DEBT

At December 31, 2011 and 2010, a $30 million line of credit, which expires on June 30, 2014, was available to the Company to borrow. During early 2011, an amendment to the prior credit agreement was finalized whereby the amount available to borrow was increased from $20 million to $30 million. Amounts outstanding under this line of credit are collateralized with a first priority security interest in 100% of the issued and outstanding shares of the capital stock of the Company's material domestic subsidiaries and 65% of all the issued and outstanding shares of the capital stock of certain of the foreign subsidiaries of the Company. There have not been any borrowings under the credit agreement during 2011 or 2010 and, as a result, there was no balance outstanding as of December 31, 2011 or 2010. At those dates, the entire $30 million line of credit was available to the Company to borrow. The credit agreement bears interest at LIBOR plus 0.75% to 1.25% based on certain financial statement ratios maintained by the Company. Under the terms of the credit agreement, the Company is required to maintain certain financial ratios and comply with other financial conditions. At December 31, 2011, the Company was in compliance with its debt covenants.