7.	Long-term Debt

Long-term debt was comprised of the following at March 31, 2014 and December 31, 2013:


*In thousands*	March 31, 2014			December 31, 2013
Bank term loan	$	8,050		$	9,100
Less current portion		(4,375	)		(4,200	)

	$	3,675		$	4,900

The 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 1.40 percent at March 31, 2014. 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, 2014:


*In thousands*
Period ended December 31:
2014	$	3,150
2015		4,900

		8,050
Less current portion		(4,375	)

Long-term portion	$	3,675