Item 2.03 Creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a registrant.
Effective June 6, 2011, the Company amended and extended its existing credit facilities with JPMorgan Chase Bank, N.A., NBT Bank, N.A. and Alliance Bank, N.A. As amended and extended, the credit facility provides for a $20,000,000 formula based revolving credit facility maturing June 6, 2014 and an outstanding $2,175,000 term loan maturing on August 1, 2012. A component of the revolving credit facility is the availability of standby letters of credit from JPMorgan in the aggregate amount of $5,000,000. The Company has the right to increase the revolving facility up to two times by a minimum of $5,000,000 each time by obtaining an increased commitment from any Lender or a commitment from another lending institution acceptable to JPMorgan Chase with consent from the other lenders being required if the increase is more than $10,000,000. The facility continues to be secured by certain assets of the Company and continues to provide for customary covenants including, without limitation, covenants regarding leverage ratio, fixed charge coverage ratio and net worth and provides for acceleration upon the occurrence of customary events of default, including, without limitation, bankruptcy and failure to pay installments of principal or interest.
10.1 Amended and Restated Credit Agreement
10.2 Amendment No. 1 To Pledge and Security Agreement