment amends the terms of the Company's existing Second Amended and Restated Loan and Security Agreement, dated as of August 14, 2013 by and among the Borrowers and Lender, as amended and provides for an additional term loan in the principal amount of up to $15,000,000, all of which the Company borrowed from Lender on December 31, 2013.

The proceeds of the new term loan were used to repay all of the outstanding term loans under the Existing Loan Facility and all of the outstanding term loans under the Plain English Growth Capital Loan and Security Agreement, dated as of June 22, 2012 by and between the Company and TriplePoint Capital LLC, as amended. The Existing Loan Facility provides for a revolving line of credit of up to $15,000,000. As of December 31, 2013, the outstanding balance under the revolving line of credit is $10,777,778.

The Second Amendment amends the interest rate of this revolving line of credit to an annual rate of, at Borrowers' option, (i) prime rate as reported in The Wall Street Journal plus a margin of 0.25% or 0.50% or (ii) adjusted LIBOR rate (based on one, two, three or six-month interest periods) plus a margin of 3.25% or 3.50%, in each case such margin being determined based on the average cash balances maintained with Lender or Lender's affiliates for the preceding month. The Second Amendment also amends the financial covenants in the Existing Loan Facility to require (i) minimum cash balances representing the greater of $10,000,000 or three times the company's quarterly cash burn rate, as defined in the Existing Loan Facility and (ii) minimum EBITDA covenant, as determined in accordance with the Second Amendment.