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      &lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"&gt;&lt;b&gt;NOTE

      4 &amp;#8211; DEBT&lt;/b&gt;&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p id="PARA901" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"&gt;

      &lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"&gt;At

      May 26, 2013 the Company&amp;#8217;s term loan credit agreement

      requires the maintenance of a consolidated debt service

      coverage ratio of (&amp;#8220;DSCR&amp;#8221;) 1.80 to 1 or greater

      regarding all of the Company&amp;#8217;s debt. Debt service

      coverage ratios are calculated by dividing the cash flow

      before taxes and debt service (&amp;#8220;EBITDA&amp;#8221;) for the

      previous 12 months by the debt service payable for the same

      period. The Company&amp;#8217;s term loan also requires a

      consolidated debt to EBITDA (&amp;#8220;Leverage&amp;#8221;) ratio of

      2.50 or less, minimum EBITDA of $3.0 million, maximum of $4.0

      million in annual capital expenditures and minimum

      unencumbered cash of $1.5 million. The ratios are computed

      quarterly. At the end of the first quarter of fiscal 2014,

      the Company had a DSCR of 4.16 and a Leverage ratio of 1.4,

      being in compliance with all of the required ratios.&lt;/font&gt;

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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 505

 -SubTopic 10

 -Section 50

 -Paragraph 3

 -URI http://asc.fasb.org/extlink&amp;oid=6928386&amp;loc=d3e21475-112644



Reference 2: http://www.xbrl.org/2003/role/presentationRef

 -Publisher SEC

 -Name Regulation S-X (SX)

 -Number 210

 -Section 02

 -Paragraph 19, 20, 22

 -Article 5



Reference 3: http://www.xbrl.org/2003/role/presentationRef

 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 210

 -SubTopic 10

 -Section S99

 -Paragraph 1

 -Subparagraph (SX 210.5-02.19,20,22)

 -URI http://asc.fasb.org/extlink&amp;oid=6877327&amp;loc=d3e13212-122682



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