8. Notes Payable and Long-Term Debt:

Notes payable and long-term debt consisted of the following (in thousands):


	AS OF SEPTEMBER 30,
	2011		2010
Mortgage note payable, original mortgage was refinanced in March 2008 and is due in monthly installments of $37 with interest at LIBOR plus 150 basis points through February 2028, with remaining principal and interest due March 2028, collateralized by certain land and building having a net book value of $12.9 million		—		7,700
Less current portion		—		(440	)

	$	—	$	7,260

On December 15, 2010 the Company paid off a long-term mortgage note with a principal balance outstanding of $7.7 million. The Company was not required to pay any additional fees as a result of the early extinguishment of the mortgage note.

On March 2, 2011, the Company entered into a new credit agreement (as amended, the "New Credit Agreement") with a bank. Under the New Credit Agreement, the Company can borrow up to $25.0 million principally secured by its accounts receivable, inventories and equipment. In addition, certain domestic subsidiaries of the Company have guaranteed the obligations of the Company under the New Credit Agreement and such subsidiaries have secured the obligations by the pledge of certain of the assets of such subsidiaries. The New Credit Agreement expires on March 2, 2014. The New Credit Agreement limits the incurrence of additional indebtedness, requires the maintenance of certain financial ratios, restricts the Company and its subsidiaries' ability to pay dividends and contains other covenants customary in agreements of this type. The interest rate for borrowings under the New Credit Agreement is a LIBOR based rate with a margin spread of 250-350 basis points depending upon the maintenance of certain ratios. At September 30, 2011, the Company was in compliance with all covenants. At September 30, 2011, there were no borrowings outstanding under the New Credit Agreement, standby letters of credit outstanding in the amount of $0.2 million and additional borrowings available were $24.8 million.

Prior to entering into the New Credit Agreement, several of the Company's subsidiaries were a party to a credit agreement (the "Previous Credit Agreement") with a bank, and could borrow up to $25.0 million secured principally by the subsidiaries' accounts receivable and inventories. The Previous Credit Agreement, as amended, was scheduled to expire on April 30, 2011; however, this agreement was terminated on March 2, 2011 and replaced by the New Credit Agreement. Borrowings under the Previous Credit Agreement were subject to borrowing base restrictions based on levels of eligible accounts receivable and inventories. The Previous Credit Agreement limited the incurrence of additional indebtedness, required the maintenance of certain financial amounts, restricted the Company's and the borrower subsidiaries' ability to pay dividends and contained other covenants customary in agreements of this type.