Notes to Consolidated Financial Statements
for the Three Years in the Period Ended June 30, 1999

10. OTHER BORROWINGS

On October 8, 1998, the Company entered into a revolving note with LaSalle Bank N.A. whereby the Company may borrow up to $7 million. The note accrues interest at a variable rate based on the ninety-day LIBOR index, on the date of the draw, plus 150 basis points. Interest payments are due ninety days after the date of any principal draws made on the loan and every ninety days thereafter. The principal balance is due in full as of October 1, 1999. As of June 30, 1999, the Company had a $1 million balance, consisting of two $500,000 draws accruing interest as of June 30, 1999, at 6.50% and 6.53%, respectively. The Company used the funds attained to buy back shares of the Company's common stock. The note is collateralized by the assets of the Company. Under terms of the agreement, the Company is bound by certain restrictive debt covenants relating to earnings, net worth and various financial ratios.

Other Borrowings

In addition to the other borrowings scheduled below, the Bank also has a $5 million overdraft line of credit with the Federal Home Loan Bank, none of which was used as of June 30, 1999 or 1998. (in thousands)