Long-term debt of the Company as of January 1, 2012 and October 2, 2011 is summarized as follows:


	January 1,		October 2,
	2012		2011
	(unaudited)

Bank of America Revolver	$	10,772,647	$	10,772,647
	$	10,772,647	$	10,772,647

The Company executed a senior secured credit agreement with Bank of America on September 24, 2010. The facility is structured as a $30 million three-year senior secured revolving credit facility, secured by a first priority lien on substantially all the Company's assets. The Company made an initial loan drawdown of $13.2 million on September 24, 2010, which was used to pay off the Company's prior credit facility. Under the Bank of America facility the Company has the ability to increase the aggregate amount of the financing by $20 million under certain conditions.

The Bank of America facility bears annual interest at the British Bankers Association LIBOR Rate, or LIBOR, plus an applicable margin (listed below). The margin was initially 1.75%. Beginning on January 1, 2011, and adjusted quarterly thereafter, the margin is calculated as follows:


	Ratio of aggregate outstanding funded commitments under the facility (including letter of credit obligations) to EBITDA for the preceding four quarters		Applicable Margin
	Greater than or equal to 1.50:1		2.00%

	Greater than or equal to 0.50:1
	but less than 1.50:1		1.75%

	Less than 0.50:1		1.50%

As of January 1, 2012, there was $ 10.8 million outstanding under the Bank of America facility with an applicable interest rate of 2.3%. In addition, the Company pays an unused line fee equal to 0.25% per annum. For the first quarter of fiscal years 2012 and 2011, the Company incurred $ 69,000 and $ 64,000, respectively, in interest expense, excluding amortization of deferred financing costs. As of January 1, 2012, the Company had $ 19.2 million available to borrow under the Bank of America facility. Subsequent to the first quarter of fiscal year 2012, the Company reduced the outstanding balance of the facility by voluntary payments of $2.5 million.

The Bank of America facility contains covenants whereby, among other things, the Company is required to maintain compliance with agreed levels of fixed charge coverage and total leverage. The facility also contains customary restrictions on incurring indebtedness and liens, making investments and paying dividends. As of January 1, 2012, the Company was in compliance with the covenant requirements of the Bank of America facility.