7.	Long-term Debt

Long-term debt consisted of the following at March 31, 2013 and December 31, 2012:


*In thousands*	March 31, 2013			December 31, 2012
Bank term loan	$	10,675		$	11,200
Less current portion		(2,625	)		(2,100	)

	$	8,050		$	9,100

The bank term loan provides for quarterly payments of principal and interest with final scheduled maturity on December 31, 2015. The loan bears interest at LIBOR plus 1.25 to 2.25 percent, depending on the percentage of the Company’s liquid assets on deposit with or invested through the bank, or at the prime rate. The effective interest rate on the loan was 1.45 percent at March 31, 2013. The loan is secured by a lien on all assets of the Company excluding intellectual property, which the Company has agreed not to pledge to any other party. The loan requires the Company to maintain a minimum of $15.0 million in unrestricted cash, cash equivalents and investments. The loan also contains certain covenants that restrict additional indebtedness, additional liens and sales of assets, and dividends, distributions or repurchases of common stock.

The future scheduled principal payments due under the term loan were as follows at March 31, 2013:


*In thousands*
Period ended December 31:
2013	$	1,575
2014		4,200
2015		4,900

		10,675
Less current portion		(2,625	)

Long-term portion	$	8,050