6. LONG-TERM DEBT

On October 22, 2008, the Company obtained a $3 million term loan from Sovereign Bank to be amortized over five years (the “Sovereign Term Facility”). Prior to entering into the term loan the Company had borrowed $2.5 million under the Sovereign Revolving Facility to fund the initial tooling costs related to a long-term contract. The Company used the proceeds from the Sovereign Term Facility to repay the borrowings under the Sovereign Revolving Facility and to pay for additional tooling related to a long-term contract. The Sovereign Term Facility bears interest at the lower of LIBOR plus 2.5% or Sovereign Bank's prime rate (2.77% as of December 31, 2011) and is secured by all of our assets.

The terms and conditions of the Sovereign Revolving Facility are applicable to the Sovereign Term Facility.

Additionally, the Company and Sovereign Bank entered into a five year interest rate swap agreement, in the notional amount of $3 million. Under the interest rate swap, the Company pays an amount to Sovereign Bank representing interest on the notional amount at a rate of 5.8% and receives an amount from Sovereign representing interest on the notional amount at a rate equal to the one-month LIBOR plus 2.5%. The effect of this interest rate swap will be the Company paying a fixed interest rate of 5.8% over the term of the Sovereign Term Facility. The value of debt exchanged for a fixed rate of interest reduces according to the repayment schedule of the notes.

The maturities of the long-term debt are as follows:

Year ending December 31,


2012	$887,380
2013	721,246
2014	88,389
2015	46,476
2016	33,128
	$1,776,619

Also included in long-term debt are capital leases and notes payable of $626,620 at December 31, 2011, including a current portion of $287,380. The company is committed to make payments under capital leases of approximately $312,000, $186,000, $95,000, $50,000 and $34,000 in each of the years ending December 31, 2012, 2013, 2014, 2015 and 2016, respectively. Included in these payments is approximately $50,000 of interest expense.