Financial Arrangements

6 Months Ended

Jun. 30, 2011

Financial Arrangements

Financial Arrangements

Note 7. Financial Arrangements

Bank Credit Facility

On April 25, 2011, the Company amended its existing revolving credit facility with a bank. The amended agreement provides for borrowings up to $30 million based primarily on accounts receivable. The facility has certain financial covenants requiring us to maintain minimum levels of operating results and liquidity. The agreement will terminate on April 10, 2015. The Company uses the facility to support letters of credit and hedging transactions.

At June 30, 2011, the Company’s borrowing capacity under the amended credit facility was $28.4 million and the Company was compliant with all covenants of the loan agreement.