Note 7 – Long-term debt:

On July 6, 2011, under the Equipment Finance Addendum to the Credit Agreement, REFCO provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%. Principal and interest on the term loan are payable in equal monthly installments through July 6, 2017, the date the term loan matures. The proceeds of the term loan were used to pay Kinpak’s remaining obligations under a lease agreement relating to industrial revenue bonds used to fund the expansion of Kinpak’s facilities and acquisition of related equipment. At December 31, 2014 approximately $1,110,000 was outstanding under the term loan.

At December 31, 2014 and 2013, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations. The capital leases aggregating $8,081 and $19,532 at December 31, 2014 and December 31, 2013, respectively have varying maturities through 2015 and carry interest rates ranging from 7% to 14%.

The following table provides information regarding the Company’s long-term debt at December 31, 2014 and 2013:

	Current Portion				Long-term Portion
	2014		2013		2014		2013

Term loan	$	417,577	$	403,074	$	692,104	$	1,109,680
Capitalized equipment leases		8,081		11,451		--		8,081

Total long-term debt	$	425,658	$	414,525	$	692,104	$	1,117,761

Required principal payments under these obligations are set forth below:

Year ending December 31,
	2015	$	425,658
	2016		432,601
	2017		259,503
	Total	$	1,117,762