NOTE 5 – LONG-TERM LIABILITIES

Long-term debt at May 30, 2014 and May 31, 2013 consists of the following:

In March 2009, the Company established a construction line of credit with interest-only payments due through the end of the construction period at a fixed rate of 4.25%. In September 2009, the loan converted to a 10-year, 4.25% fixed rate equipment note, payable in equal monthly installments based on the final amount drawn during the construction period which was $4,000,000. In March 2011, the loan was modified by taking the remaining balance of $3,532,700 and adding another $2,900,000 to finance the implementation of a new Enterprise Resource Planning system. At that time, the interest rate on the loan was adjusted to 3.52% and the terms were re-established at 15 years for the new amount of the loan.

	2014			2013
Total equipment note payable	$	5,314,212		$	5,671,240
Less: current portion		(369,979	)		(357,027	)
Total non current portion	$	4,944,233		$	5,314,213

In January 2010, the Company transferred an existing operating lease from one provider to another. Included in the new lease agreement were 5 transport vehicles that were added as a capital lease. The capital portion of the lease is for a term of 4 years at an annual interest rate of 3.69%.

	2014			2013
Total capital lease	$	-		$	35,823
Less: current portion		-			(35,823	)
Total non current portion	$	-		$	-


		2014			2013
Total note payable and capital lease	$	5,314,212		$	5,707,063
Less: current portion		(369,979	)		(392,850	)
Total non current portion	$	4,944,233		$	5,314,213

Other long-term obligations at May 30, 2014 and May 31, 2013 consist of the following:

	2014			2013
Salary continuation plan	$	1,133,154		$	1,229,459
Less: current portion		(212,970	)		(196,649	)
Total non current portion	$	920,184		$	1,032,810

The Company is accruing the present values of the estimated future retirement payments over the period from the date of the agreements to the retirement dates, for certain key executives. The Company recognized compensation expense of $143,695 and $131,804 for fiscal 2014 and 2013, respectively.