On February 7, 2008, we entered into a Loan Agreement with an insurance company (the “Mortgage Lender”) providing us with two term loans, one in the amount of $36,000 (“Tranche A”) and the other in the amount of $9,000 (“Tranche B”), for an aggregate amount of $45,000 (the “Mortgage Facility”). The Mortgage Facility is secured by mortgages on essentially all of our owned real property located in Elgin, Illinois and Gustine, California (the “Encumbered Properties”). On March 1, 2018 the interest rate on the Mortgage Facility was fixed at 4.25% per annum.

The terms of the Mortgage Facility contain covenants that require us to maintain a specified net worth of $110,000 and maintain the Encumbered Properties. The Mortgage Lender is entitled to require immediate repayment of our obligations under the Mortgage Facility in the event we default in the payments required under the Mortgage Facility,

non-compliance

with the covenants or upon the occurrence of certain other defaults by us under the Mortgage Facility. As of June 30, 2022, we were in compliance with all financial covenants under the Mortgage Facility. The carrying amount of assets pledged as collateral for the Mortgage Facility was approximately $59,375 at June 30, 2022.

In September 2006, we sold our Selma, Texas properties to two related party partnerships for $14,300 and are leasing them back. The selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value.

The lease for the Selma, Texas properties had an initial

ten-year

term at a fair market value rent with three five-year renewal options.

In September 2015, we signed a lease renewal which exercised two five-year renewal options and extended the term of our Selma lease to September 18, 2026. The lease extension also reduced the base monthly lease amount to

103

, beginning in September

2016

. At the end of each five-year renewal option, the base monthly lease amounts are reassessed, and the monthly payments increased to $

114

beginning in September

2021

. One five-year renewal option remains. Also, we currently have the option to purchase the properties from the lessor at

(100

% in certain circumstances) of the then fair market value, but not to be less than the $

14,300

purchase price. The financing obligation is being accounted for similar to the accounting for a capital lease, whereby the purchase price was recorded as a debt obligation, as the provisions of the arrangement are not eligible for sale-leaseback accounting. The balance of the debt obligation outstanding at June

2022

was $

8,388

Aggregate maturities of long-term debt are as follows:


Fiscal year ending
June 29, 2023	$	3,153
June 27, 2024		673
June 26, 2025		737
June 25, 2026		809
June 24, 2027		887
Thereafter		4,668

	$	10,927