7. NOTES PAYABLE AND AMENDED CREDIT AGREEMENT

Amounts outstanding under the Amended Credit Agreement and notes payable as of March 31, 2017 and December 31, 2016 consisted of the following (in thousands):

	March 31, 2017			December 31, 2016
Credit Agreement average effective interest rate of 2.6% inclusive of unused fee	$	58,000		$	46,000
Various notes payable with $1,219 plus accrued interest due in the next year interest accrues in the range of 3.25% through 3.75% per annum		6,021			5,823
		64,021			51,823
Less current portion		(1,219	)		(1,227	)
Long term portion	$	62,802		$	50,596

Effective December 5, 2013, we entered into an Amended Credit Agreement, as defined below, with a commitment for a $125.0 million revolving credit facility with a maturity date of November 30, 2018. This agreement was amended in August 2015, January 2016 and March 2017 (hereafter referred to as “Amended Credit Agreement”). The Amended Credit Agreement is unsecured and has loan covenants, including requirements that the Company comply with a consolidated fixed charge coverage ratio and consolidated leverage ratio. Proceeds from the Amended Credit Agreement may be used for working capital, acquisitions, purchases of the Company’s common stock, dividend payments to the Company’s common shareholders, capital expenditures and other corporate purposes. The pricing grid is based on the Company’s consolidated leverage ratio with the applicable spread over LIBOR ranging from 1.5% to 2.5% or the applicable spread over the Base Rate ranging from 0.1% to 1%. Fees under the Amended Credit Agreement include an unused commitment fee ranging from 0.1% to 0.25% depending on the Company’s consolidated leverage ratio and the amount of funds outstanding under the Amended Credit Agreement.

The January 2016 amendment to the Amended Credit Agreement increased the cash and noncash consideration that the Company could pay with respect to acquisitions permitted under the Amended Credit Agreement to $50,000,000 for any fiscal year, and increased the amount the Company may pay in cash dividends to its shareholders in an aggregate amount not to exceed $10,000,000 in any fiscal year. Further, the March 2017 amendment, among other items, increased the amount the Company may pay in cash dividends to its shareholders in an aggregate amount not to exceed $15,000,000 in any fiscal year.

On March 31, 2017, $58.0 million was outstanding on the Amended Credit Agreement resulting in $67.0 million of availability. As of March 31, 2017 and the date of this report, the Company was in compliance with all of the covenants thereunder.

The Company generally enters into various notes payable as a means of financing a portion of its acquisitions and purchases of non-controlling interests. In conjunction with the acquisitions in the first quarter of 2017, the Company entered into notes payable in the aggregate amount of $0.9 million, of which a principal payment of $250,000 is due in 2018 and an aggregate principal payment of $650,000 is due in 2019. Interest accrues at the rate of 3.75% per annum and is payable with each principal installment. In conjunction with the acquisitions in 2016 and the purchases of a non-controlling interests, the Company entered into notes payable in the aggregate amount of $1.0 million of which an aggregate principal payment of $444,000 was paid in 2017 and $570,000 payable in 2018. Interest accrues 3.5% per annum and is payable with each principal installment. In conjunction with the acquisitions in 2015 and the purchases of a non-controlling interest, the Company entered into notes payable in the aggregate amount of $4.9 million, of which an aggregate principal payment of $575,000 was due in 2016 (which was paid prior to September 30, 2016), $525,000 in 2017 (of which $250,000 was paid in the first quarter of 2017), $1.9 million in 2018 and $1.9 million in 2019. Interest accrues in the range of 3.25% to 3.75% per annum and is payable with each principal installment.

Aggregate annual payments of principal required pursuant to the Amended Credit Agreement and the above notes payable subsequent to March 31, 2017 are as follows (in thousands):

During the twelve months ended March 31, 2018	$	1,219
During the twelve months ended March 31, 2019		60,956
During the twelve months ended March 31, 2020		1,846
	$	64,021