Line of Credit

In December 2007, the Company established an unsecured $25 million revolving line of credit with a bank. This facility is renewable annually. The credit facility remained unused throughout 2011 and 2012. Borrowings under this facility would bear interest at LIBOR (0.843% at December 31, 2012) plus 200 basis points and the Company is charged three-eighths of a percent (0.375%) per year on the unused portion. At December 31, 2012 and 2011, the Company was in compliance with the terms and covenants of the credit facility.

In February 2013, the Company amended its credit facility to increase the availability to $40 million and extend the expiration date from June 15, 2013 to June 15, 2014.