10.

Notes Payable and Bank Credit Facility

Our notes payable consist of the following:

	November 26, 2016
	Principal Balance			Unamortized Discount			Net Carrying Amount

Zenith acquisition note payable	$	6,000		$	(108	)	$	5,892
Transportation equipment notes payable		-			-			-
Real estate notes payable		1,219			-			1,219

Total debt		7,219			(108	)		7,111
Less current portion		(3,385	)		95			(3,290	)

Total long-term debt	$	3,834		$	(13	)	$	3,821

	November 28, 2015
	Principal Balance			Unamortized Discount			Net Carrying Amount

Zenith acquisition note payable	$	9,000		$	(312	)	$	8,688
Transportation equipment notes payable		2,152			-			2,152
Real estate notes payable		2,933			-			2,933

Total debt		14,085			(312	)		13,773
Less current portion		(5,477	)		204			(5,273	)

Total long-term debt	$	8,608		$	(108	)	$	8,500

The future maturities of our notes payable are as follows:

Fiscal 2017	$	3,385
Fiscal 2018		3,412
Fiscal 2019		422
	$	7,219

Zenith Acquisition Note Payable

As part of the consideration given for our acquisition of Zenith on

February

2015,

we issued an unsecured note payable to the former owner in the amount of

$9,000,

payable in

three

annual installments of

$3,000

due on each anniversary of the note, the

first

installment having been paid on

February

2016.

Interest is payable annually at the

one

year LIBOR rate, which was established at

0.62%

February

2015

and resets on each anniversary of the note, having reset to the current rate of

1.14%

February

2016.

The note was recorded at its fair value in connection with the acquisition resulting in a debt discount that is amortized to the principal amount through the recognition of non - cash interest expense over the term of the note. Interest expense resulting from the amortization of the discount was

$204

and

$252

for fiscal

2016

and

2015,

respectively. The current portion of the note due within

one

year, including unamortized discount, was

$2,904

and

$2,796

November

26,

2016

and

November

28,

2015,

respectively.

Transportation Equipment Notes Payable

Certain of the transportation equipment operated in our logistical services segment was financed by notes payable in the amount of

$2,152

November

28,

2015.

The current portion of these notes due within

one

year at

November

28,

2015

was

$901,

and the notes were secured by tractors, trailers and local delivery trucks with a total net book value of

$3,796

November

28,

2015.

Over the course of fiscal

2016,

all of the outstanding transportation equipment notes were paid in full.

Real Estate Notes Payable

Two of our retail real estate properties have been financed through commercial mortgages with interest rates of

6.73%.

These mortgages are collateralized by the respective properties with net book values totaling approximately

$5,858

and

$5,993

November

26,

2016

and

November

28,

2015,

respectively. The total balance outstanding under these mortgages was

$1,219

and

$1,709

November

26,

2016

and

November

28,

2015,

respectively. The current portion of these mortgages due within

one

year was

$385

and

$351

as of

November

26,

2016

and

November

28,

2015,

respectively.

Certain of the real estate located in Conover, NC and operated in our logistical services segment had been subject to a note payable in the amount of

$1,224

November

28,

2015,

all of which had been included in the current portion of notes payable. The note was secured by land and buildings with a total net book value of

$6,226

November

28,

2015.

The entire outstanding balance due under this note was paid in full during fiscal

2016.

Fair Value

We believe that the carrying amount of our notes payable approximates fair value at both

November

26,

2016

and

November

28,

2015.

In estimating the fair value, we utilize current market interest rates for similar instruments. The inputs into these fair value calculations reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level

as specified in the fair value hierarchy in ASC Topic

820,

Fair Value Measurements and Disclosures

. See Note

Bank Credit Facility

Effective

December

2015,

we entered into a new credit facility with our bank which provides for a line of credit of up to

$15,000.

This credit facility, which matures in

December

2018,

is unsecured and contains covenants requiring us to maintain certain key financial ratios. We are in compliance with all covenants under the agreement and expect to remain in compliance for the foreseeable future.

We have

$1,972

outstanding under standby letters of credit against our line, leaving availability under our credit line of

$13,028.

In addition, we have outstanding standby letters of credit with another bank totaling

$456.

Total interest paid during fiscal

2016,

2015

and

2014

was

$353,

277

and

$176,

respectively.