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Line Of Credit Renewal
9 Months Ended
Jun. 01, 2013
Line Of Credit Renewal [Abstract]  
Line Of Credit Renewal

NOTE 5 – LINE OF CREDIT RENEWAL

 

On March 25, 2013, we entered into the Third Modification Agreement (the Third Modification Agreement) to our previously existing amended and restated secured credit agreement (the Restated Credit Agreement) with our existing lender.  The primary purposes of the Third Modification Agreement are to extend the maturity date of the Restated Credit Agreement from March 31, 2015 to March 31, 2016 and to increase the caps for permitted business acquisitions.  The Third Modification Agreement continues to provide a revolving line of credit facility with a maximum borrowing amount of $10.0 million with interest at LIBOR plus 2.50 percent per year.  The revolving credit facility may be used for general business purposes.

 

The other terms, conditions, and financial covenants in the Third Modification Agreement are substantially the same as those defined in the Restated Credit Agreement as amended and modified.  In the event of noncompliance with the financial covenants and other defined events of default, the lender is entitled to certain remedies, including acceleration of the repayment of amounts outstanding on our note payable to the bank and the line of credit facility.  We believe that we were in compliance with the terms and covenants of the Third Modification Agreement at June 1, 2013.