Capital Lease and Other Obligations

12 Months Ended

Dec. 31, 2011

Capital Lease and Other Obligations [Abstract]

8.	Capital Lease and Other Obligations

Capital lease and other obligations consist of the following at December 31, 2011 and 2010 (in thousands):

	December 31,
	2011			2010
Capital lease obligations	$	657		$	1,784
Deferred rent		154			166
Total capital lease and other obligations		811			1,950
Less: current portion of capital lease obligations		(515	)		(1,048	)
Capital lease and other obligations, net of current portion	$	296		$	902

Capital Lease Obligations

City National Bank

On April 6, 2007, the Company entered into a master equipment lease agreement with CNB for an original amount of up to $5.0 million for the purchase of computer equipment. The lease expired on April 30, 2010, at which time the Company had drawn down approximately $4.9 million of the available lease line of credit. Interest on the capital leases was calculated using interest rates ranging from 4.32% to 7.95% per annum. Effective as of September 30, 2009, the master equipment lease agreement was amended to modify two financial covenants, with which the Company was in compliance as of December 31, 2011.

The agreements with CNB, consisting of an outstanding standby letter of credit (“SBLC”) and a master equipment lease agreement, contain cross-default provisions, whereby a default under one is deemed a default for the other, and are secured by a general lien on all assets of the Company. As of December 31, 2011 and 2010, the Company was not in default on either agreement with CNB. For further discussion see Note 10, Commitments and Contingencies.