The Company has a $35,000 revolving line of credit with a commercial bank, collateralized by U.S. assets, with an interest rate of Libor plus 1.5% (1.69% at July 2, 2011), that comes due August 1, 2011. The Company did not have any debt outstanding for the periods ending July 2, 2011 and January 1, 2011.

The revolving line of credit is subject to debt covenants (capitalized terms are defined therein) including: 1) Debt to Tangible Net Worth ratio of not more than 1.5:1.0, 2) Funded Debt to EBITDA ratio of not more than 2.5:1.0, and 3) EBIT to Interest Expense ratio of not less than 1.1:1.0; and requires the Company to maintain its primary domestic deposit accounts with the bank. As of July 2, 2011, the Company was in compliance with all debt covenants.

The Company refinanced its debt effective August 1, 2011. See footnote 14. Subsequent Events.