9. Debt:

Line of Credit

In April 2015, the Company’s Line of Credit with the PrivateBank and Trust Company and BMO Harris Bank N.A. was amended to, among other things:

Provide the consent of the lenders for the Tender Offer;

Increase the aggregate commitments from $35.0 million to $60.0 million to partially fund the Tender Offer;

Extend the termination date from February 28, 2018 to May 14, 2019;

Amend the tangible net worth covenant calculation to remove the effect of the Tender Offer and amend the leverage ratio to allow for an increase in the maximum of such ratio for a period of approximately two years from the effective date of the amendment;

Provide for a change in the applicable margin on the interest rate options based upon the leverage ratio;

Provide for additional LIBOR interest periods of six months and twelve months and remove the fixed rate interest options; and

Permit the Company to sell up to $30 million in term notes to Prudential Investment Management, Inc., its affiliates and managed accounts (“Prudential”) to partially fund the Tender Offer.

During the first nine months of 2015, the Line of Credit was used to finance in part the Tender Offer and has been and will continue to be used for general corporate purposes. The Line of Credit is secured by a lien against substantially all of the Company’s assets, contains customary financial conditions and covenants, and requires maintenance of minimum levels of debt service coverage and tangible net worth and maximum levels of leverage (all as defined within the Line of Credit). As of September 26, 2015, the Company was in compliance with all of its financial covenants. There were $46.2 million in borrowings outstanding under the line of credit bearing interest ranging from 2.46% to 3.25%, leaving $13.8 million available for additional borrowings.

Notes Payable

In May 2015, the Company entered into a $25.0 million Note Agreement (the “Note Agreement”) with Prudential. Proceeds from the Note Agreement of $25.0 million were used to fund in part the Tender Offer.

The final maturity of the notes is 10 years. Interest at a rate of 5.50% per annum on the outstanding principal balance is payable quarterly, along with required prepayments of the principal of $500,000 quarterly for the first five years, and $750,000 quarterly thereafter until the principal is paid in full. The notes may be prepaid, at the option of the Company, in whole or in part (in a minimum amount of $1.0 million), but prepayments require payment of a Yield Maintenance Amount, as defined in the Note Agreement.

The Company’s obligations under the Note Agreement are secured by a lien against substantially all of the Company’s assets (as the notes rank pari passu with the Line of Credit), and the Note Agreement contains customary financial conditions and covenants, and requires maintenance of minimum levels of fixed charge coverage and tangible net worth and maximum levels of leverage (all as defined within the Note Agreement). As of September 26, 2015, the Company was in compliance with all of its financial covenants.

In connection with the Note Agreement, the Company incurred $112,800 in debt issuance costs, of which unamortized amounts are presented as a direct deduction from the carrying amount of the related liability.