DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2011

DEBT OBLIGATIONS

DEBT OBLIGATIONS

4. DEBT OBLIGATIONS

        Debt obligations consisted of the following (in thousands):

	December 31, 2011		December 31, 2010
Current borrowings (at variable rates)
Credit Agreement, revolving line-of-credit	$	—	$	795
China Credit Facility, 6.4% at December 31, 2011	$	157	$	—
Total Debt	$	157	$	795

        The Company's amended Credit Agreement, which matures October 26, 2013, provides revolving credit up to $4 million and €3 million.

        The amended Credit Agreement contains certain financial covenants related to maximum leverage, minimum fixed charge coverage and minimum tangible net worth of the Company. The Company was in compliance with all covenants at December 31, 2011.

        No principal payments are required on the revolving credit facility prior to maturity. The interest rates on the agreement are variable rates based on one or more interest rate indices, primarily LIBOR plus 1.5%. All borrowings are secured by substantially all the assets of the Company.

        At December 31, 2011, approximately $8,400,000 ($4 million and € 3.0 million) was available under the amended Credit Agreement and approximately $700,000 (€ 300,000 and 2,100,000 Swedish Krona ("SEK")) was available under bank overdraft facilities in Europe.

        Effective July 1, 2011, the Company obtained a Credit Line Facility in China providing credit of approximately $700,000 (Chinese Renminbi ("RMB") 4,500,000). This facility will be used for working capital needs at the Company's China operations, and will mature in October 2012. At December 31, 2011, there was approximately $550,000 (RMB 3,500,000) available under the facility.